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

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 15
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 over third-party product suppliers and manufacturers for our newly launched products. In addition, quality
control issues, such as the use of unqualified materials, may exist in certain third-party product suppliers and could cause consumer
dissatisfaction and as a result, harm our business.

We rely on third-party
logistics service providers to deliver products to our customers. Any delay, damages, loss and inappropriate actions taken by logistics
service providers might cause customer complaints. Although we may claim compensation from third-party logistics service providers in
some cases, our business, financial condition and results of operations could suffer as well.

We procure inventory
based on our forecast on business customer demands, and if we are unable to manage our inventory effectively, our operating results could
be adversely affected.

Our scale and business
model requires us to manage a large volume of inventory effectively. Our forecast on demands may significantly differ from actual demands.
Demands may be affected by seasonality, new product launches, rapid changes in product cycles and pricing, product defects, promotions,
changes in business consumer spending patterns, changes in business consumer tastes with respect to our products and other factors, and
our business consumers may not purchase products in the quantities that we expect. We may not be able to return unsold products to our
suppliers unless the products are defective or otherwise agreed with our suppliers.

On the other hand, if
we underestimate demand and thus run short of inventory, our growth may be adversely affected due to lower sales volume and unsatisfied
shopping experiences.

Furthermore, if we fail
to negotiate favorable credit terms with third-party suppliers and manufacturers, we may be subject to a heightened risk of inventory
obsolescence, a decline in inventory values, and significant inventory write- downs or write-offs. In case that we are required to lower
sale prices in order to reduce inventory level or to pay higher prices to our suppliers, our profit margins might be negatively affected.
Any of the above may materially and adversely affect our business, financial condition and operating results.

If we fail to obtain requisite approvals or licenses or fail
to comply with other regulatory requirements applicable to our operations, we may be subject to administrative penalties and our business
and operating results could be adversely affected.

Our business is subject
to general business regulations governing cross-borders and tourism industries. We are also subject to supervision and regulation
by the State Administration for Market Regulation of the PRC and other relevant PRC government authorities and/or their relevant local
counterparts. While we currently hold all licenses and permits