# EDGAR Filing Document

**Accession Number:** 0001938186
**File Stem:** 0001213900-25-098976
**Filing Date:** 2025-10
**Character Count:** 332227
**Document Hash:** 9c3b83a2a860a4ce51ddafaaedb176c3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-098976.hdr.sgml**: 20251015

**ACCESSION NUMBER**: 0001213900-25-098976

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 114

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20251015

**DATE AS OF CHANGE**: 20251015

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Jayud Global Logistics Ltd
- **CENTRAL INDEX KEY:** 0001938186
- **STANDARD INDUSTRIAL CLASSIFICATION:** ARRANGEMENT OF TRANSPORTATION OF FREIGHT & CARGO [4731]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41656
- **FILM NUMBER:** 251393481

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 4TH FLOOR, BUILDING 4, SHATOUJIAO FTZ
- **STREET 2:** SHENYAN ROAD, YANTIAN DISTRICT
- **CITY:** SHENZHEN
- **PROVINCE COUNTRY:** F4
- **BUSINESS PHONE:** (86)15218740808

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 4TH FLOOR, BUILDING 4, SHATOUJIAO FTZ
- **STREET 2:** SHENYAN ROAD, YANTIAN DISTRICT
- **CITY:** SHENZHEN
- **PROVINCE COUNTRY:** F4

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 6-K**

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of October 2025

Commission file number: **001-41656**

**<u>Jayud Global Logistics Limited</u>**

(Translation of registrant's name into English)

**Building 3, No. 7 Gangqiao Road, Li Lang Community, Nanwan Street, Longgang District, Shenzhen, People's Republic of China**

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F ☐

**Information contained in this report**

Jayud Global Logistics Limited, a Cayman Islands exempted company (the "Company") is furnishing this report on Form 6-K to provide results for the six months ended June 30, 2025 in connection with the unaudited interim condensed consolidated financial statements as of and for the six months ended June 30, 2025.

As previously disclosed, on September 9, 2025, the board of directors of the Company, approved a share combination (the "Share Combination") of the Company's ordinary shares at a ratio of 50-to-1 so that every 50 shares (or part thereof) are combined into one (1) share (with the fractional shares rounding up to the next whole share). As a result of the Share Combination, and the authorized share capital of the Company changed from US$50,000 divided into 500,000,000 shares of US$0.0001 each, comprising (i) 480,000,000 Class A ordinary shares of par value US$0.0001 each and (ii) 20,000,000 Class B ordinary shares of par value US$0.0001 each, to US$2,500,000 divided into 500,000,000 shares of par value US$0.005 each, comprising (i) 480,000,000 Class A ordinary shares of par value US$0.005 each and (ii) 20,000,000 Class B ordinary shares of par value US$0.005 each. The Company filed the Fourth Amended and Restated Memorandum and Articles of Association after the board approval. The Company's Class A ordinary shares began trading on the Nasdaq Stock Market on a post Share Combination basis on October 13, 2025.

A copy of the Company's first half of 2025 unaudited financial results, and a copy of <u>management's discussion and analysis of financial condition and results of operations, and</u> a copy of the Fourth Amended and Restated Memorandum and Articles of Association are furnished as Exhibit 99.1, 99.2, and 99.3, respectively, to this Report on Form 6-K and incorporated herein by reference.

The document attached as Exhibits 99.1, 99.2, and 99.3 to this report on Form 6-K are hereby incorporated by reference into the Company's registration statement on Form F-3, as amended (File No. [333-280010](https://www.sec.gov/Archives/edgar/data/1938186/000121390024050364/ea0207311-f3_jayud.htm)), and shall be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

<u>Exhibit Index</u>

---

| | |
|:---|:---|
| Exhibit No. |  |
| 99.1 | [Jayud Global Logistics Limited First Half of 2025 Unaudited Financial Results](ea026101001ex99-1_jayud.htm) |
| 99.2 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](ea026101001ex99-2_jayud.htm) |
| 99.3 | [The Fourth Amended and Restated Memorandum and Articles of Association](ea026101001ex99-3_jayud.htm) |
| 101.INS\* | Inline XBRL Instance Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

---

**<u>SIGNATURES</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: October 15, 2025

---

| | | |
|:---|:---|:---|
| **Jayud Global Logistics Limited** | **Jayud Global Logistics Limited** | **Jayud Global Logistics Limited** |
| By: | /s/ Xiaogang Geng | /s/ Xiaogang Geng |
|  | Name | Xiaogang Geng |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

**JAYUD GLOBAL LOGISTICS LIMITED**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Unaudited Interim Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](#f_001) | F-2 |
| [Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income for the Six Months Ended June 30, 2025 and 2024](#f_002) | F-3 |
| [Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2025 and 2024](#f_003) | F-4 |
| [Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024](#f_004) | F-5 |
| [Notes to Unaudited Interim Condensed Consolidated Financial Statements](#f_005) | F-6 – F-45 |

---

**JAYUD GLOBAL LOGISTICS LIMITED**

**INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | | |
|:---|:---|:---|:---|
|  | | **June 30, 2025** | **June 30, 2025** |
|  | **December 31,**<br>**2024** | **(Unaudited)** | **(Unaudited)** |
|  | **RMB** | **RMB** | **US$** |
| **Assets** |  |  |  |
| Current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | 36996422 | 30143886 | 4210863 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 103489 | - | - |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 38696583 | 67987919 | 9497377 |
| &nbsp;&nbsp;&nbsp;Accounts receivable - related parties | 249925 | 451609 | 63086 |
| &nbsp;&nbsp;&nbsp;Contract assets | 3441959 | 3551078 | 496058 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets, net | 33915774 | 28631047 | 3999531 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets - related parties | 6696004 | - | - |
| &nbsp;&nbsp;&nbsp;Other receivable - related parties | 20273420 | 11418978 | 1595141 |
| &nbsp;&nbsp;&nbsp;Loan receivable - related parties | - | 935906 | 130739 |
| **Total current assets** | 140373576 | 143120423 | 19992795 |
| **Non-current assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Long term investments | 20633148 | 20770979 | 2901542 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 15657880 | 16582800 | 2316486 |
| &nbsp;&nbsp;&nbsp;Intangible asset, net | 2086712 | 2220901 | 310242 |
| &nbsp;&nbsp;&nbsp;Operating right-of-use assets, net | 1881535 | 2232626 | 311880 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | - | 110958 | 15500 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets, net | 3733020 | 4365138 | 609775 |
| **Total non-current assets** | 43992295 | 46283402 | 6465425 |
| **TOTAL ASSETS** | **184365871** | **189403825** | **26458220** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |
| **Current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 10497682 | 14253311 | 1991075 |
| &nbsp;&nbsp;&nbsp;Current maturities of a long-term borrowing | - | 40000 | 5588 |
| &nbsp;&nbsp;&nbsp;Loans payable - related parties | 2233700 | 40000 | 5588 |
| &nbsp;&nbsp;&nbsp;Loans payable - shareholders | 8655800 | - | - |
| &nbsp;&nbsp;&nbsp;Accounts payable - third parties | 44452581 | 40290919 | 5628321 |
| &nbsp;&nbsp;&nbsp;Accounts payable - related parties | 242734 | 11730867 | 1638710 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 4080621 | 10039099 | 1402383 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 12084446 | 5691843 | 795106 |
| &nbsp;&nbsp;&nbsp;Other payable - related parties | 789560 | 627993 | 87726 |
| &nbsp;&nbsp;&nbsp;Other payable - shareholders | 613820 | - | - |
| &nbsp;&nbsp;&nbsp;Taxes payable | 11698309 | 11506860 | 1607418 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities - current | 812669 | 1151799 | 160897 |
| **Total current liabilities** | 96161922 | 95372691 | 13322812 |
| **Non-current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Long-term borrowings | - | 3960000 | 553181 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities – non-current | 1898004 | 1647201 | 230101 |
| &nbsp;&nbsp;&nbsp;Other payables - shareholders - non-current | 6937500 | 6937500 | 969114 |
| **Total non-current liabilities** | 8835504 | 12544701 | 1752396 |
| **Total liabilities** | **104997426** | **107917392** | **15075208** |
| **Commitments and contingencies** |  |  |  |
| **Shareholders' equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;Class A Ordinary shares (par value of US$0.0001 per share; 480,000,000 Class A ordinary shares authorized and 88,408,017 Class A ordinary shares issued and outstanding as of December 31, 2024 and 88,426,696 Class A ordinary shares issued and outstanding as of June 30, 2025.) | 62468 | 62482 | 8728 |
| &nbsp;&nbsp;&nbsp;Class B Ordinary shares (par value of US$0.0001 per share; 20,000,000 Class B ordinary shares authorized and 5,409,600 class B shares issued and outstanding as of December 31, 2024 and June 30, 2025.) | 3368 | 3368 | 470 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 217527319 | 217527305 | 30386850 |
| &nbsp;&nbsp;&nbsp;Statutory reserves | 434047 | 446895 | 62428 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (126955513) | (125179254) | (17486555) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (812156) | (1172408) | (163776) |
| **Total Jayud Global Logistics Limited shareholders' equity** | 90259533 | 91688388 | 12808145 |
| **Non-controlling interests** | (10891088) | (10201955) | (1425133) |
| **Total shareholders' equity** | 79368445 | 81486433 | 11383012 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | **184365871** | **189403825** | **26458220** |

---

The accompanying notes are an integral part of these interim condensed consolidated financial statements

**JAYUD GLOBAL LOGISTICS LIMITED**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | **RMB** | **RMB** | **US$** |
| Revenues - freight forwarding | 162734262 | 155875351 | 21774558 |
| Revenues - freight forwarding - related parties | 609612 | 1978424 | 276370 |
| Revenues - supply chain management and others | 106622319 | 122507419 | 17113321 |
| Revenues - supply chain management and others - related parties | 641316 | 267111 | 37313 |
| Total Revenues | 270607509 | 280628305 | 39201562 |
| Cost of revenues - freight forwarding | (139288357) | (112165665) | (15668659) |
| Cost of revenues - freight forwarding - related parties | (33130090) | (28350905) | (3960398) |
| Cost of revenues - supply chain management and others | (100901129) | (120465033) | (16828016) |
| Total Cost of revenues | (273319576) | (260981603) | (36457073) |
| Gross (loss) / profit | (2712067) | 19646702 | 2744489 |
| **Operating expenses** |  |  |  |
| Selling expenses | (3850752) | (4443044) | (620658) |
| Reversal of credit losses | 1840875 | 3282461 | 458534 |
| Impairment charges on long-lived assets | (963867) | - | - |
| Lease termination (loss) / gain | (310673) | 107025 | 14951 |
| General and administrative expenses | (11844976) | (15518954) | (2167876) |
| Research and development expenses | (502278) | (625657) | (87399) |
| Total operating expenses | (15631671) | (17198169) | (2402448) |
| **Operating (loss) / profit** | **(18343738)** | **2448533** | **342041** |
| **Other expenses** |  |  |  |
| Other income, net | 74482 | 414160 | 57855 |
| Foreign exchange loss, net | (464790) | (1422781) | (198751) |
| Financial (expenses) / income, net | (1252481) | 101178 | 14134 |
| **Total other expenses, net** | (1642789) | (907443) | (126762) |
| **(Loss) / income before income tax expense** | **(19986527)** | **1541090** | **215279** |
| Income tax benefit | 672393 | 586878 | 81982 |
| Share of income of equity method investees, net of tax of nil | - | 180815 | 25258 |
| **Net (loss) / income** | **(19314134)** | **2308783** | **322519** |
| Less: Net (loss) / income attributable to non-controlling interests | (1379207) | 519676 | 72595 |
| **Net (loss) / income attributable to the Jayud Global Logistics Limited's ordinary shareholders** | **(17934927)** | **1789107** | **249924** |
| **Net (loss) / income** | (19314134) | 2308783 | 322519 |
| Foreign currency translation adjustment, net of tax | (1329500) | (360252) | (50324) |
| **Total comprehensive (loss) / income** | **(20643634)** | **1948531** | **272195** |
| Less: total comprehensive (loss) / income attributable to non-controlling interest | (1379207) | 519676 | 72595 |
| **Total comprehensive (loss) / income attributable to Jayud Global Logistics Limited's ordinary shareholders** | **(19264427)** | **1428855** | **199600** |
| **Net (loss) / income per share** |  |  |  |
| Basic and diluted | (0.84) | 0.02 | 0.003 |
| **Weighted average shares** |  |  |  |
| Basic and diluted | 21352223 | 93826802 | 93826802 |

---

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

**JAYUD GLOBAL LOGISTICS LIMITED**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY/ (DEFICIT)** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A Ordinary<br> shares** | **Class A Ordinary<br> shares** | **Class B Ordinary<br> shares** | **Class B Ordinary<br> shares** | | | | | | | |
|  | **Share** | **Amount** | **Share** | **Amount** | **Additional<br> paid-in**<br>**capital** | **Statutory**<br>**reserves** | **Accumulated**<br>**deficit** | **Accumulated<br> other<br> comprehensive**<br>**loss** | **Total Jayud<br> Global<br> Logistics<br> Limited<br> shareholders'**<br>**(deficit)/equity** | **Non-controlling**<br>**interests** | **Total<br> shareholders'**<br>**(deficit)/equity** |
|  | | **RMB** | | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| **Balance as of December 31, 2023** | 14942623 | 9787 | 6409600 | 4087 | 60423647 | 502941 | (77454208) | (1541653) | (18055399) | (7676674) | (25732073) |
| Provision for statutory reserve |  | - |  | - | - | 261290 | (261290) | - | - | - | - |
| Net loss |  | - |  | - | - |  | (17934927) | - | (17934927) | (1379207) | (19314134) |
| Business acquisition |  | - |  | - | 4654 |  | - | - | 4654 | 1984 | 6638 |
| Deferred offering costs for initial public offering |  | - |  | - | (428320) | - | - | - | (428320) | - | (428320) |
| Foreign currency translation | - | - | - | - | - | - | - | 30607 | 30607 | - | 30607 |
| **Balance as of June 30, 2024 (unaudited)** | **14942623** | **9787** | **6409600** | **4087** | **59999981** | **764231** | **(95650425)** | **(1511046)** | **(36383385)** | **(9053897)** | **(45437282)** |
| **Balance as of December 31, 2024** | 88408017 | 62468 | 5409600 | 3368 | 217527319 | 434047 | (126955513) | (812156) | 90259533 | (10891088) | 79368445 |
| Provision for statutory reserve |  | - |  | - | - | 12848 | (12848) | - | - | - | - |
| Net income |  | - |  | - | - |  | 1789107 | - | 1789107 | 519676 | 2308783 |
| Issuance of Class A ordinary shares by exercise of warrants | 18679 | 14 |  |  | (14) |  | - | - | - | - | - |
| Disposal of subsidiaries (note 16) |  | - |  | - | - | - | - | - | - | 18457 | 18457 |
| Capital injection by non-controlling interest |  | - |  | - | - | - | - | - | - | 151000 | 151000 |
| Foreign currency translation | - | - | - | - | - | - | - | (360252) | (360252) | - | (360252) |
| **Balance as of June 30, 2025 (unaudited)** | **88426696** | **62482** | **5409600** | **3368** | **217527305** | **446895** | **(125179254)** | **(1172408)** | **91688388** | **(10201955)** | **81486433** |
| **Balance as of June 30, 2025 (unaudited) (US$)** |  | **8728** |  | **470** | **30386850** | **62428** | **(17486555)** | **(163776)** | **12808145** | **(1425133)** | **11383012** |

---

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

**JAYUD GLOBAL LOGISTICS LIMITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | **RMB** | **RMB** | **US$** |
| **Cash flows from operating activities:** |  |  |  |
| Net (loss) / income | (19314134) | 2308783 | 322519 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |
| Reversal of credit losses | (1840875) | (3282461) | (458534) |
| Lease termination loss/(gain) | 310673 | (107025) | (14951) |
| Depreciation and amortization | 242022 | 540851 | 75553 |
| Amortization of operating lease right-of-use asset | 2565585 | 352998 | 49311 |
| Impairment losses of property and equipment | 963867 | - | - |
| Investment losses/(gain) | 33813 | (224015) | (31293) |
| Gain from disposal of subsidiaries | - | (7036) | (983) |
| Deferred tax benefit | (920680) | (632118) | (88302) |
| Changes in operating assets and liabilities |  |  |  |
| Accounts receivable, net | (3464994) | (28113666) | (3927258) |
| Accounts receivable - related parties | (260010) | (201684) | (28174) |
| Contract assets | (798100) | 2041085 | 285123 |
| Prepaid expenses and other current asset, net | 3753560 | 5239314 | 731891 |
| Prepaid expenses - a related party | (260513) | 6696004 | 935379 |
| Others receivable - related parties | - | 8854442 | 1236896 |
| Accounts payable | 894174 | (4161662) | (581351) |
| Accounts payable - related parties | 11574779 | 11488133 | 1604802 |
| Contract liabilities | (2165606) | 5958478 | 832352 |
| Accrued expenses and other current liabilities | (2081469) | (6392603) | (892996) |
| Other payable - shareholders | (19016) | (613820) | (85746) |
| Other payable - related parties | (2704) | (136074) | (19008) |
| Tax payable | 404530 | (191449) | (26744) |
| Operating lease liabilities | (4255704) | (508737) | (71067) |
| **Net cash used in operating activities** | **(14640802)** | **(1092262)** | **(152581)** |
| **Cash flows from investing activities:** |  |  |  |
| Cash acquired from acquisition of subsidiaries | 144431 | - | - |
| Purchase of property, equipment and intangible assets | (611010) | (1599960) | (223502) |
| **Net cash used in investing activities** | **(466579)** | **(1599960)** | **(223502)** |
| **Cash flows from financing activities:** |  |  |  |
| Proceeds from short-term borrowings | 17743710 | 20753845 | 2899149 |
| Proceeds from a long-term borrowing | - | 4000000 | 558768 |
| Repayments of short-term borrowings | (21910317) | (16983674) | (2372485) |
| Repayment of a long-term borrowing | (300000) | - | - |
| Proceeds from loans provided by shareholders | 15508245 | - | - |
| Proceeds from loans provided by related parties | 3000000 | 40000 | 5588 |
| Loans repayment to shareholders | - | (8655800) | (1209147) |
| Loans repayment to related parties | (4000000) | (2233700) | (312030) |
| Loans to related parties | - | (935906) | (130739) |
| Payments for deferred offering costs | (513201) | (110958) | (15500) |
| Capital injection by a non-controlling interest | 20000 | 151000 | 21094 |
| **Net cash provided by (used in) financing activities** | **9548437** | **(3975193)** | **(555302)** |
| Effect of exchange rate changes | 30607 | (288610) | (40317) |
| **Net decrease in cash and cash equivalents and restricted cash** | **(5528337)** | **(6956025)** | **(971702)** |
| **Total cash and cash equivalents and restricted cash at beginning of the year** | **26605028** | **37099911** | **5182565** |
| **Total cash and cash equivalents at end of the year** | **21076691** | **30143886** | **4210863** |
| **Supplemental disclosure of cash flow information:** |  |  |  |
| Income tax paid | 172377 | 90670 | 12666 |
| Interest expense paid | 645490 | 374713 | 52344 |
| **Supplemental non-cash investing and financing information:** |  |  |  |
| Obtaining right-of-use assets in exchange for operating lease liabilities | 7203051 | 704089 | 98356 |

---

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**1. ORGANIZATION AND PRINCIPAL ACTIVITIES**

Jayud Global Logistics Limited ("Jayud" or the "Company") was incorporated in the Cayman Islands on June 10, 2022 under the Cayman Islands Companies Act. The Company through its consolidated subsidiaries (collectively, the "Group") is principally engaged in the freight forwarding and trading based in the People's Republic of China ("PRC" or "China").

As of June 30, 2025, the details of the Company's subsidiaries are as follows. All subsidiaries of the Group are all owned by the Company through equity investment.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Entity** | **Controlled by** | **Date of<br> Incorporation <br> /Acquisition** | **Place of <br> incorporation** | **Percentage <br> of direct <br> ownership** | **Principal activities** |
| Jayud Global Logistics (Hong Kong) Limited ("JYD HK") | Jayud | June 24, 2022 | Hong Kong | 100% | Wholly foreign owned enterprise |
| Joyed Logistics Services Inc. ("JYD US") | Jayud | April 25, 2023 | U.S.A. | 100% | Freight forwarding |
| Shenzhen Jayud Logistics Technology Co., Ltd ("JYD WLKJ") | JYD HK | July 23, 2015 | PRC | 100% | Freight forwarding |
| Hongkong Jayud International Logistics Company Limited ("JYD HKGJHY") | JYD HK | December 31, 2017 | Hong Kong | 100% | Agent service |
| HK XINYX Technology Limited ("HK XYX") | JYD HK | September 6, 2023 | Hong Kong | 100% | International trading |
| HK (FASTFLY) International Logistics Co., Limited ("FASTFLY") | JYD HK | April 2, 2024 | Hong Kong | 51% | Freight forwarding |
| Yukon Flooring Bellaire LLC ("YFB") | &nbsp;&nbsp;&nbsp;&nbsp;JYD US | &nbsp;&nbsp;&nbsp;&nbsp;October 25, 2024 | U.S.A. | 95% | Warehousing |
| Shenzhen Jia Yu Da International Logistics Co., Ltd. And its Tianjin Branch, Guangzhou Branch, Qingdao Branch and Ningbo Branch ("JYD SZGJHY") | JYD WLKJ | June 19, 2011 | PRC | 100% | Freight forwarding |
| Shenzhen Jia Yu Da Trading Co., Ltd. ("JYD SM") | JYD WLKJ | September 18, 2009 | PRC | 100% | International trading |
| Shenzhen Jiayuda Customs Declaration Co., Ltd. ("JYD BG") | JYD WLKJ | September 14, 2015 | PRC | 100% | Customs brokerage |
| Shenzhen XIN YU Xiang Import & Export Co., Ltd. ("JYD XYX") | JYD WLKJ | October 26, 2011 | PRC | 100% | International trading |
| Shenzhen Ronghai Tongda Supply Chain Management Co., Ltd ("JYD RHTD") | JYD XYX | July 31, 2023 | PRC | 51% | International trading |
| Shenzhen Jiayuda Global Supply Chain Co., Ltd. ("JYD HQ") | JYD WLKJ | April 23, 2014 | PRC | 100% | Freight forwarding |
| Sky Pacific Logistics HK Company Limited ("TPYHK") | JYD HQ | March 2, 2016 | Hong Kong | 67% | Agent service |
| Shenzhen Jiayuda E-Commerce Technology Co., Ltd ("JYD DS") | JYD WLKJ | April 1, 2021 | PRC | 100% | Freight forwarding |
| Nanjing Jiayuda Logistics Co., Ltd. And its Nantong Branch, and Xiamen Branch ("JYD NJWL") | JYD WLKJ | February 12, 2018 | PRC | 100% | Freight forwarding |
| Shaanxi JiaYuda Supply Chain Management Co., Ltd. ("JYD SXGYL") | JYD WLKJ | March 27, 2018 | PRC | 100% | Freight forwarding |
| Shenzhen Jayud Yuncang Technology Co., Ltd. ("JYD YCKJ") | JYD WLKJ | July 25, 2022 | PRC | 52% | Warehousing |
| Shenzhen JNT International Logistics <br> Co.,Ltd ("JNT") | JYD WLKJ | January 18, 2024 | PRC | 51% | Freight forwarding |
| Ezhou Jayud Logistics Technology Co.,Ltd ("EZ WLKJ") | JYD HK | August 23, 2024 | PRC | 100% | Freight forwarding |
| EZhou Jayud International Logistics Co., Ltd. ("EZ GJHY"） | EZ WLKJ | September 2, 2024 | PRC | 51% | Freight forwarding |

---

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**1. ORGANIZATION AND PRINCIPAL ACTIVITIES** (Cont.)

 **

***Reorganization***

 **

In anticipation of an initial public offering ("IPO") of its equity securities, the Company incorporated Jayud Global Logistic (Hong Kong) Limited ("JYD HK") under the laws of Hong Kong, PRC, as its direct wholly-owned subsidiary, on June 24, 2022. In September 2022, JYD HK directly invested in JYD WLKJ as its direct wholly-owned subsidiary and resulted in payment of RMB 35Mil for share purchase from initial shareholders.

The Company and its subsidiaries were effectively controlled by the same shareholders immediately before and after the reorganization completed in September 2022, as described above. As a result, the Group's consolidated financial statements have been prepared as if the current corporate structure has been in existence throughout the periods presented.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) Basis of presentation***

 ****

The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities Exchange Commission (the "SEC") and have been consistently applied. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows and should be read in conjunction with the Company's consolidated financial statements as of December 31, 2023 and 2024. In the opinion of management, the accompanying interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results, and cash flows for the periods presented. Operating results for the interim period ended June 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2025.

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b) Principles of consolidation***

The interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c) Use of estimates and assumptions***

The preparation of the interim condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates include, but not limited to the allowance of credit loss for accounts receivables, contract assets, and prepaid expenses and other current asset, the impairment of long-lived assets, and the valuation allowance for deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the interim condensed consolidated financial statements.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d) Foreign currencies and foreign currency translation***

The reporting currency of the Group is Renminbi ("RMB"). The Company's operating subsidiaries in China and Hong Kong use their respective currencies RMB and Hong Kong Dollar ("HKD") as their functional currencies.

The financial statements of non-PRC entities are translated into RMB using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the years for income and expense items. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency other than RMB is translated at the historical rate of exchange at the time of capital contribution.

Translation adjustments arising from these are reported as foreign currency translation adjustments of RMB 1,329,500 and RMB 360,252(US$50,324) for the six months ended June 30, 2024 and 2025, respectively and are shown as a separate component of shareholders' equity on the interim condensed consolidated financial statement. The following table outlines the currency exchange rates that were used in preparing the interim condensed consolidated financial statements, representing the index rates stipulated by the Bank of China:

---

| | | | |
|:---|:---|:---|:---|
| USD against RMB | **June 30, 2024** | **December 31, 2024** | **June 30, 2025** |
| Year-end spot rate | USD1=RMB7.1268 | USD1=RMB7.1884 | USD1=RMB7.1586 |
| Average rate | USD1=RMB7.1023 | USD1=RMB7.1162 | USD1=RMB7.1794 |

---

---

| | | | |
|:---|:---|:---|:---|
| **HKD against RMB** | **June 30, 2024** | **December 31, 2024** | **June 30, 2025** |
| **Year-end spot rate** | HKD1=RMB0.9126 | HKD1=RMB0.9249 | HKD1=RMB0.9113 |
| **Average rate** | HKD1=RMB0.9084 | HKD1=RMB0.9120 | HKD1=RMB0.9210 |

---

 ****Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in exchange gains/(losses) on the consolidated statements of income and comprehensive income. The Group incurred and recognized foreign currency exchange loss of RMB464,790 and RMB1,422,781 (US$198,751) for the six months ended June 30, 2024 and 2025, respectively, as a result of changes in the exchange rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(e) Convenience translation***

The United States dollar ("US$") amounts disclosed in the accompanying interim condensed financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the rate of US$1.00=RMB 7.1586 on June 30, 2025, representing the middle rate as set forth in the statistical release of the Bank of China as of June 30, 2025. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(f) Segment information***

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Group's chief operating decision maker in order to allocate resources and assess performance of the segment.

In accordance with ASC ("Accounting Standard Codification") 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM"), or decision-making group, in deciding how to allocate resources and in assessing performance. The Group uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Group's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Group's reportable segments. The Group's CODM has been identified as the chief executive officer (the "CEO"), who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures ("ASU 2023-07"), requiring public business entities to provide disclosures of significant expenses and other segment items. The guidance also requires public entities to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. ASU 2023-07 is effective for companies for annual periods from January 1, 2024, and for interim periods from January 1, 2025, with early adoption permitted. The Group adopted this standard in 2024 for annual period disclosures, and such adoption did not have a material impact on its our financial statements.

In 2024, the Group acquired interests in three companies in the United States. Because of the acquisition, the Group operated and reviewed its performance in two segments starting from 2024: (i) PRC and Hong Kong, and (ii) U.S.A. Furthermore, the Group's chief operating decision maker evaluates performance based on each reporting segment's revenues, costs, gross profit.

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g) Cash and Restricted Cash***

Cash consists of cash on hand and cash in bank. The Group maintains cash with various financial institutions primarily in China. As of December 31, 2024 and June 30, 2025, balances of cash were RMB 36,996,422 and RMB 30,143,886 (US$4,210,863), respectively. The Group has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts.

In 2023, restricted cash represents Demand Bank Guarantee for an international express company. Under the Demand Bank Guarantee, the Group need to deposit RMB500,000 into the bank account in the Bank of China and the cash deposited is restricted for use to make the payments to the international express company under the two-year Air Freight Agency Agreement between the Group and the express company. The term of the Demand Bank Guarantee is from March 2022 to January 2024. In January 2024, RMB501,952 was released, which consisted of principal of RMB500,000 and accumulated interests of RMB1,952.

As of December 31, 2024, the restricted cash balance was RMB103,489, representing the frozen funds due to a lawsuit. The restriction was removed in January 2025. There was no restricted cash as of June 30, 2025.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***(h) Accounts receivable, net***

Accounts receivable, net, include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The credit terms are generally between 30 to 60 days.

Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, and are due on demand. The carrying value of accounts receivable is reduced by an allowance that reflects the Company's best estimate of the amounts that will not be collected. An allowance for credit losses is recorded in the period when a loss is probable based on an assessment of specific evidence indicating collection is unlikely, historical bad debt rates, accounts aging, financial conditions of the customer and industry trends. Starting from April 1, 2023, the Group adopted ASU No.2016-13 "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASC Topic 326"). Management also periodically evaluates individual customer's financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group's management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. As of December 31, 2024 and June 30, 2025, the Group record allowance for credit loss of RMB 19,102,954 and RMB 17,910,167 (US$2,501,909) against accounts receivable, respectively. ****

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i) Property and equipment, net***

Property and equipment is stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives with an estimated residual value of the assets as follows:

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| | |
|:---|:---|
| **Category** | **Estimated useful lives** |
| Land | Infinite |
| Buildings | 25 years |
| Motor vehicles | 4 - 5 years |
| Electronic equipment | 1 - 5 years |
| Machinery | 5 - 10 years |
| Other equipment | 5 years |

---

Repair and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the consolidated statements of income and other comprehensive income in other income or expenses. See Note 6 - Property and Equipment, net in the Notes to Interim Condensed Consolidated Financial Statements for additional information related to the impairment charge during the six months ended June 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(j) Intangible assets, net***

 ****

Intangible assets are carried at cost less accumulated amortization and any recorded impairment. The intangible assets of the Group mainly represent the software for operating activities. Intangible assets are amortized using the straight-line basis over the estimated useful live of the asset as follows:

---

| | |
|:---|:---|
| **Category** | **Estimated useful lives** |
| Software | 5 - 10 years |

---

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

(***k) Long-term investments***

*Equity Method Investments* 

The Group accounts for its investments in common stock or in-substance common stock in entities in which it can exercise significant influence but does not own a majority equity interest or control using the equity method in accordance with ASC 323-10, Investments-Equity Method and Joint Ventures: Overall unless the Group elects to account for the investment using the fair value option in accordance with ASC 825-10, Financial Instruments: Fair Value Option ("ASC 825"). The Group applies the equity method of accounting that is consistent with ASC 323-30 in which the Group holds a five percent or greater interest for its invested companies with separate capital accounts. Where the equity method is used, the Group initially records its investment at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is accounted for as if the investee were a consolidated subsidiary. The Group subsequently adjusts the carrying amount of the investment to recognize the Group's proportionate share of each equity investee's net income or loss into earnings after the date of investment. The Group evaluates all investments for impairment under ASC 323-10. An impairment loss on the investments is recognized in earnings when the decline in value is determined to be other-than-temporary.

*Equity Investment without Readily Determinable Fair Values*

For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurements and Disclosures ("ASC 820") to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Group elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment's fair value in accordance with the principles of ASC 820. If the fair value is less than the investment's carrying value, the Group recognizes an impairment loss in earnings equal to the difference between the carrying value and fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(l) Impairment of long-lived assets***

The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows.

During the six months ended June 30, 2025, there was a triggering event of negative cash flows at the freight forwarding and warehousing assets group level that indicated the carrying amounts of the Group's long-lived assets may not have been recoverable. In accordance with ASC 360, regarding the long-lived assets, management of the Group performed an undiscounted cash flow analysis and concluded that the carrying value of the asset group was recoverable. As of June 30, 2025, the Group's property and equipment and ROU assets mainly included land and warehouse building, machinery, equipment, vehicles, and operating office and warehouse leases. For the six months ended June 30, 2025, no impairment were recognized based on the management's assessment. For the six months ended June 30, 2024, the Group recognized an impairment charge of RMB 396,850 against the property and equipment, RMB 567,017 against the intangible assets for the amount by which the carrying value of the asset group's long-lived assets exceeded their estimated fair value.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(m) Related parties***

 ****

A related party may be any of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under common control with another party; b) a principle owner, owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of management or principal owners; e) a parent company and its subsidiaries; and f) other parties that have ability to significant influence the management or operating policies of the entity. The Group discloses all significant related party transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(n) Fair value measurement***

The Group applies ASC 820, *Fair Value Measurements and Disclosures*, ("ASC 820''). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 ****

● Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.

● Level 3 — Unobservable inputs which are supported by little or no market activity.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future cash flow amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial assets and liabilities of the Group primarily consisted of cash, accounts receivable, amounts due from related parties, other receivables included in prepaid expenses and other current assets, short-term borrowings, accounts payable, amounts due to related parties, other payables included in accrued expenses and other current liabilities. As of December 31, 2024 and June 30, 2025, the carrying amounts of financial instruments approximated to their fair values due to the short-term maturity of these instruments.

The Group's non-financial assets, such as property and equipment, would be measured at fair value only if they were determined to be impaired.

The Group measures long-term investments at fair value on a nonrecurring basis only if an impairment or observable price adjustment is recognized in the current period. For an equity investment accounted for using the measurement alternative, the fair value was determined using directly or indirectly observable inputs in the market place (Level 2 inputs). Whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable, the fair value of aforementioned long-term investment was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection of discounted future cash flow and the discount rate.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(o) Revenue recognition***

 ****

Substantially all of the Group's revenues are from contracts associated with freight forwarding services domestically and internationally. Additionally, the Group provides supply chain management to customers, by exploiting its advantages in global supply chain services.

The following table identifies the disaggregation of the Group's revenue for the six months ended June 30, 2024 and 2025, respectively:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Six months ended<br> June 30, 2024** | **Six months ended<br> June 30, 2024** | **Six months ended <br> June 30, 2025** | **Six months ended <br> June 30, 2025** | **Six months ended <br> June 30, 2025** |
| <br>**Revenue Categories** | **(RMB)** | **%** | **(RMB)** | **(US$)** | **%** |
| **Type A: Freight forwarding services** | **163343874** | **60.3%** | **157853775** | **22050928** | **56.2%** |
| - Integrated cross-border logistics | 100212026 | 37.0% | 119686408 | 16719248 | 42.6% |
| - Fragmented logistics | 53948064 | 20.0% | 30748197 | 4295281 | 11.0% |
| - Chartered airline freight services | 6347577 | 2.3% | 3963350 | 553649 | 1.4% |
| - Warehouse services | 2836207 | 1.0% | 3455820 | 482750 | 1.2 |
| **Type B: Supply chain management** | **105500404** | **39.0%** | **120337504** | **16810201** | **42.9%** |
| - International trading in relation to supply chain management | 105499754 | 39.0% | 120337504 | 16810201 | 42.9% |
| - Agent services | 650 | 0.0% | - | - | 0.0% |
| **Type C: Other services** | **1763231** | **0.7%** | **2437026** | **340433** | **0.9%** |
| **Total** | **270607509** | **100.0%** | **280628305** | **39201562** | **100.0%** |

---

 ****

The following table presents revenue classified by timing of revenue recognition for the six months ended June 30, 2024 and 2025, respectively.

---

| | | | |
|:---|:---|:---|:---|
|  | **Six months<br> ended<br> June 30,<br> 2024** | **Six months ended<br> June 30, 2025** | **Six months ended<br> June 30, 2025** |
|  | **RMB** | **RMB** | **US$** |
| Point in time | 108964101 | 122774530 | 17150634 |
| Over time | 161643408 | 157853775 | 22050928 |
| **Total revenue** | **270607509** | **280628305** | **39201562** |

---

**Type A: Freight forwarding services**

The Group primarily engages in freight forwarding services, including integrated cross-border logistics, fragmented logistics, and chartered airline freight services. Integrated cross-border logistics and fragmented logistics are indifferent in the revenue recognition analysis, but with different quotation process. Under these two types of freight forwarding services, the Group fulfils its performance obligation by transporting freights from the origin to the destination, both are specified by customers, via air freight, ocean freight, and land freight. While providing the freight forwarding services, the Group has to provide certain ancillary services that are indispensable from the main service. These services collectively constitute a single performance obligation as they are highly interdependent and interrelated, forming a combined output for which the customer contracts. The Group cannot separately fulfill any individual service component without materially affecting the value or utility of the entire logistics service package to the customer. All service elements shall be delivered as one unified obligation under the agreement.. The Group considers that there is only one performance obligation as the customer cannot benefit from facilitating services on its own but be bundled with the freight services since the customer's purpose for entering into this contract is to transport goods from the origin to the destination. The transaction price is fixed when the contract was signed by both parties. These two types of revenue are recognized over time based on the extent of progress towards completion of the performance obligation. The Group adopts the output method, which is based on the transit time period, to measure progress. For chartered airline freight services, the Group provides a fixed volume or weight of space capacity on fixed-route air planes for customer transportation during the duration of the contract. The Group fulfills its performance obligation by transporting freights from the origin to the destination. The transaction price is fixed when the contract was signed by both parties, and there will be no variable consideration during transportation. This type of revenue is recognized in straight-line basis over the transit period. Generally, the airplane completes flight transportation service within one day or several hours. For warehousing services, the Group provides warehousing services to customers through storage of merchandise in the Group's warehouse. The services are recognized over time, as the Group performs contractual obligations through continuous transfer of control to the customers, and they could simultaneously receive and consume the benefits of the Group's performance as it occurs.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(o) Revenue recognition*** (cont.)

**Type A: Freight forwarding services** (cont.)

The Group considers itself the principal for transactions that it is in control of establishing the transaction price, and it is responsible for managing all aspects of the process and taking the risk of loss during the process. Therefore, such revenues are reported on a gross basis.

The payment term is within 60 days after completion of freight forwarding services. There is no other obligation in the contracts, such as return, refund or warranties.

 ****

**Type B: Supply chain management**

The Group also engages in supply chain management, which includes international trading and agent services. The Group provides international trading, which sells electronic products through both export and import, by exploiting its advantages in global supply chain services and networks. The Group fulfils its performance obligation by providing the specified goods/products to the customers. In accordance with the Company's customary business practices, once the products are delivered to the designated spot by its customers, the control of products has transferred, which indicates that the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from the asset. The transaction price is fixed when the contract was signed by both parties. This type of revenue is recognized based on the product value specified in the contract at a point in time when the control of products has transferred. The Group considers itself the principal because it is in control of establishing the transaction price and bearing inventory risk. Therefore, such revenues are reported on a gross basis.

In addition to international trading, the Group also provides agent services relates to export/import procedures, for example, application for duty-refund, customs brokerage services and so on. The Group fulfills its performance obligation by arranging export/import business for the customer, including but not limited to signing contracts with end customers on behalf of the customer and preparing customs brokerage and duty refund. This type of revenue is recognized at a point in time upon the completion of the agent services. The Group considers itself the agent because the Group is not primarily responsible for fulfilling the promise to provide the specified goods, neither bears the inventory risks. Therefore, such revenues are reported on a net basis.

The payment term is within 60 days after completion of international trading and agent services. There is no other obligation in the contracts, such as return, refund or warranties.

**Type C: Other value-added services**

Other value-added services mainly consist of customs brokerage services.

Customs brokerage services under Type C represents independent revenue stream, different from being one of the facilitating services of the freight forwarding business under Type A, or the facilitating services of the agent services under Type B under which those services are bundled as one performance obligation. The Group fulfils its performance obligation by providing customs brokerage services only. The transaction price is fixed when the contract was signed by both parties. This type of revenue is recognized at a point in time upon completion of services, usually within one day.

The payment term is normally 30 to 90 days after completion of customs brokerage services. There is no other obligation in the contracts, such as return, refund or warranties.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(o) Revenue recognition*** (cont.)

**Contract assets and liabilities**

In-transit freight with performance obligations recognized over time that have revenue recognized to date in excess of cumulative billings are reported on consolidated balance sheets as "Contract assets". Contract assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

Contract liabilities represents the obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. Contract liabilities of the Group mainly consist of advance product payments from customers of international trading. The Group expects to recognize this balance as revenue over the next 12 months.

The following table shows the amounts of revenue recognized in the current reporting period that were included in the contract liabilities at the beginning of the reporting period:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Revenue recognized that was included in contract liabilities at the beginning of the reporting period: | 4777398 | 3858332 | 538979 |

---

Contract assets were RMB 3,441,959 and RMB3,551,078 (US$496,058) as of December 31, 2024 and June 30, 2025, respectively. Contract liabilities related to advance payments from customers were RMB 4,080,621 and RMB 10,039,099 (US$1,402,383) as of December 31, 2024 and June 30, 2025, respectively.

The Company applies the practical expedient in Topic 606 that permits the Company to not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the period as the Company's contracts have an expected length of one year or less.

***Contract costs***

 ****

Contract costs consists of incremental costs of obtaining a contract with customers, for example, sales commissions. The Group elects to use the practical expedient, allowing to recognize the incremental costs of obtaining a contract as a cost or an expense when incurred if the amortization period, usually the contractual period, would have been one year or less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(p) Cost of revenues***

Cost of revenues consist primarily of (i) cost of freight charges, (ii) cost of purchase for international trading, (iii) labor costs, (iv) cost of customs brokerage, (v) cost of packaging, (vi) cost of indemnity paid to carriers and (vii) cost of warehouse lease. Cost of freight charges consists of (i) airfreight/ocean freight/land freight charges, (ii) delivery fees, and (iii) other service fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(q) Financial expenses, net***

Financial expenses, net mainly consist of (i) interest expenses, net, (ii) foreign exchange gain or loss, and (iii) bank charges. The Group incurred interest expenses, net of RMB 1,252,481 for the six months ended June 30, 2024 and interest income, net of RMB 101,178 (US$14,134) for the six months ended June 30, 2025, respectively. The Group incurred foreign exchange loss of RMB 464,790 and RMB 1,422,781 (US$198,751) for the six months ended June 30, 2024 and 2025, respectively.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(r) Deferred offering costs and share issuance costs***

 ****

Deferred offering costs and share issuance costs consist of legal, accounting, underwriting fees and other costs incurred through the balance sheet date that are directly related to the initial public offering. These costs, together with the underwriting discounts and commissions, will be charged to permanent equity upon completion of the offerings. Should the offerings prove to be unsuccessful, these costs, as well as additional expenses to be incurred, will be charged to expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(s) Non-controlling interests***

A non-controlling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group. Consolidated net income on the interim condensed consolidated statements of income and comprehensive income includes the net income attributable to non-controlling interests. The cumulative results of operations attributable to non-controlling interests, are recorded as non-controlling interests on the Group's interim consolidated balance sheets.

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(t) Leases***

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Group assess whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset.

The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Group recognizes operating lease expenses on a straight-line basis over the lease term.

Leases with an initial term of 12 months or less are short-term lease and not recognized as operating lease right-of-use assets and operating lease liabilities on the consolidated balance sheet. The Group recognizes lease expense for short-term leases on a straight-line basis over the lease term.

The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received.

Operating lease liabilities are recognized based on the present value of the lease payments not yet paid, discounted using the average borrowing rate of the Group's outstanding loans.

The lease assets for operating leases consist of the amount of the measurement of the lease liabilities and any prepaid lease payments. Operating lease expense is recognized on a straight-line basis over the lease term by adding interest expense determined using the effective interest method to the amortization of the operating lease right-of-use assets. Interest expense is determined using the effective interest method. The Group's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Lease expenses for lease payments are recognized on a straight-line basis over the lease term. For operating leases with a term of one year or less, the Group has elected not to recognize a lease liability or ROU asset on its consolidated balance sheet. Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(t) Leases*** (cont.)

The Group reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Group reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Group has elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows.

During the six months ended June 30, 2024 and 2025, there was a triggering event of negative cash flow that indicated the carrying amounts of the long-lived assets may not be recoverable. In accordance with ASC 360, with regard to the Group's long-lived assets, the Group performed an undiscounted cash flow analysis and concluded that the carrying value of the asset group was recoverable. Therefore, no impairment charges were recorded as of June 30, 2024 and 2025. Key assumptions utilized in the determination of fair value include discount rate, expected future cash flows and working capital requirements. While the Group believes the expectations and assumptions about the future are reasonable, they are inherently uncertain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(u) Income taxes***

The Group accounts for current income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the end of the reporting period.

The Group accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases ("Temporary differences").

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those Temporary differences are expected to be recovered or settled. Deferred tax is calculated at the tax rates that are expected to apply in the periods in which the asset or liability will be settled, based on rates enacted or substantively enacted at the end of the reporting period. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The provisions of ASC 740-10-25, "Accounting for Uncertainty in Income Taxes," prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Group believes there were no uncertain tax positions at December 31, 2024 and June 30, 2025, respectively.

Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group's uncertain tax positions and determining its provision for income taxes. The Group did not recognize any significant interest and penalties associated with uncertain tax positions for the the six months ended June 30, 2024 and 2025.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

  ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(v) Value added tax ("VAT")***

The Group is subject to VAT and related surcharges on revenues generated from providing services. Revenue from providing services and sales of products is generally subject to VAT at applicable tax rates, and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected tax payable. The Group reports revenue net of PRC's VAT for all the periods presented in the Interim Condensed Consolidated Statements of Operations and Comprehensive Income / (Loss).

The PRC VAT rate is 0%, 1%, 6% and 9% for taxpayers providing logistics services and 13% for product sales for the six months ended June 30, 2024 and 2025. The Notice of Ministry of Finance ("MOF") and State Administration of Taxation ("SAT") on the Adjustment to VAT Rates, promulgated on April 4, 2018 and effective as of May 1, 2018, adjusted the applicative rate of VAT. The deduction rates of 17% and 11% applicable to the taxpayers who have VAT taxable sales activities or imported goods are adjusted to 16% and 10%, respectively. For the export goods to which a tax rate of 17% was originally applicable and the export rebate rate was 17%, the export rebate rate is adjusted to 16%. For the export goods and cross-border taxable activities to which a tax rate of 11% was originally applicable and the export rebate rate was 11%, the export rebate rate is adjusted to 10%.

Pursuant to the Announcement on Relevant Policies for Deepening Value-Added Tax Reform, which was promulgated by MOF, SAT and the General Administration of Customs on March 20, 2019 and became effective on April 1, 2019, where (i) for VAT taxable sales or imports of goods originally subject to value-added tax rates of 16%, such tax rates shall be adjusted to 13%; (ii) for the exported goods originally subject to a tax rate of 16% and an export tax refund rate of 16%, the export tax refund rate shall be adjusted to 13%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(w) Earnings per share***

The Group computes earnings per Class A and Class B ordinary share in accordance with ASC 260-10 Earnings Per Share: Overall, using the two class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. The liquidation and dividend rights of the holders of the Company's Class A and Class B ordinary shares are identical, except with respect to voting. As the liquidation and dividend rights are identical, the net incomes are allocated on a proportionate basis.

Basic EPS is measured as net income / (loss) divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of December 31, 2024 and June 30, 2025, there were no dilutive shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(x) Statutory reserves***

The Group's PRC subsidiaries are required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Group is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by corresponding PRC subsidiaries in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital. This statutory reserve is not distributable in the form of cash dividends. The statutory reserve were RMB 434,047 and RMB 446,895 (US$62,428) as of December 31, 2024 and June 30, 2025, respectively.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(y) Concentration of risks***

 

&nbsp;&nbsp;&nbsp;&nbsp; *<u>Concentration of Credit Risks</u>*

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places its cash with financial institutions with high credit ratings and quality. As of December 31, 2024 and June 30, 2025, RMB 36,996,422 and RMB 30,143,886 (US$4,210,863) of the Group's cash were on deposit at financial institutions in the PRC, respectively.

The Group has a concentration of its account receivables and revenues with specific customers. As of December 31, 2024, one customer accounted for 19.7% of accounts receivable. As of June 30, 2025, one customer accounted for 12.5% of accounts receivable, respectively. For the six months ended June 30, 2024, one customer accounted for approximately 10.1% of the total revenue. For the six months ended June 30, 2025, two customers accounted for approximately 14.5% and 13.2% of the total revenue, respectively.

The Company conducts credit evaluations of customers, and generally does not require collateral or other security from its customers. The Company establishes an allowance for credit loss based upon estimates, factors surrounding the credit risk of specific customers and other information. The allowance amounts were immaterial for all periods presented.

The Group also has a concentration of its account payables and purchases with specific suppliers. As of December 31, 2024, one supplier accounted for 36.1% of the total accounts payable balance. As of June 30, 2025, three suppliers accounted for 22.0%, 20.8% and 17.0% of the total accounts payable balance, respectively. For the six months ended June 30, 2024, two suppliers accounted for 21.2% and 11.7% of the total purchases, respectively. For the six months ended June 30, 2025, two suppliers accounted for 29.6% and 10.7% of the total purchases, respectively.

 

&nbsp;&nbsp;&nbsp;&nbsp; *<u>Foreign Exchange Risk</u>*

The Groups' operations are primarily in China. The reporting currency is denominated in RMB. The Group is exposed to currency risk primarily through sales and purchases which give rise to receivables, payables and cash balances that are denominated in currencies other than the functional currency of the operations to which the transactions relate. Thus, revenues and results of operations may be impacted by exchange rate fluctuations between RMB and U.S. dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(z) Asset acquisition***

Referring to FASB ASC Topic 805-10-55-5, the Group applied two steps (including step 1, screen test and step 2, evaluation of process and input) in evaluating whether the acquisition is an asset acquisition or a business combination.

The Group measures and recognizes asset acquisitions that are not deemed to be business combinations based on the nature of the assets acquired. Goodwill is not recognized in asset acquisitions, any excess consideration transferred over the fair value of the net assets acquired is allocated on a relative fair value basis to the identifiable net assets.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(aa) Business combinations***

Business combinations are recorded using the acquisition method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of consideration paid, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive loss. Refer to Note 21 Business combinations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(ab) Recent accounting pronouncements***

In December 2023, the FASB issued ASU 2023-09, which is an update to Topic 740, Income Taxes. The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The amendments allow investors to better assess, in their capital allocation decisions, how an entity's worldwide operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows. The other amendments in this Update improve the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with U.S. Securities and Exchange Commission (SEC) Regulation S-X 210.4-08(h), Rules of General Application—General Notes to Financial Statements: Income Tax Expense, and (2) removing disclosures that no longer are considered cost beneficial or relevant. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this Update should be applied on a prospective basis. Retrospective application is permitted. The Group is in the process of evaluating the impact of the new guidance on its interim condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires that at each interim and annual reporting period public entities disclose (1) the amounts of purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions; (2) certain amounts that are already required to be disclosed under current GAAP in the same disclosure as the other disaggregation requirements; (3) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; and (4) the total amount of selling expenses and, in annual reporting periods, the definition of selling expenses. In January 2025, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027 for all public business entities. Early adoption is permitted. The amendments is applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. Early adoption is permitted. The Group is currently evaluating the impact on its interim condensed financial statements of adopting this guidance.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Group does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its interim condensed consolidated financial condition, results of operations, cash flows or disclosures.

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**3. ACCOUNTS RECEIVABLE, NET**

Accounts receivable consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **December 31,**<br>**2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Accounts receivable | 57799537 | 85898085 | 11999286 |
| Allowance for credit losses related to accounts receivable | (19102954) | (17910167) | (2501909) |
| **Total accounts receivable, net** | **38696583** | **67987919** | **9497377** |

---

The movement of allowance of doubtful accounts is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **December 31,**<br>**2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Beginning balance | 10196104 | 19102954 | 2668532 |
| Addition | 13678040 | - | - |
| Write off | (4764444) | (15117) | (2112) |
| Reverse | (6746) | (1177670) | (164511) |
| **Ending balance** | **19102954** | **17910167** | **2501909** |

---

The Group recorded bad debt expenses of RMB 6,974,931 and nil for the six months ended June 30, 2024 and 2025, respectively. For the six months ended June 30, 2025, the Group had written off RMB 15,117 (US$2,112) in bad debt, and made reversal of bad debt of RMB 1,177,670 (US$164,511). For the six months ended June 30, 2024, the Group had written off RMB 5,423 in bad debt, and made reversal of bad debt of RMB 9,023,644.

**4. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET**

Prepaid expenses and other current assets consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **December 31,**<br>**2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Advanced to suppliers (a) | 13824412 | 10238455 | 1430231 |
| Deposits (b) | 19287912 | 15306968 | 2138263 |
| Tax/expenses paid on behalf of clients | 1349635 | 1218322 | 170190 |
| Loan & interest receivable (c) | 4421999 | 4341999 | 606543 |
| Value added tax ("VAT") recoverables | 3961477 | 4560957 | 637130 |
| Other receivables (d) | 377511 | 115936 | 16195 |
|  | 43222946 | 35782637 | 4998552 |
| Allowance for credit losses related to prepaid expenses and other current assets | (9307172) | (7151590) | (999021) |
| **Total prepaid expenses and other receivables, net** | **33915774** | **28631047** | **3999531** |

---

**JAYUD GLOBAL LOGISTICS LIMITED**

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**4. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET** (Cont.)

&nbsp;&nbsp;&nbsp;&nbsp;(a) The balance mainly represents the advance payments made for international trading business, chartered airlines freight services.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The balance mainly represents the current refundable operational deposits for lease, chartered airline and cargo space reservation to vendors.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The balance represents the principal and interests of the loan to Shenzhen Expecs Technology Co., Ltd. ("Expecs"). In May 2022, the Group entered into a term sheet with an intention to acquire Expecs, which is engaged in the inspection assistance services for China Customs and customs brokerage service. The Group prepaid RMB3.6 million for the planned acquisition during 2022. In July 2023, the Group and Expecs signed a loan agreement and the prepayment became a one-year short term loan. In addition, the Group signed share purchase agreement in December 2023 and agreed to invest RMB4.5 million for 13.5% of the interest of Expecs before June 30, 2024. As of the date of the report, the Group has not made the investment payment yet. During the six months ended June 30, 2025, there was a substantial doubt of the recoverability of the loan to Expecs. Therefore, the Group recorded provision for credit losses against the full amount of the loan (including interests) of RMB 4,050,273 and RMB 4,341,999(US$606,543) during the six months ended June 30, 2024 and 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The balance mainly represents the prepaid rent and miscellaneous expenses and some advances to employees for routine business or travel needs.

The movement of allowance of doubtful accounts is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **December 31,**<br>**2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Beginning balance | 8973447 | 9307172 | 1300139 |
| Addition | 592178 | - | - |
| Reversal | (258453) | (2150204) | (300367) |
| Write off | - | (5378) | (751) |
| **Ending balance** | **9307172** | **7151590** | **999021** |

---

The Group recorded bad debt expenses of RMB 211,962 and nil for the the six months ended June 30, 2024 and 2025, respectively. For the six months ended June 30, 2024 and 2025, the Group had written off nil and RMB 5,378 (US$751) in bad debt, respectively.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**5. PROPERTY AND EQUIPMENT, NET**

Property and equipment, net consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **December 31,**<br>**2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Land | 912927 | 912927 | 127529 |
| Buildings | 13744221 | 13683458 | 1911471 |
| Motor vehicles | 1485841 | 1485841 | 207560 |
| Electronic equipment | 2116562 | 2265898 | 316528 |
| Machinery | 1238050 | 2488592 | 347637 |
| Other equipment | 1472880 | 1479526 | 206678 |
| Subtotal | 20970481 | 22316242 | 3117403 |
| Less: accumulated depreciation | (3564579) | (3985420) | (556732) |
|  | 17405902 | 18330822 | 2560671 |
| Less: impairment charges | (1748022) | (1748022) | (244185) |
| **Property and equipment, net** | **15657880** | **16582800** | **2316486** |

---

Depreciation expense was RMB 135,711 and RMB 420,840 (US$58,788) for the six months ended June 30, 2024 and 2025, respectively.

On October 25, 2024, the Group acquired a 95% equity interest in Yukon Flooring Bellaire LLC ("Yukon"), which owns a 28,320 sq.ft. warehouse and the related land located in Houston, Texas. The Group issued 2,219,828 Class A ordinary shares as consideration for the acquisition. Since the only assets of Yukon is the warehouse and the land, therefore, substantially all of the fair value concentrated in this group of assets. In addition, it does not have any employees or operations other than the ownership of the properties, the acquisition is considered an asset acquisition. The Group recorded the fair value of the asset as its initial carry amount. The fair value of the assets determined by a third party appraiser is RMB14,657,148 (US$2,039,000) at the date of the acquisition.

The Group identifies its property and equipment into two assets groups based on their location: US and PRC since they are independent to each other in terms of revenue generation and cash flows. During the six months ended June 30, 2025, there was no impairment indicator for US assets group since they were evaluated closed to year end of 2024. However, there was a triggering event of negative operating cash flows in PRC asset group level that indicated the carrying amounts of the Group's long-lived assets may not be recoverable. In accordance with ASC 360, with regard to the long-lived assets, the Group performed an undiscounted cash flow analysis and concluded that the carrying value of the asset group was recoverable. No impairment charges was recorded for the six months ended June 30, 2025 based on the management's assessment. For the six months ended June 30, 2024, the Group recognized an impairment charge within operating expenses of RMB 396,850 against the property and equipment by the amount by which the carrying value of the asset group's long-lived assets exceeded their estimated fair value. Key assumptions utilized in the determination of far value include expected future cash flows and working capital requirements. While the Group believe the expectations and assumptions about the future are reasonable, they are inherently uncertain.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**6. INTANGIBLE ASSETS, NET**

Intangible assets, net consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **December 31,**<br>**2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Software | 2400217 | 2654417 | 370801 |
| Less: accumulated depreciation | (313505) | (433516) | (60559) |
| **Intangible assets, net** | **2086712** | **2220901** | **310242** |

---

Amortization expense was RMB 106,311 and RMB 120,011 (US$16,765) for the six months ended June 30, 2024 and 2025, respectively.

**7. LONG TERM INVESTMENTS**

The Group's long-term investments include equity investments accounted for using the measurement alternative and investments accounted for using equity method.

*Equity investments accounted for using the measurement alternative*

On October 21, 2024, the Group acquired a 10% equity interest in LD Global Logistics Inc. ("LD"), a licensed customs broker based in Georgia, USA, by issuing 117,115 Class A ordinary shares as consideration.

In accordance with ASC 321, the Group elected to use the measurement alternative to measure such investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. As of June 30, 2025, the carrying amount of the Group's equity investments accounted for using the alternative measurement was RMB700,047 (US$97,791). During the six months ended June 30, 2025, the equity investment was remeasured and no impairment was recognized based on management's assessment. Total unrealized and realized gains and losses of equity securities without readily determinable fair values for the six months ended June 30, 2025 was nil.

