During the Track Record Period, to safeguard effective collection of payments, we accepted payments from other entities within that customer’s group designated by a certain customer under a temporary fund reallocation arrangement.
Risk Factors · 第 43 页
As advised by our PRC Legal Adviser, these arrangements did not breach any mandatory PRC legal provisions, and the risk of our being required to return such funds is remote, as (i) they were based on genuine transactions and do not constitute unjust enrichment, and (ii) the underlying agreements were duly performed with no related administrative penalties incurred.
Risk Factors · 第 43 页
As of the Latest Practicable Date, all such transactions ceased and we have since brought the relevant settlement arrangements within our internal control framework with enhanced monitoring measures.
In 2023, 2024, 2025 and the six months ended June 30, 2026, the aggregate amounts settled through the Third-party Payment Arrangements were RMB344.7 million, RMB280.7 million, RMB302.7 million and RMB124.4 million, respectively, representing 0.6%, 0.4%, 0.5% and 0.3% of our total revenue for the same periods, respectively.
Business · 第 150 页
As advised by our PRC Legal Advisor, the Third-party Payment Arrangements accepted by our Company and our PRC subsidiaries did not contravene any mandatory provisions of applicable PRC laws and regulations.
Business · 第 150 页
We have adopted internal control policies governing the Third-party Payment Arrangements and issued notices to our employees requiring that payments be made directly by the relevant contractual counterparties and that Third-party Payment Arrangements be discontinued.