Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 22

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 22
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 an average of the quarterly values of the assets) during such year is attributable to assets that produce
passive income or are held for the production of passive income, or the asset test. A separate determination must be made after the close
of each taxable year as to whether a non-U.S. corporation is a PFIC for that year. Passive income generally includes dividends, interest,
royalties, rents, annuities, net gains from the sale or exchange of property producing such income and net foreign currency gains. For
this purpose, cash and assets readily convertible into cash are categorized as passive assets and our unbooked intangibles associated
with active business activity are taken into account as non-passive assets.

In addition, a non-U.S. corporation will be treated
as owning a proportionate share of the assets and earning a proportionate share of the income of any other corporation in which we own,
directly or indirectly, 25% or more (by value) of the stock. Although the law in this regard is unclear, we treat the VIEs as being beneficially
owned by us for U.S. federal income tax purposes because we control the entities’ management decisions, we are entitled to substantially
all of the economic benefits associated with the entities, and, as a result, we consolidate the entities’ results of operations
in our U.S. GAAP financial statements. If it was determined, however, that we are not the owner of the VIEs for U.S. federal income tax
purposes, we may be treated as a PFIC for the current taxable year and any subsequent taxable year.

Based on the market price of our ADSs and outstanding
Class A ordinary shares, the value of our assets and the composition of our assets and income, we do not believe that we were a PFIC for
our taxable year ended December 31, 2024. No assurances can be given with regard to our PFIC status for the current taxable year or the
foreseeable future because the determination of whether we will be or become a PFIC is a factual determination made annually that will
depend, in part, upon the characterization and composition of our income, assets and liabilities. It is possible that the IRS may challenge
our classification of certain items of income, assets and liabilities, which may result in our company being or becoming a PFIC.

<div align='center'>S-12</div>

Because the value of our assets for purposes of
the asset test will generally be