Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 173

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 173
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 operations are conducted in the PRC. Although the PRC economy has grown significantly in recent years, there is no assurance that
this growth will continue. A slowdown in overall economic growth, an economic downturn, a recession or other adverse economic developments
in the PRC could significantly reduce the demand for our products and services.

If
relations between the United States and China worsen, investors may be unwilling to hold or buy our stock and our stock price may decrease.

At
various times during recent years, the United States and China have had significant disagreements over political and economic issues.
Controversies may arise in the future between these two countries that may affect our economic outlook both in the United States and
in China. Any political or trade controversies between the United States and China, whether or not directly related to our business,
could reduce the price of our Common Stock.

Future
inflation in China may inhibit the profitability of our business in China.

In
recent years, the Chinese economy has experienced periods of rapid expansion and high rates of inflation. Rapid economic growth can lead
to growth in the money supply and rising inflation. If prices for our services and products rise at a rate that is insufficient to compensate
for the rise in the costs of supplies, it may have an adverse effect on profitability. These factors have led to the adoption by Chinese
government, from time to time, of various corrective measures designed to restrict the availability of credit or regulate growth and
contain inflation. High inflation may in the future cause the Chinese government to impose controls on credit and/or prices, or to take
other action, which could inhibit economic activity in China, and thereby harm the market for our services and products.

31

The
fluctuation of the Renminbi may have a material adverse effect on your investment.

The
change in value of the Renminbi against the U.S. dollar and other currencies is affected by, various factors, such as changes in China’s
political and economic conditions and China’s foreign exchange controls. On July 21, 2005, the PRC government changed its decade-old
policy of pegging the value of the Renminbi to the U.S. dollar. Under such policy, the Renminbi was permitted to fluctuate within a narrow
and managed band against a basket of certain foreign currencies. Later on, the People’s Bank of China has decided to further implement
the reform of the RMB exchange regime and to enhance the flexibility of RMB exchange rates. Such changes in policy