Company: FVN
Filing Date: 2025-05-02
Form Type: S-4
Source: 0001829126-25-003304
Chunk: 124

Company: Future Vision II Acquisition Corp.
Filing Date: 2025-05-02
Form: S-4
Chunk 124
---
 Financing and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37, in July 2014 that requires PRC residents or entities to register with SAFE or its local branch in connection with their establishment or control of an offshore entity established for the purpose of overseas investment or financing. In addition, such PRC residents or entities must update their SAFE registrations when the offshore special purpose vehicle undergoes material events relating to any change of basic information (including change of such PRC residents or entities, name and operation term), increases or decreases in investment amount, transfers or exchanges of shares, or mergers or divisions.

SAFE Circular 37 is issued to replace the Circular on Relevant Issues Concerning Foreign Exchange Administration for PRC Residents Engaging in Financing and Roundtrip Investments through Overseas Special Purpose Vehicles. If VIWO’s shareholders who are PRC residents or entities do not complete their registration with the local SAFE branches, VIWO’s PRC subsidiaries may be prohibited from distributing their profits and proceeds from any reduction in capital, share transfer or liquidation to VIWO, and VIWO may be restricted in its ability to contribute additional capital to VIWO’s PRC subsidiaries. Moreover, failure to comply with SAFE registration described above could result in liability under PRC laws for evasion of applicable foreign exchange restrictions.

However, VIWO may not be informed of the identities of all the PRC residents or entities holding direct or indirect interest of VIWO, nor can VIWO compel its shareholders to comply with the requirements of SAFE Circular 37. As a result, VIWO cannot assure you that all of its shareholders who are PRC residents or entities have complied with, and will in the future make or obtain any applicable registrations or approvals required by, SAFE Circular 37. Failure by such shareholders to comply with SAFE Circular 37, or failure by VIWO to amend the foreign exchange registrations of its PRC subsidiaries, could subject VIWO to fines or legal sanctions, restrict VIWO’s overseas or cross-border investment activities, limit VIWO’s PRC subsidiaries’ ability to make distributions or pay dividends to VIWO or affect VIWO’s ownership structure, which could adversely affect VIWO’s business and prospects.

<div align='center'>67</div>

PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay or prevent VIWO from using the proceeds it receives from offshore financing activities to make loans to or make additional capital contributions to VIWO’s PRC subsidiaries, which could materially and adversely affect VIWO