Company: SOS
Filing Date: 2025-03-14
Form Type: F-3
Source: 0001213900-25-024134
Chunk: 25

Company: SOS Ltd
Filing Date: 2025-03-14
Form: F-3
Chunk 25
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 our ongoing
business operations and may be subject to penalties for failing to obtain certain licenses with respect to our past operations,”
“Risk Factors—Risks Related to Doing Business in China—The PRC operating entity must conduct its business activities
substantially subject to PRC laws, regulations and administration. If the Chinese government significantly regulates our operating entity’s
business operations in the future and it is not able to substantially comply with such regulations, our operating entity’s business
operations may be materially adversely affected, and the value of our Class A ordinary shares may significantly decrease,” and “Risk
Factors—Risks Related to Doing Business in China—The reinforcement by China regulatory authority on supervision or law enforcement
on offerings that are conducted overseas and/or foreign investment in China-based issuers, which could limit or hinder our ability to
offer or continue to offer securities to investors and cause the value of such securities to significantly decline.”

Cash and Asset Flows through Our Organization

SOS Limited is a holding company with no operations
of its own. We conduct our operations in China primarily through our PRC subsidiaries. As a result, although other means are available
for us to obtain financing at the holding company level, SOS Limited’s ability to pay dividends to the shareholders and to service
any debt it may incur may depend upon dividends paid by our PRC subsidiaries. If any of our subsidiaries incurs debt on its own behalf
in the future, the instruments governing such debt may restrict its ability to pay dividends to SOS Limited. Under PRC laws and regulations,
our PRC subsidiaries are subject to certain restrictions with respect to payment of dividends or other transfers of any of their net assets
to us. Our PRC subsidiaries are permitted to pay dividends only out of their retained earnings, if any, as determined in accordance with
PRC accounting standards and regulations. PRC laws also require a foreign-invested enterprise to set aside at least 10% of its after-tax
profits as the statutory common reserve fund until the cumulative amount of the statutory common reserve fund reaches 50% or more of such
enterprises’ registered capital, if any, to fund its statutory common reserves, which are not available for distribution as cash
dividends. Remittance of dividends by a wholly foreign-owned enterprise out of mainland China is also subject to examination by the banks
designated by the PRC State Administration of Foreign Exchange, or SAFE. These restrictions are benchmarked against the paid-up capital
and the statutory reserve funds of our PRC