Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 41

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 41
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 investors, including you. In addition, any litigation in China may be protracted and result in substantial
costs and diversion of our resources and management attention.

We face challenges from the evolving PRC
regulatory environment regarding cybersecurity, information security, privacy and data protection, and user attitude toward data privacy
and protection. Any actual or alleged failure to comply with these and related laws and regulations regarding cybersecurity, information
security, data privacy, and protection could materially and adversely affect our business and results of operations.

Recently, the Chinese government initiated a series of regulatory actions
and made a number of public statements on the regulation of business operations in China. This included, among other actions, the adoption
of new measures to extend the scope of cybersecurity reviews, and the expansion of efforts in anti-monopoly enforcement. Because these
statements and regulatory actions are new, it is highly uncertain (a) how soon legislative or administrative regulation-making bodies
in China will respond to them, (b) what existing or new laws or regulations will be modified or promulgated, if any, or (c) what impact
such modified or new laws and regulations will have on the Company’s daily business operations or our ability to accept foreign
investments and continue listing our Common Stock on an U. S. securities exchange.

On August 20, 2021, the Standing Committee of
the National People’s Congress of China promulgated the Personal Information Protection Law of the People’s Republic of China,
effective from November 1, 2021. The Personal Information Protection Law requires, among others, that (i) the processing of personal information
should have a clear and reasonable purpose which should be directly related to the processing purpose, in a method that has the least
impact on personal rights and interests, and (ii) the collection of personal information should be limited to the minimum scope necessary
to achieve the processing purpose to avoid the excessive collection of personal information. Different types of personal information and
personal information processing will be subject to various rules on consent, transfer, and security. Entities handling personal information
shall bear responsibility for their personal information handling activities, and adopt necessary measures to safeguard the security of
the personal information they handle. Otherwise, the entities handling personal information could be ordered to correct, or suspend or
terminate the provision of services, and face confiscation of illegal income, fines or other penalties.

In the meantime, the PRC regulatory authorities
have also enhanced the supervision and regulation on cross-border data transfer. On July