Company: VSA
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001410578-25-001300
Chunk: 21

Company: VisionSys AI Inc
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 21
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 results to evaluate us, you should consider our business prospects in light of the strategic shift we took and the risks and difficulties we may encounter in this evolving industry. We may not achieve the desired benefits from the strategic shift and we may not be able to successfully address these risks and difficulties, which could significantly harm our business, results of operations and financial condition. Our ability to achieve profitability will depend in large part on our ability to increase our operating margin, either by growing our revenues at a rate faster than our operating expenses increase, or by reducing our operating expenses, especially our selling and marketing expenses, as a percentage of our net revenues. We intend to continue to invest in our branding and marketing activities to attract new students, and improve our online learning modules to enhance student experience. We cannot assure you that we will be successful in these efforts, and we may incur net losses for a period of time in the future.
We rely on IT-focused supplementary STEM education programs for a substantial part of our net revenues, and a decrease in the popularity of IT-focused supplementary STEM education would have a material adverse effect on our business and results of operations.
A substantial part of our net revenues is generated from the IT-focused supplementary STEM education. In 2024, childhood robotics programming and childhood computer programming courses contributed to 42.2% and 18.9% of our net revenues from continuing operations, respectively. Our business growth and financial performance are closely tied to the sustained demand for IT-focused STEM eduction, particularly in robotics and computer programming. This demand is influenced by various factors, including technology advancements, shifts in educational priorities, evolving job market requirements and government policies that promote STEM education. Any significant decrease in the popularity or perceived value of robotics and computer programming, whether due to changes in market trends, emerging educational alternatives, or a shift in government or institutional focus, could lead to decreased student enrollment in our courses. Furthermore, intensified competition, economic downturns, or reduced consumer spending on supplementary education could also impact our enrollment rates. If we are unable to maintain or increase enrollment in our IT-focused STEM education programs, our revenue streams could be significantly affected. Additionally, our long-term growth prospects may be hindered if we fail to adapt our offerings to aligh with evolving market demands and technological advancements. This, in turn, could materially and adversely affect our business and our results of operations.

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If we are not able to continue to attract students to enroll in our courses, our business and prospects will be materially and adversely affected.
The success of our business depends