Financial Performance - For the year ended December 31, 2024, consolidated net revenues were RMB 108.42 billion, a decrease from RMB 112.86 billion in 2023 and RMB 103.15 billion in 2022[55]. - Net income for the year ended December 31, 2024, was RMB 7.84 billion, compared to RMB 8.20 billion in 2023 and RMB 6.31 billion in 2022, indicating a decline in profitability[55]. - The total net revenues for the year ended December 31, 2024, were RMB 108,420,832 thousand, compared to RMB 112,856,020 thousand in 2023, indicating a decrease of approximately 4%[67]. - The gross profit for the year ended December 31, 2024, was RMB 25,469,654 thousand, slightly down from RMB 25,720,892 thousand in 2023, reflecting a decrease of about 1%[67]. - The net income attributable to shareholders for the year ended December 31, 2024, was RMB 7,739,935 thousand, compared to RMB 8,116,624 thousand in 2023, representing a decline of approximately 5%[67]. - The company’s operating expenses for the year ended December 31, 2024, totaled RMB 17,211,609 thousand, a decrease from RMB 17,418,317 thousand in 2023, indicating a reduction of about 1%[67]. - The company’s cash used in financing activities for the year ended December 31, 2024, was RMB 4,969,579 thousand, compared to RMB 6,146,005 thousand in 2023, showing a decrease of approximately 19%[62]. - The company’s product revenues for the year ended December 31, 2024, were RMB 100,734,550 thousand, down from RMB 105,613,485 thousand in 2023, reflecting a decrease of about 5%[67]. - The company’s earnings per share (diluted) for the year ended December 31, 2024, was RMB 71.76, compared to RMB 72.11 in 2023, indicating a slight decline[67]. - The company has achieved net profit since Q4 2012, but future profitability is uncertain due to potential increases in costs and operating expenses[158]. Cash Management and Dividends - The company declared a cash dividend of US$2.15 per ordinary share on February 28, 2024, amounting to net cash dividends of US$233.3 million paid in April 2024[51]. - The company’s ability to pay dividends depends on the dividends from its PRC subsidiaries and service fees from consolidated variable interest entities, which may be restricted by debt instruments[42]. - The company’s board of directors retains discretion over future dividend distributions, which will depend on operational results and cash flow[51]. - The company has established a centralized cash management policy to enhance cash flow efficiency and security, with all cash transfers requiring internal approval[43]. Regulatory Risks - The company faces risks related to regulatory approvals, anti-monopoly actions, and cybersecurity regulations in China, which could materially affect operations and the value of its ADSs[35]. - Under the Holding Foreign Companies Accountable Act, if the SEC determines that the company has filed audit reports from a firm not subject to PCAOB inspections for two consecutive years, trading of its shares may be prohibited[37]. - The company has not been required to obtain permissions from the CSRC for past securities offerings but may need to for future offerings under new regulations[41]. - The PCAOB has not issued new determinations regarding its ability to inspect auditors in mainland China and Hong Kong, which may affect future audit reports[39]. - The approval of the CSRC is required for future overseas offerings, and delays or failures in obtaining such approval could lead to sanctions, fines, and operational restrictions[205]. - The Overseas Offering and Listing Measures, effective March 31, 2023, require PRC domestic companies to complete filing procedures with the CSRC for overseas securities offerings within three business days after closing[206]. - The PRC Foreign Investment Law, effective January 1, 2020, replaced previous laws and aims to unify corporate legal requirements for foreign and domestic investments[185]. - The most recent negative list, effective November 1, 2024, requires PRC domestic enterprises in prohibited industries to obtain consent for overseas listing, impacting foreign investor participation[186]. - The PRC tax authorities may impose adverse tax consequences if contracts with consolidated variable interest entities are deemed not to be on an arm's length basis[189]. - The company is subject to SAFE regulations that limit the use of Renminbi converted from foreign exchange capitals for expenditures beyond approved business scopes[226]. Operational Structure and Risks - Vipshop Holdings Limited is a holding company with no operations of its own, relying on its PRC subsidiaries and consolidated variable interest entities for operational activities[25]. - The consolidated variable interest entities are subject to complex PRC laws and regulations, which may impact their ability to conduct business and accept foreign investments[35]. - The contractual arrangements with the consolidated variable interest entities may not provide the same level of control as direct ownership, posing unique risks to investors[24]. - The company relies on contractual arrangements with consolidated variable interest entities, which may not be as effective as direct ownership, posing risks to its operations[180]. - The company faces uncertainties regarding the enforceability of its contractual arrangements with consolidated variable interest entities, which could disrupt its business operations[179]. - If consolidated variable interest entities go bankrupt, the company may lose access to important assets, adversely affecting its financial condition and results of operations[184]. - Foreign ownership of internet-based businesses in China is subject to significant restrictions, impacting the company's operational structure[174]. - The potential for conflict of interest exists among shareholders of the significant consolidated variable interest entity, which may adversely affect the company's business[181]. Market and Competitive Environment - The online discount retail market in China is rapidly evolving, with competition from various online retailers and new e-commerce forms, which may affect the company's market share and operating margins[95][96]. - The company experiences seasonality in its business, with significantly higher sales in the fourth quarter due to promotional campaigns, particularly on November 11 and December 12[172]. - The company has seen an increase in product return rates due to higher sales of apparel products, which typically have a higher return rate compared to standardized products[100]. - Online retail sales of apparel products account for a significant portion of total net revenues, and the company does not expect new product categories to reduce this dependence[102]. Cybersecurity and Data Protection - The company spent RMB222.4 million, RMB233.0 