Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 34

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 34
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 other payments to us.

Currently, our subsidiaries
in China are the only sources of revenues or investment holdings for the payment of dividends. If they do not accumulate sufficient profits
under Chinese accounting standards and regulations to satisfy certain reserve funds as required by the Chinese accounting standards, we
will be unable to pay any dividends. Any limitation on the ability of our PRC subsidiaries to distribute dividends or other payments to
their respective shareholders could materially and adversely limit our ability to grow, make investments or acquisitions that could be
beneficial to our business, pay dividends or otherwise fund and conduct our business. To the extent cash or assets in the business is
in the PRC/Hong Kong or a PRC/Hong Kong entity, the funds or assets may not be available to fund operations or for other use outside of
the PRC/Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability of you and your subsidiaries
by the PRC government to transfer cash or assets.

After-tax profits/losses with respect to the payment
of dividends from accumulated profits and the annual appropriation of after-tax profits as calculated pursuant to the Chinese accounting
standards and regulations do not result in significant differences as compared to after-tax earnings as presented in our financial statements.
However, there are certain differences between PRC accounting standards and regulations and IFRS, arising from different treatment of
items such as amortization of intangible assets and change in fair value of contingent consideration rising from business combinations.

Holders of our
securities may face difficulties in protecting their interests because we are incorporated under the Republic of the Marshall Islands
law.

We are a company
incorporated under the laws of the Marshall Islands. Holders of shares of our common stock do not own equity securities of our
subsidiaries that have substantive business operations in China, but instead are holders of equity securities of a Marshall Islands
holding company. Such a structure involves unique risks to investors holding shares of our common stock. Although we own and control
our PRC operating subsidiaries, investors holding shares of our common stock may never hold equity interests directly in our
operating entities. Chinese regulatory authorities could disallow this holding company structure, which would likely result in a
material change in our operations and/or a material change in the value of our securities, including that it could cause the value
of our securities to significantly decline or become worthless. In addition, almost all of our assets are located outside the United
States, and majority of our directors and officers