Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 40

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 40
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significantly decline or be worthless.

Uncertainties with respect to the PRC legal
system, including that the rules and regulations in China can change quickly with little advance notice, and the interpretation and enforcement
of PRC laws and regulations, could limit the legal protections available to you and us.

Our operating subsidiaries are incorporated under
and governed by the laws of the PRC. The PRC legal system is a civil law system based on written statutes. Unlike the common law system,
prior court decisions under the civil law system may be cited for reference but have limited precedential value. In 1979, the PRC government
began to promulgate a comprehensive system of laws and regulations governing economic matters generally. The overall effect of legislation
over the past three decades has significantly enhanced the protections afforded to various forms of foreign investments in the PRC. However,
the PRC has not developed a fully integrated legal system, and recently enacted laws and regulations may not sufficiently cover all aspects
of economic activities in the PRC. In particular, the interpretation and enforcement of these laws and regulations involve uncertainties.
Since PRC administrative and court authorities have significant discretion in interpreting and implementing statutory provisions and contractual
terms, it may be difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy.
These uncertainties may affect our judgment on the relevance of legal requirements and our ability to enforce our contractual rights or
tort claims. In addition, these regulatory uncertainties may be exploited through unmerited or frivolous legal actions or threats in attempts
to extract payments or benefits from us. Furthermore, the PRC legal system is based in part on government policies and internal rules,
some of which are not published on a timely basis or at all and may have a retroactive effect. As a result, we may not be aware of our
violation of any of these policies and rules until sometime after the violation. In addition, any administrative and court proceedings
in the PRC may be protracted, resulting in substantial costs and diversion of resources and management attention.

Furthermore, intellectual property rights and
confidentiality protections in China may not be as effective as in the United States or other countries. In addition, we cannot predict
the effect of future developments in the PRC legal system, including the promulgation of new laws, changes to existing laws or the interpretation
or enforcement thereof, or the preemption of local regulations by national laws. These uncertainties could limit the legal protections
available to us and other foreign