Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 203

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 203
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IFRSs”) as issued by the International Accounting
Standards Board (“IASB”). The consolidated financial statements have been prepared on a historical cost basis, except for
structured deposit, derivative financial liabilities and equity financial assets that have been measured at fair value. The consolidated
financial statements are presented in Chinese Yuan (“CNY”) and all values are rounded to the nearest thousand, except when
otherwise indicated. US$ indicates U.S. dollars. The Group has prepared the financial statements on the basis that it will continue to
operate as a going concern.

| 2.1.1. |     | GOING CONCERN BASIS |

The Group incurred net losses for the
years ended December 31, 2022 and 2023, respectively and net cash used in operating activities was CNY13 million 12,786for the year ended December 31, 2022 and net cash from operating activities was CNY13 million 13,328for the year ended December 31 2023. The Group assesses its liquidity by its ability to generate cash from operating activities
and attract additional capital and/or finance funding.

During the year ended December 31,
2023, the Group has, through its subsidiary, sold all its water treatment segment assets and liabilities. This means there will be
no revenues, but administrative and other operating expenses incurred in the near future as the mining and exploration segment is
still at a developing stage. As of December 31, 2023, the Group had net current liabilities of CNY172million
and cash and cash equivalents of CNY5 4,753million.

The Group expects that its existing cash
and cash equivalents and subsequent equity financing (see Note 24) will be sufficient to fund its operations and meet all of its obligations
as they fall due for at least twelve months from the date of the consolidated financial statements. In addition, the Group has received
a financial support letter from its major shareholder. The Group’s ability to continue as a going concern is dependent on management’s
ability to successfully execute its business plan, which includes increasing revenues while controlling operating costs and expenses,
generating operational cash flows as well as continuing to gain support from outside sources of financing. Based on the above considerations,
the Group’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of
assets and liquidation of liabilities in the normal course of business.

| F-11 |

| 2.2 |     | BASIS OF CONSOLID