Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 225

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 225
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 method.

Construction in progress includes property,
plant and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost
less any recognized impairment loss. Construction in progress is classified to the appropriate category of property, plant and equipment
when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the
assets are ready for their intended use.

An item of property, plant and equipment
is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain
or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount
of the item) is included in profit or loss in the period in which the item is de-recognized.

Intangible assets, net

Intangible assets are recognized and
measured at cost or at fair value if acquired through a business combination. The identifiable intangible assets acquired are amortized
on a straight-line basis over the respective useful lives as follows:

  Category                  Estimated useful lives  
 ────────────────────────────────────────────────────
  Software                  5 years                 
  Trademark use rights      1 - 5 years             

Inventories

Inventories, comprising of raw materials
and merchandise inventories, are stated at the lower of cost and net realizable value. Costs of inventories are determined using the weighted
average method. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and
costs necessary to make the sale.

F-16

Cash and cash equivalents

Cash and cash equivalents includes cash
on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three
months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Share-based compensation expenses

All share-based awards granted to employees,
which are common shares, are measured at fair value on shares issuance date, and are recognized as an employee benefits expense, with
a corresponding increase in equity. Share-based compensation expenses are recognized over the period during which the employees provide
the relevant services.

Financial instruments - investments
and other financial assets

Initial recognition and
measurement

Financial assets are classified, at
initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income, and