million, and RMB308.0 million (US$42.2 million) on IT and cybersecurity protections for the years ended December 31, 2022, 2023, and 2024, respectively[108]. - The Cybersecurity Law imposes strict obligations on network operators, and violations could result in penalties, including fines and revocation of licenses[214]. - The company has adopted rigorous security policies, including encryption technology, to protect customer information, but faces challenges from evolving hacking techniques[128]. - The company has conducted cybersecurity self-examinations as directed by local authorities, indicating proactive compliance efforts[119]. - The Cybersecurity Review Measures require network platform operators holding personal information of over one million users to undergo a cybersecurity review before any public offering at a foreign stock exchange[119]. Intellectual Property and Compliance - As of the date of the report, the company had been granted 370 patents and submitted 1,054 patent applications in China, highlighting its commitment to intellectual property protection[130]. - The company has 2,264 registered trademarks in China and 103 registered trademarks outside China, emphasizing its focus on brand protection[130]. - The company faces challenges in protecting intellectual property rights in China, with potential costs and resource diversion due to litigation[131]. - The company may incur significant expenses defending against intellectual property infringement claims, which could disrupt operations[132]. Economic and Geopolitical Factors - The global economic downturn, exacerbated by events like COVID-19 and geopolitical tensions, may adversely affect business and financial condition[166]. - Heightened trade and political tensions, particularly between the U.S. and China, could negatively impact economic activities and the company's operations[167]. - The U.S. government has implemented policies that may adversely affect international trade, including tariffs and export controls, which could impact the company's business and financial condition[168]. - The Outbound Investment Rule, effective January 2, 2025, imposes investment prohibitions and notification requirements on U.S. persons for investments in entities associated with "countries of concern," currently only China[169]. Strategic Initiatives - The company plans to enhance brand recognition and customer spending on its online platform to drive sales growth[80]. - The company aims to expand into offline retail, having established a network of 20 Shan Shan Outlets and other retail stores by the end of 2024[83]. - The company plans to expand its brand and product offerings, requiring the establishment of relationships with new brand partners to ensure a steady supply of products on favorable terms[92]. - The company may pursue strategic initiatives in international markets to expand product offerings and improve technology infrastructure[149]. - Future strategic alliances and acquisitions may materially affect the company's business and financial condition[148]. - Strategic acquisitions may require significant managerial and financial resources, potentially diverting resources from existing business operations[150].

Financial Performance - The company reported net losses of RMB203.0 million, RMB101.1 million, and net income of RMB83.7 million (US$11.5 million) for the years ended December 31, 2022, 2023, and 2024, respectively [468]. - The company’s accumulated deficit was RMB8,050 million (US$1,103 million) as of December 31, 2024 [468]. - The market capitalization of the company dropped to US$83.1 million by the end of 2023, which was 47% lower than its net assets of RMB1,112 million [500]. - A full impairment charge of RMB114.7 million for the remaining goodwill was recorded in Q4 2023, reducing the carrying value of goodwill to nil [500]. - The company has not paid dividends to shareholders as its PRC subsidiaries have incurred losses and have not generated accumulated profits [485]. Cash Flow and Liquidity - Net cash provided by operating activities was RMB96.3 million (US$13.2 million) in 2024, primarily from cash inflows of RMB3,721.7 million (US$509.9 million) from travel product sales [470]. - Cash and cash equivalents, restricted cash, and short-term investments were RMB923.9 million (US$126.6 million) as of December 31, 2024 [466]. - The company had net cash used in financing activities of RMB74.0 million (US$10.1 million) in 2024, primarily due to repayments of borrowings [476]. - The company intends to fund its material cash requirements for at least the next twelve months using its existing cash balance [482]. Customer Advances and Borrowings - Advances from customers increased from RMB98.9 million as of December 31, 2022 to RMB270.2 million as of December 31, 2023, and further increased to RMB247.2 million (US$33.9 million) as of December 31, 2024 [465]. - The company had outstanding short-term borrowings of RMB7.3 million and RMB0.04 million (US$0.01 million) as of December 31, 2023 and 2024, respectively [467]. Expenses and Investments - The company’s sales and marketing expenses increased from RMB103.6 million in 2022 to RMB180.3 million (US$24.7 million) in 2024, primarily due to increased promotion and marketing personnel expenses [465]. - Research and product development expenses decreased from RMB57.0 million in 2023 to RMB52.7 million (US$7.2 million) in 2024, primarily due to a reduction in personnel-related expenses [487]. - The carrying value of the land use right and construction in progress was RMB99.5 million as of December 31, 2024, with impairment charges of RMB15.6 million recorded for the year [502]. Technology and Infrastructure - The company’s technology infrastructure is built on proprietary and licensed technologies, focusing on website operations and data analytics [486]. - No impairment of non-financial assets for the core business was recognized during the year ended December 31, 2024, as the undiscounted cash flow exceeded the carrying value [503]. Regulatory and Accounting Matters - The company’s PRC subsidiaries are required to set aside at least 10% of their accumulated profits for statutory reserve funds, which they have not started contributing to due to losses [485]. - The company adopted ASC Topic 326 for credit loss measurement, recording a net decrease to retained earnings of RMB19.4 million upon adoption [505]. Foreign Currency Translation - For the year ended December 31, 2024, the company recorded a net foreign currency translation gain of RMB8.0 million (US$1.1 million) in accumulated other comprehensive income [461]. Share Price and Market Sentiment - The company’s share price fluctuated, reaching US$0.67 per ADS as of December 31, 2023, reflecting negative market sentiment [500].

