Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 114

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1
Chunk 114
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 ability to inject capital
in future Chinese subsidiaries and our future Chinese subsidiaries’ ability to change their registered capital or distribute profits
to the combined company or otherwise expose it or its PRC resident beneficial owners to liability and penalties under PRC laws.

In July 2014, SAFE promulgated the Circular on Relevant Issues Concerning
Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment Through Special Purpose
Vehicles, or SAFE Circular 37. SAFE Circular 37 requires PRC residents (including PRC individuals and 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