Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 101

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 101
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 on financial assets from discontinued operations decreased by CNY4.40 million from CNY3.33
million of loss for the year ended December 31, 2021 to CNY1.07 million of reversal for the year ended December 31, 2022.
The decrease was the result of an expected credit loss assessment of receivables and contract assets, due to the fact that the amount
of collection of aged trade receivables related to construction contracts was relatively higher than the amount of origination of new
trade receivables related to construction contracts in 2022.

Finance Costs.Finance costs from discontinued operations decreased by CNY0.60 million from CNY4.19 million for the year ended
December 31, 2021 to CNY3.59 million for the year ended December 31, 2022. This was mainly due to exchange gain on the
appreciation of foreign currency deposits in 2022, and decreased interest expenses on bank loans as our outstanding borrowing balance
decreased.

Finance Income.Finance income from discontinued operations decreased by CNY1.33 million from CNY16.92 million for the year ended December 31,
2021 to CNY15.59 million for the year ended December 31, 2022. The decrease in finance income was mainly due to the decrease
of interest income from the service concession arrangement relating to a financing component, which arose due to a guaranteed 28-year-long
collection period for construction services for the Wujiang Project.

Income Tax Expense.
Income tax expense from discontinued operations decreased by CNY1.37 million from CNY7.23 million for the year ended December 31,
2021 to CNY5.86 million for the year ended December 31, 2022. The decrease was mainly caused by additional recognition of deferred
tax benefits in 2022.

(Loss)/Profit.As
a result of the foregoing, our profit from discontinued operations increased by CNY12.13 million, from CNY11.09 million of loss
for the year ended December 31, 2021 to CNY1.04 million of profit for the year ended December 31, 2022.

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Impact of Government Policies on the Company’s Operations

In 2023, impacts of the pandemic
receded, and the government stepped up policy efforts to stabilize the economy and speed up recovery. Macroeconomic policies will largely
impact economic cycles, growth rates, inflation