Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 62

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 62
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 of mainland China on loans to and direct investment in entities in mainland China by offshore holding companies, including
the SAFE rules and circulars referred to above, we cannot assure you that we will be able to complete the necessary government registrations
or filings on a timely basis, if at all, with respect to existing and future loans by us to our mainland China subsidiaries and the variable
interest entities or additional capital contributions by us to our mainland China subsidiaries, and conversion of such loans or capital
contributions into RMB. If we fail to complete such registrations or filings, our ability to capitalize or otherwise fund our operations
in mainland China may be negatively affected, which could adversely affect our ability to fund and expand our business.

Our subsidiaries and the variable interest entities in mainland China are subject to restrictions on paying dividends or making other payments to our holding company, which may restrict our ability to satisfy our liquidity requirements.

We are a holding company incorporated in the Cayman
Islands. As a result of the holding company structure, it currently relies on dividend payments from our subsidiaries in mainland China.
However, the regulations of mainland China currently permit payment of dividends only out of accumulated profits, as determined in accordance
with PRC accounting standards and regulations. Our subsidiaries and the variable interest entities in mainland China are also required
to set aside a portion of their after-tax profits according to PRC accounting standards and regulations to fund certain reserve funds.
The PRC government also imposes controls on the conversion of RMB into foreign currencies and the remittance of foreign currencies out
of mainland China. We may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency.
See “-Governmental control of currency conversion may affect the value of your investment.” Furthermore, if our subsidiaries
or the variable interest entities in mainland China incur debt on their own in the future, the instruments governing the debt may restrict
their ability to pay dividends or make other payments. If our subsidiaries and the variable interest entities in mainland China are unable
to pay dividends or make other payments to us, we may be unable to pay dividends on our ordinary shares and ADSs.

In addition, the EIT Law, and its implementation
rules provide that a withholding tax rate of up to 10% will be applicable to dividends payable by Chinese companies to non-mainland China-resident
enterprises unless otherwise exempted or reduced according to treaties or arrangements between the PRC central government and governments
of other countries or regions where the non-mainland China-resident enterprises are incorporated.