Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 37

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 37
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 nature, magnitude and duration of
the Russia-Ukraine war could lead to significant disruptions in the global economy. The uncertain
nature, magnitude and duration and the full economic effect of these events cannot be estimated, but this may impact businesses
across the globe both in the short term and the long term with rising commodity prices and demand, rising interest costs to counter inflationary
conditions and loss in value of currencies.

Such uncertainty may also limit the access of
our PRC subsidiaries to new business opportunities, negatively impacting our PRC subsidiaries’ operations. The current and potential
future actions by the U. S. or the PRC that affect trade relations could contribute to global economic instability, which may harm our
PRC subsidiaries’ business or financial performance. There have also been concerns on the
relationship among China and other Asian countries, which may result in or intensify potential conflicts in relation to territorial disputes.
Economic conditions in China are sensitive to global economic conditions, as well as changes in domestic economic and political policies
and the expected or perceived overall economic growth rate in China. Any severe or prolonged slowdown in the global or Chinese economy
may materially and adversely affect our business, results of operations and financial condition. Any severe or prolonged slowdown
in the global or PRC economy may materially and adversely affect our business, results of operations and financial condition.

Our financial performance could be materially and adversely affected
by rising costs associated with inflation and the imposition of U. S. tariffs on imports from China.

Our business is susceptible to the effects of inflation, which can
lead to higher costs of our operations. If the overall price level in the economy increases, our operating expenses are expected to increase
as well, potentially impacting on our profitability, particularly in the airline reselling business.

Furthermore, recent trade policies enacted by
the U. S. have imposed tariffs on a range of goods imported from China. These tariffs directly increase the cost of our products upon entry
into the United States, leading to a rise in our cost of goods sold. This increased cost may necessitate us raising prices for our U. S.
customers, which could negatively impact the competitiveness of our products compared to those manufactured domestically in the U. S. or
imported from countries not subject to these tariffs.

The future of these tariff policies and their
wider impact on inflation are uncertain. The duration and scope of these measures, as well as potential responses from other countries,
could significantly influence our business. We cannot predict the ultimate consequences of these developments,