During the Track Record Period, we did not make adequate 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.
Risk Factors · 第 46 页
Our shortfall of social security insurance and housing provident fund contribution amounted to RMB19.4 million, RMB25.9 million, RMB25.0 million and RMB7.6 million in 2023, 2024, 2025, and the four months ended April 30, 2026, respectively.
Business · 第 185 页
We intend to progressively adjust the applicable contribution bases and use our best efforts to complete the rectification by the end of 2028.
During the Track Record Period and up to the Latest Practicable Date, our Company and certain of our PRC subsidiaries did not make full social insurance and housing provident fund contributions for certain employees based on their actual wages.
Business · 第 204 页
The shortfall in social insurance and housing provident fund contributions amounted to RMB26.7 million, RMB30.1 million, RMB34.6 million, and RMB18.0 million in 2023, 2024, 2025, and the six months ended June 30, 2026, respectively.
Business · 第 204 页
During the Track Record Period, our Company and certain of our PRC subsidiaries did not make full social insurance and housing provident fund contributions for certain employees based on their actual wages.
During the Track Record Period, we had not made full contributions to the foregoing employee benefits for our employees.
Business · 第 141 页
Our PRC Legal Advisor is of the view that, taking into account the current regulatory environment and enforcement practice, provided that (i) there are no material changes in the applicable laws, regulations or local enforcement policies and (ii) we complete the rectification measures and make any required supplementary contributions within the prescribed periods if so ordered, the risk of us being subject to centralized collection of outstanding historical social insurance and housing provident fund contributions, or material penalties arising from such non-compliance during the Track Record Period, is remote.
宁波舜宇智行科技股份有限公司Ningbo Sunny Smart Autotech Company Limited
往绩记录期间社保及住房公积金未足额缴纳
During the Track Record Period, we did not make full contribution to social insurance and the housing provident funds as required under PRC laws and regulations.
Risk Factors · 第 45 页
Considering the relevant regulatory policies, regulatory confirmations or interviews and the facts as mentioned above, our PRC Legal Advisor is of the view that on the premise that no significant changes of the current policies and regulations, as well as implementation and supervision requirements of the local governments, (i) the risk of us being required by relevant PRC authorities to pay the material shortfall of social insurance and housing provident fund contributions is remote, and (ii) the risk of us subject to material administrative penalties for failing to make social insurance and housing provident funds in full is remote.
Risk Factors · 第 45 页
during the Track Record Period, we did not entered into any agreements that waived social insurance payment obligations with our employees or otherwise required our employees to make any such waiver
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 · 第 51 页
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 · 第 181 页
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 · 第 218 页
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 · 第 48 页
We expect to commence gradual rectification of our social insurance and housing provident fund contributions within one year from the [REDACTED].
广西玉柴船电动力股份有限公司Guangxi Yuchai Marine and Genset Power Co., Ltd.
社保及住房公积金缴存不足额
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 · 第 176 页
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 · 第 40 页
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 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 · 第 45 页
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 · 第 175 页
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 · 第 56 页
As of December 31, 2024 and 2025, the annual shortfalls for social insurance were RMB0.2 million and RMB0.1 million, respectively.
Risk Factors · 第 56 页
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 · 第 40 页
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.
杭州糖吉医疗科技股份有限公司HANGZHOU TANGJI MEDICAL TECHNOLOGY CO., LTD.
社保及住房公积金缴存不足
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 · 第 211 页
We have made social insurance contributions and housing provident fund contributions in full since July 2026.
Business · 第 211 页
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 · 第 50 页
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 · 第 208 页
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 · 第 195 页
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 · 第 48 页
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 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 · 第 208 页
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 · 第 208 页
During the Track Record Period, we did not make full payment for social insurance and housing provident fund contributions for a few employees.
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.
During the Track Record Period and up to the Latest Practicable Date, we did not make social insurance and housing provident fund contributions for certain employees in full in accordance with the applicable PRC laws and regulations.
Risk Factors · 第 31 页
During the Track Record Period, we did not make social insurance and housing provident fund contributions for some of our employees in full, in accordance with the relevant PRC laws and regulations, primarily because certain employees had chosen for us not to pay the social insurance and housing provident fund contributions in full, as that also requires additional contributions from the employee.
Business · 第 129 页
our PRC Legal Advisor is of the view that the likelihood that we are (i) subject to material administrative penalties due to our failure to make full contribution of social insurance and housing provident fund contributions and (ii) required by relevant authorities actively to pay the shortfall for social insurance and housing provident fund contributions collectively 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 as required by the relevant PRC laws and regulations for our employees in certain PRC entities of our Group.
Risk Factors · 第 46 页
The shortfall amount of social insurance and housing provident fund contributions is estimated to be approximately RMB13.7 million, RMB20.1 million, RMB26.5 million, and RMB14.7 million in 2023, 2024, 2025, and for the six months ended June 30, 2026, respectively.
Risk Factors · 第 46 页
During the Track Record Period and up to the Latest Practicable Date, we did not make contributions to the social insurance and housing provident funds in full amount required by the relevant PRC laws and regulations, primarily because certain employees were unwilling for us to do so, as it would require additional contributions from them.
During the Track Record Period and up to the Latest Practicable Date, (i) we have not made social insurance and housing provident fund contributions for certain employees in full and (ii) we have not made housing provident fund contribution for certain employees, in accordance with the relevant PRC laws and regulations, and the maximum shortfall sum of which in aggregate is immaterial.
Business · 第 162 页
Based on the best information and knowledge of our Directors, the shortfall for the social insurance and housing provident fund contributions payable by our Group amounted to (i) RMB53,000, RMB67,000, RMB68,000 and RMB13,000; and (ii) RMB142,000, RMB142,000, RMB241,000 and RMB167,000 for FY2023, FY2024, FY2025 and 6M2026, respectively.
Business · 第 163 页
Our PRC Legal Advisers has advised that, based on the confirmation from the relevant competent authority and the facts stated above, the risk that our Group would be imposed of significant administrative penalties or being proactively initiated collective actions by the relevant competent authorities to recover such shortfalls for the Track Record Period that may cause material adverse impact on the Group is low, provided that there is no significant changes in current policies, regulations and local enforcement practices and supervision or employee complaints, reports and our Group would rectify its non-compliance upon the competent authorities in time.
浙江荣泰电工器材股份有限公司Zhejiang Rongtai Electric Material Co., Ltd.
社保及住房公积金未足额缴纳
During the Track Record Period and up to the Latest Practicable Date, we did not make full contributions to social insurance and housing provident funds for certain employees as required by relevant PRC laws and regulations.
Risk Factors · 第 42 页
During the Track Record Period and up to the Latest Practicable Date, we did not make full contributions to social insurance and housing provident funds for certain employees based on their actual salaries.
Business · 第 173 页
Our Directors believe, and our PRC Legal Advisor is of the view, that provided there are no material changes to current policies, regulations or regulatory practice and in the absence of group employee complaints, reports or related litigation or arbitration, the risk of us being subject to major administrative penalties and collective recovery of social insurance and housing provident fund contributions by the competent authorities due to not making full contributions based on employees’ actual salaries is low.
Additionally, we also did not provide housing provident fund contribution for one employee during the Track Record Period.
Risk Factors · 第 47 页
We expect to fully rectify the housing provident fund shortfall by September 30, 2026.
Business · 第 193 页
The reason why we did not provide housing provident fund contributions for this employee was due to the fact that this employee voluntarily waived the housing provident fund.