Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 325

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 325
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 PRC corporate entities as well as
foreign individuals that are deemed as PRC residents for foreign exchange administration purpose) to register with SAFE or its local branches
in connection with their direct or indirect offshore investment activities. SAFE Circular 37 is applicable to our stockholders who are
PRC residents and may be applicable to any offshore acquisitions that we make in the future.

Under SAFE Circular 37, PRC residents who make, or have prior to the
implementation of SAFE Circular 37 made, direct or indirect investments in offshore special purpose vehicles, or SPVs, will be required
to register such investments with SAFE or its local branches. In addition, any PRC resident who is a direct or indirect shareholder of
an SPV, is required to update its filed registration with the local branch of SAFE with respect to that SPV, to reflect any material change,
including, among other things, any major change of a PRC resident shareholder, name or term of operation of the SPVs, or any increase
or reduction of the SPVs’ registered capital, share transfer or swap, merger or division. Moreover, any subsidiary of such SPV in
the PRC is required to urge the PRC resident shareholders to update their registration with the local branch of SAFE. If any PRC shareholder
of such SPV fails to make the required registration or to update the previously filed registration, the subsidiary of such SPV in the
PRC may be prohibited from distributing its profits or the proceeds from any capital reduction, share transfer or liquidation to the SPV,
and the SPV may also be prohibited from making additional capital contributions into its subsidiary in the PRC. On February 13, 2015,
SAFE promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice
13, which became effective on June 1, 2015. Under SAFE Notice 13, applications for foreign exchange registration of inbound foreign direct
investments and outbound overseas direct investments, including those required under SAFE Circular 37, will be filed with qualified banks
instead of SAFE or its branches. The qualified banks will directly examine the applications and accept registrations under the supervision
of SAFE.

We cannot provide assurance that our stockholders that are PRC residents
will at all times comply with, or in the future make or obtain any applicable registrations or approvals required by, SAFE Circular 37
or other related rules. If we decide to acquire a PRC domestic company, the failure or inability