| SCHEDULE OF PROPERTY EQUIPMENT AND SOFTWARE |
Property,
equipment and software, net, consist of the following:
SCHEDULE OF PROPERTY EQUIPMENT AND SOFTWARE
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As
of December 31, | |
| | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | |
| | |
| | |
| |
| Buildings (1) | |
| 170,838 | | |
| 171,591 | |
| Construction in progress (2) | |
| 36,884 | | |
| 116,268 | |
| Leasehold improvement | |
| 30,020 | | |
| 29,764 | |
| Electronic equipment | |
| 12,325 | | |
| 5,591 | |
| Software | |
| 6,825 | | |
| 7,824 | |
| Furniture | |
| 5,504 | | |
| 2,946 | |
| Vehicles | |
| 1,349 | | |
| 718 | |
| Subtotal | |
| 263,745 | | |
| 334,702 | |
| Less: accumulated depreciation
(3) | |
| (58,295 | ) | |
| (55,976 | ) |
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| Total property, equipment
and software, net | |
| 205,450 | | |
| 278,726 | |
| (1) |
In June 2021, the Group entered
into a purchase agreement with a third-party company to purchase an office building. The Group paid 50% of the total amount with consideration
of RMB 81,125 in 2021 and paid the remaining 50% in amount of RMB 80,732 in 2022. In June 2022, the new office building has been delivered
by the third-party company to the Group and all prepayment except for the value added tax of the office building were recorded as construction
in progress upon delivery in 2022. In April 2023, the office building has been put into use with estimated useful life of 40 years. |
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| (2) |
In June 2024, the Group entered
into an agreement with the local government to acquire the land use right (the “Hangzhou Land Parcel”) (Note 9) for an
aggregate consideration of approximately RMB 176,645 (including deed tax and stamp duty with a total amount of RMB 5,145). In July
2024, the Company obtained the certificate of the land use right and accounted for the land use right at cost less accumulated amortization
and impairment losses, if any. The Company planned to construct a new office building on the Hangzhou Land Parcel for its new headquarters
and offices leasable to external parties. As of December 31, 2025, the new office building, comprising two interconnected sections,
was under construction. The structural frame of one section had been topped out, while the other one was in the main structural construction
phase. The construction in progress mainly consisted of construction design management fees and construction cost recognized based
on construction progress. The Company recorded payables for construction cost in other payable and accrued liabilities (Note 17) and
other non-current liabilities, respectively. |
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| (3) |
Depreciation expenses were
RMB 6,545, RMB 6,709 and RMB 6,791 for the years ended December 31, 2023, 2024 and 2025, respectively. No impairment charges were recorded
for the years ended December 31, 2023, 2024 and 2025. |
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