Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 35

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 35
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 such approvals,
our ability to fund our PRC operations may be negatively affected, which could materially and adversely affect our liquidity and our
ability to fund and expand our business.

Inflation in the PRC, or a slowing PRC economy, could negatively affect our profitability and growth.

While the PRC economy has experienced
rapid growth, such growth has been uneven among various sectors of the economy and in different geographical areas of the country. Rapid
economic growth can lead to growth in the money supply and rising inflation. If prices for our products and services rise at a rate that
is insufficient to compensate for the rise in the costs of supplies and services, it may have an adverse effect on our profitability.
In order to control inflation in the past, the PRC government has imposed controls on bank credit, limits on loans for fixed assets and
restrictions on bank lending. As a result, domestic and global economic conditions may improve, and the markets we intend to serve may
grow, at a lower-than-expected rate or even experience a downturn, adversely affecting our future profitability and growth.

Our PRC subsidiaries are subject to restrictions on paying dividends and making other payments to us.

We are a holding
company incorporated in the BVI. Under BVI law, we may only pay dividends to investors, including U.S. investors, from surplus (the excess,
if any, at the time of the determination of the total assets of our company over the sum of our liabilities, as shown in our books of
account, plus our capital), and we must be solvent before and after the dividend payment in the sense that we will be able to satisfy
our liabilities as they become due in the ordinary course of business, and the realizable value of assets of our company will not be less
than the sum of our total liabilities, other than deferred taxes as shown in our books of account, and our capital. As a result of our
holding company structure, dividends and other distributions to our shareholders, including U.S. investors, will depend primarily upon
dividend payments from our subsidiaries. However, PRC regulations currently permit the payment of dividends only out of accumulated profits,
as determined in accordance with PRC accounting standards and regulations. Our subsidiaries in China are also required to set aside a
portion of their after-tax profits as certain reserve funds according to PRC accounting standards and regulations. The PRC government
also imposes controls on the conversion of CNY into foreign currencies and the remittance of currency out of China. We may experience