Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 93

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 93
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 BVI, dividends and capital gains arising from the Company’s investments in the BVI are not subject to income or capital gains
taxes and no withholding tax is imposed on payments of dividends to the Company.

The Company’s subsidiaries
in Hong Kong are subject to the Hong Kong Profits Tax rate of 16.5%, while foreign-derived income is exempted from income tax. There is
no withholding tax in Hong Kong on the remittance of dividends.

The Company’s subsidiaries
in the PRC are subject to a PRC enterprise income tax rate of 25% applicable to both foreign invested enterprises and domestic companies.
Shanghai Onway was subject to a tax rate of 25% for the year ended December 31, 2021 and thereafter. Shaoguan Angrui was fully exempted
from income tax according to the PRC corporate income tax laws and related regulations for the years ended December 31, 2021. Shaoguan
Angrui enjoyed a preferential tax rate of 12.5% for the year ended December 31, 2022 and 2023.

Discontinued Operations

Revenue

Revenue from our discontinued
operations primarily consists of revenue from construction contracts, operation and maintenance services, operation services and construction
services for the Wujiang Project, which we refer to as the “service concession arrangement.”

Cost of Sales

Cost of sales of our discontinued
operations primarily consists of costs relating to the construction of water treatment facilities, such as raw materials, spare parts,
consumables, and outsourced costs charged by subcontracting.

Selling and Distribution Expenses

Selling and distribution expenses
primarily consist of business development expenses, payroll, travel expenses and related expenses for employees involved in selling and
distribution activities.

Profit/(loss) for the year from discontinued operations, net of tax

Profit/(loss) for the year
from discontinued operations, net of tax represents operating results from PST Technology and its subsidiaries until its disposition
on July 28, 2023.

Critical Accounting Estimates

Not applicable.

| 56 |

Results of Operation– Continuing Operations

The following table sets forth
a summary of our consolidated results of operations for the periods indicated. This information should be read together with our consolidated
financial statements and related notes included elsewhere in this prospectus. The following period-to-period comparison of operating results
should not be relied upon as being indicative of our future performance.

|                                                                            |     |                 Year Ended December 
                                 31, |         |   |     |