Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 251

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 251
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 | Credit risk 
 (continued) |

A
financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated 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;

-
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 Group assesses the credit quality of the debtors, taking into
account their financial position, 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.

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 other receivables as of December 31, 2022
and 2023.

The
Group does not provide any guarantees that would expose the Group to credit risk. Further quantitative disclosures with respect to the
Group’s exposure to credit risk arising from financial assets are set out in Notes