Company: VSA
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001410578-25-001300
Chunk: 16

Company: VisionSys AI Inc
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 16
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105)
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A.   [Reserved]
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B.   Capitalization and Indebtedness
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Not Applicable.

C.   Reasons for the Offer and Use of Proceeds
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Not Applicable.

D.   Risk Factors
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Summary of Risk Factors
An investment in our ADSs involves significant risks. Below is a summary of material risks we face, organized under relevant headings. With respect to the legal risks associated with being based in and having operations in mainland China, the laws, regulations and the discretion of mainland China governmental authorities discussed in this annual report are expected to apply to mainland China entities and businesses, rather than entities or businesses in Hong Kong which operate under a different set of laws from mainland China. These risks are discussed more fully in Item 3. Key Information—D. Risk Factors.
Risks Related to Our Business

●   Uncertainties and risks accompany our strategy to divest our professional education business. Our strategy to divest is largely based on our management’s assessment of our core strengths, business objectives, resource allocation, and likelihood of success for different business models. However, our judgment could be inaccurate, and we may not achieve the desired strategic and financial benefits from the divestiture transaction.
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●   We incurred net losses from 2019 to 2021, generated net income in 2022 and 2023, and incurred net loss in 2024. Our historical financial and operating results may not be indicative of future performance, which makes it difficult to predict our future business prospects and financial performance.
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●   We rely on IT-focused supplementary STEM education programs for a substantial part of our net revenues upon the consummation of the Divestiture, and a decrease in the popularity of IT-focused supplementary STEM education courses, such as childhood &amp; adolescent robotics programming and computer programming courses, would have a material adverse effect on our business and 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.
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●   We may not be able to continue to recruit, train and retain qualified instructors and teaching assistants, who are critical to the success of our business and effective delivery of our education services to students.
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●   If we fail to develop and introduce new courses in anticipation of market demand in a timely and cost-effective