*Equity investments accounted for using equity method* 

On October 21, 2024, the Group acquired a 20% equity interest in HYTX Warehouse No.3 LLC ("Warehouse No.3") by issuing 1,680,016 Class A ordinary shares as consideration to the original shareholders. Warehouse No.3 operates an approximate 70,000 square-foot warehouse located in California. The fair value of the consideration was RMB10,042,180 (US$1,402,813) based on the closing price at the acquisition date.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**7. LONG TERM INVESTMENT** (Cont.)

On October 21, 2024, the Group acquired a 49% stake in HYTX Warehouse No.10 LLC ("Warehouse No.10") by issuing 1,568,457 Class A ordinary shares as consideration to the original shareholders. Warehouse No.10 operates a 43,000 square-foot warehouse located in California. The fair value of the consideration was RMB 9,375,343 (US$1,309,662) based on the closing price at the acquisition date.

The Group recorded its share of income of RMB298,009 (US$41,629) from Warehouse No.3 and its share of loss of RMB 74,642 (US$10,427) from Warehouse No.10 for the six months ended June 30, 2025, respectively. For the six months ended June 30, 2025, no impairment losses were recorded for these equity investments accounted for using equity method.

None of equity method investments was considered individually material for the six months ended June 30, 2025. Considering the total equity investments accounted for using equity method is over 10% of the Group's total asset, the Group summarized the unaudited interim condensed financial information of the Group's equity method investments as a group below in accordance with Rule 4-08 of Regulation S-X:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended<br> June 30, <br> 2025** | **For the six months ended<br> June 30, <br> 2025** |
|  | **RMB** | **US$** |
| Operating data: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues | 11533574 | 1611149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 1527032 | 213314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 1392120 | 194468 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | 1337714 | 186868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to the Group | 223367 | 31203 |

---

**8. SHORT-TERM BORROWINGS**

Short-term borrowings represent amounts due to various banks normally maturing within one year. The principal of the borrowings is due at maturity. Accrued interest is due either monthly or quarterly. The bank borrowings are for working capital and capital expenditure purposes. The balance of short-term borrowings consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **December 31,**<br>**2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Industrial and Commercial Bank of China (a) | 6990000 | 10690000 | 1493309 |
| Bank of Ningbo (b) | 3507682 | 3563311 | 497766 |
| **Total** | **10497682** | **14253311** | **1991075** |

---

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**8. SHORT-TERM BORROWINGS** (Cont.)

(a) On March 15, 2020, JYD HQ initially entered into a loan agreement with Industrial and Commercial Bank of China ("ICBC") in the total amount of RMB3,000,000 with a half-year term with an interest rate of 4.65%. The loan is subject to repayment and is eligible for renewal every six month. In March 2024, the loan was fully repaid and JYD HQ entered into a new loan agreement in the total amount of RMB 3,000,000 (US$419,076) with one year term and interest rate of 4.25%, due in March 2025. The loan was further renewed for another year in March 2025 with interest rate of 3.9%. In June 2024, JYD DS entered into a series of loan agreements with ICBC in the total amount of RMB 3,000,000 (US$417,339) with interest rate of 4.25%, due in May 2025. During the year ended December 31, 2024, RMB10,000 (US$1,397) was repaid and RMB2,990,000 (US$417,679) was outstanding as of December 31, 2024. The loans were renewed for another year in May 2025 with interest rate of 3.8%. In July 2024, JYD BG entered into a loan agreements with ICBC in the total amount of RMB 1,000,000 (US$139,692) with interest rate of 4.25%, due in May 2025. The loan was fully repaid when it was due in 2025. In January 2025, JYD NJWL entered into a loan agreement with ICBC in the total amount of RMB4,700,000 (US$656,553) with an interest rate of 3.1%. The loan was guaranteed by JYD WLKJ, the legal representative of JYD NJWL and his wife. The loan is due in January 2026.

(b) On November 14, 2023, JYD NJWL entered into a one-year revolving credit agreement with Bank of Ningbo with the maximum amount of USD 1,000,000 with an interest rate of 6.5%. The loan was guaranteed by JYD WLKJ. During the six months ended June 30, 2024, RMB 11,743,710 was withdrawn and RMB 11,444,543 was repaid. The loan was fully repaid when it is due in November 2024. On November 15, 2024, JYD NJWL entered into a one-year revolving credit agreement with Bank of Ningbo with the maximum amount of USD 500,000 with an average interest rate of 6.23%. As of December 31, 2024, RMB3,507,682 was outstanding. During the six months ended June 30, 2025, RMB 10,063,845 (US$1,405,840) was withdrawn and RMB 9,993,674 (US$1,396,038) was repaid. As of June 30, 2025, RMB 3,563,311 (US$497,766) was outstanding.

Interest expenses were RMB 512,153 and RMB 304,779 (US 42,575) for short-term borrowings for the six months ended June 30, 2024 and 2025, respectively.

**9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES** 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **December 31,**<br>**2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| &nbsp;&nbsp;&nbsp;Accrued payroll and employee benefits | 4038505 | 2980760 | 416389 |
| &nbsp;&nbsp;&nbsp;Payable to third parties (a) | 7280590 | 1287929 | 179914 |
| &nbsp;&nbsp;&nbsp;Deposit payable | 1574810 | 1183879 | 165378 |
| &nbsp;&nbsp;&nbsp;Others | 543937 | 239275 | 33425 |
| **Total** | **13437842** | **5691843** | **795106** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) The balance mainly represents the payables for acquiring services for daily operations such as property fees, rent and utility bills as well as professional and consulting services as of December 31, 2024 and June 30, 2025.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**10. LOANS PAYABLE - A THIRD PARTY**

On December 13, 2023, the Company borrowed a loan from Boknap Logistics(HK) Ltd. of RMB 2,833,080 for 18 months with interest rate of 6%. In October 2024, the loan was fully repaid.

**11. LEASES**

Supplemental balance sheet information related to operating lease was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **June 30,** | **June 30,** |
|  | **December 31,**<br>**2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Right-of-use assets | 3739296 | 2867003 | 400497 |
| Less: impairment | (1857761) | (634377) | (88617) |
| **Right-of-use assets** | **1881535** | **2232626** | **311880** |
| Operating lease liabilities – current | 812669 | 1151799 | 160897 |
| Operating lease liabilities – non-current | 1898004 | 1647201 | 230101 |
| **Total operating lease liabilities** | **2710673** | **2799000** | **390998** |

---

The movement of impairment of right-of-use assets is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | | **December 31,** | **December 31,** |
|  | **December 31,**<br>**2024** | **2024** | **2024** |
|  | **RMB** | **RMB** | **US$** |
| Beginning balance | 3244676 | 1857761 | 259515 |
| Derecognition | (1386915) | (1223384) | (170898) |
| **Ending balance** | **1857761** | **634377** | **88617** |

---

The weighted average remaining lease terms and discount rates for the operating lease as of June 30, 2025 were as follows:

---

| | |
|:---|:---|
| Remaining lease term and discount rate: |  |
| Weighted average remaining lease term (years) | 3.53 |
| Weighted average discount rate | 3.98% |

---

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**11. LEASES** (Cont.)

A summary of lease expenses recognized in the consolidated statements of operations for the six months ended June 30, 2024 and 2025 and supplemental cash flow information related to operating leases were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For six months ended June 30,** | **For six months ended June 30,** | **For six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Lease expense** |  |  |  |
| Operating lease expense - third party | 2058621 | 408178 | 57019 |
| Short-term lease expense | 7615047 | 10642261 | 1486640 |
| Sublease income (1) | (3056058) | (6302264) | (880377) |
| **Total lease expense** | **6617610** | **4748175** | **663282** |
| **Other information** |  |  |  |
| Cash paid for operating leases | 3003868 | 544790 | 76103 |
| Right-of-use assets obtained in exchange for operating new lease liabilities | 5229722 | 704089 | 98356 |

---

---

| | |
|:---|:---|
| \* (1) | For the six months ended June 30, 2024, the Group incurred sublease income of RMB 3,056,058, and sublease cost of RMB 2,913,502. For the six months ended June 30, 2025, the Group incurred sublease income of RMB 6,302,264 (US$880,377), and sublease cost of RMB 5,054,269 (US$706,042). |

---

During the six months ended June 30, 2024 and 2025, the Group incurred total operating lease expenses of RMB 6,617,610 and RMB 4,748,175 (US$663,282), respectively.

The Company recognized a lease termination loss of RMB 310,673 and gain of RMB 107,025 (US$14,951), which is included in Lease termination loss/income on the Interim Condensed Consolidated Statement of Operations and Comprehensive Income / (Loss) for the six months ended June 30, 2024 and 2025, respectively, related to the early termination of warehouse and offices.

The following is a schedule of future minimum payments under the Group's operating leases as of June 30, 2025:

---

| | | |
|:---|:---|:---|
| **Year** | **Amounts** | **Amounts** |
|  | **RMB** | **US$** |
| Remainder of 2025 | 666336 | 93082 |
| 2026 | 1233085 | 172252 |
| 2027 | 459117 | 64135 |
| 2028 | 272250 | 38031 |
| 2029 | 191100 | 26695 |
| Thereafter | 270726 | 37819 |
| **Total lease payments** | **3092614** | **432014** |
| Less: imputed interest | 293614 | 41016 |
| **Total operating lease liabilities, net of interest** | **2799000** | **390998** |

---

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**12. LONG-TERM BORROWING**

Long-term borrowing represents the amount due to various banks normally maturing over one year. Accrued interest is due either monthly or quarterly. The bank borrowings are for working capital and capital expenditure purposes. In December 2022, JYD SM entered into a loan agreement with Postal Savings Bank of China in the total amount of RMB5,000,000 with an interest rate of 4.15%. The loan was guaranteed by Shenzhen SME Financing Guarantee Co., LTD., a third party financial guarantee company, and shareholders of the Group (Geng Xiaogang and Xiaohua Jia). In December 2024, the loan was fully repaid when it was due.

In December 2024, JYD HQ entered into a three-year revolving credit agreement with China Construction Bank Corporation Shenzhen Branch in the total amount of RMB4,000,000 (US$558,768) with an interest rate of 3.1%. The loan was guaranteed by the shareholders of the Group (Geng Xiaogang and Jia Xiaohua). According to the loan agreement, RMB 40,000(US$5,588) will be paid in December 2025 and 2026, and remaining balance of RMB 3,920,000 (US$547,593) will be paid at the end of the loan term. No cash was withdrawn under this agreement for the year ended December 31, 2024. RMB4,000,000 (US$558,768) was withdrawn and outstanding as of June 30, 2025.

Interest expenses were RMB 90,188 and RMB 56,333 (US 7,869) for long-term borrowings for the six months ended June 30, 2024 and 2025, respectively.

**13. TAXATION**

 ****

***Cayman Islands***

The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, these entities are not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholding tax in the Cayman Islands.

***Hong Kong***

Entities incorporated in Hong Kong are subject to profits tax in Hong Kong at the rate of 16.5%. According to Tax (Amendment) (No. 3) Ordinance 2018 published by Hong Kong government, effective April 1, 2018, under the two-tiered profits tax rates regime, the profits tax rate for the first HKD 2 million of assessable profits will be lowered to 8.25% (half of the rate specified in Schedule 8 to the Inland Revenue Ordinance (IRO)) for corporations. The Group was not subject to Hong Kong profit tax for any period presented as it did not have assessable profit during the periods presented.

***PRC***

Generally, the Company's subsidiaries that are considered PRC resident enterprises under PRC tax law, are subject to enterprise income tax on their worldwide taxable income as determined under PRC tax laws and accounting standards at a rate of 25%.

As of December 31, 2024 and June 30, 2025, JYD SZGJHY, JYD SM, JYD XC, JYD BG, JYD XYX, JYD NJWL, JYD DS, JYD SHWL, JYD YCKJ, JNT, JYD EZWLKJ, and JYD EZGJ were recognized as small low-profit enterprises, and JYD WLKJ and JYD RHTD was recognized as a general taxpayer whose applicable tax rate is 25.0%. From January 1, 2023 to December 31, 2027, 25% of the first RMB 3.0 million of the assessable profit before tax is subject to the tax rate of 20% for the Company's subsidiaries that are qualified as "Small Low-profit Enterprises".

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**13. TAXATION** (Cont.)

***PRC*** (Cont.)

The income tax provision consisted of the following components:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Current income tax expenses | 253886 | 45240 | 6320 |
| Deferred income tax benefit | (926279) | (632118) | (88302) |
| **Total income tax benefit** | **(672393)** | **(586878)** | **(81982)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Loss before provision for income taxes is attributable to the following geographic locations: |  |  |  |
| PRC | (17599574) | 9781017 | 1366331 |
| Foreign | (2386953) | (8239927) | (1151052) |
| Total Loss before Income Taxes | (19986527) | 1541090 | 215279 |

---

Reconciliation between the provision for income taxes computed by applying the PRC EIT rate of 25% to income before income taxes and the actual provision of income taxes is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended<br> June 30,** | **For the six months ended<br> June 30,** |
|  | **2024** | **2025** |
| PRC statutory income tax rate | 25.0% | 25.0% |
| Impact of different tax rates in other jurisdictions | (3.1)% | 113.4% |
| Effect of preferential tax rate | (10.4)% | 47.7% |
| Non-deductible items | 1.4% | 20.1% |
| Effect of government subsidies | 0.0% | (347.3)% |
| Change in valuation allowance | (9.5)% | 103.1% |
| Effective tax rate | 3.4% | (38.0)% |

---

The effect on government subsidies mainly resulted from the book-tax difference of subsidies received from the government through its chartered airline service provider. The government subsidies are not taxable under PRC tax regulation.

As of December 31, 2024 and June 30, 2025, the significant components of the deferred tax assets and deferred tax liability were summarized below:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | **December 31,<br> 2024** | **June 30, <br> 2025** | **June 30, <br> 2025** |
|  | **RMB** | **RMB** | **US$** |
| Deferred tax assets: |  |  |  |
| Net operating loss carried forward | 17516642 | 20443839 | 2855842 |
| Bad debt provision | 3911723 | 3018366 | 421642 |
| Impairment charges | 1064406 | 1065708 | 148871 |
| Lease liability | 646850 | 585070 | 81730 |
| Less: Valuation allowance | (18956128) | (20326848) | (2839500) |
| Deferred tax assets, net of valuation allowance | 4183493 | 4786135 | 668585 |
| Net off against deferred tax liabilities | (450473) | (420997) | (58810) |
| **Net deferred tax assets** | **3733020** | **4365138** | **609775** |

---

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**13. TAXATION** (Cont.)

***PRC*** (Cont.)

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | **December 31,<br> 2024** | **June 30, <br> 2025** | **June 30, <br> 2025** |
|  | **RMB** | **RMB** | **US$** |
| Deferred tax liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Right of use assets | 450473 | 420997 | 58810 |
| &nbsp;&nbsp;&nbsp;**Total deferred tax liabilities** | 450473 | 420997 | 58810 |
| &nbsp;&nbsp;&nbsp;Net off against deferred tax assets | (450473) | (420997) | (58810) |
| &nbsp;&nbsp;&nbsp;**Net deferred tax liabilities** | - | - | - |

---

The movement of valuation allowance is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | **December 31,<br> 2024** | **June 30, <br> 2025** | **June 30, <br> 2025** |
|  | **RMB** | **RMB** | **US$** |
| Beginning balance | 12738069 | 18956128 | 2648022 |
| Addition | 6205515 | 1382374 | 193106 |
| Foreign exchange impact | 12544 | (11654) | (1628) |
| **Ending balance** | **18956128** | **20326848** | **2839500** |

---

Valuation allowances have been provided on the deferred tax assets where, based on all available evidence, it was considered more likely than not that some portion of the recorded deferred tax assets will not be realized in future periods.

Total net operating losses carryforwards of the Group's PRC enterprises is RMB119.2 million and RMB131 million as of December 31, 2024 and June 30, 2025, respectively. As of June 30, 2025, net operating loss carryforwards from PRC will expire in calendar years 2026 through 2030, if not utilized. Net operating loss from Hong Kong of RMB 5.5 million can be carried forward indefinitely.

The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2024 and June 30, 2025, the Group did not have any unrecognized uncertain tax positions and the Group does not believe that its unrecognized tax benefits will change over the next twelve months. For the six months ended June 30, 2024 and 2025, the Group did not incur any interest and penalties related to potential underpaid income tax expenses. As of June 30, 2025, the tax years ended December 31, 2019 through 2024 for the Group's subsidiaries in the PRC are generally subject to examination by the PRC tax authorities.

**14. TAX PAYABLE**

The Group's taxes payable consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** |
|  | **December 31,<br> 2024** | **June 30, <br> 2025** | **June 30, <br> 2025** |
|  | **RMB** | **RMB** | **US$** |
| Income tax payable | 231807 | 185004 | 25844 |
| VAT and other taxes payable | 11466502 | 11321856 | 1581574 |
| **Total taxes payable** | **11698309** | **11506860** | **1607418** |

---

Due to the invalidation of invoices from a supplier of JYD SM by the tax authorities, the Group accrued RMB 10.8 million (approximately US$1.5 million) VAT tax payable as of Dec 31, 2024. As of the date that the Interim Condensed Consolidated Financial Statements were available to be issued, JYD SM is coordinating with the tax authorities to properly resolve this matter.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**15. EQUITY**

**Ordinary shares**

The Company's authorized share capital comprises of (i) 480,000,000 Class A ordinary shares of par value US$0.0001 each and (ii) 20,000,000 Class B ordinary shares of par value US$0.0001 each. On June 10, 2022, the Company issued 9,420,000 Class A ordinary shares and 6,409,600 Class B ordinary shares. On September 6, 2022, the Company issued another 1,370,400 Class A ordinary shares which issuance was considered as being part of the reorganization of the Group and was retroactively applied as if the transaction occurred at the beginning of the period presented.

On September 7, 2022, the Company granted 800,000 Class A ordinary shares to its financial advisory consultant as the consideration in the form of bonus with a performance condition of a successful initial public offering ("IPO") under the professional financial advisory services originally agreed in 2022. Granted shares shall be subject to a right of repurchase by the Company for nil consideration if the Company fails to achieve a successful IPO.

On September 9, 2022, the Company entered into a share subscription agreement with various third party investors for 2,000,000 Class A ordinary shares at the consideration of $5,000,000. The Company received the consideration in January and February 2023.

On February 16, 2023, Jayud implemented a 1 for 1.25 reverse share split of its ordinary shares under Cayman Islands law (the "Reverse Share Split"). As a result of the Reverse Share Split, the total of 13,590,400 issued and outstanding Class A ordinary shares prior to the Reverse Share Split was reduced to a total of 10,872,320 issued and outstanding Class A ordinary shares and the total of 6,409,600 issued and outstanding Class B ordinary shares prior to the Reverse Share Split was reduced to a total of 5,127,680 issued and outstanding Class B ordinary shares. The Reverse Share Split maintained existing shareholders' percentage ownership interests in Jayud. The Reverse Share Split also increased the par value of Jayud's ordinary shares from $0.0001 to $0.000125 and decreased the number of its authorized shares from 500,000,000 to 400,000,000, which are divided into 384,000,000 Class A ordinary shares and 16,000,000 Class B ordinary shares.

On March 16, 2023, the Company implemented a 1 to 1.25 forward share split of its ordinary shares under Cayman Islands Law, or the Forward Share Split. As a result of the Forward Share Split, the total of 10,872,320 issued and outstanding Class A ordinary shares prior to the Forward Share Split was increased back to a total of 13,590,400 issued and outstanding Class A ordinary shares, and the total of 5,127,680 issued and outstanding Class B ordinary shares prior to the Forward Share Split was increased back to a total of 6,409,600 issued and outstanding Class B ordinary shares. The Forward Share Split maintained existing shareholders' percentage ownership interests in Jayud. The Forward Share Split also reduced the par value of Jayud's ordinary shares from $0.000125 back to $0.0001, and increased the number of authorized shares from 400,000,000 back to 500,000,000, which are divided into 480,000,000 Class A ordinary shares and 20,000,000 Class B ordinary shares.

In April 2023, the Company completed initial public offering and listed its Class A ordinary shares on the Nasdaq Capital Market under the symbol "JYD." The Company raised approximately US$4.86 million in net proceeds at US$4 per share from the issuance of 1,250,000 new Class A ordinary shares from the initial public offering and 102,223 new Class A ordinary shares from partial exercise of over-allotment option by its underwriter after deducting underwriting discounts, commissions and expenses.

In July and September 2024, Geng Xiaogang, the controlling shareholder of the Group, converted total of 1,000,000 Class B shares into Class A shares.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**15. EQUITY** (Cont.)

**Ordinary shares** (Cont.)

On September 13, 2024, the Group entered into Securities Purchase Agreements (the "Securities Purchase Agreement") with two accredited investors (the "Purchasers"), pursuant to which the Group received proceeds (net of issuance cost) of RMB5,728,717 (US$796,939) in consideration of the issuance of Convertible Debentures (the "Debenture") in the principal amount of US$800,000. The transactions contemplated under the Securities Purchase Agreements closed in September and October 2024. The Debentures mature on the first-year anniversary of the issuance of the Debenture, bears interest at a rate of 6% per annum to the extent such interest is paid in cash or Class A ordinary shares of the Group, beginning after its original date of issuance at a conversion price at 52% of average of the Volume-Weighted Average Price ("VWAP") for the five (5) consecutive trading days that is immediately prior to the original issue date, or 52% of the lowest daily VWAP price in the last five (5) trading days immediately prior to conversion. The principal and accumulated interests were converted into 2,069,382 shares of Class A ordinary shares of the Group on October 22, 2024.

In October 2024, the Group entered into Share Purchase Agreements (the "Purchase Agreements") with certain accredited investors named therein (the "Purchasers"), pursuant to which the Company issued in a private placement an aggregate of 14,793,335 Class A ordinary shares to the Purchasers at a purchase price of US$0.45 per share. The Group received proceeds (net of issuance cost) of RMB47,469,070 (US$6,631,055).

In October 2024, the Group issued 17,261 shares as compensation to its investor relation service provider with cash value of US$12,000.

From October 19, 2024 to October 26, 2024, the Group acquired 20% equity interests in HYTX WAREHOUSE NO.3 LLC, 49% equity interests in HYTX WAREHOUSE NO.10 LLC, 95% of YUKON FLOORING BELLAIRE, LLC, and 20% of HYTX WAREHOUSE NO.11 LLC, four warehousing companies in the United States, with 1,680,016 share, 1,568,457 shares, 2,219,828 shares, and 1,704,851 shares of Class A ordinary shares of the Group as consideration, respectively. Due to the Share acquisition termination agreement ("Termination agreement") with the original selling shareholder of HYTX No. 11 LLC signed in December 2024, 1,704,851 Class A ordinary shares was canceled by the Group.

On October 21, 2024, the Group acquired 10% equity interest in LD Global Logistics Inc. ("LD") to LD, a licensed customs broker based in the United States, by issuing 117,115 Class A ordinary shares as consideration.

On December 3, 2024, Jayud Global Logistics Limited (the "Company") entered into a Share Purchase Agreement (the "Share Purchase Agreement") with certain accredited investors named therein (the "Investors"), pursuant to which the Company agreed to sell and issue 50,000,000 Class A ordinary shares to the Investors at a purchase price of US$0.20 per share, in a registered direct offering (the "Offering"). The Company received proceeds (net of issuance cost) of RMB70,194,498 (US$9,805,618).

On April 25, 2023, the Company issued warrants to its underwriter to purchase up to 37,500 Class A ordinary shares. The warrants have an exercise price of US$4.00 per share and may be exercised on a cashless basis. The warrants are exercisable beginning September 27, 2023 and ending March 31, 2028. The value of the warrant was evaluated by a third party appraiser, and amounted to RMB360,874 (US$50,411) and included in additional paid in capital as of December 31, 2024. The warrant was fully exercised by the underwriter on April 1, 2025, which resulted in 18,679 shares was issued to the underwriter based on the market price of the shares on April 1, 2025.

88,408,017 and 88,426,696 Class A Ordinary shares were issued and outstanding as of December 31, 2024 and June 30, 2025, respectively; 5,409,600 Class B Ordinary shares were issued and outstanding as of December 31, 2024 and June 30, 2025.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**15. EQUITY** (Cont.)

**Capital injection by non-controlling shareholder**

In September 2024, the non-controlling shareholder of FASTFLY made a capital injection of RMB29,174 (US$4,075) to FASTFLY.

In July and October 2024, the non-controlling shareholder of JNT made a capital injection of RMB55,000 (US$7,683) to JNT. During the six months ended June 30, 2025, the non-controlling shareholder further made a capital injection of RMN 151,000 (US$21,094) to JNT.

 **Dividend**

In February and March 2022, JYD DS, JYD WLKJ, and HQ declared dividend to their shareholders with total amount of RMB 18,770,000. Out of the total dividend declared, RMB 6,839,000 was inter-group dividend, and RMB 11,931,000 was to individual shareholders. As of December 31, 2024 and June 30, 2025, RMB 6,937,500 (US$969,114) was outstanding and included in the other payables to shareholders.

**Restricted net assets**

A significant portion of the Group's operations are conducted through its PRC (excluding Hong Kong) subsidiaries, the Company's ability to pay dividends is primarily dependent on receiving distributions of funds from subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations, and after it has met the PRC requirements for appropriation to statutory reserves. The Group is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC ("PRC GAAP"). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity's registered capital. Appropriations to the surplus reserve are made at the discretion of the Board of Directors. Paid-in capital of subsidiaries included in the Company's consolidated net assets are also non-distributable for dividend purposes.

As a result of these PRC laws and regulations, the Company's PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. As of June 30, 2025, net assets restricted in the aggregate, which include paid-in capital, additional paid-in capital and statutory reserve funds of the Company's subsidiaries, that are included in the Company's interim consolidated net assets were approximately RMB 1.8 million (US$0.3 million), respectively.

**16.** **NON-CONTROLLING INTERESTS**

In January 2024, the Group acquired a 51% equity interest of Qingdao Oranda Supply Chain Management Co., Ltd. ("Oranda"). On October 10, 2024, the Group and Oranda agreed to terminate the equity purchase agreement, and the 51% equity interests acquired was returned to the original owner of Oranda, which lead a RMB416,179 reverse in non-controlling interest. No consideration was given to the original owner pursuant to the termination agreement and all parties were relieved of their obligations as a result of the termination. Therefore, there was no non-controlling interest from Oranda as of December 31, 2024.

In January 2024, the Group acquired a 51% equity interest of Shenzhen Jiniu International Logistics Co., Ltd. ("JNT"). Since the Group retains control of JNT, the investment from Mr. Guojun Niu was accounted for as non-controlling interest.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**16.** **NON-CONTROLLING INTERESTS** (Cont.)

In April 2024, the Group and Mr. Guojun Niu acquired a 51% and 49% equity interest of HK (FASTFLY) International Logistics Co., Limited ("FASTFLY"), respectively. Since the Group retains control of FASTLY, the investment from Mr. Guojun Niu was accounted for as non-controlling interest.

In May 2024, the Group acquired a 51% stake in HYTX Warehouse Inc. ("HYTX"). Since the Group retains control of HYTX, the investment from HYTX INC. was accounted for as non-controlling interest. On March 18, 2025, the Group and HYTX agreed to terminate the equity purchase agreement, and the 51% equity interests acquired was returned to the original owner of HYTX. Non-controlling interest of RMB18,457 was reversed . No consideration was given to the original owner pursuant to the termination agreement and all parties were relieved of their obligations as a result of the termination. Therefore, there was no non-controlling interest from Oranda as of June 30, 2025.

In September 2024, JYD Ezhou set up Ezhou Jayud International Logistics Co., Ltd. (" Ezhou GJHY") with Shenzhen Qinsheng Enterprise Management Consulting LLP (" QinSheng") and obtained 51% equity interest of Ezhou GJHY. Since the Group retains control of Ezhou GJHY, the investment from QinSheng was accounted for as non-controlling interest.

In October 2024, the Group acquired a 95% equity interest in Yukon Flooring Bellaire LLC ("YFB"), which owns a 28,320 sq.ft. warehouse and the related land located in Houston, Texas. The Group issued 2,219,828 Class A ordinary shares, equivalent to RMB14,657,148 as consideration.. Since the Group retains control of YFB, the investment from minority was accounted for as non-controlling interest.

As of December 31, 2024 and June 30, 2025, the balance of non-controlling interest is as following.

---

| | | | |
|:---|:---|:---|:---|
| **Entity** | **As of<br> December 31,<br> 2024** | **As of<br> June 30, <br> 2025** | **As of<br> June 30, <br> 2025** |
|  | **RMB** | **RMB** | **US$** |
| TYPHK | (169385) | (174100) | (24320) |
| JYD YCKJ | (12513131) | (12696570) | (1773611) |
| JYD RHTD | 1188534 | 2041147 | 285132 |
| JNT | (156621) | (88568) | (12372) |
| Ezhou GJHY | - | (46166) | (6449) |
| FASTFLY | 15735 | 13797 | 1927 |
| HYTX | (18457) | - | - |
| YFB | (762237) | 748505 | 104560 |
| **Total** | **(10891088)** | **(10201955)** | **(1425133)** |

---

**17. SEGMENT REPORTING**

In 2024, the Group acquired interests in three companies in the United States. Because of the acquisition, the Group operated and reviewed its performance in two segments for the six months ended June 30, 2024 and 2025: (i) PRC and Hong Kong, and (ii) U.S.A. Furthermore, the Group's chief operating decision maker evaluates performance based on each reportable segment's revenues, costs, gross profit.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**17. SEGMENT REPORTING** (Cont.)

