Company: CHNR
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001079973-25-000827
Chunk: 104

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 104
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 the discontinued operations due to our disposal of PST Technology in July 2023.
 
Finance Income. Finance income from discontinued operations decreased by CNY6.80 million from CNY15.59 million for the year ended December 31, 2022 to CNY8.79 million for the period ended July 28, 2023. The decrease in finance income was mainly due to the decrease of interest income from the service concession arrangement relating to a financing component, which arose due to a guaranteed 28-year-long collection period for construction services for the Wujiang Project and the shorter operating period of the discontinued operations due to our disposal of PST Technology in July 2023.
Income Tax Expense. Income tax expense from discontinued operations decreased by CNY3.93 million from CNY5.86 million for the year ended December 31, 2022 to CNY1.93 million for the period ended July 28, 2023. The decrease was mainly caused by lower revenue in 2023.

(Loss)/Profit. As a result of the foregoing, profit for discontinued operations decreased by CNY5.15 million, from CNY1.04 million of profit for the year ended December 31, 2022 to CNY4.11 million of loss for the period ended July 28, 2023.

Impact of Government Policies on the Company’s Operations 
 In 2024, the government maintained a series of targeted expansionary fiscal and monetary policies, along with supportive industrial policies, to bolster economic stability. In particular, a package of incremental policies was adopted in September 2024, which greatly boosted social confidence and speeded up recovery. Macroeconomic policies will largely impact on economic cycles, growth rates, inflation and interest rates, and eventually result in changes in supply and demand dynamics and price fluctuations in the markets we intend to serve. Industrial policies will more directly impact specific industries and to some extent determine market access, market potential, intensity of competition and profitability.
 
Our metals exploration activities are subject to government regulations in various aspects, including but not limited to laws, rules and regulations relating to exploration activities; environmental protection; the use and preservation of dangerous substances; employment practices; as well as land use laws and a variety of local business laws and rules. Our failure to comply with applicable government regulations could adversely affect our operations and subject us to fines and other penalties including suspension or termination of our business permits. For further details of the impact of governmental policies on our metals exploration activities, please refer to “Item