Financial Performance and Structure - In 2022, 2023, and 2024, the revenue generated by the VIE accounted for 99%, 100%, and 100% of the total net revenues, respectively[30]. - As of December 31, 2022, 2023, and 2024, total assets of the VIE represented 87%, 90%, and 92% of the consolidated total assets[30]. - Revenue from online advertising services accounted for 68.7%, 70.2%, and 78.2% of total revenues in 2022, 2023, and 2024, respectively[54]. - A significant portion of revenues is derived from a limited number of customers, which may lead to fluctuations or declines in revenues[98]. - The VIE and its subsidiaries contributed substantially all of the company's revenues in 2022, 2023, and 2024[127]. Regulatory and Compliance Risks - The company faces risks associated with operating in rapidly evolving New Economy sectors, which could materially affect financial conditions and results of operations[42]. - The company must comply with PRC regulations regarding Internet content, and violations could materially affect business operations and financial condition[51]. - The PRC has enacted new laws on data security and personal information protection, which may impose additional operational restrictions and costs[59]. - The company faces uncertainties regarding the legality of foreign investments and operations in the Chinese Internet industry, which may disrupt business[61]. - The approval from the China Securities Regulatory Commission (CSRC) may be required for future overseas securities offerings, which could delay or restrict operations[118]. - The Foreign Investment Law of the PRC, effective January 1, 2020, introduces uncertainties regarding the company's corporate structure and governance[126]. - The PRC government's oversight could materially affect the company's operations and the value of its American Depositary Shares (ADSs)[119]. - The PRC tax authorities may scrutinize the contractual arrangements with the VIE, potentially resulting in additional tax liabilities that could adversely affect the financial condition of the company[131]. - The company may face penalties under PRC tax laws if it fails to comply with tax obligations related to indirect transfers of assets[176]. Operational Challenges - The company has experienced significant user growth, which is critical for attracting and retaining users[45]. - The company faces significant competition in the New Economy-focused business services market, particularly in online advertising and enterprise value-added services[70]. - The company must successfully compete with other companies in the industry and adapt to the evolving regulatory environment[46]. - Negative publicity could adversely affect the company's brand and reputation, impacting user acquisition and retention[44]. - The company may face challenges in retaining key management personnel, which is crucial for its success[81]. - Service disruptions or failures to scale technology could hinder the company's ability to retain and attract users[90]. Financial Health and Cash Flow - The company recorded net cash used in operating activities of RMB5.0 million in 2022, RMB122.2 million in 2023, and RMB33.0 million (US$4.5 million) in 2024, indicating a trend of negative cash flows from operating activities[77]. - The company incurred sales and marketing expenses of RMB122.1 million, RMB127.5 million, and RMB82.6 million (US$11.3 million) in 2022, 2023, and 2024, respectively, accounting for 37.9%, 37.5%, and 35.7% of total revenues[72]. - The company may need to sell additional equity or debt securities to meet future capital needs, which could dilute existing shareholders[78]. - The company relies on dividends and other distributions from its PRC subsidiaries to meet cash requirements, which may be limited by regulations[150]. - The People's Bank of China has implemented capital control measures that may restrict the ability of PRC subsidiaries to remit foreign currency for dividends and acquisitions[151]. Corporate Governance and Shareholder Rights - Dagang Feng, the CEO, holds approximately 74.5% voting power, allowing him to control significant corporate decisions[202]. - The dual-class share structure consists of Class A ordinary shares with one vote each and Class B ordinary shares with 25 votes each, limiting influence of Class A shareholders[203]. - Class B ordinary shares represent about 9.6% of total issued shares but account for 73.0% of voting power, concentrating control[204]. - The company is classified as a "controlled company" under Nasdaq rules, allowing it to rely on exemptions from certain corporate governance requirements[206]. - The difference in voting rights may harm the value and liquidity of Class A ordinary shares, potentially leading to lower market prices[208]. Market and Economic Conditions - The company faces significant risks from a potential global economic recession and a slowdown in the Chinese economy, which could negatively impact business operations and financial condition[107]. - The trading price of the ADSs is likely to be volatile, influenced by various factors including revenue variations, new investments, and regulatory announcements[181]. - The company does not expect to pay cash dividends in the foreseeable future, relying instead on price appreciation for returns on investment[190]. Legal and Tax Considerations - The company may face litigation or claims that could result in substantial costs and negatively impact its financial condition[88]. - The enforcement of labor laws in China may increase labor costs and expose the company to potential penalties for non-compliance[169]. - The company is obligated to withhold individual income taxes for employees exercising share options, with potential sanctions for failure to comply[168]. - Regulatory uncertainties regarding foreign exchange and outbound investment may restrict the company's acquisition strategy and financial operations[166]. Internal Controls and Reporting - The company identified a material weakness in its internal control over financial reporting, specifically a lack of sufficient competent personnel knowledgeable in U.S. GAAP, which could adversely affect the accuracy and timeliness of financial reporting[100]. - The company's financial statements could be impacted by ongoing SEC proceedings against PRC-based accounting firms, potentially affecting compliance with SEC requirements[178]. - The company expects to incur significant legal, accounting, and compliance costs due to its status as a public company, particularly following the cessation of its "emerging growth company" status[213].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SE ...

