Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 98

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 98
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ICs.

If we are a PFIC for
any fiscal year during which a U.S. Holder holds the ADSs or ordinary shares, we will continue to be treated as a PFIC with respect to
such U.S. Holder for all succeeding years during which the U.S. Holder holds the ADSs or ordinary shares, unless we were to cease to be
a PFIC and the U.S. Holder makes a “deemed sale” election with respect to the ADSs or ordinary shares. If such election is
made, the U.S. Holder will be deemed to have sold the ADSs or ordinary shares it holds at their fair market value and any gain from such
deemed sale would be subject to the rules described in the preceding two paragraphs. After the deemed sale election, so long as we
do not become a PFIC in a subsequent fiscal year, the ADSs or ordinary shares with respect to which such election was made will not be
treated as shares in a PFIC and, as a result, the U.S. Holder will not be subject to the rules described above with respect to any
“excess distribution” the U.S. Holder receives from us or any gain from an actual sale or other disposition of the ADSs or
ordinary shares. Each U.S. Holder is strongly urged to consult its tax advisors as to the possibility and consequences of making a deemed
sale election if we are and then cease to be a PFIC and such an election becomes available to the U.S. Holder.

As an alternative to
the foregoing rules, a U.S. Holder of “marketable stock” in a PFIC may make a mark-to-market election with respect to the
ADSs, provided that the ADSs are “regularly traded” (as specially defined) on NASDAQ, which is a qualified exchange or other
market for these purposes. No assurances may be given regarding whether the ADSs qualify, or will continue to qualify, as being regularly
traded in this regard. If a mark-to-market election is made, the U.S. Holder will generally (1) include as ordinary income for each
fiscal year that we are a PFIC the excess, if any, of the fair market value of ADSs held at the end of the fiscal year over the U.S. Holder’s
adjusted tax basis in such ADSs and (2) deduct as an ordinary loss the excess, if any, of the U.S. Holder’s adjusted tax basis
in the ADS