Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 40

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 40
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 of our, and our auditor’s, control. A trading prohibition would substantially impair your ability to sell or purchase
our common shares when you wish to do so, and the risk and uncertainty associated with delisting would have a negative impact on the price
of our common shares.

PRC regulations establish complex procedures for some acquisitions conducted by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China.

The Regulations on Mergers and Acquisitions
of Domestic Enterprises by Foreign Investors (the “M&A Rules”), adopted by six PRC regulatory agencies in August 2006
and amended in June 2009, among other things, established procedures and requirements that could make merger and acquisition activities
by foreign investors more time-consuming and complex. In addition, the Provisions of Ministry of Commerce on Implementation of Security
Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, issued by the Ministry of Commerce in August
2011, specify that mergers and acquisitions by foreign investors involved in “an industry related to national security” are
subject to strict review by the Ministry of Commerce, and prohibit any activities attempting to bypass such security review, including
by structuring the transaction through a proxy or contractual control arrangement.

On March 15,
2019, the PRC National People’s Congress enacted the Foreign Investment Law of the PRC (the “Foreign Investment Law”),
which became effective on January 1, 2020. The Foreign Investment Law has replaced the previous major laws and regulations governing foreign
investment in the PRC, including the Sino-foreign Equity Joint Ventures Enterprises Law of the PRC, the Sino-foreign Co-operative Enterprises
Law of the PRC and the Wholly Foreign-invested Enterprise Law of the PRC. According to the Foreign Investment Law, “foreign-invested
enterprises” refers to enterprises that are wholly or partly invested by foreign investors and registered under the PRC laws within
China, and “foreign investment” refers to any foreign investor’s direct or indirect investment activities in China,
including: (i) establishing foreign-invested enterprises in China either individually or jointly with other investors; (ii) obtaining
stock shares, equity shares, shares in properties or other similar interests of Chinese domestic enterprises; (iii) investing in new projects
in China either individually or jointly with other investors; and (iv) investing through other methods provided by laws, administrative
regulations or provisions prescribed by the State Council.

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