Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 218

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 218
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 over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount
of consideration that the Group could be required to repay.

| (k) | Impairment of financial assets |

The Group recognizes an allowance for expected
credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference
between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted
at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral
held or other credit enhancements that are integral to the contractual terms.

| F-22 |

| 2.5 |     | MATERIAL ACCOUNTING  
 POLICIES (CONTINUED) |

| (k) | Impairment of financial assets (continued) |

General approach

ECLs are recognized in two stages. For
credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit
losses that result from default events that are possible within the next 12 months (a 12-month ECL). For those credit exposures for which
there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

At each reporting date, the Group assesses
whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the
Group compares the risk of a default occurring on the financial instrument as of the reporting date with the risk of a default occurring
on the financial instrument as of the date of initial recognition and considers reasonable and supportable information that is available
without undue cost or effort, including historical and forward-looking information.

The Group considers a financial asset in
default based on historical patterns and the credit risk management practices of the Group. However, in certain cases, the Group may also
consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the
outstanding contractual amounts in full before taking into account any credit enhancements held by the Group.

A financial asset is written off when there
is no reasonable expectation of recovering the contractual cash flows.

Financial assets at amortized cost excluding
trade receivables and contract assets are subject to impairment under the general approach,