Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 61

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 61
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 negative publicity involving U. S.-listed Chinese companies, we may have to expend significant resources to investigate
and resolve the matter which could harm our business operations, stock price and reputation, and could result in a loss of your investment
in our stock, especially if such matter cannot be addressed and resolved favorably.

In the past few years, U. S. publicly traded companies
that have substantially all of their operations in China, particularly companies like us have been the subject of intense scrutiny, criticism,
and negative publicity by investors, financial commentators, and regulatory agencies, such as the SEC. Much of the scrutiny, criticism,
and negative publicity has centered around financial and accounting irregularities and mistakes, lack of effective internal controls over
financial accounting, inadequate corporate governance policies or lack of adherence thereto and, in many cases, allegations of fraud.
As a result of the scrutiny, criticism, and negative publicity, the publicly traded stocks of many U. S. listed Chinese companies have
sharply decreased in value and, in some cases, have become virtually worthless. Many of these companies are now subject to shareholder
lawsuits and SEC enforcement actions, and are conducting internal and external investigations into the allegations. It is not clear the
effect of this sector-wide scrutiny, criticism, and negative publicity will have on our Company, our business, and our stock price. If
we become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we will have to expend
significant resources to investigate such allegations defending our Company. This situation will be costly, time consuming, and distract
our management from growing our company.

The disclosures in our reports and other
filings with the SEC and our other public pronouncements will not be subject to the scrutiny of any regulatory bodies in the PRC. Accordingly,
our public disclosure should be reviewed in light of the fact that no governmental agency that is in China where all of our operations
and business are located have conducted any due diligence on our operations or reviewed or cleared any of our disclosure.

Unlike public reporting companies whose operations
are located primarily in the United States, however, all of our operations are located in China. Since substantially all of our operations
and business takes place in China, it may be more difficult for the Staff of the SEC to overcome the geographic and cultural obstacles
that are present when reviewing our disclosure. These same obstacles are not present for similar companies whose operations or business
take place entirely or primarily in the United States. Furthermore, our SEC reports and