Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 36

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 36
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difficulties in completing the administrative procedures necessary to obtain and remit foreign currency. Furthermore, if our subsidiaries
in China incur further debt in the future, debt covenants may restrict their ability to pay dividends or make other payments. If we or
our subsidiaries are unable to receive dividends from our operating companies due to contractual or other limitations on the payment of
dividends, we may be unable to pay dividends or make other distributions on our common shares.

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Governmental control of currency conversion may affect payment of any dividends or foreign currency denominated obligations, and it may adversely affect the value of your investment.

The PRC government
imposes controls on the convertibility of CNY into foreign currencies and, in certain cases, the remittance of currency out of the PRC.
Shortages in the availability of foreign currency may restrict our ability to remit sufficient foreign currency to pay dividends, or
otherwise satisfy foreign currency denominated obligations. Under existing PRC foreign exchange regulations, the CNY is currently convertible
under the “current account,” which includes trade and service-related foreign exchange transactions, but not under the “capital
account,” which includes foreign direct investment and loans, including loans we may secure from our onshore subsidiaries. Currently,
our PRC subsidiaries may purchase foreign currency for settlement of “current account transactions,” without prior approval
from SAFE by complying with certain procedural requirements. However, approval from appropriate governmental authorities is required
where CNY is to be converted into foreign currency and remitted out of the PRC to pay capital expenses such as the repayment of bank
loans denominated in foreign currencies.

The PRC government
may also at its discretion restrict access to foreign currencies for current account transactions in the future. If the foreign exchange
control system prevents us from obtaining sufficient foreign currency to satisfy our currency demands, we may not be able to pay certain
of our expenses as they come due, or pay dividends or make other distributions to investors, including U.S. investors. See “Regulation
– Regulations Related to Foreign Exchange,” for further details regarding exchange controls in the PRC.

The fluctuation of the Renminbi may materially and adversely affect your investment.

The exchange
rate of the Renminbi against the U.S. Dollar and other currencies may fluctuate and is affected by, among other things, changes in the
PRC’s political and economic conditions. As most of our operating expenses are denominated in Renminbi, or CNY, any significant
revaluation