Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 313

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 313
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 in the PRC that are listed in the United States have negatively impacted stock prices for these companies. Various
equity-based research organizations have published reports on PRC-based companies after examining their corporate governance practices,
related party transactions, sales practices and financial statements, and these reports have led to special investigations and listing
suspensions on U.S. national exchanges. Any similar scrutiny of our assets and operations, in the PRC, if any, regardless of its lack
of merit, could result in a diversion of management resources and energy, potential costs to defend ourselves against rumors, decreases
and volatility in the trading price of our securities, and increased directors’ and officers’ insurance premiums and could
have an adverse effect upon our business, including our results of operations, financial condition, cash flows and prospects.

In the event 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 the consummation
of our initial business combination.

We may consummate a business combination with a target business based
in and primarily operating in the PRC through a series of contractual arrangements. After such business combination, the combined company
may rely on dividends and other distributions from the PRC subsidiaries of the combined company to provide it with cash flow and to meet
its other obligations. Current regulations in the PRC would permit the combined company’s PRC subsidiaries to pay dividends only
out of their accumulated distributable profits, if any, determined in accordance with Chinese accounting standards and regulations. In
addition, the combined company’s PRC subsidiaries in the PRC will be required to set aside at least 10% of their after-tax profits
each year to fund their respective statutory reserves (up to an aggregate amount equal to half of their respective registered capital).
Such cash reserve may not be distributed as cash dividends.

In addition, if the combined company’s PRC subsidiaries incur
debt on their own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make payments
to the combined company or its PRC subsidiaries, as applicable.

PRC governmental control of currency conversion may limit the ability
of any future operating companies in the PRC to utilize their revenues effectively and may affect the value of your investment.

The PRC government imposes controls on the convertibility of the Renminbi
into foreign currencies and, in certain cases, the remittance of currency out of the PRC. If we decide to acquire a P