Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 44

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 44
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 could result in a material adverse change in our operations
and the value of our Common Stock.

The recent
joint statement by the SEC and the Public Company Accounting Oversight Board (the “ PCAOB”), rule changes by Nasdaq, and the
Holding Foreign Companies Accountable Act and related regulations, all call for additional and more stringent criteria to be applied to
emerging market companies upon assessing the qualification of their auditors, especially the non-U. S. auditors who are not inspected by
the PCAOB. These developments could add uncertainties to our continued listing on Nasdaq Capital Market or future offerings of our securities
in the U. S. and could result in a material adverse change in our operations and the value of our Common Stock, significantly limit or
completely hinder our ability to offer or continue to offer securities to investors and cause such securities to significantly decline
in value or become worthless.

On April
21, 2020, SEC Chairman Jay Clayton and PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement
highlighting the risks associated with investing in companies based in or have substantial operations in emerging markets including China.
The joint statement emphasized the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China
and higher risks of fraud in emerging markets.

On May 18, 2020, Nasdaq
filed three proposals with the SEC to (i) apply a minimum offering size requirement for companies primarily operating in a “ Restrictive
Market,” (ii) adopt a new requirement relating to the qualification of management or the board of directors for Restrictive Market
companies, and (iii) apply additional and more stringent criteria to an applicant or listed company based on the qualifications of the
company’s auditor. On October 4, 2021, the SEC approved Nasdaq’s revised proposal for the rule changes.

On May 20, 2020, the
U. S. Senate passed the Holding Foreign Companies Accountable Act (“ HFCAA”), and on December 18, 2020, the HFCAA was signed
into law. On March 24, 2021, the SEC adopted interim final rules relating to the implementation of certain disclosure and documentation
requirements of the HFCAA. The HFCAA, among other things, directs the SEC to prohibit trading on U. S. stock exchanges and in the U. S.
over-the-counter markets the securities of foreign-based companies if their financial