Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 39

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1
Chunk 39
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                                            regulatory actions by the Chinese government with respect to foreign capital efforts and
                                            activities, including business combinations with offshore shell companies such as SPACs,
                                            may adversely impact our ability to consummate a business combination with a China based
                                            entity or business, or materially impact the value of our securities following any such business
                                            combination.

●The
                                            VIE structure may expose us to additional PRC legal Issues and adversely affect control over
                                            future operations.

●The
                                            CSRC and other Chinese government agencies may exert more oversight and control over offerings
                                            that are conducted overseas and foreign investment in China-based issuers. It is possible
                                            that we may need to obtain approvals or permissions from the CSRC or another PRC regulatory
                                            body if we undertake a business combination with a China-based entity. As a result, we may
                                            have to spend additional resources and incur additional time delays to complete any such
                                            business combination or be prevented from pursuing certain investment opportunities, or even
                                            could significantly affect our ability to offer or continue to offer securities to investors
                                            and cause the value of our securities to significantly decline or be worthless.

●You
                                            may experience difficulties in effecting service of legal process, enforcing foreign judgments,
                                            or bringing actions in China and Hong Kong against us or our management named in the Annual
                                            Report based on foreign laws. It may also be difficult for you or overseas regulators to
                                            conduct investigations or collect evidence within China.

●After
                                            our initial business combination, substantially all of our assets may be located in a foreign
                                            country and substantially all of our revenue may be derived from our operations in such country.
                                            Accordingly, our results of operations and prospects will be subject, to a significant extent,
                                            to the economic, political and legal policies, developments and conditions in the country
                                            in which we operate.

23

Item 1A. RISK FACTORS

As a smaller reporting company, we are not required to include risk factors in this Annual Report. However, below is a partial list of material risks, uncertainties and other factors that could have a material effect on the Company and its operations:

An
investment in our securities involves a high degree of risk. You should consider carefully all of the risks described below, together
with the other information contained in this Annual Report, before making a decision to invest in our securities. If any of the following
events occur, our business, financial condition and operating results may be materially adversely affected. In that