Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 38

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 38
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 any capital reduction, share transfer or liquidation to us, and we may also be prohibited
from making additional capital contributions to our PRC subsidiaries.

In February 2015, SAFE promulgated
a Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment (“SAFE Notice 13”),
effective June 2015. Under SAFE Notice 13, applications for foreign exchange registration of inbound foreign direct investments and outbound
overseas direct investments, including those required under SAFE Circular 37, shall be filed with qualified banks instead of SAFE. The
qualified banks directly examine the applications and accept registrations under the supervision of SAFE. To date, no registration has
been filed with SAFE regarding us, and accordingly, SAFE may prohibit distributions from our PRC subsidiaries, which would prevent us
from paying dividends, and may adversely affect our financial condition and potentially expose us to liability under PRC law.

The PCAOB may determine that it is unable to inspect our auditor in relation to its audit work performed for our financial statements to its satisfaction, and any inability of the PCAOB to conduct inspections over our auditor may affect our investors’ ability to benefit from such inspections.

Our auditor, the independent registered
public accounting firm that issues the audit report included in this registration statement, as an auditor of companies that are traded
publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which the PCAOB
conducts regular inspections to assess its compliance with applicable professional standards. Since our auditor is located in China,
a jurisdiction where the PCAOB had been previously unable to conduct inspections without the approval of the Chinese authorities, our
auditor was subject to the determinations announced by the PCAOB on December 16, 2021 that it was unable to inspect or investigate completely
PCAOB-registered public accounting firms headquartered in mainland China and in Hong Kong. On December 15, 2022, the PCAOB issued a report
vacating the previous determinations dated December 16, 2021. Accordingly, until such time as the PCAOB issues any new determination,
we are not at risk of having our securities subject to a trading prohibition under the HFCAA because we do not expect to be a Commission-Identified
Issuer for a second consecutive year. If in the future the PCAOB determines it no longer can inspect or investigate completely because
of a position taken by an authority in the PRC, the PCAOB will consider issuing a new determination