Strategic Review and Future Positioning - The company is undergoing a strategic review targeted for completion in early Q2 2025, aiming to define a new vision and establish a clear future position [44]. Financial Position and Liquidity - As of December 31, 2024, the company had €396.8 million in cash, cash equivalents, and investments, with a €250 million senior secured revolving credit facility secured in July 2024 to strengthen liquidity [50]. - As of December 31, 2024, 62% of the company's liquidity is held in Euros, with approximately 26% of liquid assets in US dollars [51]. - The company is exposed to liquidity risks from long-term fixed-price contracts if planned cash inflows are lower than expected [50]. - The company received €46.9 million in R&D tax credits for the year ended December 31, 2024 [63]. - For the year ended December 31, 2024, the company reported €797.0 million in revenue, representing growth of 2.0% from the previous year [182]. - The company incurred a net loss of €196.1 million for 2024, an increase of €112.2 million compared to 2023 [182]. - Adjusted EBITDA for 2024 was €22.6 million, a decrease of €43.8 million from the previous year [182]. Revenue Sources and Customer Base - In 2024, 38.3% of the company's revenue came from three customers, with 109 customer alliances each generating over €1 million [46]. - As of December 31, 2024, Evotec's revenue from "fee-for-service" agreements accounted for 94% of total revenues, with milestone payments contributing only 0.6% and 0.4% in 2023 and 2024 respectively [99]. - The contribution of the top ten customers to total revenues rose to 52% in 2024, up from 47% in 2023 and 39% in 2022 [139]. - The total number of customers increased to 849 in 2024, with 292 new customers added during the year, compared to 298 in 2023 [138]. R&D and Innovation - The company aims to serve as a source of innovative drug candidates for partners, advancing multiple active drug discovery and early development projects [48]. - R&D expenses for 2024 were €50.9 million, down from €68.5 million in 2023, focusing on selected R&D projects [187]. - The company has over 140 partnered assets in its pipeline, which includes candidates for which it has rights to receive royalty or milestone payments [189]. - The company is focused on acquiring and licensing additional intellectual property assets and technologies as opportunities arise [153]. - The proprietary multi-omics data generation platform, PanOmics, is considered industry-leading in throughput, robustness, and cost efficiency [111]. - The molecular patient database for chronic kidney disease (CKD) has expanded to include data from almost 12,000 patients, constituting over 600 billion data points, making it the largest CKD molecular database globally [113]. Operational Challenges and Risks - The ongoing Ukraine-Russia conflict and tensions in the Middle East pose significant risks to global economic stability, potentially impacting supply chains and operational costs [45]. - The company faces competition from cost-conscious Contract Research Organizations (CROs) in Asia and Eastern Europe, which could affect market positioning and revenues [46]. - The company is exposed to risks related to changes in tax laws and interpretations, which could affect its tax obligations and financial performance [62]. - Quality risks in manufacturing and R&D could delay clinical trials and regulatory approvals, adversely affecting business operations [57]. - The company experienced a ransomware incident in 2023, which caused operational delays and may continue to impact revenue and costs [78][79]. Compliance and Regulatory Environment - The company is subject to the German Supply Chain Due Diligence Act, which mandates compliance with human rights and environmental standards starting in 2024 [55]. - Regulatory compliance risks include potential fines and reputational damage if the company fails to meet sustainability reporting obligations [54]. - The company is subject to extensive government regulations in the EU and the US, which require substantial time and financial resources for compliance [156]. Market Trends and Growth Projections - The global biotechnology market is projected to grow at a CAGR of 11.5%, from $1.55 trillion in 2024 to $3.21 trillion by 2030 [143]. - The small molecule discovery market is expected to grow at a CAGR of 7.97%, from $88.57 billion in 2024 to $140.31 billion by 2030 [144]. Infrastructure and Facilities - The company operates 17 sites, including five manufacturing facilities, with a focus on profitable growth leading to the exit of certain operations in 2024 [103]. - The total area of facilities owned and leased by the company at the end of 2024 was approximately 213,930 square meters, with significant locations in France, Germany, Italy, the UK, and the US [173]. - The company completed the construction of its first J.POD facility in North America in August 2021, and a second J.POD facility in Toulouse in 2024, to strengthen its position in drug discovery and development [175]. Employee and Talent Management - In 2024, approximately 7% of the global workforce was affected by a restructuring program due to significant organizational changes and challenging financial results [74]. - The company faced challenges in sourcing and hiring talent across global locations, particularly for specialized scientific and leadership roles, due to competitive labor markets and skills shortages [75][76]. Intellectual Property and Competitive Position - The company relies on trade secrets and patents for intellectual property protection, which may not be sufficient to maintain competitive advantage [65]. - Changes in patent laws and interpretations could diminish the value of the company's intellectual property rights [67]. - The company’s proprietary drug discovery programs and technology platforms are protected through a multi-layered intellectual property strategy [152]. - As of December 31, 2024, the company owned a patent portfolio that included more than 45 patent families, with filings in the United States and Europe, and several pending or granted in multiple jurisdictions [154].

