Company: IDVV
Filing Date: 2025-09-18
Form Type: 10-12G/A
Source: 0001683168-25-007099
Chunk: 65

Company: ModuLink Inc.
Filing Date: 2025-09-18
Form: 10-12G/A
Chunk 65
---
 SAFE Circular 16, effective on June 9, 2016, allows FIEs to settle their
foreign exchange capital at their discretion, but continues to prohibit FIEs from using the Renminbi fund converted from their foreign
exchange capitals for expenditure beyond their business scopes, and also prohibit FIEs from using such Renminbi fund to provide loans
to persons other than affiliates unless otherwise permitted under its business scope. If Safe Circulars 16 and 19 are interpreted to apply
to the Hong Kong Dollar, our ability to use Hong Kong Dollars converted from the net proceeds from our offshore financing activities to
fund the establishment of new entities in Hong Kong, to invest in or acquire any other Hong Kong or PRC companies may be limited, which
may adversely affect our business, financial condition and results of operations.

Because our holding company structure creates restrictions on the payment of dividends or other cash payments, our ability to pay dividends or make other payments is limited.

We are a holding company whose
primary assets are our ownership of the equity interests in our subsidiaries. We conduct no other business and, as a result, we depend
entirely upon our subsidiaries’ earnings and cash flow to meet cash and financing requirements. If we decide in the future to pay
dividends or make other payments, as a holding company, our ability to pay dividends and meet other obligations depends upon the receipt
of dividends or other payments from our operating subsidiaries. Our subsidiaries and projects may be restricted in their ability to pay
dividends, make distributions or otherwise transfer funds to us prior to the satisfaction of other obligations, including the payment
of operating expenses or debt service, appropriation to reserves prescribed by laws and regulations, covering losses in previous years,
restrictions on the conversion of local currency into U.S. dollars or other hard currency, completion of relevant procedures with governmental
authorities or banks and other regulatory restrictions. Under the applicable PRC laws and regulations, foreign-invested enterprises in
China may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations.
In addition, a foreign-invested enterprise in China is required to set aside a portion of its after-tax profit to fund specific reserve
funds prior to payment of dividends. In particular, at least 10% of its after-tax profits based on PRC accounting standards each year
is required to be set aside towards its general reserves until the accumulative amount of such reserves reach 50% of its