Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 280

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 280
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 future cash flows of that
financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events:

- significant
financial difficulty of the debtor

- a breach of contract such as a default or past due event; or

- it is probable that the debtor
will enter bankruptcy or other financial reorganization.

To
manage credit risk arising from trade receivables and contract assets, the credit quality of the debtors is assessed, taking into account
their historical settlement records, past experience and other factors. The Group applies the simplified approach to provide for ECLs
prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The ECLs also incorporated
forward-looking information.

For
financial assets assessed for impairment under the general approach, the Group established a policy to perform an assessment at the end
of each reporting period of whether a financial instrument’s credit risk has increased significantly since initial recognition,
by considering the change in the risk of default occurring over the remaining life of the financial instrument. The Group groups its
other receivables into Stage 1, Stage 2 and Stage 3, as described below:

Stage
1 – When other receivables are first recognized, the Group recognized an allowance based on 12 months’ ECLs.

Stage
2 – When other receivables have shown a significant increase in credit risk since origination, the Group records an allowance for
the lifetime ECLs.

Stage
3 – Other receivables are considered credit-impaired. The Group records an allowance for the lifetime ECLs.

| F-105 |

| CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Amounts in thousands, except share and per share data) |

15 .FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

| (a) |     | Credit risk (continued) |

Management also makes periodic collective
assessments for other receivables and amounts due from related companies as well as individual assessments of the recoverability of other
receivables based on historical settlement records, past experience and other factors. The Group classified other receivables and amounts
due from related companies in Stage 1 and continuously monitored their credit risk. Management believes that there is no material credit
risk inherent in the Group’s outstanding balance of