Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 116

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 116
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 HK may be subject to various types of government and regulatory interference, such as requiring the operating entities to conduct a cyber security review. HCYC HK may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure to comply. HCYC HK’s operations could be adversely affected by existing or future laws and regulations relating to the medical industry.

Any of these events could result in a material change in the operations of the operating entities and the value of our ordinary shares. The Chinese government has indicated an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers. Any such actions by the Chinese government could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of our Ordinary Shares to significantly decline or be worthless.

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Risks of license revocation due to non-compliant broker referral practices in insurance sales

Notwithstanding HCYC has made
every effort to adopt and reinforce its internal control system to prevent unlicensed selling by its referrers. This includes implementing
rigorous compliance measures, conducting regular checking, and providing comprehensive training to ensure adherence to regulatory standards,
HCYC’s current model may still potentially pose a non-compliance risk as HCYC cannot guarantee the conduct of the referrals not
to engage in the selling or promotion of long-term insurance policies to customers, including but not limited to visitors from Mainland
China, who may not be fully aware of the licensing requirements and regulatory framework governing the insurance industry in Hong Kong.

The Insurance Authority of Hong
Kong (the “IA”) strictly regulates the sale and promotion of insurance products within the jurisdiction. Under
the relevant law and regulations in Hong Kong, only licensed insurance intermediaries are authorized to engage in the distribution of
insurance policies. Any arrangement or business model that encourages or facilitates unlicensed selling, directly or indirectly, constitutes
a violation of Hong Kong law and regulatory requirements. Should the IA determine that HCYC is operating in a manner that violates regulatory
standards-specifically through a broker referral business model that incentivizes unlicensed selling-there is a substantial
risk that the IA may take enforcement actions against HCYC. Such actions may include, but are not limited to, the suspension or revocation
of HCYC’s insurance broker license. The revocation of the license would effectively terminate HCYC’s ability to legally
operate as an insurance broker in Hong Kong, resulting in significant financial and reput