Company: SOS
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061032
Chunk: 19

Company: SOS Ltd
Filing Date: 2025-07-02
Form: S-8
Chunk 19
---
 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 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.

<div align='center'>6</div>

On November 2, 2022, the Company entered
into the Disposition SPA with S International Holdings Limited, the “Purchaser, and S International Group Limited, a British Virgin
Islands company, and the Company’s wholly owned subsidiary prior to the Disposition. Upon the closing of the transaction, the Company’s
VIE structure has been disposed. As the VIE structure has been unwound, the financial results of the former VIE and its subsidiaries are
no longer consolidated into the Company’s financial statements after the Closing Date. As of the date of this prospectus, our current
corporate structure does not contain any VIE in mainland China and neither we nor our subsidiaries have intentions of establishing any
VIEs in mainland China in the future. None of the Company’s subsidiaries operate through VIE contracts, as of the date of this prospectus.

For the fiscal year ended
December 31, 2023, SOS Limited transferred nil to its subsidiaries inside China and transferred $16,379,378 to its subsidiaries outside