Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 473

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 1
Chunk 473
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RC legal system is based on statutes. Prior court decisions may
be cited for reference but have limited precedential value.

Since
1979, PRC legislation and regulations have significantly enhanced the protections afforded to various forms of foreign investments in
China. However, China has not developed a fully integrated legal system and recently enacted laws and regulations may not sufficiently
cover all aspects of economic activities in China. In particular, the interpretation and enforcement of these laws and regulations involve
uncertainties. Since PRC administrative and court authorities have significant discretion in interpreting and implementing statutory
provisions and contractual terms, it may be difficult to evaluate the outcome of administrative and court proceedings and the level of
legal protection we enjoy. These uncertainties may affect our judgment on the relevance of legal requirements and our ability to enforce
our contractual rights or tort claims. In addition, these regulatory uncertainties may be exploited through unmerited or frivolous legal
actions or threats in attempts to extract payments or benefits from us.

In
addition, the PRC legal system is based in part on government policies and internal rules (some of which are not published on a timely
basis or at all) that may change quickly with little advance notice or have a retroactive effect. As a result, we may not be aware of
our violation of these policies and rules until sometime after the violation. On July 6, 2021, the General Office of the Communist Party
of China Central Committee and the General Office of the State Council jointly issued a document to enhance its enforcement against illegal
activities in the securities markets and promote the high-quality development of capital markets, which, among other things, requires
the relevant governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision
over Chinese companies listed overseas, and to establish and improve the system of extraterritorial application of the Chinese securities
laws. Since this document is relatively new, uncertainties exist in relation to how soon legislative or administrative regulation-making
bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or
promulgated, if any, and the potential impact such modified or new laws and regulations will have on companies like us. It is especially
difficult for us to accurately predict the potential impact on us of new legal requirements in mainland China because the Chinese legal
system is a civil law system based on written statutes. Unlike the common law system, prior court decisions under the civil law system
may be cited for reference but