<?xml version="1.0" encoding="ASCII"?>
<!-- Generated by CompSci Transform (tm) - http://www.compsciresources.com -->
<!-- Created: Mon May 01 17:56:59 UTC 2023 -->
<html xmlns:dtr="http://www.xbrl.org/dtr/type/2020-01-21" xmlns:ixt="http://www.xbrl.org/inlineXBRL/transformation/2020-02-12" xmlns:ixt-sec="http://www.sec.gov/inlineXBRL/transformation/2015-08-31" xmlns:link="http://www.xbrl.org/2003/linkbase" xmlns:dei="http://xbrl.sec.gov/dei/2022" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:compsci="http://compsciresources.com" xmlns:ix="http://www.xbrl.org/2013/inlineXBRL" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:us-types="http://fasb.org/us-types/2022" xmlns:srt="http://fasb.org/srt/2022" xmlns:xl="http://www.xbrl.org/2003/XLink" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:exch="http://xbrl.sec.gov/exch/2022" xmlns:us-gaap="http://fasb.org/us-gaap/2022" xmlns:currency="http://xbrl.sec.gov/currency/2022" xmlns:sntg="http://www.ir.sentageholdings.com/20221231" xmlns:xs="http://www.w3.org/2001/XMLSchema-instance" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns="http://www.w3.org/1999/xhtml">
<head>
     <title> </title>

<meta content="text/html" http-equiv="Content-Type" />
</head>
<body><div style="font: 10pt Times New Roman, Times, Serif"><div>

</div><p style="margin: 0"></p><div>

</div><p style="margin: 0"></p><div>

</div><!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="margin: 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>UNITED STATES </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SECURITIES AND EXCHANGE COMMISSION </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>WASHINGTON, D.C. 20549 </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>FORM <ix:nonNumeric contextRef="c0" name="dei:DocumentType">20-F</ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:DocumentRegistrationStatement">&#9744;</ix:nonNumeric> <b>REGISTRATION STATEMENT PURSUANT TO SECTION
12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>OR</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-true" name="dei:DocumentAnnualReport">&#9746;</ix:nonNumeric> <b>ANNUAL REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>For the fiscal year ended <ix:nonNumeric contextRef="c0" format="ixt:date-monthname-day-year-en" name="dei:DocumentPeriodEndDate"><ix:nonNumeric contextRef="c0" format="ixt:date-monthname-day-en" name="dei:CurrentFiscalYearEndDate">December 31</ix:nonNumeric>, <ix:nonNumeric contextRef="c0" name="dei:DocumentFiscalYearFocus">2022</ix:nonNumeric></ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>OR</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:DocumentTransitionReport">&#9744;</ix:nonNumeric> <b>TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>For the transition period from &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
to &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>OR&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:DocumentShellCompanyReport">&#9744;</ix:nonNumeric> <b>SHELL COMPANY REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of event requiring this shell company report</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Commission file number: <ix:nonNumeric contextRef="c0" name="dei:EntityFileNumber">001-40580</ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><ix:nonNumeric contextRef="c0" name="dei:EntityRegistrantName">Sentage Holdings Inc.</ix:nonNumeric> </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in Its Charter)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">N/A</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Translation of Registrant&#8217;s Name Into English)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt-sec:edgarprovcountryen" name="dei:EntityIncorporationStateCountryCode"><b>Cayman Islands</b></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Jurisdiction of Incorporation or Organization)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><ix:nonNumeric contextRef="c1" name="dei:EntityAddressAddressLine1"><ix:nonNumeric contextRef="c0" name="dei:EntityAddressAddressLine1">501, Platinum Tower 233 Taicang Road</ix:nonNumeric></ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><ix:nonNumeric contextRef="c1" name="dei:EntityAddressAddressLine2"><ix:nonNumeric contextRef="c0" name="dei:EntityAddressAddressLine2">HuangPu</ix:nonNumeric></ix:nonNumeric>, <ix:nonNumeric contextRef="c1" name="dei:EntityAddressCityOrTown"><ix:nonNumeric contextRef="c0" name="dei:EntityAddressCityOrTown">Shanghai City</ix:nonNumeric></ix:nonNumeric> <ix:nonNumeric contextRef="c1" name="dei:EntityAddressPostalZipCode"><ix:nonNumeric contextRef="c0" name="dei:EntityAddressPostalZipCode">200001</ix:nonNumeric></ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>People&#8217;s Republic of <ix:nonNumeric contextRef="c1" format="ixt-sec:countrynameen" name="dei:EntityAddressCountry"><ix:nonNumeric contextRef="c0" format="ixt-sec:countrynameen" name="dei:EntityAddressCountry">China</ix:nonNumeric></ix:nonNumeric> </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of Principal Executive Offices)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c1" name="dei:ContactPersonnelName"><b>Qiaoling Lu</b></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Telephone: <ix:nonNumeric contextRef="c1" name="dei:CityAreaCode">+86</ix:nonNumeric>-<ix:nonNumeric contextRef="c1" name="dei:LocalPhoneNumber">21 5386 0209</ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Email: <ix:nonNumeric contextRef="c1" name="dei:ContactPersonnelEmailAddress"><ix:nonNumeric contextRef="c0" name="dei:ContactPersonnelEmailAddress">qllu@sentageholdings.com</ix:nonNumeric></ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>At the address of the Company set forth above</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name, Telephone, Email and/or Facsimile number
and Address of Company Contact Person)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Securities registered or to be registered pursuant
to Section&#160;12(b) of the Act:</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 33%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Title of Each Class</b></span></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 33%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Trading Symbol</b></span></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 32%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Name of Each Exchange On Which Registered</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: center"><ix:nonNumeric contextRef="c0" name="dei:Security12bTitle"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Ordinary shares, par value US$0.005 per share</b></span></ix:nonNumeric></td> <td style="text-align: center">&#160;</td> <td style="text-align: center"><ix:nonNumeric contextRef="c0" name="dei:TradingSymbol"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>SNTG</b></span></ix:nonNumeric></td> <td style="text-align: center">&#160;</td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The <ix:nonNumeric contextRef="c0" format="ixt-sec:exchnameen" name="dei:SecurityExchangeName">Nasdaq</ix:nonNumeric> Stock Market LLC</b></span></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities registered or to be registered pursuant
to Section&#160;12(g) of the Act:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>None</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Title of Class)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities for which there is a reporting obligation
pursuant to Section&#160;15(d) of the Act:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>None </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Title of Class)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="margin: 0pt">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate the number of outstanding shares of each
of the issuer&#8217;s classes of capital or common stock as of the close of the period covered by the annual report:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, there were <ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="dei:EntityCommonStockSharesOutstanding" scale="0" unitRef="shares">2,805,325</ix:nonFraction>
issued and outstanding ordinary shares, par value US$0.005 per share.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the Securities Act.&#160;&#160;&#160;&#160;&#9744;&#160;&#160;Yes&#160;&#160;&#160;&#160;&#9746;&#160;&#160;<ix:nonNumeric contextRef="c0" name="dei:EntityWellKnownSeasonedIssuer">No</ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this report is an annual or transition report,
indicate by check mark if the registrant is not required to file reports pursuant to Section&#160;13 or 15(d) of the Securities Exchange
Act of 1934.&#160;&#160;&#160;&#160;&#9744;&#160;&#160;Yes&#160;&#160;&#160;&#160;&#9746;&#160;&#160;<ix:nonNumeric contextRef="c0" name="dei:EntityVoluntaryFilers">No</ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant:
(1)&#160;has filed all reports required to be filed by Section&#160;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2)&#160;has been subject to such filing
requirements for the past 90 days.&#160;&#160;&#160;&#160;&#9746;&#160;&#160;<ix:nonNumeric contextRef="c0" name="dei:EntityCurrentReportingStatus">Yes</ix:nonNumeric>&#160;&#160;&#160;&#160;&#9744;&#160;&#160;No</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (&#167;232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&#160;&#160;&#160;&#160;&#9746;&#160;&#160;<ix:nonNumeric contextRef="c0" name="dei:EntityInteractiveDataCurrent">Yes</ix:nonNumeric>&#160;&#160;&#160;&#160;&#9744;&#160;&#160;No&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of &#8220;large accelerated filer,&#8221;
&#8220;accelerated filer,&#8221; and &#8220;emerging growth company&#8221; in Rule&#160;12b-2 of the Exchange Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 18%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated filer </span></td> <td style="width: 49%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span></td> <td style="width: 25%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer</span></td> <td style="width: 8%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span></td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" format="ixt-sec:entityfilercategoryen" name="dei:EntityFilerCategory"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer</span></ix:nonNumeric></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company </span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" format="ixt:fixed-true" name="dei:EntityEmergingGrowthCompany"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</span></ix:nonNumeric></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If an emerging growth company that prepares its
financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards&#8224; provided pursuant to Section&#160;13&#160;(a) of the
Exchange Act.&#160;&#160;<ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:EntityExTransitionPeriod">&#9744;</ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#8224;The term &#8220;new or revised financial
accounting standard&#8221; refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification
after April&#160;5, 2012.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
has filed a report on and attestation to its management&#8217;s assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accountant firm that prepared or
issued its audit report.&#160;&#160;<ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:IcfrAuditorAttestationFlag">&#9744;</ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark which basis of accounting
the registrant has used to prepare the financial statements included in this filing:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 15%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c0" name="dei:DocumentAccountingStandard">U.S. GAAP</ix:nonNumeric>&#160;&#160;&#160;&#160; &#9746;</span></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 68%; padding-left: 0.75in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">International Financial Reporting Standards as issued <br/>
by the International Accounting Standards Board &#9744;</span></td> <td style="width: 1%; text-align: center">&#160;</td> <td style="width: 15%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other&#160;&#160;&#160;&#160; &#9744;</span></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If &#8220;Other&#8221; has been checked in response
to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.&#160;&#160;&#9744;&#160;&#160;Item&#160;17&#160;&#160;&#9744;&#160;&#160;Item&#160;18</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this is an annual report, indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&#160;&#160;&#9744;&#160;&#160;Yes&#160;&#160;<ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:EntityShellCompany">&#9746;</ix:nonNumeric>&#160;&#160;No</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PAST FIVE YEARS)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent
to the distribution of securities under a plan confirmed by a court.&#160;&#160;&#9744;&#160;&#160;Yes&#160;&#160;&#9744;&#160;&#160;No</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 2 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="margin: 0pt">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>TABLE OF CONTENTS </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="background-color: rgb(204,238,255)">
    <td colspan="2" style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_001">INTRODUCTION</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ii</span></td></tr>
  <tr>
    <td colspan="2">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td colspan="2" style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_002">FORWARD-LOOKING INFORMATION</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">iii</span></td></tr>
  <tr>
    <td style="width: 10%">&#160;</td>
    <td style="width: 80%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_003">Part&#160;I.</a>
    </span></td>
    <td style="vertical-align: top">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM&#160;1.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_004">IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    2.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_005">OFFER STATISTICS AND EXPECTED TIMETABLE</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    3.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_006">KEY INFORMATION</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    4.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_007">INFORMATION ON THE COMPANY</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">48</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    4A.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_008">UNRESOLVED STAFF COMMENTS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">92</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    5.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_009">OPERATING AND FINANCIAL REVIEW AND PROSPECTS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">92</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    6.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_010">DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">106</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    7.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_011">MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">112</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    8.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_012">FINANCIAL INFORMATION</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">113</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    9.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_013">THE OFFER AND LISTING</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">114</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    10.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_014">ADDITIONAL INFORMATION</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">114</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    11.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_015">QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">129</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    12.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_016">DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">130</span></td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_017">Part II.</a></span></td>
    <td style="vertical-align: top">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    13.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_018">DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">131</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    14.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_019">MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</a></span></td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">131</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    15.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_020">CONTROLS AND PROCEDURES</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">131</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    16.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_021">[RESERVED]</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">133</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM&#160;16A.
    </span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_022">AUDIT COMMITTEE FINANCIAL EXPERT</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">133</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    16B.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_023">CODE OF ETHICS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">134</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    16C.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_024">PRINCIPAL ACCOUNTANT FEES AND SERVICES</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">134</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    16D.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_025">EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">135</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    16E.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_026">PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">135</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    16F.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_027">CHANGE IN REGISTRANT&#8217;S CERTIFYING ACCOUNTANT</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">135</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    16G.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_028">CORPORATE GOVERNANCE</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">135</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    16H.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_029">MINE SAFETY DISCLOSURE</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">136</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    16I.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_030">DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">136</span></td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_031">Part III.</a></span></td>
    <td style="vertical-align: top">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    17.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_032">FINANCIAL STATEMENTS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">137</span></td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    18.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_033">FINANCIAL STATEMENTS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">137</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ITEM
    19.</span></td>
    <td style="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_034">EXHIBITS</a></span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">137</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 3; Options: NewSection; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->i<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>INTRODUCTION </b></p><div>

</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company incorporated in the Cayman
Islands with no material operations of our own. We are not a Chinese operating company. Investors of our Ordinary Shares do not own any
equity interests in the VIEs (defined below), but instead own shares of a Cayman Islands holding company. Unless otherwise stated, as
used in this annual report and in the context of describing our operations and consolidated financial information, &#8220;we,&#8221; &#8220;us,&#8221;
the &#8220;Company,&#8221; &#8220;Sentage Holdings&#8221;, or &#8220;our company&#8221; refers to Sentage Holdings Inc., a Cayman Islands
holding company.&#160;</p><div>

</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#8220;Sentage Operating Companies&#8221; or the
&#8220;VIEs&#8221; refer, collectively, to Daxin Wealth Investment Management (Shanghai) Co., Ltd. (&#8220;Daxin Wealth&#8221;), Daxin
Zhuohui Financial Information Services (Shanghai) Co., Ltd. (&#8220;Daxin Zhuohui&#8221;), Qingdao Buytop Payment Services Co., Ltd. (&#8220;Qingdao
Buytop&#8221;), and Zhenyi Information Technology (Shanghai) Co., Ltd. (&#8220;Zhenyi&#8221;), and their subsidiaries, all of which are
limited liability companies organized under the laws of the Peoples Republic of China (the &#8220;PRC&#8221;).&#160;&#160;We do not have
any equity interests in the Sentage Operating Companies, but consolidate their financial results in accordance with U.S. GAAP because
we are deemed to have effective control over and be the primary beneficiary of these companies, for accounting purposes only, via a series
of contractual agreements, or the &#8220;VIE Agreements&#8221;, among Sentage WFOE (defined below), the Sentage Operating Companies and
their respective shareholders. However, the VIE Agreements have not been tested in a court of law in China as of the date of this annual
report, and as a result we are subject to various risks.&#160;&#160;As advised by our PRC counsel, Beijing Dentons Law Offices, LLP (Fuzhou)
(&#8220;Dentons&#8221;), the VIE structure is not used to provide contractual exposure to foreign investment in China-based companies
where Chinese law prohibits direct foreign investment in the operating companies; rather we use the VIE structure because the Chinese
laws and regulations affecting Sentage Operating Companies&#8217; businesses are vague and unclear. Sentage Operating Companies engage
in (i) consumer loan repayment and collection management service, (ii) loan recommendation service, and (iii) prepaid payment network
service. According to &#8220;Administrative Measures of People&#8217;s Bank of China on Payment Services Provided by Non-financial Institutions&#8221;
(&#8220;Order 2&#8221;) and &#8220;People&#8217;s Bank of China Announcement [2018] No. 7 &#8212; Announcement on Matters Relating to
Foreign-funded Payment Organizations&#8221; (&#8220;Announcement No. 7&#8221;), those who engage in prepaid network services business
within China need to go through a special legal approval procedure to obtain third-party payment licenses. Although the People&#8217;s
Bank of China has loosened the requirements for foreign-invested enterprises to hold third-party payment licenses, the review procedure
is still very strict in practice. At the same time, Chinese authorities have not yet made it clear whether to permit or prohibit foreign-invested
enterprises to engage in prepaid network services, loan collection management and loan recommendation services, and there is a risk that
Chinese authorities may prohibit direct foreign investment of such businesses. For details of the VIE Agreements, see &#8220;ITEM 4. C.
Organizational Structure &#8211; The VIE Agreements&#8221;; and for the risks associated with the VIE Agreements and the VIE structure,
see &#8220;ITEM 3D. Risk Factors &#8211; Risks Related to Our Corporate Structure&#8221;.</p><div>

</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In this annual report on Form 20-F, except where
the context otherwise requires and for purposes of this annual report only, references to:&#160;</p><div>

</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;China&#8221; or the &#8220;PRC&#8221; are to the People&#8217;s Republic of China;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Code&#8221; are to the U.S. Internal Revenue Code of 1986, as amended;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;RMB&#8221; and &#8220;Renminbi&#8221; are to the legal currency of China;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;PRC operating entities&#8221; are to Sentage WFOE (defined below) and the Sentage Operating Companies;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Sentage HK&#8221; are to Sentage Hong Kong Limited, a Hong Kong corporation, which is a wholly owned subsidiary of Sentage Holdings (defined below);</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Sentage Holdings&#8221; are to Sentage Holdings Inc., an exempted company with limited liability incorporated under the laws of Cayman Islands;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Sentage Operating Companies Shareholders&#8221; or &#8220;VIEs Shareholders&#8221; are to the shareholders of Sentage Operating Companies, or the VIEs;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Sentage WFOE&#8221; or &#8220;WFOE&#8221; are to Shanghai Santeng Technology Co., Ltd., a limited liability company organized under the laws of the PRC, which is wholly owned by Sentage HK;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;shares,&#8221; &#8220;Shares,&#8221; or &#8220;Ordinary Shares&#8221; are to the ordinary shares of Sentage Holdings, par value $0.005 per share;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;US$,&#8221; &#8220;U.S. dollars,&#8221; and &#8220;dollars&#8221; are to the legal currency of the United States;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;U.S. GAAP&#8221; are to generally accepted accounting principles in the United States;</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;VIE&#8221; are to variable interest entity; and</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;VIE Agreements&#8221; are to a series of contractual agreements among Sentage WFOE, Sentage Operating Companies, and Sentage Operating Companies Shareholders.</span></td></tr>
  </table><div>
</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business is conducted by Sentage Operating
Companies, or the VIEs, in the PRC, using RMB, the currency of mainland China. Our consolidated financial statements are presented in
United States dollars. In this annual report, we refer to assets, obligations, commitments and liabilities in our consolidated financial
statements in United States dollars. These dollar references are based on the exchange rate of RMB to United States dollars, determined
as of a specific date or for a specific period. Changes in the exchange rate will affect the amount of our obligations and the value of
our assets in terms of United States dollars which may result in an increase or decrease in the amount of our obligations (expressed in
dollars) and the value of our assets, including accounts receivable (expressed in dollars).</p><div>

</div><p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless expressly indicated herein to the contrary,
all references to share amounts in this annual report give retroactive effect to share consolidations, the last of which was effected
August 10, 2022.</p><div>

</div><!-- Field: Page; Sequence: 4; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ii<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><div><a id="a_002"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>FORWARD-LOOKING INFORMATION</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This annual report contains forward-looking statements
that reflect our current expectations and views of future events. These forward-looking statements are made under the &#8220;safe-harbor&#8221;
provisions of the U.S. Private Securities Litigation Reform Act of 1995. Known and unknown risks, uncertainties and other factors, including
those listed under &#8220;Item 3. Key Information&#8212;D. Risk Factors,&#8221; &#8220;Item 5. Operating and Financial Review and Prospects&#8212;A.
Operating Results&#8221; and &#8220;Item 11. Quantitative and Qualitative Disclosures About Market Risk&#8221; may cause our actual results,
performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements
involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be
materially different from those expressed or implied by the forward-looking statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You can identify some of these forward-looking
statements by words or phrases such as &#8220;may,&#8221; &#8220;will,&#8221; &#8220;expect,&#8221; &#8220;anticipate,&#8221; &#8220;aim,&#8221;
&#8220;estimate,&#8221; &#8220;intend,&#8221; &#8220;plan,&#8221; &#8220;believe,&#8221; &#8220;is/are likely to,&#8221; &#8220;potential,&#8221;
&#8220;continue&#8221; or other similar expressions. We have based these forward-looking statements largely on our current expectations
and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial
needs. These forward-looking statements include statements relating to:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">assumptions about our future financial and operating results, including revenue, income, expenditures, cash balances, and other financial items;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to execute our growth, and expansion, including our ability to meet our goals;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">current and future economic and political conditions;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our capital requirements and our ability to raise any additional financing which we may require;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to attract clients and further enhance our brand recognition;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to hire and retain qualified management personnel and key employees in order to enable us to develop our business;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">uncertainty about the further spread of the COVID-19 virus and the impact it may still have on the Company&#8217;s operations, the demand for the Company&#8217;s products, global supply chains, and economic activity in general;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">trends and competition in the consumer loan repayment and collection management, loan recommendation, and third-party payment services industries; </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our expectations regarding the demand for, and market acceptance of, our services and our brands;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">general economic and business conditions in the markets in which we operate;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">relevant government policies and regulations relating to our corporate structure, business and industry; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the assumptions underlying or related to any of the foregoing.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 5; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->iii<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These forward-looking statements involve various
risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations
may later be found to be incorrect. Our actual results could be materially different from our expectations. Other sections of this annual
report include additional factors that could adversely impact our business and financial performance. Moreover, we operate in an evolving
environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk
factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from those contained in any forward-looking statements. You should read thoroughly
this annual report and the documents that we refer to with the understanding that our actual future results may be materially different
from, or worse than, what we expect. We qualify all of our forward-looking statements by these cautionary statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The forward-looking statements made in this annual
report relate only to events or information as of the date on which the statements are made in this annual report. Except as required
by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You
should read this annual report and the documents that we refer to in this annual report and exhibits to this annual report completely
and with the understanding that our actual future results may be materially different from what we expect.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Industry Data and Forecasts</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This annual report also contains data related
to the consumer loan repayment and collection management, loan recommendation, and third-party payment services industries in China. These
industry data include projections that are based on a number of assumptions which have been derived from industry and government sources
which we believe to be reasonable. The consumer loan repayment and collection management, loan recommendation, and third-party payment
services industries may not grow at the rate projected by industry data, or at all. The failure of these industries to grow as anticipated
is likely to have a material adverse effect on our business and the market price of our Ordinary Shares. In addition, the rapidly changing
nature of the consumer loan repayment and collection management, loan recommendation, and third-party payment services industries subjects
any projections or estimates relating to the growth prospects or future condition of our industries to significant uncertainties. Furthermore,
if any one or more of the assumptions underlying the industry data turns out to be incorrect, actual results may, and are likely to, differ
from the projections based on these assumptions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This annual report contains information and statistics
relating to China&#8217;s economy and the industries in which we operate derived from various publications issued by PRC governmental
entities which have not been independently verified by us. The information in such official sources may not be consistent with other information
compiled in or outside China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 6; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->iv<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_003"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART&#160;I.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_004"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;1. IDENTITY OF DIRECTORS, SENIOR
MANAGEMENT AND ADVISERS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_005"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;2. OFFER STATISTICS AND EXPECTED
TIMETABLE</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_006"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;3. KEY INFORMATION</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.</b></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>[Reserved] </b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.</b></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Capitalization and Indebtedness </b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.</b></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Reasons for the Offer and Use of Proceeds </b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>D.</b></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risk Factors</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Summary of Risk Factors</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investing in our Ordinary Shares involves significant
risks. You should carefully consider all of the information in this annual report before making an investment in our Ordinary Shares.
Below please find a summary of the principal risks we face, organized under relevant headings. These risks are discussed more fully in
the section titled &#8220;Item 3. Key Information&#8212;D.&#160;Risk Factors&#8221; in this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Risks Related to Our Corporate Structure</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are also subject to risks and uncertainties
related to our corporate structure, including, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If the PRC government finds that the contractual arrangements that establish the structure for our business operations do not comply with applicable PRC laws and regulations, we could be subject to severe penalties or be forced to relinquish our interests in those operations;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We rely on contractual arrangements with the VIEs and their shareholders for our operations in China, which may not be as effective in providing operational control as direct ownership;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Substantial uncertainties exist with respect to the interpretation and implementation of any new PRC laws, rules and regulations relating to foreign investment and how they may impact the viability of our current corporate structure, corporate governance and business operations;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 7; Options: NewSection; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sentage Operating Companies Shareholders have potential conflicts of interest with us, which may adversely affect our business and financial condition;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because we rely on the exclusive business cooperation agreement with each of the Sentage Operating Companies for our revenue, the termination of this agreement would severely and detrimentally affect our continuing business viability under our current corporate structure; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because we are a Cayman island company and all of our business is conducted in the PRC, you may be unable to bring an action against us or our officers and directors or to enforce any judgment you may obtain.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Risks Related to Our Business and Industries</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Risks and uncertainties related to our business
and industries include, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have a limited operating history, which makes it difficult to evaluate our future prospects;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The industries we are in are still evolving, which makes it difficult to effectively assess our future prospects;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The financial sector in China is subject to changes in regulations. Non-compliance with new financial regulations or new licensing requirements may materially affect our business operations and financial results;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The wind-down of our past engagements in the consumer loan repayment and collection management business affected our business operation and financial performance, and we may not be able to expand our customer base by collaborating with third-party financial institutions as we have planned;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We operate a socially sensitive business public complaints against the consumer loan repayment and collection management industry generally or against us in particular may materially and adversely affect our business, financial condition and results of operations;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we fail to maintain collaboration with our funding partners, our reputation, results of operations, and financial condition may be materially and adversely affected;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fluctuations in interest rates could negatively affect our loan origination volume;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We are dependent on NetsUnion Clearing Corporation, and any changes to its rules or practices could harm our prepaid payment network business;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we fail to implement and maintain an effective system of internal controls, we may be unable to accurately or timely report the results of operations or prevent fraud, and investor confidence and the market price of our securities may be materially and adversely affected; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We may be liable for improper use or appropriation of personal information provided by the customers and any failure to comply with PRC laws and regulations over data security could result in materially adverse impact on our business, results of operations, and our continued listing on Nasdaq.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 8; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Risks Related to Doing Business in China</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Risks and uncertainties related to doing business
in China include, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There are uncertainties under the Foreign Investment Law relating to the status of businesses in China controlled by foreign invested projects primarily through contractual arrangements, such as our business;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes in China&#8217;s economic, political, or social conditions or government policies could have a material adverse effect on our business and operations;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Uncertainties in the interpretation and enforcement of PRC laws and regulations could limit the legal protection available to you and us;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRC laws and regulations governing our current business operations are sometimes vague and uncertain and any changes in such laws and regulations may impair our ability to operate profitably;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">You may experience difficulties in effecting service of legal process, enforcing foreign judgments, or bringing actions in China against us or our management named in the reporting based on foreign laws;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. regulatory bodies may be limited in their ability to conduct investigations or inspections of our operations in China;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Increases in labor costs in the PRC may adversely affect our business and our profitability;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRC regulations relating to offshore investment activities by PRC residents may subject our PRC resident beneficial owners or the PRC operating entities to liability or penalties, limit our ability to inject capital into the PRC Operating Entities, limit the PRC Operating Entities&#8217; ability to increase their registered capital or distribute profits to us, or may otherwise adversely affect us;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fluctuations in exchange rates could have a material and adverse effect on our results of operations and the value of your investment;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under the PRC Enterprise Income Tax Law, we may be classified as a PRC &#8220;resident enterprise&#8221; for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences to us and our non-PRC shareholders and have a material adverse effect on our results of operations and the value of your investment;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our PRC operating entities are subject to restrictions on paying dividends or making other payments to us, which may have a material adverse effect on our ability to conduct our business;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We face uncertainty with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Governmental control of currency conversion may affect the value of your investment and our payment of dividends;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 9; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There are significant uncertainties under the &#160;PRC Enterprise Income Tax Law relating to the withholding tax liabilities of the PRC Operating Entities, and dividends payable by the PRC operating entities to our offshore subsidiaries may not qualify to enjoy certain treaty benefits;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The &#8220;Opinions on Severely Cracking Down on Illegal Securities Activities According to Law,&#8221; or the &#8220;Opinions,&#8221; recently issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council may subject us to additional compliance requirement in the future;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recent greater oversight by the Cyberspace Administration of China (&#8220;CAC&#8221;) over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our business;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we become directly subject to the scrutiny, criticism, and negative publicity involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate and resolve the matter which could harm our business operations, stock price, and reputation;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The disclosures in our reports and other filings with the SEC and our other public pronouncements are not subject to the scrutiny of any regulatory bodies in the PRC;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The recent joint statement by the SEC and the PCAOB, rule changes by Nasdaq, and the Holding Foreign Companies Accountable Act and related regulations, all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our continued listing or future offerings of our securities in the U.S; </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We may be unable to complete a business combination transaction efficiently or on favorable terms due to complicated merger and acquisition regulations and certain other PRC regulations;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Chinese government exerts substantial influence over the manner in which we must conduct our business, and may intervene or influence our operations at any time, which could result in a material change in our operations, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of our Ordinary Shares to significantly decline or be worthless; and</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To the extent cash or assets of our business, or of the PRC Operating Entities, is in the PRC or Hong Kong, such cash or assets may not be available to fund operations or for other use outside of the PRC or Hong Kong, due to interventions in or the imposition of restrictions and limitations by the PRC government to the transfer of cash or assets.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Risks Related to Our Ordinary Shares</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Risks and uncertainties related to our Ordinary
Shares include, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We may issue additional Ordinary Shares or other equity securities without your approval, which would dilute your ownership interests and may depress the market price of our Ordinary Shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We are not expected to pay dividends on our Ordinary Shares in the foreseeable future; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we were formed under Cayman Islands law.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 10; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Risks Related to Our Corporate Structure</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If the PRC government finds that the contractual
arrangements that establish the structure for our business operations do not comply with applicable PRC laws and regulations, we could
be subject to severe penalties or be forced to relinquish our interests in those operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We operate our business through the VIEs, in which
we do not have equity interests but whose financial results have been consolidated by Sentage Holdings in accordance with U.S. GAAP because
we are deemed to have effective control over and be the primary beneficiary of these companies, for accounting purposes only, via the
VIE Agreements, which have not been tested in a court of law in China. There are uncertainties regarding the interpretation and application
of PRC laws, rules and regulations, including but not limited to the laws, rules and regulations governing the validity and enforcement
of the contractual arrangements between WFOE and the VIEs.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As advised by our PRC counsel, Dentons, if WFOE,
the VIEs, or their ownership structure or the contractual arrangements are determined to be in violation of any existing or future PRC
laws, rules or regulations, or if WFOE or the VIEs, fails to obtain or maintain any of the required governmental permits or approvals,
the relevant PRC regulatory authorities would have broad discretion in dealing with such violations, including:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">revoking the business and operating licenses of WFOE or the VIEs;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">discontinuing or restricting the operations of WFOE or the VIEs;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">imposing conditions or requirements with which we, WFOE, or the VIEs may not be able to comply;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">requiring us, WFOE, or the VIEs to restructure the relevant ownership structure or operations which may significantly impair the rights of the holders of our Ordinary Shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">restricting or prohibiting our use of the proceeds from our initial public offering to finance our business and operations in China; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">imposing fines.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Recently, the PRC government adopted a series
of regulatory actions and issued statements to regulate business operations in China, including those related to variable interest entities.
There are currently no relevant laws or regulations in the PRC that prohibit companies whose entity interests are within the PRC from
listing on overseas stock exchanges. Although we believe that our corporate structure and contractual arrangements comply with current
applicable PRC laws and regulations, in the event that PRC government determines that the contractual arrangements constituting part of
our VIE structure do not comply with PRC regulations, or if these regulations change or are interpreted differently in the future, we
may be unable to asset our contractual rights over the assets of the VIEs and their subsidiaries, and our Ordinary Shares may decline
in value or become worthless. The VIE Agreements have not been tested in a court of law in China as of the date of this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 11; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We rely on contractual arrangements with
the VIEs and their shareholders for our operations in China, which may not be as effective in providing operational control as direct
ownership.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A substantial part of our current revenue and
net income is derived from the Sentage Operating Companies. We do not have an equity interest in any of the Sentage Operating Companies
but their financial results have been consolidated by us in accordance with U.S. GAAP, due to us being deemed to have effective control
over, and be the primary beneficiary of, these companies for accounting purposes, via the VIE Agreements, which VIE Agreements have not
been tested in a court of law in China. The VIE Agreements may not be as effective in providing us with the necessary control over the
Sentage Operating Companies and their operations. Any deficiency in these VIE Agreements may result in our loss of control over the management
and operations of the Sentage Operating Companies, which will result in a significant loss in the value of an investment in our company.
We rely on contractual rights through the VIE Agreements to effect control over and management of the Sentage Operating Companies, which
exposes us to the risk of potential breach of contract by the Sentage Operating Companies Shareholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As all of the VIE agreements with the Sentage
Operating Companies are governed by PRC laws and provide for the resolution of disputes through arbitration in the PRC, they would be
interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. Disputes arising from
these VIE agreements between us and any of the Sentage Operating Companies will be resolved through arbitration in the PRC, although these
disputes do not include claims arising under the United States federal securities law and thus do not prevent you from pursuing claims
under the United States federal securities law. The legal environment in the PRC is not as developed as in the United States. As a result,
uncertainties in the PRC legal system could further limit our ability to enforce these VIE agreements, through arbitration, litigation,
and other legal proceedings in the PRC, which could limit our ability to exert effective control over the Sentage Operating Companies.
Furthermore, these contracts may not be enforceable in the PRC if the PRC government authorities or courts take a view that such contracts
contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event we are unable to enforce
these VIE agreements, we may not be able to exert effective control over the Sentage Operating Companies, and our ability to conduct our
business through the operating entities may be materially and adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Substantial uncertainties exist with respect
to the interpretation and implementation of any new PRC laws, rules and regulations relating to foreign investment and how they may impact
the viability of our current corporate structure, corporate governance and business operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March&#160;15, 2019, the National People&#8217;s
Congress promulgated the Foreign Investment Law, which came into effect on January&#160;1, 2020 and replaced the three existing laws regulating
foreign investment in China, namely, the Sino-foreign&#160;Equity Joint Venture Enterprise Law, the Sino-foreign&#160;Cooperative Joint
Venture Enterprise Law and the Wholly Foreign-invested&#160;Enterprise Law, together with their implementation rules and ancillary regulations.
The existing foreign-invested&#160;enterprises, or FIEs, established prior to the effectiveness of the Foreign Investment Law may keep
their corporate forms within five years. The Foreign Investment Law stipulates that China implements the management system of pre-establishment&#160;national
treatment plus a negative list to foreign investment, and the government generally will not expropriate foreign investment, except under
certain special circumstances, in which case it will provide fair and reasonable compensation to foreign investors. Foreign investors
are barred from investing in prohibited industries on the negative list and must comply with the specified requirements when investing
in restricted industries on such list. As of the date of this annual report, according to our PRC counsel, Dentons, our business and industry
are not on the negative list, and our VIE structure is not implemented to avoid direct foreign investment in the prohibited fields, but
to protect the Company, its subsidiaries and VIEs from uncertainties and risks related to China&#8217;s policy on foreign investments
in Sentage Operating Companies&#8217; line of businesses. On December 26, 2019, the State Council promulgated the Implementing Regulations
of the Foreign Investment Law, which came into effect on January&#160;1, 2020 and further requires that FIEs and domestic enterprises
be treated equally with respect to policy making and implementation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Foreign Investment Law, &#8220;foreign
investment&#8221; means any foreign investor&#8217;s direct or indirect investment in the PRC, including: (i) establishing FIEs in the
PRC either individually or jointly with other investors; (ii) obtaining stock shares, stock equity, property shares, other similar interests
in Chinese domestic enterprises; (iii)&#160;investing in new project in the PRC either individually or jointly with other investors; and
(iv) making investment through other means provided by laws, administrative regulations or State Council of the PRC (the &#8220;State
Council&#8221;) provisions. Although the Foreign Investment Law does not explicitly classify the contractual arrangements, such as our
contractual arrangement described in &#8220;Item 4. Information on the Company&#8212;C<i>. </i>Organizational Structure,&#8221; as a form
of foreign investment, it contains a catch-all&#160;provision under the definition of &#8220;foreign investment,&#8221; which includes
investments made by foreign investors in China through other means stipulated by laws or administrative regulations or other methods prescribed
by the State Council without elaboration on the meaning of &#8220;other means.&#8221; However, the Implementing Regulations of the Foreign
Investment Law still do not specify whether foreign investment includes contractual arrangements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 12; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">It is possible that future laws, administrative
regulations or provisions prescribed by the State Council may regard contractual arrangements as a form of foreign investment, at which
time it will be uncertain whether the contractual arrangements will be deemed to be in violation of the foreign investment access requirements
and how the above-mentioned&#160;contractual arrangements will be handled. Therefore, there is no guarantee that the contractual arrangements
and the business of our operating entities will not be materially and adversely affected in the future due to changes in the PRC laws
and regulations. Furthermore, if future laws, administrative regulations or provisions prescribed by the State Council mandate further
actions to be completed by companies with existing contractual arrangements, we may face substantial uncertainties as to the timely completion
of such actions. In the extreme case scenario, we may be required to unwind the contractual arrangements and/or dispose of the VIEs and
their subsidiaries, which could have a material and adverse effect on our business, financial conditions and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The Sentage Operating Companies Shareholders
have potential conflicts of interest with us, which may adversely affect our business and financial condition.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies Shareholders may
have potential conflicts of interest with us. These shareholders may not act in the best interest of Sentage Holdings or may breach, or
cause Sentage Operating Companies to breach, the existing VIE Agreements we have with them and the Sentage Operating Companies, which
would have a material and adverse effect on our ability to effectively control the Sentage Operating Companies and receive economic benefits
from them. For example, the shareholders may be able to cause our agreements with the Sentage Operating Companies to be performed in a
manner adverse to us by, among other things, failing to remit payments due under the VIE Agreements to us on a timely basis. We cannot
assure you that when conflicts of interest arise, any or all of these shareholders will act in the best interests of us or such conflicts
will be resolved in our favor.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, we do not have any arrangements to
address potential conflicts of interest between the Sentage Operating Companies Shareholders and us, except that we could exercise our
purchase option under the exclusive purchase option agreements with these shareholders to request them to transfer all of their equity
interests in the Sentage Operating Companies to a PRC entity or individual designated by us, to the extent permitted by PRC law. If we
cannot resolve any conflicts of interest or disputes between us and those individuals, we would have to rely on legal proceedings, which
may materially disrupt our business. There is also substantial uncertainty as to the outcome of any such legal proceeding.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Because we rely on the exclusive business
cooperation agreement with each of the Sentage Operating Companies for our revenue, the termination of this agreement would severely and
detrimentally affect our continuing business viability under our current corporate structure; and</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company and a substantial part
of our business operations are conducted through the VIE Agreements. As a result, we currently rely on the assumption that we will continue
to generate revenue from dividends payments from Sentage WFOE upon its receipt of payments from each of the Sentage Operating Companies
pursuant to the exclusive business cooperation agreement. The term of the exclusive business cooperation agreement remains effective unless
the agreement is explicitly terminated by Sentage WFOE through written form or other means specified therein. None of the Sentage Operating
Companies has the right to terminate that agreement unilaterally. Because neither we nor our subsidiaries own equity interests of the
Sentage Operating Companies, the termination of the exclusive business cooperation agreement would sever our ability to continue receiving
payments from the Sentage Operating Companies under our current holding company structure. While we are currently not aware of any event
or reason that may cause the business cooperation agreement to terminate, we cannot assure you that such an event or reason will not occur
in the future. In the event that the exclusive business cooperation agreement is terminated, this may have a severe and detrimental effect
on our viability under our current corporate structure, which, in turn, may affect the value of your investment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Because we are a Cayman Island company and
all of our business is conducted in the PRC, you may be unable to bring an action against us or our officers and directors or to enforce
any judgment you may obtain.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are incorporated in the Cayman Islands and
conduct our operations primarily in China. Substantially all of our assets are located outside of the United States. In addition, all
of our directors and officers reside outside of the United States. As a result, it may be difficult or impossible for you to bring an
action against us or against these individuals in the United States in the event that you believe we have violated your rights, either
under United States federal or state securities laws or otherwise, or if you have a claim against us. Even if you are successful in bringing
an action of this kind, the laws of the Cayman Islands and of China may not allow you to enforce a judgment against our assets or the
assets of our directors and officers. See &#8220;Enforceability of Civil Liabilities.&#8221; &#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 13; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The VIE Agreements among Sentage WFOE and
each of the Sentage Operating Companies may result in adverse tax consequences.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PRC laws and regulations emphasize the requirement
of an arm&#8217;s length basis for transfer pricing arrangements between related parties. The laws and regulations also require enterprises
with related party transactions to prepare transfer pricing documentation to demonstrate the basis for determining pricing, the computation
methodology, and detailed explanations. Related party arrangements and transactions may be subject to challenge or tax inspection by the
PRC tax authorizes</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under a tax inspection, as advised by our PRC
counsel, Dentons, if our transfer pricing arrangements among Sentage WFOE and each of the Sentage Operating Companies are judged to be
tax avoidance vehicles, or related documentation does not meet the requirements, Sentage WFOE and each of the Sentage Operating Companies
may be subject to material adverse tax consequences, such as transfer pricing adjustment. A transfer pricing adjustment could result in
a reduction, for PRC tax purpose, of adjustments recorded by Sentage WFOE, which could adversely affect us by (i) increasing Sentage Operating
Companies&#8217; tax liabilities without reducing our subsidiaries&#8217; tax liabilities, which could further result in interest being
levied to us for unpaid taxes; (ii) limiting the ability of our PRC companies to maintain preferential tax treatment and other financial
incentives; or (iii) the PRC tax authorities may impose late payment fees and other penalties on a Sentage Operating Company for the adjusted
but unpaid taxes according to the applicable regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We rely on the approvals, certificates and
business licenses held by the Sentage Operating Companies and any deterioration of the relationship between Sentage WFOE and any of the
Sentage Operating Companies could materially and adversely affect our overall business operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the VIE Agreements, a substantial
part of our business in the PRC will be undertaken on the basis of the approvals, certificates, business licenses, and other requisite
licenses held by each of the Sentage Operating Companies. There is no assurance that all the Sentage Operating Companies will be able
to renew their approvals, licenses or certificates when their terms expire with substantially similar terms as the ones they currently
hold.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further, our relationship with each of the Sentage
Operating Companies is governed by the VIE Agreements, which are intended to provide us, through our indirect ownership of Sentage WFOE,
with effective control over the business operations of each of the Sentage Operating Companies. However, the VIE Agreements may not be
effective in providing control over the applications for and maintenance of the licenses required for our business operations. Each of
the Sentage Operating Companies could violate the VIE Agreements, go bankrupt, suffer from difficulties in its business, or otherwise
become unable to perform its obligations under the VIE Agreements and, as a result, our operations, reputation, business, and stock price
could be severely harmed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;If any of our operating entities becomes
the subject of a bankruptcy or liquidation proceeding, we may lose the ability to use and enjoy assets held by such entity, which could
materially and adversely affect our business, financial condition and results of operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently conduct our operations in China through
contractual arrangements with the Sentage Operating Companies and the Sentage Operating Companies Shareholders. As part of these arrangements,
most of our assets that are important to the operation of our business are held by the Sentage Operating Companies. If any of these entities
goes bankrupt and all or part of their assets become subject to liens or rights of third-party creditors, we may be unable to continue
some or all of our business activities, which could materially and adversely affect our business, financial condition and results of operations.
If any of our operating entities undergoes a voluntary or involuntary liquidation proceeding, its equity owners or unrelated third-party
creditors may claim rights relating to some or all of these assets, which would hinder our ability to operate our business and could materially
and adversely affect our business, our ability to generate revenue and the market price of our Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PRC regulation of loans and direct investment
by offshore holding companies to PRC entities may delay or prevent us from using financing activities to make loans or additional capital
contributions to the PRC operating entities and operating entities, which could harm our liquidity and our ability to fund and expand
our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 14; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As an offshore holding company of the PRC Operating
Entities, we may (i) make loans to the PRC Operating Entities, (ii) make additional capital contributions to the PRC Operating Entities,
(iii) establish new PRC subsidiaries and make capital contributions to these new PRC subsidiaries, and (iv) acquire offshore entities
with business operations in China in an offshore transaction. However, most of these uses are subject to PRC regulations and approvals.
For example:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">loans by us to our wholly-owned subsidiary in China, which is a foreign-invested enterprise, cannot exceed statutory limits and must be registered with the State Administration of Foreign Exchange of the PRC, or SAFE, or its local counterparts; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">loans by us to our operating entities, which are domestic PRC entities, over a certain threshold must be approved by the relevant government authorities and must also be registered with SAFE or its local counterparts.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, on August 29, 2008, SAFE promulgated
Circular 142, a notice regulating the conversion by a foreign-invested company of its capital contribution in foreign currency into Renminbi.
The notice requires that the capital of a foreign-invested company settled in Renminbi converted from foreign currencies shall be used
only for purposes within the business scope as approved by the applicable governmental authorities. Such loan may not be used for equity
investments within the PRC unless such activity is set forth in the business scope or is otherwise permissible under PRC laws or regulations.
In addition, SAFE strengthened its oversight of the flow and use of such capital of a foreign-invested company settled in Renminbi converted
from foreign currencies. The use of such Renminbi capital may not be changed without SAFE&#8217;s approval, and may not in any case be
used to repay Renminbi loans if the proceeds of such loans have not otherwise been used. Violations of Circular 142 will result in severe
penalties including heavy fines. In order to further reform the foreign exchange administration system, SAFE issued the Circular on Reform
of Administration Model of the Settlement of Foreign Currency Capital of Foreign-Invested Enterprises on March 30, 2015, or Circular 19,
which took effect from June 1, 2015 and replaced the SAFE Circular 142. Circular 19 allows foreign invested enterprises to settle their
foreign exchange capital on a discretionary basis according to the actual needs of their business operations and provides procedures by
which a foreign-invested company may convert and use equity investments made in foreign currencies. Circular 19 also reiterates, however,
the principle that Renminbi converted from the foreign currency-denominated capital of a foreign-invested company may not be used, either
directly or indirectly, for purposes beyond its business scope.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, SAFE has promulgated Notice of the
State Administration of Foreign Exchange on Policies for Reforming and Regulating the Control over Foreign Exchange Settlement under the
Capital Account, on June 9, 2016, hereinafter referred to as Circular 16, which emphasizes the unified policies for discretionary settlement
of foreign exchange receipts under the capital account by domestic institutions. Circular 16 also reiterated the principle that Renminbi
converted from the foreign currency-denominated capital of a foreign-invested company may not be used, either directly or indirectly,
for purposes beyond the company&#8217;s business scope. Circular 16 requires SAFE&#8217;s local counterparts to unify and regulate the
control over discretionary settlement and payment of foreign exchange receipts under the capital account, with the purpose of better serving
and facilitating domestic enterprises&#8217; needs in business and capital operations. Circular 16 stipulates that a domestic enterprise,
when using its capital account foreign exchange income and Renminbi funds obtained from foreign exchange settlements, shall abide by the
principle of truthfulness and only apply such funds for use in its own operations, and will comply with the following: (1) such receipts
and funds shall not, directly or indirectly, be used for the expenditures beyond the business scope of domestic institutions or the expenditures
prohibited by laws and regulations of the State; (2) unless otherwise provided, such receipts and funds shall not, directly or indirectly,
be used for investment in securities or other investments than banks&#8217; principal-secured products; (3) such receipts and funds shall
not be used for the granting of loans to non-affiliated enterprises, with the exception that such granting is expressly permitted in the
business license; and (4) such receipts and funds shall not be used for construction or purchase of real estate for purpose other than
self-use (subject to certain exceptions for real estate enterprises).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect that PRC laws and regulations may continue
to limit our use of proceeds from financing sources. We cannot assure you that we will be able to obtain these government registrations
or approvals on a timely basis, if at all, with respect to future loans or capital contributions by us to our entities in China. If we
fail to receive such registrations or approvals, our ability to capitalize our PRC operations may be negatively affected, which could
adversely affect our liquidity and our ability to fund and expand our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 15; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Risks Related to Our Business and Industries</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We have a limited operating history, which
makes it difficult to evaluate our future prospects</i></b><i>.</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Through Sentage Operating Companies, we launched
our (i) consumer loan repayment and collection management business in 2015, (ii) loan recommendation business in June 2019, and (iii)
prepaid payment network business in August 2019. We only have a limited operating history. Members of our management team have been working
together only for a short period of time and are still in the development period. They may still be in the process of exploring approaches
to running our company and reaching consensus among themselves, which may affect the efficiency and results of our operation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have limited experience in most aspects of
our business operation, such as service and product offerings, credit assessment, risk management, and the development of long-term relationships
with borrowers, funding partners, and other business partners. As our businesses develop or in response to competition, we may continue
to introduce new products and services, adjust our existing product and service profile, or make changes to our business operation in
general. Any significant change to our business model may have a material and adverse impact on our financial condition and results of
operations. It is therefore difficult to effectively assess our future prospects.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, in addition to our existing product
services and offerings, we may also from time to time explore other growth opportunities, such as broadening our customer base across
all three business lines and seek strategic partnerships to enter new markets that are complementary to our existing business lines. These
initiatives may have different impacts on our operation, including cannibalization of existing services. Failure to manage our expansion
may have an unexpected material effect on our financial condition and results of operation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>The industries we are in are still evolving, which makes it difficult
to effectively assess our future prospects.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The industries in which we operate through Sentage
Operating Companies, including the consumer loan repayment and collection management industry, loan recommendation industry, and the third-party
payment services industry in the PRC are still in evolving stages. The regulatory framework for these industries remains uncertain for
the foreseeable future. Many market players in these industries, including us, are inexperienced in responding to changes of market situations
effectively and keeping the growth of business steadily when the industries enter a different stage. We may not be able to sustain our
historical growth rate in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You should consider our business and prospects
in light of the risks and challenges we encounter or may encounter given the rapidly evolving markets in which we operate and our limited
operating history. These risks and challenges include our ability to, among other things:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">offer competitive product and services;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">broaden our prospective customer bases across three business lines;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">increase the utilization of our products and services by existing customers as well as new customers;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain and enhance our relationship and business collaboration with our partners, including, but not limited to, developing cooperative relationships with new funding partners to provide borrowers with sufficient, diversified, and cost-effective funding options and maintaining strategic partnerships with NetsUnion Clearing Corporation, or NetsUnion;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 16; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">navigate a complex and evolving regulatory environment in China;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">improve our operational efficiency;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">attract, retain and motivate talented employees to support our business growth;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">enhance our technology infrastructure to support the growth of our business, maintain the security of our systems, and safeguard the confidentiality of the information provided and utilized across our systems;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">navigate economic conditions and fluctuation; and\or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">defend ourselves against legal and regulatory actions, such as actions involving intellectual property or privacy claims.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The financial sector in China is subject
to changes in regulations. Non-compliance with new financial regulations or new licensing requirements may materially affect our business
operations and financial results.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s operations are subject to
evolving regulatory oversight by the Chinese governmental and local regulatory authorities. As the Chinese financial sector grows, applicable
laws, rules, and regulations are evolving. Any changes in laws and regulations applicable to our operations may increase our cost of compliance
or may force us to revise our business plan or cease some aspects of our operations. If we fail to continuously comply with applicable
rules and regulations, we may face fines or restrictions on our business activities, or even a suspension of all or part of our business
operations. Furthermore, the Chinese governmental and local authorities may institute new licensing requirements applicable to our current
or future operations. If such licensing requirements were introduced, we cannot assure you that we would be able to obtain any newly required
license promptly, or at all, which could materially and adversely affect our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The wind-down of our past engagements in
the consumer loan repayment and collection management business affected our business operation and financial performance, and we may not
be able to expand our customer base by collaborating with third-party financial institutions as we have planned. </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our existing loan repayment
and collection management engagements were completed by the end of 2021, and no related revenue was generated in fiscal year 2022. With
a team of experienced loan management professionals, the Company plans to continue its consumer loan repayment and collection management
business by expanding its client base and collaborating with third-party financial institutions. However, we cannot guarantee the success
of such business plan. Although we believe that we can engage new clients and continue our consumer loan repayment and collection management
business successfully, there can be no assurance that such will be the case and we have not been able to execute our plan as of the date
of this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 17; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We operate a socially sensitive business.
