Company: BAYAU
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001641172-25-002125
Chunk: 256

Company: Bayview Acquisition Corp
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1A
Chunk 256
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 damages, which we cannot assure will be sufficient
to offset the cost of enforcement and may adversely affect the benefits we expect to receive from the business combination.

PRC
regulations relating to offshore investment activities by PRC residents may limit our ability to inject capital in our Chinese subsidiaries
and Chinese subsidiaries’ ability to change their registered capital or distribute profits to us or otherwise expose us or our
PRC resident beneficial owners to liability and penalties under PRC laws.

In
July 2014, the State Administration of Foreign Exchange of the PRC, or SAFE promulgated the Circular on Relevant Issues Concerning Foreign
Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment Through Special Purpose Vehicles,
or SAFE Circular 37. SAFE Circular 37 requires PRC residents (including PRC individuals and PRC corporate entities as well as foreign
individuals that are deemed as PRC residents for foreign exchange administration purpose) to register with SAFE or its local branches
in connection with their direct or indirect offshore investment activities. SAFE Circular 37 is applicable to our shareholders who are
PRC residents and may be applicable to any offshore acquisitions that we make in the future. Under SAFE Circular 37, PRC residents who
make, or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special purpose vehicles,
or SPVs, will be required to register such investments with SAFE or its local branches. In addition, any PRC resident who is a direct
or indirect shareholder of an SPV, is required to update its filed registration with the local branch of SAFE with respect to that SPV,
to reflect any material change, including, among other things, any major change of a PRC resident shareholder, name or term of operation
of the SPVs, or any increase or reduction of the SPVs’ registered capital, share transfer or swap, merger or division. Moreover,
any subsidiary of such SPV in China is required to urge the PRC resident shareholders to update their registration with the local branch
of SAFE. If any PRC shareholder of such SPV fails to make the required registration or to update the previously filed registration, the
subsidiary of such SPV in China may be prohibited from distributing its profits or the proceeds from any capital reduction, share transfer
or liquidation to the SPV, and the SPV may also be prohibited from making additional capital contributions into its subsidiary in China.
On February 13, 2015, SAFE promulgated a