Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 27

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 27
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 distribute dividends
to, or obtain loans denominated in foreign currencies from, our company, or prevent us from paying dividends. As a result, our business
operations and our ability to make distributions to you could be materially and adversely affected.

We
may be subject to fine due to our insufficient payment of the social insurance and housing fund of the employees.

Pursuant
to the Social Insurance Law of the PRC, as amended on December 29, 2018,and the Regulation on the Administration of Housing Accumulation
Funds, as amended on March 24, 2019, employers in China shall register with relevant social insurance agency and relevant housing provident
fund management center and open special housing provident fund accounts for each of their employees, and pay contributions to the social
insurance plan and the housing provident fund for their employees, such contribution amount payable shall be calculated based on the
employee’s actual salary in accordance with the relevant regulations. In case the employer fails to make sufficient payment of
the social insurance, it may be subject to fine up to 3 times of the insufficient amount and pay late fees. If the employer failed to
register with relevant housing provident fund management center or failed to open special housing provident fund accounts for the employees
within the ordered time limit, a fine of not less than RMB10,000 nor more than RMB50,000 may be imposed. In addition, if the employer
fails to pay sufficient contributions to housing provident fund as required, the housing provident fund management center shall order
it to make the payment and deposit within a prescribed time limit; where the payment has not been made after the expiration of the time
limit, the housing provident fund management center may request the people’s court for compulsory enforcement. On July 20, 2018,
the General Office of the Communist Party of China and the General Office of the State Council jointly issued the Reform Plan on Tax
Collection and Administration Systems for Local Offices of the State Administration of Taxation and Local Taxation Bureaus, according
to which the collection and administration of social insurance will be transferred from the social insurance departments to competent
tax authorities, and the supervision over the payment of social insurance will be significantly strengthened in the way that an enterprise
must pay social insurance for its employees based on their overall salary at certain legally required rates. If we are fined due to insufficient
payment of the social insurance and housing fund of the employees, our business operations could be materially and adversely affected.