Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 124

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 124
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 2022 achieved
99% and 97% respectively. The high gross profit ratio was due to the reason that most of the revenue in 2023 and 2022 of this sub-segments
was contributed to self-developed cross-board related software sold to customers and the developing costs of the software was recorded
as general and administrative expenses in 2023 or prior years.

Administrative expenses

Administrative expenses decreased by $0.2 million or 12% to $1.8 million
for the year 2024 from $2.1 million for the year 2023. The change was mainly due to the Company cut down external service fee by $0.2
million, from $0.5 million in 2023 to $0.3 million in 2024.

Administrative expenses decreased by $54.0 million or 96% to $2.1 million
for the year 2023 from $56.0 million for the year 2022. The change was mainly due to the Company’s share-based compensation paid
to employees, officers and directors of the company in year 2022, which was $53.3 million in 2022 compared to $nil million in 2023, representing
a decrease of $53.3 million.

Distribution and selling expenses

The distribution and selling expenses increased by $2.6 million or
4396% to $2.6 million for the year 2024 from $0.1 million for the year ended December 31, 2023, primarily due to the reason that (i) the
Company conducted a few exhibition events during year 2024 to promote its cross-board merchandised goods, which cost around $0.8 million
in 2024, and (ii) the Company purchased several distribution rights of imported cosmetics, which resulted in an amortization expenses
of $1.8 million in 2024.

The distribution and selling expenses decreased by $0.6 million or
92% to $0.1 million for the year ended December 31, 2023 from $0.7 million for the year ended December 31, 2022, primarily due to the
reason that the Company outsourced certain sales functions to third parties till the middle of 2022, while since then, the Company fully
executed the sales functions by its own team, which reduced the outsourced expenses significantly.

Profit for the year

We had a profit of $3.0