Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 176

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 176
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 or benefits from us. Such uncertainties may therefore increase our operating expenses
and costs, and materially and adversely affect our business and results of operations.

The
PRC’s legal and judicial system under special circumstances may not adequately protect our business and operations and the rights
of foreign investors.

The
legal and judicial systems in the PRC are still rudimentary, and enforcement of existing laws is uncertain. As a result, it may be impossible
to obtain swift and equitable enforcement of laws that do exist, Different administrative regions have different legal and judicial interpretations
or to obtain enforcement of the judgment of one court by a court of another jurisdiction. The PRC’s legal system is based on the
civil law regime, that is, it is based on written statutes. A decision by one judge does not set a legal precedent that is required to
be followed by judges in other cases. In addition, the interpretation of Chinese laws may be varied to reflect domestic political changes.

The
promulgation of new laws, changes to existing laws and the pre-emption of local regulations by national laws may adversely affect foreign
investors. There can be no assurance that a change in leadership, social or political disruption, or unforeseen circumstances affecting
the PRC’s political, economic or social life, will not affect the PRC government’s ability to continue to support and pursue
these reforms. Such a shift could have a material adverse effect on our business and prospects.

Certain
PRC regulations, including the M&A Rules and national security regulations, may require a complicated review and approval process
which could make it more difficult for us to pursue growth through acquisitions in China.

The
M&A Rules established additional procedures and requirements that could make merger and acquisition activities in China by foreign
investors more time-consuming and complex. For example, the Ministry of Commerce (“MOFCOM”) must be notified in the event a foreign investor takes control of
a PRC domestic enterprise. In addition, certain acquisitions of domestic companies by offshore companies that are related to or affiliated
with the same entities or individuals of the domestic companies, are subject to approval by the MOFCOM. In addition, the Implementing
Rules Concerning Security Review on Mergers and Acquisitions by Foreign Investors of Domestic Enterprises, issued by the MOFCOM in August
2011, require that mergers and acquisitions by foreign investors in “any industry with national security concerns” be subject
to national security review by the MOFCOM. In addition, any activities attempting to circumvent