Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 58

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 58
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 adverse effect on our business and operations.

All of our business operations
are conducted in China. Accordingly, our business, results of operations, financial condition and prospects are affected by economic,
political and social conditions in China generally and by continued economic growth in China as a whole.

China’s economy differs
from the economies of most developed countries in many respects, including the extent of government involvement, level of development,
growth rate, control of foreign exchange and allocation of resources. In recent decades, the Chinese government has implemented a series
of reform measures, including, among others, the utilization of market forces for economic reform and the establishment of improved corporate
governance in business enterprises. However, a considerable portion of productive assets in China is still owned by the government. In
addition, the Chinese government also plays a significant role in regulating industry development and has extensive influence over China’s
economic growth through allocating resources, foreign exchange control and setting monetary and fiscal policy.

The growth of China’s
economy has been uneven, both geographically and among various sectors of the economy, and the growth of the Chinese economy has slowed
down in recent years for various reasons, including due to the impacts of the COVID-19 pandemic. Some of the government measures may benefit
the overall Chinese economy but may have a negative effect on us. For example, our financial condition and results of operations may be
adversely affected by government control over capital investments or changes in tax regulations. Any stimulus measures designed to boost
the Chinese economy may contribute to higher inflation, which could adversely affect our results of operations and financial condition.
For example, certain operating costs and expenses, such as employee compensation and office operating expenses, may increase as a result
of higher inflation.

Uncertainties
with respect to the PRC legal system could adversely affect us.

We conduct our business through
our subsidiaries in China. Our operations in China are governed by PRC laws and regulations. Our subsidiaries are generally subject to
laws and regulations applicable to foreign investments in China. The PRC legal system is based on written statutes. Prior court decisions
may be cited for reference but have limited precedential value.

PRC laws and regulations have
significantly enhanced the protections afforded to various forms of foreign investments in China over the past several decades. However,
China has not developed a fully integrated legal system and recently enacted laws and regulations may not sufficiently cover all aspects
of economic activities in China. In particular, because these laws and regulations are relatively new, and because of the