Company: BAYAU
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001641172-25-002125
Chunk: 253

Company: Bayview Acquisition Corp
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1A
Chunk 253
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 and other distributions from our operating company to provide us with cash flow and to meet our other obligations.

  45 

Contractual
arrangements we enter into with potential future subsidiaries and affiliated entities or acquisitions of offshore entities that conduct
operations through affiliates in the PRC may be subject to a high level of scrutiny by the relevant tax authorities.

Under
the laws of the PRC, arrangements and transactions among related parties may be subject to audit or challenge by the relevant tax authorities.
If any of the transactions we enter into with potential future subsidiaries and affiliated entities are found not to be on an arm’s-length
basis, or to result in an unreasonable reduction in tax under local law, the relevant tax authorities may have the authority to disallow
any tax savings, adjust the profits and losses of such potential future local entities and assess late payment interest and penalties.
A finding by the relevant tax authorities that we are ineligible for any such tax savings, or that any of our possible future affiliated
entities are not eligible for tax exemptions, would substantially increase our possible future taxes and thus reduce our net income and
the value of a shareholder’s investment. In addition, in the event that in connection with an acquisition of an offshore entity
that conducted its operations through affiliates in the PRC, the sellers of such entities failed to pay any taxes required under local
law, the relevant tax authorities could require us to withhold and pay the tax, together with late-payment interest and penalties. The
occurrence of any of the foregoing could have a negative impact on our operating results and financial condition.

If
the government of the PRC finds that the agreements we entered into to acquire control of a target business do not comply with local
governmental restrictions on foreign investment, or if these regulations or the interpretation of existing regulations change in the
future, we could be subject to significant penalties or be forced to relinquish our interests in those operations or we could be unable
to assert our contractual control rights over the assets of the post-combination target company, which could cause the value of our Ordinary
Shares depreciate significantly or become worthless.

The
PRC currently prohibits and/or restricts foreign ownership in certain “important industries,” including telecommunications,
food production and heavy equipment. There are uncertainties under certain regulations whether obtaining a majority interest through
contractual arrangements will comply with regulations prohibiting or restricting foreign ownership in certain industries. For example,
the PRC may apply restrictions in other industries in the future. In addition, there can be restrictions on the foreign