During the Track Record Period, we engaged third-party human resources agencies to pay on our behalf social insurance premium and housing provident funds for a small portion of our employees.
Risk Factors · 第 42 页
As of July 31, 2026, we had ceased engaging third-party human resources agencies to make social insurance and housing provident fund contributions for a small portion of our employees, and all such contributions had since been made directly by us or our PRC subsidiaries and branches in accordance with applicable PRC laws and regulations.
Business · 第 171 页
as advised by our PRC Legal Advisor, the relevant risk of us being subject to material penalties as a result of paying the social insurance premium or housing provident fund through third-party agencies is remote
Separately, we did not make full social insurance for certain employees in strict compliance with relevant laws and regulations.
Risk Factors · 第 40 页
The amount of the shortfall in contributions for social insurance and housing provident fund in 2023, 2024, 2025 and the four months ended April 30, 2026 was RMB8.1 million, RMB9.3 million, RMB10.7 million and RMB4.1 million, respectively.
Risk Factors · 第 40 页
During the Track Record Period, our PRC subsidiaries engaged third-party human resources agencies to pay social insurance premiums and housing provident funds for several employees per their request, and we did not make full social insurance for certain employees in strict compliance with relevant laws and regulations.
During the Track Record Period, our PRC subsidiaries engaged third-party human resources agencies to pay social insurance premiums and housing provident funds for only a few employees per their request.
Risk Factors · 第 40 页
As of the Latest Practicable Date, we had not received any notice for payment of penalties of social insurance premium or housing provident funds from the competent authorities, nor any administrative penalty or labor arbitration application from employees for the agency arrangement with third-party human resources agencies.
During the Track Record Period, certain of our PRC subsidiaries did not make social insurance and housing provident fund contributions for certain of our employees in full in accordance with applicable PRC laws and regulations.
Risk Factors · 第 37 页
In 2023, 2024 and 2025 and the six months ended June 30, 2026, the aggregate shortfall of our social insurance and housing provident fund contributions amounted to approximately US$5.0 million, US$5.0 million, US$5.3 million and US$1.8 million, respectively.
Business · 第 163 页
as advised by our PRC Legal Advisor, based on the relevant regulatory policies and the facts stated above in the absence of further employee complaints, litigations or arbitrations and under the premise that there are no changes to current applicable PRC regulatory policies and regulations or to the enforcement and supervision requirements of the central and local governments or the relevant regulatory departments, the likelihood that the relevant authorities would take the initiative to require us to pay the shortfall for social insurance and housing provident fund contributions or that we would be subject to material administrative penalties due to our failure to provide full social insurance and housing provident fund contributions for our employees is remote.
During the Track Record Period, we did not fully contribute to social insurance for certain of our employees.
Risk Factors · 第 47 页
During the Track Record Period, there were instances where we did not make full contributions to social insurance or housing provident fund for certain employees.
During the Track Record Period, since some of our employees, for example, those located in cities where we did not have subsidiaries, prefer their social insurance and housing provident funds to be paid at their respective resident places for convenience of utilizing such benefits locally and there may only be limited number of employees in one city, we engaged third-party agents to pay social insurance and housing provident funds for them.
Business · 第 163 页
As of the Latest Practicable Date, we had ceased such abovementioned arrangements.
In addition, during the Track Record Period, we engaged a third-party human resource agency to pay social-insurance and housing-provident-fund contributions for some employees. We had ceased such arrangements in June 2026.
During the Track Record Period, we did not make social insurance and housing provident fund contributions for certain employees in full based on the contribution bases required under applicable PRC laws and regulations.
Risk Factors · 第 43 页
However, there remains the possibility that the relevant authorities may determine that the contribution arrangements described above do not comply with applicable laws and regulations.
In addition, during the Track Record Period, we engaged a third-party human resources agency to make social insurance and housing provident fund contributions for certain employees.
Risk Factors · 第 43 页
During the Track Record Period, the Company also made social insurance and housing provident fund contributions for certain employees through its subsidiaries, Linuo Glass Products Marketing and Linuo Intelligent Robot.
Due to historical reasons, differences in local practice and administrative complexities, certain of our PRC subsidiaries did not register for and/or make full contributions to social insurance and housing provident fund in accordance with relevant laws and regulations during the Track Record Period.
Business · 第 174 页
In 2023, 2024, 2025 and the five months ended May 31, 2026, the shortfall amounts were approximately RMB9.1 million, RMB11.3 million, RMB12.3 million and RMB4.0 million, respectively.
Business · 第 174 页
Our PRC Legal Advisor is of the view that our potential exposure to penalties from the competent authorities for failing to pay social insurance and housing provident fund contributions for certain of our employees during the Track Record Period are remote.
During the Track Record Period, social insurance for a few employees were not paid in full in accordance with PRC laws.
Risk Factors · 第 62 页
As of March 31, 2026, social insurance for a few foreign employees were not paid in full in accordance with PRC laws as these employees have made contributions in their home country or are unwilling to make contributions in China.
Business · 第 189 页
Accordingly, the maximum penalty that may be imposed on us is RMB29.3 million, if we fail to make required payment within the prescribed period, being three times the shortfall of our social insurance contribution of approximately RMB9.8 million as of March 31, 2026.
