Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 92

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 92
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 the presence of other ores such as copper. We are also actively seeking opportunities of exploration and mining of other metals outside of the PRC. See, “Corporate History and Structure— Acquisition of Williams Minerals.”

We continuously pivot our business by exploring new opportunities for growth or diversification. Between July 2021 and July 2023, we also engaged in the rural wastewater treatment business in China through the acquisition of PST Technology, which held 51% equity interest of Shanghai Onway, a PRC company which is principally engaged in the development of rural wastewater treatment technologies, the provision of equipment and materials for rural wastewater treatment, undertaking EPC and PPP projects in relation to rural wastewater treatment, and the provision of consulting and professional technical services. We ceased the wastewater treatment business segment following the disposition of PST Technology in July 2023. See “Corporate History and Structure –Acquisition and Sale of Precise Space-Time Technology Limited.”

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Components of Our Results of Operation

Continuing Operations

Administrative Expenses

Administrative expenses primarily
consist of salaries and staff welfare expenses, professional service fees, travel and entertainment expenses, depreciation and amortization,
share-based awards granted to certain eligible parties and other general corporate function related expenses.

Other Income/(Losses)

Other operating income/(loss)
primarily consists of government reimbursements and tax refunds, and other non-operating income or expenses.

Fair Value Gain/(Loss) on Financial Instruments, net

Fair value gain or loss on
financial instruments and the net changes in fair value of the Company’s warrants.

Finance Costs

Finance costs consist primarily
of interest expense on loans and lease liabilities, and foreign currency exchange differences.

Finance Income

Finance income consists primarily
of interest income on loans to related parties and third parties, and interest income derived from revenue contracts with a significant
financing component and from the service concession arrangement, which arise under IFRS due to the imputed credit terms attendant to the
delayed payment terms we offer our customers. Imputed finance income under our service concession arrangement is recognized on an accrual
basis using the effective interest rate method by applying the rate that discounts the estimated future cash receipts over the expected
life of the financial instrument or a shorter period, when appropriate, to the net carrying amount of the financial asset. See “Related
Party Transactions” for further information regarding loans to and from related parties.

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Income Tax Expense

The Company is not subject to taxes in the United
States.

Under the current laws of
the