Company: VSA
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001410578-25-001300
Chunk: 169

Company: VisionSys AI Inc
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 169
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 which limited our ability to offset the revenue decline.
Operating Expenses
Our operating expenses increased by 52.2% from RMB610.9 million in 2023 to RMB930.1 million (US$127.4 million) in 2024, primarily due to increases in selling and marketing expenses and research and development expenses.

●   Selling and Marketing Expenses. Our selling and marketing expenses decreased by 17.4% from RMB268.4 million in 2023 to RMB221.8 million (US$30.4 million) in 2024. This decrease was primarily due to a decrease in compensation expenses as a result of our cost control initiatives, including personnel optimization measures.
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●   General and Administrative Expenses. Our general and administrative expenses increased by 108.3% from RMB330.8 million in 2023 to RMB689.1 million (US$94.4 million) in 2024. This increase was primarily due to the significant increase in impairment of long-lived assets, including right-of-use assets, intangible assets, goodwill and fixed assets other than the building.
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●   Research and Development Expenses. Our research and development expenses increased by 63.3% from RMB11.7 million in 2023 to RMB19.1 million (US$2.6 million) in 2024. This increase was primarily due to an increase in personnel cost related to our instructors, reflecting our enhanced course development efforts aimed at maintaining competitiveness and innovativeness.
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Interest Income
Our interest income consisted of interest earned on our cash, cash equivalents and time deposits in commercial banks. Our net interest income was RMB1.1 million in 2023 and RMB0.1 million (US$0.0 million) in 2024, primarily due to a decrease in time deposits in commercial banks.
Income Tax Benefit(expense)
We recorded income tax benefits of RMB8.0 million in 2023 and income tax expenses of RMB31.5 million (US$4.3 million) in 2024. This change was primarily due to an increase in deferred income tax expenses resulting from the impairment of deferred income tax assets.
The effective income tax rate of (6.3)% in 2024 was lower than the statutory income tax rate of 25.0% primarily because of (i) the preferential income tax rate enjoyed by