Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 230

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 230
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 Group controlled the copper ores prior to
selling them to customers. Revenue was recognized on a gross basis, and at the point in time when control of the asset was transferred
to the customer, upon delivery of the copper ores to the customers.

| F-31 |

| 2.5 |     | MATERIAL ACCOUNTING POLICIES (CONTINUED) |

| (aa) | Revenue recognition - Discontinued Operations (continued) |

Other income

Imputed finance income
under a 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.

Interest income is recognized
on an accrual basis using the effective interest 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.

| (ab) | Contract assets and contract liabilities – Discontinued Operations |

Contract assets

If the Group performs
by transferring services or goods to a customer before being unconditionally entitled to the consideration under the contract terms, a
contract asset is recognized for the earned consideration that is conditional. Contract assets are subject to impairment assessment according
to the policy set out for “(k) Impairment of financial assets”above. They are reclassified to trade receivables when
the right to the consideration becomes unconditional.

Contract liabilities

A contract liability
is the obligation to transfer services or goods to a customer from which the Group has received consideration (or from which an amount
of consideration is unconditionally due) from the customer. If a customer pays consideration before the Group transfers services or goods
to the customer, a contract liability is recognized when the payment is made or the payment is unconditionally due (whichever is earlier).
Contract liabilities are recognized as revenue when the Group performs under the contract.

| F-32 |

| 2.6 |     | SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES |

The preparation of the consolidated financial
statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the reported amounts
of assets, liabilities, revenues and expenses. Uncertainty about these assumptions and estimates could result in outcomes that require
a material adjustment to the carrying amount of the asset or liability affected in future periods.

Judgments

In the process of