Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 133

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 133
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 funds
and staff bonus and welfare funds at their discretion, and may allocate a portion of their after-tax profits based on PRC accounting standards
to a discretionary surplus fund at their discretion. The statutory reserve funds and the discretionary funds are not distributable as
cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated
by SAFE. Our PRC subsidiaries have not paid dividends and will not be able to pay dividends until they generate accumulated profits and
meet the requirements for statutory reserve funds.

Inflation

Inflation and changing prices have not had a material effect on our
business, and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future. However,
our management will closely monitor price changes in the Chinese economy and the apparel industry and continually maintain effective cost
controls in operations.

Seasonality

Our business, like that of many retailers, is seasonal. Historically,
we have realized more of our revenue and earnings in the fourth quarter, which includes the majority of the holiday shopping season, than
in any other fiscal quarter.

Critical Accounting Policies

The preparation of financial statements is in
conformity with IFRS as issued by the IASB. It requires the Company’s management to make assumptions, estimates and judgments that
affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. The Company
has identified certain accounting policies that are significant to the preparation of Company’s financial statements. These accounting
policies are important for an understanding of the Company’s financial condition and results of operation. Critical accounting policies
are those that are most important to the portrayal of the Company’s financial condition and results of operations and require management’s
difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently
uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance
to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s
current judgments. The Company believes the following critical accounting policies involve the most significant estimates and judgments
used in the preparation of the Company’s financial statements.

Revenue recognition

Revenue from contracts with customers

Revenue from contracts with customers is recognized
when control of goods or services is transferred to the customers at an amount that reflects the consideration to which the Company expects
to be entitled in exchange for those goods or services