Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 232

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 232
---
 estimation is required in assessing the available information which includes past collection history, age of balances, customer type and forecasts of future economic conditions to estimate the ECLs. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Group’s historical credit loss experience and forecast of economic conditions may also not be representative of a customers’ actual default in the future. The information about the ECLs on the Group’s contract assets and financial assets at amortized cost is disclosed in Notes 12, 13 and 15.

| F-33 |

| 3. |     | DISCONTINUED OPERATIONS |

On
July 28, 2023, the Company’s board of directors had approved the Sale and Purchase Agreement (“SPA") with Feishang Group.
Pursuant to the SPA, the Company agreed to sell 100% equity interest of Precise Space-Time Technology Limited ("PSTT") to Feishang
Group, together with PSTT's outstanding payable owed to the Company, for consideration of approximately CNY95,761 comprising: (i) CNY-34,197,
the fair value of 100% equity interest of PSTT as determined by the independent valuation report dated July 28, 2023. (ii) CNY129,958,
the book value of PSTT's outstanding payable owed to the Company (referred as Disposal of PSTT). PSTT operated the wastewater treatment
segment. After the disposal, the Company will not operate any wastewater treatment business and will continue operating its exploration
and mining business.

The
disposal of PST Technology was accounted for as an equity transaction of entities under common control. The consideration received by
the Company for the disposal has been accounted for as a deemed contribution from the controlling shareholder in the consolidated statement
of changes in equity. The assets and liabilities of the wastewater treatment transferred to Mr. Li Feilie were accounted for as a deemed
distribution to the controlling shareholder on the closing date of the transaction.

The results of PSTT for the years/period
are presented below.

| Schedule of                                                        
 disposal pstt                                                      |     |     |    2021 |   |     |     |    2022 |   |     |     |                                              For 
 the period from January 1, 2023 to July 28, 2023 |   |
|:-------------------------------------------------------------------|:----|:----|--------:|:--|:----|:----|--------: