Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 112

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 112
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previous fiscal years have been offset. Profits retained from prior fiscal years may be distributed together with distributable profits
from the current fiscal year. Under our current corporate structure, our Marshall Islands holding company may rely on dividend payments
from Hongri PRC, which is a wholly foreign-owned enterprise incorporated in China, to fund any cash and financing requirements we may
have.

Regulations on Loans by Foreign Companies to
their PRC Subsidiaries

A loan made by foreign investors as shareholders
in a foreign-invested enterprise is considered to be foreign debt in China and is regulated by various laws and regulations, including
the Regulation of the People’s Republic of China on Foreign Exchange Administration, the Interim Provisions on the Management of
Foreign Debts, the Statistical Monitoring of Foreign Debts Tentative Provisions (Revised in 2020), the Detailed Rules for the Implementation
of Provisional Regulations on Statistics and Supervision of External Debt, and the Administrative Measures for Registration of Foreign
Debts. Under these rules and regulations, a shareholder loan in the form of foreign debt made to a PRC entity does not require the prior
approval of the SAFE. However, such foreign debt must be registered with and recorded by the SAFE or its local branches within fifteen
business days after entering into the foreign debt contract. Pursuant to these rules and regulations, the balance of the foreign debts
of a foreign-invested enterprise shall not exceed the difference between the total investment and the registered capital of the foreign-invested
enterprise (the “Total Investment and Registered Capital Balance”).

On January 12, 2017, the People’s Bank of
China, promulgated the Notice of the People’s Bank of China on Matters concerning the Macro-Prudential Management of Full-Covered
Cross-Border Financing (the “PBOC Notice No. 9”). Pursuant to PBOC Notice No. 9, within a transition period of one
year from January 12, 2017, the foreign-invested enterprises may adopt the currently valid foreign debt management mechanism (the “Current
Foreign Debt Mechanism”), or the mechanism as provided in PBOC Notice No. 9 (the “Notice No. 9 Foreign Debt Mechanism”),
at their own discretions. PBOC Notice No. 9 provides that enterprises may conduct independent cross-border financing in RMB or foreign
currencies as required. Pursuant to PBOC Notice No. 9