The following table presents selected financial information relating to the Group's segments for the six months ended June 30, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **PRC & HK** | **USA** | **Corporate and Unallocated** | **Elimination** | **Consolidated** | **Consolidated** |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **US$** |
| Freight forwarding services | 157747090 | 4087698 | - | (3914698) | 157920090 | 22060192 |
| Supply chain management | 120337503 | - | - | (66315) | 120271188 | 16800937 |
| Other value-added services | 2437027 | - | - | - | 2437027 | 340433 |
| Total revenues | 280521620 | 4087698 | - | (3981013) | 280628305 | 39201562 |
| Cost of revenues | (256098146) | (4072865) | - | 3915873 | (256255138) | (35796823) |
| **Gross profit/(loss)** | **24423474** | **14833** | **-**  | **(65140)** | **24373167** | **3404739** |
| **Operating expenses:** |  |  |  |  |  |  |
| General and administrative expenses | (9071298) | (613849) | (6101194) | 67387 | (15718954) | (2195814) |
| Selling expenses | (9082773) | - | - | - | (9082773) | (1268792) |
| Provision for doubtful accounts, net | 3407089 | (124628) | - | - | 3282461 | 458534 |
| Lease termination gain | 107025 | - | - | - | 107025 | 14951 |
| Research and development expenses | (625657) | - | - | - | (625657) | (87399) |
| **Total operating expenses** | **(15265614)** | **(738477)** | **(6101194)** | **67387** | **(22037898)** | **(3078520)** |
| **Operating profit /(loss)** | **9157860** | **(723644)** | **(6101194)** | **2247** | **2335269** | **326219** |
| **Other income/(expenses):** |  |  |  |  |  |  |
| Other income, net | 527424 | - | - | - | 527424 | 73677 |
| Foreign exchange loss, net | (19033) | (1996) | (688025) | (713727) | (1422781) | (198751) |
| Interest income (expenses), net | 122141 | (1275) | (19688) | - | 101178 | 14134 |
| **Total other income / (expenses), net** | **630532** | **(3271)** | **(707713)** | **(713727)** | **(794179)** | **(110940)** |
| **Income / (loss) before income tax expense** | **9788392** | **(726915)** | **(6808907)** | **(711480)** | **1541090** | **215279** |
| **Share of income of equity method investees, net of tax of nil** | - | 180815 | - | - | 180815 | 25258 |
| **Segment assets** | **170649992** | **15457513** | **3296320** | **-**  | **189403825** | **26458220** |

---

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**17. SEGMENT REPORTING** (Cont.)

The following table presents selected financial information relating to the Group's segments for the six months ended June 30, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **PRC & HK** | **USA** | **Corporate and<br> Unallocated** | **Elimination** | **Consolidated** |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| Freight forwarding services | 163095779 | 3104500 | - | (2856405) | 163343874 |
| Supply chain management | 105500404 | - | - | - | 105500404 |
| Other value-added services | 1763231 | - | - | - | 1763231 |
| Total revenues | 270359414 | 3104500 | - | (2856405) | 270607509 |
| Cost of revenues | (273774502) | (2512274) | - | 2967200 | (273319576) |
| **Gross (loss) /profit** | **(3415088)** | **592226** | **-**  | **110795** | **(2712067)** |
| **Operating expenses:** |  |  |  |  |  |
| General and administrative expenses | (8850059) | (570746) | (2424171) | - | (11844976) |
| Selling expenses | (3850752) |  | - | - | (3850752) |
| Provision for doubtful accounts, net | 1843490 | (2615) | - | - | 1840875 |
| Impairment charges on long-lived assets | (963867) | - | - | - | (963867) |
| Lease termination loss | (310673) | - | - | - | (310673) |
| Research and development expenses | (502278) | - | - | - | (502278) |
| **Total operating expenses** | **(12634139)** | **(573361)** | **(2424171)** | **-**  | **(15631671)** |
| **Operating (loss) /profit** | **(16049227)** | **18865** | **(2424171)** | **110795** | **(18343738)** |
| **Other income/(expenses):** |  |  |  |  |  |
| Other income, net | 80754 | (6272) | - | - | 74482 |
| Foreign exchange loss, net | (1721464) | - | - | 1256674 | (464790) |
| Interest expenses, net | (1219232) | (3215) | (30034) | - | (1252481) |
| **Total other (expenses) / income, net** | **(2859942)** | **(9487)** | **(30034)** | **1256674** | **(1642789)** |
| **(Loss) / Income before income tax expense** | **(18909169)** | **9378** | **(2454205)** | **1367469** | **(19986527)** |
| **Segment assets** | **91903596** | **1136702** | **310450** | **-**  | **93350748** |

---

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**18. RELATED PARTY BALANCES AND TRANSACTIONS**

<u>Related parties</u>

---

| | |
|:---|:---|
| **Related Parties** | **Relationship** |
| Mr. Geng Xiaogang | Founder, chief executive officer of the Company |
| Ms. Jia Xiaohua | Immediate family members of Founder and the management of the Group |
| Winpass Logistics (HK) Co., Limited | 100% controlled by Ms. Jia Xiaohua |
| Cargo Link Logistics HK Company Limited | Owns 33% of shares of Sky Pacific Logistics HK Company Limited |
| Xi'an Renrui Hydroacoustic Technology Engineering Co., Ltd | 40% owned by Supervisor of JYD SXGYL |
| Xi'an Rochester Electronic Technology Co., Ltd | 50% owned by Supervisor of JYD SXGYL |
| LD Global Logistics Inc | 10% owned by JYD US |
| HYTX Logistics LLC | Owns 49% of HYTX Warehouse Inc. |
| HYTX Warehouse No. 3 LLC | 20% owned by JYD US |
| HYTX Warehouse No. 10 LLC | 49% owned by JYD US |
| Bin Li | Supervisor of JYD SXGYL |
| Key management and their immediate family members | The Group's key management and their immediate family members |

---

Accounts receivable - related parties

As of December 31, 2024 and June 30, 2025, accounts receivable from related parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Nature** | **As of<br> December 31, <br> 2024** | **As of <br> June 30, 2025** | **As of <br> June 30, 2025** |
|  |  | **RMB** | **RMB** | **US$** |
| Xi'an Renrui Hydroacoustic Technology Engineering Co., Ltd ("Renrui") | International trading | 173382 | - | - |
| The other logistics service customers | Logistic services | 76543 | 451609 | 63086 |
| &nbsp;&nbsp;&nbsp;**Total accounts receivable - related parties, net** |  | **249925** | **451609** | **63086** |

---

<u>Prepaid expenses - related parties</u>

As of December 31, 2024 and June 30, 2025, prepaid expenses from related parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Nature** | **As of<br> December 31,<br> 2024** | **As of <br> June 30,<br> 2025** | **As of <br> June 30,<br> 2025** |
|  |  | **RMB** | **RMB** | **US$** |
| Winpass Logistics (HK) Co., Limited ("Winpass") | Logistic services | 3227663 |  |  |
| Cargo Link Logistics HK Company Limited ("Cargo Link") | Logistic services | 3468341 |  |  |
|  |  | 6696004 |  |  |

---

As of December 31, 2024, prepaid expenses to Winpass and Cargo Link represent the prepayments for chartered airline freight services to enhance the Group's service to USA and South Asia market. The prepayments to Winpass were fully refunded during the six months ended June 30, 2025 due to the change of market for chartered airline services. The prepayments to Cargo link were fully applied against the service charges incurred during the six month ended June 30, 2025.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**18. RELATED PARTY BALANCES AND TRANSACTIONS** (Cont.)

Other receivable - related parties

As of December 31, 2024 and June 30, 2025, other receivable from related parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Nature** | **As of<br> December 31, <br> 2024** | **As of <br> June 30, 2025** | **As of <br> June 30, 2025** |
|  |  | **RMB** | **RMB** | **US$** |
| Winpass Logistics (HK) Co., Limited ("Winpass") | Deposit and prepayment for logistic services | 8725488 | 60097 | 8395 |
| Cargo Link Logistics HK Company Limited ("Cargo Link") | Deposit for logistic services | 11547932 | 11358881 | 1586746 |
|  |  | 20273420 | 11418978 | 1595141 |

---

As of December 31, 2024 and June 30, 2025, the net amount collected by Winpass on behalf of Jayud for logistics service was RMB64,539 and RMB60,097 (US$8,395). For the six months ended June 30, 2024, Winpass paid on behalf of Jayud for logistics services acquired abroad in a total amount of RMB 1,468,748 and collected on behalf of Jayud for logistics services provided abroad in a total amount of RMB 1,729,262. For the six months ended June 30, 2025, Winpass paid on behalf of Jayud for logistics services acquired abroad in a total amount of RMB 841,512 (US$117,553) and collected on behalf of Jayud for logistics services provided abroad in a total amount of RMB 837,069.70 (US$116,932). In addition, in 2024, the Group paid to Winpass deposits of RMB 8,660,949 for chartered airline services. The deposits was fully refunded during the six months ended June 30, 2025 due to the change of market for chartered airline services.

As of December 31, 2024 and June 30, 2025, the deposits paid by the Group to Cargo Link represent the deposits made for chartered airline services from Hongkong to South Asia.

<u>Loans receivable - related parties</u>

As of December 31, 2024 and June 30, 2025, loans receivable from related parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Nature** | **As of<br> December 31, <br> 2024** | **As of <br> June 30, 2025** | **As of <br> June 30, 2025** |
|  |  | **RMB** | **RMB** | **US$** |
| HYTX Warehouse No. 3 LLC (" No. 3 LLC) | Loan |  | 235236 | 32861 |
| HYTX Warehouse No. 10 LLC (" No. 10 LLC) | Loan |  | 700670 | 97878 |
|  |  |  | 935906 | 130739 |

---

In January 2025, in order to fulfill the operating needs of No. 3 LLC and No. 10 LLC, the shareholders of No. 3 LLC and No. 10 LLC agreed to make loans to each company based on their share of interests. As a result, the Group signed a one-year loan agreement with No. 3 LLC and No. 10 LLC, respectively, with a total amount of RMB1,004,841 (US$140,368). The loans bear no interest, and due in January 2026. During the six months ended June 30, 2025, RMB 68,935 (US$9,630) was repaid to the Group, and RMB 935,906 (US$130,739) was outstanding as of June 30, 2025.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**18. RELATED PARTY BALANCES AND TRANSACTIONS** (Cont.)

<u>Accounts payable - related parties</u>

As of December 31, 2024 and June 30, 2025, accounts payable to related parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Nature** | **As of<br> December 31, <br> 2024** | **As of <br> June 30, 2025** | **As of <br> June 30, 2025** |
|  |  | **RMB** | **RMB** | **US$** |
| Winpass Logistics (HK) Co., Limited | Logistic services | - | 204988 | 28635 |
| Cargo Link Logistics HK Company Limited | Logistic services | 86129 | 11431039 | 1596826 |
| The other logistics service providers | Logistic services | 156605 | 94840 | 13249 |
|  |  | 242734 | 11730867 | 1638710 |

---

<u>Loans payable - a related party</u>

As of December 31, 2024 and June 30, 2025, loan payable to a related party consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Nature** | **As of<br> December 31, 2024** | **As of <br> June 30, 2025** | **As of <br> June 30, 2025** |
|  |  | **RMB** | **RMB** | **US$** |
| Xi'an Renrui Hydroacoustic Technology Engineering Co., Ltd ("Renrui") | Loan | 1500000 | - | - |
| Key management and their immediate family members | Loan | 733700 | 40000 | 5588 |
|  |  | 2233700 | 40000 | 5588 |

---

In April 2024, the Group borrowed a loan of RMB 3,000,000 from Renrui with an interest rate of 6%. The loan is due in September 2025. As of December 31, 2024, principal of RMB1,500,000 was repaid and RMB1,500,000 was outstanding. The interest expense on the loan was RMB 47,193 for the six months ended June 30, 2024. In January 2025, the loan and its interests were fully repaid to Renrui.

In July 2024, the Group borrowed a one-year loan with total amount of RMB738,000 from one of its officers. The loan bears no interests. As of December 31, 2024, principal of RMB4,300 was repaid and RMB733,700 was outstanding. In January 2025, the loan was fully repaid.

In June 2025, the Group borrowed RMB40,000 (US$5,588) from the non-controlling shareholder of JNT. The loan bears no interests, and due in December 2025.

Other payable - related parties

As of December 31, 2024 and June 30, 2025, other payable to related parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Nature** | **As of<br> December 31, <br> 2024** | **As of<br> June 30, 2025** | **As of<br> June 30, 2025** |
|  |  | **RMB** | **RMB** | **US$** |
| Cargo Link Logistics HK Company Limited ("Cargo Link") | Payment for logistics service (a) | 624125 | 627993 | 87726 |
| The other logistics service providers | Payment for logistics service / Interest payable | 165435 | - | - |
|  |  | 789560 | 627993 | 87726 |

---

(a) For
the six months ended June 30, 2024 and 2025, Cargo Link paid on behalf of Jayud in a total amount of RMB 5,255 and RMB 3,868 (US$540),
respectively.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**18. RELATED PARTY BALANCES AND TRANSACTIONS** (Cont.)

Loans payable – shareholders

As of December 31, 2024 and June 30, 2025, loans payable to shareholders consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Nature** | **As of<br> December 31, 2024** | **As of <br> June 30, 2025** | **As of <br> June 30, 2025** |
|  |  | **RMB** | **RMB** | **US$** |
| Huang Jianhong | Loan | 658000 |  |  |
| Jia Xiaohua | Loan | 1000000 |  |  |
| Wang Qing | Loan | 300000 |  |  |
| Yi Yu | Loan | 5697800 |  |  |
| Peng ZhongLiang | Loan | 1000000 |  |  |
|  |  | 8655800 |  |  |

---

During the six months ended June 30, 2024, the Group borrowed a total amount of RMB 15,165,895 with 6% interests from six shareholders of the Group with 14~19 months terms. The interest expense on these loans was RMB 346,407 during the six months ended June 30, 2024. During the six months ended June 30, 2025, the Group fully repaid the loans to the shareholders.

<u>Other payable – shareholders</u>

Other payable to shareholders represents the interests on the shareholder loans above. As of December 31, 2024, other payable to shareholders amounted to RMB613,820. During the six months ended June 30, 2025, the shareholders agreed to waive the interests on the loans above. Therefore, no other payable to shareholders outstanding as of June 30, 2025.

<u>Other payable – shareholders - non-current</u>

As of December 31, 2024 and June 30, 2025, other payable to shareholders consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Nature** | **As of<br> December 31, <br> 2024** | **As of <br> June 30, 2025** | **As of <br> June 30, 2025** |
|  |  | **RMB** | **RMB** | **US$** |
| Xiaogang Geng | Dividend | 6225000 | 6225000 | 869583 |
| Xiaohua Jia | Dividend | 712500 | 712500 | 99531 |
|  |  | 6937500 | 6937500 | 969114 |

---

Related party transactions

For the six months ended June 30, 2024 and 2025, the Group had the following material related party transactions:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **For the six months ended<br> June 30,** | **For the six months ended<br> June 30,** | **For the six months ended<br> June 30,** |
| <br>**Related Parties** | <br>**Nature** | **2024** | **2025** | **2025** |
|  |  | **RMB** | **RMB** | **US$** |
| Winpass Logistics (HK) Co., Limited | Purchase of logistic services | 241479 | 142615 | 19922 |
| Cargo Link Logistics HK Company Limited | Purchase of logistic services | 31986207 | 27923471 | 3900689 |
| The other logistics service providers | Purchase of logistic services | 902403 | 284819 | 39787 |
| LD Global Logistics Inc | Provided logistic services | - | 1978424 | 276370 |
| The other logistics service customers | Provided logistic services | 609612 | - | - |
| Xi'an Renrui Hydroacoustic Technology Engineering Co., Ltd | Sales of goods | 641316 | 267111 | 37314 |

---

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**19. CONCENTRATION**

The following table sets forth information as to each customer that accounted for 10% or more of total accounts receivable as of December 31, 2024 and June 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of<br> December 31,<br> 2024** | **As of<br> December 31,<br> 2024** | **As of<br> June 30, 2025** | **As of<br> June 30, 2025** | **As of<br> June 30, 2025** |
| <br>**Customer** | **Amount** | **% of <br> Total** | **Amount** | **% of <br> Total** | **Amount** |
|  | **RMB** | **%** | **RMB** | **%** | **US$** |
| A | 7668440 | 19.7% | 8579472 | 12.5% | 1198485 |

---

The following table sets forth information as to each customer that accounted for 10% or more of total revenue for the six months ended June 30, 2024 and 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the six months ended<br> June 30,** | **For the six months ended<br> June 30,** | **For the six months ended<br> June 30,** | **For the six months ended<br> June 30,** | **For the six months ended<br> June 30,** |
| | **2024** | **2024** | **2025** | **2025** | **2025** |
| <br>**Customer** | **Amount** | **% of <br> Total** | **Amount** | **% of <br> Total** | **Amount** |
|  | **RMB** |  | **RMB** |  | **US$** |
| B | 27351614 | 10.11% | 41274908 | 14.5% | 5765779 |
| C | \* | \* | 37550104 | 13.2% | 5245454 |

---

\* Represented the percentage below 10%

The following table sets forth information as to each supplier that accounted for 10% or more of total accounts payable as of December 31, 2024 and June 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of** | **As of** | **As of** | **As of** | **As of** |
| | **December 31, 2024** | **December 31, 2024** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| <br>**Supplier** | **Amount** | % **of<br> Total** | **Amount** | % **of<br> Total** | **Amount** |
|  | **RMB** |  | **RMB** | % | **US$** |
| Cargo Link Logistics HK Company Limited | \* | \* | 11431039 | 21% | 1596826 |
| A | 16125748 | 36.1% | 10807073 | 20.8% | 1509663 |
| B | \* | \* | 8839888 | 17% | 1234863 |

---

\* Represented the percentage below 10%

The following table sets forth information as to each supplier that accounted for 10% or more of total purchase for the six months ended June 30, 2024 and 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
| | **2024** | **2024** | **2025** | **2025** | **2025** |
| <br>**Supplier** | **Amount** | **% of Total** | **Amount** | **% of Total** | **Amount** |
|  | **RMB** |  | **RMB** |  | **US$** |
| Cargo Link Logistics HK Company Limited | 31986207 | 11.7% | 27923470 | 10.7% | 3900689 |
| A | 57953487 | 21.2% | 76922106 | 29.6% | 10745412 |

---

\* Represented the percentage below 10%

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**20. COMMITMENTS AND CONTINGENCIES**

The Group has not entered into any off-balance sheet financial guarantees or other off-balance sheet commitments to guarantee the payment obligations of any third parties. The Company has not entered into any derivative contracts that are indexed to the company's shares and classified as shareholder's equity or that are not reflected in the Company's consolidated financial statements. Furthermore, the Company does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. The Company does not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us.

The following table sets forth the Company's contractual obligations as of June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Payments due by period** | **Payments due by period** | **Payments due by period** | **Payments due by period** |
|  | **Total** | **Within <br> one year** | **Within<br> 1-2 years** | **Over <br> 2 years** |
| Operating lease payment | 3092614 | 666336 | 1233085 | 1193193 |
| Bank borrowings | 18253311 | 14293311 | - | 3960000 |
| Loan from a related party | 40000 | 40000 | - | - |
| **Total** | **21385924** | **14999647** | **1233085** | **5153193** |

---

Other than as shown above, the Company did not have any significant capital and other commitments, long-term obligations, or guarantees as of June 30, 2025.

**21. Business Combination**

<u>Qingdao Oranda Supply Chain Management Co., Ltd.</u>

In January 2024, the Group acquired a 51% stake in Qingdao Oranda Supply Chain Management Co., Ltd. ("Oranda"), a company based in Qingdao, Shandong. Oranda offers comprehensive logistics services including cargo identification, transportation, warehousing, customs clearance, and insurance. The purchase price is contingent on Oranda's performance, with a mix of cash and the Group's Class A ordinary shares to be paid in 2027, based on Oranda's average net profit until December 31, 2026. At the acquisition date, the cash balance of Oranda was RMB7,709. On October 10, 2024, the Group and Oranda agreed to terminate the equity purchase agreement, and the 51% equity interests acquired was returned to the original owner of Oranda, which lead a RMB 416,179 reverse in non-controlling interest. No consideration was given to the original owner pursuant to the termination agreement and all parties were relieved of their obligations as a result of the termination.

<u>Shenzhen Jiniu International Logistics Co., Ltd.</u>

In January 2024, the Group acquired a 51% stake in Shenzhen Jiniu International Logistics Co., Ltd. ("Jiniu"), located in Shenzhen. Focusing on supply chain management and logistics services, particularly for the Middle East trade lane, Jiniu offers a range of services from cargo transportation to technology export. The acquisition closed on January 15, 2024 and the Company obtained control of 51% of Jiniu equity interest. The final purchase price will be determined by Jiniu's performance and will be paid in a combination of cash and the Group's Class A ordinary shares in 2027, based on Jiniu's average net profit until the end of 2026. The net assets of Jiniu was negative RMB 19,755 at the time of acquisition, including cash balance of RMB972. Jiniu incurred a net loss of RMB 183,146 from the date of acquisition to June 30, 2024 and RMB169,280 (US$23,647) for the six months ended June 30, 2025. These amounts are considered insignificant to the Group's net assets as of December 31, 2024 and net losses for the six months ended June 30, 2024; therefore, no pro forma information of Jiniu are presented.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**21. BUSINESS COMBINATION** (Cont.)

<u>HYTX warehouse Inc.</u>

In April 2024, the Group acquired a 51% stake in HYTX Warehouse Inc. ("HYTX"), a logistics company headquartered in California, U.S.A. The final purchase price will be determined by HYTX's performance and will be paid in a combination of cash and the Group's Class A ordinary shares in 2027, based on HYTX's average net profit until the end of 2026. The net assets of HYTX was negative RMB11,960 at the time of acquisition, including cash balance of RMB135,750. On March 18, 2025, the Group and HYTX agreed to terminate the equity purchase agreement, and the 51% equity interests acquired was returned to the original owner of HYTX, which lead a RMB18,457 (US$2,578) reverse in non-controlling interest. No consideration was given to the original owner pursuant to the termination agreement and all parties were relieved of their obligations as a result of the termination.

The transactions were accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Based on financial statements of the companies above at the time of the acquisition, the fair value of these entities at the time of acquisition was considered immaterial. The Group made a forecast for next three years (up to December 2026) of Jiniu based on its historical performance, and as a result, there is high possibility that it will not reach the minimum required net income amount for receiving any consideration. Thus, the Group concluded that the consideration for this acquisition is nil.

The contingent payment is more like an incentive to the selling shareholders for transferring their resource into the new companies to achieve long term growth of the companies, which should recognized as the compensation.

An award based on a fixed dollar amount is a liability in accordance with ASC 480-10-25-14. Liability classification is also appropriate for an award that has several possible fixed dollar amount settlements that are not solely or predominantly based on the value of the company's shares. The compensation for the selling shareholders is calculated based on the average net income for the next three years (up to December 2026), so it should be accounted for as a liability award with a performance condition. The monetary value of the purchase price only fluctuates based on changes in average net income for the next three years, not stock price. Expense would not be recognized until achievement of one of the performance targets is deemed probable. The expense to be recognized would be based on the Group's best estimate of the ultimate outcome at the end of each reporting period. Once the number of shares are issued, the award would be reclassified to equity.

Based on the Group's forecast for next three years (up to December 2026) of Jiniu based on their historical performance, there is high possibility that they will not reach the minimum required net income amount for receiving any consideration. Therefore, no expenses or liabilities were recorded as of December 31, 2024 and June 30, 2025.

<u>HK(FASTFLY) International Logistics Co., Limited</u>

In April 2024, the Group acquired a 51% stake in HK (FASTFLY) International Logistics Co., Limited ("FASTFLY") with no consideration. Jiniu's 49% shareholder acquired 49% of FASTFLY with no consideration. FASTFLY will deal with overseas orders for Jiniu. The net assets of FASTFLY was negative RMB14,937 at the time of acquisition. FASTFLY incurred a net loss of RMB 12,401 and RMB 3,914 (US$547) from the date of acquisition to December 31, 2024 and during the six months ended June 30, 2025.

**JAYUD GLOBAL LOGISTICS LIMITED NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**22. BASIC AND DILUTED NET LOSS PER SHARE**

Basic and diluted net (loss) income per share for each of the periods presented are calculated as shown in the table below. the basic and diluted net loss per share for the six months ended June, 30 2024 are the same because the potential ordinary shares to be converted are anti-dilutive for the period.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Six Months ended June 30,** | **For the Six Months ended June 30,** | **For the Six Months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Net (loss) income attributable to the Jayud Global Logistics Limited's ordinary shareholders | (17934927) | 1789107 | 249924 |
| Denominator: |  |  |  |
| Weighted average number of Ordinary Shares | 21352223 | 93826802 | 93826802 |
| Net loss per Ordinary Share – basic and diluted | (0.84) | 0.02 | 0.003 |

---

Basic and diluted loss per ordinary share is computed using the weighted average number of ordinary shares outstanding during the year. Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted.

**23. SUBSEQUENT EVENTS**

On July 16, 2025, the Company entered into a share purchase agreement (the "Purchase Agreement") with certain accredited investors named therein (the "Investors"), pursuant to which the Company sold and issued 42,857,143 Class A ordinary shares to the Investors at a purchase price of US$0.14 per share, in a registered direct offering of $6 million of its securities. The Company received net proceeds of US$5.6 million.

On August 1, 2025, the Group set up LabelBridge Logistics LLC ("LabelBridge") in California, U.S.A. with a non-controlling shareholder and obtained 55% equity interest of LabelBridge. The Group made US$150,000 initial investment in August 2025.

On September 9, 2025, the board of directors of the Company, approved a share combination (the "Share Combination") of the Company's ordinary shares at a ratio of 50-to-1 so that every 50 shares (or part thereof) are combined into one (1) share (with the fractional shares rounding up to the next whole share). As a result of the Share Combination, the authorized share capital of the Company will change from US$50,000 divided into 500,000,000 shares of US$0.0001 each, comprising (i) 480,000,000 Class A ordinary shares of par value US$0.0001 each and (ii) 20,000,000 Class B ordinary shares of par value US$0.0001 each, to US$2,500,000 divided into 500,000,000 shares of par value US$0.005 each, comprising (i) 480,000,000 Class A ordinary shares of par value US$0.005 each and (ii) 20,000,000 Class B ordinary shares of par value US$0.005 each. The Company's Class A ordinary shares began trading on the Nasdaq Stock Market on a post Share Combination basis on October 13, 2025.

## Exhibit 99.2

**Exhibit 99.2**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our interim condensed consolidated financial statements and related notes. This discussion and analysis contains forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors .*

 

**OVERVIEW**

We are one of the leading Shenzhen-based end-to-end supply chain solution providers in China, with a focus on providing cross-border logistics services. We benefit from the unique geographical advantages of providing high degree of support for ocean, air and overland logistics. A well-connected transportation network enables us to significantly increase efficiency and reduce transportation costs. As one of the most open and dynamic regions in China, Shenzhen is home to renowned enterprises and the gathering place of cross-border e-commerce market players, which provides us with a large customer base and enables us to develop long-term in-depth relationships with our customers. In addition, the sustained and steady growth of local economy and supportive government policies have backed up our development and brought us great convenience in daily operations.

For the six months ended June 30, 2024 and 2025, our total revenue amounted to RMB270.6 million and RMB280.6 million (US$39.2 million), respectively, representing an increase of 3.7%. For the six months ended June 30, 2024 and 2025, our gross loss amounted to RMB2.7 million and gross profit amounted to RMB19.6 million (US$2.7 million), respectively, representing an increase of 824.4%.

We offer a comprehensive range of cross-border supply chain solution services, including: (i) freight forwarding services, (ii) supply chain management, and (iii) other value-added services.

**KEY FACTORS THAT AFFECT OPERATING RESULTS**

**Changes in the global and local economic conditions**

Our financial performance, particularly our ability to drive growth, depends upon the demand for our services, which is closely linked to the global and local economies, and is sensitive to the level of expenditure by business entities' on our services. While the logistics industry in China has been benefiting from the remarkable growth of the Chinese economy in recent years, issues and conditions with global reach, such as the COVID-19 outbreak, trade wars and occasional regional armed conflicts, have negatively affected the global economy and had a chain reaction in the global logistics industry. Despite the substantial improvements in social and economic conditions in China since the outbreak of COVID-19 in early 2020, there remain uncertainties regarding the overall economic conditions and demand for our services worldwide. Other macro-economic factors beyond our control may also affect our results of operations. For example, any prolonged recurrence of other contagious diseases, social instability or significant natural disasters may have a negative impact on the demand for our services.

**Our ability to maintain our major customers**

For the six months ended June 30, 2024 and 2025, approximately 28.4% and 43.0% of our total revenues, respectively, were generated by our five largest customers of the same periods. While certain service contracts contain options of renewal, there is no assurance that our major customers will continue their business relationships with us, or the revenue generated from dealings with them will be maintained or increased in the future. If we are unable to enter into new service contracts with our customers upon expiry of the current contracts, or there is a reduction or cessation of demands from these customers for whatever reasons and we are unable to enter into service contracts of comparable size and terms in substitution, our business, financial conditions and results of operation may be materially and adversely affected.

 **Our ability to obtain new customers and to increase our revenue per customer**

The number of our customers decreased from 1,478 as of June 30, 2024 to 1,070 as of June 30, 2025, representing a 27.6% decrease. Meanwhile, average revenue per customer was RMB183.1 thousand for the six months ended June 30, 2024 as compared to approximately RMB 262.3 thousand (US$36.6 thousand) per customer for the six months ended June 30, 2025. Our ability to increase our revenues and our profitability will depend on our ability to continue to increase our customer base and revenue per customer. To achieve this, we strive to increase our marketing efforts such as making more event sponsorship, increasing online and offline advertising advertisements in targeted markets and enhancing the quality and capabilities of our technologies.

**Our ability to pursue strategic opportunities for growth**

Although the end-to-end cross-border supply chain solution market in China is highly fragmented, top companies in this market in China hold stronger comprehensive service capabilities and bargaining power. In the future, it is expected that more competitors will enter this market. Therefore, we intend to continue to pursue strategic investments in selective businesses in the logistics industry that will enhance our service capabilities.

We believe that a solid investment strategy in warehouses and licenses for e-commerce exports may be critical for us to accelerate our growth and strengthen our competitive position in the future. Our ability to identify and execute strategic investments will likely have an effect on our operating results over time.

