Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 324

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 324
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 Nonresident Enterprises, or SAT Circular 37. Effective from December 2017, SAT Circular 37, among others, repealed
the Circular 698 and amended certain provisions in Bulletin 7 and further clarifies the practice and procedure of the withholding of nonresident
enterprise income tax. According to SAT Circular 37, where the non-resident enterprise fails to declare the tax payable pursuant to Article
39 of the Enterprise Income Tax, the tax authority may order it to pay the tax due within required time limits, and the non-resident enterprise
shall declare and pay the tax payable within such time limits specified by the tax authority. However, if the non-resident enterprise
voluntarily declares and pays the tax payable before the tax authority orders it to do so within required time limits, it shall be deemed
that such enterprise has paid the tax in time.

If we decide to pursue an initial business combination with a PRC-based
company, we may face uncertainties as to the reporting and other implications where PRC taxable assets are involved. We may be subject
to filing obligations or taxed if we are the transferor in such transactions, and may be subject to withholding obligations if we are
the transferee in such transactions, under Bulletin 7 and SAT Circular 37. For any transfer of our shares by investors who are non-PRC
resident enterprises, our PRC subsidiary may be requested to assist in the filing under the SAT circulars. As a result, we may be required
to expend valuable resources to comply with the SAT circulars or to request the relevant transferors from whom we purchase taxable assets
to comply with these circulars, or to establish that we should not be taxed under these circulars, which may have a material adverse effect
on our financial condition and results of operations.

59

If we decide to conduct an initial business combination with a PRC
domestic company, PRC regulations relating to offshore investment activities by PRC residents may limit our ability to inject capital
in future Chinese subsidiaries and our future Chinese subsidiaries’ ability to change their registered capital or distribute profits
to the combined company or otherwise expose it or its PRC resident beneficial owners to liability and penalties under PRC laws.

In July 2014, 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