Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 17

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 17
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 currency, amount and frequency. According to the currently effective Company
Law of the People’s Republic of China and other Chinese laws and regulations, our PRC subsidiaries may pay dividends out of their
respective accumulated profits as determined in accordance with Chinese accounting standards and regulations. In addition, each of our
PRC subsidiaries is required to set aside at least 10% of its accumulated after-tax profits, if any, each year to fund a certain statutory
reserve fund, until the aggregate amount of such fund reaches 50% of its registered capital. Where the statutory reserve fund is insufficient
to cover any loss the PRC subsidiary incurred in the previous financial year, its current financial year’s accumulated after-tax
profits shall first be used to cover the loss before any statutory reserve fund is drawn therefrom. Such statutory reserve funds and the
accumulated after-tax profits that are used for covering the loss cannot be distributed to us as dividends. At their discretion, our PRC
subsidiaries may allocate a portion of their after-tax profits based on Chinese accounting standards to a discretionary reserve fund.
See “Risk Factors - Risks Relating to Our PRC Operations and Doing Business in the PRC - Our PRC subsidiaries are subject
to restrictions on paying dividends and making other payments to us.” on page 11 of the accompanying prospectus and page 8 of our
annual report on Form 20-F for the fiscal year ended December 31, 2024.

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Renminbi is not freely convertible into other currencies.
Shortages in availability of foreign currency may then restrict the ability of our PRC subsidiaries to remit sufficient foreign currency
to our offshore entities for our offshore entities to pay dividends or make other payments or otherwise to satisfy our foreign-currency-denominated
obligations. The Renminbi is currently convertible under the “current account,” which includes dividends, trade and service-related
foreign exchange transactions, but not under the “capital account,” which includes foreign direct investment and foreign currency
debt, including loans we may secure for our onshore subsidiaries. Currently, our PRC subsidiaries may purchase foreign currency for settlement
of “current account transactions,” including payment of dividends to us, without the approval of SAFE by complying with certain
procedural requirements. Foreign exchange transactions under the capital account remain subject to limitations and require approvals from,
or registration with, SAFE and other relevant Chinese governmental authorities. This could affect our ability to obtain foreign currency
through debt or equity financing for our subsidiaries.