Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 6

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 6
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 company operating its business in exploration and mining,
which are not included in the 2021 Negative List, the Company believes its business is not subject to any ownership restrictions. However,
since the Negative List has been adjusted and updated almost on an annual basis in the recent years, we cannot assure you that the aforementioned
business segments will continuously be beyond the “prohibited” category, which would likely result in a material change in
our operations or in the value of our securities. The PRC government has established a foreign investment information reporting system,
according to which foreign investors or foreign-invested enterprises shall submit investment information to the competent department
for commerce concerned through the enterprise registration system and the enterprise credit information publicity system, and a security
review system under which the security review shall be conducted for foreign investment affecting or likely affecting the state security.

The Company may encounter
several limitations related to cash transfer among its PRC Subsidiaries, the holding company and its investors. Any funds we transfer
to the PRC Subsidiaries, either as a shareholder loan or as an increase in registered capital, are subject to permission and approval
by or registration with relevant governmental authorities in China. According to the relevant PRC regulations on foreign invested enterprises
in China, capital contributions to our PRC Subsidiaries are subject to the registration with the State Administration for Market Regulation
or its local counterpart and registration with a local bank authorized by SAFE. In addition, (i) any foreign loan procured by our PRC
Subsidiaries is required to be registered with the SAFE or its local branches and (ii) any of our PRC Subsidiaries may not procure loans
which exceed the difference between its total investment amount and registered capital or, as an alternative, only procure loans subject
to the calculation approach and limitation as provided by the People’s Bank of China. As a holding company with no operations,
our ability to distribute dividends largely depends on the distribution from our PRC Subsidiaries. In addition, if the Company is determined
to be a PRC resident enterprise for enterprise income tax purposes, we could be subject to PRC tax at a rate of 25% on our worldwide
income, which could materially reduce our net income, and we may be required to withhold a 10% withholding tax from dividends we pay
to our shareholders that are non-resident enterprises, including the holders of our Common Shares, and non-resident enterprise shareholders
(including our Common Shareholders) may