Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 30

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 30
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 incur liabilities
that are not covered by insurance.

While we seek to maintain
appropriate levels of insurance, not all claims are insurable and we may experience major incidents of nature that are not covered by
insurance. We provide social security insurance including pension, medical insurance, unemployment insurance, maternity insurance, on-the-job
injury insurance and housing fund plans through a PRC government-mandated benefit contribution plan for our employees. We do not carry
any key-man life insurance, product liability, Directors and Officers Insurance and professional liability insurance. Even if we purchase
these kinds of insurance, the insurance may not fully protect us from the financial impact of defending against product liability or professional
liability claims. We have not purchased any property insurance or business interruption insurance. We have determined that the costs of
insuring for related risks and the difficulties associated with acquiring such insurance on commercially reasonable terms make it impractical.
We consider our insurance coverage to be sufficient for our business operations in China. We maintain an amount of insurance protection
that we believe is adequate, but there can be no assurance that such insurance will continue to be available on acceptable terms or that
our insurance coverage will be sufficient or effective under all circumstances and against all liabilities to which we may be subject.
If we were to incur substantial losses or liabilities due to fire, explosions, floods, other natural disasters or accidents or business
interruption, our results of operations could be materially and adversely affected. We could, for example, be subject to substantial claims
for damages upon the occurrence of several events within one calendar year. In addition, our insurance costs may increase over time in
response to any negative development in our claims history or due to material price increases in the insurance market in general.

Leakage or misappropriation
of know-how, confidential information and trade secrets from unauthorized copying, use or disclosure could have an adverse impact on our
reputation and operations.

During the course of
providing our services, we may have access to and be entrusted with information that is confidential in nature, such as information that
relates to our customers’ systems, operations, raw data or affairs. While we have adopted measures to protect the confidentiality
of our customers’ information, including our internal control manual and the nondisclosure arrangements with our employees, there
is no assurance that the steps taken by us will successfully prevent any leakage or misappropriation of confidential information of our
customers. Any leakage or misappropriation of confidential information of our customers could expose