Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 220

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 220
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 offering or we would be required to return any amounts which were held in the trust account to our shareholders. When we evaluate
a potential business combination, we will consider the need to comply with the Antitrust Law and other relevant regulations which may
limit our ability to effect an acquisition or may result in our modifying or not pursuing a particular transaction.

If
we become directly subject to the recent scrutiny, criticism and negative publicity involving U.S.-listed Chinese companies, we may have
to expend significant resources to investigate and resolve the matter, which could harm our business operations and our reputation and
could result in a loss of your investment in our ordinary shares, especially if such matter cannot be addressed and resolved favorably.

Recently,
U.S. public companies that have substantially all of their operations in China have been subjected to intense scrutiny, criticism and
negative publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and
negative publicity has centered around financial and accounting irregularities, a lack of effective internal controls over financial
accounting, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result
of the scrutiny, criticism and negative publicity, the publicly traded stock of many U.S.-listed Chinese companies has sharply decreased
in value and, in some cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits and SEC
enforcement actions and are conducting internal and external investigations into the allegations. It is not clear what effect this sector-wide
scrutiny, criticism and negative publicity will have on our company if we target a PRC company for our initial business combination.
If we become the subject of any unfavorable allegations, whether or not such allegations are proven to be true, we will have to expend
significant resources to investigate such allegations and/or defend our company and our decisions. This situation may be a major distraction
to our management. If such allegations are not proven to be groundless, we will be severely hampered and your investment in our securities
post business combination could be rendered worthless.

50

Regulations
relating to the transfer of state-owned property rights in enterprises may increase the cost of our acquisitions and impose an additional
administrative burden on us.

The
legislation governing the acquisition of a PRC state-owned company contains stringent governmental regulations. The transfer of state-owned
property rights in enterprises must take place through a government-approved “state-owned asset exchange,” and the value
of the transferred