Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 17

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 17
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 that this trend will continue, there can be no assurance
that this will be the case. A change in policies by the PRC government could adversely affect our interests by, among other factors:
changes in laws, regulations or the interpretation thereof, confiscatory taxation, restrictions on currency conversion, imports or sources
of supplies, or the expropriation or nationalization of private enterprises. Implementation of the negative list system. Although the
PRC government has been pursuing economic reform policies for more than two decades, there is no assurance that the government will continue
to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social
or political disruption, or other circumstances affecting the PRC’s political, economic and social environment.

The
approval and/or other requirements of the CSRC or other mainland China governmental authorities may be required in connection with our
issuance of securities overseas under mainland China rules, regulations or policies, and, if required, we cannot predict whether or for
how long we will be able to obtain such approval or complete such other requirements.

The
Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, purport to require offshore
special purpose vehicles that are controlled by mainland China companies or individuals and that have been formed for the purpose of
seeking a public listing on an overseas stock exchange through acquisitions of mainland China domestic companies or assets to obtain
CSRC approval prior to publicly listing their securities on an overseas stock exchange. The interpretation and application of the regulations
remain unclear. If CSRC approval is required, it is uncertain how long it will take for us to obtain such approval, and, even if we obtain
such CSRC approval, the approval could be rescinded. Any failure to obtain or a delay in obtaining CSRC approval for our future issuance
of securities overseas may subject us to sanctions imposed by the CSRC and other mainland China regulatory agencies, which could include
fines and penalties on our operations in mainland China, restrictions or limitations on our ability to pay dividends outside of mainland
China, and other forms of sanctions that may materially and adversely affect our business, financial condition, and results of operations.

Furthermore,
on July 6, 2021, the PRC government promulgated the Opinions on Strictly Cracking Down on Illegal Securities Activities, or the July
6 Opinions, which, among other things, called for enhanced administration and supervision of overseas-listed mainland