Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 41

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 41
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On December 26, 2019, the State Council
issued Implementation Regulations for the Foreign Investment Law of the PRC (the “Implementation Rules”) which came into
effect on January 1, 2020, and replaced the Implementing Rules of the Sino-foreign Equity Joint Ventures Enterprises Law of the PRC,
the Implementing Rules of the Sino-foreign Co-operative Enterprises Law of the PRC and the Implementing Rules of the Wholly Foreign-invested
Enterprise Law of the PRC. According to the Implementation Rules, in the event of any discrepancy between the Foreign Investment Law,
the Implementation Rules and the relevant provisions on foreign investment promulgated prior to January 1, 2020, the Foreign Investment
Law and the Implementation Rules shall prevail. The Implementation Rules also set forth that foreign investors that invest in sectors
on the “Negative List” in which foreign investment is restricted shall comply with special management measures with respect
to, among others, shareholding and senior management personnel qualification in the Negative List. Pursuant to the Foreign Investment
Law and the Implementation Rules, the existing foreign-invested enterprises established prior to the effective date of the Foreign Investment
Law are allowed to keep their corporate organization forms for five years from the effectiveness of the Foreign Investment Law before
such existing foreign-invested enterprises must change their organization forms and organization structures in accordance with the PRC
Company Law, the Partnership Enterprise Law of the PRC and other applicable laws.

After the Foreign Investment Law and
the Implementation Rules became effective on January 1, 2020, the provisions of the M&A Rules remained effective to the extent they
are not inconsistent with the Foreign Investment Law and the Implementation Rules. We believe that our business is not in an industry
related to national security, but we cannot preclude the possibility that the competent PRC government authorities may publish explanations
contrary to our understanding or broaden the scope of such security reviews in the future, in which case our future acquisitions and
investment in the PRC, including those by way of entering into contractual control arrangements with target entities, may be closely
scrutinized or prohibited. Moreover, according to the Anti-Monopoly Law of the PRC, the SAMR shall be notified in advance of any concentration
of undertaking if certain filing thresholds are triggered. We may grow our business in part by directly acquiring complementary businesses
in China. Complying with the requirements of the laws and regulations mentioned above and other PRC regulations necessary