Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 3

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 3
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 As a company operating its business in exploration and mining, which are not included in the 2021 Negative List, the
Company believes its business is not subject to any ownership restrictions. However, since the Negative List has been adjusted and updated
almost on an annual basis in the recent years, we cannot assure you that the aforementioned business segments will continuously be beyond
the “prohibited” category, which would likely result in a material change in our operations or in the value of our securities.
The PRC government has established a foreign investment information reporting system, according to which foreign investors or foreign-invested
enterprises shall submit investment information to the competent department for commerce concerned through the enterprise registration
system and the enterprise credit information publicity system, and a security review system under which the security review shall be conducted
for foreign investment affecting or likely affecting the state security.

The Company may encounter several limitations related
to cash transfer among its PRC Subsidiaries, the holding company and its investors. Any funds we transfer to the PRC Subsidiaries, either
as a shareholder loan or as an increase in registered capital, are subject to permission and approval by or registration with relevant
governmental authorities in China. According to the relevant PRC regulations on foreign invested enterprises in China, capital contributions
to our PRC Subsidiaries are subject to the registration with the State Administration for Market Regulation or its local counterpart and
registration with a local bank authorized by SAFE. In addition, (i) any foreign loan procured by our PRC Subsidiaries is required to be
registered with the SAFE or its local branches and (ii) any of our PRC Subsidiaries may not procure loans which exceed the difference
between its total investment amount and registered capital or, as an alternative, only procure loans subject to the calculation approach
and limitation as provided by the People’s Bank of China. As a holding company with no operations, our ability to distribute dividends
largely depends on the distribution from our PRC Subsidiaries. In addition, if the Company is determined to be a PRC resident enterprise
for enterprise income tax purposes, we could be subject to PRC tax at a rate of 25% on our worldwide income, which could materially reduce
our net income, and we may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident
enterprises, including the holders of our Common Shares, and non-resident enterprise shareholders (