Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 103

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 103
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 2024. In view of
the cessation of the wastewater treatment business and the pre-revenue exploration stage of the Moruogu Tong Mine, the Company expects
that the availability of internally generated funds to sustain operations will decrease for the foreseeable future. As we are actively
exploring new business opportunities in lithium resources in Zimbabwe, we may face growing shortage of working capital in the near future.
Although we believe that our working capital is sufficient for our present requirements and to continue our current operations over the
next 12 months, we envisage engaging in further capital-raising activities in pursuit of other business opportunities in the PRC to diversify
our operations as we move into our next phase of growth.

We have received letters
from Feishang Group and Feishang Enterprise, entities controlled by Mr. Li Feilie, the principal beneficial shareholder of the Company,
which state that Feishang Group and Feishang Enterprise will provide continuous financial support to the Group in relation to the going
concern of its operations, and will not recall any amounts due to them until the Group has sufficient liquidity to finance its operations,
and that Feishang Enterprise will pay debts on behalf of the Group when needed. As such, we believe that we will be able to obtain adequate
amounts of cash to meet our requirements beyond the next 12 months.

The revenue and
expenses of our PRC subsidiaries are denominated in Renminbi. We pay our corporate expenses in either Hong Kong dollars or U.S. Dollars.
The conversion of Renminbi into other currencies is strictly regulated by the PRC government. See “Risk Factors - —Governmental
control of currency conversion may affect payment of any dividends or foreign currency denominated obligations, and it may adversely
affect the value of your investment”.

Under PRC laws
and regulations, we are subject to various restrictions on intercompany fund transfers and foreign exchange controls. See “Transfers
of Cash and Assets Between Our Company and Our Subsidiaries” for further details of impacts on liquidity and capital resources
as a result of cash and assets transfer restrictions and limitations.

As of June 30, 2024, the breakdown of cash
(in thousands) held in different currencies is as follows:

| Currency   
 and Amount |     | CNY Equivalent |       |     | US$        
 Equivalent |       |
| CNY1,781   |     |                | 1,781 |     |            |   245 |
| HK$418