Public complaints against the consumer loan repayment and collection management industry generally or against us in particular may materially
and adversely affect our business, financial condition and results of operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The general public may have certain misconceptions
about the consumer loan repayment and collection management industry, such as the perceived use of unlawful means to collect debts. Given
the growth of collection service providers in China, the contentious nature associated with debt collection, the unpredictability of borrower
behavior, and the inflow of small-scale market participants with weak compliance protocols, the consumer loan repayment and collection
management industry is subject to potentially higher and unpredictable government scrutiny. Such development could subject our operations
to regulatory restrictions, government investigations, administrative fines, and increased compliance requirements. As a result, our business
and our ability to generate revenue could be materially and adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, negative publicity about our industry
and business creates the possibility of heightened attention from the public, the media and government regulators. From time to time,
complaints or allegations against us, regardless of their veracity, may result in negative publicity, which in turn could result in government
inquiry or reputational harm. There is no assurance that we would not become a target for public scrutiny in the future or such scrutiny
and public exposure would not severely damage our reputation, business, and prospects. Furthermore, we rely heavily on our reputation
to develop and maintain client relationships. Our prospective clients, including commercial banks, may refuse to work with us if we suffer
from a tarnished reputation, since any perceived or actual violation of laws and regulations by service providers could increase our clients&#8217;
regulatory risks. As such, our business is particularly vulnerable to negative media coverage and negative publicity.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, our directors and management may
become subject to scrutiny by the media and the public regarding our business, which may result in unverified, inaccurate or misleading
information about our directors and management being reported by the press. Negative publicity about our directors or management, even
if untrue or inaccurate, may harm our reputation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 18; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If the scale and growth of our loan recommendation
business are restrained by PRC laws and regulations, our business, financial condition, and prospects would be materially and adversely
affected.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As part of our business model, we provide recommendation
services to funding partners under our loan recommendation business, which allow funding partners to access borrowers who have passed
our risk assessment. The funding partners make the final credit decision based on their own credit assessment and are also in charge of
funding and servicing the loans. See &#8220;Business&#8212;Loan Recommendation&#8221; for details.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the current PRC regulatory regime, the legal
definition and regulatory principles of loan recommendation services and specific regulatory requirements regarding the services have
not been clarified in any relevant promulgated laws or regulations. However, in light of the evolving and developing nature of the regulatory
regime regarding loan recommendation services in China, it is probable that the Chinese government will adopt regulations and policies
that may temporarily restrain the scale and growth of our loan recommendation services in the future. For more details, see &#8220;Regulations&#8212;Regulations
on Loan Recommendation Services.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Conditions that negatively impact the real
estate market in China may affect the loan amount borrowers may receive from funding partners, reduce demand for the operating entities&#8217;
loan recommendation business, and adversely impact their business, results of operations, and financial condition.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We only recommend borrowers who are able to collateralize
properties evaluated and approved by our dedicated team of experienced professionals. The borrowers who have used our loan recommendation
services are primarily owners of residential properties in Shanghai City, China. Accordingly, the success of our business is closely tied
to the conditions of the real estate market segment in which these borrowers are located. Various changes in real estate conditions may
impact this market segment. Any negative trends in such real estate conditions may affect the loan amount borrowers may receive from funding
partners, the demand for our recommendation services, the accuracy of our property valuation and, as a result, adversely affect our results
of operations. These conditions include:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">oversupply of, or a reduction in demand for, residential properties;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">zoning, rent control or stabilization laws, or other laws regulating the real estate market segment;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in the national and local tax code related to real estate;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">increased operating costs, including increased real property taxes, maintenance, insurance, and utilities costs; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential liability under environmental and other laws.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any or all of these factors could negatively impact
the real estate market segment and, as a result, reduce the demand for loans provided by our funding partners or the terms on which they
are able to make loans and, as a result, materially and adversely affect us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Fraudulent activity could negatively impact
our operating results, brand, and reputation, and cause the use of our loan recommendation services to decrease.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to the risk of fraudulent activity
associated with borrowers and parties handling borrower or funding partner information. Our resources, technologies and fraud detection
tools may be insufficient to accurately detect and prevent fraud. Even if we identify a fraudulent borrower and reject her loan recommendation
application, such borrower may re-apply by using fraudulent information. We may fail to identify such behavior, despite our measures to
verify personal identification information provided by borrowers. Furthermore, we may not be able to recoup funds underlying transactions
made in connection with fraudulent activities. A significant increase in fraudulent activities could negatively impact our brands and
reputation, discourage funding partners from collaborating with us, reduce the total amount of loans originated by funding partners, and
lead us to take additional steps to reduce fraud risk, which could increase our costs. High profile fraudulent activity could even lead
to regulatory intervention and may divert our management&#8217;s attention and cause us to incur additional expenses and costs. Although
we have not experienced any material business or reputational harm as a result of fraudulent activities in the past, we cannot rule out
the possibility that fraudulent activities may materially and adversely affect our business, financial condition, and results of operations
in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 19; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We rely on our risk management model in
assessing the creditworthiness of borrowers, the value of collateralized property, and risks associated with loans. If our risk management
approach is ineffective, or if we otherwise fail or are perceived to fail to manage the impact of default, our reputation and market share
would be materially and adversely affected, which would severely impact our business and results of operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our ability to attract borrowers and funding partners
to, and build trust in, our loan recommendation business is significantly dependent on our ability to effectively evaluate borrowers&#8217;
credit profiles, the likelihood of default, and the value of borrowers&#8217; collateralized properties. We have devised and implemented
a systematic credit assessment model and an asset-driven, disciplined risk management approach to minimize a borrower&#8217;s default
risk and mitigate the impact of default. Specifically, our assessment model and risk management capabilities not only enable us to select
high-quality borrowers whose financial conditions and personal background are satisfactory to us, but also protect our funding partners
against lending more than they might be able to recover in the case of default. For details on our credit assessment and risk management
approach, see &#8220;Business&#8212;Loan Recommendation&#8212;Credit Assessment and Risk Management.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the risk management process, appraisals
are obtained on the collateral underlying each prospective mortgage. Although we have adopted internal measures to guide the appraisal
process and conducted internal review for each appraisal opinion, the quality of these appraisals may vary widely in accuracy and consistency.
The appraiser may feel pressure to provide an appraisal in the amount necessary to enable funding partners to make the loan, whether or
not the value of the property justifies such an appraised value. Inaccurate or inflated appraisals may result in an increase in the severity
of losses on the mortgage loans, which could have a material and adverse effect on our reputation, business, and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There can be no assurance that our risk management
measures will allow us to identify or appropriately assess whether the interest and principal payments due on a loan will be repaid when
due, or at all, or whether the value of the mortgaged property will be sufficient to otherwise provide for recovery of such amounts. Our
risk management measures are narrower than some of our competitors because we give primary consideration to the adequacy of the property
as collateral rather than focusing on the personal income of the borrower. For example, while we have adopted a multifactor selection
process, there is no minimum credit score that a potential borrower must have in order to obtain a recommendation from us. Although we
believe that this asset-driven approach is one of our competitive advantages, it may result in higher delinquency and default rates than
those experienced by our competitors with broader risk management measures and/or those who require minimum credit scores. Furthermore,
if we are unable to identify delinquency, default, and other fraud risks of the borrower through our risk management measures, although
we are not legally responsible for such risks, they may still expose us to reputational harm, reduce our industry credibility, and adversely
affect our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On a case by case basis, our in-house credit assessment
team may determine that a prospective borrower that does not strictly qualify under our internal guidelines warrants a recommendation
exception, based upon compensating factors. Compensating factors may include, but are not limited to, higher borrower net worth or liquidity,
stable employment, longer length of time in business and length of time owning the property. If our funding partners lend loans to these
borrowers recommended by us, it may result in a higher number of delinquencies and defaults.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We also rely on analytical models (both models
developed by us and those supplied by third parties) and information and data (both generated by us and supplied by third parties). Models
and data will be used to make projections on borrowers&#8217; ability to repay loans and estimate value of collateralized properties.
When models and data prove to be incorrect, misleading or incomplete, any decisions made in reliance thereon expose us to potential risks.
Some of the analytical models we use, such as mortgage default models, are predictive in nature. The use of predictive models has inherent
risks. For example, such models may incorrectly forecast future behavior, leading to volatility in results. In addition, the predictive
models used by us may differ substantially from those models used by our competitors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any of the foregoing were to occur in the future,
our funding partners may try to rescind their affected investments or decide not to invest in loans, or borrowers may seek to revise the
terms of their loans or reduce the use of our services, and our reputation and market share would be materially and adversely affected,
which would severely impact our business and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 20; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We rely on our risk management team to establish
and execute our risk management policies. If our risk management team or key members of such team were unable or unwilling to continue
in their present positions, our business may be severely disrupted.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We rely on our risk management team to continuously
adjust our property valuation method, which is the center of our risk management policies. We rely on our risk management team to spot
and fix potential errors and flaws in our property valuation method. Meanwhile, the primary mortgage market in China changes fast and
we may need to adjust our risk management principles from time to time to minimize borrowers&#8217; default rate while securing a stable
increase in the number of borrowers and satisfying returns for our funding partners. We rely on our risk management team to closely monitor
the change in the market and our business and update our risk management principles accordingly. If our risk management team or key members
of such team were unable or unwilling to continue in their present positions, we may have to incur additional time and monetary cost to
find a replacement to our risk management team that fits us, and our result of business operation and financial conditions may be adversely
and severely impacted.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Credit and other information we receive
from third parties about borrowers may be inaccurate or may not accurately reflect the borrower&#8217;s creditworthiness, which may compromise
the accuracy of our credit assessment.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For credit assessment purposes, we obtain certain
information of the prospective borrowers from prospective borrowers directly and some information from third parties. For more details
on our information collection measures, see &#8220;Business&#8212;Loan Recommendation&#8212;Credit Assessment and Risk Management&#8212;Information
Collection, Verification, and Fraud Detection.&#8221; Such information may not be complete, accurate, or reliable. Our credit assessment
may not reflect that particular borrower&#8217;s actual creditworthiness because the assessment may be based on outdated, incomplete,
or inaccurate borrower information. We currently cannot accurately determine whether borrowers have outstanding loans at the time they
apply for loans through the use of recommendation services even though we have adopted compliance processes. This creates the risk that
a borrower may borrow money through our services in order to pay off loans they have obtained through other funding sources and vice versa.
If a borrower incurs additional debt before fully repaying any loan such borrower takes out with our funding partner, the additional debt
may impair the ability of that borrower to make repayments on her loan with the funding partner. In addition, the additional debt may
adversely affect the borrower&#8217;s creditworthiness generally and could result in the financial distress or insolvency of the borrower.
As a result, we may incur reputational harm and lose potential or existing business opportunities with our funding partners.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Meanwhile, if the price of the quality data increases,
we may not get access to the quality information at the same cost in the future. We may be forced to conduct credit assessment with less
quality data or pay more for quality information in the future, which could adversely affect our business, financial conditions, and result
of the operation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If we are unable to maintain or increase
the overall loan volume, if we are unable to retain existing borrowers or attract new borrowers, or if we fail to meet the financial needs
of borrowers as they evolve and are therefore unable to capture their long-term growth potential, our loan recommendation business and
results of operations will be adversely affected.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To maintain or grow our loan recommendation business,
we must continuously increase the loan volume by retaining current borrowers and attracting additional borrowers. We intend to continue
to dedicate significant resources to our borrower acquisition efforts. If there are insufficient qualified loan requests, our funding
partners may consider withdrawing from our collaboration, which may result in borrowers being unable to obtain capital through our recommendation
services and turning to other sources for their borrowing needs.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The overall loan volume may be affected by several
factors, including our brand recognition and reputation, the interest rates offered to borrowers relative to the market rates, the efficiency
of our credit assessment process, availability of our funding partners, the macroeconomic environment, and other factors. In connection
with the introduction of new services or response to general economic conditions, we may also impose more stringent borrower qualifications
to ensure the quality of our recommended borrowers, which may negatively affect the growth of loan volume.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 21; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any of our current user acquisition channels
become less effective, if we are unable to continue to use any of these channels or if we are not successful in using new channels, we
may not be able to attract new borrowers in a cost-effective manner or convert potential borrowers into active borrowers, and may even
lose our existing borrowers to our competitors. If we are unable to attract qualified borrowers or if borrowers do not continue to use
our recommendation services at the current rates, we might be unable to increase loan volume as we expect, and our business and results
of operations may be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Some borrowers may use our loan recommendation
services through business contacts, which could expose us to risks associated with such third parties.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Some borrowers are referred to us after receiving
and reviewing the information provided by a third party. We do not verify, validate or modify any information provided by third-party
websites and, while we do not believe we would have liability for such information, it is possible that an unsatisfied borrower could
bring claims against us based on such information. Such claims could be costly and time-consuming to defend and would distract management&#8217;s
attention from the operation of our business and create negative publicity, which could harm our business and affect our reputation. In
addition, if the business operation of such third parties deteriorate, the unsatisfied borrowers may associate our company with such third
parties, which could harm our business and negatively affect our reputation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If we fail to maintain collaboration with
our funding partners, our reputation, results of operations, and financial condition may be materially and adversely affected.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our funding partners typically agree to provide
funding to borrowers who meet their predetermined criteria, subject to their credit approval process. While borrowers&#8217; loan requests
are usually approved if they fall within the parameters set and agreed upon by us and our funding partners, our funding partners may implement
additional requirements in their approval process outside of our capacity to monitor and control. Thus, there is no assurance that our
funding partners could provide reliable, sustainable and adequate funding, either because they could decline to fund borrowers recommended
by us or decline to continue consider qualified borrowers recommended by us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, if PRC laws and regulations impose
more restrictions on our collaboration with funding partners, these funding partners will become more selective in choosing business partners
for recommendation services, which may drive up the competition among loan recommendation service providers. If our funding partners,
which mainly consist of national and regional banks, are restricted from funding loans to borrowers recommended by us in any sense, it
may adversely affect our results of operations. Furthermore, if the PRC government issues any laws and regulations that restrict or prohibit
our collaboration with our funding partners, our collaboration with our funding partners may have to be terminated or suspended, which
may materially and adversely affect our business, financial condition and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 22; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If our loan recommendation services do not
achieve sufficient market acceptance, our financial results and competitive position will be harmed.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To achieve market acceptance of our recommendation
services, it is essential for us to maintain and enhance our ability to match and recommend suitable mortgage products for our borrowers
and the effectiveness of our credit assessment and property valuation process. If we are unable to respond to changes in borrower preference
and deliver satisfactory and distinguishable borrower experience, existing borrowers and prospective borrowers may prefer services provided
by competitors or obtain mortgage products directly from funding providers. As a result, loan recommendation applications will decrease,
and our services and solutions will be less attractive to funding partners, and our business, financial performance, and prospects will
be materially and adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our loan recommendation services could fail to
attain sufficient market acceptance for many reasons, including:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">borrowers may not find the features of available mortgage loan products, such as the prices and credit limits, competitive or appealing;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">we may fail to predict market demand accurately and recommend mortgage products that meet this demand in a timely fashion;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">borrowers and funding partners using our services may not like, find useful, or agree with the changes we make;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">there may be defects, errors, or failures in our credit assessment and risk management process;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">there may be negative publicity about our recommendation services;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulatory authorities may take the view that our existing and new recommendation services do not comply with PRC laws, regulations or rules applicable to us; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">there may be competing products or services introduced or anticipated to be introduced by our competitors.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If our loan recommendation services do not maintain
or achieve adequate acceptance in the market, our competitive position, results of operations and financial condition could be materially
and adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Fluctuations in interest rates could negatively
affect our loan origination volume.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Most of the mortgages provided by our funding
partners are issued with fixed interest rates. Fluctuations in the interest rate environment may discourage funding partners to provide
loans for borrowers recommended by us, which may adversely affect our business. Meanwhile, if our funding partners fail to respond to
the fluctuations in interest rates in a timely manner, the available mortgage products may become less attractive to borrowers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our success depends on the ability to develop
products and services to address the rapidly evolving market for third-party payment services, which include prepaid payment network services.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As we offer prepaid payment network services,
which is a subcategory of third-party payment services, we expect that new products, services and technologies applicable to the third-party
payment services industry in which we operate will continue to emerge and evolve. Rapid and significant technological changes continue
to shape such industry, including developments in ecommerce, mobile commerce, and proximity payment devices. Other potential changes,
such as developments in big data analytics and artificial intelligence, are on the horizon as well. Similarly, there is rapid innovation
in the products and services to facilitate business operations, including technology-enabled business services. These new products, services
and technologies may be superior to, impair, or render obsolete the payment services we currently offer, or the technologies we currently
use to provide them.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 23; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Incorporating new technologies into our payment
services may require substantial expenditures and considerable time, and we may not be successful in realizing a return on these development
efforts in a timely manner or at all. There can be no assurance that any new products or services we develop and offer to our customers
will achieve significant commercial acceptance. Our ability to develop new products and services may be inhibited by industry-wide standards,
laws and regulations, payment networks, resistance to change from customers, or third parties&#8217; intellectual property rights. The
planned timing for introduction of new products and services is subject to risks and uncertainties. We cannot assure you that any of our
new payment products and services will achieve widespread market acceptance and generate incremental revenue. Moreover, actual timing
may differ materially from original plans. Unexpected technical, distribution or other problems could delay or prevent the introduction
of our new products and services. If we are unable to provide enhancements and new features for our prepaid payment network services or
keep pace with rapid technological developments and evolving industry standards, our business, results of operations, and financial condition
would be materially and adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Market, economic and other conditions in
China may adversely affect the demand for our products and services.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payment services depend upon the overall level
of economic conditions and consumer spending in China. A sustained deterioration in the general economic conditions in China, including
any turmoil in the economy, reductions in household disposable income, distresses in financial markets, or reduced market liquidity, as
well as increased government intervention, may reduce the number of our customers. Small-to-medium size business owners, in particular,
are more susceptible to adverse changes in market, economic and regulatory conditions and the level of consumption in China. As a result,
the demand for our existing and new payment services could decrease, and our financial performance could be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Adverse market trends may affect our financial
performance. Such trends may include, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">fluctuations in consumer demand, which reflect the prevailing economic and demographic conditions;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">low levels of consumer and business confidence associated with recessionary environments which may in turn reduce consumer spending;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">financial institutions restricting credit lines to cardholders or limiting the issuance of new cards to mitigate cardholder defaults; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">government intervention and regulation, and/or reduction in government investments in our customers, and that may reduce their desire to use our products and services.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are subject to extensive regulations
in the third-party payment services industry. Non-compliance with or changes to the regulations or licensing regimes may materially affect
our business operations and financial results.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As prepaid payment network services is a subcategory
third-party payment services, we are subject to the regulations applicable to the third-party payment services industry, which is implemented
and monitored by several regulatory authorities, such as the PBOC, the China Securities Regulatory Commission (&#8220;CSRC&#8221;), the
State Administration of Foreign Exchange (&#8220;SAFE&#8221;), the National Development and Reform Commission (&#8220;NDRC&#8221;) and
the China Banking and Insurance Regulatory Commission (&#8220;CBIRC&#8221;). There are laws and regulations that cover different aspects
of the industry including entry into such businesses, scope of permitted activities, licenses and permits for various operations and pricing.
Major laws and regulations that govern our prepaid payment network business include or may in the future include those relating to payment
services, such as payment processing and settlement, money transfer, foreign exchange, anti-money laundering and financial consumer protection,
insurance and financial services. See &#8220;Regulations&#8212;Regulations on Prepaid Payment Network Services.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As the third-party payment services industry in
China is emerging and evolving, the applicable laws, rules, and regulations are continually developing and evolving. Any changes in the
relevant rules and regulations may result in an increase in our cost of compliance or might restrict our business activities. If we fail
to continuously comply with the applicable rules, regulations, we may face fines or restrictions on our business activities, or even a
suspension or revocation of some or all of our licenses that allow us to carry on our business activities. Furthermore, the PRC government
may institute new licensing regimes covering our current and future services offerings. If such a licensing regime were introduced, we
cannot assure you that we would be able to obtain any newly required license in a timely manner, or at all, which could materially and
adversely affect our business and impede our ability to continue our operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 24; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our efforts to expand our payment service
offerings may not succeed and may reduce our revenue growth.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While we intend to continue to broaden the scope
of our payment services, we may not be successful in deriving any significant revenue from such efforts. Failure to do so may inhibit
the growth of our business, as well as increase the vulnerability of our core payments business to competitors who offer a full suite
of products and services. Furthermore, we may have limited or no experience in our newly expanded markets. We cannot assure you that any
of our new payment services will be widely used. These offerings may present new technology, operational, and other challenges. If we
experience service disruptions, failures, or other issues, our business may be materially and adversely affected. Our newly expanded business
operations may not recoup our investments in a timely manner or at all. If any of these events were to occur, it could damage our reputation,
limit our growth, and materially and adversely affect our business, results of operations and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If we are unable to provide customers with
satisfactory experience, or otherwise fail to maintain or enlarge our customer base, the volume of transactions processed via our prepaid
payment network services may decline and our results of operations may be adversely affected.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that customer base is the core building
block of our prepaid payment network business, and our ability to provide customers with satisfactory experience is critical to our success
and continuous growth in revenue and customer base. If we fail to deliver satisfactory and distinct user experience, we may lose our customers
and business partners, resulting in a decrease in the volume of transactions processed via our payment services, and our results of operations
may be adversely affected. Our ability to provide customers with satisfactory experience is subject to a number of factors, including
our ability to provide effective services, our ability to continuously innovate and improve our services to meet customer needs, and our
access to and cooperation with our business partners. We may lose customers and revenue, and our results of operations could be materially
and adversely affected if we fail to provide satisfactory experience to our customers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are dependent on NetsUnion Clearing Corporation,
and any changes to its rules or practices could harm our prepaid payment network business.&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the People&#8217;s Bank of China,
or the PBOC, after June 30, 2018, third-party payment service providers, which include prepaid payment network service providers, are
required to channel internet payments via NetsUnion, rather than banks&#8217; payment gateways. As a result, we rely on NetsUnion to process
transactions on our behalf. However, NetsUnion may fail or refuse to process transactions adequately, may breach its agreement with us,
or may refuse to renew the agreement on commercially reasonable terms. It may also take actions that downgrade the functionality of our
services, impose additional costs or requirements on us, or give preferential treatment to competitive services, including those of its
own. If we are unsuccessful in establishing or maintaining mutually beneficial relationship with NetsUnion, our business may be harmed,
as there is no alternative to NetsUnion to furnish the same services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NetsUnion requires us to comply with its network
operating rules, including special operating rules that apply to us as a provider of payment services to customers. These rules are set
by NetsUnion, which has the discretion as to interpretation and alteration. If there is any interpretation of, or alteration to the network
rules that are inconsistent with the way we currently operate, we may be required to make changes to our business operation. This could
be costly or difficult to implement. If we fail to make such changes or otherwise resolve the issue with NetsUnion, we could be fined
or prohibited from processing prepaid cards. In addition, violations of the network rules or failure to maintain good relationships with
NetsUnion could increase our costs or otherwise harm our prepaid payment network business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 25; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our current risk management system and internal
control policies and procedures may not be able to exhaustively address or mitigate all risks to which we are exposed through our prepaid
payment network business.</i></b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to various kinds of risks, including
business risks, operational risks and financial risks. Currently, we rely on our data driven risk management system, and internal control
policies and procedures to address and mitigate these risks. See &#8220;Business&#8212;Prepaid Payment Network Services&#8212; Risk Management
and Internal Control.&#8221; Our limited experience in providing prepaid payment network services may render risk management less effective
in addressing some of the risks, exacerbating our risk exposure. Additionally, our data-driven risk management system and internal control
policies and procedures may not be able to exhaustively mitigate our exposure to these risks. We cannot assure you that our assessment
and monitoring of risks will always be sufficient. Any insufficiency in our risk management system and internal control policies and procedures
may have a material adverse effect on our business, results of operations, and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Fraudulent and fictitious transactions,
and misconduct committed by our employees, customers, and other third parties may pose challenges to our risk management capabilities,
and failure to manage the related risks may adversely affect our business, financial condition, and results of operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As our prepaid payment network business grows
and we diversify our service offerings, we may be subject to liability for fraudulent payment transactions by customers, in particular,
fraudulent chargeback and use of counterfeit cards. Fraud or other misconduct committed by our employees, customers, or other third parties
may be difficult to detect or prevent. Such fraud or misconduct could subject us to financial losses and regulatory sanctions as well
as seriously damage our reputation. We cannot assure you that all of our employees and customers and other third parties will fully comply
with our risk management policies, measures and procedures for preventing fraud and other misconduct. We cannot assure that we will always
be able to identify and prevent all fraud and other misconduct by our employees and customers and other third parties. Future fraud or
other misconduct by our employees and customers and other third parties could damage our reputation and have a material adverse effect
on our business, financial condition, results of operations and prospects. Fraudulent activities have become increasingly sophisticated.
Incidents of frauds could increase in the future. Our measures to detect and reduce the risk of fraud need to be continually improved
to effectively guard against new and evolving forms of fraud, or frauds in connection with our new products and services. Substantial
costs may be incurred in improving such security measures. Failure to effectively identify and address these risks could lead to losses,
regulatory penalties, or even regulatory restrictions to our business operations, which will adversely affect our business, financial
condition, and results of operations. See &#8220;Business&#8212;Prepaid Payment Network Services&#8212;Risk Management and Internal Control&#8212;Fraud.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We face increasing competition, and if we
do not compete effectively, our operating results could be harmed.</i></b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The industries in which we are operating are competitive
and evolving. With respect to loan repayment and collection management and loan recommendation, we compete with market players such as
traditional financial institutions, small loan companies, e-commerce driven installment platforms, and other consumer finance platforms.
For repayment and collection management, our major competitors include China Data Group (Suzhou) Limited, M&amp;Y Global Services, and
Promisechina (Shanghai) Investment Co., Ltd. For loan recommendation, we primarily compete with institutions such as Shanghai Qingpu Real
Estate Investment Property Co., Ltd, Shanghai Hongkou Real Estate Service Co., Ltd. and Shanghai Yangpu Public Housing Asset Management
Co., Ltd. With respect to prepaid payment network services, we primarily compete with other third-party payment service providers in China,
including Shandong Chenglian Card Payment Co., Ltd., Qingdao Baisentong Payment Co., Ltd. and Shandong Feiyin Intelligent Technology Co.,
Ltd.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our competitors may operate with different business
models, have different cost structures or participate selectively in different market segments. They may ultimately prove to be more successful
or more adaptable to new regulatory, technological and other developments. Some of our current and potential competitors have significantly
more financial, technical, marketing and other resources than we do, and may be able to devote greater resources to the development, promotion,
sale and support of their platforms. Our competitors may also have longer operating histories, a more extensive pool of borrowers, larger
amounts of data, greater brand recognition and customer loyalty, and broader partner relationships than we do. For example, traditional
financial institutions may offer loan recommendation services. Experienced enterprises in financial product development and risk management
that are able to devote greater resources to the development, promotion, sale and technical support of their platforms, may gain an edge
in the competition against us. Additionally, a current or potential competitor may acquire one or more of our existing competitors or
form a strategic alliance with one or more of our competitors. Any of the foregoing could adversely affect our business, results of operations,
financial condition and future growth.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 26; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our competitors may be better at developing new
services and products, responding to new technologies, charging lower fees on products and services and undertaking more extensive marketing
campaigns. When new competitors seek to enter our targeted markets, or when existing market participants seek to increase their market
share, they sometimes undercut product and service pricing and/or terms prevalent in the markets, which could adversely affect our market
share or ability to capture new market opportunities. Our pricing and terms could deteriorate if we fail to act to meet these competitive
challenges.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Any harm to our brand or reputation may
materially and adversely affect our business and results of operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Enhancing the recognition and reputation of our
brand is critical to our business and competitiveness. Factors that are vital to this objective include, but are not limited to, our ability
to:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain the quality and reliability of our products and services;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide our customers with a satisfactory and distinguished customer experience;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">enhance and improve our credit assessment model, risk management system, and IT infrastructure;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">effectively manage and resolve customer complaints; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">effectively protect personal information and privacy of customers and business partners.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any malicious or innocent negative allegations
made by the media or other parties about our company, including, but not limited to our management, business, compliance with law, financial
condition or prospects, whether with merit or not, could severely hurt our reputation and harm our business and operating results. As
the industries in which we operate are still evolving, negative publicity may arise from time to time. Negative publicity about China&#8217;s
financial industry in general may also have a negative impact on our reputation, regardless of whether we have engaged in any inappropriate
activities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, certain factors that may adversely
affect our reputation are beyond our control. Negative publicity about the operating entities&#8217; partners, outsourced service providers
or other counterparties, such as negative publicity about their business practices and any failure by them to adequately protect confidential
information, to comply with applicable laws and regulations or to otherwise meet required quality and service standards could harm our
reputation. Furthermore, any negative development in the financial industry in China, such as bankruptcies or failures of finance platforms,
or negative perception of the industry as a whole, even if factually incorrect or based on isolated incidents, could compromise our image,
undermine the trust and credibility we have established and impose a negative impact on our ability to acquire new customers and establish
new strategic partnerships.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Misconduct, errors and failure to function
by the Sentage Operating Companies&#8217; employees and third-party service providers could harm our business and reputation.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The operating entities are exposed to many types
of operational risks, including the risk of misconduct and errors by the Sentage Operating Companies&#8217; employees and third-party
service providers. Our business depends on the Sentage Operating Companies&#8217; employees and third-party service providers for a variety
of business activities, which including, but are not limited to interacting with potential and existing customers, processing large numbers
of transactions, and supporting the loan repayment and collection management process, all of which involve the use and disclosure of personal
information. We could be materially adversely affected if transactions were redirected, misappropriated or otherwise improperly executed,
if personal information was disclosed to unintended recipients or if an operational breakdown or failure in the processing of transactions
occurred, whether as a result of human error, purposeful sabotage or fraudulent manipulation of our operations or systems. In addition,
the manner in which we store and use certain personal information and interact with customers is governed by various PRC laws. It is not
always possible to identify and deter misconduct or errors by employees or third-party service providers, and the precautions we take
to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses. If any of the Sentage Operating
Companies&#8217; employees or third-party service providers take, convert or misuse funds, documents or data or fail to follow protocol
when interacting with the customers, we could be liable for damages and subject to regulatory actions and penalties. We could also be
perceived to have originated or participated in the illegal misappropriation of funds, documents or data, or the failure to follow protocol,
and therefore be subject to civil or criminal liability.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 27; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, we rely on certain third-party service
providers, such as borrower acquisition partners, data providers, and third-party collection agencies, to conduct our business. If these
service providers fail to function properly, we cannot assure you that we would be able to find an alternative in a timely and cost-efficient
manner or at all. Even though the third-party services we engage are usually subject to pay-per-use schedules, we do maintain a few fixed-term
contracts, and we cannot assure you that we can renew them once they expire, or we can renew them with the term we desire. Such service
providers may also be demanded by their customers not to work with us, or form alliances to seek better terms dealing with us. Even though
our business does not substantially depend on any particular third-party service providers, the above-mentioned occurrences may result
in our diminished ability to operate our business, potential liability to borrowers, inability to attract borrowers, reputational damage,
regulatory intervention, and financial harm. Such occurrences could negatively impact our business, financial condition, and results of
operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our ability to protect the confidential
information of various parties, including borrowers, funding partners, and merchants, may be adversely affected by cyberattacks, computer
viruses, physical or electronic break-ins or similar disruptions.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We collect, store, and process certain personal
and other sensitive data from various parties, including, but not limited to borrowers, funding partners, and merchants, which makes us
an attractive target and potentially vulnerable to cyberattacks, computer viruses, physical or electronic break-ins or similar disruptions.
While we have taken steps to protect the confidential information that we have access to, our security measures could be breached. Because
techniques used to sabotage or obtain unauthorized access to systems change frequently and generally are not recognized until they are
launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures. Any accidental
or willful security breaches or other unauthorized access to our systems could cause confidential information to be stolen and used for
criminal purposes. Security breaches or unauthorized access to confidential information could also expose us to liability related to the
loss of the information, time-consuming and expensive litigation and negative publicity. If security measures are breached because of
third-party action, employee error, malfeasance or otherwise, or if design flaws in our technology infrastructure are exposed and exploited,
our relationships with our customers, including borrowers, funding partners, and merchants, could be severely damaged, we could incur
significant liability, and our business and operations could be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Meanwhile, if we fail to protect confidential
information, we may be involved in various claims and litigation for privacy breaches or other damages. Such claims and litigation may
require a lot of time and resources to defend and we cannot assure you that any such claims or litigation will result in a favorable outcome.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may be liable for improper use or appropriation
of personal information provided by the customers and any failure to comply with PRC laws and regulations over data security could result
in materially adverse impact on our business, results of operations, and our continued listing on Nasdaq.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies&#8217; business
involves collecting and retaining certain internal data and customer information. The integrity and protection of student information
and company data is crucial to the operating entities. The customers expect that we will adequately protect their personal information.
The operating entities are required by applicable laws to keep strictly confidential the personal information that they collect, and to
take adequate security measures to safeguard such information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC Criminal Law, as amended by its Amendment
7 (effective on February 28, 2009) and Amendment 9 (effective on November 1, 2015), prohibits institutions, companies and their employees
from selling or otherwise illegally disclosing a citizen&#8217;s personal information obtained in performing duties or providing services
or obtaining such information through theft or other illegal ways.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 7, 2016, the Standing Committee of
the PRC National People&#8217;s Congress issued the Cyber Security Law of the PRC, or Cyber Security Law, which became effective on June
1, 2017. Pursuant to the Cyber Security Law, network operators must not, without users&#8217; consent, collect their personal information,
and may only collect users&#8217; personal information necessary to provide their services. Providers are also obliged to provide security
maintenance for their products and services and shall comply with provisions regarding the protection of personal information as stipulated
under the relevant laws and regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 28; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Civil Code of the PRC (issued by the PRC National
People&#8217;s Congress on May 28, 2020 and effective from January 1, 2021) provides legal basis for privacy and personal information
infringement claims under the Chinese civil laws. PRC regulators, including the Cyberspace Administration of China (the &#8220;CAC&#8221;),
the Ministry of Industry and Information Technology, and the Ministry of Public Security, have been increasingly focused on regulation
in data security and data protection.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 10, 2021, the Standing Committee of the
National People&#8217;s Congress of China, or the SCNPC, promulgated the PRC Data Security Law (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#25968;&#25454;&#23433;&#20840;&#27861;&#12299;),
which became effective in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities and individuals
carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance of data
in economic and social development, and the degree of harm it will cause to national security, public interests, or legitimate rights
and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC
Data Security Law also provides for a national security review procedure for data activities that may affect national security and imposes
export restrictions on certain data and information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Personal Information Protection Law of the
PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#20010;&#20154;&#20449;&#24687;&#20445;&#25252;&#27861;&#12299;),
(issued by Standing Committee of the National People&#8217;s Congress Standing Committee of the National People&#8217;s Congress and became
effective on November 1, 2021) provides that critical information infrastructure operators (&#8220;CIIOs&#8221;) and personal information
processors whose quantity of processing of personal information reaches that as prescribed by the CAC must store personal information
collected and generated within the territory of the People&#8217;s Republic of China. Where it is necessary to provide such information
and data to an overseas party, such provision are required to pass the security evaluation organized by the CAC, unless otherwise waived
by laws or administrative regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December&#160;28, 2021, the CAC, together with
12 other governmental departments of the PRC, jointly promulgated the Cybersecurity Review Measures (&#12298;&#32593;&#32476;&#23433;&#20840;&#23457;&#26597;&#21150;&#27861;&#12299;),
which became effective on February 15, 2022. The Cybersecurity Review Measures provide that, in addition to CIIOs that intend to purchase
Internet products and services, data processing operators engaging in data processing activities that affect or may affect national security
must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity Review Measures,
a cybersecurity review assesses potential national security risks that may be brought about by any procurement, data processing, or overseas
listing. The Cybersecurity Review Measures further require that CIIOs and data processing operators that possess personal data of at least
one million users must apply for a review by the Cybersecurity Review Office of the PRC before conducting listings in foreign countries.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November&#160;14, 2021, the CAC published the
Draft Regulations on the Network Data Security Administration (Draft for Comments) (the &#8220;Security Administration Draft&#8221;) (&#12298;&#32593;&#32476;&#25968;&#25454;&#23433;&#20840;&#31649;&#29702;&#26465;&#20363;&#65288;&#24449;&#27714;&#24847;&#35265;&#31295;&#65289;&#12299;),
which provides that data processing operators engaging in data processing activities that affect or may affect national security must
be subject to cybersecurity review by the relevant Cyberspace Administration of the PRC. According to the Cybersecurity Review Measures,
which provides that data processing operators who possess personal data of at least one million users conducting listings in foreign countries
or process data that affects or may affect national security must be subject to cybersecurity review by the relevant Cyberspace Administration
of the PRC. The deadline for public comments on the Security Administration Draft was December&#160;13, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 7, 2022, the CAC published the Measures
for the Security Assessment of Outbound Data Transfer (&#12298;&#25968;&#25454;&#20986;&#22659;&#23433;&#20840;&#35780;&#20272;&#21150;&#27861;&#12299;),
which were effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People&#8217;s Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file with the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than one
million individuals transfers personal information to abroad&#65307;(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or&#65307;(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 29; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this annual report, our PRC
operating entities have not received any notice from any authorities identifying the operating entities as a CIIO or requiring the operating
entities to go through cybersecurity review or network data security review by the CAC. Nor our PRC operating entities have been involved
in any investigations on cybersecurity review initiated by the CAC or related governmental regulatory authorities. Our operating entities
have not received any inquiry, notice, warning, or sanction in such respect. We believe that our PRC operating entities are in compliance
with the aforementioned regulations and policies that have been issued by the CAC. However, as uncertainties remain regarding the interpretation
and enforcement of relevant PRC cybersecurity laws and regulations, the operating entities could be subject to cybersecurity review, and
if so, the operating entities may not be able to pass such review. In addition, our PRC operating entities could become subject to enhanced
cybersecurity review or investigations launched by PRC regulators in the future. Any failure or delay in the completion of the cybersecurity
review procedures or any other non-compliance with the related laws and regulations may result in fines or other penalties, including
suspension of business, website closure, removal of the operating entities&#8217; app from the relevant app stores, and revocation of
prerequisite licenses, as well as reputational damage or legal proceedings or actions against the operating entities, which may have material
adverse effect on the operating entities&#8217; business, financial condition or results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our operations depend on the performance
of the internet infrastructure and fixed telecommunications networks in China, which we do not control.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Almost all access to the internet in China is
maintained through state-owned telecommunication operators under the administrative control and regulatory supervision of the Ministry
of Industry and Information Technology. We primarily rely on a limited number of telecommunications service providers to provide us with
data communications capacity through local telecommunications lines and internet data centers to host our servers. We have limited access
to alternative networks or services in the event of disruptions, failures or other problems with China&#8217;s internet infrastructure
or the fixed telecommunications networks provided by telecommunications service providers. With the expansion of our business, we may
be required to upgrade our technology and infrastructure by relevant regulatory authorities. We cannot assure you that the internet infrastructure
and the fixed telecommunications networks in China will be able to support the demands associated with the continued growth in internet
usage we anticipate.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, we have no control over the costs
of the services provided by telecommunications service providers. If the prices we pay for telecommunications and internet services rise
significantly, our financial performance may be adversely affected. Furthermore, if internet access fees or other charges to internet
users increase, our business may be harmed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are highly dependent on telecommunications
and IT systems, and an interruption or error in those systems could have an adverse effect on our business and results of operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business is materially dependent on our proprietary
operating portal and IT systems. Development and maintenance of our proprietary operating portal and IT systems are time-consuming, expensive
and complex, and may involve unforeseen difficulties. We may encounter technical obstacles, and it is possible that we may discover additional
problems that prevent our operating portal and IT systems from functioning properly and consequently adversely affect our information
infrastructure and our business. If our IT systems cease to work, become unavailable, or experience significant interruption, we may be
prevented from operating business normally.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business also depends on the efficient and
uninterrupted operation of our computer systems. All our computer hardware and our computing services are currently located in China.
Although we have prepared for contingencies through redundancy measures and disaster recovery plans, such preparation may not be sufficient,
and we currently do not carry business interruption insurance. Despite any precautions we may take, the occurrence of a natural disaster,
such as an earthquake, flood or fire, or other unanticipated problems at our offices in China, including power outages, telecommunications
delays or failures, break-ins to our systems or computer viruses, could result in delays or interruptions to our business and loss of
data for us. Any of these events could damage our reputation, significantly disrupt our operations, and subject us to liability, which
could materially and adversely affect our business, financial condition, and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 30; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our internal systems rely on software that
is highly technical, and if it contains undetected errors, our business could be adversely affected.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our internal systems rely on software that is
highly technical and complex. In addition, our internal systems depend on the ability of such software to store, retrieve, process and
manage immense amounts of data. The software on which we rely has contained, and may now or in the future contain, undetected errors or
bugs. Some errors may only be discovered after the code has been released for external or internal use. Errors or other design defects
within the software on which we rely may result in a negative experience for borrowers and funding partners, delay introductions of new
features or enhancements, result in errors or compromise our ability to protect borrower data or our intellectual property. Any errors,
bugs or defects discovered in the software on which we rely could result in harm to our reputation, loss of customers or business partners,
loss of revenue, or liability for damages, any of which could adversely affect our business and financial results.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If we are not able to respond to technological
advances in a timely manner, we may not remain competitive.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our success depends in a large part on our technology
and IT infrastructure. We use these systems to identify, locate and contact borrowers and record the results of our collection efforts,
manage merchant accounts and behavior and transaction data, and store and analyze borrower information to establish a comprehensive borrower
profile for prospective borrowers who submitted their loan recommendation applications. If we are not able to respond to advances in telecommunications
and computer technologies in a timely manner, we may not be able to remain competitive. We have made significant investments in technology
to remain competitive and we anticipate that it will be necessary to continue to do so in the future. Although we will continue to devote
significant resources to enhance and develop our technologies, we cannot assure you that we will have the capital resources available
to invest in new technologies, and we may not be able to implement technology updates on a timely basis, or at all. In addition, new technologies
may not succeed or integrate well with our existing systems and infrastructure, and even if integrated, may not function as expected.
As telecommunications and computer technologies are changing rapidly and are characterized by short product life cycles, we may not be
successful in anticipating new technology trends or adopt technological changes on a timely basis. If any of the foregoing were to occur
in the future, our business and results of operation could be materially adversely affected.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may not be able to prevent others from
unauthorized use of our intellectual property, which could harm our business and competitive position.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We regard our intellectual property as critical
to our success, and we rely on trademark and trade secret law and confidentiality, invention assignment and non-compete agreements with
our employees and others to protect our proprietary rights. See &#8220;Business&#8212; Intellectual Property.&#8221; However, we cannot
assure you that any of our intellectual property rights would not be challenged, invalidated or circumvented, or such intellectual property
will be sufficient for providing us with competitive advantages. In addition, other parties may misappropriate our intellectual property
rights, which would cause us to suffer economic or reputational damages. Because of the rapid pace of technological change, we cannot
assure you that all of our proprietary technologies and similar intellectual property will be patented in a timely or cost-effective manner,
or at all. Furthermore, parts of our business rely on technologies developed or licensed by other parties, or co-developed with other
parties, and we may not be able to obtain or continue to obtain licenses and technologies from these other parties on reasonable terms,
or at all.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">It is often difficult to register, maintain and
enforce intellectual property rights in China. Statutory laws and regulations are subject to judicial interpretation and enforcement and
may not be applied consistently due to the lack of clear guidance on statutory interpretation. Confidentiality, invention assignment,
and non-compete agreements may be breached by counterparties, and there may not be adequate remedies available to us for any such breach.
Accordingly, we may not be able to effectively protect our intellectual property rights or to enforce our contractual rights in China.
Preventing any unauthorized use of our intellectual property is difficult and costly, and the steps we take may be inadequate to prevent
the misappropriation of our intellectual property. In the event that we resort to litigation to enforce our intellectual property rights,
such litigation could result in substantial costs and in a diversion of our managerial and financial resources. We can provide no assurance
that we will prevail in such litigation. In addition, our trade secrets may be leaked or otherwise become available to, or be independently
discovered by, our competitors. To the extent that our employees or authorized third-party service providers use intellectual property
owned by others in their work for us, disputes may arise as to the rights in related know-how and inventions. Any failure in protecting
or enforcing our intellectual property rights could have a material adverse effect on our business, financial condition, and results of
operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 31; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may be subject to intellectual property
infringement claims, which may be expensive to defend and may disrupt our business and operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We cannot be certain that our operations or any
aspects of our business do not or will not infringe upon or otherwise violate trademarks, copyrights, know-how, proprietary technologies
or other intellectual property rights held by other parties. We may be from time to time in the future subject to legal proceedings and
claims relating to the intellectual property rights of others. In addition, there may be other parties&#8217; trademarks, copyrights,
know-how, proprietary technologies or other intellectual property rights that are infringed by our products and services or other aspects
of our business without our awareness. Holders of such intellectual property rights may seek to enforce such intellectual property rights
against us in China, the United States or other jurisdictions. If any infringement claims are brought against us, we may be forced to
divert management&#8217;s time and other resources from our business and operations to defend against these claims, regardless of their
merits.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, the application and interpretation
of China&#8217;s intellectual property right laws and the procedures and standards for granting trademarks, copyrights, know-how, proprietary
technologies or other intellectual property rights in China are still evolving and are uncertain, and we cannot assure you that PRC courts
or regulatory authorities would agree with our analysis. If we were found to have violated the intellectual property rights of others,
we may be subject to liability for our infringement activities or may be prohibited from using such intellectual property, and we may
incur licensing fees or be forced to develop alternatives of our own. As a result, our business and results of operations may be materially
and adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The operating entities&#8217; business depends
on the continued efforts of their management. If one or more of their key executives were unable or unwilling to continue in their present
positions, our business may be severely disrupted.&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business operations depend on the continued
services of our management, particularly the executive officers named in this annual report, and teams in charge of our risk management,
research and development, customer relationship management, and collaboration with business partners, such as NetsUnion, and funding partners.
While we have provided different incentives to our management, we cannot assure you that we can continue to retain their services. If
one or more members of our management team were unable or unwilling to continue in their present positions, we may not be able to replace
them easily or at all, our future growth may be constrained, our business may be severely disrupted, our financial condition and results
of operations may be materially and adversely affected, and we may incur additional expenses to recruit, train and retain qualified personnel.
