Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 63

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 63
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Governmental control of currency conversion may affect the value of your investment.

The PRC government imposes controls on the convertibility
of RMB into foreign currencies and, in certain cases, the remittance of foreign currency out of mainland China. We receive most of our
revenues in RMB. Under our current structure, our income at the Cayman Islands holding company level will primarily be derived from dividend
payments from our mainland China subsidiaries. Shortages in the availability of foreign currency may restrict the ability of our mainland
subsidiaries and the variable interest entities to remit sufficient foreign currency to pay dividends or other payments to us, or otherwise
satisfy their foreign currency denominated obligations. Under existing foreign exchange regulations of mainland China, payments of current
account items, including profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign
currencies without prior approval from the SAFE by complying with certain procedural requirements. However, approval from appropriate
government authorities is required where RMB is to be converted into foreign currency and remitted out of mainland China to pay capital
expenses such as the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access
in the future to foreign currencies for current account transactions. If the foreign exchange control system prevents us from obtaining
sufficient foreign currency to satisfy our currency demands, we may not be able to pay dividends in foreign currencies to our shareholders
or ADS holders.

<div align='center'>S-36</div>

We may not be able to obtain certain treaty benefits on dividends paid to us by our subsidiary in mainland China through our subsidiaries in Hong Kong.

Under the EIT Law and its implementation rules,
dividends generated from retained earnings from a mainland China company and distributed to a foreign parent company are subject to a
withholding tax rate of 10% unless the foreign parent’s jurisdiction of incorporation has a tax treaty with mainland China that
provides for a preferential withholding arrangement. Pursuant to the Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income, or the Hong Kong Tax
Treaty, which became effective on December 8, 2006, a company incorporated in Hong Kong, such as Tarena HK and Kids IT Education (HK)
Limited, will be subject to withholding income tax at a rate of 5% on dividends it receives from its subsidiary in mainland China if it