Company: FVN
Filing Date: 2025-05-30
Form Type: S-4/A
Source: 0001829126-25-004067
Chunk: 15

Company: Future Vision II Acquisition Corp.
Filing Date: 2025-05-30
Form: S-4/A
Chunk 15
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 future.

While New VIWO may consider paying dividends in the future, its ability to do so depends on receiving funds from VIWO and VIWO’s PRC subsidiaries, which operate in China. This creates a significant risk because the Chinese government maintains foreign exchange controls and can impose restrictions on transferring cash between New VIWO and its subsidiaries, and investors.

These restrictions could:

Limit financial support: Prevent New VIWO and VIWO from providing capital or loans to their Chinese subsidiaries, potentially harming their operations.

Restrict dividend payments: Block VIWO’s Chinese subsidiaries from paying dividends to New VIWO;

Impact investor dividend payments: If New VIWO can’t receive dividends from its Chinese subsidiaries, it may be unable to distribute dividends to its own investors.

See “Risk Factors—Risks Relating to Doing Business in the PRC— 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’s liquidity and its ability to fund and expand business.”

Furthermore, access to any cash or assets held within China for operations or use outside the country is subject to China's foreign exchange control regulations and rules governing cross-border fund transfers. These regulations are administered by authorities such as SAFE and their implementation may change, potentially impacting the ability to transfer funds or assets offshore when needed.

See “Risk Factors—Risks Related to Our Corporate Structure— We are a holding company and will rely on dividends paid by our subsidiaries for our cash needs. Any limitation on the ability of our subsidiaries to make dividend payments to us, or any tax implications of making dividend payments to us, could limit our ability to pay our parent company expenses or pay dividends to holders of our ordinary shares.”

Mitigating the Risk:

To manage these challenges, VIWO has in effect, and New VIWO will implement similar cash management policies to ensure efficient and compliant fund transfers between the companies and their subsidiaries. These policies include:

Approval processes: Ensuring that only authorized personnel can initiate transactions.

Proper record-keeping: Facilitating audits and financial reviews.

Compliance with regulations: Adhering to all applicable laws, including anti-money laundering and know-your-customer rules.

Despite these measures, the risk remains that Chinese government regulations could significantly hinder New VIWO’s ability to access funds and distribute dividends to its shareholders. Investors should carefully consider this risk