Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 119

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 119
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 responsible for its foreign affairs and defense. As a separate customs territory,
Hong Kong maintains and develops relations with foreign states and regions. Based on certain recent development including the Law of the
People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region issued by the Standing
Committee of the PRC National People’s Congress in June 2020, the U.S. State Department has indicated that the United States no
longer considers Hong Kong to have significant autonomy from China and Former President Trump signed an executive order and Hong Kong
Autonomy Act (“HKAA”) to remove Hong Kong’s preferential trade status and to authorize the U.S. administration to impose
blocking sanctions against individuals and entities who are determined to have materially contributed to the erosion of Hong Kong’s
autonomy. The United States may impose the same tariffs and other trade restrictions on exports from Hong Kong that it places on goods
from mainland China. These and other recent actions may represent an escalation in political and trade tensions involving the U.S., China
and Hong Kong, which could potentially harm our business.

Given the relatively small
geographical size of Hong Kong, any of such incidents may have a widespread effect on our business operations, which could in turn adversely
and materially affect our business, results of operations and financial condition. It is difficult to predict the full impact of the HKAA
on Hong Kong and companies with operations in Hong Kong like us. Furthermore, legislative or administrative actions in respect of China-U.S.
relations could cause investor uncertainty for affected issuers, including us, and the market price of our Ordinary Shares could be adversely
affected.

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If we become directly subject to the recent scrutiny, criticism and negative publicity involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate and resolve the matter which could harm our business operations, stock price and reputation and could result in a loss of your investment in our stock, especially if such matter cannot be addressed and resolved favorably.

Recently, U.S. public companies
that have substantially all of their operations in China, including Hong Kong, have been the subject of intense scrutiny, criticism and
negative publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and
negative publicity has centered around financial and accounting irregularities and mistakes, a lack of effective internal controls over
financial accounting, inadequate corporate governance policies or a lack of adherence thereto and, in many cases,