Company: ATMCW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004801
Chunk: 1581

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 1581
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 the General Office of the State Council jointly
issued a document to crack down on illegal activities in the securities market and promote the high-quality development of the capital
market, which, among other things, requires the relevant governmental authorities to strengthen cross-border oversight of law-enforcement
and judicial cooperation, to enhance supervision over China-based companies listed overseas, and to establish and improve the system
of extraterritorial application of the PRC securities laws. Since this document is relatively new, uncertainties still exist in relation
to how soon legislative or administrative regulation making bodies will respond and what existing or new laws or regulations or detailed
implementations and interpretations will be modified or promulgated, if any, and the potential impact such modified or new laws and regulations
will have on our future business combination with a company with major operation in China. Therefore, China Securities Regulatory Commission
and other Chinese government agencies may exert more oversight and control over offerings that are conducted overseas and foreign investment
in China-based issuers. Additional compliance procedures may be required in connection with our Initial Public Offering and our Business Combination process, and, if required, we cannot predict whether we will be able to obtain such approval. As a result, both you and us
face uncertainty about future actions by the PRC government that could significantly affect our ability to offer or continue to offer
securities to investors and cause the value of our securities to significantly decline or be worthless.

54

The
cash-flow structure of a post-acquisition company based in China or Hong Kong poses additional risks including, but not limited to, restrictions
on foreign exchange and restrictions on our ability to transfer cash between entities, across borders, and to U.S. investors.

The
PRC government also has significant authority to exert restrictions on foreign exchange and our ability to transfer cash between entities,
across borders, and to U.S. investors that may apply if we acquire a company that is based in China or Hong Kong in an initial business
combination. We will be subject to restrictions on dividend payments as current regulations in China would permit our PRC subsidiary
to pay dividends to us only out of its accumulated distributable profits, if any, determined in accordance with Chinese accounting standards
and regulations. In addition, our PRC subsidiary 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. See “—If we successfully consummate a Business Combination
with a target business with primary operations in the