Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 232

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 232
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 amount of revenue and expenses during the reporting
period.

  KEY SOURCES OF ESTIMATION UNCERTAINTY  

In the application of the Group’s
accounting policies, which are described in Note 4, management is required to make estimates and assumptions about the carrying amounts
of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the
revision affects only that period or in the period of the revision and future periods if the revision affects both current and future
periods.

The following are the key assumptions
concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk
of causing a material adjustment to the carrying amounts of assets within the next financial year.

Allowance for expected credit losses
on other receivables

The Company assessed the latest performance
and financial position of the counterparties, adjusted for the future outlook of the industry in which the counterparties operate in,
and concluded that there has been no significant increase in the credit risk since the initial recognition of the financial assets. Accordingly,
the Company measured the impairment loss allowance using 12-month ECL and determined that the ECL is insignificant.

Depreciation of property, plant and
equipment

As described in Note 4, the Group reviews
the estimated useful lives and residual values of property, plant and equipment at the end of each reporting period. The cost of property,
plant and equipment is depreciated on a straight-line basis over the assets’ estimated useful lives. Management estimates the useful
lives of these property, plant and equipment to be within5to30years. These are the common life expectancies applied in the same industry.
Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of
these assets, therefore future depreciation charges could be revised.

Amortization of intangible assets

The Group estimated useful lives of
intangible assets with finite useful lives are amortized on a systematic basis over their estimated useful lives. The amortization method
should reflect the pattern in which the asset’s economic benefits are consumed, which is at1to5years and also taken into the
consideration of the competition of the industry, there is