Indebtedness, guarantees and other contingent obligations
Hong Kong IPO disclosure precedents · 78 companies, 82 items
high borrowings or gearing, covenants, guarantees given or received (including related-party guarantees to be released on listing), financial guarantee contracts, shortfall-funding or repurchase obligations
As of December 31, 2023, 2024 and 2025, we had contingent liabilities in relation to financial guarantees provided to Changshu Yudeyang, a subsidiary disposed of in 2023, for its outstanding loans of RMB33.4 million, RMB33.4 million and RMB26.3 million, respectively.
Financial Information · p. 202
Based on the assessment of our Directors, no liability was recognized in our consolidated statements of financial position in respect of such financial guarantees as of December 31, 2023, 2024 and 2025, respectively.
We recorded finance costs of RMB263.8 million, RMB360.4 million and RMB524.2 million in 2023, 2024 and 2025, respectively, accounting for 11.2%, 11.2% and 12.7%, respectively, of our revenue in the corresponding periods.
Financial Information · p. 186
(iii) enhancing management on interest-bearing bank and other borrowings, particularly through continuing to shift towards a more asset-light business structure by steadily increasing the proportion of entrusted and served EVs within our platform; and
Our impairment losses on trade and other receivables and financial guarantee issued were RMB8 thousand, RMB1.6 million, and RMB1.0 million in 2023, 2024 and 2025, respectively.
Financial Information · p. 203
Our impairment loss on trade and other receivables and financial guarantee issued decreased by 33.3% from RMB1.6 million in 2024 to RMB1.0 million in 2025, primarily due to a reversal of the financial guarantee provision as our outstanding guarantee exposure declined from RMB13.6 million to RMB9.0 million, partially offset by higher ECL provision on trade receivables in line with revenue growth.
During the Track Record Period, our Group provided a corporate guarantee to an unlimited extent to a bank for banking facilities granted to a related party.
Financial Information · p. 261
As at 31 March 2023, 2024 and 2025, 30 November 2025 and 31 March 2026, bank facilities utilized by the related party amount to HK$128.6 million, HK$106.2 million, HK$92.4 million, HK$82.8 million and HK$75.1 million respectively.
Financial Information · p. 261
We would release the aforesaid corporate guarantee upon the Listing.
During the Track Record Period, our transaction with a related party refers to the bank loan guarantees provided by Mr. Liu Jian for certain bank loans made to our Company of up to RMB10,000,000 as of December 31, 2024, as described in Note 31 to the Accountants’ Report in Appendix I to this document.
On September 13, 2024, we, as the guarantor, entered into a maximum guarantee agreement (the "Maximum Guarantee Agreement") with a commercial bank in the PRC, as the lender, for the indebtedness incurred by Jiaxing Yilixin (the "ESOP Platform Indebtedness"), as the borrower, during the period between September 13, 2024 and September 13, 2030.
Financial Information · p. 264
The proceeds of the indebtedness incurred by Jiaxing Yilixin were used for the purposes of satisfying the payment obligation of Jiaxing Yilixin for its subscription of shares in the Company in connection with implementation of the Equity Incentive Schemes, under which certain Eligible Participants subscribed for partnership interest in Jiaxin Yilixin (which in turn subscribed for shares in the Company) and were required to fund the subscription consideration.
Financial Information · p. 264
Since the ESOP Platform Indebtedness and in turn, the guarantee transaction, will not be recurring after [REDACTED], it will not constitute a continuing connected transaction subject to relevant requirements under Chapter 14A of the Listing Rules after [REDACTED].
In addition to the abovementioned related-party transactions, Mr. Zhou and Ms. Zeng jointly provided guarantees for our Company's credit facilities in the amounts of RMB650.0 million, RMB650.0 million and RMB300.0 million in 2023, 2024 and 2025, respectively.
Financial Information · p. 211
All such guarantees had been fully released as of the Latest Practicable Date.
In 2023, 2024 and 2025, our impairment losses (including reversals of impairment losses) on financial assets and financial guarantee amounted to RMB27.3 million, RMB154.3 million and RMB42.4 million, respectively.
Financial Information · p. 227
Our current prepayments, other receivables and other assets increased by 59.4% from RMB545.0 million as of December 31, 2023 to RMB868.9 million as of December 31, 2024, primarily due to growth in value-added tax recoverable and other receivables driven by our payment to the finance lease company when our customer experience delays in payment under the relevant finance lease arrangement.
Financial Information · p. 241
In the case that Lingong Group provides repurchase guarantees in favour of us, we will not assume any guarantee obligations or make any repurchase payment in the event of default of our end-customers.
The impairment loss of RMB27.8 million on the financial guarantee contract was recognized in 2024 following the occurrence of default events by the end customer.
Financial Information · p. 212
Our impairment losses (including reversals of impairment losses) on financial assets and others increased significantly from RMB0.7 million in 2023 to RMB30.7 million in 2024, respectively, primarily due to an increase in impairment losses recognized on financial guarantee contracts in connection with guarantees provided by us.
Financial Information · p. 215
We also have not entered into any financial guarantees or other commitments to guarantee the payment obligations of third parties.
