Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 80

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 80
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 employee share options, under which certain of our employees and consultants who are PRC tax residents and exercise share options
will be subject to PRC individual income tax. The individual income tax of consultant grantees and employees shall be paid according to
remuneration for personal services and wages and salaries respectively. Our PRC subsidiaries have obligations to file documents related
to employee share options with relevant tax authorities and to withhold individual income taxes of those employees and consultants who
exercise their share options. If our employees and consultants fail to pay or if we fail to withhold their individual income tax as required
by relevant laws and regulations, we may face sanctions imposed by the PRC tax authorities or other PRC government authorities.

Failure to make adequate contributions
to various mandatory social security plans as required by PRC regulations may subject us to penalties.

Under the PRC Social Insurance
Law and the Administrative Measures on Housing Fund, our PRC subsidiaries are required to participate in various government sponsored
employee benefit plans, including certain social insurance, housing funds and other welfare-oriented payment obligations, and to contribute
to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of the employees up to a maximum amount
specified by the local government from time to time at locations where they operate the businesses. The requirements of employee benefit
plans have not been implemented consistently by the local governments in China given the different levels of economic development in different
locations. If the local governments deem our subsidiaries’ contribution to be insufficient, our subsidiaries may be subject to late
contribution fees or fines in relation to any underpaid employee benefits, and our financial condition and results of operations may be
adversely affected.

In Hong Kong, employers are
required to select and join a provident fund scheme (“MPF Scheme”) in accordance with the statutory requirements of the Mandatory
Provident Fund Schemes Ordinance for all employees in Hong Kong and to make contributions to the MPF Scheme based on the minimum statutory
contribution requirement of 5% of the eligible employees’ relevant aggregate income, subject to a capped amount. Any non-compliance
with statutory requirements with respect to our employees located in Hong Kong may result in enforcement being taken by the relevant authorities,
which could lead to financial penalties or imprisonment.

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Enforcement of stricter labor laws
and regulations may increase our labor costs.

China’s overall economy
and the average wage have grown in recent years and are expected to continue to grow. The average wage level for our employees has also