China Natural Resources (NASDAQ: CHNR) flags going concern risk in amended 2024 annual report
Rhea-AI Filing Summary
China Natural Resources, Inc. filed an Amendment No. 1 to its Form 20-F for the year ended December 31, 2024. The amendment mainly adds Exhibit 16.1, a letter from former auditor Ernst & Young Hua Ming LLP about the change in the company’s independent registered public accounting firm, and updates the exhibit index. It also revises pages F-2 to F-3 of the audit report from ARK Pro CPA & Co to clarify which financial statements were audited and to expand disclosure related to going concern, following SEC staff comments.
The revised auditor’s report states that the 2024 consolidated financial statements present fairly the company’s financial position and results in accordance with IFRS. However, it highlights that the company incurred net losses and significant net operating cash outflows for 2024, which raise substantial doubt about its ability to continue as a going concern. The financial statements do not include adjustments that might be required if the company is unable to continue operating. The amendment does not update any other disclosures from the original annual report, and it notes 8,377,897 common shares outstanding as of December 31, 2024.
Positive
- None.
Negative
- Going concern uncertainty: The auditor highlights that net losses and significant net operating cash outflows for the year ended December 31, 2024 raise substantial doubt about China Natural Resources’ ability to continue as a going concern, and the financial statements do not include adjustments that might result if the company cannot continue operating.
Insights
Amended 20-F adds exhibits and emphasizes substantial going concern doubt.
The amendment is limited in scope but important from an audit and risk perspective. It adds the former auditor’s letter on the change in independent registered public accounting firm and updates the exhibit list, while providing currently dated CEO/CFO certifications and an updated consent from ARK Pro CPA & Co. These steps align the documentation with regulatory expectations after SEC staff comments.
The key disclosure is the strengthened going concern language. ARK Pro CPA & Co notes that China Natural Resources incurred net losses and significant net operating cash outflows for the year ended December 31, 2024, and that these conditions raise substantial doubt about the company’s ability to continue as a going concern. The financial statements are prepared on a going concern basis and do not include any adjustments that could arise if the company cannot continue operating, so future outcomes could differ materially from the current presentation.
The auditor reports no critical audit matters, which suggests no single area required especially complex judgment beyond the going concern assessment itself. However, the explicit substantial doubt language in a foreign private issuer’s annual report is typically viewed as a material risk signal, and subsequent filings will be important to see how losses, cash flows and financing plans evolve after December 31, 2024.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
Amendment No. 1
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(Mark One)
| REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| OR | |
| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| For the fiscal year ended | |
| OR | |
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| For the transition period from: _____________ to _____________ | |
| OR | |
| SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| Date of event requiring shell company report ___________ | |
Commission
file number:
(Exact name of Registrant as specified in its charter)
Not Applicable
(Translation of Registrant’s name into English)
British Virgin Islands
(Jurisdiction of incorporation or organization)
(Address of principal executive offices)
(Name, telephone number, e-mail and/or facsimile number and address of company contact person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report. common shares as of December 31, 2024.
Indicate by check mark if the issuer is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes
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If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes
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Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
| Large Accelerated Filer ☐ | Accelerated Filer ☐ | ||
| Emerging Growth Company |
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate
by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of
its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (§15 U.S.C. 7262(b)) by the registered public
accounting firm that prepared or issued its audit report.
If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
| U.S. GAAP ☐ | Other ☐ | |||
| By the International Accounting Standards Board ☒ |
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17 ☐ Item 18 ☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
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| Auditor Name | Auditor Location | Audit Firm ID |
| | ||
EXPLANATORY NOTE
This Amendment No. 1 to the Annual Report on Form 20-F/A (the “Amendment”) is being filed by China Natural Resources, Inc. (the “Company,” “we,” “our,” or “us”) to amend the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2024, originally filed with the U.S. Securities Exchange Commission (the “SEC”) on May 15, 2025 (the “Original Filing”).
The Company is filing this Amendment to (i) file Exhibit 16.1, which was inadvertently omitted in the Original Filing, and to amend the exhibit index accordingly, and (ii) amend pages F-2 to F-3 of the auditor’s report from ARK Pro CPA & Co (“ARK”) dated May 15, 2025, to address the staff of the SEC’s comments regarding the identification of audited financial statements and disclosure related to going concern.
