Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 104

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1
Chunk 104
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 PRC government that 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.

58

Other PRC governmental authorities may take the view now or in the future that an approval from them is required for an overseas offering by a company affiliated with Chinese businesses or persons or a business combination with a target business based in and primarily operating in China.

The Regulations on Mergers
and Acquisitions of Domestic Companies by Foreign Investors (the “M&A Rules”), adopted by six PRC regulatory agencies
in 2006, and amended in 2009, require an offshore special purpose vehicle formed for the purpose of an overseas listing of securities
in a PRC company to obtain the approval of the CSRC prior to the listing and trading of such special purpose vehicle’s securities
on an overseas stock exchange. The scope of the M&A Rules covers two types of transactions: (a) equity deals where the acquisition
by a foreign investor, i.e., the offshore special purpose vehicle, of equity in a “PRC domestic company,” and (b) asset deals
where the acquisition by an offshore special purpose vehicle of the assets of a “PRC domestic company.” Neither the equity
deals or the asset deals will be involved in our business combination process with a China-based target for the reason that the offshore
special purpose vehicle of such China-based target directly holds shares through the wholly foreign owned enterprise(s) or WFOE, which
are established by means of direct investment rather than by equity deals or asset deals under the M&A Rules. To date, the CSRC has
not issued any definitive rules or interpretations concerning whether offerings such as the indirect listing of a China-based entity as
part of the business combination are subject to the CSRC approval procedures under the M&A Rules. As a result, based on our management’s
understanding of the current PRC laws, rules, regulations and the local market practices, the CSRC’s approval under the M&A
Rules will not be required in the context of our business combination with a China-based target. However, substantial uncertainty remains
regarding the scope and applicability of the M&A Rules to offshore special purpose vehicles and the above analysis are subject to
any new laws, rules and regulations or detailed implementation and interpretations in any form relating to the M&A Rules. We cannot
assure you that relevant PRC governmental agencies, including the CSRC, would reach the same conclusion as we