Company: BAYAU
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001641172-25-002125
Chunk: 89

Company: Bayview Acquisition Corp
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1
Chunk 89
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 converted from the foreign currency-denominated capital of a foreign-invested company 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 Circular 16, effective on June 9, 2016, which reiterates some
of the rules set forth in Circular 19, but changes the prohibition against using RMB capital converted from foreign currency-denominated
registered capital of a foreign-invested company to issue RMB entrusted loans to a prohibition against using such capital to issue loans
to non-associated enterprises. Violations of SAFE Circular 19 and Circular 16 could result in administrative penalties.

As
such, Circular 19 and Circular 16 may significantly limit our ability to transfer the proceeds of the IPO to a PRC target company and
the use of such proceeds by the PRC target company. In addition, following our initial business combination with a PRC target company,
we will be subject to the PRC’s rules and regulations on currency conversion. In the PRC, the SAFE regulates the conversion of
the Renminbi into foreign currencies. Currently, FIEs are required to apply to the SAFE for “Foreign Exchange Registration Certificates
for FIEs.” Following our initial business combination, we will likely be an FIE as a result of our ownership structure. With such
registration certificates, which need to be renewed annually, FIEs are allowed to open foreign currency accounts including a “basic
account” and “capital account.” Currency conversion within the scope of the “basic account,” such as remittance
of foreign currencies for payment of dividends, can be effected without requiring the approval of the SAFE. However, conversion of currency
in the “capital account,” including capital items such as direct investment, loans and securities, still require approval
of the SAFE.

We
cannot assure you the PRC regulatory authorities will not impose further restrictions on the convertibility of the Renminbi. Any future
restrictions on currency exchanges may limit our ability to use the proceeds of the IPO in an initial business combination with a PRC
target company and the use our cash flow for the distribution of dividends to our shareholders or to fund operations we may have outside
of the PRC.

Our
initial business combination