Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 78

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 78
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its principal business operations in China. Furthermore, if CSRC approval is required for our initial business combination, it is uncertain
whether we are able to and how long it will take for us to obtain such approval, and, even if we obtain such CSRC approval, the approval
could be rescinded. Any failure to obtain or any delay in obtaining CSRC approval for our potential initial business combination with
a PRC target company, or a rescission of such approval may subject us to sanctions imposed by the CSRC or other PRC regulatory authorities,
which could include fines and penalties on our operations in China, restrictions or limitations on our ability to pay dividends outside
of China, and other forms of sanctions that may materially and adversely affect our business, financial condition, and results of operations
and the value of our securities. To avoid such risk, we may avoid completing an initial business combination with such a target business
and instead pursue other opportunities, which may limit the pool of attractive targets. As a result, our search for a target company
may be adversely affected, which could result in a material change in our operations and/or the value of the securities we are registering
for sale.

U.S.
laws and regulations, such as the HFCAA, may restrict or eliminate our ability to complete a business combination with certain companies,
particularly those acquisition candidates with substantial operations in mainland China or Hong Kong.

Pursuant
to the Holding Foreign Companies Accountable Act (the “HFCAA”) and related regulations, if we have filed an audit report
issued by a registered public accounting firm that the PCAOB has determined that it is unable to inspect and investigate completely,
the SEC will identify us as a “Commission-identified Issuer,” and the trading of our securities on any U.S. national securities
exchanges, as well as any over-the-counter trading in the United States, will be prohibited if we are identified as a Commission-identified
Issuer for two consecutive years. On December 16, 2021, the PCAOB issued a report on its determinations that it is unable to inspect
or investigate completely PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong, and identified the
registered public accounting firms in mainland China and Hong Kong that were subject to such determinations. In August 2022, the PCAOB,
the CSRC and the Ministry of Finance of the PRC signed the Statement of Protocol, which establishes a specific and accountable framework
for the PCAOB to conduct inspections and investigations of PCA