Company: SOS
Filing Date: 2025-03-14
Form Type: F-3
Source: 0001213900-25-024134
Chunk: 38

Company: SOS Ltd
Filing Date: 2025-03-14
Form: F-3
Chunk 38
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As of the date of this prospectus, similar
ownership structure and contractual arrangements have been used by many China-based companies listed overseas, including a number of value-added
telecommunications companies listed in the United States. To our knowledge, none of the fines or punishments listed above has been imposed
on any of these public companies. However, we cannot assure you that such fines or punishments will not be imposed on us, the VIEs or
any other companies in the future. If any of the above fines or punishments is imposed on us or the VIEs, our business, financial condition
and results of operations could be materially and adversely affected. If any of these penalties results in our inability to direct the
activities of the consolidated affiliated entities that most significantly impact their economic performance, and/or our failure to receive
the economic benefits from the consolidated affiliated entities, we may not be able to consolidate them in our financial statements in
accordance with U.S. GAAP. However, we do not believe that such actions would result in the liquidation or dissolution of our company,
our WFOEs or the VIEs or their subsidiaries. To the extent commercially practicable and in compliance with the relevant PRC laws and regulations,
we plan to conduct the VIEs’ current businesses through our subsidiaries in mainland China and cease substantially all of the operation
of the VIEs within the next three to five years.

Uncertainties exist with respect to the interpretation and implementation of the PRC Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate governance and business operations.

On March 15, 2019, the NPC approved the Foreign
Investment Law, which came into effect on January 1, 2020 and replaced the trio of existing laws regulating foreign investment in mainland
China, i.e., the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law and the Wholly
Foreign-invested Enterprise Law, together with their implementation rules and ancillary regulations. In December 2019, the State Council
promulgated the Implementation Regulation on the Foreign Investment Law to further clarify relevant provisions of the Foreign Investment
Law, which came into effect on January 1, 2020. The Foreign Investment Law and its implementation regulation embody an expected PRC regulatory
trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts
to unify the corporate legal requirements for both foreign and