Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 306

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 306
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 other relevant PRC governmental
authorities or their respective local counterparts may delay or inhibit our ability to complete such transactions, which could affect
our ability to expand our business or maintain our market share.

As a result of the M&A Rules implemented on September 8, 2006
relating to acquisitions of assets and equity interests of PRC companies by foreign investors, it is expected that acquisitions will take
longer and be subject to economic scrutiny by the PRC government authorities such that we may not be able to complete a transaction.

On September 8, 2006, the MOFCOM, together with several other government
agencies, promulgated a comprehensive set of regulations governing the approval process by which a PRC company may participate in an acquisition
of its assets or its equity interests and by which a PRC company may obtain public trading of its securities on a securities exchange
outside the PRC. Although there was a complex series of regulations in place prior to September 8, 2006 for approval of PRC enterprises
that were administered by a combination of provincial and centralized agencies, the new regulations have largely centralized and expanded
the approval process to the MOFCOM, the State Administration of Industry and Commerce, the SAFE or its branch offices, the State Asset
Supervision and Administration Commission, and the CSRC. Depending on the structure of the transaction as determined once a definitive
agreement is executed, these regulations will require the Chinese parties to make a series of applications and supplemental applications
to the aforementioned agencies, some of which must be made within strict time limits and depending on approvals from one or the other
of the aforementioned agencies. The application process has been supplemented to require the presentation of economic data concerning
a transaction, including appraisals of the business to be acquired and evaluations of the acquirer which will permit the government to
assess the economics of a transaction in addition to the compliance with legal requirements. If obtained, approvals will have expiration
dates by which a transaction must be completed.

Also, completed transactions must be reported to the MOFCOM and some
of the other agencies within a short period after closing or be subject to an unwinding of the transaction. It is expected that compliance
with the regulations will be more time-consuming than in the past, will be more costly for the Chinese parties, and will permit the government
much more extensive evaluation and control over the terms of the transaction. Subsequent to the promulgation of the Foreign Investment
Law and the relevant