In addition, although we have entered into confidentiality and non-competition agreements with members of our management team, there is
no assurance that any member of our management team will not join our competitors, form a competing business, or disclose confidential
information to the public. If any dispute arises between our current or former officers and us, we may have to incur substantial costs
and expenses in order to enforce such agreements in China or we may be unable to enforce them at all.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>From time to time we may evaluate and potentially consummate
strategic investments or acquisitions, which could require significant management attention, disrupt our business and adversely affect
our financial results.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may evaluate and consider strategic investments,
combinations, acquisitions or alliances to further increase the value of our business. These transactions could be material to our financial
condition and results of operations if consummated. If we are able to identify an appropriate business opportunity, we may not be able
to successfully consummate the transaction, and even if we do consummate such a transaction, we may be unable to obtain the benefits or
avoid the difficulties and risks of such transaction.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 32; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Strategic investments or acquisitions will involve
risks commonly encountered in business relationships, including:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties in assimilating and integrating the operations, personnel, systems, data, technologies, rights, platforms, products and services of the acquired business;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the inability of the acquired technologies, products or businesses to achieve expected levels of revenue, profitability, productivity or other benefits;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties in retaining, training, motivating and integrating key personnel;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the diversion of managements&#8217; time and resources from our daily operations;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties in maintaining uniform standards, controls, procedures and policies within the combined organizations;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties in retaining relationships with borrowers, employees and suppliers of the acquired business;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">risks of entering markets in which we have limited or no prior experience;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulatory risks, including remaining in good standing with existing regulatory bodies or receiving any necessary pre-closing or post-closing approvals, as well as being subject to new regulators with oversight over an acquired business;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the assumption of contractual obligations that contain terms that are not beneficial to us, require us to license or waive intellectual property rights or increase our risk of liability;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the failure to successfully further develop the acquired technology;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">liability for activities of the acquired business before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential disruptions to our ongoing businesses; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">unexpected costs and unknown risks and liabilities associated with strategic investments or acquisitions.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may not make any investments or acquisitions,
or any future investments or acquisitions may not be successful, may not benefit our business strategy, may not generate sufficient revenue
to offset the associated acquisition costs or may not otherwise result in the intended benefits. In addition, we cannot assure you that
any future investment in or acquisition of new businesses or technology will lead to the successful development of new or enhanced products
and services or that any new or enhanced loan products and services, if developed, will achieve market acceptance or prove to be profitable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Competition for employees is intense, and we may not be able
to attract and retain the qualified and skilled employees needed to support our business.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe our success depends on the efforts
and talent of our employees, including risk management, technology infrastructure and IT system maintenance and upgrade, financial and
marketing personnel. Our future success depends on our continued ability to attract, develop, motivate and retain qualified and skilled
employees. Competition for highly skilled technical, risk management and financial personnel is extremely intense. We may not be able
to hire and retain these personnel at compensation levels consistent with our existing compensation and salary structure. Some of the
companies with which we compete for experienced employees have greater resources than we have and may be able to offer more attractive
terms of employment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, we invest significant time and expenses
in training our employees, which increases their value to competitors who may seek to recruit them. If we fail to retain our employees,
we could incur significant expenses in hiring and training their replacements, and our operational efficiency could diminish, resulting
in a material adverse effect to our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 33; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Failure to maintain the quality of customer
services could harm our reputation and our ability to retain existing customers and attract new customers, which may materially and adversely
affect our business, financial condition, and results of operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We depend on our customer service representatives
to provide assistance to clients using our services. As such, the quality of customer services is critical to retaining our existing customers
and attracting new customers. If our customer service representatives fail to satisfy our customers&#8217; individual needs, we may incur
reputational harm and lose potential or existing business opportunities with our existing clients, which could have a material adverse
effect on our business, financial condition, and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We face risks related to natural disasters,
health epidemics, and other circumstances beyond our control, which could significantly disrupt our operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business may be adversely affected by instability,
disruption or destruction in a geographic region of China in which it operates, regardless of cause, including war, terrorism, riot, economic
boycott, civil insurrection or social unrest, and natural or manmade disasters, including famine, flood, fire, earthquake, storm or pandemic
events and spread of disease, including the new coronavirus commonly referred to as &#8220;COVID-19&#8221;. The COVID-19 pandemic, first
found in mainland China, then in Asia, and eventually throughout the world, significantly affected our overall business, results of operation,
and financial conditions. Specifically, the COVID-19 pandemic gave rise to economic downturns and other significant changes in regional
and global economic conditions. As a result, borrowers&#8217; default and delinquency risks increased as they experienced unemployment
or generated less income. Subsequently, higher default and delinquency risks required us to dedicate more resources to maintain our current
collection rate for the loan repayment and collection management business and posed risk-management challenges for our loan recommendation
business, increasing our operating costs. As the majority of our merchant customers are retailers whose businesses were adversely affected
by the COVID-19 pandemic, the pandemic caused our merchant customers to stop or delay using our prepaid payment network services, adversely
impacting our revenue from the prepaid payment network business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any significant disruption to communications and
travel, including travel restrictions and other potential protective quarantine measures by governmental agencies, also increase the difficulty
and could make it impossible for us to conduct on-site inspection of collateralized properties, which is a necessary step of our credit
assessment and risk management process. Accordingly, travel restrictions and protective measures caused the Company to incur additional
unexpected labor costs and expenses and restrained our ability to retain the highly skilled personnel we needed for our operations, adversely
affecting our business and results of operation. In addition, any health epidemic such as the COVID-19 pandemic could have an adverse
impact on the real estate market in the Shanghai area and other first-tier cities we target, subsequently decreasing the total loan amount
borrowers are able to obtain through our services, reducing our service fee, which is based on specific loan amount, and adversely impacting
our revenue from the loan recommendation business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the beginning of February 2020, we had to temporarily
suspend our prepaid payment network services due to government restrictions. We managed to promptly implement a series of response measures
to the COVID-19 pandemic, including having our full work force resume work remotely by the end of February 2020. We fully resumed our
operation on March 10, 2020 and our business was fully operational in 2021. However, our business facilities in Shanghai, China were temporarily
closed again, starting from April 2022 to June 2022, as a result of local government&#8217;s efforts to contain the resurgence of the
COVID-19 pandemic. The COVID-19 negatively affected our operations in fiscal year 2022 and could cause the Company&#8217;s revenue and
cash flows to underperform in the next 12 months.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the consumer loan repayment and collection
management business, due to the uncertainties caused by the COVID-19, our prospective business partners were not able to start new cooperation
with us and we were not able to generate any revenue for fiscal year 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the loan recommendation services, which requires
face-to-face interaction with potential customers, the temporary lock down from April 2022 to June 2022 severely impacted our ability
to generate new business. Even after June 2022, due to the uncertainties caused by COVID-19, the demand from customers decreased sharply
and the we were not able to generate any revenue for fiscal year 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the prepaid payment network services, the
revenue in 2022 declined sharply because decreased demand from customers due to the uncertainties caused by COVID-19.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Although China relaxed the COVID-19 restrictions
at the end of 2022, because the COVID-19 has deeply affected businesses and economy in China from 2020 to 2022, the extent of any future
impact of COVID-19 on our operations remains highly uncertain and unpredictable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may from time to time be subject to claims,
controversies, lawsuits and legal proceedings, which could have a material adverse effect on our financial condition, results of operations,
cash flows and reputation.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may from time to time become subject to or
involved in various claims, controversies, lawsuits, and legal proceedings. However, claims, lawsuits, and litigation are subject to inherent
uncertainties, and we are uncertain whether any of these claims would develop into a lawsuit. Lawsuits and litigation may cause us to
incur defense costs, utilize a significant portion of our resources and divert management&#8217;s attention from our day-to-day operations,
any of which could harm our business. Any settlements or judgments against us could have a material adverse impact on our financial condition,
results of operations and cash flows. In addition, negative publicity regarding claims or judgments made against us may damage our reputation
and may result in material adverse impact on us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 34; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our current insurance policies may not provide
adequate levels of coverage against all claims and we may incur losses that are not covered by our insurance.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe we maintain insurance coverage that
is customary for businesses of our size and type. However, we may be unable to insure against certain types of losses or claims, or the
cost of such insurance may be prohibitive. Uninsured losses or claims, if they occur, could have a material adverse effect on our reputation,
business, results of operations, financial condition, or prospects.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If we fail to implement and maintain an
effective system of internal controls, we may be unable to accurately or timely report the results of operations or prevent fraud, and
investor confidence and the market price of our securities may be materially and adversely affected.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our independent registered public accounting firm
has not conducted an audit of our internal control over financial reporting. In the course of auditing our consolidated financial statements
for the fiscal year ended December 31, 2022, our independent registered public accounting firm identified two material weaknesses and
other control deficiencies in our internal control over financial reporting.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The material weaknesses identified relate to (i)&#160;our
lack of a sufficient number of finance and accounting personnel or sufficiently trained finance and accounting personnel, as well as comprehensive
accounting policies in accordance with U.S.&#160;GAAP financial reporting; and (ii)&#160;our internal control policy does not have a proper
approval mechanism, and our lack of internal controls on performing periodic reviews of user accounts and their level of authorization
in the financial systems. We plan to implement a number of measures to remedy these material weaknesses. To remedy the identified material
weakness and the other control deficiencies, we have implemented and will continue to implement initiatives to improve our internal control
over financial reporting to address the material weaknesses that have been identified, including: (i)&#160;obtain additional resources,
including experienced staff with U.S.&#160;GAAP and U.S. Securities and Exchange Commission (the &#8220;SEC&#8221;) reporting knowledge,
to strengthen the financial reporting function and to set up financial and system control framework; (ii)&#160;conducting regular and
continuous U.S.&#160;GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel, including
sending our financial staff to attend external U.S.&#160;GAAP training courses; and (iii)&#160;optimizing our financial systems by establishing
a proper approval mechanism and performing periodic reviews of users accounts and their level of authorization. We cannot assure you,
however, that these measures will fully address these material weaknesses and other deficiencies in our internal control over financial
reporting or that we will be able to conclude that they have been fully remedied.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we fail to establish and maintain adequate
internal controls, we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which
would likely cause investors to lose confidence in our reported financial information. This could limit our access to capital markets,
adversely affect our results of operations and lead to a decline in the trading price of our securities. Additionally, ineffective internal
controls could expose us to an increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock
exchange on which we list our Ordinary Shares or to other regulatory investigations and civil or criminal sanctions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a public company, we are subject to Sarbanes-Oxley
Act of 2002, or Sarbanes-Oxley Act. Since we qualify as an &#8220;emerging growth company&#8221; pursuant to the JOBS Act with less than
US$1.235&#160;billion in revenue for our last fiscal year. An emerging growth company may take advantage of specified reduced reporting
and other requirements that are otherwise applicable generally to public companies. These provisions include exemption from the auditor
attestation requirement under Section&#160;404 of the Sarbanes-Oxley&#160;Act of 2002, or Section 404, in the assessment of the emerging
growth company&#8217;s internal control over financial reporting. Moreover, even if management concludes that our internal control over
financial reporting is effective, our independent registered public accounting firm, after conducting its own independent testing, may
issue a report that is qualified, if it is not satisfied with our internal controls or the level at which our controls are documented,
designed, operated or reviewed, or if it interprets the relevant requirements differently from us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 35; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the course of documenting and testing our
internal control procedures, we may identify other weaknesses and deficiencies in our internal control over financial reporting. In addition,
if we fail to maintain the adequacy of our internal control over financial reporting, as these standards are modified, supplemented or
amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting
in accordance with Section&#160;404. Generally speaking, if we fail to achieve and maintain an effective internal control environment,
we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which would likely cause
investors to lose confidence in our reported financial information. This could in turn limit our access to capital markets, harm our results
of operations, and lead to a decline in the trading price of our securities. Additionally, ineffective internal control over financial
reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock
exchange on which we list, regulatory investigations and civil or criminal sanctions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Related to Doing Business in China</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>There are uncertainties under the Foreign
Investment Law relating to the status of businesses in China controlled by foreign invested projects primarily through contractual arrangements,
such as our business.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Administrative Measures of People&#8217;s
Bank of China on Payment Services Provided by Non-financial Institutions (Order of the People&#8217;s Bank of China (2010) No. 2, &#8220;Order
No. 2&#8221;) (&#20013;&#22269;&#20154;&#27665;&#38134;&#34892;&#20196;[2010]&#31532;2&#21495;&#12298;&#38750;&#37329;&#34701;&#26426;&#26500;&#25903;&#20184;&#26381;&#21153;&#31649;&#29702;&#21150;&#27861;&#12299;)
was promulgated by the PBOC on June 14, 2010. According to Order No. 2, the business scope of a foreign-invested payment institutions,
the qualification conditions, and the allowed ratio of contribution of the payment institution&#8217;s foreign investors shall be stipulated
by the PBOC and submitted to the State Council for approval. According to &#8220;Announcement No. 7 of the People&#8217;s Bank of China
(2018) (&#12298;&#20013;&#22269;&#20154;&#27665;&#38134;&#34892;&#20844;&#21578;&#65288;2018&#65289;&#31532;7&#21495;&#12299;&#8221;)
(&#8220;No. 7 Announcement&#8221;), which was issued by the PBOC and became effective on March 19, 2018, upon approval by the State Council,
pursuant to the Law of the People&#8217;s Republic of China on the People&#8217;s Bank of China and Order No. 2, foreign-invested payment
institutions should satisfy regulatory requirements relevant to foreign-invested payment institutions. According to Order No. 2 and the
No. 7 Announcement, the VIE entity, Qingdao Buytop, is considered a payment institution, as it provides prepaid payment network services.
To comply with PRC laws and regulations on foreign ownership and investment in companies that engage in certain businesses including third-party
payment services, we rely on the VIE Agreements with the Qingdao Buytop to operate such business in China and Qingdao Buytop has obtained
all requisite licenses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Ministry of Commerce of the People&#8217;s Republic
of China, or MOFCOM, published a discussion draft of the proposed Foreign Investment Law in January 2015, or the &#8220;2015 FIL Draft,&#8221;
which expanded the definition of foreign investment and introduced the principle of &#8220;actual control&#8221; in determining whether
a company is considered a foreign-invested enterprise. Under the 2015 FIL Draft, VIEs that are controlled via contractual arrangement
would also be deemed as foreign-invested enterprises if they are ultimately &#8220;controlled&#8221; by foreign investors. On March 15,
2019, the National People&#8217;s Congress approved the Foreign Investment Law of the PRC, which came into effect on January 1, 2020,
repealing simultaneously the Law of the PRC on Sino-foreign Equity Joint Ventures, the Law of the PRC on Wholly Foreign-owned Enterprises,
and the Law of the PRC on Sino-foreign Cooperative Joint Ventures, together with their implementation rules and ancillary regulations.
Pursuant to the Foreign Investment Law, foreign investment refers to any investment activity directly or indirectly carried out by foreign
natural persons, enterprises, or other organizations, including investment in new construction project, establishment of foreign funded
enterprise or increase of investment, merger and acquisition, and investment in any other way stipulated under laws, administrative regulations,
or provisions of the State Council. Although the Foreign Investment Law has deleted the particular reference to the concept of &#8220;actual
control&#8221; and contractual arrangements from the 2015 FIL Draft, there is still uncertainty regarding whether the VIEs would be identified
as a foreign-invested enterprise in the future. As a result, we cannot assure you that the Foreign Investment Law will not have a material
and adverse effect on our ability to conduct our business through the VIE Agreements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 36; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Changes in China&#8217;s economic, political,
or social conditions or government policies could have a material adverse effect on our business and operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Substantially all of our assets and operations
are currently located in China. Accordingly, our business, financial condition, results of operations, and prospects may be influenced
to a significant degree by political, economic, and social conditions in China generally. The Chinese economy differs from the economies
of most developed countries in many respects, including the level of government involvement, level of development, growth rate, control
of foreign exchange, and allocation of resources. Although the Chinese government has implemented measures emphasizing the utilization
of market forces for economic reform, including the reduction of state ownership of productive assets and the establishment of improved
corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the government. In
addition, the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies.
The Chinese government also exercises significant control over China&#8217;s economic growth by allocating resources, controlling payment
of foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment to particular industries or
companies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While the Chinese economy has experienced significant
growth over the past decades, growth has been uneven, both geographically and among various sectors of the economy. Any adverse changes
in economic conditions in China, in the policies of the Chinese government, or in the laws and regulations in China could have a material
adverse effect on the overall economic growth of China. Such developments could adversely affect our business and operating results, reduce
demand for our products, and weaken our competitive position. The Chinese government has implemented various measures to encourage economic
growth and guide the allocation of resources. Some of these measures may benefit the overall Chinese economy but may have a negative effect
on us. For example, our financial condition and results of operations may be adversely affected by government control over capital investments
or changes in tax regulations. In addition, in the past the Chinese government has implemented certain measures, including interest rate
adjustments, to control the pace of economic growth. These measures may cause decreased economic activities in China, which may adversely
affect our business and operating results.</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Uncertainties in the interpretation and
enforcement of PRC laws and regulations could limit the legal protection available to you and us.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC legal system is based on written statutes.
Unlike common law systems, it is a system in which legal cases have limited value as precedents. In the late 1970s, the PRC government
began to promulgate a comprehensive system of laws and regulations governing economic matters in general. The legislation over the past
three decades has significantly increased the protection afforded to various forms of foreign or private-sector investment in China. Our
PRC operating entities are subject to various PRC laws and regulations generally applicable to companies in China. Since these laws and
regulations are relatively new and the PRC legal system continues to rapidly evolve, however, the interpretations of many laws, regulations,
and rules are not always uniform and enforcement of these laws, regulations, and rules involve uncertainties.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 6, 2021, the General Office of the Communist
Party of China Central Committee and the General Office of the State Council jointly issued a document to crack down on illegal activities
in the securities market and promote the high-quality development of the capital market, which, among other things, requires the relevant
governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision over
China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the PRC securities laws.
Since this document is relatively new, uncertainties still exist in relation to how soon legislative or administrative regulation making
bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated,
if any, and the potential impact such modified or new laws and regulations will have on companies like us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, we may have to resort to administrative
and court proceedings to enforce our legal rights. Since PRC administrative and court authorities have significant discretion in interpreting
and implementing statutory and contractual terms, however, it may be more difficult to evaluate the outcome of administrative and court
proceedings and the level of legal protection we enjoy in the PRC legal system than in more developed legal systems. Furthermore, the
PRC legal system is based in part on government policies and internal rules (some of which are not published in a timely manner or at
all) that may have retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime after
the violation. Such uncertainties, including uncertainties over the scope and effect of our contractual, property (including intellectual
property) and procedural rights, and any failure to respond to changes in the regulatory environment in China could materially and adversely
affect our business and impede our ability to continue our operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 37; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>PRC laws and regulations governing our current
business operations are sometimes vague and uncertain and any changes in such laws and regulations may impair our ability to operate profitably.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are substantial uncertainties regarding
the interpretation and application of PRC laws and regulations including, but not limited to, the laws and regulations governing our business
and the enforcement and performance of our arrangements with customers in certain circumstances. The laws and regulations are sometimes
vague and may be subject to future changes, and their official interpretation and enforcement may involve substantial uncertainty. The
PRC legal system is evolving rapidly and the interpretations of many laws, regulations and rules may contain inconsistencies and enforcement
of these laws, regulations and rules involves uncertainties. The effectiveness and interpretation of newly enacted laws or regulations,
including amendments to existing laws and regulations, may be delayed, and our business may be affected if we rely on laws and regulations
which are subsequently adopted or interpreted in a manner different from our understanding of these laws and regulations. New laws and
regulations that affect existing and proposed future businesses may also be applied retroactively. We cannot predict what effect the interpretation
of existing or new PRC laws or regulations may have on our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>You may experience difficulties in effecting
service of legal process, enforcing foreign judgments, or bringing actions in China against us or our management named in the reporting
based on foreign laws.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a company incorporated under the laws of the
Cayman Islands, we conduct a majority of our operations in China and a majority of our assets are located in China. In addition, almost
all our senior executive officers reside within China for a significant portion of the time and are PRC nationals. As a result, it may
be difficult for you to effect service of process upon those persons inside mainland China. It may be difficult for you to enforce judgements
obtained in U.S. courts based on civil liability provisions of the U.S. federal securities laws against us and our officers and directors,
as none of them currently resides in the U.S. or has substantial assets in the U.S. In addition, there is uncertainty as to whether the
courts of the Cayman Islands or the PRC would recognize or enforce judgments of U.S. courts against us or such persons predicated upon
the civil liability provisions of the securities laws of the U.S. or any state.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The recognition and enforcement of foreign judgments
are provided for under the PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements
of the PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on principles of
reciprocity between jurisdictions. China does not have any treaties or other forms of written arrangement with the United States that
provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, the
PRC courts will not enforce a foreign judgment against us or our directors and officers if they decide that the judgment violates the
basic principles of PRC laws or national sovereignty, security, or public interest. As a result, it is uncertain whether and on what basis
a PRC court would enforce a judgment rendered by a court in the United States. See&#160;&#8220;Enforceability of Civil Liabilities.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>U.S. regulatory bodies may be limited in
their ability to conduct investigations or inspections of our operations in China.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SEC, the U.S. Department of Justice and other
U.S. authorities may also have difficulties in bringing and enforcing actions against us or our directors or executive officers in the
PRC. The SEC has stated that there are significant legal and other obstacles to obtaining information needed for investigations or litigation
in China. China has recently adopted a revised securities law that became effective on March 1, 2020, Article 177 of which provides, among
other things, that no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within
the territory of the PRC. Accordingly, without governmental approval in China, no entity or individual in China may provide documents
and information relating to securities business activities to overseas regulators when it is under direct investigation or evidence discovery
conducted by overseas regulators, which could present significant legal and other obstacles to obtaining information needed for investigations
and litigation conducted outside of China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 38; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Increases in labor costs in the PRC may
adversely affect our business and our profitability.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">China&#8217;s economy has experienced increases
in labor costs in recent years. China&#8217;s overall economy and the average wage in China are expected to continue to grow. The average
wage level for our employees has also increased in recent years. We expect that our labor costs, including wages and employee benefits,
will continue to increase. Unless we are able to pass on these increased labor costs to our customers by increasing prices for our services,
our profitability and results of operations may be materially and adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, we have been subject to stricter
regulatory requirements in terms of entering into labor contracts with our employees and paying various statutory employee benefits, including
pensions, housing fund, medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance to designated
government agencies for the benefit of our employees. Pursuant to the PRC Labor Contract Law that became effective in January 2008 and
its amendments that became effective in July 2013 and its implementing rules that became effective in September 2008, employers are subject
to stricter requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining the term of employees&#8217;
probation, and unilaterally terminating labor contracts. In the event that we decide to terminate some of our employees or otherwise change
our employment or labor practices, the Labor Contract Law and its implementation rules may limit our ability to effect those changes in
a desirable or cost-effective manner, which could adversely affect our business and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As the interpretation and implementation of labor-related
laws and regulations are still evolving, we cannot assure you that our employment practice does not and will not violate labor-related
laws and regulations in China, which may subject us to labor disputes or government investigations. If we are deemed to have violated
relevant labor laws and regulations, we could be required to provide additional compensation to our employees and our business, financial
condition and results of operations could be materially and adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>PRC regulations relating to offshore investment
activities by PRC residents may subject our PRC resident beneficial owners or the PRC operating entities to liability or penalties, limit
our ability to inject capital into the PRC Operating Entities, limit the PRC Operating Entities&#8217; ability to increase their registered
capital or distribute profits to us, or may otherwise adversely affect us.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 4, 2014, State Administration of Foreign
Exchange (&#8220;SAFE&#8221;) issued the Circular on Issues Concerning Foreign Exchange Control over the Overseas Investment and Financing
and Round-trip Investment by Domestic Residents via Special Purpose Vehicles, or &#8220;SAFE Circular 37.&#8221; According to SAFE Circular
37, prior registration with the local SAFE branch is required for PRC residents, (including PRC individuals and PRC corporate entities
as well as foreign individuals that are deemed PRC residents for foreign exchange administration purpose), in connection with their direct
or indirect contribution of domestic assets or interests to offshore special purpose vehicles, or &#8220;SPVs.&#8221; SAFE Circular 37
further requires amendments to the SAFE registrations in the event of any changes with respect to the basic information of the offshore
SPV, such as change of a PRC individual shareholder, name and operation term, or any significant changes with respect to the offshore
SPV, such as an increase or decrease of capital contribution, share transfer or exchange, or mergers or divisions. SAFE Circular 37 is
applicable to our shareholders who are PRC residents and may be applicable to any offshore acquisitions that we make in the future. In
February 2015, SAFE promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment,
or &#8220;SAFE Notice 13,&#8221; effective in June 2015. Under SAFE Notice 13, applications for foreign exchange registration of inbound
foreign direct investments and outbound overseas direct investments, including those required under SAFE Circular 37, will be filed with
qualified banks instead of SAFE. The qualified banks will directly examine the applications and accept registrations under the supervision
of SAFE.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 39; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to SAFE Circular 37 and SAFE Notice
13, our ability to conduct foreign exchange activities in China may be subject to the interpretation and enforcement of the Implementation
Rules of the Administrative Measures for Individual Foreign Exchange promulgated by SAFE in January 2007 (as amended and supplemented,
the &#8220;Individual Foreign Exchange Rules&#8221;). Under the Individual Foreign Exchange Rules, any PRC individual seeking to make
a direct investment overseas or engage in the issuance or trading of negotiable securities or derivatives overseas must make the appropriate
registrations in accordance with SAFE provisions, the failure of which may subject such PRC individual to warnings, fines, or other liabilities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our current shareholders, Qiaoling Lu, Yiheng
Guo, Hua Wang and Jianxiu Li, who are subject to SAFE Circular 37 and the Individual Foreign Exchange Rules, have completed the initial
registrations with the qualified banks as required by the regulations. We may not be informed of the identities of all the PRC residents
holding direct or indirect interest in our company, however, and we have no control over any of our future beneficial owners. Thus, we
cannot provide any assurance that our current or future PRC resident beneficial owners will comply with our request to make or obtain
any applicable registrations or continuously comply with all registration procedures set forth in these SAFE regulations. Such failure
or inability of our PRC residents beneficial owners to comply with these SAFE regulations may subject us or our PRC resident beneficial
owners to fines and legal sanctions, restrict our cross-border investment activities, or limit the PRC Operating Entities&#8217; ability
to distribute dividends to or obtain foreign-exchange-dominated loans from us, or prevent us from being able to make distributions or
pay dividends, as a result of which our business operations and our ability to distribute profits to you could be materially and adversely
affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Fluctuations in exchange rates could have
a material and adverse effect on our results of operations and the value of your investment.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The value of the RMB against the U.S. dollar and
other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions in China and by China&#8217;s
foreign exchange policies. On July 21, 2005, the PRC government changed its decade-old policy of pegging the value of the RMB to the U.S.
dollar, and the RMB appreciated more than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010,
this appreciation halted and the exchange rate between the RMB and the U.S. dollar remained within a narrow band. Since June 2010, the
RMB has fluctuated against the U.S. dollar, at times significantly and unpredictably. It is difficult to predict how market forces or
PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. Since we sell a majority
of the products of our brand partners in the U.S., the fluctuations in exchange rates would have a negative effect on our business and
results of operations and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business is conducted in the PRC, and our
books and records are maintained in RMB, which is the currency of the PRC. The financial statements that we file with the SEC and provide
to our shareholders are presented in U.S. dollars. Changes in the exchange rates between the RMB and U.S. dollar affect the value of our
assets and the results of our operations, when presented in U.S. dollars. The value of the RMB against the U.S. dollar and other currencies
may fluctuate and is affected by, among other things, changes in the PRC&#8217;s political and economic conditions and perceived changes
in the economy of the PRC and the United States. Any significant revaluation of the RMB may materially and adversely affect our cash flows,
revenue, and financial condition. Further, our Ordinary Shares offered by our initial public offering were offered in U.S. dollars, we
will need to convert the net proceeds we receive into RMB in order to use the funds for our business. Changes in the conversion rate among
the U.S. dollar and the RMB will affect the amount of proceeds we will have available for our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Very limited hedging options are available in
China to reduce our exposure to exchange rate fluctuations. To date, we have not entered into any hedging transactions in an effort to
reduce our exposure to foreign currency exchange risk. While we may decide to enter into more hedging transactions in the future, the
availability and effectiveness of these hedges may be limited and we may not be able to adequately hedge our exposure or at all. In addition,
our currency exchange losses may be magnified by PRC exchange control regulations that restrict our ability to convert RMB into foreign
currency. As a result, fluctuations in exchange rates may have a material adverse effect on your investment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 40; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Under the PRC Enterprise Income Tax Law,
we may be classified as a PRC &#8220;resident enterprise&#8221; for PRC enterprise income tax purposes. Such classification would likely
result in unfavorable tax consequences to us and our non-PRC shareholders and have a material adverse effect on our results of operations
and the value of your investment.</i></b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the PRC Enterprise Income Tax Law,
or the &#8220;EIT Law,&#8221; that became effective in January 2008, an enterprise established outside the PRC with &#8220;de facto management
bodies&#8221; within the PRC is considered a &#8220;resident enterprise&#8221; for PRC enterprise income tax purposes and is generally
subject to a uniform 25% enterprise income tax rate on its worldwide income. Under the implementation rules to the EIT Law, a &#8220;de
facto management body&#8221; is defined as a body that has material and overall management and control over the manufacturing and business
operations, personnel and human resources, finances, and properties of an enterprise. In addition, a circular, known as SAT Circular 82,
issued in April 2009 by the State Administration of Taxation, or the &#8220;SAT,&#8221; specifies that certain offshore incorporated enterprises
controlled by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or
resident in the PRC: senior management personnel and departments that are responsible for daily production, operation and management;
financial and personnel decision making bodies; key properties, accounting books, company seal, and minutes of board meetings and shareholders&#8217;
meetings; and half or more of the senior management or directors having voting rights. Further to SAT Circular 82, the SAT issued a bulletin,
known as SAT Bulletin 45, which took effect in September 2011, to provide more guidance on the implementation of SAT Circular 82 and clarify
the reporting and filing obligations of such &#8220;Chinese-controlled offshore incorporated resident enterprises.&#8221; SAT Bulletin
45 provides procedures and administrative details for the determination of resident status and administration on post-determination matters.
Although both SAT Circular 82 and SAT Bulletin 45 only apply to offshore enterprises controlled by PRC enterprises or PRC enterprise groups,
not those controlled by PRC individuals or foreign individuals, the determining criteria set forth in SAT Circular 82 and SAT Bulletin
45 may reflect the SAT&#8217;s general position on how the &#8220;de facto management body&#8221; test should be applied in determining
the tax resident status of offshore enterprises, regardless of whether they are controlled by PRC enterprises, PRC enterprise groups,
or by PRC or foreign individuals.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the PRC tax authorities determine that the
actual management organ of Sentage Holdings is within the territory of China, Sentage Holdings may be deemed to be a PRC resident enterprise
for PRC enterprise income tax purposes and a number of unfavorable PRC tax consequences could follow. First, we will be subject to the
uniform 25% enterprise income tax on our worldwide income, which could materially reduce our net income. In addition, we will also be
subject to PRC enterprise income tax reporting obligations. Finally, dividends payable by us to our investors and gains on the sale of
our shares may become subject to PRC withholding tax, at a rate of 10% in the case of non-PRC enterprises or 20% in the case of non-PRC
individuals (in each case, subject to the provisions of any applicable tax treaty), if such gains are deemed to be from PRC sources. It
is unclear whether non-PRC shareholders of our company would be able to claim the benefits of any tax treaties between their country of
tax residence and the PRC in the event that we are treated as a PRC resident enterprise. Any such tax may reduce the returns on your investment
in our shares. As of the date of this annual report, Sentage Holdings has not been notified or informed by the PRC tax authorities that
it has been deemed to be a resident enterprise for the purpose of the EIT Law, however we cannot assure you that it will not be deemed
to be a resident enterprise in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our PRC operating entities are subject to
restrictions on paying dividends or making other payments to us, which may have a material adverse effect on our ability to conduct our
business.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company incorporated in the Cayman
Islands. We may need dividends and other distributions on equity from our PRC operating entities to satisfy our liquidity requirements.
Current PRC regulations permit our PRC operating entities to pay dividends to us only out of its accumulated profits, if any, determined
in accordance with PRC accounting standards and regulations. In addition, our PRC operating entities are required to set aside at least
10% of its respective accumulated profits each year, if any, to fund certain statutory reserves until the total amount set aside reaches
50% of their respective registered capital. Our PRC operating entities may also allocate a portion of its respective after-tax profits
based on PRC accounting standards to employee welfare and bonus funds at its discretion. These reserves are not distributable as cash
dividends. These limitation on the ability of our PRC operating entities to pay dividends or make other distributions to us could materially
and adversely limit our ability to grow, make investments, or acquisitions that could be beneficial to our business, pay dividends, or
otherwise fund and conduct our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 41; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We face uncertainty with respect to indirect
transfers of equity interests in PRC resident enterprises by their non-PRC holding companies.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2015, SAT issued a Public Notice Regarding
Certain Corporate Income Tax Matters on Indirect Transfer of Properties by Non-Tax Resident Enterprises, or &#8220;SAT Circular 7.&#8221;
SAT Circular 7 provides comprehensive guidelines relating to indirect transfers of PRC taxable assets (including equity interests and
real properties of a PRC resident enterprise) by a non-resident enterprise. In addition, in October 2017, SAT issued an Announcement on
Issues Relating to Withholding at Source of Income Tax of Non-resident Enterprises, or &#8220;SAT Circular 37,&#8221; effective in December
2017 and amended in June 2018, which, among others, amended certain provisions in SAT Circular 7 and further clarify the tax payable declaration
obligation by non-resident enterprise. Indirect transfer of equity interest and/or real properties in a PRC resident enterprise by their
non-PRC holding companies are subject to SAT Circular 7 and SAT Circular 37.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">SAT Circular 7 provides clear criteria for an
assessment of reasonable commercial purposes and has introduced safe harbors for internal group restructurings and the purchase and sale
of equity through a public securities market. As stipulated in SAT Circular 7, indirect transfers of PRC taxable assets are considered
as reasonable commercial purposes if the shareholding structure of both transaction parties falls within the following situations: i)
the transferor directly or indirectly owns 80% or above equity interest of the transferee, or vice versa; ii) the transferor and the transferee
are both 80% or above directly or indirectly owned by the same party; iii) the percentage in bullet point i) and ii) shall be 100% if
over 50% the share value of a foreign enterprise is directly or indirectly derived from PRC real properties. Furthermore, SAT Circular
7 also brings challenges to both foreign transferor and transferee (or other person who is obligated to pay for the transfer) of taxable
assets. Where a non-resident enterprise transfers PRC taxable assets indirectly by disposing of the equity interests of an overseas holding
company, which is an indirect transfer, the non-resident enterprise as either transferor or transferee, or the PRC entity that directly
owns the taxable assets, may report such indirect transfer to the relevant tax authority and the PRC tax authority may disregard the existence
of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding,
or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee
or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes, currently at a rate of 10% for
the transfer of equity interests in a PRC resident enterprise.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to SAT Circular 37, where the non-resident
enterprise fails to declare the tax payable pursuant to Article 39 of the EIT Law, the tax authority may order it to pay the tax due within
required time limits, and the non-resident enterprise shall declare and pay the tax payable within such time limits specified by the tax
authority. If the non-resident enterprise, however, voluntarily declares and pays the tax payable before the tax authority orders it to
do so within required time limits, it shall be deemed that such enterprise has paid the tax in time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We face uncertainties as to the reporting and
assessment of reasonable commercial purposes and future transactions where PRC taxable assets are involved, such as offshore restructuring,
sale of the shares in our offshore subsidiaries, and investments. In the event of being assessed as having no reasonable commercial purposes
in an indirect transfer transaction, we may be subject to filing obligations or taxed if we are a transferor in such transactions, and
may be subject to withholding obligations (to be specific, a 10% withholding tax for the transfer of equity interests) if we are a transferee
in such transactions, under SAT Circular 7 and SAT Circular 37. For transfer of shares by investors who are non-PRC resident enterprises,
the PRC operating entities may be requested to assist in the filing under the SAT circulars. As a result, we may be required to expend
valuable resources to comply with the SAT circulars or to request the relevant transferors from whom we purchase taxable assets to comply
with these circulars, or to establish that we should not be taxed under these circulars, which may have a material adverse effect on our
financial condition and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Governmental control of currency conversion
may affect the value of your investment and our payment of dividends.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC government imposes controls on the convertibility
of the RMB into foreign currencies and, in certain cases, the remittance of currency out of China. We receive substantially all of our
revenue in the RMB. Under our current corporate structure, Sentage Holdings may rely on dividend payments from our PRC subsidiary, Sentage
WFOE, to fund any cash and financing requirements we may have. Under existing PRC foreign exchange regulations, payments of current account
items, such as profit distributions and trade and service-related foreign exchange transactions, can be made in foreign currencies without
prior approval from SAFE by complying with certain procedural requirements. Therefore, Sentage WFOE is able to pay dividends in foreign
currencies to us without prior approval from SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies
with certain procedures under PRC foreign exchange regulation, such as the overseas investment registrations by our shareholders or the
ultimate shareholders of our corporate shareholders who are PRC residents. Approval from or registration with appropriate government authorities
is, however, required where the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as
the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future
to foreign currencies for current account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign
currencies to satisfy our foreign currency demand, we may not be able to pay dividends in foreign currencies to our shareholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 42; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>There are significant uncertainties under
the PRC Enterprise Income Tax Law relating to the withholding tax liabilities of the PRC Operating Entities, and dividends payable by
the PRC operating entities to our offshore subsidiaries may not qualify to enjoy certain treaty benefits.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the EIT Law and its implementation rules,
the profits of a foreign invested enterprise generated through operations, which are distributed to its immediate holding company outside
the PRC, will be subject to a withholding tax rate of 10%. Pursuant to the Arrangement between the Mainland China and the Hong Kong Special
Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the &#8220;Double Tax Avoidance Arrangement,&#8221;
a withholding tax rate of 10% may be lowered to 5% if the PRC enterprise is at least 25% held by a Hong Kong enterprise for at least 12
consecutive months prior to distribution of the dividends and is determined by the relevant PRC tax authority to have satisfied other
conditions and requirements under the Double Tax Avoidance Arrangement and other applicable PRC laws.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">However, based on the Circular on Certain Issues
with Respect to the Enforcement of Dividend Provisions in Tax Treaties, or the &#8220;SAT Circular 81,&#8221; which became effective on
February 20, 2009, if the relevant PRC tax authorities determine, in their discretion, that a company benefits from such reduced income
tax rate due to a structure or arrangement that is primarily tax-driven, such PRC tax authorities may adjust the preferential tax treatment.
According to Circular on Several Issues regarding the &#8220;Beneficial Owner&#8221; in Tax Treaties, which became effective as of April
1, 2018, when determining an applicant&#8217;s status as the &#8220;beneficial owner&#8221; regarding tax treatments in connection with
dividends, interests, or royalties in the tax treaties, several factors will be taken into account. Such factors include whether the business
operated by the applicant constitutes actual business activities, and whether the counterparty country or region to the tax treaties does
not levy any tax, grant tax exemption on relevant incomes, or levy tax at an extremely low rate. This circular further requires any applicant
who intends to be proved of being the &#8220;beneficial owner&#8221; to file relevant documents with the relevant tax authorities. Our
PRC subsidiary is wholly owned by our Hong Kong subsidiary. However, we cannot assure you that our determination regarding our qualification
to enjoy the preferential tax treatment will not be challenged by the relevant PRC tax authority or we will be able to complete the necessary
filings with the relevant PRC tax authority and enjoy the preferential withholding tax rate of 5% under the Double Tax Avoidance Arrangement
with respect to dividends to be paid by Senage WFOE to our Hong Kong subsidiary, in which case, we would be subject to the higher withdrawing
tax rate of 10% on dividends received.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The &#8220;Opinions on Severely Cracking
Down on Illegal Securities Activities According to Law,&#8221; or the &#8220;Opinions,&#8221; recently issued by the General Office of
the Central Committee of the Communist Party of China and the General Office of the State Council may subject us to additional compliance
requirement in the future.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Recently, the General Office of the Central Committee
of the Communist Party of China and the General Office of the State Council jointly issued the Opinions, which were made available to
the public on July 6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities and the
supervision on overseas listings by China-based companies. The Opinions proposed to take effective measures, such as promoting the construction
of relevant regulatory systems, to deal with the risks and incidents facing China-based overseas-listed companies and the demand for cybersecurity
and data privacy protection. The aforementioned policies and any related implementation rules to be enacted may subject us to additional
compliance requirement in the future. As the Opinions were recently issued, official guidance and interpretation of the Opinions remain
unclear in several respects at this time. Therefore, we cannot assure you that we will remain fully compliant with all new regulatory
requirements of the Opinions or any future implementation rules on a timely basis, or at all.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 43; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Recent greater oversight by the Cyberspace
Administration of China (&#8220;CAC&#8221;) over data security, particularly for companies seeking to list on a foreign exchange, could
adversely impact our business.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 10, 2021, the Standing Committee of the
National People&#8217;s Congress of China, or the SCNPC, promulgated the PRC Data Security Law (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#25968;&#25454;&#23433;&#20840;&#27861;&#12299;),
which became effective in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities and individuals
carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance of data
in economic and social development, and the degree of harm it will cause to national security, public interests, or legitimate rights
and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC
Data Security Law also provides for a national security review procedure for data activities that may affect national security and imposes
export restrictions on certain data and information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 10, 2021, the CAC issued the Circular
on Seeking Comments on Cybersecurity Review Measures (Revised Draft for Comments) (the &#8220;Review Measures Draft&#8221;) (&#12298;&#32593;&#32476;&#23433;&#20840;&#23457;&#26597;&#21150;&#27861;&#65288;&#20462;&#35746;&#33609;&#26696;&#24449;&#27714;&#24847;&#35265;&#31295;&#65289;&#12299;),
which required, among others, in addition to any &#8220;critical information infrastructure operators (&#8220;CIIOs&#8221;),&#8221; any
&#8220;data processor&#8221; controlling personal information of no less than one million users which seeks to list in a foreign stock
exchange should also be subject to cybersecurity review.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 20, 2021, the Standing Committee of
the National People&#8217;s Congress Standing Committee of the National People&#8217;s Congress issued The Personal Information Protection
Law of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#20010;&#20154;&#20449;&#24687;&#20445;&#25252;&#27861;&#12299;),
effective on November 1, 2021. It provides that critical information infrastructure operators (&#8220;CIIOs&#8221;) and personal information
processors whose quantity of processing of personal information reaches that as prescribed by the CAC must store personal information
collected and generated within the territory of the People&#8217;s Republic of China. Where it is necessary to provide such information
and data to an overseas party, such provision are required to pass the security evaluation organized by the CAC, unless otherwise waived
by laws or administrative regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 14, 2021, the CAC published the Network
Internet Data Protection Draft Regulations (draft for comments), (&#12298;&#32593;&#32476;&#25968;&#25454;&#23433;&#20840;&#31649;&#29702;&#26465;&#20363;&#65288;&#24449;&#27714;&#24847;&#35265;&#31295;&#65289;&#12299;),
and accepted public comments until December 13, 2021. The Network Internet Data Protection Draft Regulations provides that data processors
refer to individuals or organizations that autonomously determine the purpose and the manner of processing data. If a data processor that
processes the personal data of more than one million users intends to list overseas, it shall apply for a cybersecurity review. In addition,
data processors that process important data or are listed overseas shall carry out an annual data security assessment on their own or
by engaging a data security services institution, and the data security assessment report for the prior year should be submitted to the
local cyberspace affairs administration department before January 31 of each year.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Later on, December 28, 2021, the CAC and other
relevant PRC governmental authorities jointly promulgated the Cybersecurity Review Measures Transfer (&#12298;&#32593;&#32476;&#23433;&#20840;&#23457;&#26597;&#21150;&#27861;&#12299;),
which took effect on February 15, 2022. The Cybersecurity Review Measures provide that, in addition to CIIOs that intend to purchase Internet
products and services, net platform operators engaging in data processing activities that affect or may affect national security must
be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity Review Measures, a cybersecurity
review assesses potential national security risks that may be brought about by any procurement, data processing, or overseas listing.
The Cybersecurity Review Measures require that an online platform operator which possesses the personal information of at least one million
users must apply for a cybersecurity review by the CAC if it intends to be listed in foreign countries.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 7, 2022, the CAC published the Measures
for the Security Assessment of Outbound Data Transfer (&#12298;&#25968;&#25454;&#20986;&#22659;&#23433;&#20840;&#35780;&#20272;&#21150;&#27861;&#12299;),
which effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People&#8217;s Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file to the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than one
million individuals transfers personal information abroad&#65307;(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or&#65307;(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 44; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As advised by our PRC counsel, Dentons, the operations
of the PRC operating entities and our continued listing will not be affected and that we will not be subject to cybersecurity review by
the CAC, given that the PRC operating entities (i) possess personal data of fewer than one million individual clients; (ii) do not collect
data that affects or may affect national security in their business operations, as of the date of this annual report; and (iii) do not
anticipate that they will be collecting over one million users&#8217; personal information or data that affects or may affect national
security in the near future. However, as uncertainties remain regarding the interpretation and implementation of these laws and regulations,
we cannot assure you that we will comply with such regulations in all respects, and we may be ordered to rectify or terminate any actions
that are deemed illegal by regulatory authorities. We may also become subject to fines and/or other sanctions and the costs of compliance
with, and other burdens imposed by such laws and regulations may limit the use and adoption of our products, which may have material adverse
effects on our business, operations, and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If we become directly subject to the scrutiny,
criticism, and negative publicity involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate
and resolve the matter which could harm our business operations, stock price, and reputation.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">U.S. public companies that have substantially
all of their operations in China have been the subject of intense scrutiny, criticism, and negative publicity by investors, financial
commentators, and regulatory agencies, such as the SEC. Much of the scrutiny, criticism, and negative publicity has centered on financial
and accounting irregularities and mistakes, a lack of effective internal controls over financial accounting, inadequate corporate governance
policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result of the scrutiny, criticism, and negative
publicity, the publicly traded stock of many U.S. listed Chinese companies sharply decreased in value and, in some cases, has become virtually
worthless. Many of these companies are now subject to shareholder lawsuits and SEC enforcement actions and are conducting internal and
external investigations into the allegations. It is not clear what effect this sector-wide scrutiny, criticism, and negative publicity
will have on us, our business, and the price of our Ordinary Shares. If we become the subject of any unfavorable allegations, whether
such allegations are proven to be true or untrue, we will have to expend significant resources to investigate such allegations and/or
defend our company. This situation will be costly and time consuming and distract our management from developing our business. If such
allegations are not proven to be groundless, we and our business operations will be severely affected and you could sustain a significant
decline in the value of our Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The disclosures in our reports and other
filings with the SEC and our other public pronouncements are not subject to the scrutiny of any regulatory bodies in the PRC.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are regulated by the SEC, and our reports and
other filings with the SEC are subject to SEC review in accordance with the rules and regulations promulgated by the SEC under the Securities
Act and the Exchange Act. Our SEC reports and other disclosure and public pronouncements are not subject to the review or scrutiny of
any PRC regulatory authority. For example, the disclosure in our SEC reports and other filings are not subject to the review by China
Securities Regulatory Commission, a PRC regulator that is responsible for oversight of the capital markets in China. Accordingly, you
should review our SEC reports, filings, and our other public pronouncements with the understanding that no local regulator has done any
review of us, our SEC reports, other filings, or any of our other public pronouncements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 45; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The recent joint statement by the SEC and
the PCAOB, rule changes by Nasdaq, and the Holding Foreign Companies Accountable Act and related regulations, all call for additional
and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially
the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our continued listing or future
offerings of our securities in the U.S.&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 21, 2020, SEC Chairman Jay Clayton and
PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated
with investing in companies based in or have substantial operations in emerging markets including China. The joint statement emphasized
the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China and higher risks of fraud in
emerging markets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 18, 2020, Nasdaq filed three proposals
with the SEC to (i) apply a minimum offering size requirement for companies primarily operating in a &#8220;Restrictive Market,&#8221;
(ii) adopt a new requirement relating to the qualification of management or the board of directors for Restrictive Market companies, and
(iii) apply additional and more stringent criteria to an applicant or listed company based on the qualifications of the company&#8217;s
auditor. On October 4, 2021, the SEC approved Nasdaq&#8217;s revised proposal for the rule changes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 20, 2020, the U.S. Senate passed the Holding
Foreign Companies Accountable Act requiring a foreign company to certify it is not owned or controlled by a foreign government if the
PCAOB is unable to audit specified reports because the company uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is
unable to inspect the company&#8217;s auditors for three consecutive years, the issuer&#8217;s securities are prohibited to trade on a
national exchange. On December 2, 2020, the U.S. House of Representatives approved the Holding Foreign Companies Accountable Act. On December
18, 2020, the Holding Foreign Companies Accountable Act was signed into law.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 24, 2021, the SEC adopted interim final
rules relating to the implementation of certain disclosure and documentation requirements of the Holding Foreign Companies Accountable
Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 22, 2021, the PCAOB adopted a final
rule implementing the Holding Foreign Companies Accountable Act, which provides a framework for the PCAOB to use when determining, as
contemplated under the Holding Foreign Companies Accountable Act, whether the board of directors of a company is unable to inspect or
investigate completely registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more
authorities in that jurisdiction.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 2, 2021, the SEC adopted amendments
to finalize rules implementing the submission and disclosure requirements in the Holding Foreign Companies Accountable Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 16, 2021, the PCAOB issued a Determination
Report on December 16, 2021 which found that the PCAOB is unable to inspect or investigate completely registered public accounting firms
headquartered in: (1) mainland China of the People&#8217;s Republic of China because of a position taken by one or more authorities in
mainland China; and (2) Hong Kong, a Special Administrative Region and dependency of the PRC, because of a position taken by one or more
authorities in Hong Kong. In addition, the PCAOB&#8217;s report identified the specific registered public accounting firms which are subject
to these determinations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 26, 2022, the China Securities Regulatory
Commission (the &#8220;CSRC&#8221;), the Ministry of Finance of the PRC (the &#8220;MOF&#8221;), and the PCAOB signed a Statement of Protocol
(the &#8220;Protocol&#8221;) governing inspections and investigations of audit firms based in mainland China and Hong Kong, taking the
first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms headquartered in mainland
China and Hong Kong. Pursuant to the fact sheet with respect to the Protocol disclosed by the SEC, the PCAOB shall have independent discretion
to select any issuer audits for inspection or investigation and has the unfettered ability to transfer information to the SEC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 46; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 15, 2022, the PCAOB determined that
it was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and
Hong Kong and vacated its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate
the PCAOB&#8217;s access in the future, the PCAOB may consider the need to issue a new determination.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 22, 2021, the U.S. Senate passed the Accelerating
Holding Foreign Companies Accountable Act, and on December 29, 2022, the Consolidated Appropriations Act 2023 was signed into law, which
contained, among other things, an identical provision to the Accelerating Holding Foreign Companies Accountable Act, which reduces the
number of consecutive non-inspection years required for triggering the prohibitions under the Holding Foreign Companies Accountable Act
from three years to two years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our auditor, Enrome LLP, the independent registered
public accounting firm that issues the audit report included elsewhere in this annual report, as an auditor of companies that are traded
publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which the PCAOB
conducts regular inspections to assess its compliance with the applicable professional standards and was not identified in the Determination
Report as a firm subject to the PCAOB&#8217;s Determination. Enrome LLP is headquartered in Singapore, and can be inspected by the PCAOB.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">However, we cannot assure you whether the national
securities exchange we are listed on or regulatory authorities would apply additional and more stringent criteria to us after considering
the effectiveness of our auditor&#8217;s audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency
of resources, geographic reach, or experience as it relates to our audit. In addition, our Ordinary Shares may be delisted in the future
if the PCAOB is unable to inspect our accounting firm within two years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The Chinese government exerts substantial
influence over the manner in which we must conduct our business, and may intervene or influence our operations at any time, which could
result in a material change in our operations, significantly limit or completely hinder our ability to offer or continue to offer securities
to investors, and cause the value of our Ordinary Shares to significantly decline or be worthless</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations,
land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations
or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance
with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue to support
recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation of economic
policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest
ourselves of any interest we then hold in Chinese properties.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Recent statements made by the Chinese government
have indicated an intent to increase the government&#8217;s oversight and control over offerings of companies with significant operations
in the PRC that are to be conducted in foreign markets, as well as foreign investment in China-based issuers. On February 17, 2023, the
China Securities Regulatory Commission (the &#8220;CSRC&#8221;) released the Trial Administrative Measures of Overseas Securities Offering
and Listing by Domestic Companies (the &#8220;Trial Measures&#8221;), (&#12298;&#22659;&#20869;&#20225;&#19994;&#22659;&#22806;&#21457;&#34892;&#35777;&#21048;&#21644;&#19978;&#24066;&#31649;&#29702;&#35797;&#34892;&#21150;&#27861;&#12299;)
and five supporting guidelines (collectively, the &#8220;Overseas Listings Rules&#8221;), which has taken effect on March 31, 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Overseas Listing Rules aim to lay out the
filing regulation arrangement for both direct and indirect overseas listing and clarify the determination criteria for indirect overseas
listing in overseas markers. Where an enterprise whose principal business activities are conducted in the PRC seeks to issue and list
its shares in the name of an overseas enterprise based on equity, assets, income, or other similar rights and interests of the relevant
domestic enterprise in the PRC, such activities are deemed an indirect overseas issuance and listing.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 47; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the Overseas Listings Rules, after
the submission of relevant application for initial public offerings or listings in overseas markets, or after the completion of subsequent
securities offerings of an issuer in the same overseas market where it has previously offered and listed, or after the submission of relevant
application for subsequent securities offerings and listings of an issuer in other overseas markets than where it has offered and listed,
all China-based companies shall file the required filing materials with the CSRC within three working days. In addition, overseas offerings
and listings will be prohibited for such China-based companies when any of the following applies: (i) where such securities offerings
and listings are explicitly prohibited by the PRC laws and regulations; (ii) where the intended securities offerings and listings may
endanger national security as reviewed and determined by competent authorities under the State Council in accordance with laws; (iii)
where the domestic company intending to make the securities offering and listing, or its controlling shareholders and the actual controller,
have committed crimes such as corruption, bribery, embezzlement, misappropriation of property or undermining the order of the socialist
market economy during the latest three years; (iv) where the domestic company intending to make the securities offering and listing is
suspected of committing crimes or major violations of laws and regulations, and is under investigation according to law, and no conclusion
has yet been made thereof; or (v) where there are material ownership disputes over equity held by the domestic company&#8217;s controlling
shareholder or by other shareholders that are controlled by the controlling shareholder and/or actual controller. The Trial Measures further
stipulate that a fine between RMB1 million (approximately $157,255) and RMB10 million (approximately $1,572,550) may be imposed if an
applicant fails to fulfill the filing requirements with the CSRC or conducts an overseas offering or listing in violation of the Overseas
Listings Rules.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this annual report, we have
not received any formal inquiry, notice, warning, sanction, or any regulatory objection from the CSRC with respect to our listing or subsequent
offerings. As the Overseas Listings Rules were newly published and there exists uncertainty with respect to the filing requirements and
its implementation, if we are required to submit to the CRSC and complete the filing procedure of our subsequent overseas public offerings,
we cannot be sure that we will be able to complete such filings in a timely manner. Any failure or perceived failure by us to comply with
such filing requirements under the Overseas Listings Rules may result in forced corrections, warnings and fines against us and could materially
hinder our ability to offer or continue to offer our securities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding the above, our PRC counsel has
further advised us that uncertainties still exist as to whether we, our subsidiaries,the VIEs to operate in China, or any of their subsidiaries
are required to obtain permissions from the CAC, the CSRC, or any other governmental agency that is required to approve our operations
and/or offering. We have been closely monitoring the development in the regulatory landscape in the PRC, particularly regarding the requirement
of approvals, including on a retrospective basis, from the CAC, the CSRC, or other PRC authorities with respect to this offering, as well
as other procedures that may be imposed on us. In the event that we, our subsidiaries, the VIEs, or any of their subsidiaries are subject
to the compliance requirements, we cannot assure you that any of these entities will be able to receive clearance of such compliance requirements
in a timely manner, or at all. Any failure of our Company, our subsidiaries, and the VIEs, or any of their subsidiaries to fully comply
with new regulatory requirements may subject us to regulatory actions, such as fines, relevant businesses or operations suspension for
rectification, revocation of relevant business permits or operational license, or other sanctions, which may significantly limit or completely
hinder our ability to offer or continue to offer our securities cause significant disruption to our business operations, severely damage
our reputation, materially and adversely affect our financial condition and results of operations and cause our securities to significantly
decline in value or become worthless.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 48; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may be unable to complete a business
combination transaction efficiently or on favorable terms due to complicated merger and acquisition regulations and certain other PRC
regulations.&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Regulations on Mergers and Acquisitions of
Domestic Enterprises by Foreign Investors, or the M&amp;A Rules, purport to require offshore special purpose vehicles that are controlled
by PRC companies or individuals and that have been formed for the purpose of seeking a public listing on an overseas stock exchange through
acquisitions of PRC domestic companies or assets to obtain CSRC approval prior to publicly listing their securities on an overseas stock
exchange. The interpretation and application of the regulations remain unclear. If a governmental approval of our continued listing is
required, it is uncertain how long it will take for us to obtain such approval, and, even if we obtain such approval, the approval could
be rescinded. Any failure to obtain, or a delay in obtaining, the requisite governmental approval for our continued listing, or a rescission
of such CSRC approval if it is obtained by us, may subject us to sanctions imposed by the relevant PRC regulatory authority, which could
include fines and penalties on the operations of the VIEs and their subsidiaries in China, restrictions or limitations on our ability
to pay dividends outside of China, and other forms of sanctions that may materially and adversely affect our business, financial condition,
and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our PRC counsel, Dentons, has advised us that,
based on its understanding of the current PRC laws and regulations, we are not subject to the CSRC&#8217;s approval under the M&amp;A
Rules for our continued listing, because (i) the CSRC currently has not issued any definitive rule or interpretation concerning whether
any continued listings are subject to this regulation; (ii) we currently control Sentage WFOE by virtue of Sentage HK acquiring 100% of
the equity interest of Sentage WFOE, which is not regulated by the M&amp;A Rules. Sentage WFOE was established by means of direct investment
rather than by a merger with or an acquisition of any PRC domestic companies as defined under the M&amp;A Rules. CSRC approval only applies
to overseas listings of SPVs that have used their existing or newly issued equity interest to acquire existing or newly issued equity
interest in PRC domestic companies (iii) no provision in the M&amp;A Rules classifies the contractual arrangements under the VIE Agreements
as a type of acquisition transaction falling under the M&amp;A Rules.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our PRC counsel, Dentons, has further advised
us that there remains some uncertainty as to how the M&amp;A Rules will be interpreted or implemented in the context of an overseas listing,
and its opinions summarized above are subject to any new laws, rules and regulations or detailed implementations and interpretations in
any form relating to the M&amp;A Rules. We cannot assure you that relevant PRC governmental authorities, including the CSRC, would reach
the same conclusion as our PRC counsel, and hence, we may face regulatory actions or other sanctions from them.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 49; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>To the extent cash or assets of our business,
or of the PRC Operating Entities, is in the PRC or Hong Kong, such cash or assets may not be available to fund operations or for other
use outside of the PRC or Hong Kong, due to interventions in or the imposition of restrictions and limitations by the PRC government to
the transfer of cash or assets.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The transfer of funds and assets among Sentage
Holdings, its Hong Kong and PRC subsidiaries, and the VIEs is subject to restrictions. The PRC government imposes controls on the conversion
of the RMB into foreign currencies and the remittance of currencies out of the PRC. In addition, the PRC Enterprise Income Tax Law and
its implementation rules provide that a withholding tax at a rate of 10% will be applicable to dividends payable by Chinese companies
to non-PRC-resident enterprises, unless reduced under treaties or arrangements between the PRC central government and the governments
of other countries or regions where the non-PRC resident enterprises are tax resident.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this annual report, there are
no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including
funds from Hong Kong to the PRC), except for the transfer of funds involving money laundering and criminal activities. However, there
is no guarantee that the Hong Kong government will not promulgate new laws or regulations that may impose such restrictions in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the above, to the extent cash or
assets of our business, or of the PRC Operating Entities, is in the PRC or Hong Kong, such funds or assets may not be available to fund
operations or for other use outside of the PRC or Hong Kong, due to interventions in or the imposition of restrictions and limitations
by the PRC government to the transfer of cash or assets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Related to Our Ordinary Shares</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may issue additional Ordinary Shares
or other equity securities without your approval, which would dilute your ownership interests and may depress the market price of our
Ordinary Shares.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may issue additional Ordinary Shares or other
equity securities of equal or senior rank in the future for any reason or in connection with, among other things, future acquisitions
or repayment of outstanding indebtedness, without shareholder approval.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our issuance of additional Ordinary Shares or
other equity securities of equal or senior rank would have the following effects:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our existing shareholders&#8217; proportionate ownership interest in us will decrease;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the amount of cash available per share, including for payment of dividends in the future, may decrease;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the relative voting strength of each previously outstanding share may be diminished; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the market price of our Ordinary Shares may decline.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are not expected to pay dividends on
our Ordinary Shares in the foreseeable future.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not expected to pay dividends on our Ordinary
Shares in the foreseeable future. Instead, for the foreseeable future, it is expected that we will continue to retain any earnings to
finance the development and expansion of its business, and not to pay any cash dividends on our Ordinary Shares. Consequently, you should
not rely on an investment in the Company as a source for any future dividend income.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 50; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board of directors has complete discretion
as to whether to distribute dividends, subject to applicable laws. Even if our board of directors decides to declare and pay dividends,
the timing, amount and form of future dividends, if any, will depend on, among other things, our future results of operations and cash
flow, our capital requirements and surplus, the amount of distributions, if any, received by us from our subsidiaries, our financial condition,
contractual restrictions and other factors deemed relevant by our board of directors. Accordingly, the return on your investment in our
Ordinary Shares will likely depend entirely upon any future price appreciation of our Ordinary Shares. We cannot guarantee that our Ordinary
Shares will appreciate in value or even maintain the price at which you purchased the Ordinary Shares. You may not realize a return on
your investment in our Ordinary Shares and you may even lose your entire investment in our Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may become a passive foreign investment
company, which could result in adverse United States federal income tax consequences to United States investors.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on the projected composition of our income
and valuation of our assets, we are not expected to be a passive foreign investment company (&#8220;PFIC&#8221;) for its current taxable
year, and we do not expect to become one in the future, although there can be no assurance in this regard. Although we do not expect to
be a PFIC, it is not entirely clear how the contractual arrangements between our Company and the VIEs will be treated for purposes of
the PFIC rules. If it were determined that we do not own the stock of the VIEs for U.S. federal income tax purposes (for instance, because
the relevant PRC authorities do not respect these arrangements), we may be treated as a PFIC. See &#8220;Item 10. Additional Information&#8212;E.
