Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 231

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 231
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 the respective carrying amounts is recognized in the income statement.

F-21

Financial instruments - offsetting
financial instruments

Financial assets and financial liabilities
are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

Capital and Reserves

Share capital represents the nominal
value of shares that have been issued by the Group. Share capital is determined using the nominal value of shares that have been issued.

Retained profits include all current
and prior period results as determined in the combined statement of comprehensive income.

Foreign currency translation reserve
arising on the translation are included in the currency translation reserve.

In accordance with the relevant laws
and regulations of PRC, the subsidiaries of the Group established in PRC are required to transfer
10
% of its annual statutory net profit
(after offsetting any prior years’ losses) to the statutory reserve. When the balance of such reserve reaches
50
% of the subsidiary’s
share capital, any further transfer of its annual statutory net profit is optional. Such reserve may be used to offset accumulated losses
or to increase the registered capital of the subsidiary subject to the approval of the relevant authorities. However, except for offsetting
prior years’ losses, such statutory reserve must be maintained at a minimum of
25
% of the share capital after such usage. The statutory
reserves are not available for dividend distribution to the shareholders.

All transactions with owners of the
Group are recorded separately within equity.

Profit/(loss) per share

Basic earnings per share (“ EPS”)
are computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during
the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised
or converted into common shares. Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their
effect would be anti-dilutive.

F-22

  SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES  

The preparation of financial statements
in conformity with IFRS requires management to exercise judgment in the process of applying the Group’s accounting policies and
requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of financial statements and reported