Company: BAYAU
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001641172-25-002125
Chunk: 85

Company: Bayview Acquisition Corp
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1
Chunk 85
---
-combination target company, which could cause the value of our Ordinary Shares may depreciate
significantly or become worthless. These agreements likely also would provide for increased ownership or full ownership and control by
us when and if permitted under local laws and regulations. If we choose to effect a business combination that employs the use of these
types of control arrangements, we may have difficulty in enforcing our rights. Therefore, these contractual arrangements may not be as
effective in providing us with the same economic benefits, accounting consolidation or control over a target business as would direct
ownership. For example, if the target business or any other entity fails to perform its obligations under these contractual arrangements,
we may have to incur substantial costs and expend substantial resources to enforce such arrangements, and rely on legal remedies under
local law, including seeking specific performance or injunctive relief, and claiming damages, which we cannot assure will be sufficient
to offset the cost of enforcement and may adversely affect the benefits we expect to receive from the business combination.

PRC
regulations relating to offshore investment activities by PRC residents may limit our ability to inject capital in our Chinese subsidiaries
and Chinese subsidiaries’ ability to change their registered capital or distribute profits to us or otherwise expose us or our
PRC resident beneficial owners to liability and penalties under PRC laws.

In
July 2014, the State Administration of Foreign Exchange of the PRC, or SAFE promulgated the Circular on Relevant Issues Concerning Foreign
Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment Through Special Purpose Vehicles,
or SAFE Circular 37. SAFE Circular 37 requires PRC residents (including PRC individuals and PRC corporate entities as well as foreign
individuals that are deemed as PRC residents for foreign exchange administration purpose) to register with SAFE or its local branches
in connection with their direct or indirect offshore investment activities. SAFE Circular 37 is applicable to our shareholders who are
PRC residents and may be applicable to any offshore acquisitions that we make in the future. Under SAFE Circular 37, PRC residents who
make, or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special purpose vehicles,
or SPVs, will be required to register such investments with SAFE or its local branches. In addition, any PRC resident who is a direct
or indirect shareholder of an SPV, is required to update its filed registration with the local branch of SAFE with respect to that SPV,
to reflect any material change