# STRUCTURED CONTRACTS (Continued(

# 5. Leyu (Continued(

# The risks and limitations relating to the Leyu Structured Contracts (Continued(

# (6) The contractual arrangements may be subject to scrutiny of the PRC tax authorities and transfer pricing adjustments and additional tax may be imposed.

The Leyu Structured Contracts may be subject to scrutiny by the tax authorities and additional tax may be imposed. Under the Leyu Structured Contracts, each of the OPCOs are required to pay Beijing WFOE a service fee for the services rendered by Beijing WFOE. Such service fee payments between related parties may be subject to scrutiny or challenge by the PRC tax authorities within ten years after the taxable year when such transactions are conducted.

# (7) The Company does not have any insurance which covers the risks relating to the Leyu Structured Contracts and the transactions contemplated thereunder.

The insurance of the Group does not cover the risks relating to the Leyu Structured Contracts and the transactions contemplated thereunder and the Company has no intention to purchase any new insurance in this regard. If any risk arises from the Leyu Structured Contracts in the future, such as those affecting the enforceability of the Leyu Structured Contracts and the relevant agreements for the transactions contemplated thereunder and the operation of the OPCOs, the results of the Group may be adversely affected. However, the Group will monitor the relevant legal and operational environment from time to time to comply with the applicable laws and regulations. In addition, the Group will implement relevant internal control measures to reduce the operational risk.

架構合約（續(

5. Leyu（續(

有關Leyu架構合約之風險及限制（續(

(6) 合約安排可能受到中國稅務機關的審查，可能被施以轉移定價調整及附加稅。

Leyu架構合約可能受到稅務機關的審查及可能被徵收附加稅。根據Leyu架構合約，該等營運公司各自須就北京外商獨資企業所提供之服務向其支付服務費。相關訂約方之間的有關服務費款項可能會於有關交易進行的稅務年度後十年內受中國稅務機關的審查或質疑。

(7) 本公司並無就有關Leyu架構合約及其項下擬進行之交易之風險投購保險。

本集團並無就Leyu架構合約及其項下擬進行之交易之風險投購保險及本公司無意就此購買任何新保險。倘未來Leyu架構合約產生任何風險，有關風險會影響Leyu架構合約及其項下擬進行交易之有關協議之可執行性及該等營運公司之營運，本集團之業績可能受到不利影響。然而，本集團將不時監控有關法律及營運環境以符合適用法律及法規。此外，本集團將實施有關內部監控措施以降低營運風險。

# STRUCTURED CONTRACTS (Continued(

# 5. Leyu (Continued(

# Actions taken by the Group to mitigate the risks

The Group incorporated and adopted relevant requirements of industrial and regulatory policies to various management guidelines and procedural guidelines, and performed timely monitoring of new trends in the market and regulatory policies. All information collected was summarized and communicated to the relevant personnel forthwith. New trends and regulatory policies were collected and risks were controlled vigorously.

In addition, the applicable laws and regulations are timely reflected in the business activities and operations of our Group through the implementation of process management in various business areas.

To foster an enabling culture for risk management, the Group compiled and prepared training courses for risk management, helping with the dissemination of knowledge and keeping abreast of the market development. The Group seeks and will continue to seek legal or other specialist advice as appropriate in order to effectively monitor the legal and regulatory risks.

# Material changes to and the unwinding of the Leyu Structured Contracts

There were no material changes to the Leyu Structured Contracts and/or the circumstances under which they were adopted, nor was there any unwinding of them or of a failure to do the same due to the restrictions that led to their adoption being removed.

For detailed information relating to the Leyu Structured Contracts. please refer to the announcement issued by the Company on 31 October 2016.

架構合約（續(

5. Leyu（續(

本集團所採取減低有關風險之行動

本集團之各項管理指引及程序指引均納入並採納行業及監管政策之相關規定，本集團亦即時監察市場及監管政策新趨勢。所有已收集資料已作出概要整理，並立即與有關人員溝通。本集團已收集各項新趨勢及規管政策，並積極控管風險。

此外，本集團透過在各業務領域落實程序管理，於業務活動及經營即時反映適用法律及法規。

為加強推動風險管理，本集團已就風險管理匯集並編製培訓課程，旨在傳遞相關知識及掌握市場發展。本集團適時尋求並將持續尋求法律或其他專業人士意見，以有效監察法律及監管風險。

Leyu架構合約之重大變動及解除

Leyu架構合約及╱或彼等採用之情況並無重大變動，該等架構合約亦無遭解除或因導致彼等採用之限制被剔除而未能解除該等架構合約。

有關Leyu架構合約之詳細資料，請參閱本公司於二零一六年十月三十一日刊發之公告。