Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 125

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 125
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 distributions on equity paid by our subsidiaries in mainland China for our cash and financing requirements, including the funds
necessary to pay dividends and other cash distributions to our shareholders and service any debt we may incur. If these subsidiaries incur
debt on their own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other distributions
to us. In addition, to the extent cash or assets in the business is in the PRC or a PRC entity, the funds or assets may not be available
to fund operations or for other use outside of the PRC as we, our subsidiaries, and the consolidated VIEs are subject to certain restrictions
with respect to paying dividends or otherwise transferring any of their cash or assets offshore, and there is no assurance the PRC government
will not intervene in or impose restrictions on the ability of us, our subsidiaries, and the consolidated VIEs to transfer cash or assets.
Please also see “Item 5. Operating and Financial Review and Prospects — B. Liquidity and Capital Resources”
in our Annual Report for more details.

In addition, the PRC tax authorities may require
any of our subsidiaries in mainland China to adjust its taxable income under the contractual arrangements it currently has in place with
the variable interest entities in a manner that would materially and adversely affect its ability to pay dividends and other distributions
to us. See also the risk disclosed in our Annual Report under “Item 3. Key Information — D. Risk Factors — Risks
Related to Our Corporate Structure — Our contractual arrangements with the variable interest entities may be subject
to scrutiny by the PRC tax authorities, and a finding that we owe additional taxes could substantially reduce our consolidated net income
and the value of your investment”.

Under laws and regulations of mainland China, our
wholly foreign-owned subsidiaries in mainland China may pay dividends only out of their respective accumulated profits as determined in
accordance with accounting standards and regulations of mainland China. In addition, a mainland China enterprise is required to set aside
at least 10% of its accumulated after-tax profits each year, if any, to fund certain statutory reserve funds, until the aggregate amount
of such fund reaches 50% of its registered capital.

Any limitation on the ability of our subsidiaries
in mainland China to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments
or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business. See