During the Track Record Period, we had not made full contributions to the social insurance premium and housing provident fund based on the actual salary level of some of our employees as prescribed by relevant laws and regulations.
Risk Factors · p. 51
During the Track Record Period, we did not make full contributions to social insurance and housing provident fund based on the actual compensation of our employees.
Business · p. 181
As advised by our PRC Legal Advisors, provided there are no material changes to the current regulatory framework or local implementation practices, and no material employee complaints are received, the likelihood of the relevant authorities imposing retrospective collections or administrative penalties on us for any historical underpayment of social insurance and housing provident fund contributions is remote.
During the Track Record Period, we did not make full contributions to social insurance and housing provident funds for certain employees of us in accordance with applicable PRC laws and regulations.
Business · p. 218
During the Track Record Period, we were not in strict compliance with the requisite contribution requirements in relation to some of our PRC employees, which was primarily attributable to our employees’ unwillingness to bear the costs associated with social insurance and housing provident funds strictly in proportion to their salaries, as it would reduce their disposable income.
Risk Factors · p. 48
We expect to commence gradual rectification of our social insurance and housing provident fund contributions within one year from the [REDACTED].
During the Track Record Period, we engaged a third-party human resource agency to make contributions to social insurance and housing provident funds for certain employees working in cities where we do not have office premises.
Business · p. 197
Such arrangement, although not uncommon in China, is not in strict compliance with relevant PRC laws and regulations.
Risk Factors · p. 38
We made provisions of RMB11,000, RMB0.76 million, RMB0.76 million and RMB0.20 million in FY2023, FY2024, FY2025 and 3M2026, in respect of the potential shortfall arising from the relevant social insurance and housing provident fund contribution arrangements.
During the Track Record Period, we failed to make full contributions to social insurance and housing provident funds for certain of our employees (which primarily consist of newly on-boarded employees) in accordance with the relevant PRC laws and regulations.
Business · p. 176
During the Track Record Period, we failed to make full contributions to social insurance and housing provident fund for certain employees as required under PRC laws and regulations, with shortfalls of approximately RMB0.2 million, RMB0.3 million, RMB0.7 million, RMB0.1 million and RMB0.2 million in FY2023, FY2024, FY2025, 1H2025 and 1H2026, respectively.
Risk Factors · p. 40
Based on the foregoing, our PRC Legal Advisor advised that the likelihood that we are subject to claims for shortfall amounts or material penalties related to our failure to make full social insurance and housing provident fund contributions for our employees is low.
During the Track Record Period, we provided social insurance, including pension insurance, unemployment insurance, work-related injury insurance, maternity insurance and medical insurance for our employees in Chinese Mainland as required by PRC laws and regulations, and statutorily required insurance coverage for overseas employees.
During the Track Record Period, we engaged an independent third-party agency to pay, on behalf of the Company, the relevant contribution for two employees.
Risk Factors · p. 51
During the Track Record Period, we engaged a third-party human resources agency to make social insurance and housing provident fund contributions on our behalf for certain employees, primarily because such employees preferred to have their contributions made at their respective places of residence for the convenience of accessing the relevant benefits locally.
Business · p. 195
Accordingly, the engagement of the third-party human resources agency to make such contributions did not strictly comply with applicable PRC laws and regulations.
In addition, we did not make social insurance and housing provident fund contributions for one foreign employee, for whom we instead purchased commercial insurance in the PRC.
Business · p. 196
As of June 30, 2026, the aggregate contribution shortfall amounted to approximately RMB0.7 million.
Business · p. 196
our PRC Legal Adviser considers the likelihood of such fine being imposed remote
During the Track Record Period, we engaged third-party human resources agencies to pay social insurance premium and housing provident funds on our behalf for certain employees in 15 cities where we did not have local subsidiary or branch.
Business · p. 203
During the Track Record Period, we engaged third-party human resources agencies to pay social insurance premium and housing provident funds on behalf of us.
Risk Factors · p. 49
As of the Latest Practicable Date, we had not received any notices of rectification or penalty related to the engagement of third-party agencies to pay social insurance.
During the Track Record Period, we did not make full contributions to social insurance and housing provident funds strictly in accordance with employees’ actual wages as the contribution base.
Risk Factors · p. 45
In 2023, 2024, 2025 and the five months ended May 31, 2026, the aggregate shortfall of social insurance contributions amounted to RMB50.7 million, RMB53.0 million, RMB40.6 million and RMB10.9 million, respectively, and the aggregate shortfall of housing provident fund contributions amounted to RMB7.6 million, RMB14.3 million, RMB12.6 million and RMB5.5 million, respectively.
Business · p. 175
In particular, we undertake to gradually achieve compliant payment of social insurance contributions within five years after the [REDACTED] or a timeframe otherwise required by the competent authorities.
During the Track Record Period, we did not fully contribute to social insurance for two of our employees, and between January and April 2024, we engaged third-party human resource agencies to pay social insurance and housing provident funds for six of our employees due to the relocation of our headquarters.
