Company: ATMCW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004801
Chunk: 1593

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 1593
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 our net revenue effectively and affect the value of your investment.

Following
our initial business combination with a PRC target company, we will be subject to the PRC’s rules and regulations on currency conversion.
In the PRC, the SAFE regulates the conversion of the Renminbi into foreign currencies. The PRC government imposes controls on the convertibility
of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China.

Under
PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and
service-related foreign exchange transactions, can be made in foreign currencies without prior approval of SAFE by complying with certain
procedural requirements. Under existing exchange restrictions, without prior approval of SAFE, cash generated from PRC subsidiaries in
China may be used to pay dividends.

However,
approval from or registration with appropriate government authorities is required where Renminbi is to be converted into foreign currency
and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government
may at its discretion restrict access to foreign currencies for current account transactions in the future. If the foreign exchange control
system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands, we may not pay dividends in
foreign currencies to our shareholders.

PRC
regulatory authorities could impose further restrictions on the convertibility of the Renminbi. Any future restrictions on currency exchanges
may limit our ability to use the proceeds of our Initial Public Offering in an initial business combination with a PRC target company
and the use our cash flow for the distribution of dividends to our shareholders or to fund operations we may have outside of the PRC.

If
we merge with a China-based operating company, then there are significant uncertainties under the PRC Enterprise Income Tax Law relating
to the withholding tax liabilities of the PRC entity, and dividends payable by the PRC entity to our offshore entity may not qualify
for certain treaty benefits.

Under
the PRC Enterprise Income Tax Law (“PRC EIT Law”) and its implementation rules, if following our initial business combination
we are a non-resident enterprise, that is, an enterprise lawfully incorporated pursuant to the laws of a foreign country (region) that
has an office or premises established in China with no actual management functions performed in China, or an enterprise that has income
derived from or accruing in China although it does not have an office or premises in China, will