Company: CLIK
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001493152-25-019286
Chunk: 5

Company: Click Holdings Ltd.
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 5
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 regulations in the PRC are often uncertain. In addition, these laws and regulations may be interpreted and applied inconsistently
by different agencies or authorities, and may be inconsistent with our current policies and practices. New laws, regulations and other
government directives in the PRC may also be costly to comply with, and such compliance or any associated inquiries or investigations
or any other government actions may delay or impede our development. This may result in negative publicity or increase our operating
costs; require significant management time and attention; and/or subject us to remedies, administrative penalties and even criminal liabilities
that may harm our business, including fines assessed for our current or historical operations, or demands or orders that we modify or
even cease our business practices.

The
PRC government initiated a series of regulatory actions and statements to regulate business operations in certain areas in China with
little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based
companies listed overseas using a variable interest entity (“ VIE”) structure, adopting new measures to extend the scope of
cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. These regulatory actions and statements emphasize the
need to strengthen the administration over illegal securities activities and the supervision of China-based companies seeking overseas
listings. Additionally, companies are required to undergo a cybersecurity review if they hold large amounts of data related to issues
of national security, economic development or public interest before carrying our mergers, restructuring or splits that affect or may
affect national security. These statements were recently issued and their official guidance and interpretation remain unclear at this
time. While we believe that our Hong Kong operating subsidiaries’ operations are not currently being affected, they may be subject
to additional and stricter compliance requirements in the near term. Compliance with new regulatory requirements or any future implementation
rules may present a range of new challenges which may create uncertainties and increase our Hong Kong operating subsidiaries’ cost
of operations.

The
Chinese government may intervene or influence our Hong Kong operating subsidiaries’ operations at any time and may exert more control
over offerings conducted overseas and foreign investment in Hong Kong-based issuers. For instance, PRC domestic companies that seek to
offer or list securities overseas, both directly and indirectly, are currently required to complete filing procedures with the CSRC pursuant
to the requirements of the Trial Measures within three working days following their submission of IPOs or listing applications. Although
we believe that we are not regarded as a PRC domestic company because substantially all of