Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 212

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 212
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 a business combination, we will have to evaluate
the corporate governance of a target and the business environment, and in accordance with United States laws for reporting companies
take steps to implement practices that will cause compliance with all applicable rules and accounting practices. Notwithstanding these
intended efforts, there may be endemic practices and local laws that could add risk to an investment we ultimately make and that result
in an adverse effect on our operations and financial results.

46

Risks
Associated with Acquiring and Operating a Target Business with its Primary Operations in China 

As
set forth herein, our efforts in identifying a prospective target business will not be limited to a particular country. We may target
an initial business combination with a company located in China. Because of such potential ties to China, we may be subjected to Chinese
laws, rules and regulations. Accordingly, in addition to the risk factors referred above, we have set forth some of the primary risks
we have identified in seeking to consummate our initial business combination with a company having its primary operations in China.

The
PRC government has indicated its intent to intervene in or influence a PRC company’s business operations at any time or to exert
more oversight and control over offerings conducted overseas and foreign investment in PRC-based issuers. This could result in a material
change in a PRC company’s business operations post-business combination and/or the value of its securities. Additionally, governmental
and regulatory interference could significantly limit or completely hinder a target company’s ability to offer or continue to offer
securities to investors post-business combination and cause the value of such securities to significantly decline or be worthless.

Our
sponsor is predominantly controlled by a PRC national, and we may seek to acquire a company that is based in China in an initial business
combination. We may be subject to certain risks relating to regulatory oversight by the PRC government. This may significantly limit
our ability to search for candidates for our initial business combination. In particular, changes in the policies, regulations, rules,
and the enforcement of laws of the PRC government may be adopted quickly with little advance notice. The PRC government may also intervene
or influence our search for a target business or the completion of an initial business combination at any time because our sponsor is
predominantly controlled by a PRC national. This could significantly and negatively impact our search for a target business and/or the
value of our securities.

The
PRC government has recently sought to exert more oversight and control over offerings that are conducted overseas