Company: IDVV
Filing Date: 2025-07-03
Form Type: 10-12G/A
Source: 0001683168-25-004925
Chunk: 71

Company: ModuLink Inc.
Filing Date: 2025-07-03
Form: 10-12G/A
Chunk 71
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 Ministry of Commerce on Implementation of Security Review System of Mergers and Acquisitions of Domestic Enterprises by Foreign
Investors promulgated by MOFCOM or the MOFCOM Security Review Rules, was issued in August 2011, which established additional procedures
and requirements that are expected to make merger and acquisition activities in China by foreign investors more time-consuming and complex,
including requirements in some instances that MOFCOM be notified in advance of any change of control transaction in which a foreign investor
takes control of a PRC enterprise, or that the approval from MOFCOM be obtained in circumstances where overseas companies established
or controlled by PRC enterprises or residents acquire affiliated domestic companies. PRC laws and regulations also require certain merger
and acquisition transactions to be subject to merger control review and or security review.

The MOFCOM Security Review
Rules, effective from September 1, 2011, which implement the Notice of the General Office of the State Council on Establishing the Security
Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors promulgated on February 3, 2011, further provide
that, when deciding whether a specific merger or acquisition of a domestic enterprise by foreign investors is subject to the security
review by MOFCOM, the principle of substance over form should be applied and foreign investors are prohibited from bypassing the security
review requirement by structuring transactions through proxies, trusts, indirect investments, leases, loans, control through agreements
control or offshore transactions.

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Further, if the business
of any target company that the combined company seeks to acquire falls into the scope of security review, the combined company may not
be able to successfully acquire such company either by equity or asset acquisition, capital contribution or through any contractual agreements.
The combined company may grow its business in part by acquiring other companies operating in its industry. Complying with the requirements
of the relevant regulations to complete such transactions could be time consuming, and any required approval processes, including approval
from MOFCOM, may delay or inhibit its ability to complete such transactions, which could affect our ability to maintain or expand our
market share.

In addition, SAFE promulgated
the Circular on the Settlement of Foreign Currency Capital of Foreign-invested Enterprises, or Circular 19, on June 1, 2015. Under Circular
19, registered capital of a foreign-invested company settled in RMB converted from foreign currencies may only be used within the business
scope approved by the