Company: YCY-WT
Filing Date: 2025-08-22
Form Type: S-1
Source: 0001213900-25-079440
Chunk: 195

Company: AA Mission Acquisition Corp. II
Filing Date: 2025-08-22
Form: S-1
Chunk 195
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 own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other payments to us. If we merge with a China-based operating company, then PRC regulation on loans to, and direct investment in, PRC entities by offshore holding companies and governmental control in currency conversion may delay or prevent us from making loans to or making additional capital contributions to our PRC entity, if any, which could materially and adversely affect our liquidity and our ability to fund and expand our business. We are an exempted company incorporated in the Cayman Islands with limited liability structured as a blank check company and may conduct our operations in China through a PRC entity. As permitted under PRC laws and regulations, we may make loans to our PRC entity subject to the approval from governmental authorities and limitation of amount, or we may make additional capital contributions to our PRC entity. Furthermore, loans by us to our PRC entity to finance its activities cannot exceed the difference between their respective total project investment amount and registered capital or 2.5 times of their net worth and capital contributions to our PRC entity will be subject to the requirement of making necessary filings in the Foreign Investment Comprehensive Management Information System and registration with other governmental authorities in China. 113 The SAFE promulgated Circular 19 in replacement of the SAFE Circular 142. According to SAFE Circular19, the flow and use of the RMB capital converted from foreign currency -denominatedregistered capital of a foreign -investedcompany is regulated such that RMB capital may not be used for the issuance of RMB entrusted loans, the repayment of inter -enterpriseloans or the repayment of bank loans that have been transferred to a third party. Although SAFE Circular 19 allows RMB capital converted from foreign currency -denominatedregistered capital of a foreign -investedenterprise to be used for equity investments within the PRC, it also reiterates the principle that RMB converted from the foreign currency -denominatedcapital of a foreign -investedcompany may not be directly or indirectly used for purposes beyond its business scope. Thus, it is unclear whether the SAFE will permit such capital to be used for equity investments in the PRC in actual practice. The SAFE promulgated the Notice of the State Administration of Foreign Exchange on Reforming and Standardizing the Foreign Exchange Settlement Management Policy of Capital Account, or SAFE Circular16, effective on June 9, 2016, which reiterates some of the rules set forth in SAFE Circular19, but changes the