Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 23

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 23
---
 determined by reference to the market price of our ADSs or Class A ordinary shares, fluctuations in the
market price of our ADSs or Class A ordinary shares may cause us to be or become a PFIC for the current or subsequent taxable years. In
particular, recent declines in the market price of our ADSs significantly increased our risk of being or becoming a PFIC. The market price
of our ADSs may continue to fluctuate considerably and, consequently, we cannot assure you of our PFIC status for any taxable year. The
determination of whether we will be or become a PFIC will also depend, in part, on the composition of our income and assets, which will
be affected by how, and how quickly, we use our liquid assets. Under circumstances where we determine not to deploy significant amounts
of cash for active purposes, our risk of being classified as a PFIC may substantially increase.

If we were treated as a PFIC for any taxable year
during which a U.S. Holder (defined below) held an ADS or a Class A ordinary share, certain adverse U.S. federal income tax consequences
could apply to the U.S. Holder. See “Item 10. Additional Information-E. Taxation-United States Federal Income Taxation-Passive Foreign
Investment Company Considerations.”

You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law.

We are an exempted company incorporated under
the laws of the Cayman Islands. Our corporate affairs are governed by our fifth amended and restated memorandum and articles of association,
the Companies Act, Cap 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands, and the common law of the Cayman Islands.
The rights of shareholders to take action against the directors, actions by minority shareholders and the fiduciary responsibilities of
our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of
the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from the common law
of England, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights
of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are not as clearly established as they
would