Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 86

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 86
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 the former U. S. President Donald Trump signed the Hong Kong Autonomy Act, or HKAA, into law, authorizing
the U. S. administration to impose blocking sanctions against individuals and entities who are determined to have materially contributed
to the erosion of Hong Kong’s autonomy. On August 7, 2020 the U. S. government imposed HKAA-authorized sanctions on eleven individuals,
including former HKSAR chief executive Carrie Lam. On October 14, 2020, the U. S. State Department submitted to relevant committees of
Congress the report required under HKAA, identifying persons materially contributing to “the failure of the Government of China
to meet its obligations under the Joint Declaration or the Basic Law.” The HKAA further authorizes secondary sanctions, including
the imposition of blocking sanctions, against foreign financial institutions that knowingly conduct a significant transaction with foreign
persons sanctioned under this authority. The imposition of sanctions may directly affect the foreign financial institutions as well as
any third parties or customers dealing with any foreign financial institution that is targeted. It is difficult to predict the full impact
of the Hong Kong National Security Law and HKAA on Hong Kong and companies located in Hong Kong. If our Hong Kong subsidiaries are determined
to be in violation of the Hong Kong National Security Law or the HKAA by competent authorities, our business operations, financial position
and results of operations could be materially and adversely affected.

The Hong Kong legal system embodies uncertainties
which could limit the availability of legal protections.

As one of the conditions for
the handover of the sovereignty of Hong Kong to China, China accepted conditions such as Hong Kong’s Basic Law. The Basic Law ensured
Hong Kong will retain its own currency (Hong Kong Dollar), legal system, parliamentary system and people’s rights and freedom for
fifty years from 1997. This agreement has given Hong Kong the freedom to function with a high degree of autonomy. The Special Administrative
Region of Hong Kong is responsible for its own domestic affairs including, but not limited to, the judiciary and courts of last resort,
immigration and customs, public finance, currencies and extradition. Hong Kong continues using the English common law system.

However, if the PRC attempts
to alter its agreement to allow Hong Kong to function autonomously, this could potentially impact Hong Kong’s common law legal system
and may in turn bring about uncertainty in, for example, the enforcement of our contractual rights. This could, in turn, materially and
adversely affect our business and operations