Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 58

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 58
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 No. 37, effective on July 4, 2014, and its appendixes,
that require mainland China residents, including mainland China institutions and individuals, to register with the local branch of the
SAFE in connection with their direct establishment or indirect control of an offshore entity, for the purpose of overseas investment and
financing, with such mainland China residents’ legally owned assets or equity interests in domestic enterprises or offshore assets
or interests, referred to in SAFE Circular No. 37 as a “special purpose vehicle.” SAFE Circular No. 37 further requires an
amendment to the registration in the event of any significant changes with respect to the special purpose vehicle, such as an increase
or decrease of capital contributed by mainland China individuals, share transfer or exchange, merger, division or other material events.
In the event that a mainland China shareholder holding interests in a special purpose vehicle fails to fulfill the required SAFE registration,
the mainland China subsidiaries of that special purpose vehicle may be prohibited from making profit distributions to the offshore parent
and from carrying out subsequent cross-border foreign exchange activities, and the special purpose vehicle may be restricted in its ability
to contribute additional capital into its mainland China subsidiary. Further, failure to comply with the various SAFE registration requirements
described above could result in liability under laws of mainland China for foreign exchange evasion, including (i) the requirement by
the SAFE to return the foreign exchange remitted overseas within a period specified by the SAFE, with a fine of up to 30% of the total
amount of foreign exchange remitted overseas and deemed to have been evasive and (ii) in circumstances involving serious violations, a
fine of no less than 30% of and up to the total amount of remitted foreign exchange deemed evasive. Furthermore, the persons-in-charge
and other persons at our mainland China subsidiaries who are held directly liable for the violations may be subject to criminal sanctions.
On February 28, 2015, SAFE promulgated the Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct
Investment, or SAFE Notice 13, which became effective on June 1, 2015. In accordance with SAFE Notice 13, entities and individuals are
required to apply for foreign exchange registration of foreign direct investment and overseas direct investment, including those required
under SAFE Circular No. 37, with qualified banks, instead of the SAFE. The qualified banks, under the supervision of the SAFE, directly
examine the applications and conduct the registration.