Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 181

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 181
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 for their employees, such contribution amount payable shall be calculated based on the
employee’s actual salary in accordance with the relevant regulations. In case the employer fails to make sufficient payment of
the social insurance, it may be subject to fine up to 3 times of the insufficient amount and pay late fees. If the employer failed to
register with relevant housing provident fund management center or failed to open special housing provident fund accounts for the employees
within the ordered time limit, a fine of not less than RMB10,000 nor more than RMB50,000 may be imposed. In addition, if the employer
fails to pay sufficient contributions to housing provident fund as required, the housing provident fund management center shall order
it to make the payment and deposit within a prescribed time limit; where the payment has not been made after the expiration of the time
limit, the housing provident fund management center may request the people’s court for compulsory enforcement. On July 20, 2018,
the General Office of the Communist Party of China and the General Office of the State Council jointly issued the Reform Plan on Tax
Collection and Administration Systems for Local Offices of the State Administration of Taxation and Local Taxation Bureaus, according
to which the collection and administration of social insurance will be transferred from the social insurance departments to competent
tax authorities, and the supervision over the payment of social insurance will be significantly strengthened in the way that an enterprise
must pay social insurance for its employees based on their overall salary at certain legally required rates. If we are fined due to insufficient
payment of the social insurance and housing fund of the employees, our business operations could be materially and adversely affected.

35

You
may face difficulties in protecting your interests and exercising your rights as a stockholder of ours since we conduct part of our operations
in China and part of our officers and directors reside in China.

We
conduct part of our operations in China through Beijing Zhongyan, our subsidiary in China. Part of our current officers and directors
reside outside the United States and part of the assets of those persons are located outside of the United States. Because of this, it
may be difficult for you to conduct due diligence on our company, our executive officers or directors and attend stockholder meetings
if the meetings are held in China. As a result, our public stockholders may have more difficulty in protecting their interests through
actions against our management, directors or major stockholders than would stockholders of a corporation doing business entirely