Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 177

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 177
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 such review process, including structuring
the transaction through a proxy or contractual control arrangement, are strictly prohibited. There is significant uncertainty regarding
the interpretation and implementation of these regulations relating to merger and acquisition activities in China. In addition, complying
with these requirements could be time-consuming, and the required notification, review or approval process may materially delay or affect
our ability to complete merger and acquisition transactions in China. As a result, our ability to seek growth through acquisitions may
be materially and adversely affected. In addition, if the MOFCOM determines that we should have obtained its approval for our entry into
contractual arrangements with the affiliated entities, we may be required to file for remedial approvals. There is no assurance that
we would be able to obtain such approval from the MOFCOM. We may also be subject to administrative fines or penalties by the MOFCOM that
may require us to limit our business operations in the PRC, delay or restrict the conversion and remittance of our funds in foreign currencies
into the PRC or take other actions that could have material and adverse effect on our business, financial condition and results of operations.

33

PRC
regulation of loans and direct investment by offshore holding companies to PRC entities may delay or prevent us from making loans or
additional capital contributions to the PRC Subsidiaries and affiliated entities, which could harm our liquidity and our ability to fund
and expand our business.

CIMG
is a Nevada corporation conducting part of its operations in China through its PRC and Hong Kong subsidiaries. CIMG may make loans to
the Hong Kong PRC Subsidiaries subject to the approval from governmental authorities and limitation of amount, or may make additional
capital contributions to subsidiaries in China.

Any
loans to the subsidiaries in China are subject to foreign investment and are under PRC regulations and foreign exchange loan registrations.
For example, loans by us to the wholly foreign-owned subsidiaries or VIE entities in China to finance their activities must be registered
with the local counterpart of SAFE. In addition, a foreign invested enterprise shall use its capital pursuant to the principle of authenticity
and self-use within its business scope. The capital of a foreign invested enterprise shall not be used for the following purposes: (i)
directly or indirectly used for payment beyond the business scope of the enterprises or the payment prohibited by relevant laws and regulations;
(ii) directly or indirectly use for investment in securities or investments other than banks’ principal-secured products unless
otherwise provided by relevant laws