Financial Position - As of December 31, 2023, total assets amounted to RMB 113,197,000, with cash and cash equivalents at RMB 40,508,000[27] - The total liabilities were reported at RMB 493,076,000, with significant amounts due to other subsidiaries and WFOEs[27] - The investment deficit in subsidiaries of the company was RMB (1,218,313,000), indicating a substantial financial burden[27] - For the year ending December 31, 2024, total assets are projected to be RMB 103,440,000, with cash and cash equivalents decreasing to RMB 26,951,000[29] - Total liabilities for 2024 are expected to be RMB 498,559,000, reflecting a slight increase from the previous year[29] - The total (deficit)/equity for the company as of December 31, 2024, is projected to be RMB (395,119,000), indicating ongoing financial challenges[29] - Financing receivables, net, were reported at RMB 61,467,000 as of December 31, 2023, showing the company's reliance on receivables for liquidity[27] - The company has significant amounts due from WFOEs, totaling RMB 808,738,000, which may impact cash flow and operational flexibility[27] Revenue and Losses - For the year ended December 31, 2022, consolidated total revenues were RMB 74,568,000, a decrease from RMB 52,717,000 in 2023, representing a decline of approximately 29.3%[31][32] - The net loss attributable to Pintec's shareholders for the year ended December 31, 2022, was RMB 190,183,000, which improved to a net loss of RMB 78,762,000 in 2023, indicating a reduction in loss of about 58.6%[31][32] - Operating expenses decreased from RMB 93,412,000 in 2022 to RMB 56,219,000 in 2023, reflecting a reduction of approximately 39.9%[31][32] - Revenues for the year ended December 31, 2024, were RMB 35,142,000, a further decline from RMB 52,717,000 in 2023, representing a decrease of about 33.0%[32][33] - The loss from operations for the year ended December 31, 2024, was RMB 14,102,000, compared to a loss of RMB 41,693,000 in 2023, indicating an improvement of approximately 66.2%[32][33] - The share of loss from subsidiaries for the year ended December 31, 2023, was RMB 81,704,000, which decreased to RMB 13,167,000 in 2024, showing a significant reduction of about 83.9%[32][33] - The income tax benefit for the year ended December 31, 2023, was RMB 13,901,000, compared to an expense of RMB 2,522,000 in 2022, indicating a positive shift in tax position[31][32] - The consolidated total for the year ended December 31, 2023, was RMB 52,717,000, down from RMB 74,568,000 in 2022, reflecting a decline of approximately 29.3%[31][32] - The cost of revenues for the year ended December 31, 2023, was RMB 38,191,000, a decrease from RMB 62,688,000 in 2022, representing a reduction of about 39.2%[31][32] - The net loss for the year ended December 31, 2024, was RMB 15,454,000, compared to a net loss of RMB 81,254,000 in 2023, indicating an improvement of approximately 81.0%[32][33] Cash Flow and Investments - For the year ended December 31, 2022, the consolidated net cash provided by operating activities was a negative RMB 10,518 thousand, while for 2023, it improved to RMB 8,611 thousand[35] - The cash and cash equivalents at the end of 2023 were RMB 45,508 thousand, a decrease from RMB 256,210 thousand at the end of 2022[35] - The net cash used in investing activities for 2023 was RMB 35,272 thousand, compared to a positive cash flow of RMB 86,690 thousand in 2022[35] - The cash received by the parent company from equity owned subsidiaries was RMB 2,018 thousand in 2022, increasing significantly to RMB 28,187 thousand in 2023, but was zero in 2024[39] - The cash paid by VIEs to equity owned subsidiaries was RMB 226,472 thousand in 2022, dropping to RMB 1,861 thousand in 2023, and slightly increasing to RMB 1,389 thousand in 2024[39] - The cash paid by WFOEs to equity owned subsidiaries was RMB 109,270 thousand in 2022, decreasing to RMB 13,350 thousand in 2023, and further to RMB 1,040 thousand in 2024[39] - The cash received by WFOEs from equity owned subsidiaries was RMB 36,489 thousand in 2022, with no cash received in 2023 and 2024[39] Regulatory Environment and Compliance - The company faces unique risks associated with its VIE structures, which may limit operational control and increase enforcement costs[24] - The contractual arrangements with VIEs have not been tested in a court of law, leading to uncertainties regarding compliance with PRC laws[25] - The Overseas Listing Trial Measures require PRC domestic companies to fulfill filing procedures with the CSRC for overseas offerings, impacting future capital raising activities[42] - Companies listed on overseas exchanges before March 31, 2023, are not required to make immediate filings but must file for subsequent offerings within three business days[42] - The SEC may prohibit trading of ordinary shares or ADSs if audit reports are filed by firms not inspected by the PCAOB for two consecutive years, posing a risk to trading[43] - The PCAOB's ability to inspect accounting firms in Mainland China and Hong Kong is subject to annual determination, which could affect the company's status as a Commission-Identified Issuer[45] - Regulatory uncertainties in the consumer finance industry in Mainland China could adversely affect the company's financial condition and results of operations[59] - The company holds several licenses, including internet micro lending and fund distribution licenses, which have limited terms and may not be renewed[60] - The evolving regulatory environment may impose additional compliance requirements, affecting the company's