Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 281

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 281
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 other receivables as of December 31, 2023 and June 30, 2024.

The Group does not provide any guarantees
that would expose the Group to credit risk. There is no further quantitative disclosures in respect of the Group’s exposure to credit
risk arising from financial assets as of December 31, 2023 and June 30, 2024.

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.

| (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 12. The Group
Treasury closely monitors the international foreign currency market on the change of exchange rates and takes these into consideration
when investing in foreign currency deposits and borrowing loans.

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 CNY into foreign currencies. The value of 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 June 30, 2024 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. As the fluctuation of comparable interest rate (Loan Prime Rate of PRC market)
with similar term 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, 2023 and June 30, 2024.

| (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