Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 135

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 135
---
 other financial benefits. The Company procured
the tickets from different airline companies and resell them to the online airline ticket agency companies. The airline ticket agency
company will put an online bid inviting from its suppliers once it receives the demands from its online customers. The Company is one
of the airline ticket suppliers. The Company procures the tickets in responding the air-ticket agency companies’ online bid inviting
to ensure the seats are available to sell to the agency companies, or the Company procure the tickets based on its judgement on potential
trend of certain airlines within certain period. Once the Company’s deposit, the full amount of the air-ticket, was deducted by
the airline company and the Company agreed to secure the seats from the airline company, the purchase of air-tickets was recorded. The
Company decided how much and how soon to resell the airline tickets. The inventory period is from 1 minute to 4 months. The airline tickets
are sold shortly after their purchase to lower the inventory risk. Sometimes, the Company holds the tickets longer to expect a higher
margin, but if the tickets cannot be sold before flight time, the Company have to sell the tickets even lower than the purchase price
to avoid further loss. Thus, the Company bears the inventory risks of the airline tickets, and the Company has discretion in setting the
price for the specified service. Once the air-tickets are issued to passengers according to the online agency company’s instruction,
the revenue is recognized. In addition to the air-ticket of airline companies, the Company provided guaranteed flight replacement and
cancellation to the platform companies. The platform can return the tickets to the Company without restriction, while the airline companies
can accept some of the return on certain conditions. Thus, the Company offered additional service plus the standard airline tickets to
its customer. As the Company (i) bears the inventory risks of the air-tickets, (ii) provides additional services on the services procured
by the airline companies, and (iii) has discretion in setting the price for the specified service, the Company is considered as a principal
and recognize the revenue in a gross basis.

Other income

Interest income is recognized on an accrual basis
using the effective interest method by applying the rate that exactly discounts the estimated future cash receipts over the expected life
of the financial instrument or a shorter period, when appropriate, to the net carrying amount of the financial asset.

Rental income is recognized on a time proportion
basis over the lease terms.

Dividend income is recognized