Company: NBRG
Filing Date: 2025-10-22
Form Type: POS462C
Source: 0001213900-25-101203
Chunk: 127

Company: Newbridge Acquisition Ltd
Filing Date: 2025-10-22
Form: POS462C
Chunk 127
---
 we do not yet have any subsidiaries, and we have not received, declared or made any dividends or distributions. Exchange controls that exist in the PRC may restrict or prevent us from using the proceeds of this offering to acquire a target company in the PRC and limit our ability to utilize our cash flow effectively following our initial business combination. China’s State Administration of Foreign Exchange, or SAFE, promulgated the Notice of the State Administration of Foreign Exchange on Reforming the Administration of Foreign Exchange Settlement of Capital of Foreign -investedEnterprises, or Circular19, effective on June 1, 2015, in replacement of the Circular on the Relevant Operating Issues Concerning the Improvement of the Administration of the Payment and Settlement of Foreign Currency Capital of Foreign -InvestedEnterprises, or SAFE Circular 142, the Notice from the State Administration of Foreign Exchange on Relevant Issues Concerning Strengthening the Administration of Foreign Exchange Businesses, or Circular59, and the Circular on Further Clarification and Regulation of the Issues Concerning the Administration of Certain Capital Account Foreign Exchange Businesses, or Circular 45. According to Circular19, the flow and use of the RMB capital converted from foreign currency -denominatedregistered capital of a foreign -investedcompany is regulated such that RMB capital may not be used for the issuance of RMB entrusted loans, the repayment of inter -enterpriseloans or the repayment of banks loans that have been transferred to a third party. Although Circular 19 allows RMB capital converted from foreign currency -denominatedregistered capital of a foreign -investedenterprise to be used for equity investments within the PRC, it also reiterates the principle that RMB converted from the foreign currency -denominatedcapital of a foreign -investedcompany may not be directly or indirectly used for purposes beyond its business scope. Thus, it is unclear whether SAFE will permit such capital to be used for equity investments in the PRC in actual practice. SAFE promulgated the Notice of the State Administration of Foreign Exchange on Reforming and Standardizing the Foreign Exchange Settlement Management Policy of Capital Account, or Circular16, effective on June 9, 2016, which reiterates some of the rules set forth in Circular19, but changes the prohibition against using RMB capital converted from foreign currency -denominatedregistered capital of a foreign -investedcompany to issue RMB entrusted loans to a prohibition against using such capital to issue loans to non -associatedenterprises. Violations of SAFE Circular 19 and Circular 16 could