Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 221

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 221
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 sell the tickets even lower than the purchase
price to avoid further loss. Thus, the Company bears the inventory risks of the air-tickets and the Company has discretion in setting
the price for the specified service. Once the air-tickets issued to passengers according to the client’s instruction, the revenue
is recognized. In addition to the air-ticket of airline companies, the Company provided guaranteed flight replacement and cancellation
to the air-ticket agency companies. The air-ticket agency companies can return the tickets to the Company without restriction, while the
airline companies can accept some of the return on certain conditions. Thus, the Company offered additional service plus the standard
airline tickets to its customer. As the Company (i) bears the inventory risks of the air-tickets, (ii) provides additional services on
the services procured by the airline companies, and (iii) has discretion in setting the price for the specified service, the Company is
considered as a principal and recognize the revenue in a gross basis.

Other income

Interest income is recognized on an
accrual basis using the effective interest method by applying the rate that exactly discounts the estimated future cash receipts over
the expected life of the financial instrument or a shorter period, when appropriate, to the net carrying amount of the financial asset.

Government grants are recognised as
a receivable when there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

When the grant relates to an expense
item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, the fair value is recognised as deferred income on the statement of financial position
and is recognised as income in equal amounts over the expected useful life of the related asset.

When loans or similar assistance are
provided by governments or related institutions with an interest rate below the current applicable market rate, the effect of this favourable
interest is regarded as additional government grant.

Value added tax (VAT)

Current standard Output VAT in effect
is13% and6% of product sales and taxable services revenue, respectively, according to existing tax laws. The remaining balance of output
VAT, after subtracting the deductible input VAT of the period, is VAT payable.

  Type of revenue        Standard VAT rate in effect for revenues          
 ───────────────────────────────────────────────────────────────────────────
  Product sales                                                        13  
  Services rendered                                                     6  

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