among the provinces where our products are sold, only a few provinces (comprise Anhui, Shaanxi, Shanxi, Fujian and Xizang Autonomous Region) explicitly require that the Two Invoice System apply to medical consumables to regulate their distribution.
Business · p. 173
In 2024, 2025 and the six months ended June 30, 2026, our revenue derived from such regions amounted to RMB504.3 thousand, RMB886.5 thousand and RMB248.1 thousand, respectively, accounting for 1.1%, 1.4% and 0.4% of our total revenue, respectively.
Business · p. 173
Our Directors are of the view that, during the Track Record Period and up to the Latest Practicable Date, the implementation of the Two-Invoice System has not had any material adverse impact on our operations, based on the following:
We require our distributors to strictly comply with the Two-Invoice System in China.
Business · p. 164
We have adopted a series of internal control measures to monitor the implementation of the Two-Invoice System in different areas to ensure our continuous compliance with relevant rules, regulations, and policies.
Business · p. 164
Our Directors confirm that during the Track Record Period and up to the Latest Practicable Date, we (i) had not been deemed by competent authorities to have violated or circumvented any law, regulations, rules or policies in relation to the Two-Invoice System, (ii) had not been disqualified from participating in public tendering processes in any province in China, (iii) had not been subject to any administrative fines or penalties by competent authorities in relation to the Two-Invoice System, and (iv) had not received any warning or notice from any competent authorities in any provinces in relation to our compliance with the Two-Invoice System.