Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 110

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 110
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 the variable interest entities, and their nominee shareholders to control
the business operations of the variable interest entities. Such structure enables investors to share economic interests in China-based
companies in sectors where foreign direct investment is prohibited or restricted under laws and regulations in mainland China. Investors
in our ADSs thus are not purchasing equity interest in the variable interest entities in mainland China but instead are purchasing equity
interest in a Cayman Islands holding company with no equity ownership in the variable interest entities. Our company and the variable
interest entities face various risks and uncertainties related to doing business in China. For example, we face risks associated with
regulatory approvals on offshore offerings, antimonopoly regulatory actions, and oversight on cybersecurity and data privacy. These risks
could result in a material adverse change in our operations and the value of our ADSs, significantly limit or completely hinder our ability
to continue to offer securities to investors, or may cause the value of such securities to significantly decline or become worthless.
Though the PRC Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, the definition
of “foreign investment” thereunder is relatively wide and contains a catch-all provision which includes investments made by
foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. Therefore,
there is no assurance that foreign investment via contractual arrangement would not be interpreted as a type of indirect foreign investment
activities in the future. If the variable interest entities were deemed as a foreign-invested enterprise under any such future laws, administrative
regulations or provisions and any of our business would be included in any negative list or other form of restrictions on foreign investment,
we may need to take further actions to comply with such future laws, administrative regulations or provisions. Such actions may have a
material and adverse impact on our business, financial condition, result of operations and prospects. In addition, if the PRC regulatory
authorities were to find our legal structure and contractual arrangements to be in violation of any laws, administrative regulations or
provisions of mainland China, we are uncertain what impact of above PRC regulatory authorities’ actions would have on us and our
ability to consolidate the variable interest entities in the consolidated financial statements. For more details, see “Item 3.
Key Information — D. Risk Factors — Risks Related to Doing Business in China” in our Annual
Report incorporated by reference herein.

Furthermore, as more stringent criteria have
been imposed by the SEC and the Public Company Accounting Oversight Board (the “