Except as described above, no other changes have been made to the Original Filing. Otherwise, this Amendment speaks as of the date of the Original Filing, and does not modify, amend or update any other item or disclosures in the Original Filing. As such, this Amendment does not reflect events occurring after the filing of the Original Filing or modify or update those disclosures affected by subsequent events. The Company’s Chief Executive Officer and Principal Financial Officer are providing currently dated revised certifications as Exhibits 12.1, 12.2, 13.1 and 13.2 in connection with this Amendment. The Company’s auditor, ARK, is providing currently dated revised consent as Exhibit 15.1. The filing of this Amendment should not be understood to mean that any statements contained in the Original Filing, as amended by this Amendment, are true or complete as of any date subsequent to the filing date of the Original Filing. Accordingly, this Amendment should be read in conjunction with the Original Filing.
TABLE OF CONTENTS
| PART III | ||
| ITEM 19. EXHIBITS | 3 | |
| SIGNATURES | 4 | |
2
| ITEM 19. | EXHIBITS |
The following exhibits are filed as part of this annual report on Form 20-F/A. Certain exhibits have been previously filed with the SEC pursuant to the Exchange Act, as amended (Commission File Number 000-26046).
| Exhibit No. | Exhibit Description | |
| 12.1 | CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith). | |
| 12.2 | CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(filed herewith). | |
| 13.1 | CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith). | |
| 13.2 | CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith). | |
| 15.1 | Consent of ARK Pro CPA & Co (filed herewith). | |
| 16.1 | Letter of Ernst & Young Hua Ming LLP dated April 8 , 2025 regarding change in independent registered public accounting firm (included as Exhibit 99.1 to the Current Report on Form 6-K furnished April 8, 2025, and incorporated herein by reference). | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
3
SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F/A and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.
| CHINA NATURAL RESOURCES, INC. | |||
| Date: October 6, 2025 | By: | /s/ WONG WAH ON EDWARD | |
| Wong Wah On Edward, CEO | |||
4
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To The Board of Directors and Shareholders of
China Natural Resources, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of financial position of China Natural Resources, Inc. and subsidiaries (the “Company”) as of December 31, 2024, and the related consolidated statements of comprehensive income, statements of profit or loss, changes in stockholders’ equity and cash flows for the year then ended, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2024, and the consolidated results of its operations and its cash flows for the year then ended, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.
Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has incurred net losses and significant net operating cash outflow for the year ended December 31, 2024. All these factors raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also discussed in Note 2 to the consolidated financial statements. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
F-2
Critical Audit Matters
Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. We determined that there are no critical audit matters.
/s/ ARK Pro CPA & Co
ARK Pro CPA & Co
We have served as the Company’s auditor since 2025.
Hong Kong, China
May 15, 2025
PCAOB ID: 3299
F-3
FAQ
What does China Natural Resources, Inc. (CHNR) change in its 2024 Form 20-F/A?
The amendment primarily adds Exhibit 16.1, a letter from Ernst & Young Hua Ming LLP regarding the change in independent registered public accounting firm, updates the exhibit index, and revises the auditor’s report pages F-2 to F-3 to address SEC staff comments on identification of audited financial statements and going concern disclosure.
What does the auditor say about CHNRs going concern status for 2024?
ARK Pro CPA & Co states that China Natural Resources incurred net losses and significant net operating cash outflow for the year ended December 31, 2024, and that these factors raise substantial doubt about its ability to continue as a going concern. The consolidated financial statements do not include adjustments that might result from this uncertainty.
Did the auditor give an opinion on CHNRs 2024 financial statements?
Yes. ARK Pro CPA & Co opines that the consolidated financial statements of China Natural Resources as of December 31, 2024 present fairly, in all material respects, the company’s financial position, results of operations and cash flows for the year then ended in conformity with International Financial Reporting Standards as issued by the IASB.
Are there any critical audit matters identified for CHNRs 2024 audit?
No. ARK Pro CPA & Co reports that it determined there are no critical audit matters arising from the 2024 audit that meet the applicable criteria for inclusion in the report.
How many CHNR common shares were outstanding at December 31, 2024?
The filing states that China Natural Resources had 8,377,897 common shares outstanding as of December 31, 2024.
Does the 20-F/A amendment update CHNRs financial results after the original filing date?
No. The amendment specifies that, aside from the added and revised exhibits and auditor report changes, it does not modify, amend or update other disclosures and does not reflect events occurring after the date of the original Form 20-F filing.
