Company: BAYAU
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001641172-25-002125
Chunk: 113

Company: Bayview Acquisition Corp
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1
Chunk 113
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 RMB capital converted from foreign currency-denominated registered capital of a foreign-invested company
to issue RMB entrusted loans to a prohibition against using such capital to grant loans to non-associated enterprises. Violations of
SAFE Circular 19 and SAFE Circular 16 could result in administrative penalties. SAFE Circular 19 and SAFE Circular 16 may significantly
limit our ability to transfer any foreign currency we hold, including the net proceeds from the IPO, to our PRC entity, which may adversely
affect our liquidity and our ability to fund and expand our business in the PRC.

In
light of the various requirements imposed by PRC regulations on loans to, and direct investment in, PRC entities by offshore holding
companies, and the fact that the PRC government may at its discretion restrict access to foreign currencies for current account transactions
in the future, we cannot assure you that we will be able to complete the necessary government registrations or obtain the necessary government
approvals on a timely basis, if at all, with respect to future loans by us to our PRC entity or with respect to future capital contributions
by us to our PRC entity. If we merge with a China-based operating company, and if we fail to complete such registrations or obtain such
approvals, our ability to use the proceeds from the IPO and to capitalize or otherwise fund our PRC operations may be negatively affected,
which could materially and adversely affect our liquidity and our ability to fund and expand our business.

  61 

If
we successfully consummate a business combination with a target business with primary operations in the PRC, we will be subject to restrictions
on dividend payments following consummation of our initial business combination.

After
we consummate our initial business combination, we may rely on dividends and other distributions from our operating company to provide
us with cash flow and to meet our other obligations. Current regulations in China would permit our operating company in China to pay
dividends to us only out of its accumulated distributable profits, if any, determined in accordance with Chinese accounting standards
and regulations.

In
addition, our operating company in China will be required to set aside at least 10% (up to an aggregate amount equal to half of its registered
capital) of its accumulated profits each year. Each of our PRC subsidiaries as a foreign invested enterprise, is also required to further
set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any