Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 57

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 57
---
Six PRC regulatory agencies promulgated regulations
effective in September 2006 and amended in June 2009 that are commonly referred to as the M&A Rules. The M&A Rules establish procedures
and requirements that could make some acquisitions of mainland China companies by foreign investors more time-consuming and complex, including
requirements in some instances that the Ministry of Commerce be notified in advance of any change-of-control transaction in which a foreign
investor takes control of a mainland China domestic enterprise. In addition, national security review rules issued by the PRC governmental
authorities in 2011 require acquisitions by foreign investors of domestic companies engaged in military-related or certain other industries
that are crucial to national security to be subject to prior security review. Moreover, the Anti-Monopoly Law requires that the
Ministry of Commerce be notified in advance of any concentration of undertaking if certain thresholds are triggered. We may expand our
business in part by acquiring complementary businesses. Complying with the requirements of the M&A Rules, security review rules and
other regulations of mainland China to complete such transactions could be time-consuming, and any required approval processes, including
obtaining approval from the Ministry of Commerce, may delay or inhibit our ability to complete such transactions, which could affect our
ability to expand our business or maintain our market share.

<div align='center'>S-32</div>

In addition, in accordance with the M&A Rules, approval of the
Ministry of Commerce is required for acquisitions of mainland China domestic enterprises by foreign companies that are established or
controlled by mainland China domestic companies, enterprises or individuals related to the target mainland China domestic enterprises,
or “Related Party Acquisitions,” and the parties are not allowed to evade such requirements through investment by foreign
investment enterprises in mainland China or in other ways. Although M&A Rules have been effective since September 2006, we are not
aware of any precedent of approval by the Ministry of Commerce of any Related Party Acquisition conducted by mainland China domestic individuals.

Regulations relating to offshore investment activities by mainland China residents may limit our mainland China subsidiaries’ ability to increase their registered capital or distribute profits to us, limit our ability to inject capital into our mainland China subsidiaries, or otherwise expose us to liability and penalties under laws of mainland China.

The PRC State Administration of Foreign Exchange,
or the SAFE, has promulgated regulations, including the Notice on Relevant Issues Relating to Domestic Residents’ Investment and
Financing and Round-Trip Investment through Special Purpose Vehicles, or SAFE Circular