Company: VSA
Filing Date: 2025-07-21
Form Type: F-3/A
Source: 0001104659-25-069181
Chunk: 8

Company: VisionSys AI Inc
Filing Date: 2025-07-21
Form: F-3/A
Chunk 8
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 at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. And the after-tax profits shall be used to cover the loss that the PRC subsidiaries and the consolidated VIEs made in previous financial year before any statutory reserve is drawn therefrom, if the statutory reserve is insufficient to cover such loss. These reserves are not distributable as cash dividends. If each of our PRC subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict its ability to pay dividends to VSA. To date, there have not been any such dividends or other distributions from our PRC subsidiaries to our subsidiaries located outside of mainland China. In addition, as of the date of this prospectus, PRC subsidiaries have never issued any dividends or distributions to VSA or its shareholders outside of mainland China. Furthermore, as of the date of this prospectus, neither VSA nor any of its subsidiaries have ever paid dividends or made distributions to U.S. investors. VSA is permitted under PRC laws and regulations as an offshore holding company to provide funding to its PRC subsidiaries in mainland China through shareholder loans or capital contributions, subject to satisfaction of applicable government registration, approval and filing requirements. According to the relevant PRC regulations on foreign-invested enterprises in mainland China, there are no quantity limits on VSA’s ability to make capital contributions to its PRC subsidiaries. However, our PRC subsidiaries may not procure loans which exceed the amount determined by one of the following methods: (i) the difference between their respective registered capital and total investment amount as recorded in the articles of associations thereof; or (ii) the upper limit of risk-weighted outstanding cross-border financings, which equals to the net assets multiplied by the cross-border financing leverage ratio multiplied by the macro-prudential adjustment parameter. In the future, cash proceeds raised from overseas financing activities may continue to be transferred by VSA to the PRC subsidiaries via capital contribution or shareholder loans, as the case may be. We intend to retain most, if not all, of our available funds and any future earnings for the development and growth of our business overseas. We do not expect to pay dividends in the foreseeable future. In addition, there are certain restrictions on our ability to convert Renminbi into foreign currencies. Approval from State Administration of Foreign Exchange (“SAFE”) and the People’s Bank of China (“PBOC”) may be required where RMB