Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 31

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 31
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to go through cybersecurity review or network data security review by the CAC. Given that CIMG and its subsidiaries do not possess personal
data of at least one million individual clients and do not collect data that affects or may affect national security in their business
operations as of the date of this report and do not anticipate that they will be collecting over one million users’ personal information
or data that affects or may affect national security in the near future. There remains uncertainty, however, as to how the Cybersecurity
Review Measures and the Security Administration Draft will be interpreted or implemented and whether the PRC regulatory agencies, including
the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Cybersecurity Review Measures
and the Security Administration Draft. If any such new laws, regulations, rules, or implementation and interpretation come into effect,
we will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on us. We cannot guarantee,
however, that we will not be subject to cybersecurity review and network data security review in the future, which could materially and
adversely affect our business, financial conditions, and results of operations.

Compliance
with China’s new Data Security Law, Measures on Cybersecurity Review (revised draft for public consultation), Personal Information
Protection Law (second draft for consultation), regulations and guidelines relating to the multi-level protection scheme and any other
future laws and regulations may entail significant expenses and could materially affect our business.

China
has implemented or will implement rules and is considering a number of additional proposals relating to data protection. China’s
new Data Security Law promulgated by the Standing Committee of the National People’s Congress of China in June 2021, or the Data
Security Law, will take effect in September 2021. The Data Security Law provides that the data processing activities must be conducted
based on “data classification and hierarchical protection system” for the purpose of data protection and prohibits entities
in China from transferring data stored in China to foreign law enforcement agencies or judicial authorities without prior approval by
the Chinese government. As the Data Security Law has not yet come into effect, we may need to make adjustments to our data processing
practices to comply with this law.

37

Additionally,
China’s Cyber Security Law, requires companies to take certain organizational, technical and administrative measures and other
necessary measures to ensure the security of their networks and data stored on their networks. Specifically, the Cyber Security Law provides
that China adopt