Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 31

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 31
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 us to complaints or claims, which
may materially and adversely affect our reputation and business operations. In addition, we seek to protect our know-how, confidential
information and trade secrets, in part, by entering into non-disclosure and confidentiality agreements or other means to such effect,
with parties who have access to them, such as our employees. Despite these efforts, any of these parties may breach such agreements, intentionally
or unintentionally and disclose our proprietary information and we may not be aware of or able to obtain adequate remedies for such breaches.
The unauthorized disclosure and/or misappropriation of trade secrets is difficult to detect and/or to prove. As such, it is difficult,
expensive and time-consuming to establish trade secret misappropriation claims, with no guarantee of success or adequate remedies. Such
disclosures could also lead to a loss of trade secret protection, which could materially and adversely affect our business, competitive
position, financial conditions and results of operations.

Risks Related to Our Corporate
Structure

We previously carried
out our business operations through the VIE contractual arrangements. If the PRC government determines that these contractual arrangements
did not comply with PRC regulations relating to the relevant industries, or if these regulations or the interpretation of existing regulations
change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations.

Prior to December 13, 2021, we carried our business
operations through contractual relationships using a variable interest structure (“ VIE”). As of December 13, 2021, we reorganized
our corporate subsidiary structure in the PRC under Flower Crown Holding (“ FLH”). As a result of the FLH’s China subsidiaries
restructuring, we terminated the original VIE contractual agreements and we areno longer
operate those entities through a VIE structure. As part of the restructuring, due to the restriction of foreign ownership by the relevant
laws and regulations of the People’s Republic of China, namely Provisions on Administration of Foreign Invested Telecommunications
Enterprise (外商投资电信企业管理规定), we divested FCEC under
a Shares Transfer Agreement with a third party. FCEC represented less than 5% of our total revenues.

However, even though
we terminated the original VIE contractual agreements, there are still substantial uncertainties regarding the interpretation and application
of current and future PRC laws, regulations and rules in respect of our previous use of the variable interest entity structure; accordingly,
the PRC regulatory