Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 110

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 110
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 same day, domestic residents
shall register with the local branch of SAFE for foreign exchange registration of overseas investment before contributing the domestic
and overseas lawful assets or interests into a special purpose vehicle (the “ SPV”), and to update such registration in the
event of any change of basic information of the registered SPV or major changes in the SPV’s capital, including increases and decreases
of capital, share transfers, share swaps, mergers or divisions. The SPV is defined as an “offshore enterprise directly established
or indirectly controlled by the domestic resident (including domestic institution and resident individual) with their legally owned assets
and equity of the domestic enterprise, or legally owned offshore assets or equity, for the purpose of investment and financing”;
“ Round Trip Investment refers to “the direct investment activities carried out by a domestic resident directly or indirectly
via a SPV, i. e., establishing a foreign-invested enterprise or project within the PRC through a new entity, merger or acquisition and
other ways, while obtaining ownership, control, operation and management and other rights and interests”.

On February 13, 2015, SAFE promulgated the Circular
of the State Administration of Foreign Exchange on Further Simplifying and Improving the Direct Investment-related Foreign Exchange Administration
Policies (the “SAFE Circular 13”), which came into effect on June 1, 2015. According to the SAFE Circular 13, the initial
foreign exchange registration for establishing or taking control of a SPV by domestic residents can be conducted with a qualified bank,
instead of a local branch of SAFE. The SAFE Circular 13 simplifies some procedures relating to foreign exchange for direct investments.
On March 30, 2015, SAFE promulgated the Circular on Reforming of the Management Method of the Settlement of Foreign Currency Capital of
Foreign-Invested Enterprises (the “SAFE Circular 19”), which came into effect from June 1, 2015. According to the SAFE
Circular 19, the foreign exchange capital of foreign-invested enterprises shall be subject to the Discretional Foreign Exchange Settlement
(the “Discretional Foreign Exchange Settlement”). The Discretional Foreign Exchange Settlement refers to the foreign
exchange capital in the capital account of a foreign-invested enterprise for which the rights and interests of monetary contribution has
been confirmed by the local branch of SAFE (or the book-entry registration of monetary contribution by the banks) can be settled at the
banks based on the actual operational needs of the foreign