Company: ATMCW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004801
Chunk: 1785

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1785
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If
we successfully consummate a Business Combination with a target business with primary operations in the PRC, we will be subject to restrictions
on dividend payments following consummation of our initial business combination.

After
we consummate our initial business combination, we may rely on dividends and other distributions from our operating company to provide
us with cash flow and to meet our other obligations. Current regulations in China would permit our operating company in China to pay
dividends to us only out of its accumulated distributable profits, if any, determined in accordance with Chinese accounting standards
and regulations.

60

In
addition, our operating company in China will be required to set aside at least 10% (up to an aggregate amount equal to half of its registered
capital) of its accumulated profits each year. Each of our PRC subsidiaries as a foreign invested enterprise, is also required to further
set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined
at its discretion. Such cash reserve may not be distributed as cash dividends. In addition, if our operating company in China incurs
debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other payments
to us.

In
addition, the Enterprise Income Tax Law and its implementation rules provide that a withholding tax rate of up to 10% will be applicable
to dividends payable by Chinese companies to non-PRC-resident enterprises unless otherwise exempted or reduced according to treaties
or arrangements between the PRC central government and governments of other countries or regions where the non-PRC resident enterprises
are incorporated.

Governmental
control of currency conversion may limit our ability to utilize our net revenue effectively and affect the value of your investment.

Following
our initial business combination with a PRC target company, we will be subject to the PRC’s rules and regulations on currency conversion.
In the PRC, the SAFE regulates the conversion of the Renminbi into foreign currencies. The PRC government imposes controls on the convertibility
of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China.

Under
PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and
service-related foreign exchange transactions, can be made in foreign currencies without prior approval of SAFE by complying with certain
procedural requirements. Under existing exchange restrictions