Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 171

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 171
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 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. 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 and may not be used for investments
in securities or other investment with the exception of bank financial products that can guarantee the principal within the PRC unless
otherwise specifically provided. Besides, the converted Renminbi shall not be used to make loans for related enterprises unless it is
within the business scope or to build or to purchase any real estate that is not for the enterprise own use with the exception for the
real estate enterprise.

On January 26, 2017, SAFE promulgated the Circular
on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, or SAFE Circular
3, which stipulates several capital control measures with respect to the outbound remittance of profits from domestic entities to offshore
entities, including (i) banks must check whether the transaction is genuine by reviewing board resolutions regarding profit distribution,
original copies of tax filing records and audited financial statements, and (ii) domestic entities must retain income to account for previous
years’ losses before remitting any profits. Moreover, pursuant to SAFE Circular 3, domestic entities must explain in detail the
sources of capital and how the capital will be used, and provide board resolutions, contracts and other proof as a part of the registration
procedure for outbound investment.

Regulations on Foreign Exchange Registration
of Overseas Investment by PRC Residents

SAFE issued the Circular on Relevant Issues Relating
to Domestic Resident’s Investment and Financing and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37,
which became effective in July 2014, to replace the Circular of the State Administration of Foreign Exchange on Issues Concerning the
Regulation of Foreign Exchange in Equity Finance and Roundtrip Investments by Domestic Residents through Offshore Special Purpose Vehicles,
to regulate foreign exchange matters in relation to the use of special purpose vehicles, or SPVs, by PRC residents or entities to seek
offshore investment and financing or conduct round trip investment in China. SAFE Circular 37 defines a SPV as an offshore entity established
or controlled, directly or indirectly, by PRC residents or entities for the purpose of seeking offshore financing or making offshore investment,
using legitimate on