Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 54

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 54
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 accordance with the PRC Laws.

Increases in labor costs and enforcement
of stricter labor laws and regulations in China and our additional payments of statutory employee benefits may adversely affect our business
and profitability. Non-compliance with labor-related laws and regulations of the PRC may have an adverse impact on our financial condition
and results of operation.

The average wage in China has increased in recent
years and is expected to continue to grow. The average wage level for our employees has also increased in recent years. We expect that
our labor costs, including wages and employee benefits, will continue to increase. Unless we are able to pass on these increased labor
costs to our customers, our profitability and results of operations may be materially and adversely affected. In addition, we e have been
subject to stricter regulatory requirements in terms of entering into labor contracts with our employees and paying various statutory
employee benefits, including pensions, housing fund, medical insurance, work-related injury insurance, unemployment insurance and childbearing
insurance to designated government agencies for the benefit of our employees. Pursuant to the PRC Labor Contract Law, or the Labor Contract
Law, that became effective in January 2008 and its implementing rules that became effective in September 2008 and was amended in July
2013, employers are subject to stricter requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining
the term of employees’ probation and unilaterally terminating labor contracts. In the event that we decide to terminate some of
our employees or otherwise change our employment or labor practices, the Labor Contract Law and its implementation rules may limit our
ability to effect those changes in a desirable or cost-effective manner, which could adversely affect our business and results of operations.
We believe our current practice complies with the Labor Contract Law and its amendments. However, the relevant governmental authorities
may take a different view and impose fines on us.

As the interpretation and implementation of labor-related
laws and regulations are still evolving, we cannot assure you that our employment practice does not and will not violate labor-related
laws and regulations in China, which may subject us to labor disputes or government investigations. If we are deemed to have violated
relevant labor laws and regulations, we could be required to provide additional compensation to our employees and our business, financial
condition and results of operations could be materially and adversely affected.

Failure to make adequate contributions to various
employee benefit plans and withhold individual income tax on employees’ salaries as required by PRC regulations may subject us to
pen