Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 113

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 113
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, the outstanding cross-border financing of an enterprise (the outstanding balance
drawn, here and below) shall be calculated using a risk-weighted approach, and shall not exceed certain specified upper limits. PBOC Notice
No. 9 further provides that the upper limit of risk-weighted outstanding cross-border financing for enterprises shall be equal to 200%
of its net assets multiplied by macro-prudential regulation parameter. The macro-prudential regulation parameter shall be 1. Enterprises
shall file with SAFE in its capital item information system after entering into the relevant cross-border financing contracts and prior
to three business days before drawing any money from the foreign debts.

In March 2020, the PBOC and SAFE issued the Notice
on Adjustments to Comprehensive Macro-Prudential Regulation Parameters for Cross-border Financing, further increasing outstanding cross-border
financing for enterprises to 250% of its net assets. FIEs can choose to calculate their maximum amount of foreign debts based on either
(i) the Total Investment and Registered Capital Balance, or (ii) the Net Asset Limits. In addition, a foreign debt with a term longer
than one year must be filed with the NDRC before the debt issuance, and the issuer shall submit the foreign debt information to the NDRC
within 10 business days from completion of each debt issuance according to the Circular on Promoting the Reform of Filing and Registration
Administrative Regime for the Foreign Debt Issuance by the NDRC. According to the Notice on Adjustments to the Macro-Prudential Adjustment
Parameter for Cross-border Financing of Companies promulgated by the PBOC and SAFE, which took effect on January 7, 2021, the PBOC and
the SAFE decide to lower the macro-prudential adjustment parameter for cross-border financing of companies to 1 from 1.25.

The HFCAA and AHFCAA

As part of a continued regulatory focus in
the United States on access to audit and other information currently protected by national law, in particular China’s, on May
20, 2020, the U. S. Senate passed the HFCAA, which includes requirements for the SEC to identify issuers whose audit work is
performed by auditors that the PCAOB is unable to inspect or investigate completely because of a restriction imposed by a non-U. S.
authority in the auditor’s local jurisdiction. The HFCAA was signed into law on December 18, 2020. The HFCAA states