Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 180

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 180
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 to the offshore parent and from carrying out subsequent cross-border foreign exchange activities, and the special purpose
vehicle may be restricted in its ability to contribute additional capital into its PRC subsidiary. Further, failure to comply with the
various SAFE registration requirements described above could result in liability under PRC law for foreign exchange evasion.

These
regulations apply to our direct and indirect shareholders who are PRC residents and may apply to any offshore acquisitions or share transfers
that we make in the future if our shares are issued to PRC residents. However, in practice, different local SAFE branches may have different
views and procedures on the application and implementation of SAFE regulations, and since SAFE Circular No. 37 was relatively new, there
remains uncertainty with respect to its implementation. As of the date of this report, all PRC residents known to us that currently hold
direct or indirect interests in our company have completed the necessary registrations with SAFE as required by SAFE Circular 37. However,
we may not be informed of the identities of all the PRC residents or entities holding direct or indirect interest in our company, nor
can we compel our beneficial owners to comply with the requirements of SAFE Circular 37. However, we cannot assure you that these individuals
or any other direct or indirect shareholders or beneficial owners of our company who are PRC residents will be able to successfully complete
the registration or update the registration of their direct and indirect equity interest as required in the future. If they fail to make
or update the registration, our shareholders could be subject to fines and legal penalties, and SAFE could restrict our cross-border
investment activities and our foreign exchange activities, including restricting the PRC subsidiary’s ability to distribute dividends
to, or obtain loans denominated in foreign currencies from, our company, or prevent us from paying dividends. As a result, our business
operations and our ability to make distributions to you could be materially and adversely affected.

We
may be subject to fine due to our insufficient payment of the social insurance and housing fund of the employees.

Pursuant
to the Social Insurance Law of the PRC, as amended on December 29, 2018,and the Regulation on the Administration of Housing Accumulation
Funds, as amended on March 24, 2019, employers in China shall register with relevant social insurance agency and relevant housing provident
fund management center and open special housing provident fund accounts for each of their employees, and pay contributions to the social
insurance plan and the housing provident fund