Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 67

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 67
---
 in China may not be as effective as those in the United States
or other developed countries. Furthermore, we may need to resort to litigation to enforce or defend our patents. Such litigation and its
results could cause substantial costs and diversion of resources and management attention, which could harm our business and growth.

| 13 |

PRC regulations establish complex
procedures for some acquisitions conducted by foreign investors, which could make it more difficult for us to pursue growth through acquisitions
in China.

The Regulations on Mergers
and Acquisitions of Domestic Enterprises by Foreign Investors (the “M&A Rules”), adopted by six PRC regulatory agencies
in August 2006 and amended in June 2009, among other things, established additional procedures and requirements that could make merger
and acquisition activities by foreign investors more time-consuming and complex. In addition, the Provisions of Ministry of Commerce on
Implementation of Security Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, issued by the Ministry
of Commerce in August 2011, specify that mergers and acquisitions by foreign investors involved in “an industry related to national
security” are subject to strict review by the Ministry of Commerce, and prohibit any activities attempting to bypass such security
review, including by structuring the transaction through a proxy or contractual control arrangement.

On March 15, 2019, the PRC
National People’s Congress enacted the Foreign Investment Law of the PRC (the “Foreign Investment Law”), which became
effective on January 1, 2020. The Foreign Investment Law has replaced the previous major laws and regulations governing foreign investment
in the PRC, including the Sino-foreign Equity Joint Ventures Enterprises Law of the PRC, the Sino-foreign Co-operative Enterprises Law
of the PRC and the Wholly Foreign-invested Enterprise Law of the PRC. According to the Foreign Investment Law, “foreign-invested
enterprises” refers to enterprises that are wholly or partly invested by foreign investors and registered under the PRC laws within
China, and “foreign investment” refers to any foreign investor’s direct or indirect investment activities in China,
including: (i) establishing foreign-invested enterprises in China either individually or jointly with other investors; (ii) obtaining
stock shares, equity shares, shares in properties or other similar interests of Chinese domestic enterprises; (iii) investing in new projects
in China either individually or jointly with other investors; and (iv) investing through other methods provided by laws