Company: SOS
Filing Date: 2025-03-14
Form Type: F-3
Source: 0001213900-25-024134
Chunk: 41

Company: SOS Ltd
Filing Date: 2025-03-14
Form: F-3
Chunk 41
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each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition,
after making an allocation to the statutory reserve funds from their after-tax profits, our wholly owned subsidiary in mainland China,
the VIEs and their subsidiaries may allocate a portion of their after-tax profits based on PRC accounting standards to a discretionary
surplus fund at their discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends.

There are limitations on our ability to transfer cash between us, our
subsidiaries and the VIEs, and there is no assurance that the PRC government will not intervene or impose restrictions on cash transfer
between us, our subsidiaries and the VIEs. We may encounter difficulties in our ability to transfer cash between subsidiaries in mainland
China and other subsidiaries largely due to various PRC laws and regulations imposed on foreign exchange. The majority of our income is
denominated in Renminbi, and shortage in foreign currencies may restrict our ability to pay dividends or other payment to satisfy our
foreign currency denominated obligations, if any. Under existing PRC foreign exchange regulations, 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 State Administration of the Foreign Exchange in the PRC as long as certain procedural requirements are met. Approval
from appropriate government authorities is required if Renminbi is converted into foreign currency and remitted out of the PRC to pay
capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may, at its discretion, impose restrictions
on access to foreign currencies for current account transactions and if this occurs in the future, we may not be able to pay dividends
in foreign currencies to our shareholders. The PRC government has implemented a series of capital control measures, including stricter
vetting procedures for China-based companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan
repayments. It may continue to strengthen its capital controls and dividends and other distributions of our subsidiaries in mainland China
may be subjected to tighter scrutiny and may limit the ability of our Cayman Islands holding company, to use capital from our subsidiaries
in mainland China, which may restrict our ability to satisfy our liquidity requirements.

Our Hong Kong subsidiary may be considered a non-resident
enterprise for tax purposes, so that any dividends our subsidiary in mainland China pays to our Hong Kong subsidiary may be regarded