Taxation&#8212;U.S. Holders&#8212;<i>Passive Foreign Investment Company</i>.&#8221; If we are or were to become a PFIC, such characterization
could result in adverse United States federal income tax consequences to you if you are a U.S. investor. For example, if we are a PFIC,
its U.S. investors will become subject to increased tax liabilities under U.S. federal income tax laws and regulations and will become
subject to burdensome reporting requirements. We cannot assure you that we will not be a PFIC for our current taxable year or any future
taxable year.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our amended and restated memorandum and
articles of association contains anti-takeover provisions that could have a material adverse effect on the rights of holders of our Ordinary
Shares.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our amended and restated memorandum and articles
of association include provisions to limit the ability of others to acquire control of us or cause us to engage in change-of-control&#160;transactions.
These provisions could have the effect of depriving our shareholders of an opportunity to sell their shares at a premium over prevailing
market prices by discouraging third parties from seeking to obtain control of us in a tender offer or similar transaction. For example,
our board of directors has the authority, subject to any resolution of the shareholders to the contrary, to issue preference shares in
one or more series and to fix their designations, powers, preferences, privileges, and relative participating, optional or special rights
and the qualifications, limitations or restrictions, including dividend rights, conversion rights, voting rights, terms of redemption
and liquidation preferences, any or all of which may be greater than the rights associated with our Ordinary Shares. Preference shares
could be issued quickly with terms calculated to delay or prevent a change in control of the Company or make removal of management more
difficult. If our board of directors decides to issue preference shares, the price of our Ordinary Shares may fall and the voting and
other rights of the holders of our Ordinary Shares may be materially and adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>You may face difficulties in protecting
your interests, and your ability to protect your rights through U.S. courts may be limited, because we were formed under Cayman Islands
law.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are an exempted company incorporated under
the laws of the Cayman Islands. Our corporate affairs are governed by our amended and restated memorandum and articles of association,
the Companies Act of the Cayman Islands and the common law of the Cayman Islands. The rights of our shareholders to take action against
our directors, actions by our minority shareholders and the fiduciary duties of our directors to us under Cayman Islands law are to a
large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively
limited judicial precedents in the Cayman Islands as well as from the common law of England, the decisions of whose courts are of persuasive
authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors
under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedents in some jurisdictions in
the United States. In particular, the Cayman Islands has a less developed body of securities laws than the United&#160;States. Some U.S.
states, such as Delaware, have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition,
Cayman Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 51; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shareholders of Cayman Islands exempted companies
have no general rights under the Cayman Islands law to inspect corporate records or to obtain copies of lists of shareholders of these
companies. Our directors have the discretion under our amended and restated memorandum and articles of association to determine whether
or not, and under what conditions, our corporate records may be inspected by shareholders, but are not obliged to make them available
to shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder
motion or to solicit proxies from other shareholders in connection with a proxy contest.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain corporate governance practices in the
Cayman Islands differ significantly from requirements for companies incorporated in other jurisdictions such as the U.S. To the extent
we choose to follow home country practice, shareholders may be afforded less protection than they otherwise would have under rules and
regulations applicable to U.S. domestic issuers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Cayman Islands courts are also unlikely (i)&#160;to
recognize or enforce against us judgments of courts of the United States based on certain civil liability provisions of U.S. securities
laws, or (ii)&#160;to impose liabilities against us, in original actions brought in the Cayman Islands, based on certain civil liability
provisions of U.S. securities laws that are penal in nature.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is no statutory recognition in the Cayman
Islands of judgments obtained in the United States, although the courts of the Cayman Islands will in certain circumstances recognize
and enforce a non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of all of the above, our shareholders
may have more difficulty in protecting their interests in the face of actions taken by our management, members of our board of directors
or shareholders than they would as shareholders of a company incorporated in the United States.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 52; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Certain judgments obtained against us by
our shareholders may not be enforceable.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a Cayman Islands company and all of our
assets are located outside of the United States. All of our current operations are conducted in the PRC. In addition, the majority of
our officers and directors are nationals and residents of countries other than the United States and all of their assets are located outside
the United States. As a result, it may be difficult or impossible for you to bring an action against us or against these individuals in
the United States in the event that you believe that your rights have been infringed under the U.S. federal securities laws or otherwise.
Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and of the PRC may render you unable to
enforce a judgment against our assets or the assets of our directors and officers. For more information regarding the relevant laws of
the Cayman Islands and the PRC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are a foreign private issuer within the
meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to United States domestic public
companies.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because we are a foreign private issuer under
the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable
to U.S. domestic issuers, including:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q or current reports on Form 8-K with the SEC;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the selective disclosure rules by issuers of material nonpublic information under Regulation FD.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are required to file an annual report on Form
20-F within four months of the end of each fiscal year. In addition, we intend to publish our results on a quarterly basis through press
releases, distributed pursuant to the rules and regulations of the Nasdaq. Press releases relating to financial results and material events
will also be furnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less
extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded
the same protections or information, which would be made available to you, were you investing in a U.S. domestic issuer.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>As a company incorporated in the Cayman
Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly
from Nasdaq corporate governance listing standards; these practices may afford less protection to shareholders than they would enjoy if
we complied fully with Nasdaq corporate governance listing standards</i></b>.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a Cayman Islands company listed on the Nasdaq,
we are subject to Nasdaq corporate governance listing standards. However, the Nasdaq rules permit a foreign private issuer like us to
follow the corporate governance practices of its home country. Certain corporate governance practices in the Cayman Islands, which is
our home country, may differ significantly from Nasdaq corporate governance listing standards. A Cayman Islands company is not required
to have annual general meetings. Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands
law to inspect corporate records or to obtain copies of lists of shareholders of these companies. Our directors have discretion under
our articles of association to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders,
but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed
to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest.
To the extent we choose to follow home country practice with respect to corporate governance matters such as the exemption from holding
an annual general meeting pursuant to Nasdaq Rule 5620(a), our shareholders may be afforded less protection than they otherwise would
under rules and regulations applicable to U.S. domestic issuers. For details as to the corporate governance matters for which we have
elected to follow our home country practices, rather than Nasdaq listing standards, please see &#8220;Item 16.G&#8212;Corporate Governance.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 53; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We have incurred and will continue to incur
increased costs as a result of being a public company</i></b>.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a public company and we incur significant
accounting, legal and other expenses. The Sarbanes-Oxley Act, as well as rules subsequently implemented by the SEC and the Nasdaq, have
detailed requirements concerning corporate governance practices of public companies, including Section 404 of the Sarbanes-Oxley Act of
2002 relating to internal controls over financial reporting. These rules and regulations applicable to public companies have increased
our accounting, legal and financial compliance costs and made certain corporate activities more time-consuming and costly. Our management
is required to devote substantial time and attention to our public company reporting obligations and other compliance matters. Our reporting
and other compliance obligations as a public company may place a strain on our management, operational and financial resources and systems
for the foreseeable future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the past, shareholders of a public company
often brought securities class action suits against the company following periods of instability in the market price of that company&#8217;s
securities. If we were involved in a class action suit, it could divert a significant amount of our management&#8217;s attention and other
resources from our business and operations, which could harm our results of operations and require us to incur significant expenses to
defend the suit. Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital
in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could have
a material adverse effect on our financial condition and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_007"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;4. INFORMATION ON THE COMPANY</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.</b></span></td>
    <td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>History and Development of the Company </b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sentage Holdings Inc. (&#8220;Sentage Holdings&#8221;)
was incorporated on September 16, 2019, under the laws of the Cayman Islands. Sentage Hongkong Limited (&#8220;Sentage HK&#8221;) was
incorporated on September 25, 2019 in Hong Kong as a wholly owned subsidiary of Sentage Holdings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 17, 2019, Shanghai Santeng Technology
Co., Ltd. (&#8220;Sentage WFOE&#8221;) was incorporated pursuant to PRC laws as a wholly foreign owned enterprise. Sentage HK holds 100%
of the equity interests in Sentage WFOE. Due to PRC laws and regulations on foreign ownership and investment in companies that engage
in certain businesses including third-party payment services, we conduct our businesses in China through a VIE structure.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently operate three lines of business in
loan repayment and collection management, loan recommendation, and prepaid payment network through three of the Sentage Operating Companies,
Daxin Wealth, Daxin Zhuohui, and Qingdao Buytop, pursuant to a series of contractual arrangements, also known as VIE Agreements. As of
the date of this annual report, Zhenyi, another VIE and Sentage Operating Company, is not engaged in active business operation but is
expected to provide us with technical and system development and support in the future. All the Sentage Operating Companies were incorporated
as limited companies pursuant to PRC laws. Specifically, Daxin Wealth and Daxin Zhuohui are engaged in the loan repayment and collection
management business, Daxin Zhuohui provides loan recommendation services, and Qingdao Buytop provides prepaid payment network services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 9, 2021, our Ordinary Shares were listed
on the Nasdaq Capital Market under the symbol &#8220;SNTG.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 10pt">On July 13, 2021,
we closed our initial public offering (&#8220;IPO&#8221;) of 4,000,000 Ordinary Shares</span>, or <span style="font-size: 10pt">800,000
Ordinary Shares reflecting the 1-for-5 share consolidation that took effect on August 10, 2022, pursuant to the registration statement
on Form F-1 (File No.333-254558).</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SEC maintains a website at&#160;www.sec.gov&#160;that
contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC using
its EDGAR system. Investors may also find more information about us on our website at www.sentageholdings.com.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 54; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B. Business Overview </b></span></p><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sentage Holdings is not an operating company but
a Cayman Islands holding company. The Company&#8217;s operations are conducted through Sentage Operating Companies, or the VIEs, based
in China, pursuant to the VIE Agreements. The VIE structure is not used to provide contractual exposure to foreign investment in China-based
companies where Chinese law prohibits direct foreign investment in the operating companies, rather we use the VIE structure because the
Chinese laws and regulations affecting Sentage Operating Companies&#8217; businesses are vague and unclear. Sentage Operating Companies
engage in (i) consumer loan repayment and collection management service, (ii) loan recommendation service, and (iii) prepaid payment network
service. According to &#8220;Administrative Measures of People&#8217;s Bank of China on Payment Services Provided by Non-financial Institutions&#8221;
(&#8220;Order 2&#8221;) and &#8220;People&#8217;s Bank of China Announcement [2018] No. 7 &#8212; Announcement on Matters Relating to
Foreign-funded Payment Organizations&#8221; (&#8220;Announcement No. 7&#8221;), those who engage in prepaid network services business
within China need to go through a special legal approval procedure to obtain third-party payment licenses. Although the People&#8217;s
Bank of China has loosened the requirements for foreign-invested enterprises to hold third-party payment licenses, the review procedure
is still very strict in practice. At the same time, Chinese authorities have not yet made it clear whether to permit or prohibit foreign-invested
enterprises to engage in prepaid network services, loan collection management and loan recommendation services, and there is a risk that
Chinese authorities may prohibit direct foreign investment of such businesses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not have any equity interests in the Sentage
Operating Companies, whose financial results have been consolidated by us in accordance with U.S. GAAP because we are deemed to have effective
control over and be the primary beneficiary of these companies, for accounting purposes only, via the VIE Agreements. However, the VIE
Agreements have not been tested in a court of law in China as of the date of this annual report. Investors of our Ordinary Shares, thus,
do not own any equity interest in the Sentage Operating Companies, or the VIEs, in China, but instead own equity interest in a Cayman
Islands holding company. For details of the VIE Agreements, see &#8220;ITEM 4. C. Organizational Structure &#8211; The VIE Agreements&#8221;;
and for the risks associated with the VIE Agreements and the VIE structure, see &#8220;ITEM 3D. Risk Factors &#8211; Risks Related to
Our Corporate Structure&#8221;.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to risks associated with our VIE
structure. Investors may never directly hold equity interests in the VIEs. If the PRC government finds that the contractual arrangements
which establish the structure of our business operations do not comply with PRC laws and regulations, or if these regulations or their
interpretations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations,
which would result in the VIEs being deconsolidated. A majority of our assets, including the necessary licenses to conduct business are
held by the VIEs and their subsidiaries. Substantially all of our revenue is generated by the VIEs. The deconsolidation of the VIEs would
have a material adverse effect on our operations and substantially diminish the value of our Ordinary Shares. There are uncertainties
about potential future actions by the PRC government that could affect the enforceability of our contractual arrangements with the VIEs
and, consequently, significantly affect our financial performance. The value of the Ordinary Shares may significantly decline or become
worthless as a result. For a detailed description of the risks associated with our corporate structure, please refer to risks disclosed
under &#8220;Risk Factors&#8212;Risks Related to Our Corporate Structure.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We face various legal and operational risks and
uncertainties associated with having substantially all of our operations in China and with the complex and evolving PRC laws and regulations,
and as a result these risks may result in material changes in the operations of our subsidiaries, the VIEs, and their subsidiaries, significant
depreciation or a complete loss of the value of our Ordinary Shares, or a complete hindrance of our ability to offer, or continue to offer,
our securities to investors. For example, we face risks associated with PRC governmental authorities&#8217; significant oversight and
discretion over the businesses and financing activities of the VIEs, the requirement of regulatory approvals for offerings and listings
conducted overseas and foreign investment in China-based issuers, the use of VIEs, the enforcement of anti-monopoly regime, the regulatory
oversight on cybersecurity and data privacy as well as the risk of delisting if the PCAOB is unable to conduct inspection on our auditors,
which may impact our ability to conduct certain businesses, accept foreign investments, or continue to list on a United States or other
foreign exchange. These risks could result in a material adverse change in our operations and the value of our Ordinary Shares, significantly
limit or completely hinder our ability to offer or continue to offer such securities to investors, or cause the value of such securities
to significantly decline. For a detailed description of risks related to doing business in China, see &#8220;Risk Factors&#8212;Risks
Related to Doing Business in China.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 55; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Recently, the PRC government adopted a series
of regulatory actions and issued statements to regulate business operations in China with little advance notice, including cracking down
on illegal activities in the securities market, adopting new measures to extend the scope of cybersecurity reviews, and expanding the
efforts in anti-monopoly enforcement. As of the date of this report, none of the Company, our subsidiaries, nor the VIEs and their subsidiaries
have been involved in any investigation or cybersecurity review initiated by any PRC regulatory authority, nor has any of them received
any inquiry, notice, or sanction related to cybersecurity review under the Cybersecurity Review Measures. On December 28, 2021, 13 governmental
departments of the PRC, including the Cyberspace Administration of China (the &#8220;CAC&#8221;), issued the Cybersecurity Review Measures,
which became effective on February 15, 2022. The Cybersecurity Review Measures provide that an online platform operator which possesses
the personal information of at least one million users must apply for a cybersecurity review by the CAC if it intends to be listed in
foreign countries. On July 7, 2022, the CAC published the Measures for the Security Assessment of Outbound Data Transfer (&#12298;&#25968;&#25454;&#20986;&#22659;&#23433;&#20840;&#35780;&#20272;&#21150;&#27861;&#12299;),
which effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People&#8217;s Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file to the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than one
million individuals transfers personal information to abroad&#65307;(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or&#65307;(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration. As of the date of this annual report, according to our PRC counsel, Dentons, our operations in the PRC and
our continued listing are not subject to the review or prior approval of the Cyberspace Administration of China (&#8220;CAC&#8221;) or
the China Securities Regulatory Commission (&#8220;CSRC&#8221;). Uncertainties still exist, however, due to the possibility that laws,
regulations, or policies in the PRC could change rapidly in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event that (i) the PRC government expanded
the categories of industries and companies whose foreign securities offerings are subject to review by the CSRC or the CAC and that we
are required to obtain such permissions or approvals; or (ii) we inadvertently concluded that relevant permissions or approvals were not
required or that we did not receive or maintain relevant permissions or approvals required, any action taken by the PRC government could
significantly limit or completely hinder our operating subsidiaries&#8217; operations in the PRC and our ability to offer or continue
to offer our Ordinary Shares to investors and could cause the value of such securities to significantly decline or be worthless. Since
these statements and regulatory actions are newly published, however, official guidance and related implementation rules have not been
issued. It is highly uncertain what the potential impact such modified or new laws and regulations will have on the daily business operations
of our subsidiaries and the VIEs and their subsidiaries, our ability to accept foreign investments, and our listing on a U.S. exchange.
The Standing Committee of the National People&#8217;s Congress (&#8220;SCNPC&#8221;) or PRC regulatory authorities may in the future promulgate
laws, regulations, or implementing rules that require us, our subsidiaries, or the VIEs and their subsidiaries to obtain regulatory approval
from Chinese authorities before listing in the U.S. See &#8220;Item 3. Key Information&#8212;D. Risk Factors&#8212;Risks Relating to Doing
Business in China&#8212;<i>Recent greater oversight by the Cyberspace Administration of China (&#8220;CAC&#8221;) over data security,
particularly for companies seeking to list on a foreign exchange, could adversely impact our business</i>&#8221; and &#8220;Item 3. Key
Information&#8212;D. Risk Factors&#8212; Risks Related to Doing Business in China &#8212;<i>Changes in China&#8217;s economic, political,
or social conditions or government policies could have a material adverse effect on the operating entities&#8217; business and operations.</i>&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a holding company, we conduct our operations
in China through the VIEs in China. In addition, some of our senior executive officers and directors, namely Qiaoling Lu, Jianhu Chen,
Yiheng Guo, Shengsong Wong, reside in the PRC for a significant portion of the time and are PRC nationals. As a result, it may be difficult
to effect service of process upon those persons. It may be difficult to enforce judgements obtained in U.S. courts based on civil liability
provisions of the U.S. federal securities laws against us and our officers and directors, as none of them currently resides in the U.S.
or has substantial assets in the U.S. In addition, there is uncertainty as to whether the courts of the Cayman Islands or the PRC would
recognize or enforce judgments of U.S. courts against us or such persons predicated upon the civil liability provisions of the securities
laws of the U.S. or any state. See &#8220;Item&#160;3. Key Information&#8212;D. Risk Factors&#8212;Risks Relating to Doing Business in
China&#8212; <i>You may experience difficulties in effecting service of legal process, enforcing foreign judgments, or bringing actions
in China against us or our management named in this annual report based on foreign laws</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 56; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, trading in our securities may be
prohibited under the Holding Foreign Companies Accountable Act if the PCAOB determines that it cannot inspect our auditor, and as a result
an exchange may determine to delist our securities. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies
Accountable Act, and on December 29, 2022, the Consolidated Appropriations Act 2023 was signed into law, which contained, among other
things, an identical provision to the Accelerating Holding Foreign Companies Accountable Act, which reduces the number of consecutive
non-inspection years required for triggering the prohibitions under the Holding Foreign Companies Accountable Act from three years to
two years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Enrome LLP. Our auditor, the independent registered
public accounting firm that issues the audit report included elsewhere in this annual report, is headquartered in Singapore. As an auditor
of companies that are traded publicly in the U.S. and a firm registered with the PCAOB, our auditor is subject to laws in the U.S. and
PCAOB&#8217;s inspection.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">However, these recent developments would add uncertainties
to our continued listing and we cannot assure you whether Nasdaq or other regulatory authorities would apply additional and more stringent
criteria to us after considering the effectiveness of our auditor&#8217;s audit procedures and quality control procedures, adequacy of
personnel and training, or sufficiency of resources, geographic reach or experience as related to the audit of our financial statements.
Furthermore, there is a risk that our auditor cannot be inspected by the PCAOB in the future. The lack of inspection could cause trading
in our securities to be prohibited on a national exchange or in the over-the-counter trading market under the Holding Foreign Companies
Accountable Act, and, as a result, Nasdaq may determine to delist our securities, which may cause the value of our securities to decline
or become worthless.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Dividends and Distributions</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under existing PRC foreign exchange regulations,
payment of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made
in foreign currencies without prior approval from the State Administration of Foreign Exchange, or the SAFE, by complying with certain
procedural requirements. Therefore, our PRC subsidiary is able to pay dividends in foreign currencies to us without prior approval from
SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC foreign
exchange regulations, such as the overseas investment registrations by our shareholders or the ultimate shareholders of our corporate
shareholders who are PRC residents. Approval from, or registration with, appropriate government authorities is, however, required where
the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated
in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current account
transactions. Current PRC regulations permit Sentage WFOE to pay dividends to the Company only out of its accumulated profits, if any,
determined in accordance with Chinese accounting standards and regulations. As of the date of this annual report, there are no restrictions
or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including funds from
Hong Kong to the PRC), except for transfer of funds involving money laundering and criminal activities. See &#8220;Item 3. D. Risk Factors&#8212;Risks
Related to Doing Business in China&#8212;<i>To the extent cash or assets of our business, or of the PRC Operating Entities, is in PRC
or Hong Kong, such cash or assets may not be available to fund operations or for other use outside of the PRC or Hong Kong, due to interventions
in or the imposition of restrictions and limitations by the PRC government to the transfer of cash or assets.</i>&#8221;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the fiscal year 2022, 2021 and 2020, and as
of the date of this annual report, there were no dividends distributed between the holding company and its subsidiaries and consolidated
VIEs or to investors. Cash is transferred among our Company, our subsidiaries, and the VIE, in the following manners: (i) funds are transferred
to our WFOE from our Company as needed through Sentage HK, our Hong Kong subsidiary, in the form of capital contributions or shareholder
loans, as the case may be; (ii) funds may be paid by the VIE to WFOE, as service fees according to the VIE Agreements; (iii) dividends
or other distributions may be paid by WFOE, to our Company through Sentage HK; and (iv) WFOE and the VIE lend to and borrow from each
other from time to time for business operation purposes. &#160;As of the date of this annual report, cash transfers and transfers of other
assets between the Company, its subsidiaries, and the VIE, were as follows: For fiscal year 2021, the Company transferred all the net
IPO proceeds in the amount of $16.91 million to its subsidiary, Sentage HK. There was no cash or other assets transfer between the Company,
its subsidiaries, and the VIE during the fiscal years ended December 31, 2022 and 2021. As of the date of this annual report, the VIE
have not distributed any earnings or settled any amounts owed under the VIE Agreements, nor does it have any plan to distribute earnings
or settle amounts owed under the VIE Agreements in the foreseeable future.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 57; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Cayman Islands law, a Cayman Islands company
may pay a dividend on its shares out of either profit or share premium amount, provided that in no circumstances may a dividend be paid
if this would result in the company being unable to pay its debts due in the ordinary course of business. We intend to keep any future
earnings to finance the expansion of our business, and we do not anticipate that any cash dividends will be paid in the foreseeable future,
or any funds will be transferred from one entity to another on a regular basis. As such, we have not installed any cash management policies
that dictate how funds are transferred among Golden Sun Cayman, its subsidiaries, or investors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we determine to pay dividends on any of our
Ordinary Shares in the future, as a holding company, we will be dependent on receipt of funds from our Hong Kong subsidiary, Sentage HK.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Current PRC regulations permit Sentage WFOE to
pay dividends to Sentage HK only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and
regulations. In addition, each of our operating entities in China is required to set aside at least 10% of its after-tax profits each
year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of such entity in China is also
required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside,
if any, is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other ways, to increase
the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not
distributable as cash dividends except in the event of liquidation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC government also imposes controls on the
conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in
complying with the administrative requirements necessary to obtain and remit foreign currency for the payment of dividends from our profits,
if any. Furthermore, if our operating entities in the PRC incur debt on their own in the future, the instruments governing the debt may
restrict their ability to pay dividends or make other payments. If we or the PRC operating entities is unable to receive all of the revenue
from our operations, we may be unable to pay dividends on our Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cash dividends, if any, on our Ordinary Shares
will be paid in U.S. dollars. Sentage HK may be considered a non-resident enterprise for tax purposes, so that any dividends Sentage WFOE
pays to Sentage HK may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10%.
See &#8220;Material Income Tax Consideration&#8212;People&#8217;s Republic of China Enterprise Taxation.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 58; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In order for us to pay dividends to our shareholders,
we will rely on payments made from the Sentage Operating Companies to Sentage WFOE, pursuant to VIE Agreements between them, and the distribution
of such payments to Sentage HK as dividends from Sentage WFOE. Certain payments from the Sentage Operating Companies to Sentage WFOE are
subject to PRC taxes, including business taxes and value-added taxes. In addition, if any of the Sentage Operating Companies incurs debt
on their own behalves in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions
to us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Arrangement between Mainland China
and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the Double Tax Avoidance
Arrangement, the 10% withholding tax rate may be lowered to 5% if a Hong Kong resident enterprise owns no less than 25% of a PRC project.
The 5% withholding tax rate, however, does not automatically apply and certain requirements must be satisfied, including without limitation
that (a) the Hong Kong project must be the beneficial owner of the relevant dividends; and (b) the Hong Kong project must directly hold
no less than 25% share ownership in the PRC project during the 12 consecutive months preceding its receipt of the dividends. In current
practice, a Hong Kong project must obtain a tax resident certificate from the Hong Kong tax authority to apply for the 5% lower PRC withholding
tax rate. As the Hong Kong tax authority will issue such a tax resident certificate on a case-by-case basis, we cannot assure you that
we will be able to obtain the tax resident certificate from the relevant Hong Kong tax authority and enjoy the preferential withholding
tax rate of 5% under the Double Taxation Arrangement with respect to any dividends paid by Sentage WFOE to its immediate holding company,
Sentage HK. As of the date of this annual report, we have not applied for the tax resident certificate from the relevant Hong Kong tax
authority. Sentage HK intends to apply for the tax resident certificate if and when Sentage WFOE plans to declare and pay dividends to
Sentage HK. See &#8220;Item 3. Key Information&#8212;D. Risk Factors&#8212;Risks Related to Doing Business in China&#8212;<i>There are
significant uncertainties under the EIT Law relating to the withholding tax liabilities of Sentage WFOE, and dividends payable by Sentage
WFOE to our offshore subsidiaries may not qualify to enjoy certain treaty benefits</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Recent Regulatory Developments</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Recent regulatory developments on oversea-listing</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 6, 2021, the relevant PRC governmental
authorities made public the Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with the Law. These opinions
emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China-based
companies and proposed to take effective measures, such as promoting the construction of relevant regulatory systems to deal with the
risks and incidents faced by China-based overseas-listed companies. As these opinions are recently issued, official guidance and related
implementation rules have not been issued yet and the interpretation of these opinions remains unclear at this stage. See &#8220;Item
3. D. Risk Factors&#8212;Risks Related to Doing Business in China&#8212;<i>The &#8220;Opinions on Severely Cracking Down on Illegal Securities
Activities According to Law,&#8221; or the &#8220;Opinions,&#8221; recently issued by the General Office of the Central Committee of the
Communist Party of China and the General Office of the State Council may subject us to additional compliance requirement in the future.</i>&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 24, 2021, the China Securities Regulatory
Commission, or the CSRC, issued Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic
Companies (Draft for Comments) (the &#8220;Administration Provisions&#8221;), and the Provisions of the State Council on the Administration
of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments) (the &#8220;Measures&#8221;), of which the public
comment period ended on January 23, 2022. The Administration Provisions and Measures for overseas listings lay out specific requirements
for filing documents and include unified regulation management, strengthening regulatory coordination, and cross-border regulatory cooperation.
Domestic companies seeking to list abroad must carry out relevant security screening procedures if their businesses involve such supervision.
Companies endangering national security are among those off-limits for overseas listings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 59; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 17, 2023, the China Securities Regulatory
Commission (the &#8220;CSRC&#8221;) released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic
Companies (the &#8220;Trial Measures&#8221;), (&#12298;&#22659;&#20869;&#20225;&#19994;&#22659;&#22806;&#21457;&#34892;&#35777;&#21048;&#21644;&#19978;&#24066;&#31649;&#29702;&#35797;&#34892;&#21150;&#27861;&#12299;),
and five supporting guidelines (collectively, the &#8220;Overseas Listings Rules&#8221;), which has become effective on March 31, 2023.
On the same date of the issuance of the Overseas Listings Rules, the CSRC circulated No.1 to No.5 Supporting Guidance Rules, the Notes
on the Overseas Listings Rules, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises
and the relevant CSRC Answers to Reporter Questions on the official website of CSRC, or collectively, the Guidance Rules and Notice. The
Overseas Listings Rules, together with the Guidance Rules and Notice, reiterate the basic supervision principles as reflected in the Administration
Provisions and Measures by providing substantially the same requirements for filings of overseas offering and listing by domestic companies.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Overseas Listings Rules and the Guidance
Rules and Notice, domestic companies conducting overseas securities offering and listing activities, either in direct or indirect form,
shall complete filing procedures with the CSRC pursuant to the requirements of the Trial Measures within three working days following
its submission of initial public offerings or listing application. The companies that have already been listed on overseas stock exchanges
or have obtained the approval from overseas supervision administrations or stock exchanges for its offering and listing before March 31,
2023 and completed their overseas offering and listing prior to September 30, 2023 are not required to make immediate filings for its
listing yet need to make filings for subsequent offerings in accordance with the Overseas Listings Rules. The companies that have already
submitted an application for an initial public offering to overseas supervision administrations prior to the effective date of the Overseas
Listings Rules but have not yet obtained the approval from overseas supervision administrations or stock exchanges for the offering and
listing may arrange for the filing within a reasonable time period and should complete the filing procedure before such companies&#8217;
overseas issuance and listing. See &#8220;Item 3. D. Risk Factors&#8212;Risks Related to Doing Business in China&#8212;<i>The Chinese
government exerts substantial influence over the manner in which we must conduct our business, and may intervene or influence our operations
at any time, which could result in a material change in our operations, significantly limit or completely hinder our ability to offer
or continue to offer securities to investors, and cause the value of our Ordinary Shares to significantly decline or be worthless</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See &#8220;Item 3. D. Risk Factors&#8212;Risks
Related to Doing Business in China&#8212; <i>The Chinese government exerts substantial influence over the manner in which we must conduct
our business, and may intervene or influence our operations at any time, which could result in a material change in our operations, significantly
limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of our Ordinary Shares
to significantly decline or be worthless </i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this annual report, we and the
PRC operating entities have not received any formal inquiry, notice, warning, sanction, or any regulatory objection from the CSRC with
respect to our listing or subsequent offerings. As the Overseas Listings Rules were newly published and there exists uncertainty with
respect to the filing requirements and its implementation, if we are required to submit to the CRSC and complete the filing procedure
of our subsequent overseas public offerings, we cannot be sure that we will be able to complete such filings in a timely manner. Any failure
or perceived failure by us to comply with such filing requirements under the Overseas Listings Rules may result in forced corrections,
warnings and fines against us and could materially hinder our ability to offer or continue to offer our securities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 60; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Recent regulatory development of Cyberspace
Administration of China over data security</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 7, 2022, the CAC published the Measures
for the Security Assessment of Outbound Data Transfer (&#12298;&#25968;&#25454;&#20986;&#22659;&#23433;&#20840;&#35780;&#20272;&#21150;&#27861;&#12299;),
which effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People&#8217;s Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file to the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data to abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than
1 million individuals transfers personal information to abroad&#65307;(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or&#65307;(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As advised by our PRC counsel, Dentons, the operations
of the PRC operating entities and our continued listing has not be affected and are not subject to cybersecurity review by the CAC, given
that the PRC operating entities (i) possess personal data of fewer than one million individual clients; (ii) do not collect data that
affects or may affect national security in their business operations, as of the date of this annual report; and (iii) do not anticipate
that they will be collecting over one million users&#8217; personal information or data that affects or may affect national security in
the near future. For further details, see &#8220;Item 3. D. Risk Factors&#8212;Risks Related to Doing Business in China&#8212;<i>Recent
greater oversight by the Cyberspace Administration of China (&#8220;CAC&#8221;) over data security, particularly for companies seeking
to list on a foreign exchange, could adversely impact our business</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Selected Condensed Consolidated Financial Schedule
of Sentage Holdings Inc., its subsidiaries, and the VIEs</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following tables present selected condensed
consolidated financial data of Sentage Holdings Inc. and its subsidiaries and VIEs for the fiscal years ended December 31, 2022, 2021,
and 2020, and balance sheet data as of December 31, 2022, 2021 and 2020, which have been derived from our audited consolidated financial
statements for those years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>SELECTED CONDENSED CONSOLIDATED STATEMENTS
OF INCOME AND COMPREHENSIVE LOSS&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">USD</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Sentage<br/>
 Holdings<br/> Inc.</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">VIE and its<br/> Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Eliminations</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated<br/> Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%">Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">3,595,409</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">3,595,409</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net Income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,587,375</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,587,375</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Comprehensive Income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#12288;-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,624,368</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,624,368</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">USD</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Sentage<br/>
 Holdings<br/> Inc.</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">VIE and its<br/> Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Eliminations</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated<br/> Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%">Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">2,262,449</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">2,262,449</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net Income (loss)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,748,643</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(37,371</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">692,775</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,093,241</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Comprehensive Income (loss)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,748,643</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(36,328</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">844,511</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(940,461</td><td style="text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">USD</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Sentage<br/>
 Holdings<br/> Inc.</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">VIE and its<br/> Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Eliminations</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated<br/> Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%">Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">161,372</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">161,372&#12288;</span></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net Income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,470,635</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(130,766</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(960,506</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(2,561,907</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Comprehensive Income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,470,635</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(183,036</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(994,319</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(2,647,990</td><td style="text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 61; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>SELECTED CONDENSED CONSOLIDATED BALANCE SHEETS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; white-space: nowrap; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">USD</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Sentage<br/>
Holdings<br/>
Inc.</b></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">VIE and its<br/> Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Eliminations</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated<br/> Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 40%">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">10,145,841</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">637,546</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">10,783,387</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,611,082</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,844,391</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,526,409</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(12,779,725</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17,202,157</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,611,082</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,844,391</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,690,960</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(12,779,725</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17,366,708</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,208,643</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">10,111,084</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,003,752</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(12,779,725</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">543,754</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total shareholders&#8217; equity</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,402,439</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,733,307</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">687,208</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">16,822,954</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total liabilities and shareholders&#8217; equity</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,611,082</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,844,391</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,690,960</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(12,779,725</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17,366,708</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; white-space: nowrap; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">USD</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Sentage<br/> Holdings<br/> Inc.</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">VIE and its<br/> Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Eliminations</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated<br/> Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 40%">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">3,785,115</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">20,020</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">3,805,135</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,740,447</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,873,303</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,442,879</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(6,715,249</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,341,380</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,740,447</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,035,573</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,598,063</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(6,715,249</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,658,834</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,466,983</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,826,962</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,905,174</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(6,715,249</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">483,870</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total shareholders&#8217; equity</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,273,464</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,208,611</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(307,111</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,174,964</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total liabilities and shareholders&#8217; equity</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,740,447</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,035,573</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,598,063</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(6,715,249</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,658,834</td><td style="text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>SELECTED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.25in; padding-left: 0.25in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-indent: -0.25in; padding-left: 0.25in; font-weight: bold; font-style: italic">USD</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Sentage<br/> Holdings<br/> Inc.</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">VIE and its<br/> Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Eliminations</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated<br/> Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.25in; padding-left: 0.25in; width: 40%; text-align: left">Net cash used in operating activities</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">465,210</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">465,210</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.25in; padding-left: 0.25in; text-align: left">Net provided by (used in) investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.25in; padding-left: 0.25in; text-align: left">Net cash provided by financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(585,859</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(585,859</td><td style="text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">USD</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Sentage<br/>
 Holdings<br/>
 Inc.</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">VIE and its<br/> Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Eliminations</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated<br/> Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left">Net cash used in operating activities</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(1,815,919</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">1,433,255</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(382,664</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net used in investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5,500,000</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(19,977</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5,519,977</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Net cash provided by (used in) financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17,360,717</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(959,420</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">16,401,297</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">USD</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Sentage<br/> Holdings<br/> Inc.</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">VIE and its<br/> Subsidiaries</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Eliminations</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consolidated<br/> Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left">Net cash used in operating activities</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(6,291,604</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(371,005</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(6,662,609</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net provided by investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;&#160;&#160;-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(34,346</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(34,346</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net cash provided by financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(173,162</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(173,162</td><td style="text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 62; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Business</b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Through the Sentage Operating Companies, we are
a financial service provider that offers a range of financial services across consumer loan repayment and collection management, loan
recommendation, and prepaid payment network services in China. Leveraging a deep understanding of the client base, strategic partner relationships,
and valuation models and technologies, the Sentage Operating Companies are committed to working with the clients to understand their financial
needs and challenges and offering customized services to help them meet their respective objectives.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently report our operating revenue from
three main revenue streams, namely, (i) consumer loan repayment and collection management service, (ii) loan recommendation service,
and (iii) prepaid payment network service.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For fiscal years 2022, 2021 and 2020, our revenue
was $161,372, $2,262,449 and $3,595,409, respectively, and our net profit (loss) was $(2,561,907), ($835,897) and $2,180,076, respectively.
The declines of our revenue and increase in our net loss in fiscal year 2022 was due to the fact that we did not generate any revenue
from the consumer loan repayment and collection management service and loan recommendation service due to the impact of COVID-19.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The declines of our revenue and net profit in
fiscal year 2021 was mainly due to the fact that the outstanding servicing agreements under our consumer loan repayment and collection
management were fully completed in fiscal 2021 and revenues from this service were significantly reduced in 2021. Revenue from the consumer
loan repayment and collection management accounted for 29.9 %, 6.9%, and nil of the total revenue for the fiscal year ended December 31,
2020, 2021 and 2022, respectively. Revenue from the loan recommendation accounted for 58.1%, 52.1% and nil of the total revenue for the
fiscal year ended December 31, 2020, 2021 and 2022, respectively. Revenue from prepaid payment network service business accounted for
12%, 41% and 100% of the total revenue for the fiscal year ended December 31, 2020, 2021 and 2022, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the consumer loan repayment and collection
management business, due to the uncertainties caused by the COVID-19, our prospective business partners were not able to start new cooperation
with us and we were not able to generate any revenue for fiscal year 2022. For the loan recommendation services, which requires face-to-face
interaction with potential customers, the temporary lock down from April 2022 to June 2022 severely impacted our ability to generate
new business. Even after June 2022, due to the uncertainties caused by COVID-19, the demand from customers decreased sharply and the
we were not able to generate any revenue for fiscal year 2022. For the prepaid payment network services, the revenue in 2022 declined
sharply because decreased demand from customers due to the uncertainties caused by COVID-19. Although China relaxed the COVID-19 restrictions
at the end of 2022, because the COVID-19 has deeply affected businesses and economy in China from 2020 to 2022, the extent of any future
impact of COVID-19 on our operations remains highly uncertain and unpredictable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Consumer Loan Repayment and Collection Management
Service</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the fiscal years 2022, 2021 and 2020, revenue
generated from the Sentage Operating Companies&#8217; consumer loan repayment and collection management services was nil, US$156,062 and
US$1,074,734, respectively. Since the end of 2017, the Sentage Operating Companies have not charged any new fees for loan repayment and
collection management. All loan repayment and collection management engagements were fully completed by December 31, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies devised and implemented
a systematic repayment and collection management process adapted to each stage of a loan. Prior to loan delinquency, the Sentage Operating
Companies provided customers with services such as repayment record reconciliation and payment reminders and notices. Upon delinquency,
the Sentage Operating Companies&#8217; experienced in-house team worked on recovering past-due loans during the first three months of
delinquency through means that did not require face-to-face interaction. If delinquency exceeded three months, the Sentage Operating Companies
outsourced loan collection services to reputable and local licensed third-party loan collection agencies, whose performance was supervised
and evaluated by the Sentage Operating Companies under a monitoring system. Specifically, these third-party agencies collected past-due
loans through various collection efforts such as professional skip-tracing (i.e. the process of locating a borrower who cannot be found
at his or her place of residence or usual hangouts) and on-site visits. After the first six months of delinquency, if all the previous
efforts to recover past-due loans remained unsuccessful, and after having received the Sentage Operating Companies&#8217; customers&#8217;
express authorizations, the Sentage Operating Companies then engaged reputable third-party law firms and initiate judicial proceedings
against the delinquent borrower on behalf of the customers. As the Sentage Operating Companies exclusively relied upon third-party resources
for on-site visits, their in-house team was able to minimize potential physical confrontation with borrowers and effectively controlled
compliance-related risks. In addition, the Sentage Operating Companies coordinated and managed all client engagements and collected information
centrally through the Shanghai headquarters. Through the internal management system, the Sentage Operating Companies assigned and adjusted
repayment and collection tasks to in-house specialists and third-party collection agencies based on a variety of factors. The Sentage
Operating Companies believed this centralized management allowed them to streamline and standardize the payment and collection management
process, effectively monitor compliance levels, and increase collection efficiency.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 63; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For fiscal years 2022, 2021 and 2020, the total
amount repaid by borrowers and collected by the Sentage Operating Companies and third-party agencies reached RMB nil , RMB1.01million
(approximately US$ 0.16million), and RMB 2.16 million (approximately US$ 0.31 million), respectively. While the Sentage Operating Companies
offer services nationwide, they strategically focused on strengthening their presence in second-tier and third-tier Chinese cities where
they have observed a strong demand for consumer loans. The Sentage Operating Companies&#8217; existing loan repayment and collection management
engagements were fully completed by December 31, 2021. Those customers paid service fees for loan repayment and collection management
as part of the Sentage Operating Companies&#8217; service agreements that were entered into at the time of loan facilitation. Such prepayments
were recorded as a credit to a liability account for prepayments on the Sentage Operating Companies&#8217; balance sheet. As the Sentage
Operating Companies provided loan repayment and collection management services to specific customers clients, loan management and collection
management fees received from customers in advance were deferred and recognized as revenue over time when designated services were performed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All loan repayment and collection management engagements
were fully completed by December 31, 2021. With a team of experienced loan management professionals, the Sentage Operating Companies plan
to continue the consumer loan repayment and collection management business by expanding the client base and collaborating with third-party
financial institutions. The Sentage Operating Companies have been actively seeking collaboration with third-party financial institutions
to further the consumer loan repayment and collection management services. However, there can be no guarantee that the Sentage Operating
Companies will be successful in their efforts to continue their consumer loan repayment and collection management business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Loan Recommendation Service</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As part of the strategy to diversify and expand
product and service offering, the Sentage Operating Companies started the loan recommendation business in June 2019. Leveraging their
advanced credit assessment and risk management capabilities, the Sentage Operating Companies carefully evaluate applications and supporting
materials submitted by individual borrowers and recommend those borrowers the Sentage Operating Companies deem qualified to funding partners,
who in return directly provide funds to borrowers recommended by them. The Sentage Operating Companies endeavor to provide a transparent,
seamless, and convenient recommendation process for both borrowers and funding partners, while safeguarding their respective interests.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies provide services,
including processing paperwork related to borrowers&#8217; applications, evaluating credentials of borrower applicants, and appraising
properties to be collateralized through data analysis and on-site inspection. For borrowers the Sentage Operating Companies acquired through
business contacts, the Sentage Operating Companies do not directly charge them any service fee. Instead, referral partners first charge
borrowers service fees for their referrals. The Sentage Operating Companies then charge the referral partners a commission pursuant to
the service agreement between them and the referral partners. The Sentage Operating Companies did not provide new services in fiscal year
2022, due to the impact of COVID-19.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 64; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies only recommend
borrowers who are able to collateralize properties that have been evaluated and approved by a team of experienced in-house appraisers.
