Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 32

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 32
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 authorities may impose severe penalties retroactively. If we were subject to severe penalties retroactively, the relevant
PRC regulatory authorities would have broad discretion to take action in dealing with such violations and failures, including:

  discontinuing                                                     

  imposing                                                                                                                               
  fines, confiscating the income from our PRC subsidiaries, or imposing other requirements with which we or our PRC entities may not be  
  able to comply;                                                                                                                        
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  restricting                                                                                                           

Any of these actions
could cause significant disruption to our business operations and severely damage our reputation, which would in turn materially and adversely
affect our business, financial condition and results of operations.

Our current corporate
structure and business operations may be affected by the Foreign Investment Law.

On March 15, 2019, the
National People’s Congress approved the Foreign Investment Law, which came into effect on January 1, 2020. Along with the Foreign
Investment Law, the Implementing Rules of Foreign Investment Law promulgated by the State Council and the Interpretation of the Supreme
People’s Court on Several Issues Concerning the Application of the Foreign Investment Law promulgated by the Supreme People’s
Court became effective on January 1, 2020. Since the Foreign Investment Law and its current implementation and interpretation rules are
relatively new, uncertainties still exist in relation to their further application and improvement.

The Foreign Investment
Law grants national treatment to foreign-invested entities, except for those foreign-invested entities that operate in industries specified
as either “restricted” or “prohibited” from foreign investment in a “negative list”. It is unclear
whether the “negative list” to be published pursuant to the Foreign Investment Law will differ from the current Special Administrative
Measures for Market Access of Foreign Investment (Negative List) (2021 Version). The Foreign Investment Law provides that foreign-invested
entities operating in “restricted” industries will require market entry clearance and other approvals from relevant PRC government
authorities. As of the date hereto, the current business activities of our PRC subsidiaries are not within the “negative list”,
and foreign investors are allowed to hold 100% equity interests of our PRC subsidiaries under the Foreign Investment Law. We have no plans
at the present to substantially change our PRC subsidiaries’ business activities in the future. However, it’s uncertain whether
we will engage in business activities