Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 61

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 61
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 additional capital contributions to our mainland China subsidiary, which could adversely affect our ability to fund and expand our business.

VSA is our offshore holding company conducting operations in mainland
China through our mainland China subsidiaries and the variable interest entities. Under laws and regulations of mainland China, we are
permitted to utilize the proceeds from offshore offerings to make loans to our mainland China subsidiaries and the variable interest entities,
or to make additional capital contributions to our mainland China subsidiaries, subject to applicable government registration and approval
requirements. None of our loans to any subsidiary in mainland China or variable interest entity can exceed the difference between its
total amount of investment and its registered capital approved under the laws of mainland China or three times of the net assets provided
in the latest audited financial report of such subsidiary in mainland China, as applicable, and the loans must be registered with the
local branch of SAFE. Our capital contributions to our subsidiaries in mainland China or establishment of new subsidiaries in mainland
China shall be recorded with the Ministry of Commerce or its local counterpart.

In May 2014, SAFE promulgated the Provisions on the Foreign Exchange Administration Rules on Cross-border Guarantee, which, along with the PRC Foreign Currency Administration Rules, provides that failure to register a cross-border guarantee may subject the violator to order to rectify, warning and a fine
no more than RMB300,000. In June 2016, SAFE promulgated SAFE Circular No. 16, which removed certain restrictions previously provided
under several SAFE circulars in respect of conversion by a foreign-invested enterprise of foreign currency registered capital into RMB
and use of such RMB capital. However, SAFE Circular No. 16 continues to prohibit foreign-invested enterprises from, among other
things, using RMB fund converted from its foreign exchange capitals for expenditure beyond its business scope, and providing loans to
non-affiliated enterprises except as permitted in the business scope. On October 23, 2019, the SAFE issued the Circular on Further Promoting Cross-border Trade and Investment Facilitation, or SAFE Circular 28. Among others, SAFE Circular 28 relaxes prior restrictions
and allows foreign-invested enterprises that do not have equity investments in their approved business scope to use their capital obtained
from foreign exchange settlement to make domestic equity investments as long as the investments are real and in compliance with the foreign
investment-related laws and regulations.

<div align='center'>S-35</div>

In light of the various requirements imposed by
the regulations