Company: SOS
Filing Date: 2025-03-14
Form Type: F-3
Source: 0001213900-25-024134
Chunk: 9

Company: SOS Ltd
Filing Date: 2025-03-14
Form: F-3
Chunk 9
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 the ability of our PRC subsidiaries to pay dividends to us. 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 enterprise’s 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 (“SAFE”). These restrictions are
benchmarked against the paid-up capital and the statutory reserve funds of our PRC subsidiaries. To the extent cash in our business is
in China or in an entity in mainland China, the funds may not be available to fund operations or for other use outside of mainland China
due to interventions in or the imposition of restrictions and limitations by the PRC government on our ability to transfer cash. As a
result, our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund
and conduct our business may be materially and adversely affected. We have also presented financial information to illustrate the consolidated
cash flows for the years ended December 31, 2023 for (i) SOS Limited; (ii) China SOS Limited; (iii) Qingdao SOS Investment, one of our
WFOEs; (iv) the VIE; (v) Subsidiaries outside China; and (vi) Subsidiaries inside China. The financial information of SOS Limited has
been extracted from SOS Limited’s audited consolidated statements of cash flows for the year ended December 31, 2023 and the related
notes, included elsewhere in this prospectus or incorporated by reference herein. For a detailed description of how cash is transferred
through our organization, see “Prospectus Summary—Cash and Asset Flows through Our Organization.”