This asset-driven risk management approach is designed to minimize borrowers&#8217; default risk, mitigate the impact of a default, and
promote sustainable returns for the funding partners. Specifically, the Sentage Operating Companies require a current real estate appraisal
on all properties that borrowers intend to collateralize. Leveraging the appraisal model and technologies, the experienced in-house appraisers
first undertake a rigorous due diligence process involving intensive data collection, review, and analysis to ensure that the Sentage
Operating Companies understand the state of the market and the risk-reward profile of the property. The Sentage Operating Companies then
conduct a complete visual inspection of the interior and exterior of the property, through which they examine conditions that might adversely
affect the property&#8217;s value. After consolidating information collected through various channels, the in-house appraisers compare
the property with comparable sales based on a set of factors selected to assess specific features of the property and its market conditions..</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies continuously work
on strengthening the cooperation with funding partners and organically expanding the network of funding partners. For fiscal year 2022,
and as of April 22, 2023, due to the ongoing impact of the COVID-19 pandemic, the Sentage Operating Companies did not do any business
with the funding partners. The Sentage Operating Companies provide the funding partners access to a high-quality borrower applicants base,
as well as enhanced credit assessment and risk management capabilities. The Sentage Operating Companies value proposition is further magnified
by the repeat lending and cross-selling opportunities the Sentage Operating Companies provide to them. Once borrowers are connected to
funding partners through services, funding partners will be able to extend more loans and sell other financial products to such borrowers.
The Sentage Operating Companies acquire the funding partners through word-of-mouth referrals and referrals made by the shareholders and
management team members, many of whom have established extensive connections in the financial industry based on their respective years
of professional experience. While remaining subject to regulations on loan recommendation services, the business model does not subject
the Sentage Operating Companies to the relevant local regulatory requirements that are applicable to online lending platforms, since the
Sentage Operating Companies do not provide online financing intermediary services. The Sentage Operating Companies believe the strengthened
cooperation with funding partners will permit them to sustainably grow the business and mitigate any negative impact brought by the continuing
challenging regulatory environment in China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Borrowers may be drawn to the Sentage Operating
Companies because of the convenient access to various mortgage products offered by funding partners, a transparent, easily navigable recommendation
process, and a client-centric service approach aiming to understand borrowers&#8217; specific financial needs and match them with mortgage
products suitable to their current situation. The number of borrowers who have used the Sentage Operating Companies&#8217; recommendation
services has grown rapidly over time through third-party and word-of-mouth referrals. For fiscal year 2020, the funding partners approved
loans to borrowers recommended by the Sentage Operating Companies in the aggregate amount of RMB744.269 million (approximately US$107.91
million) and the Sentage Operating Companies earned $2,087,717 recommendation service revenue. For fiscal year 2021, the funding partners
approved loans to borrowers recommended by the Sentage Operating Companies in the aggregate amount of RMB 256.85million (approximately
US$39.82 million) and the Sentage Operating Companies earned $1,177,822 in recommendation service revenue. For fiscal year 2022, the Sentage
Operating Companies earned nil recommendation service revenue due to that the Sentage Operating Companies were not able to engage new
customers, which process required face-to-face interactions with customers, in the first half of 2022 (the peak season for this type of
business). After June 2022, the demand from customers decreased sharply due to the continued uncertainties caused by COVID-19, resulting
in nil in revenues for fiscal year 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 65; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Prepaid Payment Network Service</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies started providing
prepaid payment network services in August 2019, offering seamless, convenient, and reliable payment services to merchants across different
industries. Specifically, the Sentage Operating Companies offer prepaid cards to individual consumers who, after purchasing such prepaid
cards from the Sentage Operating Companies, will be able to buy goods and services offered by the Sentage Operating Companies&#8217; merchant
customers with their prepaid cards and recharge such cards online. The proceeds generated from the actual sales of the prepaid card are
deposited into an escrow account designated and monitored by the PBOC. Leveraging the partnership with NetsUnion Clearing Corporation
(&#8220;NetsUnion&#8221;) (i.e. the only bank card clearing house and the largest card payment organization offering mobile and online
payment services in China), the Sentage Operating Companies prepaid payment network services enable qualified merchants selected by the
Sentage Operating Companies after rigorous internal review to accept prepaid-card payments using traditional payment terminals. The growing
prepaid payment service business enables the Sentage Operating Companies to develop a deep understanding of customers&#8217; needs and
will allow us to provide merchants with continuously improving services and technologies. During fiscal year 2020, the revenue generated
from the payment services consisted of technology consulting and support fees and amounted to US$432,958. During fiscal year 2021, the
revenue generated from the payment services consisted of technology consulting and support fees and amounted to US$928,565. During fiscal
year 2022, the revenue generated from the payment services consisted of technology consulting and support fees and amounted to US$161,372,
which decrease was due to decreased demand due to the uncertainties of COVID-19. As of April 22, 2023, the Sentage Operating Companies
have engaged a total of 11 merchant customers for the prepaid network payment business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For merchant customers who need payment-related
technical consulting and support, the Sentage Operating Companies charge service fees for designing tailored payment solutions, interfacing
their internal systems with the Sentage Operating Companies&#8217; prepaid card payment system, and providing their staff with relevant
operation training. Depending on the estimated annual transaction amount agreed by the Sentage Operating Companies and the particular
merchant customer, the technology consulting and support fee ranges from RMB100,000 (approximately US$14,474) to RMB500,000 (approximately
US$72,370). For merchant customers who need prepaid card payment services, the Sentage Operating Companies charge fees for services, including,
but not limited to, collecting and processing information necessary for prepaid card issuance and authorizing transaction requests after
verifying transaction information. The prepaid card payment service fee is equal to either (i) 0.3% to 0.5% of each transaction amount
or (ii) 0.2% of the estimated annual transaction amount.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Merchant customers choose the Sentage Operating
Companies because they are a licensed prepaid card issuer capable of offering multipurpose prepaid cards and a licensed payment service
provider. In order to issue multipurpose prepaid cards, which can be used to purchase goods and services from a diverse group of merchants
across industries and regions, and provide related payment services, a service provider must obtain a third-party payment license that
allows such activities. As a result of the tightened control imposed by the PBOC over payment licenses in recent years, it has become
much harder to obtain such licenses from relevant regulatory bodies in China. A license applicant must undergo a time-consuming application
process, be able to pay an expensive application fee, and satisfy stringent standards adopted by the regulatory bodies. In light of the
strong entry barriers, the Sentage Operating Companies&#8217; payment license is a unique asset that distinguishes us from competitors.
Without such license, a prepaid issuer can issue only single-purpose prepaid cards, which is limited to purchasing goods and services
provided by the card issuer or companies related to the card issuer.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies&#8217; proprietary
technology systems are critical to the growth of the prepaid payment network business, allowing the Operating Companies to process a large
volume of transactions, achieve high level of stability, promote workflow automation, and build an easily scalable business model. Supported
by a set of integrated databases, the Sentage Operating Companies&#8217; information system can efficiently process and analyze a high
volume of data, securely store the data on a cloud server, and provide each of the departments with convenient access to data. The Sentage
Operating Companies&#8217; account management system allows the Sentage Operating Companies to consolidate and manage all the customers&#8217;
account information and track the balances of customer accounts in an efficient manner, promoting more transparent management of fund
movements. The Sentage Operating Companies regularly update the systems to improve their reliability, efficiency and compatibility with
the services and evolving regulatory requirements. We believe that the proprietary technology systems will enable the Sentage Operating
Companies to build a highly automated platform that is compatible with mainstream payment methods and channels across different industries.
As of the date of this annual report, the Sentage Operating Companies&#8217; systems have not encountered any major system interruption.&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 66; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Loan Repayment and Collection Management Service</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The Sentage Operating Companies&#8217; Repayment
and Collection Management Service </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies provided consumer
loan repayment and collection management services to customers by leveraging the in-house team&#8217;s years of industry knowledge, strategic
partnerships with third parties, standard and streamlined repayment and collection management process, centralized management, and proprietary
IT infrastructure. The Sentage Operating Companies&#8217; loan repayment and collection management engagements were completed by the end
of 2021. For the fiscal years 2020, 2021, and 2022 revenue generated from the consumer loan repayment and collection management services
was US$1,074,734, US$156,062, and nil, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Repayment and Collection Management Process</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, when a borrower does not make a payment
as scheduled, the Sentage Operating Companies consider the loan as being delinquent.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to loan delinquency, the Sentage Operating
Companies provide customers with services such as repayment record reconciliation and payment reminders and notices. Specifically, the
Sentage Operating Companies assist borrowers to fulfill their loan obligations according to an agreed-upon schedule through daily management
and monitoring of loan repayments and provide customers with after-lending services to receive investment returns throughout the life
of loan. The Sentage Operating Companies also send repayment reminders through SMSs by their service representatives before the due date
for each scheduled loan repayment. Borrowers may elect to make full prepayments prior to the date for the scheduled repayment. Repayments
are made directly to customers. The Sentage Operating Companies are not involved in the process of prepayment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon delinquency, the Sentage Operating Companies
integrate internal and external resources to implement a systematic repayment and collection management process adapted to each stage
of a loan. When a loan becomes delinquent, the service representatives may contact the borrower on the same day to request an immediate
payment or negotiate a repayment date. The Sentage Operating Companies utilize the following strategies to collect loans based on the
severity of the delinquency:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 0.25in">&#160;</td>
    <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Within one to seven days past due, the Sentage Operating Companies will contact the defaulting borrower by phone to understand reasons for the nonpayment and inform them of consequences of past-due repayments.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 0.25in">&#160;</td>
    <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If the delinquency exceeds seven days, the borrower cannot be located, has refused to make repayment, or otherwise failed to cooperate with the Sentage Operating Companies, the delinquent loan will be sent to the in-house team for loan collection.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 0.25in">&#160;</td>
    <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the first three months of delinquency, the Sentage Operating Companies utilize the in-house team to recover the delinquent loan using professional skip tracing, phone calls, voice messages, text messages, e-mails, etc.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 0.25in">&#160;</td>
    <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">After the first three months of delinquency, the Sentage Operating Companies engage professional, licensed third-party reputable collection agencies who will be responsible for collecting the delinquent loan. In addition to the methods utilized by the in-house team, they also pay on-site visits to borrowers.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 0.25in">&#160;</td>
    <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">After the first six months of delinquency, the Sentage Operating Companies engage reputable third-party law firms and initiate judicial proceedings against the borrower on behalf of the customer after obtaining his or her authorization. The Sentage Operating Companies provide a holistic range of services across all phases of a judicial proceeding to assist the customer with navigating the process, such as serving as an intermediary between the customer and the legal team and explaining legal documents to the customer in a clear and concise manner.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 0.25in">&#160;</td>
    <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During any stage as described above, borrowers directly make repayments to customers. The Sentage Operating Companies are not involved in the process of repayment.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 67; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->61<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Quality Assurance</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that quality assurance is critical
to the success of our business. To ensure in-house specialists and third-party agencies consistently provide quality services that meet
the standards, the Sentage Operating Companies have designed and adopted the following set of policies and procedures to incentive them,
help them improve based on their past performance, and manage their workload based on their experience and expertise.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Daily inspection.</i>&#160;The department leaders of each team perform daily spot checks on several collection cases for potential compliance violations. The Sentage Operating Companies&#8217; operating portal records all telephone conversations between the in-house specialists and borrowers, and the system transcribes some of these recordings into text for the quality assurance team to internally review in accordance with the quality assurance protocol. The Sentage Operating Companies operating portal also conducts daily keyword searches against all the work logs generated that day for potential violations. If a violation is identified, the Sentage Operating Companies issue a disciplinary action against the specialist. The Sentage Operating Companies&#8217; disciplinary actions vary from warning to termination, which are issued depending on the seriousness of the violation. Furthermore, the Sentage Operating Companies analyze work logs and telephone recordings collected from daily inspections for performance trend and non-compliant activities and train the Sentage Operating Companies&#8217; specialists based on these findings in order to improve their performance.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Performance Evaluation and Review. </i>Sentage Operating Companies have employed a monitoring system that monitors the in-house specialists and third-party agencies&#8217; performances at different stages of the loan repayment and collection management process and evaluates them based on a set of key performance indicators, or KPIs. The Sentage Operating Companies use KPIs to assess in-house specialists and third-party agencies&#8217; service quality, collection efficiency, and compliance with relevant laws, regulations and internal procedures. The Sentage Operating Companies&#8217; quality assurance team continuously monitors the performance and compliance of the&#160;in-house specialists and third-party agencies to ensure that they employ appropriate collection methods to achieve better collection performance through KPI tracking, phone call recording assessment, complaint call feedback, and internal training and examination.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Performance-based compensation structure</i>. The Sentage Operating Companies require the in-house specialists and third-party agencies to meet the minimum performance standards predetermined by their management team and tie their performance to compensation structures.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Case assignment.</i> The Sentage Operating Companies&#8217; performance monitoring system analyzes the past performance of each in-house specialist to aid the case assignment process. For example, potentially contentious cases that are likely to cause complaints are assigned to more experienced specialists, instead of those with less experience or have a record of compliance violations, as a way for the Sentage Operating Companies to manage and reduce the noncompliant risk.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies require all the
employees to strictly comply with compliance policies and laws and regulations. For example, the in-house specialists are not allowed
to contact a borrower for more than five times a day; no contact shall be made before 8&#160;a.m. or after 10&#160;p.m.; and unless authorized
by the customers, the in-house specialists are not allowed to make proposal to reduce the loan value as a compromise. If any employee
violates such requirements, the Sentage Operating Companies will issue certain penalties that range from warnings to termination of employment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, the Sentage Operating Companies require
the in-house specialists to contact borrowers only through the means allowed under standard procedures. The in-house specialists are not
allowed to have face-to-face contact with any borrower. When contacting borrowers over phone, in-house specialists are required to make
such calls only from operating center landline or encrypted mobile phones issued by the Sentage Operating Companies, which record all
of the telephone conversations and are subject to the system&#8217;s real-time automatic monitoring.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies carefully select
third-party agencies by performing thorough due diligence through which the Sentage Operating Companies review their corporate history,
past business activities, professional licenses necessary for their operation, and internal compliance policies and measures, etc. In
addition to constantly monitor and evaluate third-party agencies&#8217; activities through means described in &#8220;Performance Evaluation
and Review,&#8221; the Sentage Operating Companies establish guidelines and limitations on their collection actions and take measures
to enforce those guidelines and limitations. Specifically, the Sentage Operating Companies regularly pay on-site visits to ensure that
the collection actions of third-party agencies are compliant and the customers&#8217; information is properly stored and managed. Furthermore,
each third-party law firm with whom the Sentage Operating Companies collaborate is selected from an accredited industry law firm list,
has compatible information technology systems, and meet certain other specific criteria.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 68; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->62<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Compliance</i></b></span></p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe the Sentage Operating Companies&#8217;
core competence lies in the ability to provide quality customer service and compliance with applicable laws and regulations. The Sentage
Operating Companies have undertaken the following measures to ensure compliance.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Compliance Policies</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies have adopted the
following compliance policies:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Employee Code of Conduct</i>.&#160;The Sentage Operating Companies&#8217; efforts to maintain compliant operations starts with the training and continuing education of the employees. The Employee Code of Conduct sets forth the basic code of ethics, proper business conduct and obligations to customers. In particular, the code emphasizes the importance of keeping proprietary information confidential and maintaining a high level of professionalism in the performance of work functions, and have strict guidelines that prohibit certain actions such as selling borrower information, impersonating government officials, threat of violence, and use of vulgar or inappropriate language. In addition, the code specifies the reward and disciplinary actions for employees abiding by or violating this Employee Code of Conduct and other company regulations.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Quality Assurance Management Plan</i>. The goal of implementing the Quality Assurance Management Plan is to standardize the repayment and collection management operations, minimize risks related to repayment and collection management services, and ensure compliance with government and internal regulations. The plan sets forth definitions of violating conduct, including improper management of private and personal information, procedural violations, and fraudulent conduct and violations specific to loan repayment and collection management. The plan also includes corresponding penalties for employee violations and subsequent remediation plans to minimize the damage and prevent future incidents of similar violations. The plan consists of (i)&#160;Telephone Record Inspection Regulation; (ii)&#160;Compliance Management Regulation; (iii)&#160;Information Security Regulation; (iv)&#160;Work Log Inspection Regulation; and (v)&#160;Trade Secret Protection Regulation.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Compliance Structure</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to implementing the Sentage Operating
Companies&#8217; compliance policies to regulate employee conduct, the Sentage Operating Companies also established an internal committee
to monitor employee conduct, investigate possible violations, and ensure policy adherence. The committee is responsible for monitoring
employee activities daily to observe and detect possible violations and investigating possible violations after the violations have been
reported to the management team of the company. The committee is also in charge of communicating with borrowers who raise disputes or
complaints in person, if necessary, in order to explain and appease the situation. The Sentage Operating Companies engage third-party
legal counsels, who assist the Sentage Operating Companies with regulation and policy interpretation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Compliance Management</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If borrowers find the Sentage Operating Companies&#8217;
repayment and collection methods and the conduct of the Sentage Operating Companies&#8217; in-house specialists unacceptable and believe
that such methods and conduct infringe upon their rights, they may initiate lawsuits against us alleging improper conduct and violations
of law. As of the date of the annual report, the Sentage Operating Companies have not been involved in any lawsuit initiated by customers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a customer determines that the Sentage Operating
Companies failed to comply with the Sentage Operating Companies&#8217; quality assurance obligations under the contract between the Sentage
Operating Companies and such customer, such customer may penalize the Sentage Operating Companies monetarily or rescind the contract if
the breach is severe. As of the date of the annual report, none of the customers to whom the Sentage Operating Companies have provided
services has penalized us monetarily or rescinded contracts with the Sentage Operating Companies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 69; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->63<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies take allegations
seriously and have developed a systematic approach to avoid potential allegations. If an in-house specialist believes that a borrower
is likely to initiate a lawsuit based on his/her interaction with the borrower, he/she is required to report the case to the respective
quality assurance team. The quality assurance personnel then contact the borrower directly and seeks to address the borrower&#8217;s concern
in order to reduce the likelihood of a lawsuit. Once notified of the potential lawsuit, the management team will immediately conduct a
preliminary investigation to verify the allegations. If the allegations are not substantiated and the customer is notified of the findings,
the customer may attempt to communicate with the borrower directly. If the allegations are substantiated, the Sentage Operating Companies
and the customers will both attempt to communicate with the borrower. Based on the information the Sentage Operating Companies receive
from the borrower, the Sentage Operating Companies may undertake certain actions to rectify the problem, including to compensate the borrower
after negotiation with the customers, and/or to demote or terminate the responsible in-house specialist in accordance with the Sentage
Operating Companies&#8217; compliance policies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In an effort to avoid potential allegations, the
Sentage Operating Companies carefully assign cases to the in-house specialists, monitor employees&#8217; conduct according to the compliance
policies during the repayment and collection management process, and implement proper training to continuously educate the employees about
the Sentage Operating Companies&#8217; compliance policies and government rules and regulations. For details on the effects of the in-house
specialists&#8217; conduct on business, see &#8220;Item 3. Key Information&#8212;D. Risk Factors&#8212;Risks Related to Our Business and
Industries&#8212;<i>Our employees and collection specialists of third-party agencies may violate the Sentage Operating Companies&#8217;
compliance policies and government rules and regulations during the repayment and collection management process</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>In-House Team and Third-Party Business Partners
</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To maximize the effectiveness of the Sentage Operating
Companies&#8217; loan repayment and collection management efforts, the in-house team, which includes service representatives and collection
specialists, is organized based on levels of seniority and specific areas of expertise. The in-house team members are organized by work
groups based on client coverage, with each work group under the supervision of a senior team member, who in turn report to a single senior
manager responsible for the work group. As the in-house team members are assigned to different stages of the repayment and collection
management process, they are able to familiarize with clients&#8217; specific needs and requirements, enhance operational efficiency and
service quality, and become specialized experts in their signed stages.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If delinquency exceeds three months, the Sentage
Operating Companies outsource loan collection services to reputable and local licensed third-party loan collection agencies, whose performance
is supervised and evaluated by the Sentage Operating Companies under a monitoring system. Specifically, these third-party agencies collect
past-due loans through various collection efforts such as professional skip-tracing and on-site visits based on specific guidelines established
by the Sentage Operating Companies&#8217; management team and set forth in a third-party service agreement. After the first six months
of delinquency, if all the previous efforts to recover past-due loans remain unsuccessful, and after having received the customers&#8217;
express authorizations, the Sentage Operating Companies then engage reputable third-party law firms and initiate judicial proceedings
against the delinquent borrower on behalf of the customers. Once the Sentage Operating Companies start their collaboration with a collection
agency or a law firm, their management actively monitors and reviews their performance and service quality on an ongoing basis. The Sentage
Operating Companies&#8217; management received analyses, including collection activities and litigation progress, from the in-house team
to evaluate the results of the efforts of the collection agency or the law firm. Based on their internal guidelines, the Sentage Operating
Companies&#8217; management may move certain loans from one third-party agency to another if it anticipates that this will result in an
increase in collection. For details of their approaches to quality assurance, see &#8220;&#8212;Quality Assurance.&#8221;&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this annual report, the Sentage
Operating Companies partnered with 5 third-party collection agencies and 7 law firms. The Sentage Operating Companies entered into standard
service agreements with the collection agencies and law firms, pursuant to which the Sentage Operating Companies are obligated to pay
service fees to them after they have satisfied their performance obligations. A customer is not responsible for the service fees payable
to third-party collection agencies and law firms. The actual loan amount a customer will receive at the end of the repayment and collection
process is the entire repaid and collected loan amount.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Customers, Loans, and Services Fee </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The existing loan repayment and collection management
engagements were completed by the end of 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With a team of experienced loan management professionals,
the Company plans to continue its consumer loan repayment and collection management business by expanding its client base and collaborating
with third-party financial institutions. As of the date of the annual report, although the Sentage Operating Companies are in active conversation
with a number of prospective customers, the Sentage Operating Companies have not secured a new source of revenue to replace the loss of
the Sentage Operating Companies&#8217; current engagements. The Sentage Operating Companies plan to charge prospective clients on a commission
basis. The Sentage Operating Companies believe the Sentage Operating Companies&#8217; proven track record, industry reputation, integrated
repayment and collection management approach, and centralized management sets solid foundation for the Sentage Operating Companies to
develop relationships with prospective clients. However, the Sentage Operating Companies cannot guarantee the success of such business
plan.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 70; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->64<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><b>Loan Recommendation Service</b></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Business Model and Recommendation Process</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As part of the strategy to diversify and expand
the product and service offerings, the Sentage Operating Companies started the loan recommendation service in June 2019. Leveraging the
advanced credit assessment and risk management capabilities, the Sentage Operating Companies carefully evaluate applications and supporting
materials submitted by individual borrowers and recommend those borrowers deemed qualified to funding partners, who in return directly
provide funds to borrowers recommended by the Sentage Operating Companies. The Sentage Operating Companies endeavor to provide a transparent,
seamless, and convenient recommendation process for both borrowers and funding partners, while safeguarding their respective interests.
During the period from the Sentage Operating Companies&#8217; business launch to December 31, 2019, the Sentage Operating Companies steadily
expanded the scale of the Sentage Operating Companies&#8217; loan recommendation business and reached US$260,388 in revenue. For the fiscal
year 2020, the Sentage Operating Companies&#8217; funding partners had approved loans to borrowers recommended by the Sentage Operating
Companies in the aggregate amount of RMB744.269 million (approximately US$107.91 million) and the Sentage Operating Companies earned $2,087,717
recommendation service revenue. For the fiscal year 2021, the Sentage Operating Companies&#8217; funding partners had approved loans to
borrowers recommended by the Sentage Operating Companies in the aggregate amount of RMB256.85million (approximately US$39.82million) and
the Sentage Operating Companies earned $1,177,822 recommendation service revenue. For the fiscal year 2022, the Sentage Operating Companies&#8217;
funding partners had approved loans to borrowers recommended by the Sentage Operating Companies in the aggregate amount of nil and the
Sentage Operating Companies earned nil recommendation service revenue.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The length of the recommendation process from
reviewing a borrower application to making a loan recommendation is typically completed within five business days. Once a prospective
borrower submits their application to the Sentage Operating Companies, the Sentage Operating Companies adopt a rigorous selection process
to assess their qualifications and minimize the borrower&#8217;s default risk, use an asset-driven, disciplined risk management approach
to minimize the borrower&#8217;s default risk and mitigate the impact of the borrower&#8217;s default. After completing the Sentage Operating
Companies&#8217; review, the Sentage Operating Companies recommend qualified borrowers directly to the Sentage Operating Companies&#8217;
funding partners. For details, refer to &#8220;&#8212;<i>Step 3: Loan Recommendation</i>&#8221; and &#8220;&#8212;<i>Users and Partners</i>&#8212;<i>Financial
Institutional Partners</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The typical borrowing cost payable by borrowers
includes (i) interest payable to the funding partners; (ii) service fee charged by us or third-party referral partners, (iii) prepayment
fee, if applicable, and (iv) penalty fee for late payment, if applicable. Subject to changes made by the Sentage Operating Companies&#8217;
funding partners, principal and interests are usually repaid on a monthly basis. Funding partners approve the prepayments and set the
rate of repayment fees. Borrowers are subject to penalty fees for late payment. Repayment fees and penalty fees are directly paid to the
Sentage Operating Companies&#8217; funding partners.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following diagram illustrates the transaction
process through which the Sentage Operating Companies offer loan recommendation services:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img alt="" src="image_001.jpg"/>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 71; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->65<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Step 1: Screening </i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Either through business contacts or word-of-mouth
referral, a potential borrower applicant with needs for a mortgage may contact us over the phone and through email. A member of the Sentage
Operating Companies&#8217; credit assessment team will present an overview of mortgage products available, recommendation procedures,
and assessment criteria and approval standards, learn about the borrower&#8217;s background, and briefly discuss whether his or her financing
needs can be met with the mortgage products available.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After the initial screening, the credit assessment
team will either decline or allow the applicant to apply based on available information. At this stage, approximately 30% of loan recommendation
applications are being rejected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Step 2: Application</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Borrower applicants who passed the preliminary
screening will need to fill out the application forms at the Sentage Operating Companies&#8217; headquarters in Shanghai City, China and
provide the Sentage Operating Companies with basic information, including but not limited to identification documents and other requested
personal information, such as PRC ID card details, a mobile phone number, educational level, information related to employment status,
and bank account details. Because only applicants who are able to collateralize qualified properties are considered, the Sentage Operating
Companies require them to submit a copy of ownership certificate at this stage. The prospective borrower will also be guided to authorize
the Sentage Operating Companies to gain access to their credit history and other information from external sources. For more details on
the information the Sentage Operating Companies collect from potential borrowers, see &#8220;<i>&#8212;</i>Credit Assessment and Risk
Management&#8212;Data Collection and Verification.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After reviewing a borrower applicant&#8217; materials,
the credit assessment team will determine if the borrower applicant qualifies under the internal review guidelines. The Sentage Operating
Companies&#8217; team will either decline or further process the loan recommendation application. At this stage, the Sentage Operating
Companies typically decline approximately 30% of all borrower applications.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Step 3: Credit Assessment and Risk Management
</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies conduct credit
assessments for those applicants whom the Sentage Operating Companies have selected after the preliminary review. The rigorous, comprehensive
review process involves information collection, verification, and analysis through various sources, as well as a multidimensional real
estate appraisal. Specifically, the credit assessment team evaluates the applicant&#8217;s credit history, liquidity, and other criteria
to develop a borrower profile that is measured against the internal review guidelines and measures. Additionally, they analyze title reports,
credit reports, real estate holdings, disclosures, and legal reviews to ensure that the applicant is deemed credit worthy. The Sentage
Operating Companies pay extra attention to evaluating the value, conditions, risks, and the market of the property the applicant is able
to collateralize. For an applicant to receive the Sentage Operating Companies&#8217; recommendation, the Sentage Operating Companies require
that the appointed in-house appraiser and risk-management team both recommend his or her property as qualified collateral in their opinion
and report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After the review, the Sentage Operating Companies&#8217;
credit assessment team may approve or decline the borrower application. Borrower applicants are notified of the results, and successful
applicants proceed to the loan recommendation stage. At this stage, approximately 10% to 15% of all loan recommendation applications submitted
were rejected. For details of the credit assessment process, see &#8220;&#8212;<i>Credit Assessment and Risk Management</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Step 4: <i>Loan Recommendation </i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies recommend qualified
borrowers directly to funding partners. The funding partners, after completing their internal risk assessment and loan approval procedures,
make the final credit decisions and directly fund borrowers with mortgage suitable for borrower&#8217;s financial situation. For fiscal
years 2020, 2021 and 2022, approximately 90%, 100% and nil borrowers we recommended were accepted by the funding partners.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Credit Assessment and Risk Management</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies have devised and
implemented a systematic credit assessment model and an asset-driven, disciplined risk management approach to minimize a borrower&#8217;s
default risk and mitigate the impact of default. Specifically, the Sentage Operating Companies&#8217; assessment model and risk management
capabilities not only enable us to select high-quality borrowers whose financial conditions and personal background meet the Sentage Operating
Companies selection criteria, but also protect the funding partners against lending more than they might be able to recover in the case
of default. The Sentage Operating Companies apply the same disciplined review process to all types of loan recommendation applications.
The Sentage Operating Companies&#8217; asset-driven risk management philosophy encompasses property-level due diligence, including ownership
certificate and related document review, local market liquidity analysis, trend assessment, and a rigorous appraisal process. In addition,
the Sentage Operating Companies perform individual borrower due diligence, including personal information review and verification. We
believe the ability to access, process, and analyze an extensive amount of public and proprietary information regarding the borrower and
their collateral offers the Sentage Operating Companies a differentiated perspective and risk management ability. The Sentage Operating
Companies&#8217; mission is to provide the best-in-class credit assessment and risk management, all within a streamlined, transparent,
and compliant workflow process.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Master Review Policy</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies operate under
a documented master review policy, which outlines the standard credit assessment guidelines and risk management procedures. The guidelines
and procedures were developed, and are continually reviewed, by the senior management team comprised of individuals with over 15 years
of experience managing real estate loans. The Sentage Operating Companies revise these guidelines and procedures from time to time based
on mortgage performance feedback provided by the funding partners and as market conditions change. We believe the guidelines and procedures
are key differentiators compared to our peers, as they facilitate both speed and consistency of execution.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 72; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->66<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Information Collection, Verification, and Fraud
Detection</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies utilize a proprietary
information system to store and process comprehensive information gathered through various sources, including the database, government
and Internet sources, and third-party data providers, supplemented by the manual input of data collected through on-site inspections and
other means of offline verification.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies collect information
about borrowers, which typically include age, education level, marital status, employment, credit history, and bank transaction history.
For information the Sentage Operating Companies collect for real estate appraisal, refer to &#8220;<i>&#8212;Real Estate Appraisal and
Review.</i>&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies make every effort
to ensure the accuracy and reliability of the information the Sentage Operating Companies collect, and to safeguard the privacy of such
information. For example, the Sentage Operating Companies collaborate with third parties to verify the applicant&#8217;s identity by confirming
his or her name, ID number and mobile number. The Sentage Operating Companies also cross examine data they collect from different outside
sources to verify data provided by applicants. The Sentage Operating Companies require all the applicants to provide us a letter of guaranty
which guarantees the authenticity of all the information provided by them. For applicants who intend to use a mortgage to finance their
businesses, the Sentage Operating Companies verify their loan purposes by requiring them to submit contracts and supporting documents.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies combat fraud through
advanced analytical methods, based on the information the Sentage Operating Companies collect, as well as working with the third-party
data providers to access centralized databases of confirmed fraud cases, which serves as a critical and highly effective cross check of
their own analyses. In addition, to effectively combat against fraudulent activities, the Sentage Operating Companies have adopted internal
policies that prohibit the employees from facilitating fraudulent activities with borrowers or any other third-party.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Real Estate Appraisal and Review</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foundation of the Sentage Operating Companies&#8217;
risk management is real estate appraisal. The Sentage Operating Companies require a current real estate appraisal on all properties that
borrowers intend to collateralize.&#160;The valuation process is led by the in-house appraisers who have received rigorous training and
have years of experience evaluating a wide range of commercial and residential properties in Shanghai City, China. By leveraging their
appraisal expertise and extensive knowledge of the local market, the Sentage Operating Companies are able to factor different risks associated
with the properties into the appraisal process. Such process enables borrowers to obtain the loan amount that accurately corresponds to
the value of their properties and properly reflects the local market liquidity.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The in-house appraisers first undertake a rigorous
due diligence process involving intensive data collection, review, and analysis, to ensure that they understand the state of the market
and the risk-reward profile of the property. Specifically, they utilize the historical data, as well as verified, reputable third-party
data sources to identify market trends, comparable sales, and other relevant real estate data including government regulations and environmental
concerns. The in-house appraisers then conduct a complete visual inspection of the interior and exterior of the property, through which
they notice and examine conditions that might adversely affect the property&#8217;s value, including but not limited to, location, neighborhood,
type, facing direction, floor plan and size, needed repair, decoration style, etc. To enhance the quality of the appraisal, the Sentage
Operating Companies often order property inspection reports to better understand the property&#8217;s physical condition. After consolidating
information collected through various channels, the in-house appraisers compare the property with comparable sales based on a set of factors
selected to assess specific features of the property and its market conditions. To ensure the reliability of the appraisal result, the
Sentage Operating Companies also consult property values estimated by licensed, reputable third-party real estate appraisers. Currently,
the Sentage Operating Companies have maintained long-term partnerships with several third-party appraisers, which are recognized as AAA
(i.e. the highest level) appraisal institutions by the China Appraisal Society and have consistently provided appraisal-related services
to leading banks and other financial institutions across the nation during the last several decades.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For commercial properties, i.e. properties with
strong earning ability, the in-house appraisals adopt an income capitalization approach in addition to the original appraisal. Specifically,
the in-house appraisers determine an estimate of gross income, expenses, net operating income and appropriate cap rate of the property
based on available information. The estimate is then used to adjust the Sentage Operating Companies&#8217; valuation results in the original
appraisal.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies ask the in-house
appraisers to provide an opinion for each real estate appraisal, which is submitted to the risk management team to review. The risk management
team then analyzes the property based on the appraisal opinion, along with all other relevant data, and concludes their findings in an
internal review report. Throughout the appraisal process, the management team constantly monitor the in-house appraisers&#8217; performance
and evaluate their performance based on the institutional finding partners&#8217; feedback on the quality of the appraisal opinions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 73; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->67<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies generally avoid
lending on properties that are special purpose in nature. Currently the Sentage Operating Companies require properties to be in Shanghai
City, China, where the Sentage Operating Companies&#8217; headquarters are located. In the future, as the Sentage Operating Companies
aim to expand the Sentage Operating Companies&#8217; presence into first-tier cities in China, qualified properties in these cities will
be acceptable collateral to us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Mortgage Products Offered by the Funding
Partners</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The mortgages borrowers obtain through the loan
recommendation services typically have the following characteristics:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Mortgage Size and Type</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The mortgage loans borrowers obtain through the
recommendation services originate in principal amounts ranging from RMB1 million (approximately US$140,841) to RMB20 million (approximately
US$2.82 million). The Sentage Operating Companies use a number of credit assessment procedures and risk management measures to verify
prospective borrowers&#8217; loan purposes, including certifications from prospective borrowers, business contract and document review,
external information verification sources, and other checks. For more detail on information verification, see &#8220;&#8212;Credit Assessment
and Risk Management&#8212;Information Collection, Verification, and Fraud Detection.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Property Types</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mortgages borrowers obtained through the Sentage
Operating Companies&#8217; loan recommendation services are typically secured by the following property types:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="vertical-align: top; width: 18%; padding-left: 12pt; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Residential</span></td>
    <td style="vertical-align: bottom; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Traditional apartment buildings, duplexes, condominiums and other properties zoned for living or dwelling </span></td></tr>
  <tr>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 12pt; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commercial</span></td>
    <td style="vertical-align: bottom; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commercial property occupied by professional or business offices and other properties zoned for profit generation</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies generally avoid
special-purpose properties such as assisted-living facilities. For fiscal years 2020, 2021 and 2022, residential properties constituted
the major collateral type, representing approximately 97%, 100%, and 0%, respectively, of all the mortgages borrowers have obtained through
the Sentage Operating Companies&#8217; recommendation and commercial properties represented the remaining 3% and 0%, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Geography</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, the Sentage Operating Companies only
consider qualified properties located in Shanghai City, China as acceptable collateral. We believe that the Sentage Operating Companies&#8217;
strategic choice on the geographical location allows us to provide high-quality appraisal services by leveraging the team&#8217;s extensive
knowledge of the local market and stable business partnerships the Sentage Operating Companies have built with reputable local third-party
appraisers and other service providers. Such strategy ensures that borrowers are able to obtain the loan amount that accurately corresponds
to the value of their properties and properly reflects the local market liquidity. It also protects the funding partners against lending
more than they might be able to recover in the case of default.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Third-Party Guarantee</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depending on funding partners&#8217; specific
requirements, some of the mortgages are guaranteed by third-party guarantors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Principal Amount</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies do not determine
the principal amount, which is entirely decided by the funding partners. However, the funding partners do rely on credit assessment results,
appraisal opinions, and other information provided by us. The principal amount is determined by, among other factors, the borrower&#8217;s
creditworthiness, the value of the property, the strength of the local market, etc. Subject to funding partners&#8217; specific requirements
and valuation metrics, property value is typically the driving factor determining the principal amount. Among all the mortgages borrowers
have obtained through the Sentage Operating Companies&#8217; recommendation, the principal amount of mortgages secured by residential
properties typically equals 50% to 70% of the estimated property value, whereas the principal amount of mortgages secured by commercial
properties typically does not exceed more than 50% of the estimated property value.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Term and Interest Rate</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depending on the types of funding partners, a
borrower&#8217; specific loan purpose, and the value of the borrower&#8217;s collateralized property, mortgage term ranges from one year
to ten years. The mortgage interest rate is entirely decided by the funding partners.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The typical mortgage in the Sentage Operating
Companies&#8217; product portfolio provides a fixed-rate, interest-only term. As of April 22, 2023, all the mortgages borrowers have obtained
through the Sentage Operating Companies&#8217; recommendation had an initial loan term of 24 to 36 months with an interest rate of 6%
to 8%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 74; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->68<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Borrowers and Partners</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Borrowers</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies aim to serve individual
business owners who are able to collateralize qualified properties. The number of borrowers who have used the loan recommendation services
has been growing rapidly.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies&#8217; value proposition
to individual business owners is convenient access to various mortgage products offered by the Sentage Operating Companies&#8217; network
of funding partners. Specifically, due to fast-evolving commercial environment, limited planning abilities, and the lack of a nationwide
credit rating system in China, these business owners have limited credit access through traditional financial institutions and lack alternative
borrowing channels with reasonable cost. The Sentage Operating Companies also strive to provide them a transparent, easily navigable recommendation
process through a comprehensive range of customized services. At the initial stage of the Sentage Operating Companies&#8217; recommendation
process, the Sentage Operating Companies provide clear documentation requirements and recommend different funding sources and mortgage
products to borrowers based on their personal background and specific financing needs. The Sentage Operating Companies take time to explain
terms and conditions of specific mortgage products in details and assist borrowers in application material preparation. Throughout the
recommendation process, the Sentage Operating Companies endeavor to serve as the intermediary between borrowers and funding partners to
resolve any confusion or misunderstanding caused by information mismatch.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For prospective borrowers the Sentage Operating
Companies acquired through business contacts, the Sentage Operating Companies do not directly charge them any fees. Instead, the Sentage
Operating Companies&#8217; referral partners first charge borrowers service fees for their referral. The Sentage Operating Companies then
charge the referral partners a commission as a percentage of the loan amount pursuant to the service agreements between us and the referral
partners. Referral partners typically pay us commission fees within 30 days after funding partners provide loans to borrowers. For the
remaining prospective borrowers, we directly charge them service fees pursuant to the Sentage Operating Companies&#8217; service agreements
with such prospective borrowers. The service fee is charged as a percentage of the loan amount. A borrower pays us the service fee in
a lump sum upon receiving the proceeds of the mortgage from a funding partner.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All the borrowers are geographically concentrated
in Shanghai City, China. In the future, as the Sentage Operating Companies expand the presence into first-tier cities in China, the Sentage
Operating Companies will consider prospective borrowers who are able to collateralize qualified properties in these cities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Business Partners</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Funding Partners</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies provide loan recommendation
services to individual borrowers and work with a group of funding partners with whom the Sentage Operating Companies have established
long-term business partnerships. The Sentage Operating Companies do not provide funds to each borrower, nor do they get funds from the
funding partners. The Sentage Operating Companies only serve as an intermediary between borrowers and the funding partners to facilitate
the borrowing process. Funding partners are financial institutions that provide loans to borrowers. Funding partners in China can be commercial
banks, small loan companies, pawnshops, trust companies, and asset management companies. The funding partners the Sentage Operating Companies
work with are required to be fully compliant and licensed financial institutions with stable financial resources, which are recognized
by the Chinese government. The Sentage Operating Companies can match different borrowers with the funding partners according to each borrower&#8217;s
qualifications, such as the value of its collaterals, its business cash flow, financial credit status, and repayment schedules. Currently,
the Sentage Operating Companies do not maintain any cooperative contracts with any funding partners. The Sentage Operating Companies are
not substantially dependent upon any agreements with any of these funding partners.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Specifically, the Sentage Operating Companies
leverage the advanced credit assessment and risk management capabilities to select high-quality borrower applicants whose financial conditions
and personal background meet the selection criteria, estimate the value of their property through a rigorous appraisal process, and recommend
qualified borrower applicants to the funding institutional partners. After receiving recommendations, the funding partners may elect to
underwrite mortgages based on their own risk appetites.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies continuously work
on strengthening the cooperation with funding partners and organically expanding their network of funding partners. For the fiscal year
2021, the funding partners had approved loans to borrowers recommended by us in the aggregate amount of RMB256.85million (approximately
US$39.82 million). In the past, all the financial institution funding partners are commercial banks, the majority of which are reputable
national and regional banks. In the future, the Sentage Operating Companies plan to expand and diversify the funding partner base by seeking
opportunities to collaborate with other kinds of institutions and organizations, including pawnshops, micro-lending companies, etc.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies establish relationships
with the funding partners through word-of-mouth referrals and referrals made by the shareholders and management team members, many of
whom have established extensive connections in the financial industry based on their professional experience.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 75; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->69<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The funding partners choose to partner with the
Sentage Operating Companies for access to the Sentage Operating Companies&#8217; borrower applicants base, enhanced credit assessment
and risk management capabilities, and other services, including borrower and product matching. The Sentage Operating Companies&#8217;
value proposition is further magnified by the repeat lending and cross-selling opportunities the Sentage Operating Companies provide to
them. Once borrowers are connected to funding partners through the Sentage Operating Companies&#8217; services, funding partners will
be able to extend more loans and sell other financial products to such borrowers. The Sentage Operating Companies do not receive any fees
or commissions on such additional loan products. Historically, the Sentage Operating Companies have delivered value in the form of a delinquency
rate of zero percent for the funding partners. However, there is no guarantee that the Sentage Operating Companies will maintain a low
default rate in the future, as the Sentage Operating Companies only recently started the loan recommendation business and the default
rate may change as the mortgage loans granted to borrowers the Sentage Operating Companies recommended become more seasoned. As the Sentage
Operating Companies have built their industry credibility and earned trust from funding partners based on the proven track record, they
are currently exploring the possibility to provide new services to them, such as post-origination services. Although subject to regulations
on loan recommendation services, their business model does not subject us to the relevant local regulatory requirements that are applicable
to online lending platforms since the Sentage Operating Companies do not provide online financing intermediary services. We believe that
the Sentage Operating Companies&#8217; strengthened cooperation with funding partners allows us to sustainably grow their business and
mitigate the negative impact brought by the continuing challenging regulatory environment in China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Other Partners</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Borrower acquisition</i>. The Sentage Operating Companies leverage cooperation with referral partners to acquire borrowers. As of the date of this annual report, the Sentage Operating Companies do not maintain any cooperative contracts with any third-party referral partners. A referral partner first charges a borrower service fee for its referral pursuant to their service agreement. The Sentage Operating Companies then charge the referral partner a commission as a percentage of the loan amount pursuant to the service agreement between us and the referral partner. For more details on the Sentage Operating Companies&#8217; collaboration with referral partners, see &#8220;&#8212;<i>Borrowers</i>.&#8221; Currently, the Company does not maintain any cooperative contracts with any referral partners. The Sentage Operating Companies are not substantially dependent upon any agreements with any of these referral partners.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Property Appraisal</i>. To ensure the reliability of their appraisal result, the Sentage Operating Companies consult property values estimated by licensed and reputable third-party real estate appraisers. The Sentage Operating Companies currently maintain long-term partnerships with several third-party appraisers which are recognized as AAA (i.e. the highest level) appraisal institutions by the China Appraisal Society. Currently, the Sentage Operating Companies do not maintain any cooperative contracts with any third-party appraisers. The Sentage Operating Companies are not substantially dependent upon any agreements with any of these third-party appraisers.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Data</i>. In addition to publicly available sources, the Sentage Operating Companies use services provided by technology companies, such as Tianyancha and Qichacha, to access larger borrower databases. In the future, the Sentage Operating Companies also plan to work with other technology service providers to further expand the database and diversify the verification channels, which allow them to enhance the credit assessment model and optimize the operational efficiency. Currently, the Sentage Operating Companies do not maintain any cooperative contracts with any one of these service providers. The Sentage Operating Companies are not substantially dependent upon any agreements with any of these service providers. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Prepaid Payment Network Services</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The Sentage Operating Companies&#8217; Business
Model</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies started providing
prepaid payment network services in August 2019, offering seamless, convenient and reliable payment services to merchants across different
industries. Specifically, the Sentage Operating Companies offer prepaid cards to individual consumers who, after purchasing such prepaid
cards from us, will be able to buy goods and services offered by the merchant customers with their prepaid cards and recharge such cards
online. The proceeds generated from the actual sales of the prepaid card are deposited into an escrow account designated and monitored
by the PBOC. Leveraging the partnership with NetsUnion, the Sentage Operating Companies&#8217; prepaid card payment services enable qualified
merchants selected by us after rigorous internal review to accept prepaid-card payments using traditional payment terminals. The Sentage
Operating Companies provide merchant customers with payment-related technology consulting and support services and prepaid card payment
services. The Sentage Operating Companies charge merchant customers two separate fees for each kind of services the Sentage Operating
Companies provide. For details on services the Sentage Operating Companies provide and fees they charge, see &#8220;&#8212;Technology
Consulting and Support Services,&#8221; &#8220;&#8212;Prepaid Card Payment Services,&#8221; and &#8220;&#8212;Our Customers&#8212;<i>Pricing</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The payment service business enables the Sentage
Operating Companies to develop a deep understanding of customers&#8217; needs and will allow them to provide merchants with continuously
improving services and technologies. For fiscal years 2020, 2021, and 2022, revenue generated from the prepaid payment network services,
consisted of technology consulting and support fees, was US$432,958, US$928,565, and US$ 161,372 respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Technology Consulting and Support Services</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For any merchant customer who need payment-related
technical consulting and support, the Sentage Operating Companies provide a tailored payment solution to the merchant customer, interface
its internal system with the prepaid card payment system, and offer personnel training to ensure that the merchant&#8217;s staff know
how to properly operate such system. For details on the technology consulting and support services the Sentage Operating Companies charge,
see &#8220;&#8212;Our Customers&#8212;<i>Pricing</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 76; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->70<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Prepaid Card Payment Services </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For any merchant customers who need prepaid card
payment services, the Sentage Operating Companies collect and process information necessary for prepaid card issuance and authorize transaction
requests after verifying transaction information. The Sentage Operating Companies also conduct the necessary know-your-client, or KYC,
and other due diligence review of cardholders and merchant customers in order to assess and mitigate fraud risks based on the information
the Sentage Operating Companies collect from them. For details on the technology consulting and support services the Sentage Operating
Companies charge, see &#8220;&#8212;Our Customers&#8212;<i>Pricing</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The Sentage Operating Companies&#8217; Role
in the Prepaid Card Payment Value Chain</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From the front end, non-cash transactions involving
prepaid cards between merchants and consumers seem simple and direct as consumers pay for the goods and/or services while merchants accept
consumers&#8217; payment and offer such goods and/or services. However, such transactions are far more complicated when looking from the
back end and cannot be completed in the absence of the interactions among different parties involved. The Sentage Operating Companies
act as a payment service provider and play an essential role in the prepaid payment network value chain. The diagram below illustrates
the payment process for the payment services and the role of each participant involved:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img alt="" src="image_002.jpg"/>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payment Process:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A consumer interested in the prepaid cards can submit his or her prepaid card application either online or at the offline operating center.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sentage Operating Companies issue the prepaid card to the consumer after reviewing and approving his or her application. The Sentage Operating Companies accept those consumers whose personal background information and financial conditions meet the selection criteria. For more details on information we review and verify, see &#8220;&#8212;Risk Management and Internal Control&#8212;Prepaid Card Applicants&#8217; Information Verification.&#8221; The monetary value of the prepaid card is equal to the total amount the consumer paid us along with his or her application. The proceeds generated from the actual sales of the prepaid card are deposited into an escrow account designated and monitored by the PBOC, and funds in the escrow account will only be transferred out of the account when they are used for prepaid card payments.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The consumer initiates a payment to a merchant to purchase goods and/or services that such merchant offers.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The consumer generates a payment request by swiping, tapping or inserting his or her prepaid card on a payment terminal.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sentage Operating Companies, as payment service provider, process the consumer&#8217;s payment request. The Sentage Operating Companies also verify the payment information as the prepaid card issuer. Once the verification of the payment is completed, the Sentage Operating Companies will approve the transaction and send a notification of approval to NetsUnion.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NetsUnion, after verifying the payment information through its internal procedures, sends the payment result to the merchant and settles the fund in the escrow account to the merchant&#8217;s account in the receiving bank. If the merchant pays the service fee on a per-transaction basis, NetsUnion settles the fund in the escrow account net of the service fee. If the merchant pays the entire service fee upfront before the Sentage Operating Companies start providing services, NetsUnion settles the original fund in the escrow account. For details on the service fee the Sentage Operating Companies charge, see &#8220;&#8212;Our Customers&#8212;<i>Pricing</i>.&#8221; NetsUnion&#8217;s responsibilities include connecting and switching transactions among payment service providers, issuers, and merchants, and enabling payment authorization. NetsUnion does not charge any fees for payments it processes.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The merchant confirms receipt of the payment.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 77; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->71<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Customer Onboarding</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">First, prospective merchant customers apply to
open an account on the Sentage Operating Companies&#8217; platform. After reviewing application materials, the Sentage Operating Companies
onboard the customers and connect them to NetsUnion. Once connected, customers can enjoy the safe and fast payment services and receive
consumers&#8217; payments made with prepaid cards issued by us. For details on the transaction process and the Sentage Operating Companies&#8217;
role in the prepaid payment network value chain, see &#8220;&#8212;Prepaid Card Payment Services&#8212; Our Role in the Prepaid Payment
Network Value Chain.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To ensure the quality of the customer profile
and minimize the business risk, the Sentage Operating Companies conduct due diligence to assess prospective customers with the following
steps.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Merchant assessment</i>. The Sentage Operating Companies&#8217; direct sales force is mainly responsible for sourcing new merchants. They identify and select prospective merchants usually by conducting an on-site inspection to evaluate the merchant&#8217;s operations, financial condition and credit standing. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Collecting application materials</i>. The Sentage Operating Companies&#8217; customers need to submit application materials either online or at the Sentage Operating Companies&#8217; offline operating center. The Sentage Operating Companies collect customers&#8217; application materials and information according to the internal checklist. For instance, the Sentage Operating Companies collect copies of their business licenses, valid identification documents of legal representatives or the persons-in-charge, bank account opening certificates, pictures of their business premises and other relevant certification documents. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Customer approval</i>. The Sentage Operating Companies adopt a stringent approach and implement know-your-customer internal procedures, including (i) verifying the accuracy of information in application materials; (ii) checking the customer against the Sentage Operating Companies&#8217; internal and industry blacklists; (iii) conducting necessary inspections to verify the authenticity of application materials; and (iv) determining the customer&#8217;s risk rating according to the internal policies and relevant regulations.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Customers</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies connect the corporate
customers with their consumers in various industries. As of the date of the annual report, the Sentage Operating Companies have 12 customers,
which are Shandong Ciyun Information Technology Co., Ltd., Hengyu international trade (Qingdao) Co., Ltd., Qingdao Zhanhongyu Network
Technology Co., Ltd., Qingdao Henhai Co. Ltd., Qingdao Tongsheng Property Management Co.Ltd., Qingdao Qianheyi Trading Co. Ltd., Rizhao
You Grain City Electronic Technology Co., Ltd., Shanghai Hai shang Ming Zhu Film Co. Ltd., Fuan Information Technology (Qingdao) Co. Ltd.,
Qingdao Kece Innovation Consulting Service Co., Ltd.Anhui Yuzhilan Education Software Technology Co., Ltd. and Qingdao Nuolizhi Enterprise
Management Co., Ltd. The Sentage Operating Companies plan to work with midsized supermarkets, shopping malls, and online platforms. The
Sentage Operating Companies believe that by reaching corporate customers of various sizes, the Sentage Operating Companies can build a
solid foundation to expand the service base and provide more diversified financial solutions that fit into more payment scenarios.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>The Value Proposition</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The merchant customers choose the Sentage Operating
Companies because the Sentage Operating Companies are a licensed prepaid card issuer capable of offering multipurpose prepaid cards and
a licensed payment service provider. In order to issue multipurpose prepaid cards, which can be used to purchase goods and services from
a diverse group of merchants across industries and regions, and provide related payment services, a service provider must obtain a third-party
payment license that allows such activities. As a result of the tightened control imposed by the PBOC over payment licenses, it has become
much harder to obtain such licenses from relevant regulatory bodies in China. A license applicant must undergo a time-consuming application
process, be able to pay an expensive application fee, and satisfy stringent standards adopted by the regulatory bodies. In light of the
strong entry barriers, the payment license is a unique asset that distinguishes us from competitors. Without such license, a prepaid issuer
can issue only single-purpose prepaid cards, which are limited to purchasing goods and services provided by the card issuer or companies
related to the card issuer.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Contract Terms</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies enter into a standard
contract with each merchant customer for the services. The term of the Sentage Operating Companies&#8217; agreements with payment service
customers is normally one year, which automatically renews at the end of each term. Each party reserves the right to terminate the agreement
at any time with 30 days&#8217; written notice to the other party.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Pricing</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies charge merchant
customers technology consulting and support fees for designing tailored payment solutions, interfacing their internal systems with the
prepaid card payment system, and providing their staff with relevant operation training. Depending on the estimated annual transaction
amount agreed by us and the particular merchant customer, the technology consulting and support fee ranges from RMB100,000 (approximately
US$14,474) to RMB300,000 (approximately US$43,423). The merchant pays us the entire technology consulting and support fee upfront after
it enters into the service agreement with us and before the Sentage Operating Companies start providing services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 78; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->72<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies charge merchants
fees for payment services, including, but not limited to, collecting and processing information necessary for prepaid card issuance and
authorizing transaction requests after verifying transaction information. Depending on factors including demand for payment services,
market trends and conditions, and the regulatory environment for the third-party payment services industry in China, the payment service
fee is equal to either (i) 0.3% to 0.5% of each transaction amount or (ii) 0.2% of the estimated annual transaction amount. Merchant customers
may choose which payment method it prefers. If the merchant pays the service fee on a per-transaction basis, for each transaction for
which the merchant uses the payment services, NetsUnion settles the fund in the escrow account designated and monitored by the PBOC net
of the service fee to the merchant&#8217;s account in the receiving bank. Alternatively, the merchant pays the entire service fee upfront
after it enters into the service agreement with us and before the Sentage Operating Companies start providing services. NetsUnion does
not charge any fees for payments it processes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Customer Services</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Leveraging the advanced technologies, the Sentage
Operating Companies have established a lean and productive customer service team specialized in handling customer relationships. Customers
can reach the customer service team through email, hotlines, social media accounts, and their website.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each customer request, enquiry or complaint is
recorded and assigned a specific case reference. Each of the customer service assistant is responsible for the cases assigned to them
and will follow up until the case is closed or resolved to the customers&#8217; satisfaction. The Sentage Operating Companies&#8217; policy
requires that the customer service personnel must respond to each customer complaint within one business day and address the relevant
issues within three to four business days. As of the date of this annual report, the Sentage Operating Companies achieved a zero customer-complaint
report rate, which is a measure of the dissatisfaction of the services as reported by customers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Sales and Marketing</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies promote the business
through direct marketing. Currently, the business covers Qingdao City, Shandong Province in China. The Sentage Operating Companies&#8217;
in-house marketing department, which consists of experienced professionals, is responsible for coordinating the direct marketing efforts.
