Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 24

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 24
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Under PRC laws and regulations, we are subject to some restrictions on intercompany fund transfers and foreign exchange controls. Our subsidiaries receive substantially all revenue in CNY, and the PRC or Hong Kong governments could prevent the CNY maintained in the PRC or Hong Kong from leaving, impose controls on its conversion into foreign currencies, restrict deployment of the CNY into the business of our subsidiaries and restrict the ability to pay dividends. There are no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including funds from Hong Kong to the PRC), except for the transfer of funds involving money laundering and criminal activities. However, there is no guarantee that the Hong Kong government will not promulgate new laws or regulations that may impose such restrictions in the future. To the extent cash in the business is in the PRC or Hong Kong or our PRC or Hong Kong entities, the funds may not be available to fund operations or for other use outside of the PRC or Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability of us or our subsidiaries by the PRC or Hong Kong governments to transfer cash. We cannot assure you that the PRC or Hong Kong governments will not intervene in or impose restrictions on our ability to make intercompany cash transfers.

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According
to the Foreign Investment Law of the People’s Republic of China and its implementing rules, which jointly established the legal
framework for the administration of foreign-invested companies, a foreign investor may, in accordance with other applicable laws, freely
transfer into or out of China its contributions, profits, capital earnings, income from asset disposal, intellectual property rights,
royalties acquired, compensation or indemnity legally obtained, and income from liquidation, made or derived within the territory of China
in CNY or any foreign currency, and any entity or individual shall not illegally restrict such transfer in terms of the 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