Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 95

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1
Chunk 95
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 Security Law and the Foreign Investment Law and became effective on January 18, 2021. The New FISR Measures further expand
the scope of national security review on foreign investment compared to the existing rules, while leaving substantial room for interpretation
and speculation.

If in the future, we pursue a business combination with a PRC-based
business, complying with the requirements of the above-mentioned regulations and other relevant rules to complete such transactions could
be time-consuming, and any required approval processes, including obtaining approval from the MOFCOM, any other relevant PRC governmental
authorities or their respective local counterparts may delay or inhibit our ability to complete such transactions, which could affect
our ability to expand our business or maintain our market share.

As a result of the M&A Rules implemented on September 8, 2006
relating to acquisitions of assets and equity interests of PRC companies by foreign investors, it is expected that acquisitions will take
longer and be subject to economic scrutiny by the PRC government authorities such that we may not be able to complete a transaction.

On September 8, 2006, the MOFCOM, together with several other government
agencies, promulgated a comprehensive set of regulations governing the approval process by which a PRC company may participate in an acquisition
of its assets or its equity interests and by which a PRC company may obtain public trading of its securities on a securities exchange
outside the PRC. Although there was a complex series of regulations in place prior to September 8, 2006 for approval of PRC enterprises
that were administered by a combination of provincial and centralized agencies, the new regulations have largely centralized and expanded
the approval process to the MOFCOM, the State Administration of Industry and Commerce, the SAFE or its branch offices, the State Asset
Supervision and Administration Commission, and the CSRC. Depending on the structure of the transaction as determined once a definitive
agreement is executed, these regulations will require the Chinese parties to make a series of applications and supplemental applications
to the aforementioned agencies, some of which must be made within strict time limits and depending on approvals from one or the other
of the aforementioned agencies. The application process has been supplemented to require the presentation of economic data concerning
a transaction, including appraisals of the business to be acquired and evaluations of the acquirer which will permit the government to
assess the economics of a transaction in addition to the compliance with legal requirements. If obtained, approvals will have