During the Track Record Period, the Petitioner had filed patent invalidation proceedings against 25 patents (the "Disputed Patents").
Business · p. 182
However, following examination of materials submitted by the Petitioner, the Patent Re-examination Department declared 20 patents invalid and two patents partially invalid primarily on the basis of lack of inventiveness.
Business · p. 183
for two of such patents, the Patent Re-examination Department’s decision declaring the patents invalid was upheld by the Beijing Intellectual Property Court at first instance, following which we filed appeals to the Supreme People’s Court, and such appeals remained pending as of the Latest Practicable Date
Approximately 10.6% of these projects were subject to obligations arising from the relevant open-source software licenses, which require that if we modify certain software components, the modified source code must also be open sourced.
Business · p. 160
Accordingly, such partial software open-source obligations will not result in negative impact on our research and development, production, or business operations, nor will they lead to the leakage of our technological secrets or impairment of our intellectual property rights.
During the Track Record Period and up to the Latest Practicable Date, we confirm that we have utilized open-source software in the PRC in compliance with the relevant license terms as follows: (a) our use is limited to compression, development, database and debugging tools as auxiliary development tools, without any modification, resale, lease or secondary distribution
As advised by our PRC Legal Advisor, during the Track Record Period and up to the Latest Practicable Date, we had complied with all PRC applicable intellectual property laws and regulations in all material respects.
Business · p. 156
As of June 30, 2026, we had 246 registered patents, 46 trademarks, 21 software copyrights, 161 integrated circuit layout design rights and one domain name registered in the PRC.
As advised by our PRC Legal Advisor, we have been in compliance with all applicable intellectual property laws and regulations in all material respects during the Track Record Period and up to the Latest Practicable Date.
We fully comply with the intellectual property laws, rules and regulations, and make use of such rules, laws and regulations to protect our intellectual property.
As advised by our PRC Legal Adviser, under the relevant agreements and statement, although our rights are non-exclusive, we have rights to use the Vision Perception Algorithm, source code and SDK software.
Business · p. 175
As further advised by our PRC Legal Adviser, there is no material legal impediment to our Group's use of the Vision Perception Algorithm and the related source code.
Based on the FTO Analysis, our Directors are of the view that there are no valid and enforceable patents of any third party in China and the U.S. covering the amino acid sequences or indications currently under development of our Core Products and we have not infringed any valid and enforceable patents or other IP rights of any third parties.
Business · p. 212
No valid claims of third party patents in the U.S. and the PRC that are infringed by FT-002 or FT-003 have been identified.
We have engaged our PRC IP Counsel and U.S. IP Counsel to carry out freedom-to-operate (FTO) analyses with respect to our Core Products.
Business · p. 212
Based on the FTO analyses, we were not aware of any issued patents that may affect our rights to conduct research and development or commercialization of our Core Products in China and the United States as of the Latest Practicable Date.
Business · p. 212
Directors are of the view that we have maintained sufficient intellectual property protection for our Core Products and product candidates, as well as their associated technologies, and had not infringed any third-party intellectual property rights during the Track Record Period and up to the Latest Practicable Date.
Based on the freedom-to-operate (“FTO”) analysis, as of August 18, 2026, there is no substantial risk of infringement of valid and enforceable issued patents of any third party in the Chinese mainland, Europe and the U.S. that may impact the development and commercialization of our Core Product in the Chinese mainland, Europe and the U.S.