Company: VSA
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001410578-25-001300
Chunk: 41

Company: VisionSys AI Inc
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 41
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. We sold one of them in 2021 and incurred a loss on disposal amounting to RMB22.3 million. We sold the other in March 2023 and recognized an impairment loss of RMB11.6 million in 2022. We also purchased a building in Qingdao and another one in Haikou for an aggregate price of RMB49.6 million in 2016. The purpose of these two buildings was for teaching purposes as learning centers to accommodate the growing demand in the local market and to take advantage of favorable local policies. We sold the Qingdao building with a total consideration of RMB26.1 million and incurred a gain on disposal amounting to RMB1.1 million in 2023.
We may continue to invest in our teaching, administrative, research and other capabilities as our business further develops. Although we will evaluate the feasibility of each property purchase for the good of our business operations, we are likely to incur costs associated with these investments earlier than some of the anticipated benefits and the return on these investments may be lower, or may develop more slowly, than we expect. We may not be able to recover our capital expenditures or investments, in part or in full, or the recovery of these capital expenditures or investments may take longer than expected. As a result, the carrying value of the related assets may be subject to an impairment charge, which could adversely affect our profitability.
Our strategy of investments and acquiring complementary businesses and assets may fail.
As part of our business strategy, we have pursued, and may continue to pursue, selective strategic investments and acquisitions of businesses and assets that complement our existing business. Investments and acquisitions involve uncertainties and risks, including:

●   potential ongoing financial obligations and unforeseen or hidden liabilities, including liability for infringement of third-party copyrights or other intellectual property;
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●   failure to achieve the intended objectives, benefits or revenue-enhancing opportunities;
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●   costs and difficulties of integrating acquired businesses and managing a larger business;
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●   potentially significant goodwill impairment charges;
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●   high acquisition and financing costs;
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●   possible loss of key employees of a target business;
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●   potential claims or litigation regarding our board’s exercise of its duty of care and other duties required under applicable law in connection with any of our significant acquisitions or investments approved by the board;
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●   diversion of resources and management attention; and
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●   in the case of acquisitions of businesses or assets outside mainland China