Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 119

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 119
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ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following
discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited consolidated
financial statements and the related notes included in this annual report and in particular, “ Item 4. Information on the Company
 - B. Business Overview.” This discussion contains forward-looking statements that involve risks and uncertainties. Our actual
results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result
of various factors, including those set forth under “ Item 3. Key Information - D. Risk Factors” and elsewhere in this
Annual Report prepared our consolidated financial statements in accordance withInternational Financial Reporting Standards as
issued by the International Accounting Standards Board.

A. Operating Results

Our operating results are primarily affected by
the following factors:

  Our                                                                                                                                            

  Flexibility and sustainability of our product supply chain. Our success largely depends on our ability to consistently gauge customers’ tastes and market trends, provide a balanced assortment o...  

  The ability to develop, upgrade and apply our technologies to support and expand our business. We rely on our technology infrastructure and operating systems to carry out the key aspects of our...  
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Financial Statement Presentation

In December 2020, the Company acquired Flower Crown, which at the time,
contributed two new segments, tourism cross-border merchandize sales and tourism. Flower Crown add Technology Solution for Tourism Cross-border
operation segment in 2022. In October 2022, the Company disposed the whole menswear business segment, which was presented as discontinued
operation as set out below.

During 2024, the Company expanded its business operations in cross
board merchandize segment, focusing on wholesale trade sector and specializing in duty-free and cross-border consumer goods. We also continue
providing integrated solutions in wholesale trade, including logistics, supply chain management, and technology solutions to support the
efficient distribution of tourism-related products.

Revenue. During the periods covered by this section, we
generated revenue from a) sales of tourism cross-border merchandize, b) sales of Software, and c) tourism products, which covers tourism
package and airline ticket sale (including related services).

Cost of sales. Cost of sales for non-menswear business
primarily consisted of (a) the purchased costs