ability to operate and offer securities[59] - The company is subject to potential liabilities and penalties if it fails to comply with PRC laws and regulations regarding financial products, which could materially affect its financial condition and results of operations[87] - The company must comply with data privacy laws, and failure to do so could materially affect its business and financial condition[123] - The company is subject to evolving cybersecurity regulations, which may impact its operations and compliance requirements[127] - The PRC regulations regarding foreign investments in fund distribution are subject to interpretation, leading to substantial uncertainties for the company's operations[175] - The PRC Foreign Investment Law, effective January 1, 2020, introduces uncertainties regarding the corporate structure and governance of the company[177] - The PRC tax authorities may audit related party transactions, potentially leading to additional tax liabilities for the company[186] - The company may lose access to critical assets held by variable interest entities if they undergo bankruptcy or liquidation proceedings[188] Business Model and Market Risks - The company has ceased onboarding new loan facilitation customers since April 2022 and currently only serves existing loan facilitation customers[63] - The company reduced its reliance on risk-sharing models, leading to lower credit risk exposure since 2020, with a focus on digital-centric services[63] - The business model has been upgraded to provide unsecured loan services to MSMEs, which may lead to a higher customer default rate[61] - The trading price of the company's ADSs has declined significantly since listing, with potential risks of delisting from Nasdaq[54] - A credit crisis or prolonged downturn in the credit markets could lead to a material decline in the company's revenues, even if it does not bear credit risk in borrower defaults[96] - The company’s credit assessment models may inaccurately predict future loan losses, which could adversely impact its reputation and market share[93] - The company generates a significant proportion of its revenues through a limited number of business partners, and any changes in these partnerships could materially affect its operations[89] - The company faces challenges in the consumer finance industry due to negative publicity and investor confidence issues stemming from failures of other platforms[84] - Changes in the competitive landscape of Mainland China's consumer finance and wealth management industries may affect the company's business operations and partnerships[95] - The company has made substantial investments to enhance brand image, but these may not lead to immediate revenue increases[118] - If users are dissatisfied with financial products offered through the company's platforms, it could harm the company's reputation and financial performance[119] - The company faces significant competition in consumer finance, wealth management, and insurance from major platforms like Lexin and 360 DigiTech, which have greater financial resources and brand recognition[97] Internal Controls and Operational Risks - A material weakness in internal control over financial reporting was identified, related to insufficient personnel knowledgeable in U.S. GAAP and SEC reporting requirements[157] - Measures have been taken to remedy the material weakness, including engaging a consulting firm with U.S. GAAP experience, but full remediation cannot be guaranteed[158] - Failure to maintain effective internal controls could lead to material misstatements in financial statements and loss of investor confidence, potentially harming access to capital markets[159] - The company relies on complex software for its operations, and undetected errors could negatively impact user experience and financial performance[148] - Disruptions in internet infrastructure in Mainland China could affect the company's operations and financial performance due to reliance on state-owned telecommunication providers[151] - Increased fraudulent activity on the company's platforms could negatively impact its operating results and brand reputation[137] - The company collaborates with external collection agents, and any illegal practices by these agents could harm its reputation and business operations[144] - Retaining qualified employees is critical for the company's success, and competition for skilled personnel may hinder its ability to maintain a strong workforce[146] - The proprietary robo-advisory engine may be flawed, potentially leading to unsuitable investment recommendations and harming the company's reputation[147] - The accuracy of the company's credit assessment models is compromised by outdated or incomplete data, which could adversely affect financial performance[140] - The company faces risks related to users' changing financial circumstances, which may lead to higher loan loss rates due to inaccurate pricing[141] - Failure to verify user information and detect fraud could result in liabilities under the Civil Code of PRC, negatively impacting financial results[142] - The company's ability to collect delinquent loans is dependent on users' financial stability, and ineffective collection methods could lead to decreased service fees and revenue[143] Future Outlook and Strategic Plans - The company does not plan to pay any cash dividends in the foreseeable future, retaining most of its available funds for business operations and expansion[37] - Plans for international expansion, such as entering the Australian market, may expose the company to additional risks, including reliance on local partners and regulatory compliance[168][171] - Future investments and acquisitions may not yield expected results and could lead to equity dilution and management distraction[167] - The company must continuously innovate and enhance its technology infrastructure to remain competitive, as failure to achieve market acceptance could harm its growth prospects[90] - The company has taken measures to improve operating efficiency and control costs, including staff downsizing, but there is no assurance these measures will be sufficient to fund ongoing capital expenditures[111]

