Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 255

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 255
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RC laws, rules, regulations and the local market practices, the CSRC’s approval under the M&A
Rules will not be required in the context of our business combination with a China-based target. However, substantial uncertainty remains
regarding the scope and applicability of the M&A Rules to offshore special purpose vehicles and the above analysis are subject to
any new laws, rules and regulations or detailed implementation and interpretations in any form relating to the M&A Rules. We cannot
assure you that relevant PRC governmental agencies, including the CSRC, would reach the same conclusion as we do. It is possible that
we may need to obtain approvals or permissions from the CSRC in order for us to complete a business combination with a China-based target
pursuant to the M&A Rules, such as with respect to the Proposed GRT Business Combination. If we are required to obtain such approvals,
we cannot assure we will be able to receive them in a timely manner, or at all.

On December 27, 2021, the NDRC and the MOFCOM promulgated Special Administrative Measures (Negative List) for the Access of Foreign Investment (2021 Version), effective as of January 1, 2022 (the “Negative List”). Compared to the previous version, there are no specific industries added to the list but it for the first time declares China’s jurisdiction over (and detailed regulatory requirements on) overseas listings made by Chinese businesses in the so-called “Prohibited Industries.” According to Article 6 of the Negative List, domestic enterprises engaging in businesses in which foreign investment is prohibited shall obtain approval from the relevant authorities before offering and listing their shares on an overseas stock exchange. In addition, certain foreign investors shall not be involved in the operation or management of the relevant enterprise, and shareholding percentage restrictions under relevant domestic securities investment management regulations shall apply to such foreign investors. The intended scope of such jurisdiction was further clarified by NDRC officials on a press conference held on January 18, 2022.

Based on our understanding of the current PRC laws and regulations, no prior permission is required under the M&A Rules, the Opinions or the Negative List from any PRC governmental authorities (including the CSRC) for the IPO, given that: (a) the CSRC currently has not issued any definitive rule or interpretation concerning whether offerings like ours are subject to the M&A Rules; (b) our company is a blank check company newly incorporated in Cayman Islands rather than China and currently we conduct no business