Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 103

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1
Chunk 103
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 collecting and retaining internal or customer data, such target might be subject to the relevant cybersecurity laws and regulations, including the PRC Cybersecurity Law and the PIPL, and the cybersecurity review before effecting a business combination.

If, for example, our potential
initial business combination is with a target business operating in the PRC, such as the Proposed GRT Business Combination, and if the
New Measures mandates clearance of cybersecurity review and other specific actions to be completed by the target business, we may face
uncertainties as to whether such clearance can be timely obtained, or at all, and incur additional time delays to complete any such acquisition.
Cybersecurity review could also result in negative publicity with respect to our initial business combination and diversion of our managerial
and financial resources. We may also be prevented from pursuing certain investment opportunities if the PRC government considers that
the potential investments will result in a significant national security issue. In addition, due to limited business combination period
that we have, we may avoid searching for a target and completing an initial business combination that will be subject to cybersecurity
review. Therefore, we may avoid searching for a company which could be deemed as a network platform operator and possesses information
of more than one million users.

Further, if the combined company, after business combination, is deemed
to be a network platform operator which holds personal information of more than one million users, it will be subject to such cybersecurity
review. The combined company could become subject to enhanced cybersecurity review or investigations launched by PRC regulators in the
future and may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure
to comply. Additionally, any failure or delay in the completion of the cybersecurity review procedures or any other non-compliance with
the related laws and regulations may result in fines or other penalties, including suspension of business, website closure, and revocation
of prerequisite licenses, as well as reputational damage or legal proceedings or actions, which may have material adverse effect on the
combined company’s business, financial condition or results of operations and any such action could cause the value of our securities
to significantly decline or be worthless. As uncertainties remain regarding the interpretation and implementation of these laws and regulations,
we cannot assure you that the combined company following a business combination will comply with such regulations in all respects and
it may be ordered to rectify or terminate any actions that are deemed illegal by regulatory authorities. As a result, both you and we
face uncertainty about future actions by the