The Missouri wrongful-death lawsuit arose from a traffic collision allegedly involving an off-road motorcycle, in which the plaintiff alleges negligence and a design defect in the motorcycle’s fuel system.
Risk Factors · p. 33
The plaintiff and defendant commenced settlement negotiations in May 2026, and such negotiations are still ongoing as of the Latest Practicable Date.
The New York personal injury lawsuit was filed against Tao Motor in the United States District Court for the Western District of New York on January 31, 2025 under case number 25-cv-6074, which was related to our off-road motorcycle products.
Business · p. 183
The separate New York personal-injury lawsuit relates to an alleged engine oil leakage from an off-road motorcycle, and the plaintiff seeks damages of more than US$75,000.
In 2024, Zhejiang Taotao E-commerce Co., Ltd. was subject to an administrative penalty imposed by the Yongkang City Administration for Market Regulation in relation to the sale of certain helmet products which were found non-conforming in a product test conducted by the authority.
our Directors confirm that during the Track Record Period and up to the Latest Practicable Date, the products manufactured and sold by our Group complied in all material respects with the applicable product-safety standards and mandatory certification requirements.
12 December 2023: VG Zenith received a warning letter regarding website advertisements that potentially contravened the applicable advertising restrictions under the UMAO.
Business · p. 120
21 May 2026: VG Zenith and Victor Zenith each received four warning letters relating to various online and offline advertisements that potentially contravened the applicable advertising restrictions under the UMAO.
Business · p. 120
Our Directors confirm that no prosecution or follow-up enforcement action has been taken by the Department of Health against us, and as at the Latest Practicable Date, the warning letter issued on 12 December 2023 was already time-barred for prosecution.
in January 2024, the Guangdong Provincial Medical Products Administration identified that the “nominal length” parameter of one batch of our disposable tracheostomy tubes deviated from the registered technical specifications.
Business · p. 189
For these two incidents, we were subject to (i) an administrative fine of RMB20,000 in connection with the syringe pump incident; and (ii) an administrative fine of RMB20,000 and the confiscation of the affected batch of disposable tracheostomy tubes valued RMB560 in total.
Business · p. 190
As of the Latest Practicable Date, we had duly paid the fine in full and promptly implemented rectification measures, including (i) investigating the root causes of the issue; (ii) suspending the sale of the affected batches identified during the inspections, which had not entered the market and therefore did not require product recalls; and (iii) organizing training sessions to reinforce the correct inspection procedures for the relevant products, with all relevant personnel having completed the required training and assessment.
During the Track Record Period, we voluntarily implemented two Class III recalls, including two batches of coagulation test kits and one batch of infusion equipment. Both recalls were initiated to update or revise the product labeling information.
Risk Factors · p. 42
we identified a discrepancy between the expiration dates printed on the vial labels and those on the outer packaging due to an inadvertent printing error
Business · p. 191
we inadvertently labeled the outer packaging with the newly approved registration certificate numbers during the transitional period following the renewal of the relevant registrations
Our Directors confirmed that, to their best knowledge, during the Track Record Period and up to the Latest Practicable Date, we had complied with the Two-Invoice System in all material aspects as we (i) had not been deemed 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, (iii) were not subject to any administrative fines or penalties by the competent authorities in relation to the Two-Invoice System, and (iv) had not received any warning or notice from any competent authorities in relation to the compliance of the Two-Invoice System.
As advised by each of our PRC Legal Advisor (with respect to PRC law only), Hong Kong legal advisor (with respect to Hong Kong law only), Japanese legal advisor (with respect to Japanese law only), U.S. legal advisor (with respect to U.S. law only) and German legal advisor (with respect to German law only), during the Track Record Period and up to the Latest Practicable Date, we had complied with the relevant laws and regulations in relation to product liability in all material respects in the PRC, Hong Kong, Japan, the U.S. and Germany (as the case may be).
For example, we were fined EUR 1 million by the Italian Competition Authority (AGCM) in 2025 after it concluded that certain sustainability-related statements on our website could mislead consumers.
In 2025, we were fined by DGCCRF, which oversees both competition and consumer protection in France, in relation to our historical pricing display and environmental claims and this matter has since been resolved in July 2025 through a settlement involving a fine of EUR 40 million.
Risk Factors · p. 82
In 2025, we were fined by DGCCRF, the French authority which oversees both competition and consumer protection in France, in relation to our historical pricing display and environmental claims, and this matter has since been resolved through a settlement involving a fine of EUR 40 million completed in July 2025.
In addition, in June 2026, DGCCRF imposed administrative fines totalling approximately EUR 22.5 million on two of our subsidiaries in connection with deficiencies identified in our order confirmation practices, the exercise of consumer withdrawal rights, product traceability disclosures and environmental information disclosures relating to synthetic textile products.
Risk Factors · p. 83
We disagree with this decision, believe the fines to be manifestly disproportionate, and are in the process of contesting both sanctions.
The Consumer Protection Cooperation Network of EU national consumer authorities (the “CPC Network”) initiated a formal investigation against us, in which the CPC Network requested us to provide information related to our consumer return, discounting and other practices, and we have responded to the CPC Network within the requested timeline and have made commitments to, and taken, corrective actions.
In November 2025, French authorities commenced proceedings against us regarding the sale of certain inappropriate products by third-party merchants on our marketplace.
Business · p. 206
In March 2026, the appellate court rendered its decision upholding the original judgment, dismissing all of the French government’s claims.