In 2025, we issued convertible bonds primarily to further strengthen our business competitiveness and to capture emerging market opportunities.
Financial Information · p. 171
As of December 31, 2023, 2024 and 2025 and March 31, 2026, the carrying amount of our convertible bonds, including current and non-current portion, amounted to nil, nil, RMB778.0 million and RMB784.3 million, respectively.
Financial Information · p. 171
The increase from December 31, 2025 to March 31, 2026 was primarily attributable to the accretion of interest on the liability component of such convertible bonds.
As of December 31, 2025, our net guarantee exposure under these arrangements amounted to RMB1.9 billion.
Financial Information · p. 229
We recorded credit loss on guarantee liabilities and trade and other receivables of RMB47.2 million in 2025, compared to RMB15.5 million in 2024, primarily due to an increase in credit losses on guarantee liabilities and receivables from default payments as our business expanded, which led to a higher number of transactions and principal amount covered by such guarantees.
Financial Information · p. 214
Since April 2026, we have ceased providing new guarantees.
We have a repurchase obligation which may be triggered upon the occurrence of material breaches of relevant terms under the financial leasing agreement by the customer.
Business · p. 147
Our management is of the view that the financial leasing and other arrangements we entered into during the Track Record Period are in line with market practices and are supported by our well-established internal risk control system.
The balance of our convertible bonds (comprising both current and non-current portions) increased during the Track Record Period, rising from RMB521.0 million as of December 31, 2023 to RMB561.7 million as of December 31, 2025.
Financial Information · p. 198
There is an inherent risk that the bonds may not be fully converted into equity upon maturity, which would require us to use cash resources for settlement.
Financial Information · p. 198
We believe that we maintain sufficient monetary funds and a robust liquidity position, which is expected to cover this potential cash settlement obligation.
As of December 31, 2023, 2024 and 2025, we did not have any significant contingent liabilities other than financial guarantees we issued to banks in respect of banking facilities granted to certain of our customers.
Financial Information · p. 203
The aggregate amounts that could be required to be paid if the guarantees were called upon in their entirety amounted to RMB600.0 million, RMB900.0 million and RMB900.0 million as of December 31, 2023, 2024 and 2025, respectively.
We recorded redemption liabilities on non-controlling shares in a subsidiary of RMB207.1 million and RMB209.4 million as of December 31, 2025 and February 28, 2026, primarily because we had repurchase obligation according to the terms of a shareholders’ agreement of a subsidiary.
As of the Latest Practicable Date, our Group’s loans of up to RMB2,704.6 million were guaranteed by, among others, our Controlling Shareholders.
Financial Information · p. 259
Our Directors confirmed that all such guarantees will be released before [REDACTED].
Financial Information · p. 259
Our Directors confirm that, all material related party transactions during the Track Record Period were conducted on normal commercial terms or such terms that were no less favorable to our Group than those available to independent third parties and were fair and reasonable and in the interest of our Shareholders as a whole, and would not distort our results of operations over the Track Record Period or make our historical results over the Track Record Period not reflective of our expectations for our future performance.
During the Track Record Periods, as part of our own cash management activities (which are, for the avoidance of doubt, unrelated to our cross-border fund arrangements), we had placed deposits as collateral to drawdown loans from the commercial banks, which enabled us to earn the differential between the interest of the deposits and cost of the loans without materially affecting our cash flow and exposure to any speculative investment risks.
Financial Information · p. 277
Our net current assets decreased from approximately RMB954.7 million as at 31 December 2023 to approximately RMB715.0 million as at 31 December 2024, primarily due to an increase in borrowings, an increase in other payables and accruals and a decrease in other receivables, partially offset by an increase in restricted cash and a decrease in notes payable.
Financial Information · p. 305
Taking into consideration of financial resources presently available to us, including cash and cash equivalents, anticipated cash flow from operations and available financing facilities and [REDACTED] from the [REDACTED], our Directors are of the view that we have available sufficient working capital to meet our present requirements, that is for the next 12 months from the date of this document.
As of December 31, 2022, 2023 and 2024, and August 31, 2025 we endorsed certain bank acceptance notes (the "Endorsed Notes") to certain of our suppliers in order to settle the trade and other payables due to such suppliers with carrying amounts in aggregate of RMB71.4 million, RMB115.0 million, RMB290.7 million, and RMB203.2 million, respectively.
Financial Information · p. 346
Should we fail to seek reimbursement from any other persons liable for the Endorsed Notes, our maximum potential liabilities (excluding interest payable) as of January 31, 2026 would be RMB123.2 million, representing the full carry amount of the Derecognized Endorsed Notes and the Recognized Endorsed Notes.
Financial Information · p. 347
reducing the proportion of trade receivables settled by bank acceptance notes to 50% or below by contractually requiring customers to make at least 50% of their payments via direct wire transfer;
Mr. Sun and Ms. Lin Lan, the spouse of Mr. Sun had guaranteed our bank borrowings of up to RMB118.1 million, RMB83.0 million, RMB80.6 million and RMB88.3 million as of December 31, 2022, 2023 and 2024, and August 31, 2025.
Financial Information · p. 369
All the above guarantees have been released as of the Latest Practicable Date.