To promote the sales, the Sentage Operating Companies are exploring opportunities to develop strategic partnerships with independent third-party
sales agents, placing online advertisements with selected high-traffic social media platforms and high-traffic searching engines, and
launching referral programs.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Collaboration with NetsUnion</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NetsUnion is a clearing platform for internet
and other network payments in China. According to the PBOC, after June 30, 2018, third-party payment service providers, including prepaid
payment network service providers, are required to channel internet payments via NetsUnion, rather than banks&#8217; payment gateways.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2019, the Sentage Operating Companies
became a member of NetsUnion, and entered into a network access agreement with it. Under the agreement, NetsUnion is responsible for channeling
payment information from us to merchants and providing clearing services regarding the corresponding payment transactions. NetsUnion does
not charge any fees for payments it processes. Under the network access agreement, the Sentage Operating Companies are required to comply
with NetsUnion&#8217;s membership rules and fulfil the obligations in deterring money laundering and terrorist financing pursuant to the
applicable laws and regulations. The Sentage Operating Companies are obligated to indemnify NetsUnion for any losses caused by fictitious,
inaccurate, incomplete, illegal or invalid transactions the Sentage Operating Companies facilitate. NetsUnion is obligated to compensate
the direct losses that arise from failures of its system. The Sentage Operating Companies&#8217; agreement with NetsUnion does not have
a term; instead, as long as the Sentage Operating Companies&#8217; third-party payment license is valid and the Sentage Operating Companies
conduct business activities related to payment services, the agreement with NetsUnion remains in effect.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Risk Management and Internal Control</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies are subject to
various risks in the operations. For details on risks the Sentage Operating Companies are subject to, see &#8220;Item 3. Key Information&#8212;D.
Risk Factors&#8212;Risks Related to Our Business and Industries.&#8221; The Sentage Operating Companies have established a dynamic, technology-driven
risk management system and adopted relevant policies and procedures, which we consider suitable for the business operation. The Sentage
Operating Companies also continue to monitor and review the risk management and internal control systems in order to quickly adapt to
changes in market conditions, product and service offerings, and the regulatory environment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies have an independent
risk management committee dedicated to the prepaid payment network business line. Led by the risk management committee, the risk management
and internal control team is responsible for verifying information, preventing and detecting any sign of fraud and money laundering, and
monitoring the daily implementation of each department&#8217;s internal control procedures and measures.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Prepaid Card Applicants&#8217; Information
Verification</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prepaid card applicants will need to provide us
with basic information, including, but not limited to, identification documents and other requested personal information, such as PRC
ID card details, a mobile phone number, educational level, and information related to employment status.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies make every effort
to ensure the accuracy and reliability of the information the Sentage Operating Companies collect, as well as safeguard the privacy of
such information. For example, the Sentage Operating Companies collaborate with third parties to verify the applicant&#8217;s identity
by confirming his or her name, ID number and mobile number. The Sentage Operating Companies also cross-examine data the Sentage Operating
Companies collect from different outside sources to verify data provided by applicants.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 79; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->73<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Fraud</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies have fraud risk
management policies and procedures in place to govern the business operation. The Sentage Operating Companies leverage the data analytics
capacities to detect fraud risk in the payment services through the real-time transaction risk monitoring and fraud risk analysis systems.
The Sentage Operating Companies&#8217; multi-faceted and effective fraud management system automatically aggregates data relating to fraud
in the database. Built upon the large database collected via the own platform, the system is able to assess the probability of suspicious
activities. The Sentage Operating Companies have established a dedicated fraud detection team. The team regularly tests and refines anti-fraud
rules to tackle new developments and trends, which allows us to quickly respond to emerging fraudulent threats and identify unknown fraud
patterns. Based on the risk assessment results of the system, the team also conducts onsite investigation, administering a series of tests
on suspicious account users.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Money laundering</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies have established
internal control policies and procedures to monitor and report any suspected money laundering activities as part of the due diligence
and risk assessment procedures. The Sentage Operating Companies have developed a risk management system that facilitates the customer
due diligence procedures and is deigned to identify and intercept suspicious transactions. The Sentage Operating Companies continuously
analyze suspicious patterns and trends of completed transactions, update the list of suspicious recipients, and refine the algorithm.
The Sentage Operating Companies also provide education and training to the staff on anti-money laundering and anti-terrorist financing.
In addition, the Sentage Operating Companies have an anti-money laundering and anti-terrorist financing committee to monitor compliance
with the relevant laws and regulations. The Sentage Operating Companies submit reports to the PBOC on suspicious transactions the Sentage
Operating Companies identified and relevant customer identity information in accordance with the relevant regulatory requirements. As
of the date of this annual report, the Sentage Operating Companies have not encountered any incident where the Sentage Operating Companies
failed to screen and report merchants identified as suspected money launderer to the PBOC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Infrastructure and Information Technology</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies are currently
applying for copyrights in the PRC for the proprietary technology systems, which include the information system and account management
system. The Sentage Operating Companies&#8217; internal management system is copyrighted and its registration was completed on April 26,
2020. As of April 22, 2023, the Sentage Operating Companies had a team of 3 full-time employees to monitor and maintain the information
technology and infrastructure. To promote the long-term business growth, the Sentage Operating Companies&#8217; technology team focuses
on ensuring that the technology systems, operating centers, financial systems, and security protocols are well established, reviewed,
tested and continuously strengthened.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>IT Infrastructure. </i>We believe the Sentage Operating Companies have built a secure, efficient, and cost-effective infrastructure to provide strong computing ability in the system. As of April 22, 2023, the information technology infrastructure included 15 servers, which form a strong server network with speedy processing capability. The infrastructure has been fully integrated with the computer environments and business requirements to serve as a powerful engine for the products and services.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Information System.</i>&#160;We believe the ability to access and use data is essential to the operations. The Sentage Operating Companies&#8217; centralized computer-based information system supports the core processing and analytics functions of the business lines under a set of integrated databases. It is designed to be both replicable and scalable to accommodate the internal growth. Supported by the set of databases, the information system can efficiently process and analyze high volumes of data, securely store the data on a cloud server, and provide each of the departments with convenient access to data. The information system empowers us to generate comprehensive reports and achieve data visualization from accessible data to support the management&#8217;s instant decision-making to cope with the evolving competitive landscape.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When used for loan repayment and collection management,
the information system screens out outdated borrower information on the record and merges borrower information in order to detect any
repeating activity pattern and map potential relationships among borrowers based on the information the Sentage Operating Companies are
authorized to use. The information system also strengthens the borrower profiling function by enabling the operating portal to categorize
borrowers and facilitate repayment and collection assignment based on non-personally identifiable information such as location, gender,
the composition of loans, and past-due period.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To enhance the credit assessment and risk management
capabilities in the loan recommendation process, the Sentage Operating Companies have built a comprehensive credit profile in the information
system for each borrower and constantly update the profile with new information the Sentage Operating Companies have collected through
various internal and external verification resources. Leveraging the behavior analytics capabilities, the Sentage Operating Companies
are able to consolidate and analyze information of each profile to estimate borrowers&#8217; credit needs and assess delinquency&#160;risk.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 80; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->74<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies&#8217; sophisticated
data insights and data analytics capabilities have driven the rapid growth of the prepaid payment network business line. Through comprehensive
merchant profiling, the Sentage Operating Companies are able to quickly and accurately identify risks associated with potential clients,
captures fraud signals from a massive amount of data regarding user behaviors, analyze them in real time, and intercepts abnormal transactions
at an early stage. Theses abilities are crucial in reducing the transaction loss rate and gaining valuable insights into the clients&#8217;
businesses.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Internal Management System. </i>The Sentage Operating Companies aim to leverage the proprietary internal management system, which is currently used for the loan repayment and collection management business, to optimize the operational efficiency and achieve workflow automation. Under the system, the operating portal digitizes and standardizes the repayment and collection management process by consolidating skip tracing tools, borrower profiles, repayment records, and other functions under one platform. The Sentage Operating Companies use the operating portal for, among other things, case assignment, portfolio management, collection activity management, and repayment management. We believe that the system affords the in-house team sufficient operational support to efficiently perform tasks related to loan repayment and collection management.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Account Management System.</i> The Sentage Operating Companies have developed a proprietary account management system, which the Sentage Operating Companies currently use to provide the prepaid payment network services, to facilitate centralized management of customers&#8217; accounts and related information. This system consolidates and manages all the customers&#8217; account information, including procedures and standards for customers&#8217; account opening. It tracks the balances of customer accounts, allowing more transparent management of funds movements. The system is built upon the extensive experience of serving a diverse customer base. The Sentage Operating Companies update the system on a regular basis in order to continuously improve its reliability, efficiency and compatibility with the services and evolving regulatory requirements.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Backup System.</i> The Sentage Operating Companies maintain two independent full capacity network servers in two separate locations. If one server experiences technical difficulties or outage, network operations immediately switches to the other server to ensure uninterrupted network services to the employees.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Security System.</i> To protect the databases from unauthorized access, the Sentage Operating Companies configure the system with multiple layers of security modules. The Sentage Operating Companies&#8217; security system monitors and records the entire process of data access, showing us in real-time the identity of users accessing the system and channels through which the users access the system. Furthermore, through periodically reviewing the operation history, examining USB/external hard drives, and implementing security measures for the internal management system, the Sentage Operating Companies are able to manage and restrict employees&#8217; access to personal and financial information. In addition, the Sentage Operating Companies have installed a firewall which monitors and controls incoming and outgoing traffic and automatically takes reactive measures against any information security threats.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies&#8217; data security
and management capabilities have been certified by various national standards, including (i) the Level 3 Certification of Information
System Protection, (ii) the Safety Certification on Payment Facilities for Non-Financial Institution, and (iii) the Account Data Security
Standard evaluation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Technology Upgrade. </i>The Sentage Operating Companies actively develop new software and explore greater use of technology to manage data resources. The Sentage Operating Companies will continue to improve the current information technology and infrastructure, which in turn is expected to enable us to utilize the technology and data resources more efficiently. See &#8220;&#8212;Our Strategies&#8221; for a detailed discussion of the technology upgrades.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Privacy Protection</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies are dedicated
to privacy protection of the clients during all phases of the businesses. The Sentage Operating Companies have access to a significant
amount of data that could be considered as confidential, including operational data and personal information of the clients and other
parties. The Sentage Operating Companies consider the protection of such confidential information to be important. The Sentage Operating
Companies adopted a strict internal data policy to protect confidential information at all levels. This policy establishes day-to-day
data use requirements, data and information classifications, data encryption requirements, back-up requirements, approval procedures and
user rights for confidential information. This policy also specifies the methods in which data must be stored, such as in encrypted format
and with backup. The Sentage Operating Companies require each of the employees to agree in writing to abide by the data policy and to
protect the confidentiality of the data.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies use a variety
of technologies to protect data with which the Sentage Operating Companies are entrusted and have a team of data security professionals
dedicated to the ongoing review and monitoring of data security practices. For example, the Sentage Operating Companies store all collection
related data in encrypted format and strictly limit the number of personnel who can access those servers that store such data. The Sentage
Operating Companies also utilize firewall to protect against potential attacks or unauthorized access. The Sentage Operating Companies
endeavor to deploy security enhancements across all the business lines to ensure data protection. Since the inception, the Sentage Operating
Companies have not experienced any material information breach or other system failure which could have led to the loss of confidential
information.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 81; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->75<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Competition</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The industries in which the Sentage Operating
Companies are operating are competitive and evolving. With respect to loan repayment and collection management and loan recommendation,
the Sentage Operating Companies compete with market players such as traditional financial institutions, small loan companies, e-commerce
driven installment platforms, and other consumer finance platforms. For repayment and collection management, the Sentage Operating Companies&#8217;
major competitors include China Data Group (Suzhou) Limited, M&amp;Y Global Services, and Promisechina (Shanghai) Investment Co., Ltd.
For loan recommendation, the Sentage Operating Companies primarily compete with institutions such as Shanghai Qingpu Real Estate Investment
Property Co., Ltd, Shanghai Hongkou Real Estate Service Co., Ltd. and Shanghai Yangpu Public Housing Asset Management Co., Ltd. With respect
to prepaid payment network services, the Sentage Operating Companies primarily compete with other third-party payment service providers
in China, including Shandong Chenglian Card Payment Co., Ltd., Qingdao Baisentong Payment Co., Ltd., and Shandong Feiyin Intelligent Technology
Co., Ltd.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Some of the larger competitors have significantly
more financial, technical, marketing and other resources than the Sentage Operating Companies do and may be able to devote greater resources
to the development, promotion, sale and support of their development. The competitors may also have more extensive borrower bases, greater
brand recognition and brand loyalty and broader partner relationships than us. We believe that the Sentage Operating Companies&#8217;
ability to compete effectively for borrowers and partners depend on many factors, including the variety of the Sentage Operating Companies&#8217;
products and services, user experience on the Sentage Operating Companies&#8217; platform, effectiveness of the Sentage Operating Companies&#8217;
risk management, the Sentage Operating Companies&#8217; technological capabilities, the risk-adjusted returns offered to customers, the
partnership with third parties, the marketing and selling efforts and the strength and reputation of the Sentage Operating Companies&#8217;
brand.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, as the business grows, Sentage Operating
Companies face significant competition for highly skilled personnel, including management, engineers, product managers and risk management
personnel. The success of the growth strategies depends in part on the Sentage Operating Companies&#8217; ability to retain existing personnel
and add additional highly skilled employees.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Intellectual Property</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We regard the Sentage Operating Companies&#8217;
copyrights, domain names, and trademark as critical to our success, and the Sentage Operating Companies rely on trade secret law and confidentiality
clauses in employment agreements with their employees and others to protect their proprietary rights. The Sentage Operating Companies
are currently applying for copyrights for their proprietary technology systems, which include the information system and account management
system. To date, the Sentage Operating Companies have not experienced a material misappropriation of the intellectual property. Despite
their efforts to protect the property rights, third parties may attempt to use, copy, obtain, or distribute the proprietary technology.
The Sentage Operating Companies cannot be certain that the steps they have taken or will take in the future will prevent misappropriation
of the technology and intellectual property rights. For a description of the risks related to the intellectual property rights, see &#8220;Item
3. D. Risk Factors&#8212;Risks Related to Our Business and Industries&#8212; <i>We may not be able to prevent others from unauthorized
use of our intellectual property, which could harm our business and competitive position</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this annual report, Qingdao
Buytop owns the trademark Buytop, effective from February 21, 2014 to February 20, 2034, and the domain name www.buytoppay.com, effective
from December 16, 2016 to December 16, 2023. Daxin Zhuohui owns the copyrighted internal management system, which became effective on
April 26, 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Properties and Facilities</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The corporate headquarters is in Shanghai City,
China, where we lease two office spaces with an area of approximately 170.59 square meters (approximately 1,836 square feet) and an area
of approximately 185 square meters (approximately 1,991 square feet), as of December 31, 2022. The term of the two leases are from November
1, 2022 to October 31, 2024, and from July 20, 2022 to March 19, 2023, respectively. The monthly rental fee is approximately US$8,426
and US$ 3,292.06, correspondingly. The headquarters serve as the center of management, human resources, and administrative activities,
as well as the operation center of the loan repayment and collection management and loan recommendation businesses. In addition to the
headquarters in Shanghai, the Sentage Operating Companies also lease office space in Qingdao City, Shandong Province, China for the prepaid
payment network operations. The office space of the office in Qingdao City has an area of approximately 143 square meters (approximately
1,540 square feet). The term of the lease is from December 1, 2022 to November 30, 2023, and the monthly rental fee is approximately US$1,812.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that the Sentage Operating Companies
will be able to obtain adequate facilities, principally through leasing, to accommodate the future expansion plans.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Seasonality</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies&#8217; businesses
are not affected by seasonality.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Insurance</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies provide social
security insurance including pension insurance, unemployment insurance, work-related injury insurance and medical insurance for the employees.
The Sentage Operating Companies do not maintain business interruption insurance or general third-party liability insurance, nor do the
Sentage Operating Companies maintain product liability insurance or key-man insurance. The Sentage Operating Companies consider the insurance
coverage to be sufficient and in line with market practice for the business operations in China.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 82; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->76<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PRC REGULATIONS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This section sets forth a summary of the principal
PRC laws, regulations, and rules relevant to our business and operations in China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Regulations on Loan Repayment and Collection Management Services</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, the PRC has not adopted any laws or
regulations directly regulating independent loan repayment and collection management service providers. As an intermediary service provider,
we are subject to the PRC contract law as codified in the PRC Civil Code, discussed in detail as below and its specific provisions regulating
contracts for intermediary services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Regulations on Loan Recommendation Services</b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Overview</i></b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the current PRC regulatory regime, the legal
definition and regulatory principles of loan recommendation services and specific regulatory requirements regarding the services have
not been clarified in any relevant promulgated laws or regulations. However, the following laws and regulations, as well as other new
regulatory proposals, may be applicable to governmental authorities&#8217; supervision of loan recommendation services and the loan recommendation
industry.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Regulations Related to Private Lending and Intermediation&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the PRC Civil Code, promulgated
in May 2020 and effective as of January 1, 2021, a contract for intermediary services is a contract under which the intermediary reports
to the client on opportunities for the conclusion of contracts or supplies intermediary services relating to the conclusion of contracts,
and the client pays remuneration to the intermediary. The intermediary shall provide the client with a strictly truthful account of all
matters relating to the conclusion of any contract. Where the intermediary deliberately conceals important matters relating to the conclusion
of contracts or supplies a false account of the situation, to the detriment of the client&#8217;s interests, the intermediary shall not
demand the payment of remuneration and shall also be liable to provide compensation for any losses sustained. In addition, the PRC Civil
Code requires that the interest rates charged under a loan agreement must not violate the applicable provisions of the PRC laws and regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the Provisions on the Supreme
People&#8217;s Court on Application of Laws to the Hearing of Private Lending Cases (&#12298;&#26368;&#39640;&#20154;&#27665;&#27861;&#38498;&#20851;&#20110;&#23457;&#29702;&#27665;&#38388;&#20511;&#36151;&#26696;&#20214;&#36866;&#29992;&#27861;&#24459;&#33509;&#24178;&#38382;&#39064;&#30340;&#35268;&#23450;&#12299;)
(&#8220;the Private Lending Judicial Interpretations 2015&#8221;) issued by the Supreme People&#8217;s Court of the PRC on August 6, 2015,
which came into effect on September 1, 2015, private lending is defined as financing between individuals, legal entities and other organizations.
Loans funded by financial institutions which are licensed by financial regulatory authorities are not private lending transactions. Besides,
the Private Lending Judicial Interpretations 2015 provides that agreements between the lender and borrower on loans with annual interest
rates below 24% are valid and enforceable; as to loans with annual interest rates between 24% and 36%, if the interest on the loans has
already been paid to the lender, and so long as such payment has not damaged the interest of the state, the community and any third parties,
the courts will turn down the borrower&#8217;s request to demand the return of the interest payment; if the annual interest rate of a
private loan is higher than 36%, the excess will be void. When the borrower requests the lender to return such amount above 36% that has
been paid, the People&#8217;s Court should support it..</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Decisions of the Supreme People&#8217;s Court
on Revising the Provisions on Several Issues concerning the Application of Law in the Trial of Private Lending Cases (&#26368;&#39640;&#20154;&#27665;&#27861;&#38498;&#20851;&#20110;&#20462;&#25913;&#12298;&#20851;&#20110;&#23457;&#29702;&#27665;&#38388;&#20511;&#36151;&#26696;&#20214;&#36866;&#29992;&#27861;&#24459;&#33509;&#24178;&#38382;&#39064;&#30340;&#35268;&#23450;&#12299;&#30340;&#20915;&#23450;)
(the Private Lending Judicial Interpretations 2020), promulgated by the Supreme People&#8217;s Court on August 19, 2020 and came into
effect on August 20, 2020, stipulates that if the lender requests the borrower to pay interests at the interest rate specified in the
contract, the interest rate shall not exceed the market quote rate for one-year loan announced monthly by the National Inter-bank Funding
Center, namely Loan Prime Rate (&#8220;LPR&#8221;), taking effect from August 20,2019 as authorized by the People&#8217;s Bank of China.
If a lending activity occurs before August 20, 2019 and a lawsuit is filed after August 20, 2020, its interest rate shall be four times
of the quoted market interest rate of one-year loans at the time of the plaintiff&#8217;s lawsuit to determine the protected interest
rate ceiling. While, if a lending activity occurs between August 20, 2019 and August 20, 2020 and the lawsuit is filed after August 20,
2020, its interest rate shall be four times of the quoted interest rate of the one-year loan market at the time of the lending behavior
to determine the protected upper limit.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the Provisions on the Supreme
People&#8217;s Court on Application of Laws to the Hearing of Private Lending Cases (Revised for the Second Time in 2020) (&#12298;&#26368;&#39640;&#20154;&#27665;&#27861;&#38498;&#20851;&#20110;&#23457;&#29702;&#27665;&#38388;&#20511;&#36151;&#26696;&#20214;&#36866;&#29992;&#27861;&#24459;&#33509;&#24178;&#38382;&#39064;&#30340;&#35268;&#23450;&#65288;2020&#24180;&#31532;&#20108;&#27425;&#20462;&#27491;&#65289;&#12299;)
(&#8220;the Private Lending Judicial Interpretations 2020&#8221;) amended by the Supreme People&#8217;s Court of the PRC on December 29,
2020, which came into effect on January 1, 2021. If a private lending lawsuit is filed after August 20, 2020, the lending activity is
before August 20, 2020, and the interest from the date of the lending act to August 19, 2020 shall be calculated according to the judicial
interpretation at the time of the lending act; the interest portion from August 20, 2020 to the date of loan repayment shall be capped
at four times the one-year loan market quoted interest rate at the time of the lawsuit.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our loan recommendation business of connecting
borrowers and lenders constitutes an intermediary service, and our contracts with lenders and borrowers are intermediary contracts defined
under the PRC Civil Code. Article 1 of the Private Lending Judicial Interpretations 2020 stipulates that private lending is defined as
financing between individuals, legal entities and other organizations and such provisions shall not apply to disputes arising from related
financial services, such as disbursement of loans, provided by financial institutions and their branches established with the approval
of the financial regulatory authorities to engage in loan businesses. Since our funding partners in loan recommendation business are commercial
banks in China, the disputes related to loan recommendation arising from funding partners and borrowers shall not be regulated by the
Private Lending Judicial Interpretations 2020. However, the disputes arising from the existing loan that we recommended before the end
of 2017 shall comply with the Private Lending Judicial Interpretations 2015 and 2020. Even if the individual lenders of the existing loans
we recommended before the end of 2017 are required to lower the interest rate of the loans to quadruple one-year LPR by the regulatory
authorities or the courts, our business operation will not be affected. Because we have already collected our service fee and there is
no explicit provisions that require us to return to borrowers the amount of our service fee that exceeds the quadruple one-year LPR.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 20pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 83; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->77<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Regulations on Illegal Fund-Raising</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Circular on Relevant Issues Concerning the
Penalty on Illegal Fund-Raising was issued by the General Office of the State Council in July 2007, and the Regulation on the Prevention
and Disposition of Illegal Fund-raising Practices was promulgated by the State Council in December 2020 and became effective on May 1,
2021, explicitly prohibit illegal public fund-raisings. In accordance with the aforementioned regulations, the following are the key elements
of illegal public fund-raising: (i) the pooling of funds from unspecified objects, (ii) by promise to repay principal and interest or
provide other investment returns, (iii) without the permit of the financial administrative department under the State Council in accordance
with law or in violation of financial regulations of the State.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2010, the Supreme People&#8217;s Court
promulgated the Judicial Interpretations to Issues Concerning Applications of Laws for Trial of Criminal Cases on Illegal Fund-Raising,
which sets up the criteria, criminal charges and the punishment on illegal fund-raising. On February 23, 2022, the Supreme People&#8217;s
Court published the &#8220;Promulgated Interpretation of the Supreme People&#8217;s Court on Several Issues Concerning the Specific Application
of Law in the Trial of Criminal Cases of Illegal Fundraising&#8221;, which became effective on March 1 2022 as an amendments to the 2010
judicial interpretation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Through our loan recommendation business, we provide
loan recommendation services to connect qualified borrowers with prospective lenders, who are our funding partners. Our services do not
involve raising funds from borrowers or the lenders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Future Regulation Development Related to Loan Recommendation
Services</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The State Council released the Guiding Opinions
on Promoting the Standardized and Healthy Development of the Platform Economy (&#12298;&#20851;&#20110;&#20419;&#36827;&#24179;&#21488;&#32463;&#27982;&#35268;&#33539;&#20581;&#24247;&#21457;&#23637;&#30340;&#25351;&#23548;&#24847;&#35265;&#12299;)
on August 1, 2019, which requires the implementation and improvement of comprehensive and prudent supervision of financial platforms,
promotes the establishment and improvement of a new regulatory mechanism tailored to specific features of financial platforms, and promotes
a fair, competitive market environment for financial platforms. The Research Group of China Institute of Inclusive Finance at Remin University
of China believes that the opinions provide a clear regulatory framework for governmental authorities to regulate loan recommendation
services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the opinions, the research
group believes that the central regulatory authorities, such as CBRC, shall supervise the overall the regulation of loan recommendation
services on a macro level, formulating nationwide unified regulatory principles, and provide specific regulatory requirements, which shall
be implemented by other governmental authorities at lower level.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As the interpretation of the aforementioned regulation
is still being debated and there has not been official promulgation and implementation of any law or regulation specifically addressing
regulatory issues surrounding loan recommendation services, the opinions as discussed above do not have an adverse impact our loan recommendation
business. However, in light of the evolving and developing nature of the regulatory regime regarding loan recommendation services, it
is probable that the Chinese government will adopt regulations and policies that may temporarily restrain the scale and growth of our
loan recommendation services in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Regulations on Third-Party Payment Services, which Include Prepaid
Payment Network Services</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Overview</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In China, a payment institution shall be subject
to the supervision and management by PBOC in accordance with relevant law and regulations. Non-financial institutions and individuals
shall not engage in any kind of third-party payment business without the approval of the PBOC. The PBOC shall, under the supervision of
the State Council, implement monetary policies, perform its functions, take precautions against systematic financial risks, and maintain
financial stability of the general economic environment in China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Payment &amp; Clearing Association of China
(&#8220;PCAC&#8221;), approved by the State Council and Ministry of Civil Affairs of the People&#8217;s Republic of China (&#8220;Ministry
of Civil Affairs&#8221;), is a self-disciplined organization of the PRC payment and clearing service industry. The operations of the PCAC
are governed by the PBOC. Its purpose is to ensure various payment institutions&#8217; compliance with the industry standards of the payment
and clearing service industry.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Payment License</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the Administrative Measures
of People&#8217;s Bank of China on Payment Services Provided by Non-financial Institutions (Order of the People&#8217;s Bank of China
(2010) No. 2, &#8220;Order No.2&#8221;) (&#20013;&#22269;&#20154;&#27665;&#38134;&#34892;&#20196;[2010]&#31532;2&#21495;&#12298;&#38750;&#37329;&#34701;&#26426;&#26500;&#25903;&#20184;&#26381;&#21153;&#31649;&#29702;&#21150;&#27861;&#12299;)
promulgated by the PBOC on June 14, 2010 and amended in 2020, the payment services of non-financial institutions in the PRC refers to
all or part of the following transfer services of monetary capital, which are provided by non-financial institutions as an intermediary
between payees and payers: (i) online payment; (ii) issuance and acceptance of prepaid card; (iii) bank card acceptance; and (iv) other
payment services as specified by the PBOC. Online payment refers to the act of transferring monetary capital between payers and payees
through public and private networks, including money transfer, payment via the Internet, payment by mobile phone, payment by fixed-line
telephone, digital television payment, etc. Prepaid cards refer to the advanced value issued for the purpose of making profit and used
to purchase commodities or services of business entities beyond the issuer, including prepaid cards issued in the form of physical card
and digital password. The bank card acceptance refers to the act of collecting monetary capital for business activities involving bank
cards through terminals of point-of-sells (POS).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 84; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->78<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to Order No.2, to provide payment services,
a non-financial institution shall obtain a &#8220;Payment License&#8221; to qualify as a paying institution. A paying institution shall
conduct operation activities within the business scope approved in the &#8220;Payment License&#8221; and may not carry out any business
beyond the approved scope nor outsource its payment business to other parties. A paying institution may not assign, lease, or lend the
&#8220;Payment License.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to our Payment License and the approved
business scope of the Payment License, we are allowed to provide prepaid cards payment services and related business services. Our Payment
License was issued by the PBOC on July 20, 2017. The Payment License is valid from July 20, 2017 to July 19, 2022. On June 27, 2022, the
PBOC renewed our Payment License, which is valid until July 19, 2027.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Regulations on Foreign Investment in the Payment Services</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to Order No. 2, subject to the State
Council&#8217;s approval, the PBOC shall stipulate requirements for the business scope of a foreign-invested payment institution and the
qualifications and the capital contribution ratio of the payment institution&#8217; foreign investors. According to the Announcement No.
7 of the People&#8217;s Bank of China (2018) (&#20013;&#22269;&#20154;&#27665;&#38134;&#34892;&#20844;&#21578;(2018)&#31532;7&#21495;&#12298;&#20851;&#20110;&#22806;&#21830;&#25237;&#36164;&#25903;&#20184;&#26426;&#26500;&#26377;&#20851;&#20107;&#23452;&#20844;&#21578;&#12299;)
(&#8220;No. 7 Announcement&#8221;), which was issued by the PBOC and became effective on March 19, 2018, upon the State Council&#8217;s
approval, the relevant requirements of the foreign-invested payment institutions include the following: (I) An overseas institution intending
to provide electronic payment services for domestic transactions and cross-border transactions of domestic entities in the PRC shall establish
a foreign-invested enterprise in the PRC and obtain a Payment License in accordance with the criteria and procedures stipulated in Order
No. 2 of the PBOC. (II) A foreign-invested payment institution shall possess a secured and standardized business system and a disaster
recovery system in the PRC, so the payment institution is able to independently complete payment transactions; (III) Storage, processing
and analysis of personal information and financial information collected and generated in the PRC by a foreign-invested payment institution
shall be carried out in China. Where it is necessary to transmit such information overseas for the purpose of processing cross-border
transactions, the transmission shall comply with relevant laws and administrative regulations and requirements of relevant regulatory
authorities. The foreign-invested payment institution shall require the overseas institution to satisfy its confidentiality obligations
and obtain information owners&#8217; consents. (IV) A foreign-invested payment institution must ensure that its corporate governance,
routine business operation, risk management, fund processing, deposit of reserves and contingency arrangements comply with the regulatory
requirements of the PBOC regarding non-bank payment institutions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No. 7 Announcement only sets out the general requirements
for overseas institutions applying for Payment Licenses, but has not promulgated any detailed requirements and measures for domestic institutions
which already obtained Payment Licenses and, through internal reorganization, have become foreign-invested payment institutions. Qingdao
Buytop, the VIE, already obtained its Payment License prior to entering into a series of VIE Agreements with Sentage WFOE. Although we
believe that No.7 Announcement does not have any material adverse impact on the overall business of Qingdao Buytop, there are uncertainties
as to how Announcement No.7 will be interpreted and implemented.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Regulations on Prepaid Cards Business of Payment Institutions</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Order No. 2 regulates the prepaid cards (issued
by magnetic stripe, chip and other technologies in the form of cards, passwords, etc.) issued by non-financial institutions for profit
purpose and used by card owners to purchase goods and(or) services provided by parties other than the card issuer into the regulatory
scope of the payment system. Because we issue prepaid cards and provide prepaid card related services, through the VIE entity, Qingdao
Buytop, order No.2 applies to us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with Implementation Rules for the
Administrative Measures on Payment Services Provided by Non-financial Institutions (&#12298;&#38750;&#37329;&#34701;&#26426;&#26500;&#25903;&#20184;&#26381;&#21153;&#31649;&#29702;&#21150;&#27861;&#23454;&#26045;&#32454;&#21017;&#12299;)
introduced by PBOC on December 1, 2010, and revised on June 2, 2020, January 1, 2021, and September 1, 2021, the prepaid cards stated
in Order No. 2 do not include the following types: (i) prepaid cards used for the payment of social security only; (ii) prepaid cards
used for public transport only; (iii) prepaid cards used for the payment of telephone and other telecommunication charges only; and (iv)
prepaid cards issued to purchase the card issuer&#8217;s commodities and services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Notice on Regulating the Management of Commercial
Prepaid Cards, which was issued by the PBOC, the Ministry of Supervision of the People&#8217;s Republic of China, and Other Departments,
and shared by the General Office of the State Council on May 23, 2011, (GBF [2011] No.25, &#8220;Notice No.25&#8221;) (&#12298;&#22269;&#21153;&#38498;&#21150;&#20844;&#21381;&#36716;&#21457;&#20154;&#27665;&#38134;&#34892;&#30417;&#23519;&#37096;&#31561;&#37096;&#38376;&#20851;&#20110;&#35268;&#33539;&#21830;&#19994;&#39044;&#20184;&#21345;&#31649;&#29702;&#24847;&#35265;&#30340;&#36890;&#30693;&#12299;),
sets forth regulatory bodies&#8217; opinions on strengthening the regulatory administration over issuers of commercial prepaid cards,
enforcing financial discipline, preventing financial risks, and promoting anti-corruption and promoting transparent governance. Notice
No.25 has confirmed the classification of commercial prepaid cards specified in the implementation rules specified above and approved
the category-based supervision of prepaid cards. Pursuant to Notice No.25, prepaid cards are further divided into two categories based
on the characteristics of non-financial institution issuers, including (i) multi-purpose prepaid cards, which can be used across regions,
industries, and legal persons, and (ii) single-purpose prepaid cards, which can be used to purchase goods and services provided by the
enterprise acting as the card issuer or other commercial enterprises affiliated with the card issuer. Pursuant to Notice No.25, the PBOC
shall strengthen supervision over the opening and use of deposit accounts designated for the provision of multi-purpose prepaid cards.
The Ministry of Commerce of the People&#8217;s Republic of China and relevant commerce administration authorities shall take effective
measures to supervise prepayment funds involving single-purpose prepaid cards and prevent relevant risks.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 27, 2012, the PBOC promulgated the
Administrative Measures for Prepaid Cards Business of Payment Institutions (Announcement of the People&#8217;s Bank of China [2012] No.12,
&#8220;Announcement No.12&#8221;) (&#12298;&#25903;&#20184;&#26426;&#26500;&#39044;&#20184;&#21345;&#19994;&#21153;&#31649;&#29702;&#21150;&#27861;&#12299;),
which fully implemented the real name registration system, non-cash card purchase system, and quota issuance system for prepaid card business
of payment institutions in accordance with the requirements of Notice No.25. Pursuant to Announcement No.12, the PBOC and its branches
shall carry out off-site supervision and on-site inspection of payment institutions&#8217; prepaid card business activities, internal
control system, and risk management capabilities in accordance with relevant laws and regulations. A payment institution shall obtain
the &#8220;Payment License&#8221; issued and approved by the PBOC in order to engage in the business of &#8220;issuing and(or) accepting
prepaid cards.&#8221; Payment institutions shall strictly implement regulatory provisions pertaining to managing payment institution clients&#8217;
funds and fulfill their obligations related to anti-money laundering and anti-terrorist financing.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 85; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->79<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Our Payment License issued
by the PBOC satisfies the Payment License requirement of Announcement No. 12. We have obtained qualifications necessary for providing
prepaid payment network services, which is a subcategory of third-party payment services, in accordance with existing laws, regulations
and regulatory requirements regarding third-party payment services in China. In light of the evolving and changing nature of the payment
industry, it is probable that we will still need to obtain other permits or approvals for our prepaid payment network services business
in the future.</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Regulations on Detection and Authentication Management of Payment
Business System</i></b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 7pt"><b><i>&#160;</i></b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Regulations on Inspection and Verification
of Non-financial Institutions Payment Service Business System (&#12298;&#38750;&#37329;&#34701;&#26426;&#26500;&#25903;&#20184;&#26381;&#21153;&#19994;&#21153;&#31995;&#32479;&#26816;&#27979;&#35748;&#35777;&#31649;&#29702;&#35268;&#23450;&#12299;)
was promulgated by the PBOC on June 16, 2011. The regulations came into effect on the same day. The regulations specified, among other
requirements, safety and management requirements for third-party payment institution business system and communication system. Pursuant
to the regulations, the PBOCs is responsible for approving and managing regulatory activities related to inspecting and verifying the
qualifications of payment institutions. Certification institutions, which are approved by relevant regulatory authorities and certified
and authorized by the PBOC, are qualified to inspect the business system of third-party payment institutions and issue certifications
for those qualified payment institutions after the inspection.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Through the VIE entity, Qingdao Buytop, we own
the Technical Certification of Payment Service Facilities of Non-banking Payment Institutions (registration number: CFNR201801370551),
which was issued by Beijing Zhongjin Guosheng Authentication Co., Ltd., on May 8, 2018 for three years, which was subsequently renewed
to be valid until December 4, 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Regulations on Anti-Money Laundering and Anti-Terrorism Financing</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Anti-Money Laundering Law of the People&#8217;s
Republic of China (&#8220;Anti-Money Laundering Law&#8221;)(&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#21453;&#27927;&#38065;&#27861;&#12299;)
was promulgated by the Standing Committee of the National People&#8217;s Congress on October 31, 2006 and came into force on January 1,
2007. The Anti-Money Laundering Law stipulates that specific non-financial institutions shall take precautionary and monitoring measures
and comply with their anti-money laundering obligations. The Anti-Money Laundering Law includes establishing a sound client identification
system, client identification information and transaction record-keeping system, block transaction and suspicious transaction reporting
system. According to Order No. 2 of PBOC, a payment institution that has obtained the Payment License, such as the VIE entity, Qingdao
Buytop, shall comply with applicable regulations in the Anti-Money Laundering Law and fulfill its anti-money laundering obligations. The
PBOC and its branches shall conduct on-site and non-site inspections on the payment institution to periodically review and evaluate anti-money
laundering measures the payment institution has taken to comply with the Anti-Money Laundering Law.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Measures for Anti-Money Laundering and Anti-Terrorism
Financing of Payment Institutions (&#8220;YF Decree No. 54&#8221;)( &#38134;&#21457;54&#21495;&#20196;&#12298;&#25903;&#20184;&#26426;&#26500;&#21453;&#27927;&#38065;&#21644;&#21453;&#24656;&#24598;&#34701;&#36164;&#31649;&#29702;&#21150;&#27861;&#12299;),
promulgated by the PBOC on March 5, 2012, came into force on the same day. YF Decree No. 54 stipulates that a payment institution which
has obtained the Payment License shall carry out the obligations of anti-money laundering and anti-terrorism financing in accordance with
the law. The main aspects include client identification, client identification information, transaction record-keeping, suspicious transaction
reports, anti-money laundering and anti-terrorism financing surveys, etc. The Management Measure on Large and Suspicious Transactions
&#8220;Yin Fa No. 3&#8221;) (&#38134;&#21457;3&#21495;&#20196;&#12298;&#37329;&#34701;&#26426;&#26500;&#22823;&#39069;&#20132;&#26131;&#21644;&#21487;&#30097;&#20132;&#26131;&#25253;&#21578;&#31649;&#29702;&#21150;&#27861;&#12299;),
which was amended in 2018, was promulgated by the PBOC on December 28, 2016 and came into effect on July 1, 2017. Yin Fa No. 3 stipulates
that payment institutions shall fulfill their obligations of reporting large transactions and suspicious transactions and formulate internal
management systems and operational regulations and procedures for reporting large transactions and suspicious transactions to establish
a sound monitoring system for large transactions and suspicious transactions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The Administrative Measures for the Reporting
of Major Events by Non-bank Payment Institutions</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">On July 20 2021,The People&#8217;s
Bank of China Promulgated &#8220;the Administrative Measures for the Reporting of Major Events by Non-bank Payment Institutions&#8221;,
which became effective on September, 1 2021. This measure requires that Branch offices of the PBC shall, in concert with the payment institutions
(including branch companies) within their respective jurisdictions, establish a reporting mechanism for major events. This measure requires
payment institutions to report each major event in a timely, truthful, accurate, and complete manner, and also defines the situation of
the scope of major event risk or emergency occurs. When relative major event happens, the company, as a Non-bank Payment Institution,
shall submit a written report to the local branch office of The People&#8217;s Bank of China within a certain period. If the Non-bank
Payment Institution did not report in the manner of this measure, the People&#8217;s Bank of China or any of its branch offices shall
order it to make rectification within a prescribed time limit and may take regulatory measures, such as regulatory notice, and may impose
punishments on it in accordance with the Administrative Measures on Payment Services Provided by Non-Financial Institutions, and a warning
or a fine of between 10,000 yuan and 30,000 yuan may be given.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Depository Measures for Clients&#8217; Provisions
of Non-bank Payment Institutions</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 30pt"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 19, 2021, People&#8217;s Bank of China
promulgated &#8220;Depository Measures for Clients&#8217; Provisions of Non-bank Payment Institutions&#8221;, which became effective on
March 1, 2021. This measure regulates the centralized depository of customer reserves after the centralized deposit of reserves. The provisions
on the storage, use and transfer of reserve funds have been refined by this measure. This measure also clarified the corresponding reserve
management responsibilities of the People&#8217;s Bank of China and its branches, clearing institutions, and reserve banks, set the penalty
standards for customer reserve violations, and strengthened the supervision of customer reserve funds. The clients&#8217; provisions received
by non-bank payment institutions shall be directly deposited in full amount to the People&#8217;s Bank of China or qualified commercial
banks. The clients&#8217; provisions received directly by non-bank payment institutions due to the issuance of prepaid cards or the top
up of prepaid cards shall be deposited in a unified manner into the accounts for centralized deposit and management of provisions through
the dedicated deposit accounts for prepaid cards. The clients&#8217; provisions can only be used for the payment service entrusted by
clients and other circumstances as prescribed by these Measures.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 30pt"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 86; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->80<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Notice on Further Preventing and Dealing
with Speculation Risks in Virtual Currency Trading</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 30pt"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 15 2019, the People&#8217;s Bank
of China, and other relevant PRC governmental authorities jointly promulgated &#8220;Notice on Further Preventing and Dealing with Speculation
Risks in Virtual Currency Trading&#8221;, which became effective on the same day. According to the measure, the business activities related
to virtual currencies are illegal financial activities. Financial institutions and non-banking payment institutions shall not provide
account opening, fund transfer or clearing and settlement services for the business activities related to virtual currencies, or include
virtual currencies into the scope of collaterals, nor shall they carry out insurance business related to virtual currencies, or include
virtual currencies into the scope of insurance liability. Any violation of laws and regulations detected shall be reported to the relevant
authorities in a timely manner. The company should not provide any service in accordance with virtual currency.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Data Security Law of the People&#8217;s
Republic of China</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Regulations relating to Information Security
and Privacy Protection</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Internet content in China is regulated and restricted
from a state security standpoint. On December 28, 2000, the SCNPC enacted the Decisions on Maintaining Internet Security (&#12298;&#20840;&#22269;&#20154;&#27665;&#20195;&#34920;&#22823;&#20250;&#24120;&#21153;&#22996;&#21592;&#20250;&#20851;&#20110;&#32500;&#25252;&#20114;&#32852;&#32593;&#23433;&#20840;&#30340;&#20915;&#23450;&#12299;),
later amended on August 27, 2009, which subject violators to criminal punishment in China for any effort to: (1) use the Internet to market
fake and substandard products or carry out false publicity for any commodity or service; (2) use the Internet for the purpose of damaging
the commercial goodwill and product reputation of any other person; (3) use the Internet for the purpose of infringing on the intellectual
property of any person; (4) use the Internet for the purpose of fabricating and spreading false information that affects the trading of
securities and futures or otherwise jeopardizes the financial order; or (5) create any pornographic website or webpage on the Internet,
provide links to pornographic websites, or disseminate pornographic books and magazines, movies, audio-visual products, or images. Pursuant
to the Administrative Measures for the Security Protection of Computer Information Networks Linked to the Internet (&#12298;&#35745;&#31639;&#26426;&#20449;&#24687;&#32593;&#32476;&#22269;&#38469;&#32852;&#32593;&#23433;&#20840;&#20445;&#25252;&#31649;&#29702;&#21150;&#27861;&#12299;)
which was promulgated by the Ministry of Public Security (the &#8220;MPS&#8221;) on December 16, 1997 and later amended and became effective
on January 8, 2011, the Internet is prohibited to be used in ways which, among other things, would result in a leakage of state secrets
or a spread of socially destabilizing content. On December 13, 2005, the MPS promulgated the Provisions on the Technical Measures for
the Protection of the Security of the Internet (&#12298;&#20114;&#32852;&#32593;&#23433;&#20840;&#20445;&#25252;&#25216;&#26415;&#25514;&#26045;&#35268;&#23450;&#12299;)
which require internet service providers to take proper measures including anti-virus, data back-up and other related measures, to keep
records of certain information about its users (including user registration information, log-in and log-out time, IP address, content
and time of posts by users) for at least 60 days, and to detect illegal information, stop transmission of such information, and keep relevant
records. If an internet information service provider violates these measures, the MPS and the local public security bureaus may recommend
that the original certificate examination, approval and issuing organizations revoke its operating license and shut down its websites.
