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We heavily rely on Mr. Jay Chou on both our new retail business and IP creation and operation business.

Our products under the new retail segment with promotional activities involving Mr. Jay Chou or his related IPs accounted for 83.0%, 72.8%, 64.8% and 45.2% of our total revenue respectively, while our IP creation and operation that centered around Mr. Jay Chou or involved him as one of the performers accounted for 5.7%, 19.6%, 9.1% and 13.3% of our total revenue during the Track Record Period.

Although we heavily rely on Mr. Jay Chou on both our new retail business and IP creation and operation business, our Directors are of the view that the sustainability, profitability and success of our Group’s business are attributable to our capability in our different business components, including, among others, identify and introduce products that are well received by our distributors and target consumers through establishing effective distribution network, and the empowerment of our new retail business by our IP creation and operation business as well as other various sales and marketing means.

As disclosed in the table setting forth the breakdown of our advertising revenue by major media platforms which our Group operated on during the Track Record Period set out in the sub-section headed “Our Products and Services - Advertising Solutions”, our revenue generated through social media platforms operated by Supplier A accounted for approximately 66.7%, 68.4% and 62.4% of our total advertising revenue for each of the three financial years ended 31 December 2022 respectively.

Our Group has not entered into any service agreement with Supplier A in relation to the provision of the said boosting services.

Our Directors therefore believe that the growing popularity of our apps and websites ameliorates to a certain extent the Group’s reliance on third party social media platforms.

An example of noteworthy collaboration with independent chain health check providers is our relationship with Meinian, a leading health examination and health consulting service provider in China that we started cooperating with in April 2019.

Meinian shall use its best efforts to prioritize us when outsourcing their testing services, including testing items that are currently handled by Meinian itself with an intention to be outsourced to us going forward ("Meinian self-tested items"), and those already outsourced to third-party ICLs.

Besides such collaboration with Meinian, we have no other relationships in terms of business, financing, family, or management, with Meinian, its subsidiaries, shareholders, directors, senior management or close associates of such parties as of the Latest Practicable Date.

We have two Core Products and 14 other pipeline product candidates. Both of our Core Products are in-licensed from Novartis.

In consideration of the licenses and rights granted to us, we are required to pay the non-refundable upfront payment of US$5.0 million and for the LAE002 and LAE003, US$242.5 million in milestone payments

We have the exclusive global rights to develop, manufacture and commercialize LAE002, LAE001, LAE005 and LAE003 under our licensing agreement with Novartis.

Innovent will supply the sintilimab injection for free for our use in the combination therapy study.

We shall be fully responsible for all the costs and expenses in connection with the conduct of the development activities for the Study and other activities required for the Study except for the cost of sintilimab injection, which Innovent shall provide for free.

We believe that the CRL issued by the FDA for sintilimab for the first-line treatment of advanced NSCLC will not have a material impact on the Study

In the year ended December 31, 2022, we recorded total revenue of RMB9.2 million from sales of CUP-MNDE, 51.2% of which was derived from sales through the Tmall Global e-commerce platform.

During the Track Record Period, all of the sales of CUP-SFJH was generated on Tmall Global e-commerce platform (Cutia HK as the contracting party).

We directly sell our products, including CUP-MNDE, CUP-SFJH as well as certain skin care products, including facial masks, creams, toners, sprays, serums and gels (“Routine Skin Care Products”) to customers through online channels, including the Tmall e-commerce platform.

We have been cooperating with Media Publisher A since 2017 as its reseller, being a first-tier digital marketing agent for Media Publisher A in China.

Media Publisher A was our largest media publisher for the Track Record Period and our gross spending with it was US$355.7 million, US$472.7 million, US$608.0 million and US$336.1 million for the years ended December 31, 2019, 2020 and 2021 and the nine months ended September 30, 2022, respectively, accounting for 99.6%, 99.2%, 99.6% and 99.6% of our total gross spending for the respective periods.

In particular, we have been a reseller in China for Media Publisher A since 2017 and Media Publisher A was our largest media publisher for the Track Record Period and our gross spending with it was US$355.7 million, US$472.7 million, US$608.0 million and US$336.1 million for the years ended December 31, 2019, 2020 and 2021 and the nine months ended September 30, 2022, respectively, accounting for 99.6%, 99.2%, 99.6% and 99.6% of our total gross spending for the respective periods.

We have the exclusive right to set up and operate Domino’s Pizza stores, as well as to use and license the Domino’s Pizza and associated trademarks in the operation of pizza stores in the China mainland, the Hong Kong Special Administrative Region of China and the Macau Special Administrative Region of China (the “Territory”).

The initial term of the Master Franchise Agreement will expire on June 1, 2027.

We do not foresee any material impediment to meeting these growth targets for the remainder of the term of the Master Franchise Agreement, which requires that we maintain 1,000 stores by the end of 2026.

Third-party channels | 572 | 51.8% | 762 | 47.3% | 873 | 43.2%

For our cooperation with these third party channels, we are charged (i) fees ranging from approximately one percent to approximately six percent of the price of each order fulfilled by a third-party online ordering platform and (ii) fees for other advertising and promotion activities, which fees did not account for a material portion of our total advertising and promotion expenses during the Track Record Period.

Within all our online channels, our own online channels generate a growing proportion of our orders, as we generated approximately 44%, 49% and 52% of our revenue from our own online channels in 2020, 2021 and 2022, respectively.

We did not hold AVP License or RTPPO License as of the Latest Practicable Date.

During the Track Record Period, all of our revenue-generating offerings involved services provided by Fumeng under its AVP License.

For the year ended December 31, 2019, 2020 and 2021 and for the ten months ended October 31, 2022, the technology service fee of Fumeng and Shenzhen Huatian was nil, nil, RMB650,000 and RMB1,100,000, respectively, representing nil, nil, 0.5% and 0.9% of our total general and administrative expenses during the same periods.