**Regulatory Environment**

Our ability to anticipate and respond to potential changes in government policies and regulations will have a significant impact on our business operations in such countries and our overall results of operations. In recent years, the PRC government has issued many supportive policies to encourage the development of the logistic industry. Encouraged by those policies, the logistic industry in China is expected to become more standardized and modernized. The integrated cross-border logistics service market, as a sub-segment of the logistic industry, is likely to evolve along with the development of the logistic industry.

**Impact of Global Inflationary Pressures**

We primarily face two types of inflationary pressures: one is inflation-related economic slowdown, and the other is a rise in fuel prices as a result of inflation. Our business is less affected by the first type of inflationary pressure since substantially all of our business operations are in China, where inflation has been stable over the past three years. In 2022, 2023 and 2024, the inflation rate in China was 2.0%, 2.2% and 2.4%, respectively. However, due to global inflation and tensions between Russia and Ukraine in 2022, the prices of fossil fuel have surged and affected the freight forwarding services section which still relies heavily on fossil fuels to power transportation. With higher fuel prices, costs of freight forwarding services will increase and the demand for cross-border logistics services will be adversely affected. But we expect the pressure of high fuel prices to be limited, as we plan to expand warehouse management services to diversify our service lines to mitigate the impact.

**Impact of Supply Chain Disruptions**

The tensions between Russia and Ukraine in 2022 also gave rise to supply chain disruptions in Europe. Our revenue generated from Europe, primarily from freight forwarding services and supply chain management in aggregate, accounted RMB23.3 million, or 14.2% of total freight forwarding revenue, for the six months ended June 30, 2024, and RMB30.4 million, or 19.2% of total revenue, for the six months ended June 30, 2025. Except for the impact of the war in Ukraine, there are no other supply chain disruptions affecting our business.

**KEY COMPONENTS OF OUR RESULTS OF OPERATIONS**

**Revenues**

Our revenues consist of (i) revenues from our freight forwarding services, which primarily comprise service fees typically ascertained based on the number of packages, weight, measurement, destination port, types of freight and other special demands; (ii) revenues from our supply chain management, which primarily comprise product revenues; and (iii) revenues from our other valued-added services, which primarily comprise custom brokerage.

Our breakdown of revenues for the periods indicated is summarized below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **Variances** | **Variances** |
|  | **2024** | **2025** | **2025** | **Amount** | **%** |
|  | **RMB '000** | **RMB '000** | **US$ '000** | **RMB '000** | |
| **Freight forwarding** | **163345** | **157853** | **22051** | **(5490)** | **(3.4)** |
| &nbsp;&nbsp;&nbsp;Integrated cross-border logistics services | 100213 | 119686 | 16719 | 19473 | 19.4 |
| &nbsp;&nbsp;&nbsp;Fragmented logistics services | 53948 | 30748 | 4295 | (23200) | (43.0) |
| &nbsp;&nbsp;&nbsp;Chartered airline freight services | 6348 | 3963 | 554 | (2384) | (37.6) |
| &nbsp;&nbsp;&nbsp;Warehouse services | 2836 | 3456 | 483 | 620 | 21.9 |
| **Supply chain management** | **105500** | **120338** | **16810** | **14837** | **14.1** |
| **Other value-added services** | **1763** | **2437** | **340** | **674** | **38.2** |
| **Total revenues** | **270608** | **280628** | **39201** | **10021** | **3.7** |

---

**Cost of Revenues**

Cost of revenues represents costs and expenses incurred in order to generate revenue. Our cost of revenues primarily consists of (i) cost of freight charges, (ii) cost of goods, (iii) labor costs, (iv) cost of customs brokerage, (v) cost of packaging, (vi) cost of indemnities paid to carriers. Cost of freight charges consists of (i) air freight/ ocean freight/land freight charges, (ii) delivery fees, and (iii) other service fees.

Our breakdown of cost of revenues for the periods indicated is summarized below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **Variances** | **Variances** |
|  | **2024** | **2025** | **2025** | **Amount** | **%** |
|  | **RMB '000** | **RMB '000** | **US$ '000** | **RMB '000** | |
| **Freight forwarding** | **172418** | **140517** | **19629** | **(31901)** | **(18.5)** |
| &nbsp;&nbsp;&nbsp;Integrated cross-border logistics services | 96975 | 110974 | 15502 | 13999 | 14.4 |
| &nbsp;&nbsp;&nbsp;Fragmented logistics services | 65055 | 22844 | 3191 | (42211) | (64.9) |
| &nbsp;&nbsp;&nbsp;Chartered airline freight services | 7637 | 3101 | 433 | (4536) | (59.4) |
| &nbsp;&nbsp;&nbsp;Warehouse services | 2751 | 3598 | 503 | 847 | 30.8 |
| **Supply chain management** | **99438** | **118860** | **16604** | **19422** | **19.5** |
| **Other value-added services** | **1464** | **1605** | **225** | **141** | **9.7** |
| **Total cost of revenues** | **273320** | **260982** | **36457** | **(12338)** | **(4.5)** |

---

**Gross Profit**

Our gross profit equals to our revenue less our cost of revenues. Our gross profit is primarily affected by our ability to generate revenue and the fluctuation of our cost.

Our breakdown of gross profit (loss) by service line is set forth below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months ended June 30,** | **For the Six Months ended June 30,** | **For the Six Months ended June 30,** | |
|  | **2024** | **2025** | **2025** |<br>**Variance** |
|  | **RMB '000** | **RMB '000** | **US$ '000** | **RMB '000%** |
| **Freight forwarding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gross loss | (9073) | 17336 | 2422 | 26410 |
| &nbsp;&nbsp;&nbsp;Gross margin | (5.6)% | 11.0% | 11.0% | 16.5% |
| **Supply chain management** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gross profit | 6062 | 1478 | 206 | (4584) |
| &nbsp;&nbsp;&nbsp;Gross margin | 5.7% | 1.2% | 1.2% | -4.5% |
| **Other value-added services** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gross profit | 299 | 832 | 116 | 533 |
| &nbsp;&nbsp;&nbsp;Gross margin | 17.0% | 34.1% | 34.1% | 17.1% |
| **Total** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gross loss | (2712) | 19646 | 2744 | 22359 |
| &nbsp;&nbsp;&nbsp;Gross margin | (1.0)% | 7.0% | 7.0% | 8.0% |

---

**Operating expenses**

Operating expenses include selling expenses, general and administrative expenses, research and development expenses, provision for credit losses, impairment charges on long-lived assets and lease termination gain/(loss). General and administrative expenses mainly consist of (i) employee payroll, rental and depreciation related to general and administrative personnel, (ii) professional service fees; and (iii) other corporate expenses. Our selling expenses mainly consist of (i) employee payroll and commission, (ii) entertainment and marketing expenses, and (iii) rental and depreciation related to selling and marketing functions. Research and development expenses mainly consist of (i) cost of materials used for experiment, (ii) employee payroll, and (iii) depreciation expense for experimental facilities and other daily expenses related to our research and development activities in logistics related software development.

The following table sets forth our operating expenses, both in absolute amount and as a percentage of the total operating expenses, for the periods indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the six months Ended June 30,** | **For the six months Ended June 30,** | **For the six months Ended June 30,** | **For the six months Ended June 30,** | **For the six months Ended June 30,** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB '000** | % | **RMB '000** | **US$ '000** | % |
| General and administrative expenses | 11845 | 75.8 | 15518 | 2168 | 90.1 |
| Reversal of credit loss | (1841) | (11.8) | (3282) | (459) | (19.1) |
| Impairment charge on long-lived assets | 964 | 6.2 |  |  |  |
| Lease termination loss / (gain) | 311 | 2.0 | (107) | (15) | (0.6) |
| Selling expenses | 3851 | 24.6 | 4443 | 621 | 25.8 |
| Research and development expenses | 502 | 3.2 | 626 | 87 | 3.6 |
| **Total operating expenses** | **15632** | **100.0** | **17198** | **2402** | **100.0** |

---

**RESULTS OF OPERATIONS**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Revenues | 270608 | 280628 | 39201 |
| Cost of revenues | (273320) | (260982) | (36457) |
| **Gross (loss) / profit** | **(2712)** | **19646** | **2744** |
| **Operating expenses:** |  |  |  |
| General and administrative expenses | (11845) | (15518) | (2168) |
| Reversal of credit losses | 1841 | 3282 | 459 |
| Impairment charges on long-lived assets | (964) |  |  |
| Lease termination (loss) / gain | (311) | 107 | 15 |
| Selling expenses | (3851) | (4443) | (621) |
| Research and development expenses | (502) | (626) | (87) |
| **Total operating expenses** | **(15632)** | **(17198)** | **(2402)** |
| **Operating loss** | **(18344)** | **2448** | **342** |
| **Other expenses:** |  |  |  |
| Other income, net | 74 | 414 | 58 |
| Foreign exchange loss, net | (464) | (1422) | (199) |
| Financial (expenses) / income, net | (1252) | 101 | 14 |
| **Total other expenses, net** | **(1642)** | **(907)** | **(127)** |
| **(Loss) / income before income tax expense** | **(19986)** | **1541** | **215** |
| Income tax benefit | 672 | 587 | 82 |
| Share of income of equity method investees, net of tax of nil | - | 181 | 25 |
| **Net (loss) / income** | **(19314)** | **2309** | **322** |

---

 **

***Revenues***

 **

Total revenues increased by approximately RMB10 million, or 3.7%, from approximately RMB270.6 million for the six months ended June 30, 2024 to approximately RMB280.6 million (US$39.2 million) for the six months ended June 30, 2025.

Revenues from our freight forwarding services decreased by RMB5.5 million, or 3.4%, from RMB163.3 million for the six months ended June 30, 2024 to RMB157.9 million (US$22.1 million) for the six months ended June 30, 2025. The decrease was mainly due to the decrease in revenue of approximately RMB21.7 million (US$3.0 million) from disposed subsidiaries such as Qingdao Oranda Supply Chain Management Co., Ltd., HYTX warehouse Inc. and branches resulting from the strategic adjustment made by the Company in 2024, and decrease in revenue of approximately RMB2.4 million (US$0.3 million) from chartered airline services, RMB1.5 million (US$0.2 million) from traditional air and ocean freight forwarding services, and offset by the increase in revenue of approximately RMB11.9 million (US$1.7 million) from our major customers, approximately RMB7.6 million (US$1.1 million) from e-commerce related logistics services, approximately RMB0.6 million (US$0.1 million) from warehouse services.

Revenues from our supply chain management increased by RMB14.8 million, or 14.1%, from RMB105.5 million for the six months ended June 30, 2024 to RMB120.3 million (US$16.8 million) for the six months ended June 30, 2025. The increase was mainly due the increase in import business of approximately RMB19.0 million (US$2.7 million) and domestic business in China mainland of approximately RMB6.2 million (US$0.9 million), offset by the decrease in business in Hong Kong of approximately RMB10.4 million (US$1.5 million).

Revenues from our other value-added services increased by RMB0.6 million, or 38.2%, from RMB1.8 million for the six months ended June 30, 2024 to RMB2.4 million (US$0.6 million) for six months ended June 30, 2025. The increase was mainly due to the increase of revenue from custom brokerage services.

***Cost of Revenues***

 ****

Our cost of revenues decreased by 4.5% from RMB273.3 million for the six months ended June 30, 2024 to RMB261.0 million (US$36.5 million) for the six months ended June 30, 2025.

Our cost of revenues for freight forwarding services decreased by approximately RMB31.9 million, or 18.5%, from approximately RMB172.4 million for the six months ended June 30, 2024 to approximately RMB140.5 million (US$19.6 million) for the six months ended June 30, 2025. Cost of freight charges, representing the main source of our cost of revenue, decreased by RMB23.5 million, or 15.4%, from approximately RMB152.7 million for the six months ended June 30, 2024 to approximately RMB129.2 million (US$18.1 million) for the six months ended June 30, 2025. The main components of freight charges were the freight and the delivery fees paid to third- party carriers. During the six months ended June 30, 2025, we received a refund of approximately RMB30.3 million (US$4.2 million) from an airline company as a result of the government subsidy to two charter flight routes operated by us during 2022-2023. We refund approximately RMB8.9 million (US$1.2 million) to our customer according to original agreements. As a result, the net refund of RMB21.4 million (US$3.0 million) was applied against our cost of freight charges.

Our cost of revenues for supply chain management increased by approximately RMB19.4 million, or 19.5%, from approximately RMB99.4 million for the six months ended June 30, 2024 to approximately RMB118.9 million (US$16.6 million) for the six months ended June 30, 2025. The increase synchronized with the business growth of electronic devices and chips business.

Our cost of revenues for other value-added services increased by approximately RMB0.1 million, or 9.7%, from approximately RMB1.5 million for the six months ended June 30, 2024 to approximately RMB1.6 million (US$0.2 million) for the six months ended June 30, 2025. The increase was primarily due to the increase of orders of customs brokerage services.

***Gross Profit (loss)***

For the six months ended June 30, 2024, we had gross loss of RMB2.7 million. For the six months ended June 30, 2025, we had gross profit of RMB19.6 million (US$2.7 million). For the six months ended June 30, 2024 and 2025, our overall gross profit margin increased from negative 1% to positive 7%.

Gross profit margin of freight forwarding services increased from negative 5.6% for the six months ended June 30, 2024 to positive 11.0% for the six months ended June 30, 2025. The increase in gross margin during the six month ended June 30, 2025 was mainly due to the refund from an airline company as a result of the government subsidy to two charter flight routes operated by us as described above.

Gross profit margin of our supply chain management decreased from 5.7% for the six months ended June 30, 2024 to 1.2% for the six months ended June 30, 2025, as a result of the severe competition in electronic devices and chips business.

Gross profit margin of our other value-added services increased from 17.0% for the six months ended June 30, 2024 to 34.1% for the six months ended June 30, 2025 mainly due to the cost control of customs brokerage services.

***Operating Expenses***

Our operating expenses increased from RMB15.6 million for the six months ended June 30, 2024 to RMB17.2 million (US$2.4 million) for the six months ended June 30, 2025, representing a period-on-period increase of 16.2%.

<u>General and administrative expenses</u>

General and administrative expenses mainly consisted of (i) employee payroll, rental and depreciation related to general and administrative functions, (ii) professional service fees; and (iii) other corporate expenses. Our general and administrative expenses increased by 31.0% from RMB11.8 million for the six months ended June 30, 2024 to RMB15.5 million (US$2.2 million) for the six months ended June 30, 2025, which was primarily attributable to (i) an increase of RMB2.8 million (US$0.4 million) in director fees and professional expenses for legal and auditing services; (ii) an increase of RMB1.3 million (US$0.2 million) in insurance expenses; (iii) an increase of RMB0.5 million (US$0.1 million) in office expenses and rent; (iv) an increase of RMB0.4 million (US$0.1 million) in other general and administration expenses including travel expenses; offset by decrease in employee payroll of RMB1.4 million (US$0.2 million) due to decrease of management headcount during the six months ended June 30, 2025.

<u>Selling expenses</u>

Our selling expenses mainly consisted of (i) employee payroll and commission, (ii) entertainment and marketing expenses, and (iii) rental and depreciation related to selling and marketing functions. Our selling expenses increased by 15.4% from RMB3.9 million for the six months ended June 30, 2024 to RMB4.4 million (US$0.6 million) for the six months ended June 30, 2025, which was primarily attributable to (i) an increase of RMB0.5 million (US$0.1 million) in business promotion and entertainment expenses for market expansion; (ii) an increase of RMB0.4 million (US$0.1 million) of rent and office expenses; (iii) an increase of RMB0.1 million (US$0.01 million) in other selling expense; offset by decrease of RMB0.4 million (US$0.1 million) in employee payroll and commission due to reduction of headcount during the six months ended June 30, 2025.

<u>Reversal of (provision for) credit losses</u>

Provision for credit losses consisted of bad debt allowance net of reversal, against (i) accounts receivable, (ii) contract assets and (iii) prepaid expenses and other current asset, net. We adopted ASU 2020-03, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments starting from January 1, 2023. Based on the new standard, we used expected loss model to assess the provision of bad debt allowance against accounts receivables, other receivables and contract assets. For the six months ended June 30, 2024 and 2025, we had reversal of credit losses of RMB1.8 million and RMB3.3 million (US$0.5 million) due to the subsequent collection of allowance recognized at the end of previous years.

<u>Lease termination (loss) / gain</u> 

For the six months ended June 30, 2024, we had a net lease termination loss of RMB0.3 million, mainly due to the deposit loss from termination of the lease of warehouses. For the six months ended June 30, 2025, we had a lease termination gain of RMB0.1 million (US$0.01 million), representing the gain from derecognition of right-of-use assets and lease liabilities upon the lease termination.

<u>Impairment charges on long-lived assets</u>

For the six months ended June 30, 2024, we recorded impairment charges on long-lived assets of RMB 1 million, which consisted of impairment of property and equipment of RMB0.4 million and intangible assets of RMB0.6 million. During the six months ended June 30, 2025, there was a triggering event of negative operating cash flows that indicated the carrying amounts of our long-lived assets may not have been recoverable. We performed an assessment and recognized the impairment charges on long-lived assets for the amount by which the carrying value of the asset group's long-lived assets exceeded their estimated fair value. No impairments of long-lived assets were recognized for the six months ended June 20, 2025.

<u>Research and development expenses</u>

Research and development expenses mainly consisted of (i) cost of materials used for experiments, (ii) employee payroll, (iii) depreciation expense for experimental facilities and other daily expenses related to our research and development activities, and (iv) outsourcing expense for system development. Research and development expenses increased by 24.6% from RMB0.5 million for the six months ended June 30, 2024 to RMB0.6 million (US$0.1 million) for the six months ended June 30, 2025 due to increase in employee costs.

***Other expenses, net***

Total other expenses decreased by 44.8% from RMB1.6 million for the six months ended June 30, 2024 to income of RMB0.9 million (US$0.1 million) for the six months ended June 30, 2025. Other expenses, net consisted of other income, net, foreign exchange loss, net and financial (expenses) income,net.

Other income, net was RMB 0.1 million for the six months ended June 30, 2024 , mainly from government subsidies. Other income, net was RMB0.4 million (US$0.1 million) for the six months ended June 30, 2025, which mainly due to an income from sublease of warehouses.

Foreign exchange loss, increased by 206.1% from RMB0.5 million for the six months ended June 30, 2024 to RMB1.4 million (US$0.2 million) for the six months ended June 30, 2025, which was primarily attributable to the significant fluctuation of the exchange rate between the dates of record and the dates of settlement for operating activities.

Financial expenses, net was RMB1.3 million for the six months ended June 30, 2024, which was mainly due to the interest expenses of loans from banks, shareholders and related parties. Financial income, net was RMB0.1 million (US$0.01 million) during the six months ended June 30, 2025, which was mainly due to the waive of interests of RMB0.6 million (US$0.1 million) by our shareholders offset by the interests of RMB0.5 million (US$0.1 million) on bank loans.

 ****

***Income taxes***

We had income tax benefit of RMB0.7 million and RMB0.6 million (US$0.1 million) for the six months ended June 30, 2024 and 2025, respectively.

***Share of income of equity method investees, net of tax***

In 2024, we acquired a 20% equity interest in HYTX Warehouse No.3 LLC ("Warehouse No.3") and 49% stake in HYTX Warehouse No.10 LLC ("Warehouse No.10"), which all operate warehouses in the United States. We recorded our share of income of RMB0.2 million (US$0.01 million) for the six months ended June 30, 2025.

***Net loss / income***

As a result of the foregoing, we had net loss of RMB19.3 million for the six months ended June 30, 2024 and net income of RMB 2.3 million (US$0.3 million) for the six months ended June 30, 2025.

**LIQUIDITY AND CAPITAL RESOURCES**

The table below sets forth our cash flows for the six months ended June 30, 2024 and 2025.

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| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
| **Summary Consolidated Cash Flow Data:** | **RMB** | **RMB** | **US$** |
| Net cash used in operating activities | (14640802) | (1092262) | (152581) |
| Net cash used in investing activities | (466579) | (1599960) | (223502) |
| Net cash provided by (used in) financing activities | 9548437 | (3975193) | (555302) |
| Effects of exchange rate changes | 30607 | (288610) | (40317) |
| Net decrease in cash | (5528337) | (6956025) | (971702) |
| Cash at beginning of the periods presented | 26605028 | 37099911 | 5182565 |
| Cash at end of the periods presented | 21076691 | 30143886 | 4210863 |

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In assessing our liquidity, we monitor and analyze our cash on-hand and our operating and capital expenditure commitments. To date, we have financed our working capital requirements from cash flow from operations, debt and equity financing and capital contributions from our existing shareholders.

As of June 30, 2025, we had cash of RMB30.1 million (US$4.2 million) and working capital of approximately RMB47.7 million (US$6.7 million). We have funded our operations and capital needs primarily through the net proceeds received from issuance of new shares, capital contributions, and loans from banks, shareholders, related parties and third parties.

We intend to continue implementing various measures to boost revenue and control the cost and expenses within an acceptable level and other measures including: (1) further enhance the customers bases and credit management in both freight forwarding and supply chain management operations; (2) improve the profitability of the business through more restricted vendor controls; (3) strictly control and reduce general and administration expenses; (4) obtain financing from certain shareholders in forms of long term loans; (5) obtain debt/equity financing by issuance of new convertible debentures or shares and (6) seek for certain credit facilities.

In July 2025, the Group entered into a Securities Purchase Agreement (the"Securities Purchase Agreement") with certain accredited investors (the"Purchasers"), pursuant to which the Group agreed to sell and issue 42,857,143 Class A ordinary shares to the Purchasers at a purchase price of US$0.14 per share, in a registered direct offering of $6 million of its securities. The Group received net proceeds of US$5.6 million.

Current foreign exchange and other regulations in the PRC may restrict our PRC entities in their ability to transfer their net assets to us and our subsidiaries in Hong Kong. However, as of the date hereof, these restrictions have no impact on the ability of these PRC entities to transfer funds to us as we do not anticipate declaring or paying any dividends in the foreseeable future, as we plan to retain our retained earnings to continue to grow our business. In addition, these restrictions have no impact on the ability for us to meet our cash obligations.

In utilizing the proceeds we received from equity financing, we may make additional capital contributions to our PRC subsidiary, establish new PRC subsidiaries and make capital contributions to these new PRC subsidiaries, or make loans to the PRC subsidiaries. However, most of these uses are subject to PRC regulations. Foreign direct investment and loans must be approved by and/or registered with SAFE, and its local branches. The total amount of loans we can make to our PRC subsidiary cannot exceed statutory limits and must be registered with the local counterpart of SAFE. The statutory limit for the total amount of foreign debts of a foreign-invested company, based on its discretionary application, is either the difference between the amount of total investment and the amount of registered capital or 3.5 times of the amount of the net assets of such foreign- invested company.

We are permitted under PRC laws and regulations to provide funding to our PRC subsidiaries only through loans or capital contributions, and only if we satisfy the applicable government registration and approval requirements. The relevant filing and registration processes for capital contributions typically take approximately eight weeks to complete. The filing and registration processes for loans typically take approximately four weeks or longer to complete. While we currently see no material obstacles to completing the filing and registration procedures with respect to future capital contributions and loans to our PRC subsidiaries, we cannot assure you that we will be able to complete these filings and registrations on a timely basis, or at all. See "Item 3. Key Information — D. Risk Factors—Risks Related to Doing Business in China—PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay or prevent us from using the proceeds of our subsequent offerings to make loans or make additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business." Additionally, while there is no statutory limit on the amount of capital contribution that we can make to our PRC subsidiaries, loans provided to our PRC subsidiaries in the PRC are subject to certain statutory limits. With respect to our PRC subsidiaries, the maximum amount of the loans that they can acquire in aggregate from the outside of China is (i) approximately RMB75.0 million (US$10.5 million) under the total investment minus registered capital approach as foreign-invested companies (assuming no change to the amount of registered capital of Shenzhen Jayud Logistics Technology Co., Ltd. as of the date hereof); or (ii) approximately RMB243.2 million (US$34.0 million) as of June 30, 2025 under the net asset approach.

**<u>Operating activities</u>**

For the six months ended June 30, 2025, our net cash used in operating activities was RMB1.1 million (US$0.2 million), which was primarily attributable to (i) a loss adjusted after non-cash items of RMB1.1 million (US$0.1 million); (ii) an increase of RMB28.3 million (US$4.0 million) in accounts receivable from third and related parties mainly due to increase of revenue in 2<sup>nd</sup> quarter of 2025 and some supply chain customers extended their payment terms; (iii) a decrease of accrued expenses and other current liabilities of RMB6.4 million (US$0.9 million) for payments of advances to employees, for daily operational expenses and transportation deposits; (iv) a decrease of RMB4.2 million (US$0.6 million) in accounts payable to third party vendors; (v) a decrease of RMB0.6 million (US$0.1 million) in other payable to shareholders since the shareholders waived these interests on their loans; (vi) a decrease of operating lease liabilities of RMB0.5 million (US$0.1 million) for rent payments and tax payable of RMB0.2 million (US$0.01 million) for tax payments; and was offset by (i) an increase of RMB11.5 million (US$1.6 million) in accounts payable to related parties associated with the expenses to related party transportation vendors; (ii) a decrease of RMB8.9 million (US$1.2 million) in other receivable to related parties due to refund received for deposits made for chartered airline services, and RMB6.7 million (US$1 million) in prepaid expenses to related parties due to refund associated with the cancellation of chartered airline services and fully utilization of remaining prepayments; (iii) a decrease of prepaid expenses and other current assets of RMB5.2 million (US$0.7 million) mainly due to collection of deposits and expenses paid on behalf of customers; (vi) an decrease of RMB2.0 million (US$0.3 million) in contract assets and an increase of contract liabilities of RMB6.0 million (US$0.8 million) for advances received from customers.

For the six months ended June 30, 2024, our net cash used in operating activities was RMB14.6 million, which was primarily attributable to (i) a loss adjusted after non-cash items of RMB18.0 million; (ii) an increase of RMB3.5 million in accounts receivable mainly due to some customers extended their payment terms; (iii) a decrease of operating lease liabilities of RMB4.3 million for rent payments and contract liabilities of RMB2.2 million for use of advances received from customers; (iv) a decrease of accrued expenses and other current liabilities of RMB2.1 million for payments of advances to employees, for daily operational expenses and transportation deposits; and was offset by (i) a decrease of prepaid expenses and other current assets of RMB3.8 million mainly due to collection of expenses paid on behalf of customers; (ii) an increase of RMB11.6 million in accounts payable to related parties associated with the expenses to related party transportation vendors.

The average receivable balance increased by 21.5% from the six months ended June 30, 2024 to 2025, and revenue increased by 3.7% from the six months ended June 30, 2024 to 2025, resulting in the average days sales in receivables increased from 29 days for the six months ended June 30, 2024 to 34 days for the six months ended June 30, 2025. The increase was mainly due to the longer credit term for international trading business which accounted for 42.9% of total revenue for the six months ended June 30, 2025. The average payable balance decreased by 8.3%, from the six months ended June 30, 2024 to 2025, and revenue increased by 3.7% from the six months ended June 30, 2024 to 2025, resulting in the average days sales in payable decreased from 35 days for the six months ended June 30, 2024 to 31 days for the six months ended June 30, 2025.

**<u>Investing activities</u>**

Our net cash used in investing activities was RMB0.5 million and RMB1.6 million (US$0.2 million) for the six months ended June 30, 2024 and 2025, respectively, which was primarily attributable to purchase of property, equipment and intangible assets.

**<u>Financing activities</u>**

For the six months ended June 30, 2025, our net cash used in financing activities was RMB4.0 million (US$0.6 million), which was primarily due to (i) repayments of bank borrowings of RMB17.0 million (US$2.4 million); (ii) repayments of shareholder loans of RMB8.7 million (US$1.2 million) and related party loans of RMB2.2 million (US$0.3 million); (iii) made loans to related parties of RMB0.9 million (US$0.1 million) for the operation needs of these investees in the U.S.A; and was offset by (i) proceeds of borrowings from banks of RMB24.8 million (US$3.5 million) in total; (ii) capital injection from non-controlling interest of RMB0.2 million (US$0.02 million).

For the six months ended June 30, 2025, our net cash provided by financing activities was RMB9.5 million, which was primarily due to (i) proceeds of borrowings from banks of RMB17.7 million in total; (ii) proceeds from loans provided by shareholders of RMB15.5 million and proceeds from a loan from a related party of RMB3.0 million; and was offset by (i) repayments of bank borrowings of RMB21.9 million; (ii) repayments of related party loans of RMB4.0 million.

**CAPITAL EXPENDITURES**

We made capital expenditures of RMB0.6 million and RMB1.6 million (US$0.2 million) for the six months ended June 30, 2024 and 2025, respectively. Our capital expenditures consisted primarily of expenditures related to the logistics related equipment and system development. We fund our future capital expenditures with our existing cash balance and proceeds from issuance of new shares or debts. We will continue to make capital expenditures to meet the expected growth of our business.

**OFF-BALANCE SHEET COMMITMENTS AND ARRANGEMENTS**

We have not entered into any off-balance sheet financial guarantees or other off-balance sheet commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder's equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us.

**CONTRACTUAL OBLIGATIONS**

The following table sets forth our contractual obligations as of June 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Payments due by period** | **Payments due by period** | **Payments due by period** | **Payments due by period** |
|  | **Total** | **Within one year** | **Within 1-2 years** | **Over 2 years** |
|  | **RMB** | **RMB** | **RMB** | **RMB** |
| Operating lease payment | 3092614 | 666336 | 1233085 | 1193193 |
| Bank borrowings | 18253311 | 14293311 |  | 3960000 |
| Loan from a related party | 40000 | 40000 | - | - |
| **Total** | **21385924** | **14999647** | **1233085** | **5153193** |

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Other than as shown above, we did not have any significant capital and other commitments, long-term obligations, or guarantees as of June 30, 2025.

