Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 24

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 24
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, or may make additional
capital contributions to subsidiaries in China.

Any
loans to the subsidiaries in China are subject to foreign investment and are under PRC regulations and foreign exchange loan registrations.
For example, loans by us to the wholly foreign-owned subsidiaries or VIE entities in China to finance their activities must be registered
with the local counterpart of SAFE. In addition, a foreign invested enterprise shall use its capital pursuant to the principle of authenticity
and self-use within its business scope. The capital of a foreign invested enterprise shall not be used for the following purposes: (i)
directly or indirectly used for payment beyond the business scope of the enterprises or the payment prohibited by relevant laws and regulations;
(ii) directly or indirectly use for investment in securities or investments other than banks’ principal-secured products unless
otherwise provided by relevant laws and regulations; (iii) the granting of loans to non-affiliated enterprises, except where it is expressly
permitted in the business license; and (iv) paying the expenses related to the purchase of real estate that is not for self-use (except
for the foreign-invested real estate enterprises). On October 23, 2019, the SAFE promulgated the Notice of the State Administration of
Foreign Exchange on Further Promoting the Convenience of Cross-border Trade and Investment, or the SAFE Circular 28, which, among other
things, allows all foreign-invested companies to use Renminbi converted from foreign currency-denominated capital for equity investments
in China, as long as the equity investment is genuine, does not violate applicable laws, and does not violate with the negative list
on foreign investment. However, since the SAFE Circular 28 is newly promulgated, it is unclear how SAFE and competent banks will carry
this out in practice. In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities
by offshore holding companies, we cannot assure you that we will be able to complete the necessary government registrations or obtain
the necessary government approvals on a timely basis.

We
must remit offering proceeds to China in a future securities issuance before they may be used to benefit our business in China, the process
of which may be time-consuming, and we cannot assure that we can complete all necessary governmental registration processes in a timely
manner.

The
proceeds of a future offering may be remitted back to the PRC, and the process for wiring such proceeds back to the PRC may be time-consuming
after