Company: VSA
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001410578-25-001300
Chunk: 49

Company: VisionSys AI Inc
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 49
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ainties exist with respect to the interpretation and implementation of the PRC Foreign Investment Law and its implementation regulations and how it may impact the viability of our current corporate structure, corporate governance and business operations.”
Our holding company in the Cayman Islands, the variable interest entities, and investments in our company face uncertainty about potential future actions by the PRC government that could affect the enforceability of the contractual arrangements with the variable interest entities and, consequently, the business, financial condition, and results of operations of the variable interest entities and our company as a group. In addition, our ADSs may decline in value or become worthless if we are unable to assert our contractual control rights over the assets of the variable interest entities, which contributed 7.4% of our revenues from continuing operations in 2024. If we or Beijing Tongcheng is found to be in violation of any existing or future laws or regulations of mainland China, or such arrangement is determined as illegal and invalid by the PRC court, arbitral tribunal or regulatory authorities, or if we fail to obtain, maintain or renew any of the required permits or approvals, the PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures, including:

●   revoking the business and operating licenses of our subsidiaries in mainland China and Beijing Tongcheng;
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●   discontinuing or restricting the conduct of any transactions between our subsidiaries in mainland China and Beijing Tongcheng;
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●   imposing fines, confiscating the income from Beijing Tongcheng, or imposing other requirements with which we or Beijing Tongcheng may not be able to comply; or
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●   requiring us to restructure our ownership structure or operations, including terminating the contractual arrangements with Beijing Tongcheng and deregistering the equity pledges of Beijing Tongcheng.
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We launched our 61it.cn online learning platform in July 2018 to deliver online live instruction of our IT-focused supplementary STEM education courses to students aged between three and eighteen. 61it.cn features an OMO-based interactive classroom and leveled class materials covering multiple programming languages such as Scratch, Python, Javascript, HTML, CSS and C++. 61it.cn is also important for our marketing efforts. Therefore, the imposition of any of these penalties could result in a material and adverse effect on our ability to provide online education services and conduct our marketing and promotional activities through 61it.cn. Beijing Tongcheng has added our 61it.cn website under its ICP license.

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If the PRC authorities