Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 78

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 78
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 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.

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, allegations of fraud.
As a result of the scrutiny, criticism and negative publicity, the publicly traded stock of many U. S. listed Chinese companies has sharply
decreased in value and, in some cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits
and SEC enforcement actions and are conducting internal and external investigations into the allegations. It is not clear what effect
this sector-wide scrutiny, criticism and negative publicity will have on our company, our business and our stock price. If we become the
subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we will have to expend significant resources
to investigate such allegations and/or defend our company. This situation will be costly and time consuming and distract our management
from growing our company.

The recent joint statement by the SEC, proposed
rule changes submitted by Nasdaq, and an act passed by the U. S. Senate and the U. S