Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 97

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1
Chunk 97
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’ interests in an acquisition of a PRC business or assets.

Substantial uncertainties exist with respect to the interpretation
and implementation of the Foreign Investment Law and how it may impact our ability to pursue a business combination with a PRC-based business.

The Foreign Investment Law replaced the trio of prior laws regulating
foreign investment in the PRC, namely, the Sino-Foreign Equity Joint Venture Enterprise Law, the Sino-Foreign Cooperative Joint Venture
Enterprise Law and the Wholly Foreign-Invested Enterprise Law, together with their implementation rules and ancillary regulations, and
became the legal foundation for foreign investment in the PRC from January 1, 2020. Meanwhile, the Implementation Regulation of the Foreign
Investment Law and the Measures for Reporting of Information on Foreign Investment came into effect as of January 1, 2020, which clarified
and elaborated on the relevant provisions of the Foreign Investment Law.

The Foreign Investment Law sets out the basic regulatory framework
for foreign investments and proposes to implement a system of pre-entry national treatment with a negative list for foreign investments,
pursuant to which (i) foreign entities and individuals are prohibited from investing in the areas that are not open to foreign investments,
(ii) foreign investments in the restricted industries must satisfy certain requirements under the law, and (iii) foreign investments in
business sectors outside of the negative list will be treated equally with domestic investments. The Foreign Investment Law also sets
forth necessary mechanisms to facilitate, protect and manage foreign investments and proposes to establish a foreign investment information
reporting system, through which foreign investors or foreign-invested enterprises are required to submit an initial report, report of
changes, report of deregistration and an annual report relating to their investments to the MOFCOM or its local branches. As the Foreign
Investment Law is still relatively new, it is unclear how the regulations will be interpreted and implemented by the relevant government
authorities.

Changes in the policies, regulations, rules, and the enforcement
of laws of the PRC government may be quick with little advance notice and could have a significant impact upon our ability to operate
profitably in the PRC.

If we consummate our initial business combination with a target with
principal operations in the PRC, our combined company may conduct most of our operations and most of our revenue is generated in the PRC.
Accordingly, economic, political and legal developments in the PRC would significantly affect our combined company’s business, financial
condition, results of operations and