# Prepayments and other receivables

Our prepayment and other receivables included value-added tax recoverable, interest receivables, amounts due from shareholders, amounts due from related parties, IPO cost capitalization, prepayments and other receivables. Value-added tax recoverable represented value-added taxes incurred in procurement. Interest receivables mainly represented interests from time deposits. The table below sets forth a breakdown of our prepayments and other receivables as of the dates indicated:

<table><tr><td rowspan="3"></td><td colspan="2">As of December 31,</td><td>As of
June 30,</td></tr><tr><td>2018</td><td>2019</td><td>2020</td></tr><tr><td colspan="3">(RMB in thousands)</td></tr><tr><td>Value-added tax recoverable</td><td>1,587</td><td>3,809</td><td>4,012</td></tr><tr><td>Interest receivables</td><td>37</td><td>3,006</td><td>7,268</td></tr><tr><td>Amounts due from shareholders during
Reorganization</td><td>8,738</td><td>–</td><td>–</td></tr><tr><td>Amounts due from shareholders</td><td>700</td><td>755</td><td>269</td></tr><tr><td>Amounts due from related parties</td><td>44</td><td>35</td><td>53</td></tr><tr><td>IPO cost caiiptalzation</td><td>–</td><td>–</td><td>545</td></tr><tr><td>Prepayments</td><td>458</td><td>458</td><td>1,141</td></tr><tr><td>Other receivables</td><td>309</td><td>745</td><td>2,341</td></tr><tr><td>Total</td><td>11,873</td><td>8,808</td><td>15,629</td></tr></table>

Our prepayments and other receivables decreased from RMB11.9 million as of December 31, 2018 to RMB8.8 million as of December 31, 2019. The decrease was primarily attributable to a decrease in amounts due from shareholders as a result of the completion of the Reorganization, partially offset by (i) an increase in value-added tax recoverable, as a result of our increased purchase of pre-clinical and clinical research and development related services and (ii) an increase in interest receivables primarily attributable to the increased amount of time deposits in 2019 as we received the funding from our series B financing. Our prepayments and other receivables increased from RMB8.8 million as of December 31, 2019 to RMB15.6 million as of June 30, 2020, mainly due to an increase in interest receivables as a result of the accrual of the interest generated by our time deposits.

# Cash and bank balances

Our cash and bank balances primarily consisted of cash at bank and short-term time deposits. Our cash and bank balances increased from RMB65.3 million as of December 31, 2018 to RMB746.8 million as of December 31, 2019. The increase was mainly attributable to the funds from our series B financing and the government subsidies we received. Our cash and bank balances decreased to RMB616.7 million as of June 30, 2020, mainly because of the RMB82.9 million payment we made in relation to the amendment of the Karyopharm Agreement, and payment of employment expenses and fees to CROs, CDMOs and SMOs. As of September 30, 2020, our cash and cash equivalents and time deposits was RMB957.7 million. For further information regarding our cash and bank balances, please see Note 16 to the Accountants’ Report set out in Appendix I.

The table below sets forth a breakdown of our cash and bank balances as of the dates indicated:

<table><tr><td rowspan="3"></td><td colspan="2">As at December 31,</td><td>As at
June 30,</td></tr><tr><td>2018</td><td>2019</td><td>2020</td></tr><tr><td colspan="3">(RMB in thousands)</td></tr><tr><td>(1)Pledged deposits</td><td>15,935</td><td>2,625</td><td>2,625</td></tr><tr><td>Bank deposits with oriilgna maturity of
more than three months when
(2)acquired</td><td>–</td><td>453,383</td><td>389,302</td></tr><tr><td>Cash and cash equivalents</td><td>49,322</td><td>290,787</td><td>224,731</td></tr><tr><td>Total</td><td>65,257</td><td>746,795</td><td>616,658</td></tr></table>

Notes:

(1) This represents pledged deposits in commercial banks for bank loans and bank overdraft. None of these deposits are either past due or impaired.

(2) This represents time deposits with initial terms of over three months when acquired in commercial banks with annual return rates ranging from 2.70% to 3.25%. None of these deposits are either past due or impaired. None of these deposits are pledged.