Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 22

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 22
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, the interpretations of such laws and regulations may not always be consistent,
and enforcement of these laws. In different administrative areas and regulations involves significant uncertainties, any of which could
limit the available legal protections. In addition, the PRC administrative and judicial authorities have significant discretion in interpreting,
implementing or enforcing statutory rules and contractual terms, and it may be more difficult to predict the outcome of administrative
and judicial proceedings and the level of legal protection we may enjoy in the PRC than under some more developed legal systems. These
uncertainties may affect our decisions on the policies and actions to be taken to comply with PRC laws and regulations, and may affect
our ability to enforce our contractual or tort rights. In addition, the regulatory uncertainties may be exploited through unmerited legal
actions or threats in an attempt to extract payments 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