Quarterly Performance Summary Truist Financial Corporation First Quarter 2025 Ta b l e o f C o n t e n t s Q u a r t e rly P e rfo r m a n c e S u m m a r y T r uis t Fin a n cial C o r p o r a tio n | P | a | g | e | Fin | a | n | cial | Hig | hlig | h | t | s | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

Financial Performance - Net interest income for Q1 2025 was $1,194 million, a decrease from $1,230 million in Q4 2024, reflecting a 2.9% decline[4] - Non-interest income increased to $590 million in Q1 2025, compared to $585 million in Q4 2024, marking a 0.9% growth[4] - Net income available to common shareholders was $465 million for Q1 2025, down from $508 million in Q4 2024, representing an 8.5% decrease[4] - The provision for credit losses was $124 million in Q1 2025, slightly up from $120 million in Q4 2024, indicating a 3.3% increase[4] - Return on average assets for Q1 2025 was 1.27%, down from 1.36% in Q4 2024[6] - The efficiency ratio for Q1 2025 was 57.9%, compared to 56.8% in Q4 2024, indicating a decline in operational efficiency[6] - Total assets increased to $159,846 million at the end of Q1 2025, up from $157,302 million at the end of Q4 2024, reflecting a 1.6% growth[4] - Total shareholders' equity increased to $18,530 million, up from $17,879 million at December 31, 2024, reflecting a growth of 3.6%[9] - Net income for Q1 2025 was $490 million, down from $534 million in Q4 2024, but up from $368 million in Q1 2024[19] - Basic earnings per share for Q1 2025 was $0.51, down from $0.56 in Q4 2024 but up from $0.37 in Q1 2024[19] Loan and Deposit Trends - Loans, net of unearned income, decreased to $95,733 million in Q1 2025 from $96,727 million in Q4 2024, a decline of 1.0%[4] - Total deposits rose to $130,971 million, an increase of $3,368 million or 2.6% from $127,603 million at December 31, 2024[9] - Total loans decreased to $95,733 million, down by $994 million or 1.0% from $96,727 million at December 31, 2024[10] - The allowance for loan losses remained stable at $1,613 million as of March 31, 2025, unchanged from December 31, 2024[9] - Total deposits increased to $127,687 million in Q1 2025, up 0.9% from $126,493 million in Q4 2024 and 0.4% from $127,126 million in Q1 2024[17] - Non-interest-bearing deposits increased by $1.305 billion (3.3%) from Q4 2024 to Q1 2025, but decreased by $1.381 billion (3.3%) from Q1 2024[16] Credit Quality and Losses - The provision for loan losses was $123 million for the quarter, a decrease from $125 million in the previous quarter[58] - Non-performing loans, excluding loans held for sale, decreased to $843 million, down from $928 million at December 31, 2024, indicating improved asset quality[61] - Total net charge-offs for the quarter were $123 million, compared to $119 million in the previous quarter, reflecting an increase in loan losses[58] - The net loan charge-offs as a percentage of average loans, annualized, was 0.52% for the quarter, compared to 0.49% in the previous quarter[58] - Total accruing 30-89 days past due loans amounted to $333 million, representing 0.35% as of March 31, 2025, a decrease from $367 million (0.38%) at December 31, 2024[62] Operational Efficiency - Total non-interest expense remained stable at $1,039 million in Q1 2025, compared to $1,038 million in Q4 2024[19] - The efficiency ratio (GAAP) for Q1 2025 was 57.9%, compared to 56.8% in Q4 2024 and 64.3% in Q1 2024[44] - Adjusted efficiency ratio (non-GAAP) improved to 56.8% in Q1 2025 from 55.4% in Q4 2024[44] - Salaries and employee benefits increased to $625 million in Q1 2025, up 1.3% from $617 million in Q4 2024, but down 5.0% from $658 million in Q1 2024[40] Strategic Initiatives and Risks - The company anticipates potential impacts from economic conditions, including interest rate fluctuations and property value declines, which may affect lending and financial results[64] - The company is focused on enhancing its digital banking services to meet customer needs and respond to technological trends[64] - The company faces risks related to competition from fintechs and traditional financial institutions, which may affect its market position[64] - Changes in laws and regulations, including those affecting bank products and services, may require the company to alter business practices and could negatively impact revenue[68] - The company must invest significant managerial resources to comply with stress testing and capital planning requirements[68]

UnitedHealth Group Reports First Quarter 2025 Results and Revises Full Year Guidance (April 17, 2025) UnitedHealth Group (NYSE: UNH) reported first quarter 2025 results and revised its outlook for the year. "UnitedHealth Group grew to serve more people more comprehensively but did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead, and return to our long-term earnings growth rate target of 13 to 16%," said Andrew Witty, chief execu ...

