关联交易及往来款项

In 2019, 2020 and 2021 and the ten months ended October 31, 2022, we incurred technology fee of RMB147.1 million, RMB109.8 million, RMB0.01 million and nil, respectively, to related parties, which were primarily in relation to software commissioned development service provided to us, including mainly the development of SmartInvest Pro (previously named as Hui Investment) and certain modules of operation management system.

In 2021 and the ten months ended October 31, 2022, we had listing expense paid on our behalf by Yintech Investment Holding and Yintech Enterprise (HK) Co., Ltd of RMB6.1 million and RMB6.0 million in relation to the listing fees including legal fees, legal search fees and listing application fees as we did not have a Hong Kong bank account or when our Hong Kong bank account was just opened and did not have cash to cover the listing fees in 2021 and the ten months ended October 31, 2022, when the listing expenses were due.

Based on the above, our Directors believe that the terms and prices were in line with the market practice and the industry pricing methods, and such related party transactions did not distort our results of operations or make our historical results not reflective of our future performance.

As of September 30, 2022, our outstanding balance with related parties primarily consists of prepayments, other receivables and other assets of RMB204 thousand with Wuhu Luge, RMB155 thousand with Xinjiang Zhongya and RMB58 thousand with Qingkong Shoulu, and other payables and accruals of RMB400 thousand with Qingkong Shoulu.

Such balances are non-trade in nature and are expected to be settled prior to the Listing.

As of the Latest Practicable Date, all the personal guarantees provided by our Controlling Shareholders, Mr. Feng and Mr. Du to our Group were all released upon maturity of respective loan or agreed by relevant banks in advance, and all loans, advances and balances due to the Controlling Shareholders were fully repaid.