Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 252

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 252
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 12, 13 and 15 to the financial statements.

Cash and cash equivalents

The
Group maintains its cash and cash equivalents primarily with various PRC state-owned banks and Hong Kong based financial institutions,
which management believes are of high credit quality. The Group performs periodic evaluations of the relative credit standing of those
financial institutions.

| F-65 |

| 22. |     | FINANCIAL RISK                                 
 MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |

| (b) |     | Foreign currency 
 risk             |

Foreign
currency risk primarily arises from certain significant foreign currency deposits denominated in US$ and HK$ and related exposures are
disclosed in Note 16. The Group treasury closely monitors the change of exchange rates on the international foreign currency market and
takes these into consideration when investing in foreign currency deposits and borrowing loans.

The
CNY is not freely convertible into foreign currencies. The State Administration for Foreign Exchange, under the authority of the People's
Bank of China, controls the conversion of the CNY into foreign currencies. The value of the CNY is subject to changes in PRC government
policies and to international economic and political developments affecting the supply and demand in the China Foreign Exchange Trading
System market. All foreign exchange transactions continue to take place either through the People's Bank of China or other banks authorized
to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China.

There
is no significant exposure to foreign currency risk as of December 31, 2023 and 2022 for the Company.

| (c) |     | Interest rate risk |

The
fair value interest rate risk of the Group mainly arises from long-term loans at fixed rates (see Note 20). As fluctuation of the comparable
interest rate (Loan Prime Rate of PRC market) with similar terms was relatively low, the Directors are of the opinion that the Group
is not exposed to any significant fair value interest rate risk for its fixed interest rate borrowings held as of December 31, 2022 and
2023.

| (d) |     | Business and economic risk |

The
Group's operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC
government has been pursuing economic reform policies for more than 40 years, no assurance can be given that the PRC government will
continue to pursue such policies or that such policies may not be significantly altered, especially in the event