Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 113

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 113
---
s are required
to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds
reach 50% of its registered capital. And the after-tax profits shall be used to cover the loss that the PRC subsidiaries and the consolidated
VIEs made in previous financial year before any statutory reserve is drawn therefrom, if the statutory reserve is insufficient to cover
such loss. These reserves are not distributable as cash dividends. If each of our PRC subsidiaries incurs debt on its own behalf in the
future, the instruments governing such debt may restrict its ability to pay dividends to VSA. To date, there have not been any such dividends
or other distributions from our PRC subsidiaries to our subsidiaries located outside of mainland China. In addition, as of the date of
this prospectus, PRC subsidiaries have never issued any dividends or distributions to VSA or its shareholders outside of mainland China.
Furthermore, as of the date of this prospectus, neither VSA nor any of its subsidiaries have ever paid dividends or made distributions
to U.S. investors. VSA is permitted under PRC laws and regulations as an offshore holding company to provide funding to its PRC subsidiaries
in mainland China through shareholder loans or capital contributions, subject to satisfaction of applicable government registration, approval
and filing requirements. According to the relevant PRC regulations on foreign-invested enterprises in mainland China, there are no quantity
limits on VSA’s ability to make capital contributions to its PRC subsidiaries. However, our PRC subsidiaries may not procure loans
which exceed the amount determined by one of the following methods: (i) the difference between their respective registered capital
and total investment amount as recorded in the articles of associations thereof; or (ii) the upper limit of risk-weighted outstanding
cross-border financings, which equals to the net assets multiplied by the cross-border financing leverage ratio multiplied by the macro-prudential
adjustment parameter. In the future, cash proceeds raised from overseas financing activities may continue to be transferred by VSA to
the PRC subsidiaries via capital contribution or shareholder loans, as the case may be. We intend to retain most, if not all, of our available
funds and any future earnings for the development and growth of our business overseas. We do not expect to pay dividends in the foreseeable
future. In addition, there are certain restrictions on our ability to convert Renminbi into foreign currencies. Approval from