Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 213

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 213
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 for all leases, except for short-term leases and leases of low-value assets. The Group recognizes lease liabilities
for obligations to make lease payments and right-of-use assets representing the right to use the underlying assets.

At inception or on reassessment of a contract
that contains a lease component and a non-lease component, the Group adopts the practical expedient not to separate the non-lease component
and to account for the lease component and the associated non-lease component (e.g., property management services for leases of properties)
as a single lease component.

(1) Right-of-use assets

Right-of-use assets
are recognized at the commencement date of the lease (that is, the date the underlying asset is available for use). Right-of-use assets
are measured at cost, less any accumulated depreciation and any impairment losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments
made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis
over the shorter of the lease terms and the estimated useful lives of the assets as follows:

| Schedule of estimated useful lives of right-of-use assets |     |            |
| Offices and warehouses                                    |     | 2–5 years  |
| Motor vehicles                                            |     | 2–10 years |

If ownership of
the leased asset transfers to the Group by the end of the lease term or the cost reflects the exercise of a purchase option, depreciation
is calculated using the estimated useful life of the asset.

(2) Lease liabilities

Lease liabilities are recognized at the
commencement date of the lease at the present value of lease payments to be made over the lease term. The lease payments include fixed
payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Group and payments of penalties for termination of a lease, if the lease term reflects
the Group exercising the option to terminate the lease. The variable lease payments that do not depend on an index or a rate are recognized
as an expense in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease
payments, the Group uses its incremental borrowing