Company: CHNR
Filing Date: 2025-12-31
Form Type: 6-K
Source: 0001553350-25-000219
Chunk: 15

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-12-31
Form: 6-K
Chunk 15
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 not hold or issue derivative financial liabilities for trading purposes. The Group reviews and agrees
policies for managing each of these risks and they are summarized below.

| (a) |     | Credit risk |

Management has a credit policy in place
and the exposures to credit risk are monitored on an ongoing basis. Debts are usually due within 30 to 90 days from the date of billing.

Management groups financial instruments
based on shared credit risk characteristics, such as instrument type and credit risk ratings for the purpose of determining significant
increase in credit risk and calculation of impairment. The carrying amount of each financial asset in the condensed interim consolidated
statement of financial position represents the Group’s maximum exposure to credit risk in relation to its financial assets.

A financial asset is credit-impaired
when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence
that a financial asset is credit-impaired includes observable data about the following events:

- significant financial difficulty of
the debtor

- a breach of contract such as a default
or past due event; or

- it is probable that the debtor will
enter bankruptcy or other financial reorganization.

To manage credit risk arising from trade
receivables and contract assets, the credit quality of the debtors is assessed, taking into account their historical settlement records,
past experience and other factors. The Group applies the simplified approach to provide for ECLs prescribed by IFRS 9, which permits the
use of lifetime expected loss provision for all trade receivables. The ECLs also incorporated forward-looking information.

For financial assets assessed for impairment
under the general approach, the Group established a policy to perform an assessment at the end of each reporting period of whether a financial
instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default
occurring over the remaining life of the financial instrument. The Group groups its other receivables into Stage 1, Stage 2 and Stage
3, as described below:

Stage 1 – When other receivables
are first recognized, the Group recognized an allowance based on 12 months’ ECLs.

Stage 2 – When other receivables
have shown a significant increase in credit risk since origination, the Group records an allowance for the lifetime ECLs.

Stage 3 – Other receivables are
considered credit-impaired. The Group records an allowance for the lifetime ECLs.

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