Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 224

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 224
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RS 16 Leases requires lessees to recognize
assets and liabilities for most leases based on a ‘right-of-use model’ which reflects that, at the commencement date, a lessee
has a financial obligation to make lease payments to the lessor for its right to use the underlying asset during the lease term. The lessor
conveys that right to use the underlying asset at lease commencement, which is the time when it makes the underlying asset available for
use by the lessee.

IFRS 16 defines a lease term as the
non-cancellable period for which the lessee has the right to use an underlying asset including optional periods when an entity is reasonably
certain to exercise an option to extend (or not to terminate) a lease.

Under IFRS 16 lessees may also elect
not to recognize assets and liabilities for leases with a lease term of 12 months or less. In such cases a lessee recognizes the lease
payments in profit or loss on a straight-line basis over the lease term. The exemption is required to be applied by class of underlying
assets. Lessees can also make an election for leases for which the underlying asset is of low value. This election can be made on a lease-by-lease
basis. For leases where the Group is the lessee, the lease term is either cancelable or no longer than 12 months, so the Group has elected
not to record the leased assets.

Lessor accounting under IFRS 16 is substantially
unchanged from IAS 17. Lessors continue to classify leases as either operating or finance leases using similar principles as in IAS 17.
IFRS 16 did not have any significant impact on leases where the Group is the lessor.

Leasehold improvements

Leasehold improvements, principally
comprising costs of office buildings and shops renovation, are held for administrative and selling purposes. Leasehold improvements are
initially measured at cost and amortized systematically over its useful life.

F-15

Property, plant and equipment

Property, plant and equipment (“ PPE”)
including buildings held for use in the production or supply of goods or services, or for administrative purposes other than construction
in progress are stated at cost less subsequent accumulated depreciation and accumulated impairment losses.

Depreciation is provided to write off
the cost of items of property, plant and equipment other than construction in progress over their estimated useful lives and after taking
into account of their estimated residual value, using the straight-line