与股东关联方购销

Revenue from the sale of goods and services to AG Zhejiang, AG Services and AG Huanan, associates of our Controlling Shareholders relates to aircraft development, provision of procurement support and technical support, provision of aircraft products, aircraft kits sale and provision of program services.

As of December 31, 2021, 2022 and 2023, the amounts due from related parties, consisting of our prepaid engine warranty purchased from Continental which will be utilized over the warranty period, were US$3.7 million, US$4.8 million and US$9.6 million, respectively.

Our Directors are of the view that each of the related party transactions set out in Note 31 to the Accountant's Report in Appendix I to this Prospectus was conducted on an arm's length basis and would not distort our track record results or cause our historical results to be not reflective of our future performance.

During the Track Record Period, we entered into various related party transactions.

Purchases of services and goods | 126,186 | 106,314 | 337,174

As of December 31, 2023, all of our amounts due to related parties that were non-trade in nature had been settled.

Provision of API marketplace services | 5,537 | 4,922 | 5,056

We are of the view that our transactions with related parties during the Track Record Period were trade in nature and were conducted on an arm’s length basis and with normal commercial terms between the relevant parties.

We are also of the view that our related party transactions during the Track Record Period will not distort our historical results or make our historical results unreflective of our future performance.

With respect to the related party transactions set forth in the Accountants’ Reports in Appendices IA and IB to this prospectus, our Directors confirm that these transactions were conducted on normal commercial terms or such terms that were no less favorable to our Group than those available to Independent Third Parties and were fair and reasonable and in the interest of our Shareholders as a whole.

Payment for such services was made to the supplier from our Group/Shenzhen EDA Group via Sea Lark Solution on a back-to-back basis, and Sea Lark Solution did not derive any profit therefrom.

During the Track Record Period, our Group/Shenzhen EDA Group has leased certain self-operated overseas warehouses from Lesso Mall Development (Auburn) Pty Ltd and Lesso Mall Development (Long Island), Inc. for the “last-mile” fulfillment services, in aggregate, amounted to RMB1.5 million, RMB1.9 million and RMB2.0 million, respectively.

During the Track Record Period, substantially all of our balances with related parties were trade in nature.

Our Directors believe that these transactions were conducted in the ordinary and usual course of business, and did not distort our results of operations or make our historical results unreflective of our future performance.

The balances of other receivables with related parties, which are non-trade in nature, had been subsequently settled in November 2023.

During the Track Record Period, procurement of raw materials for the WXB Group was conducted on a centralized basis, which had enabled us to benefit from the substantial economies of scale that are associated with the magnitude of the global business of the WXB Group.

Our other income primarily consisted of (i) rental income and other related income, arising from the lease of our assembly center to the Remaining WXB Group, (ii) sales of materials to related parties, primarily related to intercompany transfer of materials to the Remaining WXB Group, (iii) interest income from banks, and (iv) research and other grants related to income, which primarily related to awards recognizing our contribution to the high-tech industry and economy.

Trade receivables from related parties primarily comprised outstanding amounts receivable from the Remaining WXB Group.

We purchased paddy from entities controlled by our equity shareholders of RMB30.0 million, RMB102.5 million and RMB6.5 million in 2020, 2021 and 2022, respectively.

Supplier G is a group of farmers cooperatives controlled by Mr. Zhao Wenchen, a connected person of the Company, which had been dissolved in 2022.

During the Track Record Period, the prices of the paddy at which Supplier G sold to us were generally in line with the prevailing local market price, and such prices were similar to those offered by independent suppliers.

We transferred our cell therapy programs to Kelun Group in December 2022 to focus on the research and development of our pipeline assets.

Our trade-related amounts due from related parties, including Kelun Group and Kelun Medicine & Trade Group, increased from RMB22.6 million as of December 31, 2021 to RMB61.8 million as of December 31, 2022, primarily in relation to the transfer of cell therapy programs to Kelun Group in 2022.

As of April 30, 2023, RMB47.6 million, or 77.0% of our amounts due from related parties as of December 31, 2022 had been subsequently settled.

In September 2022, as Mr. Wu determined to focus more on liquor business instead of liquor-related supply chain business, Yunnan Huapeng disposed its entire equity interests of Xiangtan Huapeng to Huanan Huashi Packaging Co., Ltd. (湖南華世包裝有限公司, “Hunan Huashi”), which was controlled by Mr. Chen Yanglai, the consideration of which amounting to RMB12 million was determined after arm’s length negotiation between Yunan Huapeng and Hunan Huashi with reference to, among others, the net assets of Xiangtan Huapeng and was considered as fair and reasonable (the “Disposal”).

Before and after the Disposal, our Group has been purchasing packaging materials of baijiu products from Xiangtan Huapeng and Guizhou Huashi based on arm’s length negotiation through public tender and bidding process with other third party suppliers.

The terms offered by Xiangtan Huapeng and Guizhou Huashi to our Group are no less favorable than the terms available from Independent Third Parties.