Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 101

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 101
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 ownership and trading activities and establishing insider liability fo...  

B. Business Overview

Overview of our Company

Aptorum is not a Chinese operating company. Aptorum is a Cayman Islands
holding company with operations conducted through our subsidiaries and the variable interest entity (VIE). We have determined that we
have one VIE: Libra, according to the U. S. GAAP. In accordance with ASC 810, we concluded that we are not the primary beneficiary of Libra
and therefore we do not consolidate its financial statements into ours. Previously, we determined that we were the primary beneficiary
of another VIE, Mios Pharmaceuticals Limited; however, Mios was dissolved in 31 October 2024 and therefore we no longer maintain any ownership
over such entity. Our corporate structure is based on the equity ownership and control we have over our subsidiaries. Our corporate structure
was not set up to be used to provide investors with exposure to foreign investment in China-based companies where Chinese law prohibits
direct foreign investment in the operating companies. Foreign investment can be made directly into the VIE, however, your investments
into Aptorum are made into the Cayman Islands holding company, not our VIE, and you may never own any equity into the VIE or any other
subsidiary.

Our current corporate structure does not contain any variable interest
entity in mainland China and we do not have intention establishing any VIEs in mainland China in the future. However, if in the future
there is any significant change to the current political arrangements between mainland China and Hong Kong and mainland China’s
expanded authority in Hong Kong result in the PRC regulatory authorities disallowing our current corporate structure, or if in the future
our structure were to contain a VIE and the mainland PRC regulatory authorities expand to Hong Kong and disallow our corporate structure,
it would likely result in a material adverse change in the VIE’s operations, and the value of our securities may decline significantly
in value or become worthless.

Although currently we do not
have any business operations or VIE in mainland China and we believe that the laws and regulations of the PRC applicable in China do not
currently have any material impact on our business, financial condition or results of operations, we face risks and uncertainties associated
with the complex and evolving PRC laws and regulations and as to whether and how the recent PRC government statements and regulatory developments,
such as those relating to our VIE or subsidiaries, data and cyberspace security, and