Financial Performance - Net sales for Q4 fiscal 2025 were $104.5 million, an increase of 8% compared to $96.8 million in the prior year quarter[5]. - Consolidated net loss for Q4 was $2.3 million, or ($0.22) per diluted share, compared to net income of $593,000, or $0.06 per diluted share in the prior year[5]. - For the full year fiscal 2025, consolidated net sales were $397.5 million, reflecting a decrease of $35.8 million, or 8.3%, compared to the previous fiscal year[5]. - Hooker Branded Q4 net sales rose $3.8 million, or 10.0%, driven by a 14% increase in unit volume, while fiscal 2025 net sales decreased $10.1 million, or 6.5%[7]. - Home Meridian Q4 net sales increased $6.3 million, or 21.7%, year-over-year, with gross margin reaching 22.9%, the highest since 2016[8]. - Domestic Upholstery Q4 net sales decreased $2.0 million, or 7.0%, year-over-year, with fiscal 2025 net sales down $12.6 million, or 9.9%[9]. - Total net sales for the 53 weeks ended February 2, 2025, were $397.465 million, a decrease from $433.226 million in the prior year, representing a decline of approximately 8.2%[30]. - The Hooker Branded segment generated net sales of $146.470 million for the 53 weeks ended February 2, 2025, down from $156.590 million in the prior year, a decrease of approximately 6.8%[30]. Cost Management and Savings - The company expects fiscal 2026 cost savings of at least $0.8 to $1.0 million from the Savannah warehouse exit, with annualized savings of $4.0 to $5.7 million beginning in fiscal 2027[4]. - Total annualized cost savings from the Savannah exit and additional measures are expected to be between $18 million to $20 million, fully realized in fiscal 2027[9]. Cash Flow and Assets - Cash and cash equivalents stood at $6.3 million, a decrease of $36.9 million from the previous year-end, largely due to increased accounts receivable and planned inventory increases[11]. - Total assets decreased to $313.94 million as of February 2, 2025, down from $343.59 million as of January 28, 2024[24]. - Current liabilities decreased to $39.97 million as of February 2, 2025, compared to $41.41 million as of January 28, 2024[24]. - Cash used in operating activities was $23.016 million for the year, compared to cash provided by operating activities of $55.471 million in the previous year[27]. - Financing activities resulted in a net cash outflow of $11.149 million, compared to an outflow of $22.756 million in the previous year[28]. - The company paid cash dividends of $9.854 million during the year, slightly up from $9.682 million in the previous year[28]. Profitability and Loss - The company reported a net loss of $12.507 million for the 53 weeks ended February 2, 2025, compared to a net income of $9.865 million for the previous year[27]. - The gross profit margin for the consolidated segment was 22.3% for the 53 weeks ended February 2, 2025, down from 25.1% in the previous year[30]. - The company reported a net loss of $2.33 million for the 14 weeks ended February 2, 2025, compared to a net income of $0.59 million for the same period last year[20]. - Basic and diluted loss per share for the 14 weeks ended February 2, 2025, was $0.22, compared to earnings per share of $0.06 for the same period last year[20]. - The company incurred a depreciation and amortization expense of $9.229 million for the 53 weeks ended February 2, 2025, compared to $8.956 million in the prior year[27]. Market Conditions and Risks - The company is focused on gaining market share and maximizing revenues through merchandising efforts and speed-to-market initiatives despite economic uncertainties[13]. - The company is facing risks related to macroeconomic uncertainties, including inflation and high interest rates, which could impact sales and operating costs[18]. - The restructuring of the Home Meridian segment is ongoing, with the goal of returning to consistent profitability[18]. - The company is planning to shift inventories to a new warehouse facility in Vietnam, which poses execution and working capital risks[18]. Inventory and Backlog - The order backlog as of February 2, 2025, was $52.636 million, a decrease from $71.824 million a year earlier, indicating a decline of approximately 26.7%[33]. - The company reported a significant increase in inventory valuation expense to $622 thousand for the 53 weeks ended February 2, 2025, compared to $1.829 million in the previous year[27].