**HOLDING COMPANY STRUCTURE**

Jayud Global Logistics Limited is a holding company with no material operations of its own. We conduct our operations primarily through our subsidiaries in China and Hong Kong. As a result, Jayud Global Logistics Limited's ability to pay dividends depends upon dividends paid by our PRC and Hong Kong subsidiaries. If our existing PRC and Hong Kong subsidiaries or any newly formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us.

In addition, our PRC subsidiaries are permitted to pay dividends to us only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Our PRC subsidiaries had aggregate retained earnings as determined under PRC accounting standards as of June 30, 2025. Pursuant to the Company Law of the People's Republic of China, or the PRC Company Law, our PRC subsidiaries are required to make contribution of at least 10% of their after-tax profits calculated in accordance with the PRC GAAP to the statutory common reserve. Contribution is required until the reserve fund has reached 50% of the registered capital of our subsidiaries. As of June 30, 2025, our reserve fund did not reach 50% of the registered capital of our subsidiaries.

As of December 31, 2024 and June 30, 2025, our PRC subsidiaries had RMB3.5 million and RMB1.8 million (US$0.3 million) of restricted net asset.

On February 8 and February 28, 2022, Shenzhen Jiayuda E-Commerce Technology Co., Ltd and Shenzhen Jiayuda Global Supply Chain Co., Ltd. declared RMB2.4 million cash dividend and RMB7.4 million cash dividend respectively, to its then shareholders and its holding company, Shenzhen Jayud Logistics Technology Co., Ltd. On March 15, 2022, Shenzhen Jayud Logistics Technology Co., Ltd. Declared RMB9.0 million of dividend to its then shareholders. Historically, Shenzhen Jayud Logistics Technology Co., Ltd. has also received equity financing from its then shareholders to fund business operations of our PRC subsidiaries. For the six months ended June 30, 2025, one of our Hong Kong subsidiary, Jayud Global Logistics (Hong Kong) ("JYD Global HK"), transferred cash proceeds of RMB0.7 million (US$0.1 million) to Ezhou Jayud Logistics Technology Co.,Ltd as investments, RMB11.1 million (US$1.55 million) to Shenzhen Jayud Logistics Technology Co., Ltd ("JYD WLKJ") as intercompany loans and HongKong Jayud International Logistics Company Limited ("HK Jayud International") transferred RMB6.3 million (US$0.9 million) to three subsidiaries in China mainland for the settlement of intercompany transactions. In addition, One of the subsidiaries in China mainland transferred RMB1.3 million (US$0.2 million) to HK Jayud International and RMB1.8 million (US$0.3 million) to Joyed Logistics Service Inc for the settlement of intercompany transactions. No cross-boarder cash transfers was made for the six months ended June 30, 2024. For the six months ended June 30, 2025, we transferred cash proceeds of RMB19.4 million (US$2.7 million) to HK Jayud International, JYD Global HK and JYD US for the settlement of intercompany transactions. No cash transfers was made between us and our subsidiaries for the six months ended June 30, 2024. In the future, most cash proceeds raised from overseas financing activities, may be, and are intended to be, transferred by us through our wholly owned Hong Kong subsidiary, Jayud Global Logistics (Hong Kong) Limited, to our PRC subsidiaries via capital contribution and shareholder loans, as the case may be. Our PRC subsidiaries that receive such cash proceeds then will transfer funds to their respective subsidiaries to meet the capital needs of our business operations.

The structure of cash flows within our organization, and the applicable regulations, are as follows. After foreign investors' funds are received by Jayud Global Logistics Limited, our holding company, subject to the cash demand of our PRC and Hong Kong subsidiaries, the funds can be transferred to our wholly owned Hong Kong subsidiary, Jayud Global Logistics (Hong Kong) Limited, which will further distribute the funds to our PRC subsidiaries. If we intend to distribute dividends, PRC subsidiaries will transfer the dividends to Jayud Global Logistics (Hong Kong) Limited in accordance with the laws and regulations of the PRC, and then Jayud Global Logistics (Hong Kong) Limited will transfer the dividends up to Jayud Global Logistics Limited, and the dividends will be distributed from Jayud Global Logistics Limited to all shareholders respectively in proportion to the shares they hold, regardless of whether the shareholders are U.S. investors or investors in other countries or regions. The cross-border transfer of funds within our corporate group under our direct holding structure must be legal and compliant with relevant laws and regulations of China and Hong Kong. In utilizing the proceeds from our overseas financing, as an offshore holding company, we are permitted under PRC laws and regulations to provide funding to our PRC subsidiaries only through loans or capital contributions and to our affiliated entities only through loans, subject to applicable government reporting, registration and approvals. We do not have any present plan to pay any cash dividends on our ordinary shares in the foreseeable future after our initial public offering. We have, from time to time, transferred cash between our PRC subsidiaries to fund their operations, and we do not anticipate any difficulties or limitations on our ability to transfer cash between such subsidiaries. As of the date of this interim report, no cash generated from our PRC subsidiaries has been used to fund operations of any of our non-PRC subsidiaries. We may encounter difficulties in our ability to transfer cash between PRC subsidiaries and non-PRC subsidiaries largely due to various PRC laws and regulations imposed on foreign exchange. However, as long as we are compliant with the procedures for approvals from foreign exchange authorities and banks in China, the relevant laws and regulations in China do not impose limitations on the amount of funds that we can transfer out of China. We currently do not have any cash management policy that dictates the transfer of cash between our subsidiaries.

**INFLATION**

Since our inception, inflation in China has not materially affected our results of operations. According to the National Bureau of Statistics of China, the period-over-period percent changes in the consumer price index for June 2024 and June 2025 were 0.1% and (0.1)%, respectively. Although we have not been materially affected by inflation in the past, we may be affected if China experiences higher rates of inflation in the future.

**TAXATION**

**Cayman Islands**

Under the current laws of the Cayman Islands, we are not subject to tax on income or capital gain. In addition, dividend payments are not subject to withholding taxes in the Cayman Islands.

**Hong Kong**

Entities incorporated in Hong Kong are subject to profits tax in Hong Kong at the rate of 16.5%. According to Tax (Amendment) (No. 3) Ordinance 2018 published by Hong Kong government, effective April 1, 2018, under the two-tiered profits tax rates regime, the profits tax rate for the first HKD2 million of assessable profits will be lowered to 8.25% (half of the rate specified in Schedule 8 to the Inland Revenue Ordinance (IRO)) for corporations. The Group was not subject to Hong Kong profit tax for any period presented as it did not have assessable profit during the periods presented.

**PRC**

Under the Enterprise Income Tax Laws of the PRC, or the EIT Laws, domestic enterprises and Foreign Investment Enterprises, or the FIEs, are usually subject to a unified 25% enterprise income tax rate, while preferential tax rates, tax holidays and tax exemption may be granted on case-by-case basis.

From January 1, 2022 to December 31, 2022, 12.5% of the first RMB 1.0 million of the assessable profit before tax is subject to preferential tax rate of 20% and the 25% of the assessable profit before tax exceeding RMB 1.0 million but not exceeding RMB 3.0 million is subject to preferential tax rate of 20%. From January 1, 2023 to December 31, 2027, 25% of the first RMB 3.0 million of the assessable profit before tax is subject to the tax rate of 20% for the Company's subsidiaries that are qualified as "Small Low-profit Enterprises".

**CRITICAL ACCOUNTING ESTIMATES**

We prepare our interim condensed consolidated financial statements in accordance with U.S. GAAP, which requires us to make judgments, estimates and assumptions. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations would be affected. We base our estimates and assumptions on our own historical data and other assumptions that we believe are reasonable after taking account of our circumstances and expectations for the future based on available information. We evaluate these estimates and assumptions on an ongoing basis.

Our expectations regarding the future are based on available information and assumptions that we believe to be reasonable and accurate, which together form our basis for making judgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application.

The critical accounting policies, judgments and estimates that we believe to have the most significant impact on our interim condensed consolidated financial statements are described below, which should be read in conjunction with our interim condensed consolidated financial statements and accompanying notes and other disclosures.

When reviewing our interim condensed consolidated financial statements, you should consider:

● our selection of critical accounting policies;

● the judgments and other uncertainties affecting the application of such policies;

● the sensitivity of reported results to changes in conditions and assumption.

Our critical accounting policies and practices include the following: (i) revenue recognition; (ii) accounts receivable, net; and (iii) income taxes. See Note 2—Summary of Significant Accounting Policies to our interim condensed consolidated financial statements for the disclosure of these accounting policies. We believe the following accounting estimates involve the most significant judgments used in the preparation of our financial statements.

We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. We consider our critical accounting estimates include (i) the allowance of credit loss for accounts receivables, contract assets and prepaid expenses and other current asset, (ii) impairment of long-lived assets, (iii) valuation allowance of deferred tax assets.

**Impairment of long-lived assets**

All long-lived assets of the Company, which include tangible long-lived assets, right-of-used assets and intangible long-lived assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount of the asset and its fair value.

The judgments and estimates involved in identifying and quantifying the impairment of long-lived assets involve inherent uncertainties, and the measurement of the fair value is dependent on the accuracy of the assumptions used in making the estimates and how those estimates compare to our future operating performance. The key assumptions and estimates include projections of future operating results and cash flows of each asset group that are based on internal budgets and strategic plans, historical performance and growth rate, and the effects of external factors and market conditions. Changes in these estimates and assumptions could materially affect the estimated fair value of each asset group that could result in an impairment charge to reduce the carrying value of long-lived assets, which could be material to our financial position and results of operations.

We recorded RMB1 million and nil impairment of long-lived assets for the six months ended June 30, 2024 and 2025, respectively.

**Valuation allowance of deferred tax assets**

Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. Deferred tax assets are then reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more likely than not that a portion of or all of the deferred tax assets will not be realized.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the Company's deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, valuation allowances of RMB19.0 million and RMB20.3 million (US$2.8 million) were provided for the Company's certain subsidiaries with continuous losses as of December 31, 2024 and June 30, 2025. As of December 31, 2024 and June 30, 2025, there were approximately RMB119.2 million and RMB131.0 million net operating losses carryforwards in certain subsidiaries, respectively. Most of the net operating tax loss carryforwards will expire from remainder of fiscal year 2026 to 2030.

**Recent Accounting Pronouncements**

A list of recently issued accounting pronouncements that are relevant to us is included in Note 2 to our interim condensed consolidated financial statements.

**QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**Credit Risk**

Financial instruments that potentially expose us to concentrations of credit risk consist primarily of cash and accounts receivable. We place substantially all of our cash with financial institutions with high credit ratings and quality in China. In the event of bankruptcy of one of these financial institutions, we may not be able to claim its cash and demand deposits back in full. We continue to monitor the financial strength of the financial institutions. There has been no recent history of default in relation to these financial institutions.

For accounts receivables, credit risk is controlled by the application of credit approvals, limits and monitoring procedures. We manage credit risk through in-house research and analysis of the Chinese economy and the underlying obligors and transaction structures. We identify credit risk collectively based on industry, geography and customer type. In measuring the credit risk of our sales to our customers, we mainly reflect the "probability of default" by the customer on its contractual obligations and considers the current financial position of the customer and the exposures to the customer and its likely future development.

**Foreign Exchange Risk**

Our operations are primarily in China. Our reporting currency is denominated in RMB. We are exposed to currency risk primarily through sales and purchases which give rise to receivables, payables and cash balances that are denominated in currencies other than the functional currency of the operations to which the transactions relate. Thus, revenues and results of operations may be impacted by exchange rate fluctuations between RMB and US$. We incurred and recognized foreign currency exchange loss of RMB0.5 million and RMB1.4 million (US$0.2 million) for the six months ended June 30, 2024 and 2025, respectively, as a result of changes in the exchange rate.

**RECENTLY ADOPTED OR ISSUED ACCOUNTING PRONOUNCEMENTS**

In December 2023, the FASB issued ASU 2023-09, which is an update to Topic 740, Income Taxes. The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The amendments allow investors to better assess, in their capital allocation decisions, how an entity's worldwide operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows. The other amendments in this Update improve the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with U.S. Securities and Exchange Commission (SEC) Regulation S-X 210.4-08(h), Rules of General Application—General Notes to Financial Statements: Income Tax Expense, and (2) removing disclosures that no longer are considered cost beneficial or relevant. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this Update should be applied on a prospective basis. Retrospective application is permitted. The Group is in the process of evaluating the impact of the new guidance on its interim condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires that at each interim and annual reporting period public entities disclose (1) the amounts of purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions; (2) certain amounts that are already required to be disclosed under current GAAP in the same disclosure as the other disaggregation requirements; (3) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; and (4) the total amount of selling expenses and, in annual reporting periods, the definition of selling expenses. In January 2025, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027 for all public business entities. Early adoption is permitted. The amendments is applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. Early adoption is permitted. The Group is currently evaluating the impact on its interim condensed financial statements of adopting this guidance.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Group does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures.

## Exhibit 99.3

**Exhibit 99.3**

**THE COMPANIES ACT (REVISED)**

**OF THE CAYMAN ISLANDS**

**COMPANY LIMITED BY SHARES**

**FOURTH AMENDED AND RESTATED MEMORANDUM OF ASSOCIATION**

**OF**

**Jayud Global Logistics Limited** 

(adopted by a Special Resolution passed at the meeting of the holders of Class A Ordinary Shares and<br> annual general meeting of shareholders of the Company held on 5 May 2025 (the "**AGM**") and effective<br> upon the Share Consolidation and Increase of Share Capital (each as defined in the minutes of the AGM))

1. The name of the Company is Jayud Global Logistics Limited.

2. The Registered Office of the Company will be situated at offices of Vistra (Cayman) Limited, P. O. Box 31119 Grand Pavilion, Hibiscus
Way, 802 West Bay Road, Grand Cayman, KY1 - 1205 Cayman Islands, or at such other location within the Cayman Islands as the Directors
may from time to time determine.

3. The objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out
any object not prohibited by the Companies Act or any other law of the Cayman Islands.

4. The Company shall have and be capable of exercising all the functions of a natural person of full capacity irrespective of any question
of corporate benefit as provided by the Companies Act.

5. The Company will not trade in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the
Company carried on outside the Cayman Islands; provided that nothing in this section shall be construed as to prevent the Company effecting
and concluding contracts in the Cayman Islands, and exercising in the Cayman Islands all of its powers necessary for the carrying on of
its business outside the Cayman Islands.

6. The liability of each Shareholder is limited to the amount, if any, unpaid on the Shares held by such Shareholder.

7. The authorised share capital of the Company is US$2,500,000 divided into 500,000,000 shares of a par value of US$0.005 each, comprising
of (i) 480,000,000 Class A ordinary shares of a par value of US$0.005 each and (ii) 20,000,000 Class B ordinary shares of a par value
of US$0.005 each (however designated) as the board of directors may determine in accordance with Article 9 of the Articles. Subject to
the Companies Act and the Articles, the Company shall have power to redeem or purchase any of its Shares and to increase or reduce its
authorised share capital and to sub-divide or consolidate the said Shares or any of them and to issue all or any part of its capital whether
original, redeemed, increased or reduced with or without any preference, priority, special privilege or other rights or subject to any
postponement of rights or to any conditions or restrictions whatsoever and so that unless the conditions of issue shall otherwise expressly
provide every issue of shares whether stated to be ordinary, preference or otherwise shall be subject to the powers on the part of the
Company hereinbefore provided.

8. The Company has the power contained in the Companies Act to deregister in the Cayman Islands and be registered by way of continuation
in some other jurisdiction.

9. Capitalised terms that are not defined in this Memorandum of Association bear the same meanings as those given in the Articles of
Association of the Company.

**THE COMPANIES ACT (REVISED)**

**OF THE CAYMAN ISLANDS**

**COMPANY LIMITED BY SHARES**

**FOURTH AMENDED AND RESTATED ARTICLES OF ASSOCIATION**

**OF**

**Jayud Global Logistics Limited**

(adopted by a Special Resolution passed at the meeting of the holders of Class A Ordinary Shares and<br> annual general meeting of shareholders of the Company held on 5 May 2025 (the "**AGM**") and effective<br> upon the Share Consolidation and Increase of Share Capital (each as defined in the minutes of the AGM))

**TABLE A**

The regulations contained or incorporated in Table 'A' in the First Schedule of the Companies Act shall not apply to the Company and the following Articles shall comprise the Articles of Association of the Company.

**INTERPRETATION**

1. In these Articles the following defined terms will have the meanings ascribed to them, if not inconsistent with the subject or context:

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| | |
|:---|:---|
| **"Affiliate"** | means in respect of a Person, any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person, and (i) in the case of a natural person, shall include, without limitation, such person's spouse, parents, children, siblings, mother-in-law, father-in-law, brothers-in-law and sisters-in-law, a trust for the benefit of any of the foregoing, and a corporation, partnership or any other entity wholly or jointly owned by any of the foregoing, and (ii) in the case of an entity, shall include a partnership, a corporation or any other entity or any natural person which directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity. The term "control" shall mean the ownership, directly or indirectly, of shares possessing more than fifty per cent (50%) of the voting power of the corporation, partnership or other entity (other than, in the case of a corporation, securities having such power only by reason of the happening of a contingency), or having the power to control the management or elect a majority of members to the board of directors or equivalent decision-making body of such corporation, partnership or other entity; |
| **"Articles"** | means these articles of association of the Company, as amended or substituted from time to time; |
| **"Board"** and **"Board of Directors"** and **"Directors"** | means the directors of the Company for the time being, or as the case may be, the directors assembled as a board or as a committee thereof; |
| **"Chairman"** | means the chairman of the Board of Directors; |
| **"Class"** or **"Classes"** | means any class or classes of Shares as may from time to time be issued by the Company; |
| **"Class A Ordinary Share"** | means a Class A ordinary share of a par value of US$0.005 in the capital of the Company and having the rights provided for in these Articles; |
| **"Class B Ordinary Share"** | means a Class B ordinary share of a par value of US$0.005 in the capital of the Company and having the rights provided for in these Articles; |
| **"Commission"** | means the Securities and Exchange Commission of the United States of America or any other federal agency for the time being administering the Securities Act; |
| **"Communication Facilities"** | means video, video-conferencing, internet or online conferencing applications, telephone or tele-conferencing and/or any other video-communications, internet or online conferencing application or telecommunications facilities by means of which all Persons participating in a meeting are capable of hearing and being heard by each other; |
| **"Company"** | means JAYUD GLOBAL LOGISTICS LIMITED, a Cayman Islands exempted company; |
| **"Companies Act"** | means the Companies Act (As Revised) of the Cayman Islands and any statutory amendment or re-enactment thereof; |
| **"Company's Website"** | means the main corporate/investor relations website of the Company, the address or domain name of which has been disclosed in any registration statement filed by the Company with the Commission in connection with its initial public offering of the Class A Ordinary Shares, or which has otherwise been notified to Shareholders; |
| **"Designated Stock Exchange"** | means the stock exchange in the United States on which any Shares are listed for trading; |

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| | |
|:---|:---|
| **"Designated Stock Exchange Rules"** | means the relevant code, rules and regulations, as amended, from time to time, applicable as a result of the original and continued listing of any Shares on the Designated Stock Exchange; |
| **"electronic"** | has the meaning given to it in the Electronic Transactions Act and any amendment thereto or re-enactments thereof for the time being in force and includes every other law incorporated therewith or substituted therefor; |
| **"electronic communication"** | means electronic posting to the Company's Website, transmission to any number, address or internet website or other electronic delivery methods as otherwise decided and approved by not less than two-thirds of the vote of the Board; |

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| | |
|:---|:---|
| **"Electronic Transactions Act"** | means the Electronic Transactions Act (As Revised) of the Cayman Islands and any statutory amendment or re-enactment thereof; |
| **"electronic record"** | has the meaning given to it in the Electronic Transactions Act and any amendment thereto or re-enactments thereof for the time being in force and includes every other law incorporated therewith or substituted therefor; |
| **"Founder"** | means Geng Xiaogang (耿小刚), a citizen of the People's Republic of China; |
| **"Founder Affiliate"** | (a) each of the Founder's legal spouse, parents, children and other lineal descendants (each, an "Immediate Family Member"); and (b) any trust for the benefit of the Founder and/or any of the Immediate Family Members as defined under (a), and any corporation, partnership or any other entity ultimately controlled by the Founder and/or any of the Immediate Family Members as defined under (a) through possession of voting power or investment power over Shares held by any such entity. For the avoidance of doubt, the terms "voting power" and "investment power" shall have such meanings as defined under Rule 13d-3 of the U.S. Securities Exchange Act of 1934, as amended; |
| **"Memorandum of Association"** | means the memorandum of association of the Company, as amended or substituted from time to time; |
| **"Ordinary Resolution"** | means a resolution: |
| (a) | passed by a simple majority of the votes cast by such Shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy or, in the case of corporations, by their duly authorised representatives, at a general meeting of the Company held in accordance with these Articles; or |
| (b) | approved in writing by all of the Shareholders entitled to vote at a general meeting of the Company in one or more instruments each signed by one or more of the Shareholders and the effective date of the resolution so adopted shall be the date on which the instrument, or the last of such instruments, if more than one, is executed; |
| **"Ordinary Share"** | means a Class A Ordinary Share or a Class B Ordinary Share; |
| **"paid up"** | means paid up as to the par value in respect of the issue of any Shares and includes credited as paid up; |
| **"Person"** | means any natural person, firm, company, joint venture, partnership, corporation, association or other entity (whether or not having a separate legal personality) or any of them as the context so requires; |
| **"Present"** | means in respect of any Person, such Person's presence at a general meeting of Shareholders (or any meeting of the holders of any Class of Shares), which may be satisfied by means of such Person or, if a corporation or other non-natural Person, its duly authorised representative (or, in the case of any Shareholder, a proxy which has been validly appointed by such Shareholder in accordance with these Articles), being: (a) physically present at the meeting; or (b) in the case of any meeting at which Communication Facilities are permitted in accordance with these Articles, including any Virtual Meeting, connected by means of the use of such Communication Facilities; |

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| | |
|:---|:---|
| **"Register"** | means the register of Members of the Company maintained in accordance with the Companies Act; |
| **"Registered Office"** | means the registered office of the Company as required by the Companies Act; |
| **"Seal"** | means the common seal of the Company (if adopted) including any facsimile thereof; |
| **"Secretary"** | means any Person appointed by the Directors to perform any of the duties of the secretary of the Company; |
| **"Securities Act"** | means the Securities Act of 1933 of the United States of America, as amended, or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time; |
| **"Share"** | means a share in the share capital of the Company. All references to "Shares" herein shall be deemed to be Shares of any or all Classes as the context may require. For the avoidance of doubt in these Articles the expression "Share" shall include a fraction of a Share; |
| **"Shareholder" or "Member"** | means a Person who is registered as the holder of one or more Shares in the Register; |
| **"Share Premium Account"** | means the share premium account established in accordance with these Articles and the Companies Act; |
| **"signed"** | means bearing a signature or representation of a signature affixed by mechanical means or an electronic symbol or process attached to or logically associated with an electronic communication and executed or adopted by a Person with the intent to sign the electronic communication; |
| **"Special Resolution"** | means a special resolution of the Company passed in accordance with the Companies Act, being a resolution: |
| (a) | passed by not less than two-thirds of the votes cast by such Shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy or, in the case of corporations, by their duly authorised representatives, at a general meeting of the Company of which notice specifying the intention to propose the resolution as a special resolution has been duly given; or |
| (b) | approved in writing by all of the Shareholders entitled to vote at a general meeting of the Company in one or more instruments each signed by one or more of the Shareholders and the effective date of the special resolution so adopted shall be the date on which the instrument or the last of such instruments, if more than one, is executed; |
| **"Treasury Share"** | means a Share held in the name of the Company as a treasury share in accordance with the Companies Act; |

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| | |
|:---|:---|
| **"United States"** | means the United States of America, its territories, its possessions and all areas subject to its jurisdiction; and |
| **"Virtual Meeting"** | means any general meeting of the Shareholders (or any meeting of the holders of any Class of Shares) at which the Shareholders (and any other permitted participants of such meeting, including without limitation the chairman of the meeting and any Directors) are permitted to attend and participate solely by means of Communication Facilities. |

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2. In these Articles, save where the context requires otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the singular number shall include the plural number and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words importing the masculine gender only shall include the feminine gender and any Person as the context may require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the word "may" shall be construed as permissive and the word "shall" shall be construed as imperative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reference to a dollar or dollars (or US$) and to a cent or cents is reference to dollars and cents of the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) reference to a statutory enactment shall include reference to any amendment or re-enactment thereof for the time being in force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) reference to any determination by the Directors shall be construed as a determination by the Directors in their sole and absolute
discretion and shall be applicable either generally or in any particular case;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) reference to "in writing" shall be construed as written or represented by any means reproducible in writing, including
any form of print, lithograph, email, facsimile, photograph or telex or represented by any other substitute or format for storage or transmission
for writing including in the form of an electronic record or partly one and partly another;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any requirements as to delivery under the Articles include delivery in the form of an electronic record or an electronic communication;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any requirements as to execution or signature under the Articles, including the execution of the Articles themselves, can be satisfied
in the form of an electronic signature as defined in the Electronic Transactions Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Sections 8 and 19(3) of the Electronic Transactions Act shall not apply.

3. Subject to the last two preceding Articles, any words defined in the Companies Act shall, if not inconsistent with the subject or
context, bear the same meaning in these Articles.

**PRELIMINARY**

4. The business of the Company may be conducted as the Directors see fit.

5. The Registered Office shall be at such address in the Cayman Islands as the Directors may from time to time determine. The Company
may in addition establish and maintain such other offices and places of business and agencies in such places as the Directors may from
time to time determine.

6. The expenses incurred in the formation of the Company and in connection with the offer for subscription and issue of Shares shall
be paid by the Company. Such expenses may be amortised over such period as the Directors may determine and the amount so paid shall be
charged against income and/or capital in the accounts of the Company as the Directors shall determine.

7. The Directors shall keep, or cause to be kept, the Register at such place as the Directors may from time to time determine and, in
the absence of any such determination, the Register shall be kept at the Registered Office.

**SHARES**

8. Subject to these Articles, all Shares for the time being unissued shall be under the control of the Directors who may, in their absolute
discretion and without the approval of the Members, cause the Company to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue, allot and dispose of Shares (including, without limitation, preferred shares) (whether in certificated form or non-certificated
form) to such Persons, in such manner, on such terms and having such rights and being subject to such restrictions as they may from time
to time determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) grant rights over Shares or other securities to be issued in one or more classes or series as they deem necessary or appropriate and
determine the designations, powers, preferences, privileges and other rights attaching to such Shares or securities, including dividend
rights, voting rights, conversion rights, terms of redemption and liquidation preferences, any or all of which may be greater than the
powers, preferences, privileges and rights associated with the then issued and outstanding Shares, at such times and on such other terms
as they think proper; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) grant options with respect to Shares and issue warrants or similar instruments with respect thereto.

9. The Directors may authorise the division of Shares into any number of Classes and the different Classes shall be authorised, established
and designated (or re-designated as the case may be) and the variations in the relative rights (including, without limitation, voting,
dividend and redemption rights), restrictions, preferences, privileges and payment obligations as between the different Classes (if any)
may be fixed and determined by the Directors or by an Ordinary Resolution. The Directors may issue Shares with such preferred or other
rights, all or any of which may be greater than the rights of Ordinary Shares, at such time and on such terms as they may think appropriate.
Notwithstanding Article 17, the Directors may issue from time to time, out of the authorised share capital of the Company (other than
the authorised but unissued Ordinary Shares), series of preferred shares in their absolute discretion and without approval of the Members;
provided, however, before any preferred shares of any such series are issued, the Directors shall by resolution of Directors determine,
with respect to any series of preferred shares, the terms and rights of that series, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the designation of such series, the number of preferred shares to constitute such series and the subscription price thereof if different
from the par value thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether the preferred shares of such series shall have voting rights, in addition to any voting rights provided by law, and, if so,
the terms of such voting rights, which may be general or limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the dividends, if any, payable on such series, whether any such dividends shall be cumulative, and, if so, from what dates, the conditions
and dates upon which such dividends shall be payable, and the preference or relation which such dividends shall bear to the dividends
payable on any shares of any other class or any other series of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whether the preferred shares of such series shall be subject to redemption by the Company, and, if so, the times, prices and other
conditions of such redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) whether the preferred shares of such series shall have any rights to receive any part of the assets available for distribution amongst
the Members upon the liquidation of the Company, and, if so, the terms of such liquidation preference, and the relation which such liquidation
preference shall bear to the entitlements of the holders of shares of any other class or any other series of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) whether the preferred shares of such series shall be subject to the operation of a retirement or sinking fund and, if so, the extent
to and manner in which any such retirement or sinking fund shall be applied to the purchase or redemption of the preferred shares of such
series for retirement or other corporate purposes and the terms and provisions relative to the operation thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) whether the preferred shares of such series shall be convertible into, or exchangeable for, shares of any other class or any other
series of preferred shares or any other securities and, if so, the price or prices or the rate or rates of conversion or exchange and
the method, if any, of adjusting the same, and any other terms and conditions of conversion or exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the limitations and restrictions, if any, to be effective while any preferred shares of such series are outstanding upon the payment
of dividends or the making of other distributions on, and upon the purchase, redemption or other acquisition by the Company of, the existing
shares or shares of any other class of shares or any other series of preferred shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions or restrictions, if any, upon the creation of indebtedness of the Company or upon the issue of any additional shares,
including additional shares of such series or of any other class of shares or any other series of preferred shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any other powers, preferences and relative, participating, optional and other special rights, and any qualifications, limitations
and restrictions thereof;

and, for such purposes, the Directors may reserve an appropriate number of Shares for the time being unissued. The Company shall not issue Shares to bearer.

10. The Company may insofar as may be permitted by law, pay a commission to any Person in consideration of his subscribing or agreeing
to subscribe whether absolutely or conditionally for any Shares. Such commissions may be satisfied by the payment of cash or the lodgment
of fully or partly paid-up Shares or partly in one way and partly in the other. The Company may also pay such brokerage as may be lawful
on any issue of Shares.

