Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 111

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 111
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-invested enterprise. Furthermore, the SAFE Circular 19 stipulates that the
use of capital by foreign-invested enterprises shall follow the principles of authenticity and self-use within the business scope of enterprises.

On June 9, 2016, SAFE promulgated the Circular
on Reforming and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts (the “SAFE Circular
16”), which came into effect on the same day. Pursuant to the SAFE Circular 16, enterprises registered in the PRC may also convert
their foreign debts from foreign currency to Renminbi on self-discretionary basis. The SAFE Circular 16 provides an integrated standard
for conversion of foreign exchange under capital account items (including but not limited to foreign currency capital and foreign debts)
on self-discretionary basis which applies to all enterprises registered in the PRC. The SAFE Circular 16 reiterates the principle that
Renminbi converted from foreign currency-denominated capital of a company may not be directly or indirectly used for purposes beyond its
business scope or prohibited by PRC laws.

On October 23, 2019, SAFE issued the Circular
on Further Promoting the Facilitation of Cross- border Trade and Investment (the “SAFE Circular 28”), which came into
effect on the same day. The SAFE Circular 28 allows all foreign-invested enterprises to make equity investment in the PRC using their
capital, with genuine investment projects and subject to compliance with the negative list. As of the date of this Annual Report, its
interpretation and implementation in practice are still subject to substantial uncertainties.

Regulations on Dividend Distribution

Distribution of dividends of foreign investment
enterprises are mainly governed by the Foreign Investment Enterprise Law, issued in 1986 and amended in 2000 and 2016, respectively, and
the Implementation Rules under the Foreign Investment Enterprise Law, issued in 1990 and amended in 2001 and 2014, respectively. Under
these regulations, foreign investment enterprises in the PRC may distribute dividends only out of their accumulative profits, if any,
determined in accordance with PRC accounting standards and regulations. In addition, no less than 10% of the accumulated profits of the
foreign investment enterprises in the PRC are required to be allocated to fund certain reserve funds each year unless these reserves have
reached 50% of the registered capital of the enterprises. A PRC company is not permitted to distribute any profits until any losses from