Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 4

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 4
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 in and having operations in mainland China may also apply to operations in Hong Kong in the future. There is no assurance that there will not be any changes in the economic, political and legal environment in Hong Kong. The PRC government may intervene or influence our current and future operations in Hong Kong at any time, or may exert more control over offerings conducted overseas and/or foreign investment in issuers like DarkIris. The Company used to conduct its operations through Guangzhou Turing Interactive Entertainment Technology Co., Ltd (“Turing”), a subsidiary of Quantum. On May 14, 2025, Quantum entered into a share transfer agreement with Xiamen Yusanjia Culture Communication Co., Ltd (“Xiamen Yusanjia”), an unaffiliated third party, to transfer all outstanding shares of Turing, at the price approximately at RMB 2.0 million (US$ 268,000) based on its unaudited net assets as of April 30, 2025 (the “Disposition”). After the Disposition, Turing is no longer owned by Quantum, and we have no operating subsidiary in mainland China.

Such governmental actions, if and when they occur:

| ● | could result in a material change in our operations and/or the value of our Class A Ordinary   
 Shares;                                                                                        |
| ● | could significantly limit or completely hinder our ability to continue our Group’s operations; |
| ● | could significantly limit or completely hinder our ability to offer or continue to offer our   
 Class A Ordinary Shares to investors; and                                                      |
| ● | may cause the value                                                                            
 of our Class A Ordinary Shares to significantly decline or be worthless.                       |

The PRC government initiated a series of regulatory actions and made a number of public statements on the regulation of business operations in certain areas in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using variable interest entity (“VIE”) structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. We do not believe that we are directly subject to these regulatory actions or statements, as we do not have a VIE structure, and our business does not involve the collection of user data, implicate cybersecurity, or involve any other type of restricted industry. Since these statements and regulatory actions are new, it is highly uncertain how soon the legislative or administrative regulation making bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulg