Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 14

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 14
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 changes could impair or restrict our ability sell products. In addition,
these platforms may be interrupted by regulatory restrictions, cease operations unexpectedly due to a number of events, or even shut down
due to their operating problems.

Any of the above factors could affect our ability to maintain profitability
or have a material adverse effect on our business, financial condition or results of operations.

Order cancelation
as well as merchandise return and exchange policies may adversely affect our business and the results of operations.

We allow our business
customers to cancel orders within a fixed amount of time after the payment and to return products, subject to our return policy. Our order
cancelation rate and product return rate may fluctuate or even increase in the future due to various factors, many of which are beyond
our control. In addition, as we diversify our marketing efforts and expand to more sales channels, our order cancelation rate and product
return rate may further increase. Moreover, our products might be damaged during transit from time to time, especially during international
transportation, which increases the return rate and harms our brands as well. If the rate of order cancelation or product returns increases
significantly, our inventory turnovers and cash flow could be adversely affected, and thus harm our financial condition and operating
results.

Moreover, we may be required
by law to adopt new or amend existing return and exchange policies from time to time. In addition to regulatory requirements, we may also
modify our return policies from time to time, which may result in customers’ dissatisfaction or an increase in order cancelation
or product returns rates.

We rely on third-party
product suppliers, manufacturers, logistics service providers and other vendors to serve our business customers. If they fail to provide
products or services that are consistent with our standards or applicable regulatory requirements, we may have to find alternative vendors,
and our reputation and operation could suffer.

We do not own or operate
any manufacturing facilities. Instead, we rely on third-party manufacturers and third-party product suppliers to supply all of the products
offered on third party platform operated by our business customers. We enter into framework procurement contracts with different third-party
product suppliers and manufacturers. The capacities of our third-party product suppliers and manufacturers are subject to orders placed
by their other clients, which may include our competitors. If our demands increase significantly, or our existing suppliers run out of
their capacity, we may not be able to find additional or alternative suppliers in a timely manner. We also cannot guarantee that we will
have superior bargaining power