11. The Directors may refuse to accept any application for Shares, and may accept any application in whole or in part, for any reason
or for no reason.

**CLASS A ORDINARY SHARES AND CLASS B ORDINARY SHARES**

12. Holders of Class A Ordinary Shares and Class B Ordinary Shares shall at all times vote together as one class on all resolutions submitted
to a vote by the Members. Each Class A Ordinary Share shall entitle the holder thereof to one (1) vote on all matters subject to vote
at general meetings of the Company, and each Class B Ordinary Share shall entitle the holder thereof to fifty (50) votes on all matters
subject to vote at general meetings of the Company.

13. Each Class B Ordinary Share is convertible into one (1) Class A Ordinary Share at any time at the option of the holder thereof. The
right to convert shall be exercisable by the holder of the Class B Ordinary Share delivering a written notice to the Company that such
holder elects to convert a specified number of Class B Ordinary Shares into Class A Ordinary Shares. In no event shall Class A Ordinary
Shares be convertible into Class B Ordinary Shares.

14. Any conversion of Class B Ordinary Shares into Class A Ordinary Shares pursuant to these Articles shall be effected by means of the
re-designation and re-classification of each relevant Class B Ordinary Share as a Class A Ordinary Share. Such conversion shall become
effective (i) in the case of any conversion effected pursuant to Article 13, forthwith upon the receipt by the Company of the written
notice delivered to the Company as described in Article 13 (or at such later date as may be specified in such notice) and upon entries
being made in the Register to record the re-designation and re-classification of the relevant Class B Ordinary Shares as Class A Class
Shares, or (ii) in the case of any automatic conversion effected pursuant to Article 15, forthwith upon occurrence of the event specified
in Article 15 which triggers such automatic conversion, and upon entries being made in the Register to record the re-designation and re-classification
of the relevant Class B Ordinary Shares as Class A Ordinary Shares at the relevant time.

15. Upon any sale, transfer, assignment or disposition of any Class B Ordinary Share by a Shareholder to any Person who is not the Founder,
an Affiliate of the Founder, or a Founder Affiliate, or upon a change of control of the ultimate beneficial ownership of any Class B Ordinary
Share to any Person who is not the Founder, an Affiliate of the Founder, or a Founder Affiliate, such Class B Ordinary Share shall be
automatically and immediately converted into the same number of Class A Ordinary Share. For the avoidance of doubt, (i) a sale, transfer,
assignment or disposition shall be effective upon the Company's registration of such sale, transfer, assignment or disposition in
its Register; and (ii) the creation of any pledge, charge, encumbrance or other third party right of whatever description on any Class
B Ordinary Shares to secure a holder's contractual or legal obligations shall not be deemed as a sale, transfer, assignment or disposition
unless and until any such pledge, charge, encumbrance or other third party right is enforced and results in the third party holding legal
title to the relevant Class B Ordinary Shares, in which case all the related Class B Ordinary Shares shall be automatically converted
into the same number of Class A Ordinary Shares. For purpose of this Article 15, beneficial ownership shall have the meaning set forth
in Rule 13d-3 under the United States Securities Exchange Act of 1934, as amended.

16. Save and except for voting rights and conversion rights as set out in Articles 12 to 15 (inclusive), the Class A Ordinary Shares and
the Class B Ordinary Shares shall rank pari passu with one another and shall have the same rights, preferences, privileges and restrictions.

**MODIFICATION OF RIGHTS**

17. Whenever the capital of the Company is divided into different Classes the rights attached to any such Class may, subject to any rights
or restrictions for the time being attached to any Class, only be materially and adversely varied with the consent in writing of the holders
of at least two-thirds of the issued Shares of that Class or with the sanction of an Ordinary Resolution passed at a separate meeting
of the holders of the Shares of that Class. To every such separate meeting all the provisions of these Articles relating to general meetings
of the Company or to the proceedings thereat shall, mutatis mutandis, apply, except that the necessary quorum shall be one or more Persons
holding or representing by proxy at least one-third in nominal or par value amount of the issued Shares of the relevant Class (but so
that if at any adjourned meeting of such holders a quorum as above defined is not Present, those Shareholders who are Present shall form
a quorum) and that, subject to any rights or restrictions for the time being attached to the Shares of that Class, every Shareholder of
the Class shall on a poll have one vote for each Share of the Class held by him. For the purposes of this Article the Directors may treat
all the Classes or any two or more Classes as forming one Class if they consider that all such Classes would be affected in the same way
by the proposals under consideration, but in any other case shall treat them as separate Classes.

18. The rights conferred upon the holders of the Shares of any Class issued with preferred or other rights shall not, subject to any rights
or restrictions for the time being attached to the Shares of that Class, be deemed to be materially and adversely varied by, inter alia,
the creation, allotment or issue of further Shares ranking pari passu with or subsequent to them or the redemption or purchase of any
Shares of any Class by the Company. The rights of the holders of Shares shall not be deemed to be materially and adversely varied by the
creation or issue of Shares with preferred or other rights including, without limitation, the creation of Shares with enhanced or weighted
voting rights.

**CERTIFICATES**

19. Every Person whose name is entered as a Member in the Register may, without payment and upon its written request, request a certificate
within two calendar months after allotment or lodgment of transfer (or within such other period as the conditions of issue shall provide)
in the form determined by the Directors. All certificates shall specify the Share or Shares held by that Person, provided that in respect
of a Share or Shares held jointly by several Persons the Company shall not be bound to issue more than one certificate, and delivery of
a certificate for a Share to one of several joint holders shall be sufficient delivery to all. All certificates for Shares shall be delivered
personally or sent through the post addressed to the Member entitled thereto at the Member's registered address as appearing in
the Register.

20. Every share certificate of the Company shall bear legends required under the applicable laws, including the Securities Act.

21. Any two or more certificates representing Shares of any one Class held by any Member may at the Member's request be cancelled
and a single new certificate for such Shares issued in lieu on payment (if the Directors shall so require) of one dollar (US$1.00) or
such smaller sum as the Directors shall determine.

22. If a share certificate shall be damaged or defaced or alleged to have been lost, stolen or destroyed, a new certificate representing
the same Shares may be issued to the relevant Member upon request, subject to delivery up of the old certificate or (if alleged to have
been lost, stolen or destroyed) compliance with such conditions as to evidence and indemnity and the payment of out-of-pocket expenses
of the Company in connection with the request as the Directors may think fit.

23. In the event that Shares are held jointly by several Persons, any request may be made by any one of the joint holders and if so made
shall be binding on all of the joint holders.

**FRACTIONAL SHARES**

24. The Directors may issue fractions of a Share and, if so issued, a fraction of a Share shall be subject to and carry the corresponding
fraction of liabilities (whether with respect to nominal or par value, premium, contributions, calls or otherwise), limitations, preferences,
privileges, qualifications, restrictions, rights (including, without prejudice to the generality of the foregoing, voting and participation
rights) and other attributes of a whole Share. If more than one fraction of a Share of the same Class is issued to or acquired by the
same Shareholder such fractions shall be accumulated.

**LIEN**

25. The Company has a first and paramount lien on every Share (whether or not fully paid) for all amounts (whether presently payable or
not) payable at a fixed time or called in respect of that Share. The Company also has a first and paramount lien on every Share registered
in the name of a Person indebted or under liability to the Company (whether he is the sole registered holder of a Share or one of two
or more joint holders) for all amounts owing by him or his estate to the Company (whether or not presently payable). The Directors may
at any time declare a Share to be wholly or in part exempt from the provisions of this Article. The Company's lien on a Share extends
to any amount payable in respect of it, including but not limited to dividends.

26. The Company may sell, in such manner as the Directors in their absolute discretion think fit, any Share on which the Company has a
lien, but no sale shall be made unless an amount in respect of which the lien exists is presently payable nor until the expiration of
fourteen (14) calendar days after a notice in writing, demanding payment of such part of the amount in respect of which the lien exists
as is presently payable, has been given to the registered holder for the time being of the Share, or the Persons entitled thereto by reason
of his death or bankruptcy.

27. For giving effect to any such sale the Directors may authorise a Person to transfer the Shares sold to the purchaser thereof. The
purchaser shall be registered as the holder of the Shares comprised in any such transfer and he shall not be bound to see to the application
of the purchase money, nor shall his title to the Shares be affected by any irregularity or invalidity in the proceedings in reference
to the sale.

28. The proceeds of the sale after deduction of expenses, fees and commissions incurred by the Company shall be received by the Company
and applied in payment of such part of the amount in respect of which the lien exists as is presently payable, and the residue shall (subject
to a like lien for sums not presently payable as existed upon the Shares prior to the sale) be paid to the Person entitled to the Shares
immediately prior to the sale.

**CALLS ON SHARES**

29. Subject to the terms of the allotment, the Directors may from time to time make calls upon the Shareholders in respect of any moneys
unpaid on their Shares, and each Shareholder shall (subject to receiving at least fourteen (14) calendar days' notice specifying
the time or times of payment) pay to the Company at the time or times so specified the amount called on such Shares. A call shall be deemed
to have been made at the time when the resolution of the Directors authorising such call was passed.

30. The joint holders of a Share shall be jointly and severally liable to pay calls in respect thereof.

31. If a sum called in respect of a Share is not paid before or on the day appointed for payment thereof, the Person from whom the sum
is due shall pay interest upon the sum at the rate of eight percent per annum from the day appointed for the payment thereof to the time
of the actual payment, but the Directors shall be at liberty to waive payment of that interest wholly or in part.

32. The provisions of these Articles as to the liability of joint holders and as to payment of interest shall apply in the case of non-payment
of any sum which, by the terms of issue of a Share, becomes payable at a fixed time, whether on account of the amount of the Share, or
by way of premium, as if the same had become payable by virtue of a call duly made and notified.

33. The Directors may make arrangements with respect to the issue of partly paid Shares for a difference between the Shareholders, or
the particular Shares, in the amount of calls to be paid and in the times of payment.

34. The Directors may, if they think fit, receive from any Shareholder willing to advance the same all or any part of the moneys uncalled
and unpaid upon any partly paid Shares held by him, and upon all or any of the moneys so advanced may (until the same would, but for such
advance, become presently payable) pay interest at such rate (not exceeding without the sanction of an Ordinary Resolution, eight percent
per annum) as may be agreed upon between the Shareholder paying the sum in advance and the Directors. No such sum paid in advance of calls
shall entitle the Member paying such sum to any portion of a dividend declared in respect of any period prior to the date upon which such
sum would, but for such payment, become presently payable.

**FORFEITURE OF SHARES**

35. If a Shareholder fails to pay any call or instalment of a call in respect of partly paid Shares on the day appointed for payment,
the Directors may, at any time thereafter during such time as any part of such call or instalment remains unpaid, serve a notice on him
requiring payment of so much of the call or instalment as is unpaid, together with any interest which may have accrued.

36. The notice shall name a further day (not earlier than the expiration of fourteen (14) calendar days from the date of the notice) on
or before which the payment required by the notice is to be made, and shall state that in the event of non-payment at or before the time
appointed, the Shares in respect of which the call was made will be liable to be forfeited.

37. If the requirements of any such notice as aforesaid are not complied with, any Share in respect of which the notice has been given
may at any time thereafter, before the payment required by notice has been made, be forfeited by a resolution of the Directors to that
effect.

38. A forfeited Share may be sold or otherwise disposed of on such terms and in such manner as the Directors think fit, and at any time
before a sale or disposition the forfeiture may be cancelled on such terms as the Directors think fit.

39. A Person whose Shares have been forfeited shall cease to be a Shareholder in respect of the forfeited Shares, but shall, notwithstanding,
remain liable to pay to the Company all moneys which at the date of forfeiture were payable by him to the Company in respect of the Shares
forfeited, but his liability shall cease if and when the Company receives payment in full of the amount unpaid on the Shares forfeited.

40. A certificate in writing under the hand of a Director that a Share has been duly forfeited on a date stated in the certificate shall
be conclusive evidence of the facts in the declaration as against all Persons claiming to be entitled to the Share.

41. The Company may receive the consideration, if any, given for a Share on any sale or disposition thereof pursuant to the provisions
of these Articles as to forfeiture and may execute a transfer of the Share in favour of the Person to whom the Share is sold or disposed
of and that Person shall be registered as the holder of the Share and shall not be bound to see to the application of the purchase money,
if any, nor shall his title to the Shares be affected by any irregularity or invalidity in the proceedings in reference to the disposition
or sale.

42. The provisions of these Articles as to forfeiture shall apply in the case of non-payment of any sum which by the terms of issue of
a Share becomes due and payable, whether on account of the amount of the Share, or by way of premium, as if the same had been payable
by virtue of a call duly made and notified.

**TRANSFER OF SHARES**

43. The instrument of transfer of any Share shall be in writing and in any usual or common form or such other form as the Directors may,
in their absolute discretion, approve and be executed by or on behalf of the transferor and if in respect of a nil or partly paid up Share,
or if so required by the Directors, shall also be executed on behalf of the transferee and shall be accompanied by the certificate (if
any) of the Shares to which it relates and such other evidence as the Directors may reasonably require to show the right of the transferor
to make the transfer. The transferor shall be deemed to remain a Shareholder until the name of the transferee is entered in the Register
in respect of the relevant Shares.

44. (a) The Directors may in their absolute discretion decline to register any transfer of Shares which is not fully paid up or on which
the Company has a lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Directors may also decline to register any transfer of any Share unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the instrument of transfer is lodged with the Company, accompanied by the certificate for the Shares to which it relates and such
other evidence as the Board may reasonably require to show the right of the transferor to make the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the instrument of transfer is in respect of only one Class of Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the instrument of transfer is properly stamped, if required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of a transfer to joint holders, the number of joint holders to whom the Share is to be transferred does not exceed four;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a fee of such maximum sum as the Designated Stock Exchange may determine to be payable, or such lesser sum as the Board of Directors
may from time to time require, is paid to the Company in respect thereof.

45. The registration of transfers may, on ten (10) calendar days' notice being given by advertisement in such one or more newspapers,
by electronic means or by any other means in accordance with the Designated Stock Exchange Rules, be suspended and the Register closed
at such times and for such periods as the Directors may, in their absolute discretion, from time to time determine, provided always that
such registration of transfer shall not be suspended nor the Register closed for more than thirty (30) calendar days in any calendar year.

46. All instruments of transfer that are registered shall be retained by the Company. If the Directors refuse to register a transfer of
any Shares, they shall within three calendar months after the date on which the transfer was lodged with the Company send notice of the
refusal to each of the transferor and the transferee.

**TRANSMISSION OF SHARES**

47. The legal personal representative of a deceased sole holder of a Share shall be the only Person recognised by the Company as having
any title to the Share. In the case of a Share registered in the name of two or more holders, the survivors or survivor, or the legal
personal representatives of the deceased survivor, shall be the only Person recognised by the Company as having any title to the Share.

48. Any Person becoming entitled to a Share in consequence of the death or bankruptcy of a Shareholder shall, upon such evidence being
produced as may from time to time be required by the Directors, have the right either to be registered as a Shareholder in respect of
the Share or, instead of being registered himself, to make such transfer of the Share as the deceased or bankrupt Person could have made;
but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of
a transfer of the Share by the deceased or bankrupt Person before the death or bankruptcy.

49. A Person becoming entitled to a Share by reason of the death or bankruptcy of a Shareholder shall be entitled to the same dividends
and other advantages to which he would be entitled if he were the registered Shareholder, except that he shall not, before being registered
as a Shareholder in respect of the Share, be entitled in respect of it to exercise any right conferred by membership in relation to meetings
of the Company, provided however, that the Directors may at any time give notice requiring any such Person to elect either to be registered
himself or to transfer the Share, and if the notice is not complied with within ninety (90) calendar days, the Directors may thereafter
withhold payment of all dividends, bonuses or other monies payable in respect of the Share until the requirements of the notice have been
complied with.

**REGISTRATION OF EMPOWERING INSTRUMENTS**

50. The Company shall be entitled to charge a fee not exceeding one dollar (US$1.00) on the registration of every probate, letters of
administration, certificate of death or marriage, power of attorney, notice in lieu of distringas, or other instrument.

**ALTERATION OF SHARE CAPITAL**

51. The Company may from time to time by Ordinary Resolution increase the share capital by such sum, to be divided into Shares of such
Classes and amount, as the resolution shall prescribe.

52. The Company may by Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase its share capital by new Shares of such amount as it thinks expedient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into Shares of a larger amount than its existing Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subdivide its Shares, or any of them, into Shares of an amount smaller than that fixed by the Memorandum, provided that in the subdivision
the proportion between the amount paid and the amount, if any, unpaid on each reduced Share shall be the same as it was in case of the
Share from which the reduced Share is derived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cancel any Shares that, at the date of the passing of the resolution, have not been taken or agreed to be taken by any Person and
diminish the amount of its share capital by the amount of the Shares so cancelled.

53. The Company may by Special Resolution reduce its share capital and any capital redemption reserve in any manner authorised by the
Companies Act.

**REDEMPTION, PURCHASE AND SURRENDER OF SHARES**

54. Subject to the provisions of the Companies Act and these Articles, the Company may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue Shares that are to be redeemed or are liable to be redeemed at the option of the Shareholder or the Company. The redemption
of Shares shall be effected in such manner and upon such terms as may be determined, before the issue of such Shares, by either the Board
or by the Shareholders by Ordinary Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase its own Shares (including any redeemable Shares) on such terms and in such manner and terms as have been approved by the
Board or by the Shareholders by Ordinary Resolution, or are otherwise authorised by these Articles; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) make a payment in respect of the redemption or purchase of its own Shares in any manner permitted by the Companies Act, including
out of capital.

55. The purchase of any Share shall not oblige the Company to purchase any other Share other than as may be required pursuant to applicable
law and any other contractual obligations of the Company.

56. The holder of the Shares being purchased shall be bound to deliver up to the Company the certificate(s) (if any) thereof for cancellation
and thereupon the Company shall pay to him the purchase or redemption monies or consideration in respect thereof.

57. The Directors may accept the surrender for no consideration of any fully paid Share.

**TREASURY SHARES**

58. The Directors may, prior to the purchase, redemption or surrender of any Share, determine that such Share shall be held as a Treasury
Share.

59. The Directors may determine to cancel a Treasury Share or transfer a Treasury Share on such terms as they think proper (including,
without limitation, for nil consideration).

**GENERAL MEETINGS**

60. All general meetings other than annual general meetings shall be called extraordinary general meetings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61. 2) The Company may (but shall not be obliged to) in each calendar year hold a general meeting as its annual general meeting and shall specify the meeting as such in the notices calling it. The annual general meeting shall be held at such time and place as may be determined by the Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At these meetings the report of the Directors (if any) shall be presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62. 3) The Chairman or the Directors (acting by a resolution of the Board) may call general meetings, and they shall on a Shareholders' requisition forthwith proceed to convene an extraordinary general meeting of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Shareholders' requisition is a requisition of Members holding at the date of deposit of the requisition Shares which carry in aggregate not less than one-third (1/3) of all votes attaching to all the issued and outstanding Shares that as at the date of the deposit carry the right to vote at general meetings of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The requisition must state the objects of the meeting and must be signed by the requisitionists and deposited at the Registered Office, and may consist of several documents in like form each signed by one or more requisitionists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If there are no Directors as at the date of the deposit of the Shareholders' requisition, or if the Directors do not within twenty-one (21) calendar days from the date of the deposit of the requisition duly proceed to convene a general meeting to be held within a further forty-five (45) calendar days, the requisitionists, or any of them representing more than one-half (1/2) of the total voting rights of all of them, may themselves convene a general meeting, but any meeting so convened shall not be held after the expiration of three (3) calendar months after the expiration of the said forty-five (45) calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A general meeting convened as aforesaid by requisitionists shall be convened in the same manner as nearly as possible as that in which general meetings are to be convened by Directors.

**NOTICE OF GENERAL MEETINGS**

63. At least seven (7) calendar days' notice shall be given for any general meeting. Every notice shall be exclusive of the day
on which it is given or deemed to be given and of the day for which it is given and shall specify the place, the day and the hour of the
meeting and the general nature of the business and shall be given in the manner hereinafter mentioned or in such other manner if any as
may be prescribed by the Company, provided that a general meeting of the Company shall, whether or not the notice specified in this Article
has been given and whether or not the provisions of these Articles regarding general meetings have been complied with, be deemed to have
been duly convened if it is so agreed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an annual general meeting, by all the Shareholders (or their proxies) entitled to attend and vote thereat; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an extraordinary general meeting, by holders of two-thirds (2/3) of the Shareholders having a right to attend and vote
at the meeting, Present at the meeting or, in the case of a corporation or other non-natural person, represented by its duly authorised
representative or proxy.

64. The accidental omission to give notice of a meeting to or the non-receipt of a notice of a meeting by any Shareholder shall not invalidate
the proceedings at any meeting.

**PROCEEDINGS AT GENERAL MEETINGS**

65. No business except for the appointment of a chairman for the meeting shall be transacted at any general meeting unless a quorum of
Shareholders is Present at the time when the meeting proceeds to business. One or more Shareholders holding Shares which carry in aggregate
(or representing by proxy) not less than one-third (1/3) of all votes attaching to all Shares in issue and entitled to vote at such general
meeting Present, shall be a quorum for all purposes.

66. If within half an hour from the time appointed for the meeting a quorum is not Present, the meeting shall be dissolved.

67. If the Directors wish to make this facility available for a specific general meeting or all general meetings of the Company, attendance
and participation in any general meeting of the Company may be by means of Communication Facilities. Without limiting the generality of
the foregoing, the Directors may determine that any general meeting may be held as a Virtual Meeting. The notice of any general meeting
at which Communication Facilities will be utilised (including any Virtual Meeting) must disclose the Communication Facilities that will
be used, including the procedures to be followed by any Shareholder or other participant of the meeting who wishes to utilise such Communication
Facilities for the purposes of attending and participating in such meeting, including attending and casting any vote thereat.

68. The Chairman, if any, shall preside as chairman at every general meeting of the Company.

69. If there is no such Chairman, or if at any general meeting he is not Present within fifteen minutes after the time appointed for holding
the meeting or is unwilling to act as chairman of the meeting, any Director or Person nominated by the Directors shall preside as chairman
of that meeting, failing which the Shareholders Present shall choose any Person Present to be chairman of that meeting.

70. The chairman of any general meeting (including any Virtual Meeting) shall be entitled to attend and participate at any such general
meeting by means of Communication Facilities, and to act as the chairman of such general meeting, in which event the following provisions
shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The chairman of the meeting shall be deemed to be Present at the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Communication Facilities are interrupted or fail for any reason to enable the chairman of the meeting to hear and be heard
by all other Persons participating in the meeting, then the other Directors Present at the meeting shall choose another Director Present
to act as chairman of the meeting for the remainder of the meeting; provided that if no other Director is Present at the meeting, or if
all the Directors Present decline to take the chair, then the meeting shall be automatically adjourned to the same day in the next week
and at such time and place as shall be decided by the Board of Directors.

71. The chairman of any general meeting at which a quorum is Present may with the consent of the meeting (and shall if so directed by
the meeting) adjourn the meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting
other than the business left unfinished at the meeting from which the adjournment took place. When a meeting, or adjourned meeting, is
adjourned for fourteen (14) calendar days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.
Save as aforesaid it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting.

72. The Directors may cancel or postpone any duly convened general meeting at any time prior to such meeting, except for general meetings
requisitioned by the Shareholders in accordance with these Articles, for any reason or for no reason, upon notice in writing to Shareholders.
A postponement may be for a stated period of any length or indefinitely as the Directors may determine.

73. At any general meeting a resolution put to the vote of the meeting shall be decided by a poll.

74. A poll shall be taken in such manner as the chairman of the meeting directs, and the result of the poll shall be deemed to be the
resolution of the meeting.

75. All questions submitted to a meeting shall be decided by an Ordinary Resolution except where a greater majority is required by these
Articles or by the Companies Act. In the case of an equality of votes, the chairman of the meeting shall be entitled to a second or casting
vote.

76. A poll shall be taken forthwith or at such time as the chairman of the meeting directs.

**VOTES OF SHAREHOLDERS**

77. Subject to any rights and restrictions for the time being attached to any Share, on a poll every Shareholder Present at the meeting
shall have one (1) vote for each Class A Ordinary Share and fifty (50) votes for each Class B Ordinary Share of which he is the holder.

78. In the case of joint holders the vote of the senior who tenders a vote whether in person or by proxy (or, if a corporation or other
non-natural person, by its duly authorised representative or proxy) shall be accepted to the exclusion of the votes of the other joint
holders and for this purpose seniority shall be determined by the order in which the names stand in the Register.

79. Shares carrying the right to vote that are held by a Shareholder of unsound mind, or in respect of whom an order has been made by
any court having jurisdiction in lunacy, may be voted by his committee, or other Person in the nature of a committee appointed by that
court, and any such committee or other Person may vote in respect of such Shares by proxy.

80. No Shareholder shall be entitled to vote at any general meeting of the Company unless all calls, if any, or other sums presently payable
by him in respect of Shares carrying the right to vote held by him have been paid.

81. On a poll votes may be given either personally or by proxy.

82. Each Shareholder, other than a recognised clearing house (or its nominee(s)) or depositary (or its nominee(s)), may only appoint one
proxy on a poll. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised
in writing or, if the appointor is a corporation, either under Seal or under the hand of an officer or attorney duly authorised. A proxy
need not be a Shareholder.

83. An instrument appointing a proxy may be in any usual or common form or such other form as the Directors may approve.

84. The instrument appointing a proxy shall be deposited at the Registered Office or at such other place as is specified for that purpose
in the notice convening the meeting, or in any instrument of proxy sent out by the Company not less than 48 hours before the time for
holding the meeting or adjourned meeting at which the person named in the instrument proposes to vote, provided that the Directors may
in the notice convening the meeting, or in an instrument of proxy sent out by the Company, direct that the instrument appointing a proxy
may be deposited at such other time (no later than the time for holding the meeting or adjourned meeting) at the Registered Office or
at such other place as is specified for that purpose in the notice convening the meeting, or in any instrument of proxy sent out by the
Company. The chairman of the meeting may in any event at his discretion direct that an instrument of proxy shall be deemed to have been
duly deposited. An instrument of proxy that is not deposited in the manner permitted shall be invalid.

85. [Reserved].

86. A resolution in writing signed by all the Shareholders for the time being entitled to receive notice of and to attend and vote at
general meetings of the Company (or being corporations by their duly authorised representatives) shall be as valid and effective as if
the same had been passed at a general meeting of the Company duly convened and held.

**CORPORATIONS ACTING BY REPRESENTATIVES AT MEETINGS**

87. Any corporation which is a Shareholder or a Director may by resolution of its directors or other governing body authorise such Person
as it thinks fit to act as its representative at any meeting of the Company or of any meeting of holders of a Class or of the Directors
or of a committee of Directors, and the Person so authorised shall be entitled to exercise the same powers on behalf of the corporation
which he represents as that corporation could exercise if it were an individual Shareholder or Director.

**DEPOSITARY AND CLEARING HOUSES**

88. If a recognised clearing house (or its nominee(s)) or depositary (or its nominee(s)) is a Member of the Company it may, by resolution
of its directors or other governing body or by power of attorney, authorise such Person(s) as it thinks fit to act as its representative(s)
at any general meeting of the Company or of any Class of Shareholders provided that, if more than one Person is so authorised, the authorisation
shall specify the number and Class of Shares in respect of which each such Person is so authorised. A Person so authorised pursuant to
this Article shall be entitled to exercise the same powers on behalf of the recognised clearing house (or its nominee(s)) or depositary
(or its nominee(s)) which he represents as that recognised clearing house (or its nominee(s)) or depositary (or its nominee(s)) could
exercise if it were an individual Member holding the number and Class of Shares specified in such authorisation.

**DIRECTORS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89. 4) Unless otherwise determined by the Company in general meeting, the number of Directors shall not be less than three (3) Directors, the exact number of Directors to be determined from time to time by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors shall elect and appoint a Chairman by a majority of the Directors then in office. The period for which the Chairman will hold office will also be determined by a majority of all of the Directors then in office. The Chairman shall preside as chairman at every meeting of the Board of Directors. To the extent the Chairman is not present at a meeting of the Board of Directors within fifteen minutes after the time appointed for holding the same, the attending Directors may choose one of them to be the chairman of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board may, by the affirmative vote of a simple majority of the Directors present and voting at a Board meeting, or the Company may by Ordinary Resolution, appoint any person to be a Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Board may, by the affirmative vote of a simple majority of the remaining Directors present and voting at a Board meeting, appoint any person as a Director, to fill a casual vacancy on the Board or as an addition to the existing Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) An appointment of a Director may be on terms that the Director shall automatically retire from office (unless he has sooner vacated office) at the next or a subsequent annual general meeting or upon any specified event or after any specified period in a written agreement between the Company and the Director, if any; but no such term shall be implied in the absence of express provision. Any Director whose term of office expires shall be eligible for re-election at a meeting of the Shareholders or re-appointment by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A Director may be removed from office by the affirmative vote of two-thirds (2/3) of the Directors then in office (except with regard to the removal of the Chairman, who may be removed from office by the affirmative vote of all Directors), or by Ordinary Resolution (except with regard to the removal of the Chairman, who may be removed from office by Special Resolution), notwithstanding anything in these Articles or in any agreement between the Company and such Director (but without prejudice to any claim for damages under such agreement).

90. The Board may, from time to time, and except as required by applicable law or Designated Stock Exchange Rules, adopt, institute, amend,
modify or revoke the corporate governance policies or initiatives of the Company and determine on various corporate governance related
matters of the Company as the Board shall determine by resolution of Directors from time to time.

91. A Director shall not be required to hold any Shares in the Company by way of qualification. A Director who is not a Member of the
Company shall nevertheless be entitled to attend and speak at general meetings.

