{"url_path":"/sec/jxg/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1546383/0001213900-26-057231-index.html","accession_number":"0001213900-26-057231","cik":"0001546383","ticker":"JXG","issuer_name":"JX Luxventure Group Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1546383/0001213900-26-057231-index.html","primary_entity_key":"0001546383","primary_entity_name":"JX Luxventure Group Inc."},"word_count":528,"has_tables":true,"body_markdown":"**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES\nABOUT MARKET RISK**\n\n \n\n**Interest Rate Risk**\n\n \n\nWe deposit surplus funds with Chinese banks earning\ndaily interest. We do not invest in any instruments for trading purposes. Most of our outstanding debt instruments carry fixed rates of\ninterest. Our operations generally are not directly sensitive to fluctuations in interest rates and we currently do not have any long-term\ndebt outstanding. Management monitors the banks’ prime rates in conjunction with our cash requirements to determine the appropriate\nlevel of debt balances relative to other sources of funds. We have not entered into any hedging transactions in an effort to reduce our\nexposure to interest rate risk. \n\n \n\n**Foreign Exchange Risk**\n\n \n\nWhile our reporting currency is the U.S. dollar,\nsubstantially all of our consolidated revenues and consolidated costs and expenses are denominated in RMB. Substantially all of our assets\nare denominated in RMB. As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected\nby fluctuations in the exchange rate between the U.S. dollar and the RMB. If the RMB depreciates against the U.S. dollar, the value of\nour RMB revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline. Assets and liabilities are translated\nat exchange rates at the balance sheet dates and revenue and expenses are translated at the average exchange rates and equity is translated\nat historical exchange rates. Any resulting translation adjustments are not included in determining net income but are included in determining\nother comprehensive income, a component of equity. An average appreciation (depreciation) of the RMB against the U.S. dollar of 5% would\nincrease (decrease) our comprehensive income by $3.0 million based on our outstanding revenues, costs and expenses, assets and liabilities\ndenominated in RMB as of December 31, 2019. As of December 31, 2020, our accumulated other comprehensive loss was $(3.5) million. We have\nnot entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk.\n\n \n\nThe value of RMB against the U.S. dollar and other\ncurrencies is affected by, among other things, changes in China’s political and economic conditions. Since July 2005, RMB has not\nbeen pegged to the U.S. dollar. Although the People’s Bank of China regularly intervenes in the foreign exchange market to prevent\nsignificant short-term fluctuations in the exchange rate, RMB may appreciate or depreciate significantly in value against the U.S. dollar\nin the medium to long term. Moreover, it is possible that in the future, PRC authorities may lift restrictions on fluctuations in RMB\nexchange rate and lessen intervention in the foreign exchange market. \n\n \n\n**Inflation**\n\n \n\nInflationary factors such as increases in the\ncost of our product and overhead costs may adversely affect our operating results. Although we do not believe that inflation has had a\nmaterial impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse\neffect on our ability to maintain current levels of gross margin and selling, general and administrative expenses as a percentage of net\nrevenues if the selling prices of our products do not increase with these increased costs."}