Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 61

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 61
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RC, or a slowing
PRC economy, could negatively affect our profitability and growth.

While the PRC economy has
experienced rapid growth, such growth has been uneven among various sectors of the economy and in different geographical areas of the
country. Rapid economic growth can lead to growth in the money supply and rising inflation. If prices for our products and services rise
at a rate that is insufficient to compensate for the rise in the costs of supplies and services, it may have an adverse effect on our
profitability. In order to control inflation in the past, the PRC government has imposed controls on bank credit, limits on loans for
fixed assets and restrictions on bank lending. Such an austere policy can lead to a slowing of economic growth, and recent statistics
have, indeed, suggested that China’s high annual economic growth has slowed down. In addition, the global outbreak of COVID-19 and
the efforts to contain it have negatively impacted economic development in the PRC and around the world. Despite targeted fiscal and monetary
stabilizing policies implemented by the PRC government, the PRC economy has experienced a significant slowdown since the outbreak of COVID-19.
As a result, domestic and global economic conditions may improve, and the markets we intend to serve may grow, at a lower-than-expected
rate or even experience a downturn, adversely affecting our future profitability and growth.

Our
PRC subsidiaries are subject to restrictions on paying dividends and making other payments to us.

We are a holding company incorporated
in the BVI. Under BVI law, we may only pay dividends to investors, including U.S. investors, from surplus (the excess, if any, at the
time of the determination of the total assets of our company over the sum of our liabilities, as shown in our books of account, plus our
capital), and we must be solvent before and after the dividend payment in the sense that we will be able to satisfy our liabilities as
they become due in the ordinary course of business, and the realizable value of assets of our company will not be less than the sum of
our total liabilities, other than deferred taxes as shown in our books of account, and our capital. As a result of our holding company
structure, dividends and other distributions to our shareholders, including U.S. investors, will depend primarily upon dividend payments
from our subsidiaries. However, PRC regulations currently permit the payment of dividends only out of accumulated profits, as determined
in accordance with PRC accounting standards and