92. The remuneration of the Directors may be determined by the Directors.

93. The Directors shall be entitled to be paid for their travelling, hotel and other expenses properly incurred by them in going to, attending
and returning from meetings of the Directors, or any committee of the Directors, or general meetings of the Company, or otherwise in connection
with the business of the Company, or to receive such fixed allowance in respect thereof as may be determined by the Directors from time
to time, or a combination partly of one such method and partly the other.

**ALTERNATE DIRECTOR OR PROXY**

94. Any Director may in writing appoint another Person to be his alternate and, save to the extent provided otherwise in the form of appointment,
such alternate shall have authority to sign written resolutions on behalf of the appointing Director, but shall not be required to sign
such written resolutions where they have been signed by the appointing director, and to act in such Director's place at any meeting
of the Directors at which the appointing Director is unable to be present. Every such alternate shall be entitled to attend and vote at
meetings of the Directors as a Director when the Director appointing him is not personally present and where he is a Director to have
a separate vote on behalf of the Director he is representing in addition to his own vote. A Director may at any time in writing revoke
the appointment of an alternate appointed by him. Such alternate shall be deemed for all purposes to be a Director of the Company and
shall not be deemed to be the agent of the Director appointing him. The remuneration of such alternate shall be payable out of the remuneration
of the Director appointing him and the proportion thereof shall be agreed between them.

95. Any Director may appoint any Person, whether or not a Director, to be the proxy of that Director to attend and vote on his behalf,
in accordance with instructions given by that Director, or in the absence of such instructions at the discretion of the proxy, at a meeting
or meetings of the Directors which that Director is unable to attend personally. The instrument appointing the proxy shall be in writing
under the hand of the appointing Director and shall be in any usual or common form or such other form as the Directors may approve, and
must be lodged with the chairman of the meeting of the Directors at which such proxy is to be used, or first used, prior to the commencement
of the meeting.

**POWERS AND DUTIES OF DIRECTORS**

96. Subject to the Companies Act, these Articles and any resolutions passed in a general meeting, the business of the Company shall be
managed by the Directors, who may pay all expenses incurred in setting up and registering the Company and may exercise all powers of the
Company. No resolution passed by the Company in general meeting shall invalidate any prior act of the Directors that would have been valid
if that resolution had not been passed.

97. Subject to these Articles, the Directors may from time to time appoint any natural person or corporation, whether or not a Director
to hold such office in the Company as the Directors may think necessary for the administration of the Company, including but not limited
to, chief executive officer, one or more other executive officers, president, one or more vice presidents, treasurer, assistant treasurer,
manager or controller, and for such term and at such remuneration (whether by way of salary or commission or participation in profits
or partly in one way and partly in another), and with such powers and duties as the Directors may think fit. Any natural person or corporation
so appointed by the Directors may be removed by the Directors. The Directors may also appoint one or more of them to the office of managing
director upon like terms, but any such appointment shall ipso facto terminate if any managing director ceases for any cause to be a Director,
or if the Company by Ordinary Resolution resolves that his tenure of office be terminated.

98. The Directors may appoint any natural person or corporation to be a Secretary (and if need be an assistant Secretary or assistant
Secretaries) who shall hold office for such term, at such remuneration and upon such conditions and with such powers as they think fit.
Any Secretary or assistant Secretary so appointed by the Directors may be removed by the Directors.

99. The Directors may delegate any of their powers to committees consisting of such member or members of their body as they think fit;
any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the Directors.

100. The Directors may from time to time and at any time by power of attorney (whether under Seal or under hand) or otherwise appoint any
company, firm or Person or body of Persons, whether nominated directly or indirectly by the Directors, to be the attorney or attorneys
or authorised signatory (any such Person being an "Attorney" or "Authorised Signatory", respectively) of the Company
for such purposes and with such powers, authorities and discretion (not exceeding those vested in or exercisable by the Directors under
these Articles) and for such period and subject to such conditions as they may think fit, and any such power of attorney or other appointment
may contain such provisions for the protection and convenience of Persons dealing with any such Attorney or Authorised Signatory as the
Directors may think fit, and may also authorise any such Attorney or Authorised Signatory to delegate all or any of the powers, authorities
and discretion vested in him.

101. The Directors may from time to time provide for the management of the affairs of the Company in such manner as they shall think fit
and the provisions contained in the three next following Articles shall not limit the general powers conferred by this Article.

102. The Directors from time to time and at any time may establish any committees, local boards or agencies for managing any of the affairs
of the Company and may appoint any natural person or corporation to be a member of such committees or local boards and may appoint any
managers or agents of the Company and may fix the remuneration of any such natural person or corporation.

103. The Directors from time to time and at any time may delegate to any such committee, local board, manager or agent any of the powers,
authorities and discretions for the time being vested in the Directors and may authorise the members for the time being of any such local
board, or any of them to fill any vacancies therein and to act notwithstanding vacancies and any such appointment or delegation may be
made on such terms and subject to such conditions as the Directors may think fit and the Directors may at any time remove any natural
person or corporation so appointed and may annul or vary any such delegation, but no Person dealing in good faith and without notice of
any such annulment or variation shall be affected thereby.

104. Any such delegates as aforesaid may be authorised by the Directors to sub-delegate all or any of the powers, authorities, and discretion
for the time being vested in them.

**BORROWING POWERS OF DIRECTORS**

105. The Directors may from time to time at their discretion exercise all the powers of the Company to raise or borrow money and to mortgage
or charge its undertaking, property and assets (present and future) and uncalled capital or any part thereof, to issue debentures, debenture
stock, bonds and other securities, whether outright or as collateral security for any debt, liability or obligation of the Company or
of any third party.

**THE SEAL**

106. The Seal shall not be affixed to any instrument except by the authority of a resolution of the Directors provided always that such
authority may be given prior to or after the affixing of the Seal and if given after may be in general form confirming a number of affixing
of the Seal. The Seal shall be affixed in the presence of a Director or a Secretary (or an assistant Secretary) or in the presence of
any one or more Persons as the Directors may appoint for the purpose and every Person as aforesaid shall sign every instrument to which
the Seal is so affixed in their presence.

107. The Company may maintain a facsimile of the Seal in such countries or places as the Directors may appoint and such facsimile Seal
shall not be affixed to any instrument except by the authority of a resolution of the Directors provided always that such authority may
be given prior to or after the affixing of such facsimile Seal and if given after may be in general form confirming a number of affixing
of such facsimile Seal. The facsimile Seal shall be affixed in the presence of such Person or Persons as the Directors shall for this
purpose appoint and such Person or Persons as aforesaid shall sign every instrument to which the facsimile Seal is so affixed in their
presence and such affixing of the facsimile Seal and signing as aforesaid shall have the same meaning and effect as if the Seal had been
affixed in the presence of and the instrument signed by a Director or a Secretary (or an assistant Secretary) or in the presence of any
one or more Persons as the Directors may appoint for the purpose.

108. Notwithstanding the foregoing, a Secretary or any assistant Secretary shall have the authority to affix the Seal, or the facsimile
Seal, to any instrument for the purposes of attesting authenticity of the matter contained therein but which does not create any obligation
binding on the Company.

**DISQUALIFICATION OF DIRECTORS**

109. The office of Director shall be vacated, if the Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) becomes bankrupt or makes any arrangement or composition with his creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dies or is found to be or becomes of unsound mind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) resigns his office by notice in writing to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is removed from office pursuant to any other provision of these Articles.

**PROCEEDINGS OF DIRECTORS**

110. The Directors may meet together (either within or outside of the Cayman Islands) for the despatch of business, adjourn, and otherwise
regulate their meetings and proceedings as they think fit. Questions arising at any meeting shall be decided by a majority of votes. At
any meeting of the Directors, each Director present in person or represented by his proxy or alternate shall be entitled to one vote.
In case of an equality of votes the chairman of the meeting shall have a second or casting vote. A Director may, and a Secretary or assistant
Secretary on the requisition of a Director shall, at any time summon a meeting of the Directors.

111. A Director may participate in any meeting of the Directors, or of any committee appointed by the Directors of which such Director
is a member, by means of telephone or similar communication equipment by way of which all Persons participating in such meeting can communicate
with each other and such participation shall be deemed to constitute presence in person at the meeting.

112. The quorum necessary for the transaction of the business of the Board may be fixed by the Directors, and unless so fixed, the quorum
shall be a majority of Directors then in office. A Director represented by proxy or by an alternate Director at any meeting shall be deemed
to be present for the purposes of determining whether or not a quorum is present.

113. A Director who is in any way, whether directly or indirectly, interested in a contract or transaction or proposed contract or transaction
with the Company shall declare the nature of his interest at a meeting of the Directors. A general notice given to the Directors by any
Director to the effect that he is a member of any specified company or firm and is to be regarded as interested in any contract or transaction
which may thereafter be made with that company or firm shall be deemed a sufficient declaration of interest in regard to any contract
so made or transaction so consummated. Subject to the Designated Stock Exchange Rules and disqualification by the chairman of the relevant
Board meeting, a Director may vote in respect of any contract or transaction or proposed contract or transaction notwithstanding that
he may be interested therein and if he does so his vote shall be counted and he may be counted in the quorum at any meeting of the Directors
at which any such contract or transaction or proposed contract or transaction shall come before the meeting for consideration.

114. A Director may hold any other office or place of profit under the Company (other than the office of auditor) in conjunction with his
office of Director for such period and on such terms (as to remuneration and otherwise) as the Directors may determine and no Director
or intending Director shall be disqualified by his office from contracting with the Company either with regard to his tenure of any such
other office or place of profit or as vendor, purchaser or otherwise, nor shall any such contract or arrangement entered into by or on
behalf of the Company in which any Director is in any way interested be liable to be avoided, nor shall any Director so contracting or
being so interested be liable to account to the Company for any profit realised by any such contract or arrangement by reason of such
Director holding that office or of the fiduciary relation thereby established. A Director, notwithstanding his interest, may be counted
in the quorum present at any meeting of the Directors whereat he or any other Director is appointed to hold any such office or place of
profit under the Company or whereat the terms of any such appointment are arranged and he may vote on any such appointment or arrangement.

115. Any Director may act by himself or through his firm in a professional capacity for the Company, and he or his firm shall be entitled
to remuneration for professional services as if he were not a Director; provided that nothing herein contained shall authorise a Director
or his firm to act as auditor to the Company.

116. The Directors shall cause minutes to be made for the purpose of recording:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all appointments of officers made by the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the names of the Directors present at each meeting of the Directors and of any committee of the Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all resolutions and proceedings at all meetings of the Company, and of the Directors and of committees of Directors.

117. When the chairman of a meeting of the Directors signs the minutes of such meeting the same shall be deemed to have been duly held
notwithstanding that all the Directors have not actually come together or that there may have been a technical defect in the proceedings.

118. A resolution in writing signed by all the Directors or all the members of a committee of Directors entitled to receive notice of a
meeting of Directors or committee of Directors, as the case may be (an alternate Director, subject as provided otherwise in the terms
of appointment of the alternate Director, being entitled to sign such a resolution on behalf of his appointer), shall be as valid and
effectual as if it had been passed at a duly called and constituted meeting of Directors or committee of Directors, as the case may be.
When signed a resolution may consist of several documents each signed by one or more of the Directors or his duly appointed alternate.

119. The continuing Directors may act notwithstanding any vacancy in their body but if and for so long as their number is reduced below
the number fixed by or pursuant to these Articles as the necessary quorum of Directors, the continuing Directors may act for the purpose
of increasing the number, or of summoning a general meeting of the Company, but for no other purpose.

120. Subject to any regulations imposed on it by the Directors, a committee appointed by the Directors may elect a chairman of its meetings.
If no such chairman is elected, or if at any meeting the chairman is not present within fifteen minutes after the time appointed for holding
the meeting, the committee members present may choose one of them to be chairman of the meeting.

121. A committee appointed by the Directors may meet and adjourn as it thinks proper. Subject to any regulations imposed on it by the Directors,
questions arising at any meeting shall be determined by a majority of votes of the committee members present and in case of an equality
of votes the chairman shall have a second or casting vote.

122. All acts done by any meeting of the Directors or of a committee of Directors, or by any Person acting as a Director, shall notwithstanding
that it be afterwards discovered that there was some defect in the appointment of any such Director or Person acting as aforesaid, or
that they or any of them were disqualified, be as valid as if every such Person had been duly appointed and was qualified to be a Director.

**PRESUMPTION OF ASSENT**

123. A Director who is present at a meeting of the Board of Directors at which an action on any Company matter is taken shall be presumed
to have assented to the action taken unless his dissent shall be entered in the minutes of the meeting or unless he shall file his written
dissent from such action with the person acting as the chairman or secretary of the meeting before the adjournment thereof or shall forward
such dissent by registered post to such person immediately after the adjournment of the meeting. Such right to dissent shall not apply
to a Director who voted in favour of such action.

**DIVIDENDS**

124. Subject to any rights and restrictions for the time being attached to any Shares, the Directors may from time to time declare dividends
(including interim dividends) and other distributions on Shares in issue and authorise payment of the same out of the funds of the Company
lawfully available therefor.

125. Subject to any rights and restrictions for the time being attached to any Shares, the Company by Ordinary Resolution may declare dividends,
but no dividend shall exceed the amount recommended by the Directors.

126. The Directors may, before recommending or declaring any dividend, set aside out of the funds legally available for distribution such
sums as they think proper as a reserve or reserves which shall, in the absolute discretion of the Directors, be applicable for meeting
contingencies or for equalising dividends or for any other purpose to which those funds may be properly applied, and pending such application
may in the absolute discretion of the Directors, either be employed in the business of the Company or be invested in such investments
(other than Shares of the Company) as the Directors may from time to time think fit.

127. Any dividend payable in cash to the holder of Shares may be paid in any manner determined by the Directors. If paid by cheque it will
be sent by mail addressed to the holder at his address in the Register, or addressed to such person and at such addresses as the holder
may direct. Every such cheque or warrant shall, unless the holder or joint holders otherwise direct, be made payable to the order of the
holder or, in the case of joint holders, to the order of the holder whose name stands first on the Register in respect of such Shares,
and shall be sent at his or their risk and payment of the cheque or warrant by the bank on which it is drawn shall constitute a good discharge
to the Company.

128. The Directors may determine that a dividend shall be paid wholly or partly by the distribution of specific assets (which may consist
of the shares or securities of any other company) and may settle all questions concerning such distribution. Without limiting the generality
of the foregoing, the Directors may fix the value of such specific assets, may determine that cash payment shall be made to some Shareholders
in lieu of specific assets and may vest any such specific assets in trustees on such terms as the Directors think fit.

129. Subject to any rights and restrictions for the time being attached to any Shares, all dividends shall be declared and paid according
to the amounts paid up on the Shares, but if and for so long as nothing is paid up on any of the Shares dividends may be declared and
paid according to the par value of the Shares. No amount paid on a Share in advance of calls shall, while carrying interest, be treated
for the purposes of this Article as paid on the Share.

130. If several Persons are registered as joint holders of any Share, any of them may give effective receipts for any dividend or other
moneys payable on or in respect of the Share.

131. No dividend shall bear interest against the Company.

132. Any dividend unclaimed after a period of six calendar years from the date of declaration of such dividend may be forfeited by the
Board of Directors and, if so forfeited, shall revert to the Company.

**ACCOUNTS, AUDIT AND ANNUAL RETURN AND DECLARATION**

133. The books of account relating to the Company's affairs shall be kept in such manner as may be determined from time to time by
the Directors.

134. The books of account shall be kept at the Registered Office or at such other place or places as the Directors think fit, and shall
always be open to the inspection of the Directors.

135. The Directors may from time to time determine whether and to what extent and at what times and places and under what conditions or
regulations the accounts and books of the Company or any of them shall be open to the inspection of Shareholders not being Directors,
and no Shareholder (not being a Director) shall have any right to inspect any account or book or document of the Company except as conferred
by law or authorised by the Directors or by Special Resolution.

136. The accounts relating to the Company's affairs shall be audited in such manner and with such financial year end as may be determined
from time to time by the Directors or failing any determination as aforesaid shall not be audited.

137. The Directors may appoint an auditor of the Company who shall hold office until removed from office by a resolution of the Directors
and may fix his or their remuneration.

138. Every auditor of the Company shall have a right of access at all times to the books and accounts and vouchers of the Company and shall
be entitled to require from the Directors and officers of the Company such information and explanation as may be necessary for the performance
of the duties of the auditors.

139. The auditors shall, if so required by the Directors, make a report on the accounts of the Company during their tenure of office at
the next annual general meeting following their appointment, and at any time during their term of office, upon request of the Directors
or any general meeting of the Members.

140. The Directors in each calendar year shall prepare, or cause to be prepared, an annual return and declaration setting forth the particulars
required by the Companies Act and deliver a copy thereof to the Registrar of Companies in the Cayman Islands.

**CAPITALISATION OF RESERVES**

141. Subject to the Companies Act, the Directors may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) resolve to capitalise an amount standing to the credit of reserves (including a Share Premium Account, capital redemption reserve
and profit and loss account), which is available for distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) appropriate the sum resolved to be capitalised to the Shareholders in proportion to the nominal amount of Shares (whether or not fully
paid) held by them respectively and apply that sum on their behalf in or towards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) paying up the amounts (if any) for the time being unpaid on Shares held by them respectively, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) paying up in full unissued Shares or debentures of a nominal amount equal to that sum,

and allot the Shares or debentures, credited as fully paid, to the Shareholders (or as they may direct) in those proportions, or partly in one way and partly in the other, but the Share Premium Account, the capital redemption reserve and profits which are not available for distribution may, for the purposes of this Article, only be applied in paying up unissued Shares to be allotted to Shareholders credited as fully paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) make any arrangements they think fit to resolve a difficulty arising in the distribution of a capitalised reserve and in particular,
without limitation, where Shares or debentures become distributable in fractions the Directors may deal with the fractions as they think
fit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) authorise a Person to enter (on behalf of all the Shareholders concerned) into an agreement with the Company providing for either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the allotment to the Shareholders respectively, credited as fully paid, of Shares or debentures to which they may be entitled on the
capitalisation, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the payment by the Company on behalf of the Shareholders (by the application of their respective proportions of the reserves resolved
to be capitalised) of the amounts or part of the amounts remaining unpaid on their existing Shares,

and any such agreement made under this authority being effective and binding on all those Shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) generally do all acts and things required to give effect to the resolution.

142. Notwithstanding any provisions in these Articles and subject to the Companies Act, the Directors may resolve to capitalise an amount
standing to the credit of reserves (including the share premium account, capital redemption reserve and profit and loss account) or otherwise
available for distribution by applying such sum in paying up in full unissued Shares to be allotted and issued to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) employees (including Directors) or service providers of the Company or its Affiliates upon exercise or vesting of any options or awards
granted under any share incentive scheme or employee benefit scheme or other arrangement which relates to such persons that has been adopted
or approved by the Directors or the Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any trustee of any trust or administrator of any share incentive scheme or employee benefit scheme to whom shares are to be allotted
and issued by the Company in connection with the operation of any share incentive scheme or employee benefit scheme or other arrangement
which relates to such persons that has been adopted or approved by the Directors or Members; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) service providers of the Company or its Affiliates upon exercise or vesting of any options or awards granted under any share incentive
scheme or employee benefit scheme or other arrangement which relates to such persons that has been adopted or approved by the Directors
or the Members.

**SHARE PREMIUM ACCOUNT**

143. The Directors shall in accordance with the Companies Act establish a Share Premium Account and shall carry to the credit of such account
from time to time a sum equal to the amount or value of the premium paid on the issue of any Share.

144. There shall be debited to any Share Premium Account on the redemption or purchase of a Share the difference between the nominal value
of such Share and the redemption or purchase price provided always that at the discretion of the Directors such sum may be paid out of
the profits of the Company or, if permitted by the Companies Act, out of capital.

**NOTICES**

145. Except as otherwise provided in these Articles, any notice or document may be served by the Company or by the Person entitled to give
notice to any Shareholder either personally, or by posting it by airmail or a recognised courier service in a prepaid letter addressed
to such Shareholder at his address as appearing in the Register, or by electronic mail to any electronic mail address such Shareholder
may have specified in writing for the purpose of such service of notices, or by facsimile to any facsimile number such Shareholder may
have specified in writing for the purpose of such service of notices, or by placing it on the Company's Website should the Directors
deem it appropriate. In the case of joint holders of a Share, all notices shall be given to that one of the joint holders whose name stands
first in the Register in respect of the joint holding, and notice so given shall be sufficient notice to all the joint holders.

146. Notices sent from one country to another shall be sent or forwarded by prepaid airmail or a recognised courier service.

147. Any Shareholder Present at any meeting of the Company shall for all purposes be deemed to have received due notice of such meeting
and, where requisite, of the purposes for which such meeting was convened.

148. Any notice or other document, if served by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) post, shall be deemed to have been served five (5) calendar days after the time when the letter containing the same is posted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) facsimile, shall be deemed to have been served upon production by the transmitting facsimile machine of a report confirming transmission
of the facsimile in full to the facsimile number of the recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) recognised courier service, shall be deemed to have been served 48 hours after the time when the letter containing the same is delivered
to the courier service; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) electronic means, shall be deemed to have been served immediately (i) upon the time of the transmission to the electronic mail address
supplied by the Shareholder to the Company or (ii) upon the time of its placement on the Company's Website.

In proving service by post or courier service it shall be sufficient to prove that the letter containing the notice or documents was properly addressed and duly posted or delivered to the courier service.

149. Any notice or document delivered or sent by post to or left at the registered address of any Shareholder in accordance with the terms
of these Articles shall notwithstanding that such Shareholder be then dead or bankrupt, and whether or not the Company has notice of his
death or bankruptcy, be deemed to have been duly served in respect of any Share registered in the name of such Shareholder as sole or
joint holder, unless his name shall at the time of the service of the notice or document have been removed from the Register as the holder
of the Share, and such service shall for all purposes be deemed a sufficient service of such notice or document on all Persons interested
(whether jointly with or as claiming through or under him) in the Share.

150. Notice of every general meeting of the Company shall be given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Shareholders holding Shares with the right to receive notice and who have supplied to the Company an address for the giving of
notices to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) every Person entitled to a Share in consequence of the death or bankruptcy of a Shareholder, who but for his death or bankruptcy would
be entitled to receive notice of the meeting.

No other Person shall be entitled to receive notices of general meetings.

**INFORMATION**

151. Subject to the relevant laws, rules and regulations applicable to the Company, no Member shall be entitled to require discovery of
any information in respect of any detail of the Company's trading or any information which is or may be in the nature of a trade
secret or secret process which may relate to the conduct of the business of the Company and which in the opinion of the Board would not
be in the interests of the Members of the Company to communicate to the public.

152. Subject to due compliance with the relevant laws, rules and regulations applicable to the Company, the Board shall be entitled to
release or disclose any information in its possession, custody or control regarding the Company or its affairs to any of its Members including,
without limitation, information contained in the Register and transfer books of the Company.

**INDEMNITY**

153. Every Director (including for the purposes of this Article any alternate Director appointed pursuant to the provisions of these Articles),
Secretary, assistant Secretary, or other officer for the time being and from time to time of the Company (but not including the Company's
auditors) and the personal representatives of the same (each an "Indemnified Person") shall be indemnified and secured harmless
against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by such Indemnified Person,
other than by reason of such Indemnified Person's own dishonesty, willful default or fraud, in or about the conduct of the Company's
business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers, authorities
or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by
such Indemnified Person in defending (whether successfully or otherwise) any civil proceedings concerning the Company or its affairs in
any court whether in the Cayman Islands or elsewhere.

154. No Indemnified Person shall be liable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for the acts, receipts, neglects, defaults or omissions of any other Director or officer or agent of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any loss on account of defect of title to any property of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) on account of the insufficiency of any security in or upon which any money of the Company shall be invested; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) for any loss incurred through any bank, broker or other similar Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) for any loss occasioned by any negligence, default, breach of duty, breach of trust, error of judgement or oversight on such Indemnified
Person's part; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) for any loss, damage or misfortune whatsoever which may happen in or arise from the execution or discharge of the duties, powers,
authorities, or discretions of such Indemnified Person's office or in relation thereto;

unless the same shall happen through such Indemnified Person's own dishonesty, willful default or fraud.

**FINANCIAL YEAR**

155. Unless the Directors otherwise prescribe, the financial year of the Company shall end on December 31st in each calendar year and shall
begin on January 1st in each calendar year.

**NON-RECOGNITION OF TRUSTS**

156. No Person shall be recognised by the Company as holding any Share upon any trust and the Company shall not, unless required by law,
be bound by or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest
in any Share or (except only as otherwise provided by these Articles or as the Companies Act requires) any other right in respect of any
Share except an absolute right to the entirety thereof in each Shareholder registered in the Register.

**WINDING UP**

157. If the Company shall be wound up the liquidator may, with the sanction of a Special Resolution of the Company and any other sanction
required by the Companies Act, divide amongst the Members in species or in kind the whole or any part of the assets of the Company (whether
they shall consist of property of the same kind or not) and may for that purpose value any assets and, subject to Article 158, determine
how the division shall be carried out as between the Members or different classes of Members. The liquidator may, with the like sanction,
vest the whole or any part of such assets in trustees upon such trusts for the benefit of the Members as the liquidator, with the like
sanction, shall think fit, but so that no Member shall be compelled to accept any asset upon which there is a liability.

158. If the Company shall be wound up, and the assets available for distribution amongst the Members shall be insufficient to repay the
whole of the share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the Members in
proportion to the par value of the Shares held by them. If in a winding up the assets available for distribution amongst the Members shall
be more than sufficient to repay the whole of the share capital at the commencement of the winding up, the surplus shall be distributed
amongst the Members in proportion to the par value of the Shares held by them at the commencement of the winding up subject to a deduction
from those Shares in respect of which there are monies due, of all monies payable to the Company for unpaid calls or otherwise. This Article
is without prejudice to the rights of the holders of Shares issued upon special terms and conditions.

**AMENDMENT OF ARTICLES OF ASSOCIATION**

159. Subject to the Companies Act, the Company may at any time and from time to time by Special Resolution alter or amend these Articles
in whole or in part.

**CLOSING OF REGISTER OR FIXING RECORD DATE**

160. For the purpose of determining those Shareholders that are entitled to receive notice of, attend or vote at any meeting of Shareholders
or any adjournment thereof, or those Shareholders that are entitled to receive payment of any dividend, or in order to make a determination
as to who is a Shareholder for any other purpose, the Directors may provide that the Register shall be closed for transfers for a stated
period which shall not exceed in any case thirty (30) calendar days in any calendar year.

161. In lieu of or apart from closing the Register, the Directors may fix in advance a date as the record date for any such determination
of those Shareholders that are entitled to receive notice of, attend or vote at a meeting of the Shareholders and for the purpose of determining
those Shareholders that are entitled to receive payment of any dividend the Directors may, at or within ninety (90) calendar days prior
to the date of declaration of such dividend, fix a subsequent date as the record date for such determination.

162. If the Register is not so closed and no record date is fixed for the determination of those Shareholders entitled to receive notice
of, attend or vote at a meeting of Shareholders or those Shareholders that are entitled to receive payment of a dividend, the date on
which notice of the meeting is posted or the date on which the resolution of the Directors declaring such dividend is adopted, as the
case may be, shall be the record date for such determination of Shareholders. When a determination of those Shareholders that are entitled
to receive notice of, attend or vote at a meeting of Shareholders has been made as provided in this Article, such determination shall
apply to any adjournment thereof.

**REGISTRATION BY WAY OF CONTINUATION**

163. The Company may by Special Resolution resolve to be registered by way of continuation in a jurisdiction outside the Cayman Islands
or such other jurisdiction in which it is for the time being incorporated, registered or existing. In furtherance of a resolution adopted
pursuant to this Article, the Directors may cause an application to be made to the Registrar of Companies to deregister the Company in
the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing and may cause all
such further steps as they consider appropriate to be taken to effect the transfer by way of continuation of the Company.

**DISCLOSURE**

164. The Directors, or any service providers (including the officers, the Secretary and the Registered Office provider of the Company)
specifically authorised by the Directors, shall be entitled to disclose to any regulatory or judicial authority or to any stock exchange
on which securities of the Company may from time to time be listed any information regarding the affairs of the Company including without
limitation information contained in the Register and books of the Company.

**EXCLUSIVE FORUM**

165. For the avoidance of doubt and without limiting the jurisdiction of the courts of the Cayman Islands to hear, settle and/or determine
disputes related to the Company, the courts of the Cayman Islands shall be the sole and exclusive forum for (i) any derivative action
or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any Director,
officer or other employee of the Company to the Company or the Members, (iii) any action asserting a claim arising pursuant to any provision
of the Companies Act or these Articles including but not limited to any purchase or acquisition of Shares, security or guarantee provided
in consideration thereof, or (iv) any action asserting a claim against the Company which if brought in the United States of America would
be a claim arising under the internal affairs doctrine (as such concept is recognised under the laws of the United States from time to
time).

166. Unless the Company consents in writing to the selection of an alternative forum, the United States District Court for the Southern
District of New York (or, if the United States District Court for the Southern District of New York lacks subject matter jurisdiction
over a particular dispute, the state courts in New York County, New York) shall be the exclusive forum within the United States for the
resolution of any complaint asserting a cause of action arising out of or relating in any way to the federal securities laws of the United
States, regardless of whether such legal suit, action, or proceeding also involves parties other than the Company. Any person or entity
purchasing or otherwise acquiring any Share or other securities in the Company, or purchasing or otherwise acquiring the Class A Ordinary
Shares issued pursuant to deposit agreements, cannot waive compliance with the federal securities laws of the United States and the rules
and regulations thereunder with respect to claims arising under the Securities Act and shall be deemed to have notice of and consented
to the provisions of this Article. Without prejudice to the foregoing, if the provision in this Article is held to be illegal, invalid
or unenforceable under applicable law, the legality, validity or enforceability of the rest of these Articles shall not be affected and
this Article shall be interpreted and construed to the maximum extent possible to apply in the relevant jurisdiction with whatever modification
or deletion may be necessary so as best to give effect to the intention of the Company.