Pursuant to the Circular of the MPS, the State Secrecy Bureau, the State Cipher Code Administration and the Information Office of the
State Council on Printing and Distributing the Administrative Measures for the Graded Protection of Information Security (&#12298;&#20844;&#23433;&#37096;&#12289;&#22269;&#23478;&#20445;&#23494;&#23616;&#12289;&#22269;&#23478;&#23494;&#30721;&#31649;&#29702;&#23616;&#12289;&#22269;&#21153;&#38498;&#20449;&#24687;&#21270;&#24037;&#20316;&#21150;&#20844;&#23460;&#20851;&#20110;&#21360;&#21457;&#12296;&#20449;&#24687;&#23433;&#20840;&#31561;&#32423;&#20445;&#25252;&#31649;&#29702;&#21150;&#27861;&#12297;&#30340;&#36890;&#30693;&#12299;)
which was promulgated on June 22, 2007, the state shall, by formulating nationally effective administrative norms and technical standards
for the graded protection of information security, organize citizens, legal persons and other organizations to grade information systems
and protect their security, and supervise and administer the graded protection work. The security protection grade of an information system
may be classified into the five grades. To newly build an information system of Grade II or above, its operator or user shall, within
30 days after it is put into operation, handle the record-filing procedures at the local public security organ at the level of municipality
divided into districts or above of its locality.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PRC governmental authorities have enacted laws
and regulations on internet use to protect personal information from any unauthorized disclosure. On December 28, 2012, the SCNPC promulgated
the Decision on Strengthening Network Information Protection (&#12298;&#20851;&#20110;&#21152;&#24378;&#32593;&#32476;&#20449;&#24687;&#20445;&#25252;&#30340;&#20915;&#23450;&#12299;),
which became effective on the same day, to enhance the legal protection of information security and privacy on the Internet. On July 16,
2013, the Ministry of Industry and Information Technology of the PRC (the &#8220;MIIT&#8221;) promulgated the Provisions on Protection
of Personal Information of Telecommunication and Internet Users (&#12298;&#30005;&#20449;&#21644;&#20114;&#32852;&#32593;&#29992;&#25143;&#20010;&#20154;&#20449;&#24687;&#20445;&#25252;&#35268;&#23450;&#12299;)
to regulate the collection and use of users&#8217; personal information in the provision of telecommunication services and internet information
services in China. Telecommunication business operators and internet service providers are required to establish its own rules for collecting
and use of users&#8217; information and cannot collect or use users&#8217; information without users&#8217; consent. Telecommunication
business operators and internet service providers are prohibited from disclosing, tampering with, damaging, selling or illegally providing
others with, collected personal information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 10 2021, Standing Committee of the National
People&#8217;s Congress promulgated the &#8220;Data Security Law of the People&#8217;s Republic of China&#8221;, (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#20010;&#20154;&#20449;&#24687;&#20445;&#25252;&#27861;&#12299;),,
which became effective on September 1 2021. The law requires data collection to be carried out in a lawful and proper manner and stipulates
that for data protection purposes, data processing activities must be carried out based on a hierarchical protection system of data classification
and data security. According to this law, The outbound security management of important data collected and generated by operators of critical
information infrastructure during their operations within the territory of the People&#8217;s Republic of China shall be governed by the
provisions of the Cybersecurity Law of the People&#8217;s Republic of China, which is Conduct security assessments in accordance with
the measures formulated by the national cybersecurity and informatization department in conjunction with the relevant departments of the
State Council. Measures for the security management of the exit of important data collected and generated by other data processors during
their operations within the territory of the People&#8217;s Republic of China shall be formulated by the national cybersecurity and informatization
department in conjunction with the relevant departments of the State Council. Currently, China has not promulgated clear approval rules
or assessment requirements for the security management of data export by &#8220;other data processors&#8221;. Therefore, we currently
do not need to conduct security assessments or seek approval from relevant authorities under the Data Security Law.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 87; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->81<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cybersecurity Review Measures</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 7, 2016, the SCNPC published the Cyber
Security Law of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#32593;&#32476;&#23433;&#20840;&#27861;&#12299;),
or the Cyber Security Law, which took effect on June 1, 2017 and requires network operators to perform certain functions related to cyber
security protection and the strengthening of network information management. For instance, under the Cyber Security Law, network operators
of key information infrastructure shall store within the territory of the PRC all the personal information and important data collected
and produced within the territory of PRC and their purchase of network products and services that may affect national securities shall
be subject to national cybersecurity review.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 13, 2020, the Cyberspace Administration
of China and other departments issued Cybersecurity Review Measures (&#12298;&#32593;&#32476;&#23433;&#20840;&#23457;&#26597;&#21150;&#27861;&#12299;),
which took effect on June 1, 2020, to provide for more detailed rules regarding cybersecurity review requirements. On July 10, 2021, the
CAC issued the Circular on Seeking Comments on Cybersecurity Review Measures (Revised Draft for Comments) (the &#8220;Review Measures
Draft&#8221;).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 10, 2021, the CAC issued the Circular
on Seeking Comments on Cybersecurity Review Measures (Revised Draft for Comments) (the &#8220;Review Measures Draft&#8221;) (&#12298;&#32593;&#32476;&#23433;&#20840;&#23457;&#26597;&#21150;&#27861;&#65288;&#20462;&#35746;&#33609;&#26696;&#24449;&#27714;&#24847;&#35265;&#31295;&#65289;&#12299;),
which required, among others, in addition to any &#8220;critical information infrastructure operators (&#8220;CIIOs&#8221;),&#8221; any
&#8220;data processor&#8221; controlling personal information of no less than one million users which seeks to list in a foreign stock
exchange should also be subject to cybersecurity review.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 14, 2021, the CAC published the Network
Internet Data Protection Draft Regulations (draft for comments), (&#12298;&#32593;&#32476;&#25968;&#25454;&#23433;&#20840;&#31649;&#29702;&#26465;&#20363;&#65288;&#24449;&#27714;&#24847;&#35265;&#31295;&#65289;&#12299;),
and accepted public comments until December 13, 2021. The Network Internet Data Protection Draft Regulations provides that data processors
refer to individuals or organizations that autonomously determine the purpose and the manner of processing data. If a data processor that
processes the personal data of more than one million users intends to list overseas, it shall apply for a cybersecurity review. In addition,
data processors that process important data or are listed overseas shall carry out an annual data security assessment on their own or
by engaging a data security services institution, and the data security assessment report for the prior year should be submitted to the
local cyberspace affairs administration department before January 31 of each year.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Later on, December 28, 2021, the CAC and other
relevant PRC governmental authorities jointly promulgated the Cybersecurity Review Measures Transfer (&#12298;&#32593;&#32476;&#23433;&#20840;&#23457;&#26597;&#21150;&#27861;&#12299;),
which took effect on February 15, 2022. The Cybersecurity Review Measures provide that, in addition to CIIOs that intend to purchase Internet
products and services, net platform operators engaging in data processing activities that affect or may affect national security must
be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity Review Measures, a cybersecurity
review assesses potential national security risks that may be brought about by any procurement, data processing, or overseas listing.
The Cybersecurity Review Measures require that an online platform operator which possesses the personal information of at least one million
users must apply for a cybersecurity review by the CAC if it intends to be listed in foreign countries.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 7, 2022, the CAC published the Measures
for the Security Assessment of Outbound Data Transfer (&#12298;&#25968;&#25454;&#20986;&#22659;&#23433;&#20840;&#35780;&#20272;&#21150;&#27861;&#12299;),
which effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People&#8217;s Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file to the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data to abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than
1 million individuals transfers personal information to abroad&#65307;(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or&#65307;(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration. See &#8220;Item 3. Key Information&#8212;D. Risk Factor&#8212; Risks Related to Doing Business in China&#8212;<i>Recent
greater oversight by the Cyberspace Administration of China, or the CAC, over data security, particularly for companies seeking to list
on a foreign exchange, could adversely impact our business and our offering</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our PRC legal counsel, has advised us that, based
on its understanding of the Cyber Security Law, we are not a network operator and not subject to the requirements imposed to network operators
under the Cyber Security Law. However, as a non-network operator, like any individual or organization, we have an obligation under the
Cyber Security Law not to acquire personal information by stealing or through other illegal means, or illegally sell or provide personal
information to any other person. As of the date of this annual report, we are in material compliance with the Cyber Security Law, and
this law has not had a significant impact on our business operations. However, our PRC legal counsel has further advised us that there
are uncertainties as to how the Cyber Security Law will be interpreted or amended by competent authorities in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Regulations Relating to Employment, Social Insurance and Housing
Provident Fund</b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 7pt"><b>&#160;</b></span></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Employment</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the PRC Labor Law, or the Labor Law,
which was promulgated by the Standing Committee of the National People&#8217;s Congress, or the SCNPC, on July 5, 1994, came into effect
on January 1, 1995, and was amended on August 27, 2009 and December 29, 2018, an employer shall develop and improve its rules and regulations
to safeguard the rights of its employees. An employer shall establish and develop labor safety and health systems, stringently implement
national protocols and standards on labor safety and health, get employees to receive labor safety and health education, guard against
labor accidents and reduce occupational hazards. Labor safety and health facilities must comply with the relevant national standards.
An employer must provide employees with the necessary labor protection gear that complies with labor safety and health conditions stipulated
under national regulations, and provide regular health examinations for employees that are engaged in work with occupational hazards.
Employees engaged in special operations must receive specialized training and obtain pertinent qualifications. An employer shall develop
a vocational training system. Vocational training funds shall be set aside and used in accordance with national regulations, and vocational
training for employees shall be carried out systematically based on the actual conditions of the Company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 88; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->82<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Labor Contract Law of the PRC, which was promulgated
by the SCNPC on June 29, 2007, amended on December 28, 2012, and came into effect on July 1, 2013, combined with the Implementation Regulations
on Labor Contract Law, which was promulgated and became effective September 18, 2008, regulate the parties to labor contracts, namely
employers and employees, and contain specific provisions relating to the terms of labor contracts. Under the Labor Contract Law and the
Implementation Regulations on Labor Contract Law, a labor contract must be made in writing. An employer and an employee may enter into
a fixed-term labor contract, an un-fixed term labor contract, or a labor contract that concludes upon the completion of certain work assignments,
after reaching agreement upon due negotiations. An employer may legally terminate a labor contract and dismiss its employees after reaching
agreement upon due negotiations with its employees or by fulfilling the statutory conditions. Where a labor relationship has already been
established without a written labor contract, the written labor contracts shall be entered into within one month from the date on which
the employee commences working.</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;Social Insurance</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Law on Social Insurance of the PRC, which
was promulgated on October 28, 2010, and became effective on July 1, 2011 and was amended on December 29, 2018, has established social
insurance systems of basic pension insurance, unemployment insurance, maternity insurance, work injury insurance and basic medical insurance,
and has elaborated in detail the legal obligations and liabilities of employers who do not comply with relevant laws and regulations on
social insurance.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the Interim Regulations on the Collection
and Payment of Social Insurance Premiums, the Regulations on Work Injury Insurance, the Regulations on Unemployment Insurance and the
Trial Measures on Employee Maternity Insurance of Enterprises, enterprises in the PRC shall provide benefit plans for their employees,
which include basic pension insurance, unemployment insurance, maternity insurance, work injury insurance and basic medical insurance.
An enterprise must provide social insurance by going through social insurance registration with local social insurance authorities or
agencies, and shall pay or withhold relevant social insurance premiums for or on behalf of employees.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Housing Provident Fund</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the Administrative Regulations on
the Administration of the Housing Provident Fund, which was promulgated and became effective on April 3, 1999, and was amended on March
24, 2002 and March 24, 2019, housing provident fund contributions paid and deposited both by employees and their unit employer shall be
owned by the employees.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A unit employer shall undertake registration of
payment and deposit of the housing provident fund in the housing provident fund management center and, upon verification by the housing
provident fund management center, open a housing provident fund account on behalf of its employees in a commissioned bank. Employers shall
timely pay and deposit housing provident fund contributions in the full amount and late or insufficient payments shall be prohibited.
With respect to unit employers who violate the regulations hereinabove and fail to complete housing provident fund payment and deposit
registrations or open housing provident fund accounts for their employees, such unit employers shall be ordered by the housing provident
fund administration center to complete such procedures within a designated period. Those who fail to complete their registrations within
the designated period shall be subject to a fine of between RMB10,000 and RMB50,000. When unit employers are in breach of these regulations
and fail to pay deposit housing provident fund contributions in the full amount as they fall due, the housing provident fund administration
center shall order such unit employers to pay within a prescribed time limit, failing which an application may be made to a people&#8217;s
court for compulsory enforcement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Regulations relating to Foreign Investment</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 27, 2021, the Special Administrative
Measures for the Access of Foreign Investment (Negative List) (&#22806;&#21830;&#25237;&#36164;&#20934;&#20837;&#29305;&#21035;&#31649;&#29702;&#25514;&#26045;(&#36127;&#38754;&#28165;&#21333;)
(2021&#24180;&#29256;)) (the &#8220;Negative List 2021&#8221;), which was promulgated by NDRC and MOFCOM and became effective on January
1, 2022, replaced the Negative List 2020. Industries listed in the Negative List 2021 are divided into two categories with respect to
foreign investment: restricted and prohibited. Industries not listed in the Negative List are generally deemed as falling under a third
&#8220;permitted&#8221; category and are generally open to foreign investment unless otherwise specifically restricted by other PRC regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our principal businesses are precluded from the
Negative List 2021 and is thus within a permitted industry for foreign investment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Regulations relating to Foreign-Owned Enterprises</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The establishment, operation and management of
corporate entities in China are governed by the Company Law of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#20844;&#21496;&#27861;&#12299;)
(the &#8220;PRC Company Law&#8221;), which was promulgated by the SCNPC on December 29, 1993 and last amended and became effective on
October 26, 2018. Under the PRC Company Law, companies are generally classified into two categories, i.e., limited liability companies
and joint stock limited companies. The PRC Company Law also applies to foreign-invested limited liability companies. According to the
PRC Company Law, any stipulations by other PRC laws governing foreign investment shall prevail over the PRC Company Law.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Law on Wholly Foreign-owned Enterprises
of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#22806;&#36164;&#20225;&#19994;&#27861;&#12299;) (the &#8220;Law
on Wholly Foreign-owned Enterprises of the PRC&#8221;), which was promulgated by the SCNPC on April 12, 1986, last amended on September
3, 2016 and became effective on October 1, 2016, where the establishment of wholly foreign-owned enterprises does not involve the implementation
of special access administrative measures prescribed by the state, the establishment, breakup, merger, or any other major change and the
operation period of such enterprises are subject to record-filing administration.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 89; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->83<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Implementing Rules for the Law on Wholly Foreign-owned
Enterprises of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#22806;&#36164;&#20225;&#19994;&#27861;&#23454;&#26045;&#32454;&#21017;&#12299;)
(the &#8220;Implementing Rules on Wholly Foreign-owned Enterprises&#8221;) was promulgated by the State Council on December 12, 1990,
then was amended on April 12, 2001 and February 19, 2014, and became effective on March 1, 2014. According to the Implementing Rules on
Wholly Foreign-owned Enterprises, industries in which the establishment of wholly foreign-owned enterprises is prohibited or restricted
shall be regulated in accordance with the provisions of the State about foreign investment orientation and the Catalogue.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Law on Wholly Foreign-owned Enterprises of
the PRC and the Implementing Rules on Wholly Foreign-owned Enterprises have been repealed by the Foreign Investment Law of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#22806;&#21830;&#25237;&#36164;&#27861;&#12299;
(the &#8220;Foreign Investment Law&#8221;), which was adopted by the National People&#8217;s Congress on March 15, 2019 and came into
effect on January 1, 2020. According to the Foreign Investment Law, the State shall implement the management systems of pre-establishment
national treatment and negative list for foreign investment. The pre-establishment national treatment refers to the treatment given to
foreign investors and their investments during the investment access stage, which is not lower than that given to their domestic counterparts.
The negative list refers to special administrative measures for the access of foreign investment in specific fields as stipulated by the
State. The State shall give national treatment to foreign investment beyond the negative list. The organization form, institutional framework
and standard of conduct of a foreign-funded enterprise shall be subject to the provisions of the PRC Company Law and the Partnership Enterprise
Law of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#21512;&#20249;&#20225;&#19994;&#27861;&#12299;) and
other laws. Foreign investors shall not invest in any field forbidden by the negative list for access of foreign investment. For any field
restricted by the negative list, foreign investors shall conform to the investment conditions as required in the negative list, and fields
not included in the negative list shall be managed under the principle that domestic investment and foreign investment shall be treated
uniformly.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Law on Sino-Foreign Equity Joint Ventures
of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#20013;&#22806;&#21512;&#36164;&#32463;&#33829;&#20225;&#19994;&#27861;&#12299;),
the Law on Wholly Foreign-owned Enterprises of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#22806;&#36164;&#20225;&#19994;&#27861;&#12299;)
and the Law on Sino-Foreign Cooperative Joint Ventures of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#20013;&#22806;&#21512;&#20316;&#32463;&#33829;&#20225;&#19994;&#27861;&#12299;)
were repealed simultaneously when the Foreign Investment Law came into effect on January 1, 2020, and foreign-funded enterprises which
were established in accordance with such laws before the implementation of the Foreign Investment Law may retain their original organization
forms and other aspects for five years upon the implementation hereof.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Regulations on Tax</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Corporate Income Tax</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the Corporate Income Tax Law of the
People&#8217;s Republic of China (&#12298;&#20225;&#19994;&#25152;&#24471;&#31246;&#27861;&#12299;), corporate income tax shall be payable
by a resident enterprise for income derived from or accruing in or outside China, and the tax rate shall be 25%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the Notice of the State Council
on Implementation of Transitional Corporate Income Tax Incentives (&#12298;&#20851;&#20110;&#23454;&#26045;&#20225;&#19994;&#25152;&#24471;&#31246;&#36807;&#28193;&#20248;&#24800;&#25919;&#31574;&#30340;&#36890;&#30693;&#12299;)
issued on December 26, 2007, enterprises which had benefited from the tax rate preferential policies provided by the former corporate
income tax law shall be gradually subject to the new statutory tax rate scheme over a five-year period commencing on the first day of
implementing the Corporate Income Tax Law of the People&#8217;s Republic of China (the &#8220;Corporate Income Tax Law&#8221;), which
became effective on January 1, 2008. For enterprises which were entitled to regular corporate income tax exemption and reduction incentives
shall, following the implementation of the Corporate Income Tax Law, continue to be entitled to such tax incentives until such exemption
and incentive periods expire pursuant to previous tax laws and relevant administrative regulations. For enterprises which did not previously
enjoy tax reduction incentives due to non-profitability, the tax incentive period specified in the notice shall commence in 2008.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the Corporate Income Tax Law of the
People&#8217;s Republic of China (&#12298;&#20225;&#19994;&#25152;&#24471;&#31246;&#27861;&#12299;), enterprises lawfully incorporated
pursuant to the laws of a foreign country (region) but whose actual management functions are conducted in China will need to pay corporate
income tax for income derived from or accruing in or outside China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the regulations on corporate
income tax, the 25% corporate income tax rate is applicable to the VIEs, including Daxin Wealth, Daxin Zhuohui, Zhenyi and Qingdao Buytop.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Value-Added Tax (the &#8220;VAT&#8221;) and Business Tax</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Provisional Regulations on Value-Added
Tax of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#22686;&#20540;&#31246;&#26242;&#34892;&#26465;&#20363;&#12299;),
or the VAT Regulations, which were promulgated by the State Council on December 13, 1993, and amended on November 10, 2008, February 6,
2016, and November 19, 2017, respectively, and the Implementation Rules of the Provisional Regulations on Value Added Tax of the PRC (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#22686;&#20540;&#31246;&#26242;&#34892;&#26465;&#20363;&#23454;&#26045;&#32454;&#21017;&#12299;)
promulgated by the Ministry of Finance of the People&#8217;s Republic of China (&#8220;MOF&#8221;) on December 25, 1993 and amended on
December 15, 2008 and October 28, 2011, respectively, entities and individuals that sell goods or labor services of processing, repair
or replacement, sell services, intangible assets, or immovables, or import goods within the territory of the People&#8217;s Republic of
China are taxpayers of value-added tax. The VAT rate is 17% for taxpayers selling goods, labor services, or tangible movable property
leasing services or importing goods, except otherwise specified; 11% for taxpayers selling goods, labor services, or tangible movable
property leasing services or importing goods, except otherwise specified; 6% for taxpayers selling services or intangible assets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the Notice of the Ministry
of Finance and the State Administration of Taxation on Full Launch of the Pilot Scheme on Levying Value-added Tax in Place of Business
Tax (&#12298;&#36130;&#25919;&#37096;&#12289;&#22269;&#23478;&#31246;&#21153;&#24635;&#23616;&#20851;&#20110;&#20840;&#38754;&#25512;&#24320;&#33829;&#19994;&#31246;&#25913;&#24449;&#22686;&#20540;&#31246;&#35797;&#28857;&#30340;&#36890;&#30693;&#12299;),
which was released by MOF and State Administration of Taxation of People&#8217;s Republic of China (&#8220;SAT&#8221;) on March 23, 2016
and became effective on May 1, 2016, the pilot scheme on levying value-added tax in place of business tax shall be launched nation-wide.
All business tax taxpayers in the construction industry, real estate industry, financial industry, living service industry, etc., shall
be included in the scope of the pilot scheme and subject to value-added tax instead of business tax.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 90; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->84<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the applicable regulations
on VAT, a 6% VAT rate is applicable to the VIEs, Daxin Wealth, Daxin Zhuohui, Zhenyi and Qingdao Buytop.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Stamp Duty</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the Stamp Duty Law of the People&#8217;s
Republic of China (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#21360;&#33457;&#31246;&#27861;&#12299;), which was
released by Standing Committee of the National People&#8217;s Congress on June 10, 2022 and became effective on July 1, 2022, any entities
and individuals who make taxable documents and conduct securities transactions within the territory of the People&#8217;s Republic of
China are taxpayers of stamp duty and shall pay stamp duty in accordance with the provisions of this law. All entities and individuals
who make taxable documents outside the territory of the People&#8217;s Republic of China to be used within the territory of the People&#8217;s
Republic of China shall pay stamp duty in accordance with the provisions of this law. The term &#8220;taxable documents&#8221; refers
to the contracts, property transfer documents and business account books listed in the Schedule of Stamp Duty Items and Stamp Duty Law
of the People&#8217;s Republic of China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our PRC subsidiary and VIEs in the PRC have completed
tax registration and timely paid taxes in accordance with applicable taxation laws and regulations in the PRC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Regulations on Foreign Exchange</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>General Administration of Foreign Exchange</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the Regulations on the Control of
Foreign Exchange (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#22806;&#27719;&#31649;&#29702;&#26465;&#20363;&#12299;),
which were promulgated by the State Council on January 29, 1996, came into effect on April 1, 1996, and were amended on January 14, 1997,
and August 5, 2008, payments for transactions that take place within the PRC must be made in RMB. Unless otherwise approved, PRC companies
may not repatriate foreign currency payments received from abroad or retain the same abroad. RMB is convertible into other currencies
for current account items, such as trade-related receipts and payments and payment of interest and dividends. The conversion of RMB into
other currencies and remittance of the converted foreign currency outside the PRC for of capital account items, such as direct equity
investments, loans and repatriation of investment, requires the prior approval from the SAFE or its local office. According to regulations
on foreign exchange settlement of FIEs, they may retain foreign exchange in accounts with designated foreign exchange banks under the
current account items subject to a cap set by the SAFE or its local office. Foreign exchange proceeds under the current accounts may be
either retained or sold to a financial institution engaged in settlement and sale of foreign exchange pursuant to relevant SAFE rules
and regulations. For foreign exchange proceeds under the capital accounts, approval from the SAFE is generally required for the retention
or sale of such proceeds to a financial institution engaged in settlement and sale of foreign exchange.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>SAFE Circular No. 21</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 10, 2013, the SAFE promulgated the Circular
of the SAFE on Printing and Distributing the Administrative Provisions on Foreign Exchange in Domestic Direct Investment by Foreign Investors
and Relevant Supporting Documents (&#12298;&#22806;&#22269;&#25237;&#36164;&#32773;&#22659;&#20869;&#30452;&#25509;&#25237;&#36164;&#22806;&#27719;&#31649;&#29702;&#35268;&#23450;&#12299;)
(&#8220;SAFE Circular No. 21&#8221;), which was amended on December 31, 2019. It provided for and simplified the operational steps and
regulations on foreign exchange matters related to direct investment by foreign investors, including foreign exchange registration, account
opening and use, receipt and payment of funds, and settlement and sales of foreign exchange.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>SAFE Circular No. 59</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Circular of the SAFE on Further
Improving and Adjusting Foreign Exchange Administration Policies for Direct Investment (&#12298;&#22269;&#23478;&#22806;&#27719;&#31649;&#29702;&#23616;&#20851;&#20110;&#36827;&#19968;&#27493;&#25913;&#36827;&#21644;&#35843;&#25972;&#30452;&#25509;&#25237;&#36164;&#22806;&#27719;&#31649;&#29702;&#25919;&#31574;&#30340;&#36890;&#30693;&#12299;),
promulgated by SAFE on November 19, 2012, which became effective on December 17, 2012, and was further amended on May 4, 2015, approval
is not required for opening a foreign exchange account and depositing foreign exchange into the accounts relating to the direct investments.
SAFE Circular No. 59 also simplified foreign exchange-related registration required for the foreign investors to acquire the equity interests
of Chinese companies and further improve the administration on foreign exchange settlement for FIEs.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>SAFE Circular No. 13</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Circular on Further Simplifying
and Improving the Foreign Currency Management Policy on Direct Investment (&#12298;&#22269;&#23478;&#22806;&#27719;&#31649;&#29702;&#23616;&#20851;&#20110;&#36827;&#19968;&#27493;&#31616;&#21270;&#21644;&#25913;&#36827;&#30452;&#25509;&#25237;&#36164;&#22806;&#27719;&#31649;&#29702;&#25919;&#31574;&#30340;&#36890;&#30693;&#12299;),
effective from June 1, 2015, which cancels the administrative approvals of foreign exchange registration of direct domestic investment
and direct overseas investment and simplifies the procedure of foreign exchange-related registration, the investors shall register with
banks for direct domestic investment and direct overseas investment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>SAFE Circular No. 16</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the Notice of the State Administration
of Foreign Exchange on Policies for Reforming and Regulating the Control over Foreign Exchange Settlement under the Capital Account (&#12298;&#22269;&#23478;&#22806;&#27719;&#31649;&#29702;&#23616;&#20851;&#20110;&#25913;&#38761;&#21644;&#35268;&#33539;&#36164;&#26412;&#39033;&#30446;&#32467;&#27719;&#31649;&#29702;&#25919;&#31574;&#30340;&#36890;&#30693;&#12299;),
which was released by SAFE on June 9, 2016, except financial institutions, domestic enterprises (including Chinese-funded enterprises
and foreign-invested enterprises) may complete foreign exchange settlement for their foreign debts at their discretion. Based on business
operation conditions and in light of relevant regulations and policies, domestic institutions may settle their foreign exchange receipts
with banks under the capital account entitled to discretionary settlement. Domestic institutions may, at their discretion, settle up to
100% of their foreign exchange receipts under the capital account for the time being. SAFE may adjust the aforesaid proportion in due
time in light of the balance of payment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 91; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->85<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>SAFE Circular No. 19</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Notice of the State Administration of Foreign
Exchange on Reforming the Mode of Management of Settlement of Foreign Exchange Capital of Foreign-Funded Enterprises(&#12298;&#22269;&#23478;&#22806;&#27719;&#31649;&#29702;&#23616;&#20851;&#20110;&#25913;&#38761;&#22806;&#21830;&#25237;&#36164;&#20225;&#19994;&#22806;&#27719;&#36164;&#26412;&#37329;&#32467;&#27719;&#31649;&#29702;&#26041;&#24335;&#30340;&#36890;&#30693;&#12299;),
or the SAFE Circular No.19, which was promulgated by the SAFE on March 30, 2015, and became effective on June 1, 2015, provides that a
foreign-invested enterprise may, according to its actual business needs, settle with a bank the portion of the foreign exchange capital
in its capital account for which the relevant foreign exchange administration has confirmed monetary capital contribution rights and interests
(or for which the bank has registered the injection of the monetary capital contribution into the account). Pursuant to the SAFE Circular
No.19, for the time being, FIEs are allowed to settle 100% of their foreign exchange capitals on a discretionary basis; a foreign-invested
enterprise shall truthfully use its capital for its own operational purposes within the scope of business; where an ordinary foreign-invested
enterprise makes domestic equity investment with the amount of foreign exchanges settled, the invested enterprise shall first go through
domestic re-investment registration and open a corresponding account for foreign exchange settlement pending payment with the foreign
exchange administration or the bank at the place where it is registered.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on the foregoing, when setting up a new
foreign-invested enterprise, the foreign invested enterprise shall register with the bank located at its registered place after obtaining
the business license, and if there is any change in capital or other changes relating to the basic information of the foreign-invested
enterprise, including without limitation any increase in its registered capital or total investment, the foreign invested enterprise shall
register such changes with the bank located at its registered place after obtaining the approval from or completing the filing with competent
authorities. Pursuant to the relevant foreign exchange laws and regulations, the above-mentioned foreign exchange registration with the
banks will typically take less than four weeks upon the acceptance of the registration application. If we intend to provide funding to
our WFOE through capital injection at or after their establishment, we shall register the establishment of and any follow-on capital increase
in our wholly foreign owned subsidiaries, or the VIEs to operate in China, with the State Administration for Industry and Commerce or
its local counterparts, file such via the Foreign Investment Comprehensive Management Information System (the &#8220;FICMIS&#8221;) and
register such with the local banks for the foreign exchange related matters.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Offshore Investment</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Circular No.37</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Circular of the State Administration
of Foreign Exchange on Issues Concerning the Foreign Exchange Administration over the Overseas Investment and Financing and Round-trip
Investment by Domestic Residents via Special Purpose Vehicles (&#12298;&#20851;&#20110;&#22659;&#20869;&#23621;&#27665;&#36890;&#36807;&#29305;&#27530;&#30446;&#30340;&#20844;&#21496;&#22659;&#22806;&#25237;&#34701;&#36164;&#21450;&#36820;&#31243;&#25237;&#36164;&#22806;&#27719;&#31649;&#29702;&#26377;&#20851;&#38382;&#39064;&#30340;&#36890;&#30693;&#12299;),
or the SAFE Circular 37, issued by the SAFE and effective on July 4, 2014, PRC residents are required to register with the local SAFE
branch prior to the establishment or control of an offshore special purpose vehicle, or SPV, which is defined as offshore enterprises
directly established or indirectly controlled by PRC residents for offshore equity financing of the enterprise assets or interests they
hold in China. An amendment to registration or subsequent filing with the local SAFE branch by such PRC resident is also required if there
is any change in basic information of the offshore company or any material change with respect to the capital of the offshore company.
At the same time, the SAFE has issued the Operation Guidance for the Issues Concerning Foreign Exchange Administration over Round-trip
Investment regarding the procedures for SAFE registration under the SAFE Circular 37, which became effective on July 4, 2014, as an attachment
of Circular 37.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the relevant rules, any failure by any of
our shareholders who is a PRC resident, or is controlled by a PRC resident, to comply with relevant requirements under these regulations
could subject our SPV to restrictions imposed on foreign exchange activities, including restrictions on its ability to receive registered
capital as well as additional capital from PRC resident shareholders, and contribute registered capital as well as additional capital
to WFOE. If WFOE fails to obtain necessary registered capital within the approved business time limit, the industries and commercial administrative
authorities might revoke its business license. Due to the failure by shareholders to complete the registration, WFOE&#8217;s ability to
pay dividends or make distributions to our SPV is also restricted, and repatriation of profits and dividends derived from SPV by PRC residents
to China are illegal. The offshore financing funds are also not allowed to be used in China. In addition, the failure of the PRC resident
shareholders to complete the registration may subject the shareholders to fines less than RMB50,000, and the enterprises to fines less
than RMB300,000.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These aforementioned regulations apply to our
direct and indirect shareholders who are PRC residents and apply to any offshore acquisitions and share transfer that we may make in the
future if our Ordinary Shares are issued to PRC residents. The Chinese resident shareholders of the Company, including Qiaoling Lu, the
100% owner of Unit Giant Limited, Yiheng Guo, the 100% owner of Mac Joy Limited, Hua Wang, the 100% owner of Cyber Sea Limited, and Jianxiu
Li, the 100% owner of Better Always Limited, have completed the registration procedures in accordance with the regulations on foreign
exchange.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 92; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->86<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Regulations on Intellectual Property</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Regulations on Trademark</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trademark Law of the People&#8217;s Republic
of China (revised in 2019)(&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#21830;&#26631;&#27861;(2019&#20462;&#35746;)&#12299;)
promulgated by the Standing Committee of the National People&#8217;s Congress on August 23, 1982 and respectively revised on February
22, 1993, October 27, 2001, August 30, 2013 and April 23, 2019, and the Regulation on the Implementation of the Trademark Law of the People&#8217;s
Republic of China (revised in 2014) (&#12298;&#20013;&#21326;&#20154;&#27665;&#20849;&#21644;&#22269;&#21830;&#26631;&#27861;&#23454;&#26045;&#26465;&#20363;(2014&#20462;&#35746;)&#12299;)
promulgated by the State Council on August 3, 2002 and revised on April 29, 2014, stipulate the application, examination and approval,
renewal, alteration, transfer, use and invalidation of trademark registration, and protect the trademark rights entitled to trademark
registrants.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the trademark related regulations,
the trademark, Buytop, has been legally registered by Qingdao Buytop in China and Qingdao Buytop has obtained the certificate for this
trademark.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Regulations on Domain Names</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Administrative Measures on Internet Domain
Names(&#12298;&#20114;&#32852;&#32593;&#22495;&#21517;&#31649;&#29702;&#21150;&#27861;&#12299;) promulgated by the Ministry of Industry
and Information Technology on August 24, 2017, stipulate the regulations on Internet domain name services and undertaking related activities
such as operation and maintenance.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the domain names related regulations,
the domain name, www.buytoppay.com, has been legally registered Qingdao Buytop,. Qingdao Buytop has obtained the certificate for its domain
name.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Regulations Relating to Overseas Listings and
Offerings</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 24, 2021, the China Securities Regulatory
Commission, or the CSRC, issued Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic
Companies (Draft for Comments) (the &#8220;Administration Provisions&#8221;), and the Provisions of the State Council on the Administration
of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments) (the &#8220;Measures&#8221;), of which the public
comment period ended on January 23, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Administration Provisions and Measures for
overseas listings lay out specific requirements for filing documents and include unified regulation management, strengthening regulatory
coordination, and cross-border regulatory cooperation. Domestic companies seeking to list abroad must carry out relevant security screening
procedures if their businesses involve such supervision. Companies endangering national security are among those off-limits for overseas
listings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 17, 2023, the China Securities Regulatory
Commission (the &#8220;CSRC&#8221;) released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic
Companies (the &#8220;Trial Measures&#8221;), (&#12298;&#22659;&#20869;&#20225;&#19994;&#22659;&#22806;&#21457;&#34892;&#35777;&#21048;&#21644;&#19978;&#24066;&#31649;&#29702;&#35797;&#34892;&#21150;&#27861;&#12299;),
and five supporting guidelines (collectively, the &#8220;Overseas Listings Rules&#8221;), which has become effective on March 31, 2023.
On the same date of the issuance of the Overseas Listings Rules, the CSRC circulated No.1 to No.5 Supporting Guidance Rules, the Notes
on the Overseas Listings Rules, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises
and the relevant CSRC Answers to Reporter Questions on the official website of CSRC, or collectively, the Guidance Rules and Notice. The
Overseas Listings Rules, together with the Guidance Rules and Notice, reiterate the basic supervision principles as reflected in the Administration
Provisions and Measures by providing substantially the same requirements for filings of overseas offering and listing by domestic companies.
Under the Overseas Listings Rules and the Guidance Rules and Notice, domestic companies conducting overseas securities offering and listing
activities, either in direct or indirect form, shall complete filing procedures with the CSRC pursuant to the requirements of the Trial
Measures within three working days following its submission of initial public offerings or listing application. The companies that have
already been listed on overseas stock exchanges or have obtained the approval from overseas supervision administrations or stock exchanges
for its offering and listing before March 31, 2023 and will complete their overseas offering and listing prior to September 30, 2023 are
not required to make immediate filings for its listing yet need to make filings for subsequent offerings in accordance with the Overseas
Listings Rules. The companies that have already submitted an application for an initial public offering to overseas supervision administrations
prior to the effective date of the Overseas Listings Rules but have not yet obtained the approval from overseas supervision administrations
or stock exchanges for the offering and listing may arrange for the filing within a reasonable time period and should complete the filing
procedure before such companies&#8217; overseas issuance and listing.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this annual report, we have
not received any formal inquiry, notice, warning, sanction, or any regulatory objection from the CSRC with respect to our listing or subsequent
offerings. As the Overseas Listings Rules were newly published and there exists uncertainty with respect to the filing requirements and
its implementation, if we are required to submit to the CRSC and complete the filing procedure of our subsequent overseas public offerings,
we cannot be sure that we will be able to complete such filings in a timely manner. Any failure or perceived failure by us to comply with
such filing requirements under the Overseas Listings Rules may result in forced corrections, warnings and fines against us and could materially
hinder our ability to offer or continue to offer our securities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 93; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->87<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.</b></span></td>
    <td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Organizational Structure </b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sentage Holdings was incorporated as an exempted
company with limited liability under the laws of the Cayman Islands on September 16, 2019.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sentage Holdings owns 100% of the equity interests
of Sentage Hongkong Limited (&#8220;Sentage HK&#8221;), a limited liability company formed under the laws of Hong Kong on September 25,
2019.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 17, 2019, Shanghai Santeng Technology
Co., Ltd. (&#8220;Sentage WFOE&#8221;) was incorporated pursuant to PRC laws as a wholly foreign owned enterprise of Sentage HK.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ms. Qiaoling Lu (the chairperson of the board
of directors,the chief executive officer, and a major shareholder of the Company), Yiheng Guo (a director and a shareholder of the Company),
Hua Wang (a beneficial shareholder of the Company), and Jianxiu Li (a beneficial shareholder of the Company), are the controlling shareholders
of the following Sentage Operating Companies: (1) Daxin Wealth Investment Managem (ent (Shanghai) Co., Ltd. (&#8220;Daxin Wealth&#8221;),
formed in Shanghai City, China on August 13, 2014; (2) Daxin Zhuohui Financial Information Services (Shanghai) Co., Ltd. (&#8220;Daxin
Zhuohui&#8221;), formed in Shanghai City, China on January 9, 2015; and (3) Qingdao Buytop Payment Services Co., Ltd. (&#8220;Qingdao
Buytop&#8221;), formed in Qingdao City, Shandong Province, China on August 4, 2009. (4) Zhenyi Information Technology (Shanghai) Co. Ltd,
formed in Shanghai City, China on August 29, 2017. Daxin Wealth, Daxin Zhuohui, Qingdao Buytop, and Zhenyi were all formed as limited
companies pursuant to PRC laws. Daxin Wealth and Daxin Zhuohui are primarily engaged in providing consumer loan repayment and collection
management services. Daxin Zhuohui also provides loan recommendation services. Qingdao Buytop is primarily engaged in providing customers
with prepaid payment network services. As of the date of this annual report, Zhenyi is not engaged in active business operation but is
expected to provide us with technical and system development and support in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following diagram illustrates our corporate
structure, including our subsidiaries and the VIEs, as of the date of this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><img alt="" src="image_003.jpg"/></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 94; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->88<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif"><b>The VIE
Agreements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Neither we nor our subsidiaries own any
equity interest in any of the Sentage Operating Companies. Instead, we control and receive the economic benefits of each of the Sentage
Operating Companies&#8217; business operation through a series of VIE Agreements. Sentage WFOE, three of the Sentage Operating Companies
(Daxin Wealth, Daxin Zhuohui, and Qingdao Buytop), and their respective shareholders entered into the VIE Agreements on March 9, 2020.
Sentage WFOE, Zhenyi, and Zhenyi&#8217;s shareholders entered into the VIE Agreements on April 1, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The VIE structure is not used to provide contractual
exposure to foreign investment in China-based companies where Chinese law prohibits direct foreign investment in the operating companies,
rather we use the VIE structure because the Chinese laws and regulations affecting Sentage Operating Companies&#8217; businesses are vague
and unclear. Sentage Operating Companies engage in (i) consumer loan repayment and collection management service, (ii) loan recommendation
service, and (iii) prepaid payment network service. According to &#8220;Administrative Measures of People&#8217;s Bank of China on Payment
Services Provided by Non-financial Institutions&#8221; (&#8220;Order 2&#8221;) and &#8220;People&#8217;s Bank of China Announcement [2018]
No. 7 &#8212; Announcement on Matters Relating to Foreign-funded Payment Organizations&#8221; (&#8220;Announcement No. 7&#8221;), those
who engage in prepaid network services business within China need to go through a special legal approval procedure to obtain third-party
payment licenses. Although the People&#8217;s Bank of China has loosened the requirements for foreign-invested enterprises to hold third-party
payment licenses, the review procedure is still very strict in practice. At the same time, Chinese authorities have not yet made it clear
whether to permit or prohibit foreign-invested enterprises to engage in prepaid network services, loan collection management and loan
recommendation services, and there is a risk that Chinese authorities may prohibit direct foreign investment of such businesses.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under U.S. GAAP, we are deemed to have a controlling
financial interest in, and be the primary beneficiary of, the VIEs for accounting purposes, because such contractual arrangements are
designed so that the operations of the VIE are solely for the benefit of WFOE and, ultimately, the Company. As such, we have consolidated
the VIE for accounting purposes. The VIE Agreements have not been tested in a court of law and may not be effective in providing control
over the VIE, and we are subject to risks due to the uncertainty of the interpretation and application of the laws and regulations of
the PRC, regarding the VIE, and the VIE structure, including, but not limited to, regulatory review of overseas listing of PRC companies
through a special purpose vehicle, and the validity and enforcement of the contractual arrangements with the VIE. We are also subject
to the risk that the PRC government could disallow the VIE structure, which would likely result in a material change in our operations
and, as a result, the value of our Ordinary Shares may depreciate significantly or become worthless. See &#8220;ITEM 3.C Risk Factors
&#8211; Risks Related to Our Corporate Structure.&#8221; &#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each of the VIE Agreements is described in detail
below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 95; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->89<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span style="text-decoration:underline">Exclusive Business Cooperation Agreement</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Exclusive Business Cooperation
Agreement between the Sentage Operating Companies and Sentage WFOE, Sentage WFOE provides the Sentage Operating Companies with technical
support, intellectual services and other management services relating to its day-to-day business operations and management, on an exclusive
basis, utilizing its advantages in technology, human resources, and information. For services rendered to the Sentage Operating Companies
by Sentage WFOE under the Exclusive Business Cooperation Agreement, Sentage WFOE is entitled to collect a service fee equal to the remaining
amount of the Sentage Operating Companies&#8217; profit before tax after deducting relevant costs and reasonable expenses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The term of the Exclusive Business Cooperation
Agreement remains effective unless the agreement is explicitly terminated by Sentage WFOE through written form or other means specified
therein. The Sentage Operating Companies do not have the right to terminate that agreement unilaterally.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sentage WFOE has absolutely authority relating
to the management of the Sentage Operating Companies, including but not limited to decisions with regard to expense, salary raises and
bonuses, hiring, firing, and other operational functions. The Exclusive Business Cooperation Agreement does not prohibit related party
transactions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span style="text-decoration:underline">Equity Pledge Agreement</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Equity Pledge Agreement among Sentage
WFOE and all the shareholders of Sentage Operating Companies (the &#8220;Sentage Operating Companies Shareholders&#8221;), the Sentage
Operating Companies Shareholders pledged all of their equity interests in the Sentage Operating Companies to Sentage WFOE to guarantee
the performance of the Sentage Operating Companies&#8217; obligations under the Exclusive Business Cooperation Agreement, Exclusive Purchase
Option Agreement, and Loan Contracts (collectively, the &#8220;Transaction Agreements&#8221;). Under the terms of the Equity Pledge Agreement,
in the event that the Sentage Operating Companies or the Sentage Operating Companies Shareholders breach their respective contractual
obligations under the Transaction Agreements, Sentage WFOE, as pledgee, will be entitled to certain rights, including, but not limited
to, the right to collect dividends generated by the pledged equity interests. The Sentage Operating Companies Shareholders also agreed
that upon occurrence of any event of default, as set forth in the Equity Pledge Agreement, Sentage WFOE is entitled to dispose of the
pledged equity interests in accordance with applicable PRC laws. The Sentage Operating Companies Shareholders further agreed not to dispose
of the pledged equity interests or take any action that would prejudice Sentage WFOE&#8217;s interest.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Equity Pledge Agreement is effective until
the latest date of the following: (1) the secured debt in the scope of pledge is cleared off; (2) pledgees exercise their pledge rights
pursuant to provisions and conditions of the Equity Pledge Agreement; and (3) pledgors transfer all the pledged equity interests to Pledgees
according to the Exclusive Purchase Option Agreement, or other entity or individual designated by it.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The purpose of the Equity Pledge Agreement are
to (1) guarantee the performance of the Sentage Operating Companies&#8217; obligations under the Transaction Agreements, (2) make sure
the Sentage Operating Companies Shareholders do not transfer or assign the pledged equity interests, or create or allow any encumbrance
that would prejudice Sentage WFOE&#8217;s interests without Sentage WFOE&#8217;s prior written consent, and (3) provide Sentage WFOE control
over the Sentage Operating Companies. In the event the Sentage Operating Companies breach their contractual obligations under the Transaction
Agreements, Sentage WFOE will be entitled to foreclose on the Sentage Operating Companies Shareholders&#8217; equity interests in the
Sentage Operating Companies and may (1) exercise its option to purchase or designate third parties to purchase part or all of their equity
interests in the Sentage Operating Companies and in this situation, Sentage WFOE may terminate the Equity Pledge Agreement and the other
VIE Agreements after acquisition of all equity interests in the Sentage Operating Companies or form a new VIE structure with the third
parties designated by Sentage WFOE, or (2) dispose of the pledged equity interests and be paid in priority out of proceeds from the disposal
in which the case the existing VIE structure will be terminated.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 96; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->90<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span style="text-decoration:underline">Exclusive Purchase Option Agreement</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Exclusive Purchase Option Agreement,
the Sentage Operating Companies Shareholders irrevocably granted Sentage WFOE (or its designee) an exclusive option to purchase, to the
extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in the Sentage Operating
Companies or the assets of the Sentage Operating Companies. The option price is the minimum amount to the extent permitted under PRC law.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Exclusive Purchase Agreement, Sentage
WFOE may at any time under any circumstances, purchase or have its designee purchase, at its discretion, to the extent permitted under
PRC law, all or part of the Sentage Operating Companies Shareholders&#8217; equity interests in the Sentage Operating Companies or the
assets of the Sentage Operating Companies. The Exclusive Purchase Agreement, together with the Equity Pledge Agreement, the Exclusive
Business Cooperation Agreement, Powers of Attorney, and Loan Contracts, enable Sentage WFOE to exercise effective control over the Sentage
Operating Companies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Exclusive Purchase Agreement remains effective
until all the equity or assets of the Sentage Operating Companies is legally transferred under the name of Sentage WFOE and/or other entity
or individual designated by it.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span style="text-decoration:underline">Shareholders&#8217; Powers of Attorney</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under each of the Powers of Attorney, the Sentage
Operating Companies Shareholders authorized Sentage WFOE to act on their behalf as their exclusive agent and attorney with respect to
all rights as shareholders, including but not limited to: (a) attending shareholders&#8217; meetings; (b) exercising all the shareholders&#8217;
rights, including voting, that shareholders are entitled to under the laws of China and the Articles of Association, including but not
limited to the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on behalf of
shareholders the legal representative, the executive director, supervisor, the chief executive officer, and other senior management members
of the Sentage Operating Companies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The term of each of the Powers of Attorney is
the same as the term of the Exclusive Purchase Option Agreement. The Powers of Attorney is irrevocable and continuously valid from the
date of execution of the Powers of Attorney, so long as the Sentage Operating Companies Shareholders are shareholders of the Sentage Operating
Companies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span style="text-decoration:underline">Loan Contracts</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each shareholder of the VIEs has entered into
a loan contract with Sentage WFOE, with each contract taking effect from March 9, 2020. Under these loan contracts, Sentage WFOE provided
each shareholder of the VIEs with a loan, free of interest, provided that if any of the shareholders of the VIEs fails to pay any sum
pursuant to the schedule specified thereunder, a default interest shall be calculated at a daily rate of 0.1% until the shareholder fully
repays such sum (including the default interest). The proceeds from the loans were used for purposes consented by Sentage WFOE. The loans
can be repaid by transferring each shareholder&#8217;s respective equity interest in the VIEs pursuant to the Exclusive Purchase Option
Agreements. Each of the loan contracts shall remain in effect until the day when Sentage WFOE exercises its exclusive option in accordance
with the applicable Exclusive Purchase Option Agreement, unless otherwise terminated by Sentage WFOE when any shareholder of VIEs materially
breaches the terms of such loan contracts.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i><span style="text-decoration:underline">&#160;Spousal Consent</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The spouse of each of the Sentage Operating Companies
Shareholders agreed, via a spousal consent, to the execution of the &#8220;Transaction Documents&#8221; including: (a) Exclusive Purchase
Option Agreement entered into with Sentage WFOE and the Sentage Operating Companies; (b) Equity Pledge Agreement entered into with Sentage
WFOE; (c) Powers of Attorney executed by the Sentage Operating Companies Shareholder, and (d) Loan Contracts entered into with Sentage
WFOE, and the disposal of the equity interests of Sentage Operating Companies held by the Sentage Operating Companies Shareholder and
registered in his or her name.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 97; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->91<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The spouse of each of the Sentage Operating Companies
Shareholders further undertakes not to make any assertions in connection with the equity interests of Sentage Operating Companies, which
are held by the Sentage Operating Companies Shareholder. The spouse of the Sentage Operating Companies Shareholder confirms that the Sentage
Operating Companies Shareholder can perform, amend, or terminate the Transaction Documents without his or her authorization or consent.
