Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 67

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 67
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 how it may impact the viability of our current corporate structure, corporate governance and business operations.

On January 1, 2020, the PRC Foreign Investment Law and the Regulations for Implementation of the PRC Foreign Investment Law came into effect and replaced the trio of prior
laws regulating foreign investment in mainland China, namely, 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. The PRC Foreign Investment Law and its implementation regulations embody an expected regulatory
trend of mainland China 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 domestic investments. However, there are still uncertainties
in relation to the interpretation and implementation of the PRC Foreign Investment Lawand its implementation regulations. For
instance, under the PRC Foreign Investment Law, “foreign investment” refers to the investment activities directly or
indirectly conducted in mainland China by foreign individuals, enterprises or other entities. Though it does not explicitly classify contractual
arrangements as a form of foreign investment, there is no assurance that foreign investment via contractual arrangement would not be interpreted
as a type of indirect foreign investment activities under the definition in the future. In addition, the definition contains a catch-all
provision which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other
methods prescribed by the State Council. Therefore, it still leaves leeway for future laws, administrative regulations or provisions promulgated
by the State Council to provide for contractual arrangements as a form of foreign investment. In any of these cases, it will be uncertain
whether our contractual arrangements will be deemed to be in violation of the market access requirements for foreign investment under
the laws and regulations of mainland China. Furthermore, if future laws, administrative regulations or provisions prescribed by the State
Council mandate further actions to be taken by companies with respect to existing contractual arrangements, we may face substantial uncertainties
as to whether we can complete such actions in a timely manner, or at all.

If any of the variable interest entities were
deemed as foreign invested enterprise under any such future laws, administrative regulations or provisions and any of our business were
included in any negative list or other form of restrictions on foreign investment, we may need to take further actions to comply with
such future laws, administrative regulations or provisions. Such actions may