Company: SOS
Filing Date: 2025-07-31
Form Type: 424B5
Source: 0001213900-25-069766
Chunk: 64

Company: SOS Ltd
Filing Date: 2025-07-31
Form: 424B5
Chunk 64
---
 the consolidated affiliated entities, we may not be able to consolidate them in our financial statements in
accordance with U.S. GAAP. However, we do not believe that such actions would result in the liquidation or dissolution of our company,
our WFOEs or the VIEs or their subsidiaries. To the extent commercially practicable and in compliance with the relevant PRC laws and regulations,
we plan to conduct the VIEs’ current businesses through our subsidiaries in mainland China and cease substantially all of the operation
of the VIEs within the next three to five years.

Uncertainties exist with respect to the interpretation and implementation of the PRC Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate governance and business operations.

On March 15, 2019, the NPC approved the Foreign
Investment Law, which came into effect on January 1, 2020 and replaced the trio of existing laws regulating foreign investment in mainland
China, i.e., the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law and the Wholly
Foreign-invested Enterprise Law, together with their implementation rules and ancillary regulations. In December 2019, the State Council
promulgated the Implementation Regulation on the Foreign Investment Law to further clarify relevant provisions of the Foreign Investment
Law, which came into effect on January 1, 2020. The Foreign Investment Law and its implementation regulation embody an expected PRC regulatory
trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts
to unify the corporate legal requirements for both foreign and domestic investments.

However, since the Foreign Investment Law
and its implementation regulation are relatively new, uncertainties still exist in relation to their interpretation and implementation.
For instance, under the Foreign Investment Law, “foreign investment” refers to the investment activities directly or indirectly
conducted by foreign individuals, enterprises or other entities in mainland China. Though it does not explicitly classify contractual
arrangements as a form of foreign investment, there is no assurance that foreign investment via contractual arrangements would not be
deemed as a type of indirect foreign investment activities under the definition in the future. In addition, the definition has 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. The Special Administrative Measures (Negative Lest) for Foreign Investment Access (2021 Version)
(the