Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 178

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 178
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 and regulations; (iii) the granting of loans to non-affiliated enterprises, except where it is expressly
permitted in the business license; and (iv) paying the expenses related to the purchase of real estate that is not for self-use (except
for the foreign-invested real estate enterprises). On October 23, 2019, the SAFE promulgated the Notice of the State Administration of
Foreign Exchange on Further Promoting the Convenience of Cross-border Trade and Investment, or the SAFE Circular 28, which, among other
things, allows all foreign-invested companies to use Renminbi converted from foreign currency-denominated capital for equity investments
in China, as long as the equity investment is genuine, does not violate applicable laws, and does not violate with the negative list
on foreign investment. However, since the SAFE Circular 28 is newly promulgated, it is unclear how SAFE and competent banks will carry
this out in practice. In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities
by offshore holding companies, we cannot assure you that we will be able to complete the necessary government registrations or obtain
the necessary government approvals on a timely basis.

We
must remit offering proceeds to China in a future securities issuance before they may be used to benefit our business in China, the process
of which may be time-consuming, and we cannot assure that we can complete all necessary governmental registration processes in a timely
manner.

The
proceeds of a future offering may be remitted back to the PRC, and the process for wiring such proceeds back to the PRC may be time-consuming
after the closing of a future offering. We may be unable to use these proceeds to grow our business until the PRC Subsidiaries receive
such proceeds in the PRC. Any transfer of funds by us to the PRC Subsidiaries, either as a shareholder loan or as an increase in registered
capital, are subject to approval by or registration or filing with relevant governmental authorities in China. Any foreign loans procured
by the PRC Subsidiaries is required to be registered with China’s State Administration of Foreign Exchange (“SAFE”)
or its local branches or satisfy relevant requirements, and the PRC subsidiaries may not procure loans which exceed the difference between
their respective total project investment amount and registered capital or 2 times (which may be varied year by year due to the change
of PRC’s national macro