Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 314

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 314
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RC-based company,
we may rely on dividend payments from such PRC subsidiaries to fund any cash and financing requirements we may have. Under existing PRC
foreign exchange regulations, payments in foreign currencies of current account items, including profit distributions, interest payments
and trade and service-related foreign exchange transactions, can be made without prior approvals of the SAFE, by complying with certain
procedural requirements. Specifically, under the existing exchange restrictions, without prior approvals of the SAFE, cash generated from
the operations of PRC operating companies in the PRC may be used to pay dividends. However, approvals from or registration with appropriate
government authorities are required where Renminbi is to be converted into foreign currencies and remitted out of the PRC to pay capital
expenses such as the repayment of loans denominated in foreign currencies.

As a result, the PRC subsidiaries of our future combined company would
need to obtain the SAFE approval to pay off their debt in a currency other than Renminbi owed to any entities outside the PRC or to make
other capital expenditure payments outside the PRC in a currency other than Renminbi.

54

In light of the flood of capital outflows in 2016 due to the weakening
Renminbi, the PRC government has imposed more restrictive foreign exchange policies and stepped up scrutiny over major outbound capital
movements including overseas direct investment. More restrictions and substantial vetting processes have been put in place by the SAFE
to regulate cross-border transactions that fall under the capital account transactions. The PRC government may in the future at its discretion
further restrict access to foreign currencies for current account transactions. If the foreign exchange control regulations prevent any
future combined company from obtaining sufficient foreign currencies from its PRC subsidiaries to satisfy its capital demands, the future
combined company may not be able to pay dividends in foreign currencies to its stockholders.

If we decide to acquire a PRC-based company, the PRC government
may exert substantial interventions and influences on our combined company’s operations at any time. Any new policies, regulations,
rules, actions or laws by the PRC government may subject our combined company to material changes in operations, may cause the value of
our securities to significantly decline or be worthless, and may completely hinder our ability to offer or continue securities to investors.

Though we currently do not have any PRC subsidiary or PRC operations
and a majority of our management are located outside the PRC, we may pursue a business combination with a company doing business in the
PR