Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 55

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 55
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alties.

Companies operating in China are required to participate
in various government-mandated employee benefit contribution plans, including certain social insurance, housing funds and other welfare-oriented
payment obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances,
of our employees up to a maximum amount specified by the local government from time to time at locations where we operate our businesses.
The requirement of employee benefit contribution plans has not been implemented consistently by the local governments in China given the
different levels of economic development in different locations. Companies operating in China are also required to withhold individual
income tax on employees’ salaries based on the actual salary of each employee upon payment. We may be subject to late fees and fines
in relation to the underpaid employee benefits and under-withheld individual income tax, our financial condition and results of operations
may be adversely affected.

Any failure to comply with PRC regulations
regarding the registration requirements for employee stock incentive plans may subject the PRC plan participants or us to fines and other
legal or administrative sanctions.

Pursuant to the Notices on Issues Concerning the
Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas Publicly-Listed Company, promulgated
by SAFE in 2012, or SAFE Notices No. 7, PRC citizens and non-PRC citizens who reside in China for a continuous period of no less than
one year who participate in any stock incentive plan of an overseas publicly listed company offered to the director, supervisor, senior
management and other employees of, and any individual who has labor relationship with its domestic affiliated entities are required to
register with SAFE through a domestic qualified agent, which could be a PRC subsidiary of such overseas listed company, and complete certain
other procedures. In addition, an overseas entrusted institution must be retained to handle matters in connection with the exercise or
sale of stock options and the purchase or sale of shares and interests. We and our directors, executive officers and other employees who
are PRC citizens or who reside in the PRC for a continuous period of no less than one year and who have been granted stock options became
subject to these regulations when our company became an overseas listed company upon the completion of our recent initial public offering.
Failure to complete the SAFE registrations for our employee incentive plans after our listing may subject them to fines and legal sanctions
and may also limit our ability to contribute additional capital into our PRC subsidiaries and limit our PRC subsidiaries’ ability