Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 11

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 11
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 private label brands developed by retailers. Our ability to gain or maintain share of sales in the global marketplace or in
various local marketplaces or maintain or enhance our relationships with our partners and customers may be limited as a result of actions
by competitors, including as a result of increased consolidation in the maca products industry.

26

Changes
in the maca products environment and retail landscape could impact our financial results.

The
maca products environment is rapidly evolving as a result of, among other things, changes in consumer preferences; shifting consumer
tastes and needs; changes in consumer lifestyles; and competitive product and pricing pressures. In addition, the maca products retail
landscape is dynamic and constantly evolving, not only in emerging and developing marketplaces, where modern trade is growing at a faster
pace than traditional trade outlets, but also in developed marketplaces, where discounters and value stores, as well as the volume of
transactions through e-commerce, are growing at a rapid pace. If we are unable to successfully adapt to the rapidly changing environment
and retail landscape, our share of sales, volume growth and overall financial results could be negatively affected.

Our
business, growth and profitability depend on the performance of third-parties and our relationship with them.

In
connection with the distribution of maca products, we rely on third-party suppliers and manufacturing partners to provide high quality
maca products. We also rely on our manufacturing partners to provide us with additional manufacturing and facilitate distribution efforts
throughout China. Our reliance on third-party suppliers and manufacturing partners subjects us to additional risks, including the possible
termination of the arrangement by a third-party suppliers or manufacturing partner at a time that is costly or inconvenient for us. Our
third-party suppliers and manufacturing partners are independent entities subject to their own unique operational and financial risks
that are out of our control. If any of these third-party suppliers or manufacturing partners fail to perform as required, this could
cause delays in our receipt of the maca products or otherwise adversely affect our business.

In
addition, a significant portion of our distribution network, and correspondingly our success in distributing our maca products, depends
on the performance of third-parties. Any non-performance or deficient performance by such parties may undermine our operations and profitability.
For distribution of our maca products, we typically rely on third party distribution networks, including freight companies and common
carriers. The success of these distribution networks depends on the performance of brokers, distributors, common carriers and retailers,
as well as our