Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 251

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 251
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 receivables, cash and cash equivalents, trade and other payables, related parties
payables and short-term loans. Details of these financial instruments are disclosed in the respective notes. The risks associated with
these financial instruments include credit risk, market risk (interest rate risk and currency risk) and liquidity risk. The policies on
how to mitigate these risks are set out below. The management manages and monitors these exposures to ensure appropriate measures are
implemented on a timely and effective manner.

  Market risk  

  (i)      Foreign currency risk  

While our reporting currency is the U. S.
dollar, substantially all of our consolidated revenues and consolidated costs and expenses are denominated in RMB. Substantially all of
our assets are denominated in RMB. As a result, we are exposed to foreign exchange risk as our revenues and results of operations may
be affected by fluctuations in the exchange rate between the U. S. dollar and the RMB. If the RMB depreciates against the U. S. dollar,
the value of our RMB revenues, earnings and assets as expressed in our U. S. dollar financial statements will decline. Assets and liabilities
are translated at exchange rates at the balance sheet dates and revenue and expenses are translated at the average exchange rates and
equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income but
are included in determining other comprehensive income, a component of equity. As of December 31, 2024, our accumulated other comprehensive
loss was $1.0million. We have not entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk.

F-41

  (ii)      Interest rate risk  

We deposit surplus funds with Chinese
banks earning daily interest. We do not invest in any instruments for trading purposes. Most of our outstanding debt instruments carry
fixed rates of interest. Our operations generally are not directly sensitive to fluctuations in interest rates and we currently do not
have any long-term debt outstanding. Management monitors the banks’ prime rates in conjunction with our cash requirements to determine
the appropriate level of debt balances relative to other sources of funds. We have not entered into any hedging transactions in an effort
to reduce our exposure to interest rate risk.

  Credit risk  

As at December 31, 2024, the Group’s
maximum exposure to credit risk which will cause a financial loss to the Group due to failure to perform an obligation by the counterparties
is