Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 81

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 81
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 criteria established by the State Council, we must file with the antitrust authority under the
PRC State Council prior to conducting the contemplated business combination. If the antitrust authority decides not to further investigate
whether the contemplated business combination has the effect of precluding or impeding competition or fails to make a decision within
30 days from receipt of relevant materials, we may proceed to consummate the contemplated business combination. If the antitrust authority
decides to prohibit the contemplated business combination after further investigation, we must terminate such business combination and
would then be forced to either attempt to complete a new business combination if it is within 15 months from the closing of our initial
public offering or we would be required to return any amounts which were held in the trust account to our shareholders. When we evaluate
a potential business combination, we will consider the need to comply with the Antitrust Law and other relevant regulations which may
limit our ability to effect an acquisition or may result in our modifying or not pursuing a particular transaction.

If
we become directly subject to the recent scrutiny, criticism and negative publicity involving U.S.-listed Chinese companies, we may have
to expend significant resources to investigate and resolve the matter, which could harm our business operations and our reputation and
could result in a loss of your investment in our ordinary shares, especially if such matter cannot be addressed and resolved favorably.

Recently,
U.S. public companies that have substantially all of their operations in China have been subjected to intense scrutiny, criticism and
negative publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and
negative publicity has centered around financial and accounting irregularities, a lack of effective internal controls over financial
accounting, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result
of the scrutiny, criticism and negative publicity, the publicly traded stock of many U.S.-listed Chinese companies has sharply decreased
in value and, in some cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits and SEC
enforcement actions and are conducting internal and external investigations into the allegations. It is not clear what effect this sector-wide
scrutiny, criticism and negative publicity will have on our company if we target a PRC company for our initial business combination.
If we become the subject of any unfavorable allegations, whether or not such allegations are proven to be true, we will have to expend
significant resources to investigate such allegations