Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 30

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 30
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able Act, if the PCAOB determines that it cannot inspect or fully investigate our auditors for two consecutive years. As a result,
an exchange may determine to delist our securities.

In
light of recent events indicating greater oversight by the CAC over data security, we may be subject to a variety of PRC laws and other
obligations regarding cybersecurity and data protection, and any failure to comply with applicable laws and obligations could have a
material adverse effect on our business and our securities.

Since
2021, the Chinese government has strengthened its anti-monopoly supervision, mainly in three aspects: (1) establishing the National Anti-Monopoly
Bureau; (2) revising and promulgating anti-monopoly laws and regulations, including: the Anti-Monopoly Law (draft Amendment published
on October 23, 2021 for public opinions), the anti-monopoly guidelines for various industries, and the detailed Rules for the Implementation
of the Fair Competition Review System; and (3) expanding the anti-monopoly law enforcement targeting Internet companies and large enterprises.
As of the date of this report, the Chinese government’s recent statements and regulatory actions related to anti-monopoly concerns
have not impacted our ability to conduct business, accept foreign investments, or list on a U.S. or other foreign exchange because neither
the Company nor its PRC operating entities engage in monopolistic behaviors that are subject to these statements or regulatory actions.

On
November 14, 2021, the CAC released the Regulations on the Network Data Security Management (Draft for Comments), or the Data Security
Management Regulations Draft, to solicit public opinion and comments till December 13, 2021, which has not been promulgated as of the
date of this report. Pursuant to the Data Security Management Regulations Draft, data processors holding more than one million users/users’
individual information shall be subject to cybersecurity review before listing abroad. Data processing activities refers to activities
such as the collection, retention, use, processing, transmission, provision, disclosure, or deletion of data. According to the latest
amended Cybersecurity Review Measures, which was promulgated on November 16, 2021 and became effective on February 15, 2022, an online
platform operator holding more than one million users/users’ individual information shall be subject to cybersecurity review before
listing abroad.

As
of the date of this report, CIMG and its subsidiaries have not received any notice from any authorities requiring the PRC subsidiaries