Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 33

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 33
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 that are in the “negative list”, as the “negative list” may be amended from
time to time.

We may rely on dividends paid by our PRC
subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiaries to make
payments to us could have a material and adverse effect on our ability to conduct our business. To
the extent funds or assets in the business are in the PRC or are held by a PRC entity, the funds or assets may not be available to fund
operations or for other use outside of the PRC due to interventions in or the imposition of restrictions and limitations on the ability
of our company or the operating entities by the PRC government to transfer cash or assets outside the PRC.

Under our current corporate structure, we rely
principally on dividends and other distributions of equity from our PRC subsidiaries for our cash requirements, including for services
of any debt we may incur. We have no direct business operations other than the ownership of our subsidiaries. While we have no current
intention of paying dividends, should we decide in the future to do so, as a holding company, our ability to pay dividends and meet other
obligations depend upon the receipts of dividends or other payments from our operating subsidiaries, other holdings, and investments.

The PRC rules and regulations impose restrictions
and limitations on transfer of cash on foreign exchange, our ability to transfer cash between entities, across borders and to U. S. investors,
and our ability to distribute earnings from our subsidiaries to the Company and holders of the common stock of the Company. Our PRC subsidiaries’
ability to distribute dividends is based upon their distributable earnings. Current PRC regulations permit our PRC subsidiaries to pay
dividends to their respective shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting
standards and regulations. In addition, each of our PRC subsidiaries, as a Foreign Invested Enterprise, or FIE, are required to draw 10%
of its after-tax profits each year, if any, to fund a common reserve, which may stop drawing its after-tax profits if the aggregate balance
of the common reserve has already accounted for over 50 percent of its registered capital. These reserves are not distributable as cash
dividends. If our PRC subsidiaries incur debt on their own behalf in the future, the instruments governing the debt may restrict their
ability to pay dividends or make