Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 498

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 1
Chunk 498
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 will be interpreted or enforced and whether such interpretation or enforcement
will affect our ability to conduct foreign exchange transactions. Because of this uncertainty, we cannot be sure whether the failure
by any of our PRC resident stockholders to make the required registration will subject our PRC subsidiaries to fines or legal sanctions
on their operations, delay or restriction on repatriation of proceeds of our securities offerings into the PRC, restriction on remittance
of dividends or other punitive actions that would have a material adverse effect on our business, results of operations and financial
condition.

There
are uncertainties under the PRC laws relating to the procedures for U.S. regulators to investigate and collect evidence from companies
located in the PRC.

Shareholder
claims that are common in the U.S., including securities law class actions and fraud claims, among other matters, generally are difficult
to pursue as a matter of law or practicality in China. For example, in China, there are significant legal and other obstacles to obtaining
information needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities. Although
the local authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another
country or region to implement cross-border supervision and administration, such regulatory cooperation with the securities regulatory
authorities in the Unities States have not been efficient in the absence of mutual and practical cooperation mechanism. According to
Article 177 of the PRC Securities Law, which became effective in March 2020, or Article 177, the securities regulatory authority of the
State Council may collaborate with securities regulatory authorities of other countries or regions in order to monitor and oversee cross
border securities activities. Article 177 further provides that overseas securities regulatory authorities are not permitted to carry
out investigation and evidence collection directly within the territory of the PRC, and that any Chinese entities and individuals are
not allowed to provide documents or materials related to securities business activities to overseas agencies without prior consent of
the securities regulatory authority of the State Council and the competent departments of the State Council.

Our
principal business operations are conducted in the PRC. In the event that the U.S. regulators carry out investigations with respect to
our business and need to conduct investigation or collect evidence within the territory of the PRC, the U.S. regulators may not be able
to carry out such investigation or evidence collection directly in the PRC under the PRC laws. The U.S. regulators may consider cross-border
cooperation with securities regulatory authority of the PRC by