Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 64

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 64
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 of capital, a share transfer or exchange, or mergers or divisions. SAFE Circular 37 is applicable to our shareholders who
are PRC residents and may be applicable to any offshore acquisitions that we make in the future. If our shareholders who are PRC
residents fail to make the required SAFE registration or to update a previously filed registration, our PRC subsidiaries may be prohibited
from distributing their profits or the proceeds from any capital reduction, share transfer or liquidation to us, and we accordingly would
be unable to distribute to our investors, including U.S. investors, and we may also be prohibited from making additional capital contributions
to our PRC subsidiaries.

In February 2015, SAFE
promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment (“SAFE Notice
13”), effective June 2015. Under SAFE Notice 13, applications for foreign exchange registration of inbound foreign direct investments
and outbound overseas direct investments, including those required under SAFE Circular 37, shall be filed with qualified banks instead
of SAFE. The qualified banks directly examine the applications and accept registrations under the supervision of SAFE. To date, no
registration has been filed with SAFE regarding us, and accordingly, SAFE may prohibit distributions from our PRC subsidiaries, which
would prevent us from paying dividends, including to our U.S. investors, and may adversely affect our financial condition and potentially
expose us to liability under PRC law.

The
PCAOB may determine that it is unable to inspect our auditor in relation to its audit work performed for our financial
statements to its satisfaction, and any inability of the PCAOB to conduct inspections over our auditor may affect our investors’
ability to benefit from such inspections.

Our auditor, the independent
registered public accounting firm that issues the audit report included in our annual reports, as an auditor of companies that are traded
publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which the PCAOB
conducts regular inspections to assess its compliance with applicable professional standards. Since our auditor is located in China,
a jurisdiction where the PCAOB had been previously unable to conduct inspections without the approval of the Chinese authorities,
our auditor was subject to the determinations announced by the PCAOB on December 16, 2021 that it was unable to inspect or investigate
completely PCAOB-registered public accounting firms headquartered in mainland China and in Hong Kong. On December 15, 2022