Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 48

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 48
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 of our PRC-resident beneficial owners will comply with
SAFE Circular 37 and subsequent implementation rules, and there is no assurance that the registration under SAFE Circular 37 and any amendment
will be completed in a timely manner, or will be completed at all. Any failure or inability by such shareholders to comply with SAFE regulations
may subject us to fines or legal sanctions, such as restrictions on our cross-border investment activities or our PRC subsidiary’s
ability to distribute dividends to, or obtain foreign exchange-denominated loans from, our company or prevent us from making distributions
or paying dividends. As a result, our business operations and our ability to make distributions to you could be materially and adversely
affected.

PRC regulation of loans to and direct investment
in PRC entities by offshore holding companies and governmental control of currency conversion may delay us from using the proceeds of
future securities offerings to make loans or additional capital contributions to our PRC subsidiaries, which could materially and adversely
affect our liquidity and our ability to fund and expand our business.

Any transfer of cash to our PRC subsidiaries,
either as a shareholder loan or as an increase in registered capital, are subject to approval by or registration with relevant governmental
authorities in China. According to the relevant PRC regulations on foreign-invested enterprises, or FIEs, in China, capital contributions
to our PRC subsidiaries are subject to the approval of or filing with the Ministry of Commerce, or MOFCOM or its local branches and registration
with a local bank authorized by the State Administration of Foreign Exchange, or SAFE. In addition, (i) a foreign loan of less one year
duration procured by our PRC subsidiaries is required to be registered with SAFE or its local branches and (ii) a foreign loan of one
year duration or more procured by our PRC subsidiaries is required to be applied to the NDRC in advance for undergoing recordation registration
formalities. Any medium or long-term loan to be provided by us to our PRC operating subsidiaries, must be registered with the NDRC and
the SAFE or its local branches. We may not be able to complete such registrations on a timely basis, with respect to future capital contributions
or foreign loans by us to our PRC Subsidiary. If we fail to complete such registrations, our ability to use the proceeds of any future
securities offerings and to capitalize our PRC operations may be negatively affected, which could adversely affect our liquidity and our
ability to fund and expand