Risk Factors · p. 56
As of December 31, 2024 and 2025, the annual shortfalls for social insurance were RMB0.2 million and RMB0.1 million, respectively.
Risk Factors · p. 56
As advised by our PRC Legal Advisers, we could be subject to fines of up to RMB0.9 million in relation to the shortfall in our contribution to social insurance if we fail to repay the outstanding amount within the stipulated period.
During the Track Record Period, we did not make adequate contributions to the social insurance and housing provident fund with respect to certain of our employees, as required by the relevant PRC laws and regulations.
Risk Factors · p. 40
As of the Latest Practicable Date, no administrative action or penalty had been imposed by the relevant regulatory authorities with respect to our social insurance and housing provident fund contributions, nor had we received any order to settle the shortfall.
During the Track Record Period, we did not make full contributions to the social insurance and housing provident fund with respect to certain employees as required by relevant PRC laws and regulations.
Business · p. 211
We have made social insurance contributions and housing provident fund contributions in full since July 2026.
Business · p. 211
Accordingly, the aggregate maximum potential penalty that could be imposed on us for the aforementioned shortfalls during the Track Record Period is approximately RMB13.5 million.
During the Track Record Period, we failed to make full contribution to the social insurance and housing provident funds for some of our employees as required under applicable PRC laws and regulations.
Risk Factors · p. 50
We have not fully rectified the historical shortfall in social insurance and housing provident fund contributions, primarily because (i) the applicable PRC laws and regulations governing social insurance and housing provident funds are intricate and vary by region, which added complexity to our compliance efforts.
Business · p. 208
As of the Latest Practicable Date, no administrative action or penalty had been imposed on us by the relevant regulatory authorities with respect to our social insurance and housing provident funds contributions, nor had we received any order to settle the deficit amount.
During the Track Record Period and up to the Latest Practicable Date, we had not made social insurance and housing provident funds for some of our employees in full in accordance with the relevant PRC laws and regulations. We estimate that the shortfall amounted to RMB11.7 million, RMB17.1 million, RMB17.6 million and RMB4.0 million in 2023, 2024 and 2025 and the three months ended March 31, 2026, respectively.
Business · p. 195
We did not make full contributions to the social insurance and housing funds for our employees in accordance with the relevant PRC laws and regulations during the Track Record Period.
Risk Factors · p. 48
Based on the foregoing, our PRC Legal Advisor is of the view that the likelihood that we or our major subsidiaries would be subject to centralized collection of the historical shortfalls of social insurance and housing provident fund contributions or material administrative penalties due to failure to make full social insurance and housing fund contributions is remote.
During the Track Record Period, we did not fully contribute to social insurance for two of our employees, and between January and April 2024, we engaged third-party human resource agencies to pay social insurance and housing provident funds for six of our employees due to the relocation of our headquarters.
Risk Factors · p. 56
our PRC Legal Advisers are of the view that provided that there are no significant changes in the current policies, regulations, and the enforcement of local authorities, the likelihood of us being subject to active and collective demands for retroactive social security and housing fund payment, or administrative penalties resulting in material adverse effects on our business, financial condition by relevant competent authorities is low.
During the Track Record Period, our Company and some of our PRC subsidiaries engaged third-party human resources agencies to pay social insurance premium and housing provident funds for certain of our employees.
Risk Factors · p. 50
Such arrangements, although not uncommon in China, are not in strict compliance with relevant PRC laws and regulations.
Business · p. 209
We have not fully rectified this non-compliance primarily because (i) our sales personnel are dispersed across various cities where our Group lacks legal entities, and these employees generally prefer to make the relevant contributions in their place of residence so as to enjoy the applicable local benefits.
During the Track Record Period and up to the Latest Practicable Date, we did not pay social insurance and housing provident fund in full for certain employees based on their actual wages in accordance with the applicable PRC laws and regulations.
Business · p. 208
The shortfall of social insurance and housing provident fund contributions amounted to an aggregate of approximately RMB0.8 million during the Track Record Period.
Business · p. 208
During the Track Record Period, we did not make full payment for social insurance and housing provident fund contributions for a few employees.
We made full social insurance and housing provident fund contributions for our employees during the Track Record Period, except that we engage third-party human resources agencies to do so for employees whose work locations differed from our main operating entities, which involves potential risks.
Business · p. 187
As advised by our PRC Legal Advisor, there are currently no national laws or regulations that explicitly specify penalties specifically targeting employers that use third-party human resources agencies to make social insurance and housing provident fund contributions for their employees.
Business · p. 200
We ceased the engagement of third-party human resources agencies for social insurance and housing provident fund contributions with effect from April 1, 2026.
As of the Latest Practicable Date, (i) there were no shortfalls in contribution to social insurance and housing provident funds for our employees; and (ii) no labor disputes or legal proceedings concerning social insurance or housing provident fund contributions had been raised against us.