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

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 25
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 to fund a certain statutory reserve fund, until the aggregate amount of such fund reaches 50% of
its registered capital. Where the statutory reserve fund is insufficient to cover any loss the PRC subsidiary incurred in the previous
financial year, its current financial year’s accumulated after-tax profits shall first be used to cover the loss before any statutory
reserve fund is drawn therefrom. Such statutory reserve funds and the accumulated after-tax profits that are used for covering the loss
cannot be distributed to us as dividends. At their discretion, our PRC subsidiaries may allocate a portion of their after-tax profits
based on Chinese accounting standards to a discretionary reserve fund. See “Risk Factors - Risks Relating to Our PRC Operations
and Doing Business in the PRC - Our PRC subsidiaries are subject to restrictions on paying dividends and making other payments to us.”

Renminbi
is not freely convertible into other currencies. Shortages in availability of foreign currency may then restrict the ability of our PRC
subsidiaries to remit sufficient foreign currency to our offshore entities for our offshore entities to pay dividends or make other payments
or otherwise to satisfy our foreign-currency-denominated obligations. The Renminbi is currently convertible under the “current account,”
which includes dividends, trade and service-related foreign exchange transactions, but not under the “capital account,” which
includes foreign direct investment and foreign currency debt, including loans we may secure for our onshore subsidiaries. Currently, our
PRC subsidiaries may purchase foreign currency for settlement of “current account transactions,” including payment of dividends
to us, without the approval of SAFE by complying with certain procedural requirements. Foreign exchange transactions under the capital
account remain subject to limitations and require approvals from, or registration with, SAFE and other relevant Chinese governmental authorities.
This could affect our ability to obtain foreign currency through debt or equity financing for our subsidiaries. See “Risk Factors
- Risks Relating to Our PRC Operations and Doing Business in the PRC - Our PRC subsidiaries are subject to restrictions on paying dividends
and making other payments to us” for a detailed discussion of the Chinese legal restrictions on the payment of dividends and our
ability to transfer cash within our group. In addition, holders of our Common Shares may potentially be subject to Chinese taxes on dividends
paid by us in the event we are deemed a Chinese resident enterprise for Chinese tax purposes. See “Risk Factors - Risks Relating
to Our PRC Operations and Doing Business in the PRC - We may be classified as a