In addition, during the Track Record Period, we engaged third-party human resource agencies to pay social insurance and housing provident fund for certain of our employees.
Risk Factors · 第 62 页
As of the Latest Practicable Date, our subsidiaries have obtained the written confirmation issued by the third-party human resource agencies confirming the full payment of social insurances and housing fund contributions with respect to such employees, and such employees have issued written undertaking to acknowledge that they are aware of the legal risks of requesting to entrust a third-party human resource agency to pay social insurances and housing fund contributions and bear all the liabilities arising therefrom by himself/herself.
Business · 第 189 页
We plan to complete the rectification of such non-compliance within two years after the Listing.
During the Track Record Period and up to the Latest Practicable Date, we did not made social insurance and housing provident fund contributions for some of our employees in full.
Business · 第 173 页
In 2023, 2024, 2025 and the six months ended June 30, 2026, (i) the shortfall for the social insurance payable amounted to RMB0.3 million, RMB0.7 million, RMB1.1 million and RMB0.9 million, respectively; and (ii) the shortfall for the housing provident fund payable amounted to RMB0.1 million, RMB0.5 million, RMB0.5 million and RMB0.5 million, respectively.
Business · 第 173 页
During the Track Record Period and up to the Latest Practicable Date, we did 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.
During the Track Record Period, we had not made social insurance and housing provident fund contributions for certain of our employees, in full, in accordance with the relevant PRC laws and regulations.
Business · 第 158 页
Since January 2026, we have been increasing the payment bases for our social insurance and housing provident fund contributions to the level compliant with the requirements of relevant local governmental authorities.
Business · 第 159 页
Based on the foregoing, our PRC Legal Advisor is of the view that the likelihood that we are subject to material administrative penalties due to our failure to make full contribution of social insurance and housing provident fund contributions during the Track Record Period is remote.
During the Track Record Period and up to the Latest Practicable Date, we did not make full contributions to the social insurance and housing provident funds with respect to certain of our employees as required by the relevant PRC laws and regulations.
Business · 第 173 页
During the Track Record Period, there are instances where social insurance and housing provident fund contributions for some of our employees were not fully based on their actual salary levels, and for a portion of our employees, the housing provident fund contribution procedures are not yet fully in place.
Risk Factors · 第 42 页
We have, since December 2025, made housing provident fund contributions for our employees who were previously not covered.
In 2023, 2024, 2025 and the three months ended March 31, 2026, the shortfall in our social insurance and housing provident fund contributions amounted to approximately RMB12.1 million, RMB11.7 million, RMB8.9 million and RMB2.4 million, respectively.
Business · 第 196 页
In addition, we did not make social insurance contributions and housing provident funds in full for certain employees, primarily due to varying individual preferences regarding participation levels in social benefit programs.
Risk Factors · 第 57 页
Based on the above, we have not made provisions for the insufficient contribution of the social insurance and housing provident fund.
In addition, during the Track Record Period and up to the Latest Practicable Date, we engaged certain third-party human resources agencies to make social insurance and housing provident fund contributions on behalf of certain employees in the localities where they worked or resided.
Business · 第 196 页
Such arrangements, although not uncommon in China, are not in strict compliance with relevant PRC laws and regulations.
Business · 第 196 页
During the Track Record Period, we engaged third-party human resource agencies to pay social insurance and housing provident fund for two of our employees at their request because we accommodated their preferences for participating in social insurance and housing provident fund schemes in their respective place of residency.
As of the Latest Practicable Date, we have entered into formal employment contracts with employees in accordance with relevant PRC labor laws and regulations, and the Company has made social insurance (pension, medical, work-related injury, unemployment and maternity) and housing provident fund contributions for all our current employees as required.
During the Track Record Period, we and certain of our PRC subsidiaries did not make adequate contribution to social insurance and housing provident funds for employees.
Risk Factors · 第 49 页
During the Track Record Period, we and certain of our PRC subsidiaries did not make adequate contribution to social insurance and housing provident funds for employees as required by relevant PRC laws and regulations, primarily because the employees and employer are both obligated to make their own contributions to social insurance and housing provident funds under applicable laws and regulations, while certain of our employees were not willing to bear the costs associated with social insurance and housing provident funds strictly in proportion to their salaries.
Business · 第 169 页
our PRC Legal Advisor is of the view that, in the absence of collective employee complaints, litigations or arbitrations and under the premise that there are no significant changes to current PRC policies and regulations or to the enforcement and supervision requirements of local governments, the risk of us being penalized or required to make up payments by the relevant competent authorities with respect to the failure to provide full social insurance and housing provident fund contributions is remote.
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 · 第 38 页
We did not make full contributions to the social insurance and housing provident fund for the relevant employees primarily because: (1) the relevant registration or contribution procedures could not be successfully completed for certain employees; and (2) many of our employees were not willing to bear the costs associated with social insurance and housing provident funds.
Business · 第 147 页
the likelihood that we would be subject to material administrative penalties or be proactively required by the relevant competent authorities to make retroactive contributions in respect of such non-compliance during the Track Record Period is remote.