Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 130

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 130
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 Any limitation on the ability of our PRC subsidiaries to distribute dividends to us
may restrict our ability to satisfy our liquidity requirements.

In addition, each of our PRC subsidiaries,
as a Foreign Invested Enterprise, or FIE, are required to set aside at least 10% of its after-tax profits each year, if any, to fund a
common reserve, which may stop drawing its after-tax profits if the aggregate balance of the common reserve has already accounted for
over 50% of its registered capital. These reserves are not distributable as cash dividends. The PRC government may continue to strengthen
its capital controls which would subject dividends distribution from our PRC subsidiaries to the Company to heightened scrutiny. The PRC
government imposes controls on the convertibility of RMB, the official currency of the PRC) into foreign currencies and, in certain cases,
the remittance of currency out of China. The PRC government also imposes control on the conversion of RMB into foreign currencies and
the remittance of currencies out of the PRC. Under existing PRC foreign exchange regulations, payments of current account items, including
profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign currencies without prior
approval from the State Administration of Foreign Exchange (“ SAFE”) in the PRC, as long as certain procedural requirements
are met. Approval from appropriate government authorities is required if RMB is converted into foreign currency and remitted out of China
to pay capital expenses such as the repayment of loans denominated in foreign currencies.

The PRC government may, at its discretion, impose restrictions on access
to foreign currencies for current account transactions and, if this occurs in the future, we may not be able to pay dividends in foreign
currencies (i. e., U. S. dollars) to our shareholders and we may experience difficulties in completing the administrative procedures necessary
to obtain and remit foreign currency for the payment of dividends from our profits, if any. Therefore, we may experience difficulties
in completing the processes necessary to obtain and remit foreign currency for the payment of any dividends.

In addition, the Enterprise Income Tax Law and its implementation rules
provide that a withholding tax at a rate of 10% will be applicable to dividends payable by Chinese companies to non-PRC-resident enterprises
unless reduced under treaties or arrangements between the PRC central government and the governments of other countries or regions where
the non-PRC resident enterprises are tax resident. Pursuant to the tax agreement