Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 23

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 23
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 that could make merger and acquisition activities in China by foreign
investors more time-consuming and complex. For example, the Ministry of Commerce (“MOFCOM”) must be notified in the event a foreign investor takes control of
a PRC domestic enterprise. In addition, certain acquisitions of domestic companies by offshore companies that are related to or affiliated
with the same entities or individuals of the domestic companies, are subject to approval by the MOFCOM. In addition, the Implementing
Rules Concerning Security Review on Mergers and Acquisitions by Foreign Investors of Domestic Enterprises, issued by the MOFCOM in August
2011, require that mergers and acquisitions by foreign investors in “any industry with national security concerns” be subject
to national security review by the MOFCOM. In addition, any activities attempting to circumvent such review process, including structuring
the transaction through a proxy or contractual control arrangement, are strictly prohibited. There is significant uncertainty regarding
the interpretation and implementation of these regulations relating to merger and acquisition activities in China. In addition, complying
with these requirements could be time-consuming, and the required notification, review or approval process may materially delay or affect
our ability to complete merger and acquisition transactions in China. As a result, our ability to seek growth through acquisitions may
be materially and adversely affected. In addition, if the MOFCOM determines that we should have obtained its approval for our entry into
contractual arrangements with the affiliated entities, we may be required to file for remedial approvals. There is no assurance that
we would be able to obtain such approval from the MOFCOM. We may also be subject to administrative fines or penalties by the MOFCOM that
may require us to limit our business operations in the PRC, delay or restrict the conversion and remittance of our funds in foreign currencies
into the PRC or take other actions that could have material and adverse effect on our business, financial condition and results of operations.

33

PRC
regulation of loans and direct investment by offshore holding companies to PRC entities may delay or prevent us from making loans or
additional capital contributions to the PRC Subsidiaries and affiliated entities, which could harm our liquidity and our ability to fund
and expand our business.

CIMG
is a Nevada corporation conducting part of its operations in China through its PRC and Hong Kong subsidiaries. CIMG may make loans to
the Hong Kong PRC Subsidiaries subject to the approval from governmental authorities and limitation of amount