Company: ATMCW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004801
Chunk: 1592

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 1592
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 government may at its discretion restrict access to foreign currencies for current account transactions
in the future, we cannot assure you that we will be able to complete the necessary government registrations or obtain the necessary government
approvals on a timely basis, if at all, with respect to future loans by us to our PRC entity or with respect to future capital contributions
by us to our PRC entity. If we merge with a China-based operating company, and if we fail to complete such registrations or obtain such
approvals, our ability to use the proceeds from our Initial Public Offering and to capitalize or otherwise fund our PRC operations may
be negatively affected, which could materially and adversely affect our liquidity and our ability to fund and expand our business.

If
we successfully consummate a Business Combination with a target business with primary operations in the PRC, we will be subject to restrictions
on dividend payments following consummation of our initial business combination.

After
we consummate our initial business combination, we may rely on dividends and other distributions from our operating company to provide
us with cash flow and to meet our other obligations. Current regulations in China would permit our operating company in China to pay
dividends to us only out of its accumulated distributable profits, if any, determined in accordance with Chinese accounting standards
and regulations.

60

In
addition, our operating company in China will be required to set aside at least 10% (up to an aggregate amount equal to half of its registered
capital) of its accumulated profits each year. Each of our PRC subsidiaries as a foreign invested enterprise, is also required to further
set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined
at its discretion. Such cash reserve may not be distributed as cash dividends. In addition, if our operating company in China incurs
debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other payments
to us.

In
addition, the Enterprise Income Tax Law and its implementation rules provide that a withholding tax rate of up to 10% will be applicable
to dividends payable by Chinese companies to non-PRC-resident enterprises unless otherwise exempted or reduced according to treaties
or arrangements between the PRC central government and governments of other countries or regions where the non-PRC resident enterprises
are incorporated.

Governmental
control of currency conversion may limit our ability to utilize