Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 85

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 85
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, growth has been uneven, both geographically and among various
sectors of the economy. Any adverse changes in economic conditions in China, in the policies of the PRC government or in the laws and
regulations in China could materially adversely affect the overall economic growth of China. Such developments could adversely affect
our business and operating results, reducing demand for our services and adversely affect our competitive position.

The
PRC government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures
may benefit the overall Chinese economy, but may negatively affect us. In the past the PRC government has implemented certain measures,
including interest rate adjustments, to control the pace of economic growth. These measures may decrease economic activity in China,
which may adversely affect our business and operating results.

You
may face difficulties in protecting your interests and exercising your rights as a shareholder if we were to conduct substantially all
of our operations in China, and almost all of our officers and directors currently and will likely reside outside the U.S.

Although
we are incorporated in the Cayman Islands, our initial business combination target may have substantially all of its operations in China.
Further, all of our current officers and almost all of our directors reside outside the U.S. and substantially all of the assets of those
persons are located outside of the U.S. It may be difficult for you to conduct due diligence on our company or such directors in your
election of the directors and attend shareholders meetings if the meetings are held in China. We would likely have one shareholder meeting
each year at a location to be determined, potentially in China. As a result of all of the above, our public shareholders may have more
difficulty in protecting their interests through actions against our management, directors or major shareholders than would shareholders
of a corporation doing business entirely or predominantly within the U.S.

52

Governmental
control of currency conversion may affect the value of your investment.

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. We may consummate a business combination with a target business based in and primarily operating in China, after
which the operating companies in China upon consummation of the business combination may receive substantially all of their revenues
in Renminbi. Under existing PRC foreign exchange regulations, payments in foreign currencies of current account items, including profit
distributions, interest payments and trade and service-related foreign exchange transactions,