He or she undertakes to execute all necessary documents and take all necessary actions to ensure appropriate performance of the agreements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The spouse of each of the Sentage Operating Companies
Shareholders also undertakes that if he or she obtains any equity interest of Sentage Operating Companies which are held by the Sentage
Operating Companies Shareholder for any reasons, he or she shall be bound by the Transaction Documents and the Exclusive Business Cooperation
Agreement entered into among Sentage WFOE and the Sentage Operating Companies (as amended time to time) and comply with the obligations
thereunder as a shareholder of the Sentage Operating Companies. For this purpose, upon Sentage WFOE&#8217;s request, he or she shall sign
a series of written documents in substantially the same format and content as the Transaction Documents and Exclusive Business Cooperation
Agreement (as amended from time to time).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Corporate Information</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our principal executive offices are located at
501, Platinum Tower, 233 Taicang Rd, HuangPu, Shanghai City, the PRC, and our phone number is +86-21 5386 0209.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our registered office in the Cayman Islands is
located at Suite #4-210, Governors Square, 23 Lime Tree Bay Avenue, PO Box 32311, Grand Cayman KY1-1209, Cayman Islands, and the phone
number of our registered office is +1-345-814-2857.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our corporate website is www.sentageholdings.com.&#160;The
information contained in, or accessible from, our website or any other website does not constitute a part of this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our service process agent is Cogency Global Inc.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SEC maintains a website at www.sec.gov that
contains reports, proxy, and information statements, and other information regarding issuers that file electronically with the SEC using
its EDGAR system.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_008"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;4A. UNRESOLVED STAFF COMMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_009"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;5. OPERATING AND FINANCIAL REVIEW
AND PROSPECTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Overview</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We, through the Sentage Operating Companies, are
a financial service provider that offers a range of financial services across consumer loan repayment and collection management services,
loan recommendation services, and prepaid payment network services in the PRC. Leveraging our deep understanding of the client base, strategic
partner relationships, and proprietary valuation models and technologies, we are committed to working, through the Sentage Operating Companies,
with the clients to understand their financial needs and challenges and offering customized services to help them meet their respective
needs. We do not have equity interests in the Sentage Operating Companies, but their financial results have been consolidated by Sentage
Holdings for accounting purposes in accordance with U.S. GAAP due to us having effective control over, and being the primary beneficiary
of, these companies via the VIE Agreements. The VIE Agreements have not been tested in a court of law in China as of the date of this
annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently report our operating revenue, through
the Sentage Operating Companies, from three main revenue streams, namely, (i) consumer loan repayment and collection management service
fees, (ii) loan recommendation service fees, and (iii) prepaid payment network service fees.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 98; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->92<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.</b></span></td>
    <td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; "><b>Operating Results</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 20.4pt"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Major Factors Affecting Results of Operations</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe the following key factors may affect
the Sentage Operating Companies&#8217; financial condition and results of operations:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Effectiveness of Risk Management</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The success of the Sentage Operating Companies&#8217;
loan recommendation business relies heavily on their ability to effectively evaluate borrowers&#8217; credit profiles, the likelihood
of default, and the value of borrowers&#8217; collateralized properties. The Sentage Operating Companies have devised and implemented
a systematic credit assessment model and an asset-driven, disciplined risk management approach to minimize a borrower&#8217;s default
risk and mitigate the impact of default. Specifically, the Sentage Operating Companies&#8217; assessment model and risk management capabilities
not only enable them to select high-quality borrowers whose financial conditions and personal background meet the selection criteria,
but also protect the funding partners against lending more than they might be able to recover in the case of default. There can be no
assurance that the risk management measures will allow the Sentage Operating Companies to identify or appropriately assess whether interest
and principal payments due on a loan will be repaid when due, or at all, or whether the value of the mortgaged property will be sufficient
to otherwise provide for recovery of such amounts. If the risk management approach is ineffective, or if the Sentage Operating Companies
otherwise fail or are perceived to fail to manage the impact of default, the Sentage Operating Companies&#8217; reputation and market
share could be materially and adversely affected, which would severely impact their business and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>The Sentage Operating Companies&#8217; Ability to Provide Consumer
Loan Repayment and Collection Management Services Efficiently</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The success of the Sentage Operating Companies&#8217;
consumer loan repayment and collection management business depends on their ability to manage the loan repayment and collection process
efficiently.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The existing consumer loan repayment and collection
management services were all completed by the end of 2021. We plan to provide loan repayment and collection management services, through
the Sentage Operating Companies, to other online consumer finance companies and major commercial banks in China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this annual report, although
the Sentage Operating Companies are in active conversation with a number of prospective clients, they have not secured a new source of
revenue to replace the loss of our current engagements. If the Sentage Operating Companies are unable to maintain, develop, and expand
their business or adapt to changing market needs as well as the current or future competitors are able to, or if the Sentage Operating
Companies are unable to acquire a sufficient number of customers who need their services, they may not be able to generate the same amount
of revenue and/or profits to sustain the operation of the consumer loan repayment and collection management business. As a result, the
Sentage Operating Companies&#8217; business and results of operations may be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following are some of the main factors that
may affect the results of our operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Ability to Acquire Prospective Borrowers Effectively and Increase
Overall Loan Volume</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies started the loan
recommendation services in June 2019. The revenue growth in this business largely depends on our ability to acquire prospective borrowers
effectively and increase the overall loan volume funded by the funding partners. We intend to continue to dedicate significant resources
to the Sentage Operating Companies&#8217; borrower acquisition efforts. If there are insufficient qualified loan requests, the funding
partners may not want to collaborate with the Sentage Operating Companies further, which may result in borrowers being unable to obtain
capital through the loan recommendation services and turning to other sources for their borrowing needs. In addition to the size of the
prospective borrower base, the overall loan volume may be affected by several factors, including the Sentage Operating Companies&#8217;
brand recognition and reputation, the interest rates offered to borrowers relative to the market rates, the efficiency of the credit assessment
process, the availability of our funding partners, the macroeconomic environment, and other factors. In connection with the introduction
of new services or in response to general economic conditions, the Sentage Operating Companies may also impose more stringent borrower
qualifications to ensure the quality of the recommended borrowers, which may negatively affect loan volume. If the Sentage Operating Companies
are unable to attract qualified borrowers or if borrowers do not continue to use our loan recommendation services at the current rates
and/or the Sentage Operating Companies are unable to increase the overall loan volume as we expect, the Sentage Operating Companies&#8217;
business and results of operations may be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 99; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->93<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Ability to Expand the Prepaid Payment Network Services </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We started to generate revenue from the Sentage
Operating Companies&#8217; prepaid payment network services in August 2019. Our revenue growth in this business largely depends on the
Sentage Operating Companies&#8217; ability to develop and expand the client network. We believe that customer base is the core building
block of the prepaid payment network service business, and the Sentage Operating Companies&#8217; ability to provide customers with satisfactory
experience is critical to the success and continuous growth in the customer base. The Sentage Operating Companies&#8217; ability to provide
customers with satisfactory experience is subject to a number of factors, including the Sentage Operating Companies&#8217; ability to
provide effective services, their ability to continuously innovate and improve their services to meet customer needs, and their access
to and cooperation with the business partners. If the Sentage Operating Companies experience service disruptions, failures, or other issues,
or, if they fail to deliver satisfactory and distinct customer experience, the Sentage Operating Companies may lose the customers and
business partners, which could further lead to a decrease in the volume of transactions processed via the prepaid payment network services.
As a result, the Sentage Operating Companies&#8217; business, results of operations, and financial condition may be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Ability to Improve Operating Efficiency</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business growth is dependent on the Sentage
Operating Companies&#8217; ability to improve their operating efficiency, which is determined by the Sentage Operating Companies&#8217;
abilities to monitor and adjust costs and expenses. Specifically, we consider the Sentage Operating Companies&#8217; ability to monitor
and adjust staffing costs (including payroll and employee benefit expense), administrative expenses, and third-party cost essential to
the success of our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As the client base expands and the Sentage Operating
Companies enter into more service agreements with clients, which typically results in expanded work volume, the staffing costs are likely
to rise. In contrast, other expenses, particularly those relating to administrative functions, are relatively fixed. For the consumer
loan repayment and collection management services and loan recommendation services, the Sentage Operating Companies outsource certain
tasks to third-party loan collection agencies or law firms and they collaborate with funding partners. As a result, the cost of third-party
business partnership is likely to rise as the Sentage Operating Companies grow their business and expand the partnership network. If the
staffing costs, administrative expenses, and third-party costs exceed our estimated budget and we are unable to increase our revenue as
expected, our operational efficiency might decrease, having an adverse impact on our business, results of operation, and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Ability to Compete Effectively </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The industries the Sentage Operating Companies
are in are highly competitive and evolving in China. With respect to consumer loan repayment and collection management services and loan
recommendation services, they compete with market players such as traditional financial institutions, small loan companies, e-commerce
driven installment platforms, and other consumer finance platforms. With respect to prepaid payment network services, the Sentage Operating
Companies primarily compete with other third-party payment service providers in China. The competitors operate with different business
models, have different cost structures or participate selectively in different market segments. They may ultimately prove to be more successful
or more adaptable to new regulatory, technological and other developments. Some of the current and potential competitors have significantly
more financial, technical, marketing and other resources than the Sentage Operating Companies do, and may be able to devote greater resources
to the development, promotion, sale and support of their platforms. The competitors may also have longer operating histories, more extensive
pool of borrowers, larger amounts of data, greater brand recognition and loyalty, and broader partner relationships than the Sentage Operating
Companies do. The customers and clients make competitive determinations based upon qualifications, experience, performance, reputation,
technology, customer relationships and ability to provide the relevant services in a timely, safe and cost-efficient manner. If the Sentage
Operating Companies do not compete effectively, our operating results could be harmed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>General Condition of the Global or Chinese
Economy </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The rapid growth of the Chinese economy has slowed
down since 2012 and this slowdown may continue in the future. There is considerable uncertainty over trade conflicts between the United
States and China and the long-term effects of the expansionary monetary and fiscal policies adopted by the central banks and financial
authorities of some of the world&#8217;s leading economies, including the United States and China. The withdrawal of these expansionary
monetary and fiscal policies could lead to a contraction. There continue to be concerns over unrest and terrorist threats in the Middle
East, Europe, and Africa, which have resulted in volatility in oil and other markets. There are also concerns about the relationships
between China and other Asian countries, which may result in or intensify potential conflicts in relation to territorial disputes. The
eruption of armed conflict could adversely affect global or Chinese discretionary spending, either of which could have a material and
adverse effect on our business, results of operation in financial condition. Economic conditions in China are sensitive to global economic
conditions, as well as changes in domestic economic and political policies and the expected or perceived overall economic growth rate
in China. Any severe or prolonged slowdown in the global or Chinese economy would likely materially and adversely affect the Sentage Operating
Companies&#8217; business, results of operations and financial condition. In addition, continued turbulence in the international markets
may adversely affect our ability to access capital markets to meet liquidity needs.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 100; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->94<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Impact of the COVID-19 Pandemic</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2019, a novel strain of coronavirus
was reported in Wuhan, China. On March 11, 2020, the World Health Organization categorized it as a pandemic. The COVID-19 outbreak has
caused lockdowns, travel restrictions, and closures of businesses across the globe. I<span>n early 2022,
the Omicron variant of COVID-19 made its presence felt in China, especially in Jilin Province, Shenzhen and Shanghai where strict lockdowns
were imposed. </span>Sentage Operating Company&#8217;s business facility in Shanghai, China, was temporarily closed in April 2022 and
resumed operation in the first week of June 2022. For the consumer loan repayment and collection management business, due to the uncertainties
caused by the COVID-19, our prospective business partners were not able to start new cooperation with us and we were not able to generate
any revenue for fiscal year 2022. For the loan recommendation services, which requires face-to-face interaction with potential customers,
the temporary lock down from April 2022 to June 2022 severely impacted our ability to generate new business. Even after June 2022, due
to the uncertainties caused by COVID-19, the demand from customers decreased sharply and the we were not able to generate any revenue
for fiscal year 2022. For the prepaid payment network services, the revenue in 2022 declined sharply because decreased demand from customers
due to the uncertainties caused by COVID-19. Although China relaxed the COVID-19 restrictions at the end of 2022, because the COVID-19
has deeply affected businesses and economy in China from 2020 to 2022, the extent of any future impact of COVID-19 on our operations remains
highly uncertain and unpredictable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Key Components of Results of Operations </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Revenues</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 28%; text-align: left">Consumer loan repayment and collection management fees</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">1,074,734</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">29.9</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">156,062</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">6.9</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Loan recommendation service fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,087,717</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">58.1</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,177,822</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">52.1</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Prepaid payment network service fees</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">432,958</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">12.0</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">928,565</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">41.0</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">161,372</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">100.0</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left; padding-bottom: 4pt">Total operating revenue</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">3,595,409</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">100.0</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,262,449</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">100.0</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">161,372</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">100.0</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><b><i>(1). Loan Repayment
and Collection Management Services</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue from consumer loan repayment and collection
management business accounted for 0%, 6.9% and 29.9% of the total revenue for the fiscal years ended December 31, 2022, 2021 and 2020,
respectively. There was no revenue generated in the loan repayment and collection management services in fiscal year 2022, and the Sentage
Operating Companies continue to explore new opportunities to engage new customers in 2023. These loans were consumer loan products ranging
from 30,000 RMB (approximately $4,342) to 80,000 RMB (approximately US$11,579), with terms ranging from one year to four years. All the
clients are individual customers who entered into service agreements with the Sentage Operating Companies. All these loans were facilitated
through the offline loan recommendation services before November 2017. Since November 2017, the Sentage Operating Companies have not provided
any intermediary services for any new customers due to changes in related governing regulations in China,. Pursuant to the service agreements
entered with individual customers, customers authorized the Sentage Operating Companies to monitor and manage the repayment and collection
process of outstanding loans for a fixed service fee, which was paid upfront by customers. The Sentage Operating Companies were required
to monitor loans within loan term to ensure timely repayment of loans when they become due. Pursuant to the agreements with customers,
loan repayment and collection management services were parts of bundled services offered to customers for a fixed fee and were not capable
of being distinct because the Sentage Operating Companies were required to concurrently monitor and manage the repayment and collection
process of outstanding loans to be entitled to receive a fixed service fee. As a result, loan management services and collection management
services were not separately identifiable in the context of the contract and accordingly were treated as a bundled single performance
obligation. There was no variable consideration in the contract. Once a specific loan was repaid on time, the service obligation related
to such loan was satisfied. When a loan became delinquent, the Sentage Operating Companies were then required to assist in collection
efforts for an extended service period of additional 12 months starting with the day when such loan becomes delinquent. No additional
fee could be charged for collection management services provided to delinquent loans beyond the initial fixed fee agreed. If all or a
part of the loan was still not repaid after all collection management efforts were exhausted within such required service period, our
service obligation related to such loan was satisfied and the Sentage Operating Companies were not responsible for any loss from uncollectible
loan.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 101; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->95<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">At the beginning of the
2020 fiscal year, the Sentage Operating Companies had a total of 5,229 outstanding service agreements from customers. During the fiscal
year ended December 31, 2020, the Sentage Operating Companies completed another 4,438 outstanding service agreements based on the contract
terms, which brought the total number of outstanding service agreements as of December 31, 2020 to 791. During the fiscal year 2021, we
completed another 791 outstanding service agreements based on the contract terms. The service agreements were fully completed in the year
ended December 31, 2021. During fiscal year 2022, due the uncertainties caused by the COVID-19, our prospective business partners was
not able to start new cooperation with us, resulting in the loss of revenue, which had an adverse impact on our business, results of operation,
and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>(2). Loan Recommendation Services</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Revenue from the loan
recommendation business accounted for 0%, 52.1% and 58.1% of our total revenue for the fiscal years ended December 31, 2022, 2021 and
2020, respectively. During the fiscal year 2020, the Sentage Operating Companies successfully recommended 115 borrowers to the funding
partners. During the fiscal year 2021, the Sentage Operating Companies successfully recommended 23 borrowers to the funding partners.
During the year ended December 31, 2022, the Sentage Operating Companies was not able to provide Loan recommendation Services and was
not able to generate revenue because the temporary COVID-19 lock down from April 2022 to June 2022 prevented the Sentage Operating Companies
from face-to-face interactions with prospective customers during the peak season of this type of business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>(3). Prepaid Payment Network Services</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Revenue from the prepaid
payment network service business accounted for 100 %, 41.0% and 12.0% of our total revenue for the fiscal years ended December 31, 2022,2021
and 2020, respectively. The Sentage Operating Companies started this service in August 2019 and only provided prepaid payment network
consulting services to four customers in the fiscal year 2020. During the fiscal year 2021, the Sentage Operating Companies provided prepaid
payment network consulting services to seven customers. During the year ended December 31, 2022, the Sentage Operating Companies provided
prepaid payment network consulting services to four customers. Due to great changes in market orientation and demand, the company&#8217;s business
is also undergoing rapid adjustment along with national policies, and the changes in the market. At present, all aspects of the market
are gradually stabilizing. The Sentage Operating Companies plans to find new business directions by adjusting business plan accordingly.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "></p><div>

</div><!-- Field: Page; Sequence: 102; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->96<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Operating expenses&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our operating expenses
primarily consist of the Sentage Operating Companies&#8217; selling and marketing expenses and general and administrative expenses. Our
selling expense primarily include expenses incurred for business travel, meals, outsourced collection agent fees and other expenses related
to the sales and marketing activities. Our general and administrative expenses primarily include the legal fee, audit fee, employee salaries,
welfare, and insurance expenses, business consulting expenses, travel and transportation expenses for our management team, meals and entertainment
expenses, office rental expense, depreciation expenses, and office supply and utility expenses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">For the fiscal years
ending December 31, 2022 and 2021, our selling, general and administrative expenses amounted to $2,732,379 and $3,041,415, respectively,
a decreased of $ 309,036 or 10%. This decrease was primarily due to expenses related to our initial public offering incurred in fiscal
2021 while none incurred in fiscal year 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Results of Operations</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth a summary of our
consolidated results of operations, for the period indicated. This information should be read together with our consolidated financial
statements and related notes included elsewhere in this annual report. The operating results in any period are not necessarily indicative
of the results that may be expected for any future period.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold">Summary Consolidated Statements of Operations:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold">Operating revenue</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 28%; text-align: left">Consumer loan repayment and collection management fees</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">1,074,734</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">29.9</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">156,062</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">6.9</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Loan recommendation service fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,087,717</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">58.1</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,177,822</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">52.1</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Prepaid payment network service fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">432,958</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12.0</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">928,565</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">41.0</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">161,372</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">100.0</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total operating revenue</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">3,595,409</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">100.0</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">2,262,449</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">100.0</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">161,372</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">100.0</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Operating expenses:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Selling, general and administrative expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,414,979</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">39.4</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,041,415</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">134.4</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,732,379</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,693.2</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total operating expenses</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">1,414,979</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">39.4</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">3,041,415</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">134.4</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">2,732,379</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">1,693.2</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Income from operations</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">2,180,430</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">60.6</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(778,966</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(34.4</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(2,571,007</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(1,593.2</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Other income (expenses)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(354</td><td style="font-weight: bold; text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(56,931</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(2.5</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">9,100</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">5.6</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Income before income tax provision</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">2,180,076</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">60.6</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(835,897</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(36.9</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(2,561,907</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(1,587.6</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Provision for income taxes</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">592,701</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">16.5</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">257,344</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">11.4</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">-</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">-</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Net (loss)/income</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">1,587,375</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">44.2</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(1,093,241</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(48.3</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(2,561,907</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(1,587.6</td><td style="font-weight: bold; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Denotes percentages between (0.1%) and 0.1%.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 103; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->97<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Year Ended December&#160;31, 2022 Compared to Year Ended December&#160;31,
2021</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Revenues</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Total operating revenue
decreased by $2,101,077, or 92.9%, to $161,372 for the fiscal year ended December 31, 2022 from $2,262,449 for the fiscal year ended December
31, 2021. The decrease in our revenues was primarily due to the following reasons: a) the servicing agreements under the consumer loan
repayment and collection management business were fully completed in fiscal 2021 and no related revenue was generated in fiscal year 2022;
b) the Company didn&#8217;t generate any revenue from the loan recommendation services in fiscal year 2022 because the Company was not
able to engage any new customers in the peak season of this type of business during the COVID-19 lock down starting from April to June
2022; and c) the revenue from prepaid payment network services decreased sharply due to the decreased demand by customers caused by the
uncertainties COVID-19.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Other income (expenses)</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our other income (expense)
consists primarily of bank fees, exchange gain or loss, impairment losses on assets, and gains and losses on the disposal of fixed assets.
In fiscal year 2022, our net other income (expense) was $9,100, a decrease of $66,031 from net other income (expense) of $56,931 in fiscal
year 2021. This was due to an additional asset impairment loss in fiscal 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Provision for Income Taxes</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our provision for income
taxes was nil in fiscal year ended December 31, 2022, a decrease of $257,343, or 100.0%, from $257,343 in fiscal year ended December 31,
2021. This was due to the fact that the company posted a loss and no deferred tax expense or benefit was recognized in fiscal 2022.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Net Income/(Loss)<b>&#160;</b></i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the foregoing, we reported a net
loss of $2,561,907 for the fiscal year ended December 31, 2022, representing a $1,468,666 decrease from the net income of $1,093,241 for
the fiscal year ended December 31, 2021.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Year Ended December&#160;31, 2021 Compared to Year Ended December&#160;31,
2020</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Revenues</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Total operating revenue
decreased by $1,332,960, or 37.1%, to $2,262,449 for the fiscal year ended December 31, 2021 from $3,595,409 for the fiscal year ended
December 31, 2020. The decrease in our revenues was primarily due to the fact that the outstanding servicing agreements under the consumer
loan repayment and collection management business were fully completed in fiscal 2021 and revenues from this business were significantly
reduced in 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "></p><div>

</div><!-- Field: Page; Sequence: 104; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->98<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Selling, general and administrative expenses</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the fiscal years ending December 31, 2021 and 2020, our selling,
general and administrative expenses amounted to $3,041,415 and $1,414,979, respectively, an increase of $1,626,436 or 115%. This increase
was mainly due to the fees incurred in connection with our initial public offering.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Other income (expenses)</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our other income (expense)
consists primarily of bank fees, penalties, impairment losses on assets, and gains and losses on the disposal of fixed assets. In fiscal
year 2021, our net other expense was $56,931, an increase of $56,577 from net other expense of $354 in fiscal year 2020. This is due to
an additional asset impairment loss in fiscal 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Provision for Income Taxes</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our provision for income
taxes was $257,344 in fiscal year ended December 31, 2021, a decrease of $ 335,357, or 56.6%, from $592,701 in fiscal year ended December
31, 2020 due to our decreased taxable income.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Net Income/(Loss)<b>&#160;</b></i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the foregoing, we reported a net
loss of $1,093,241 for the fiscal year ended December 31, 2021, representing a $2,680,616 decrease from the net income of $1,587,375 for
the fiscal year ended December 31, 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Taxation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cayman Islands</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are incorporated in the Cayman Islands. Under
the current law of the Cayman Islands, we are not subject to income or capital gains tax. In addition, dividend payments are not subject
to withholding tax in the Cayman Islands.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Hong Kong</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Entities incorporated in Hong Kong are subject
to profits tax in Hong Kong at the rate of 16.5%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>PRC</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the EIT Law, which was promulgated
by the SCNPC on March 16, 2007, became effective on January 1, 2008, and was then amended on February 24, 2017, and the&#160;Implementation
Rules of the EIT Law, which were promulgated by the State Council on December 6, 2007, and became effective on January 1, 2008, enterprises
are divided into resident enterprises and non-resident enterprises. Resident enterprises pay enterprise income tax on their incomes obtained
in and outside the PRC at the rate of 25%. Non-resident enterprises setting up institutions in the PRC pay enterprise income tax on the
incomes obtained by such institutions in and outside the PRC at the rate of 25%. Non-resident enterprises with no institutions in the
PRC, and non-resident enterprises with income having no substantial connection with their institutions in the PRC, pay enterprise income
tax on their income obtained in the PRC at a reduced rate of 10%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company incorporated in the Cayman
Islands and we gain substantial income by way of dividends paid to us from the PRC Operating Entities. The EIT Law and its implementation
rules provide that China-sourced income of foreign enterprises, such as dividends paid by a PRC subsidiary to its equity holders that
are non-resident enterprises, will normally be subject to PRC withholding tax at a rate of 10%, unless any such foreign investor&#8217;s
jurisdiction of incorporation has a tax treaty with China that provides for a preferential tax rate or a tax exemption.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 105; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->99<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the EIT Law, an enterprise established outside
of China with a &#8220;de facto management body&#8221; within China is considered a &#8220;resident enterprise,&#8221; which means that
it is treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. Although the implementation rules of the
EIT Law define &#8220;de facto management body&#8221; as a managing body that actually, comprehensively manage and control the production
and operation, staff, accounting, property, and other aspects of an enterprise, the only official guidance for this definition currently
available is set forth in SAT Notice 82, which provides guidance on the determination of the tax residence status of a Chinese-controlled
offshore incorporated enterprise, defined as an enterprise that is incorporated under the laws of a foreign country or territory and that
has a PRC enterprise or enterprise group as its primary controlling shareholder. Although Sentage Holdings does not have a PRC enterprise
or enterprise group as our primary controlling shareholder and is therefore not a Chinese-controlled offshore incorporated enterprise
within the meaning of SAT Notice 82, in the absence of guidance specifically applicable to us, we have applied the guidance set forth
in SAT Notice 82 to evaluate the tax residence status of Sentage Holdings and its subsidiaries organized outside the PRC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to SAT Notice 82, a Chinese-controlled
offshore incorporated enterprise will be regarded as a PRC tax resident by virtue of having a &#8220;de facto management body&#8221; in
China and will be subject to PRC enterprise income tax on its worldwide income only if all of the following criteria are met: (i) the
places where senior management and senior management departments that are responsible for daily production, operation and management of
the enterprise perform their duties are mainly located within the territory of China; (ii) financial decisions (such as money borrowing,
lending, financing and financial risk management) and personnel decisions (such as appointment, dismissal and salary and wages) are decided
or need to be decided by organizations or persons located within the territory of China; (iii) main property, accounting books, corporate
seal, the board of directors and files of the minutes of shareholders&#8217; meetings of the enterprise are located or preserved within
the territory of China; and (iv) one half (or more) of the directors or senior management staff having the right to vote habitually reside
within the territory of China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that we do not meet some of the conditions
outlined in the immediately preceding paragraph. For example, as a holding company, the key assets and records of Sentage Holdings, including
the resolutions and meeting minutes of our board of directors and the resolutions and meeting minutes of our shareholders, are located
and maintained outside the PRC. In addition, we are not aware of any offshore holding companies with a corporate structure similar to
ours that has been deemed a PRC &#8220;resident enterprise&#8221; by the PRC tax authorities. Accordingly, we believe that Sentage Holdings
and its offshore subsidiaries should not be treated as a &#8220;resident enterprise&#8221; for PRC tax purposes if the criteria for &#8220;de
facto management body&#8221; as set forth in SAT Notice 82 were deemed applicable to us. However, as the tax residency status of an enterprise
is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term &#8220;de
facto management body&#8221; as applicable to our offshore entities, we will continue to monitor our tax status.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 106; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->100<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The implementation rules of the EIT Law provide
that, (i) if the enterprise that distributes dividends is domiciled in the PRC or (ii) if gains are realized from transferring equity
interests of enterprises domiciled in the PRC, then such dividends or gains are treated as China-sourced income. It is not clear how &#8220;domicile&#8221;
may be interpreted under the EIT Law, and it may be interpreted as the jurisdiction where the enterprise is a tax resident. Therefore,
if we are considered as a PRC tax resident enterprise for PRC tax purposes, any dividends we pay to our overseas shareholders which are
non-resident enterprises as well as gains realized by such shareholders from the transfer of our shares may be regarded as China-sourced
income and as a result become subject to PRC withholding tax at a rate of up to 10%. Dentons, our PRC counsel, is unable to provide a
&#8220;will&#8221; opinion because it believes that it is more likely than not that we and our offshore subsidiaries would be treated
as non-resident enterprises for PRC tax purposes because we do not meet some of the conditions outlined in SAT Notice 82. In addition,
Dentons is not aware of any offshore holding companies with a corporate structure similar to ours that has been deemed a PRC &#8220;resident
enterprise&#8221; by the PRC tax authorities as of the date of this annual report. Therefore, Dentons believes that it is possible but
highly unlikely that the income received by our overseas shareholders will be regarded as China-sourced income.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See &#8220;Item 3. Key Information&#8212;D. Risk
Factors&#8212;Risks Related to Doing Business in China&#8212;Under the PRC Enterprise Income Tax Law, we may be classified as a PRC &#8220;resident
enterprise&#8221; for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences to us
and our non-PRC shareholders and have a material adverse effect on our results of operations and the value of your investment.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, as resident enterprises in the PRC,
the Sentage Operating Companies are subject to the enterprise income tax at the rate of 25%. The EIT is calculated based on the entity&#8217;s
global income as determined under PRC tax laws and accounting standards. If the PRC tax authorities determine that Sentage Holdings is
a PRC resident enterprise for enterprise income tax purposes, we may be required to withhold a 10% withholding tax from dividends we pay
to our shareholders that are non-resident enterprises. In addition, non-resident enterprise shareholders may be subject to a 10% PRC withholding
tax on gains realized on the sale or other disposition of our Ordinary Shares, if such income is treated as sourced from within the PRC.
It is unclear whether our non-PRC individual shareholders would be subject to any PRC tax on dividends or gains obtained by such non-PRC
individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to dividends or gains
realized by non-PRC individuals, it would generally apply at a rate of 20% unless a reduced rate is available under an applicable tax
treaty. However, it is also unclear whether our non-PRC shareholders would be able to claim the benefits of any tax treaties between their
country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. There is no guidance from the PRC
government to indicate whether or not any tax treaties between the PRC and other countries would apply in circumstances where a non-PRC
company was deemed to be a PRC tax resident, and thus there is no basis for expecting how tax treaty between the PRC and other countries
may impact non-resident enterprises.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>B. Liquidity and Capital Resources </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Cash Flows and Working Capital</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The principal sources of liquidity have been from
cash generated from operating and financing activities . As of December 31, 2020, 2021 and 2022, we had $140,382, $10,783,387 and $3,828,224
for cash, cash equivalents and restricted cash, respectively. Our cash and cash equivalents are primarily denominated in Renminbi and
US dollars.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In assessing our liquidity, our management monitors
and analyzes our cash on-hand, our ability to generate sufficient revenue sources in the future, and our operating and capital expenditure
commitments. As of December 31, 2022, we had cash and restricted cash of approximately $3.8 million. Accounts receivable of approximately
$0.4 million associated with services rendered for our prepaid payment network business and loan recommendation business has been billed
to our customers but has not been collected as of the balance sheet dates. We also borrowed approximately $ 4,709, which was provided
by our controlling shareholder, Ms. Qiaoling Lu, to support our working capital need. Ms. Qiaoling Lu will not seek repayment of her related
party balance of $ 4,709 as of December 31, 2022 until at least 12 months from the issuance of the financial statements.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 107; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->101<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, we improve our liquidity and capital
sources primarily through cash flows from operation and financial support from our principal shareholders. In order to fully implement
our business plan and sustain continued growth, we may also need to raise capital from outside investors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In light of the effects of the COVID-19 pandemic
as discussed above, if we are required to operate in a challenging economic environment in China, if we incur unanticipated capital expenditures,
or if we decide to accelerate our growth, we may need additional financing. We cannot guarantee, however, that additional financing, if
required, would be available at all or on favorable terms. Such financing may include the use of additional debt or the sale of additional
equity securities. Any financing which involves the sale of equity securities or instruments that are convertible into equity securities
could result in immediate and possibly significant dilution to our existing shareholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the coming years, we will be exploring other
financing sources, such as raising additional capital by issuing shares of stock, to meet our cash needs. While facing uncertainties in
regard to the size and timing of capital raises, we are confident that we can continue to meet operational needs solely by utilizing cash
flows generated from our operating activities and working-capital funds provided by shareholders, as necessary.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth a summary of our
cash flows for the periods presented:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 64%; text-align: left">Net cash provided by (used in) operating activities</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">465,210</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(382,664</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(6,662,609</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Net cash provided by (used in) investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5,519,977</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(34,346</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Net cash provided by (used in) financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(585,859</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">16,401,297</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(173,162</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Effect of exchange rate change on cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">144,349</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(85,046</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Net increase (decrease) in cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(110,649</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,643,005</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,955,163</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Cash and restricted cash, beginning of year</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">251,031</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">140,382</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,783,387</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Cash and restricted cash, end of year</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">140,382</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,783,387</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,828,224</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Operating Activities</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities was $6,662,609
for the fiscal year ended December 31, 2022, which primarily consisted of the following:</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss of $ 2,561,907 for the fiscal year.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">A decrease in Prepaid expenses and other current assets of $4,064,584.
This is primarily due to a deposit of $3,570,000 paid by the Company in fiscal year 2022 for the commissioned acquisition of an e-commerce
technology services business.</p></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 108; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->102<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities was $385,664
for the fiscal year ended December 31, 2021, which primarily consisted of the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss of $1,093,241 for the fiscal year.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A decrease in accounts receivable of $763,240. The decreased was due to our provision of loan recommendation services and prepaid payment network services and, in connection with the two business lines, our performance obligation under our service agreements with clients had been fully satisfied. The majority of the receivables from our customers were collected as of 2021.12.31. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 24px">&#160;</td>
    <td style="text-align: justify; width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A decrease in deferred revenue of $154,106. The decrease was due to the recognition of such amount as revenue when our performance obligation associated with our consumer loan repayment and collection management services had been satisfied during the 2021 fiscal year</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by operating activities was
$465,210 for the fiscal year ended December 31, 2020, which primarily consisted of the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net income of $1,587,375 for the fiscal year.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An increase in accounts receivable of $918,303. The increase was due to our provision of loan recommendation services and prepaid payment network services and, in connection with the two business lines, our performance obligation under our service agreements with clients had been fully satisfied. We had fully collected our accounts receivable by April 2021. The collected accounts receivable is available cash, which can be used as working capital for our business operation, if necessary.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 24px">&#160;</td>
    <td style="text-align: justify; width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A decrease in deferred revenue of $1,056,406. The decrease was due to the recognition of such amount as revenue when our performance obligation associated with our consumer loan repayment and collection management services had been satisfied during the 2020 fiscal year.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Investing Activities&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in investing activities amounted
to $34,346 for the fiscal year ended December 31, 2022, mainly includes to consisting primarily of purchases of software products.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in investing activities amounted
to $5,519,977 for the fiscal year ended December 31, 2021, mainly includes to purchase a one-year note with principal of $5.5 million.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There was no cash used in investing activities
in 2020 fiscal year.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Financing Activities</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by financing activities amounted
to $173,162 for the fiscal year ended December 31, 2022, primarily the repayment of working capital of related parties $ 156,311.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by financing activities amounted
to $16,401,297 for the fiscal year ended December 31, 2021, primarily consisting of the proceeds from IPO in the amount of $16,912,053
and the repayment of working capital of related parties $ 1,276,641.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in financing activities amounted
to $585,859 for the fiscal year ended December 31, 2020, primarily consisting of deferred initial public offering cost of $765,885 in
connection with our intended IPO, and proceeds of $180,026 provided by related party as working capital.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 109; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->103<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>C. Research and Development, Patents and Licenses, etc. </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See &#8220;Item 4. Information on the Company&#8212;B.
Business&#8212;Intellectual Property.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>D. Trend Information </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other than as disclosed elsewhere in this annual
report, we are not aware of any trends, uncertainties, demands, commitments or events for the period from January&#160;1, 2022 to December&#160;31,
2022 that are reasonably likely to have a material effect on our net revenues, income, profitability, liquidity or capital resources,
or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>E. Critical Accounting Estimates </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We prepare our financial statements in accordance
with U.S.&#160;GAAP, which requires our management to make judgment, estimates and assumptions that affect our reporting of, among other
things, assets and liabilities, contingent assets and liabilities and revenue and expenses. We continually evaluate these judgments, estimates
and assumptions based on our own historical experience, knowledge and assessment of relevant current business and other conditions, our
expectations regarding the future based on available information and various assumptions that we believe to be reasonable, 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.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selection of critical accounting policies,
the judgments and other uncertainties affecting the application of those policies and the sensitivity of reported results to changes in
conditions and assumptions are factors that should be considered when reviewing our financial statements. We believe the following accounting
policies involve the most significant judgments and estimates used in the preparation of our financial statements. You should read the
following description of critical accounting policies, judgments and estimates in conjunction with our consolidated financial statements
and other disclosures included in this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Revenue Recognition</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We adopted ASC 606, &#8220;Revenue from Contracts
with Customers&#8221; for all periods presented. Consistent with the criteria of ASC 606, we follow five steps for its revenue recognition:
(i)&#160;identify the contract(s) with a customer; (ii)&#160;identify the performance obligations in the contract; (iii)&#160;determine
the transaction price; (iv)&#160;allocate the transaction price to the performance obligations in the contract; and (v)&#160;recognize
revenue when (or as) the entity satisfies a performance obligation. The primary sources of our revenues are as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Revenue from consumer loan repayment and collection
management services</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Loans facilitated through the Sentage Operating
Companies were consumer loan products ranging from 30,000 RMB (approximately $4,342) to 80,000 RMB (approximately US$11,579). Loan term
ranges from one to four years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All of the clients are individual customers who
entered into service agreements with the Sentage Operating Companies. All of these loans were facilitated through the offline loan recommendation
services before November 2017. Since November 2017, the Sentage Operating Companies have not provided any intermediary services for any
new customers due to changes in related governing regulations in China, and they have been focusing on providing services related to consumer
loan repayment and collection management to the customers. These consumer loan repayment and collection management services are a part
of the service obligations in the service agreements with the customers. Pursuant to the Sentage Operating Companies&#8217; agreements
with customers, loan repayment and collection management services are parts of bundled services offered by the Sentage Operating Companies
to customers for a fixed fee and are not capable of being distinct because the Sentage Operating Companies are required to concurrently
monitor and manage the repayment and collection process of outstanding loans to be entitled to receive a fixed service fee. As a result,
loan management services and collection management services are not separately identifiable in the context of the contract and accordingly
are treated as a bundled single performance obligation. There is no variable consideration in the contract. Once a specific loan is repaid
on time, the service obligation related to such loan is satisfied. If a loan becomes delinquent, the Sentage Operating Companies are then
required to assist in collection efforts for an extended service period of additional 12 months starting with the day when such loan becomes
delinquent. No additional fee can be charged for collection management services provided to delinquent loans beyond the initial fixed
fee agreed. If all or a part of the loan is still not repaid after all collection management efforts are exhausted within such required
service period, the Sentage Operating Companies&#8217; service obligation related to such loan is satisfied and the Sentage Operating
Companies are not responsible for any loss from an uncollectible.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 110; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->104<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies&#8217; loan repayment
and collection management services primarily include reconciling borrower repayment record and sending payment reminder and notice periodically
facilitating repayment upon maturity and collaborating with third-party collection agents and law firms in the event of delinquency, etc.
Loan repayment and collection management fees received from the customers upfront are deferred first, and then ratably recognized as revenue
over the loan terms or an extended service period of additional 12 months starting with the day when such loan becomes delinquent, as
the Company performs designated services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Revenue from services provided to borrower
for loan recommendation</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sentage Operating Companies started to provide
borrower recommendation services where they recommend prospective borrowers to funding partners in June 2019. The Sentage Operating Companies&#8217;
performance obligations include making loan product recommendations to borrower applicants based on their specific needs, processing paperwork
related to borrowers&#8217; applications, evaluating credentials of borrower applicants, appraising borrowers&#8217; properties to be
collateralized through data analysis and on-site inspection, and recommending qualified borrowers to various funding partners for loan
approval. The Sentage Operating Companies receive a service fee from a borrower if he or she is approved for a loan and such loan is then
funded by one of the funding partners. The Sentage Operating Companies acquire borrowers through cooperating with third-party referral
partners as well as through their own borrower development efforts. For borrowers acquired through cooperating with third-party referral
partners, pursuant to the service agreement between the Sentage Operating Companies and the referral partners, referral partners first
charge borrowers service fees for their referrals. The Sentage Operating Companies then charge the referral partners a commission ranging
from 1.5% to 2% based on the loan proceeds disbursed to the borrowers. For borrowers developed directly by the Sentage Operating Companies,
they charge the borrowers a service fee of 1.75% to 3% of the loan amount received by the borrowers. We recognize revenue at the point
when the Sentage Operating Companies&#8217; performance obligations are satisfied and the loan proceeds are disbursed to a specific borrower.
For the fiscal years ended December 31, 2022 and 2021, we generated nil and $1,177,822 in revenue from the loan recommendation service,
respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Contract fulfillment costs associated with loan
recommendation services primarily consist of employee salary, bonus and business travel costs incurred by the Sentage Operating Companies
to fulfill their performance obligations. Contract fulfillment costs are only capitalized when the costs generate or enhance resources
that will be used in satisfying future performance obligations of the contract and the costs are expected to be recovered. For fiscal
years ended December 31, 2022 and 2021,contract fulfillment costs were not capitalized and were expensed as incurred, due to immateriality
of such costs.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Revenue from prepaid payment network services</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2012, Qingdao Buytop, was granted a third-party
payment service license by the relevant authority in China. Qingdao Buytop started to provide prepaid payment network services to merchant
customers in August 2019. Qingdao Buytop is licensed to issue generic and branded prepaid gift and debit cards and provide related services
to various merchants, such as supermarket and department stores, etc. In connection with repaid payment network services, we expect to
generate revenue from: (1) technology consulting and support services fees related to payment solution planning, design, and management;
(2) prepaid card payment services fees related to issuance and use of prepaid cards. Technology consulting and support services are short-term
in nature, with service period ranging from one to three months, and related service fees are recognized as revenue at point when payment
solution, design and management services are rendered, completed and accepted by customers. For merchant customers who need prepaid card
payment services such as collecting and processing information necessary for prepaid card issuance and authorizing transaction requests
after verifying transaction information, Qingdao Buytop charge service fee equal to 0.3% to 0.5% of each transaction amount and recognize
revenue at the point when the prepaid cards issued by merchant customers are used by their end user card holders. For the fiscal years
ended December 31, 2022 and 2021, we earned $161,372 and $928,565 in revenue from providing technology consulting and support service
to customers, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 111; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->105<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Income Taxes</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Income taxes are accounted for under the asset
and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary
differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well
as operating loss and tax credit carryforwards, if any. Deferred income tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect
on deferred income tax assets and liabilities of a change in tax rates or tax laws is recognized in the consolidated statements of comprehensive
income in the period the change in tax rates or tax laws is enacted. We reduce the carrying amounts of deferred tax assets by a valuation
allowance, if based on the available evidence, it is &#8220;more-likely-than-not&#8221; that such assets will not be realized. Accordingly,
the need to establish valuation allowances for deferred tax assets is assessed at each reporting period based on a &#8220;more-likely-than-not&#8221;
realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses,
forecasts of futures profitability, the duration of statutory carryforward periods, and our experience with operating loss and tax credit
carryforwards, if any, not expiring.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the financial statements, we recognize the
impact of a tax position if that position is &#8220;more likely than not&#8221; to prevail based on the facts and technical merits of
the position. Tax positions that meet the &#8220;more likely than not&#8221; recognition threshold are measured at the largest amount
of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Changes in recognition or measurement
are reflected in the period in which the change in judgement occurs. Interest and penalties recognized related to an unrecognized tax
benefits are classified as income tax expense in the consolidated statements of comprehensive income.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_010"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;6. DIRECTORS, SENIOR MANAGEMENT AND
EMPLOYEES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>A. Directors and Senior Management</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following&#160;table sets forth the name,
age and position of each of our directors and executive officers as of the date of this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="border-bottom: black 1.5pt solid; width: 30%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Name</b></span></td>
    <td style="white-space: nowrap; width: 1%; text-align: center">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; width: 8%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Age</b></span></td>
    <td style="white-space: nowrap; width: 1%; text-align: center">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; width: 60%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Position</b></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Qiaoling Lu</span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">43</span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer, Chairman of the Board of Directors, and Director</span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jianhua Chen </span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">47</span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yiheng Guo </span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">39</span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director&#160;&#160;</span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael JohnViotto <sup>(1)(2)(3)</sup></span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">71</span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Independent Director&#160;&#160;</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Angel Colon <sup>(1)(2)(3)</sup></span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">49</span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Independent Director&#160;&#160;</span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shengsong Wang <sup>(1)(2)(3)</sup></span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">67</span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Independent Director&#160;&#160;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Member of the Audit Committee</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 9pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Member of the Nominating and Corporate Governance Committee</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 9pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Member of the Compensation Committee</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 9pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Ms. Qiaoling Lu </b>has been our chief executive
officer, chairman of the board of directors, and director since incorporation. Ms. Lu has served as the general manager of Daxin Wealth
since March 2015. Before joining us, she served as the manager director of Asia Pacific at Interconnect Products Limited UK from September
2010 to January 2015, where she successfully led her team to expand the company&#8217;s business in the Asia market. She also served as
a finance associate at IQVIA (formerly known as Quintiles European headquarters) from April 2006 to August 2010. Ms. Lu obtained her master&#8217;s
degree in International Relations from Qingdao University in Qingdao City, Shandong Province, China in 2005. Ms. Lu obtained her master&#8217;s
degree in International Management from Henley Business School at University of Reading in the United Kingdom in 2004. Ms. Lu obtained
her bachelor&#8217;s degree in International Economics from Shandong University of Finance and Economics in Jinan City, Shandong Province,
China in 2002.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 112; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->106<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Mr. Jianhua Chen</b> was appointed as our Chief
Financial Officer September 1, 2020. He has served as the finance director of Daxin Wealth since June 2016. Prior to joining Daxin Wealth,
he had served as the finance director of Shanghai Chenengdai Finance Technology Co., Ltd. from January 2015 to June 2016. Mr. Chen obtained
his master&#8217;s degree in Business Administration from Renmin University of China in Beijing, China in 2018. Mr. Chen obtained his
bachelor&#8217;s degree in Accounting from Shanghai Ocean University in Shanghai City, China in 1998..</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Mr. Yiheng Guo </b>has served as a director
of Daxin Wealth from March 2015 to present. Mr. Guo obtained his master&#8217;s degree in Real Estate Investment and Finance from Henley
Business School at University of Reading in the United Kingdom in 2007. Mr. Guo obtained his bachelor&#8217;s degree in International
Securities Investment &amp; Banking from University of Reading in the United Kingdom in 2006..</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Mr. Michael John Viotto </b>is our Independent
Director, within the meaning of the Nasdaq Listing Rules. Michael Viotto currently serves as the Chief Financial Officer and a Board member
for Fuse Group Holdings Inc., an OTC OB Market listed company (trading symbol: FUST). Mr. Viotto has been serving as a Board member for
Fuse Group Holding Inc. since August 2017, supervising finance aspects of the Company. Mr. Viotto has been the President of MJV Consulting
since October 2014, and has also been serving as an Independent Director for Dunxin Financial Holding Limited, an NYSE market listed company
(trading symbol: DXF), serving as the Chairman of the company&#8217;s Compensation Committee and a member of the company&#8217;s Nomination
Committee as well as its Audit Committee since December, 2017. In addition, Mr. Viotto also served as an Independent Director for Future
World Financial Holdings Inc. from September 2016 to January 2017, which is a financial company based in Hong Kong, China. He served as
the Chairman for the company&#8217;s Nominating and Remuneration Committee and as a member of the company&#8217;s Audit Committee. Mr.
Viotto received his Bachelor of Science Degree in Business Administration from California Polytechnic University located in Pomona, California
in March 1985.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Mr. Angel Colon</b> is our Independent Director,
within the meaning of the Nasdaq Listing Rules. Mr. Colon has served as a managing member of NY Capital Management Group, LLC since January
2017; Turing Funds, LLC since July 2017; Vega Management Advisors, LLC from October 2018 to February 2020; and Vega Management Investments,
LLC from October 2018 to February 2020; providing services to high net worth individuals, businesses and institutions to produce solutions
that facilitate the advancement and management of capital along with the mitigation of risk to achieve dependable annual returns. Mr.
Colon has served as a financial advisor and consultant of Andean Farm since and Pharma Corp. since December 2018 and Bronson Resource
Limited since December 2018, responsible for research-backed support of strategies concerning the mitigation of risk and financial planning
from inception to completion. Previously, Mr. Colon served as a financial advisor for Cuttone &amp; Co., LLC from December 2016 to February
2018; Tribal Capital Markets, LLC from August 2016 to December 2016; and Bonwick Capital Partners, LLC from July 2015 to August 2016.
Mr. Colon also served as a capital markets associate at TriPoint Global Equities, LLC from December 2013 to July 2015. Mr. Colon received
a Bachelor of Science in International Business; minor in Languages and Economics from St. John Fisher College in 1996. He currently holds
FINRA Series 7, Series 63 and Series 65 and is a licensed broker with FINRA.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Mr. Shengsong Wang </b>is our Independent Director,
within the meaning of the Nasdaq Listing Rules. Mr. Wang currently serves as a law professor at Qingdao University in Shandong Province.
He joined Qingdao University in 1987 as a lecturer and served as an associate professor, professor, and then dean of faculty. Mr. Wang
is a renowned legal professional specializing in arbitration and litigation. Between June 2009 and December 2013, Mr. Wang served as an
Independent Director for Qingdao Hanhe Cable Co., Ltd, a Shenzhen Stock Exchange listed company that specializes in cable system services,
transformation products, and smart grid technology in China. Between March 2015 and April 2018, Mr. Wang served as an Independent Director
for Weflo Valve Co., Ltd., a Shenzhen Stock Exchange listed company that specializes in the design and manufacture of valves and fire
hydrant products. Mr. Wang received a Bachelor Degree in History in 1982 and a Master Degree in Ancient World History in 1986 from Qufu
Normal University. Mr. Wang also received a Master Degree from Harbin Normal University in 1986 and a Doctorate Degree in Law Jurisprudence
from China University of Political Science and law in 2005.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 113; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->107<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our officers are appointed by and serve at the
discretion of our board of directors and the shareholders voting by ordinary resolution. Our directors are not subject to a set term of
office and hold office until the next general meeting called for the election of directors and until their successor is duly appointed
or such time as they die, resign or are removed from office by a shareholders&#8217; ordinary resolution. The office of a director will
be vacated automatically if, among other things, the directors resigns in writing, becomes bankrupt or makes any arrangement or composition
with his/her creditors generally or is found to be or becomes of unsound mind.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Family Relationships</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ms. Qiaoling Lu and Mr. Yiheng Guo are wife and
husband. None of our other directors or executive officers has a family relationship as defined in Item 401 of Regulation S-K.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Involvement in Certain Legal Proceedings</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of our directors or executive officers has,
during the past 10 years, was involved in any legal proceedings described in subparagraph (f) of Item 401 of Regulation S-K.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Employment Agreements and Indemnification Agreements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have entered into employment agreements with
each of our executive officers. Pursuant to employment agreements, we agreed to employ each of our executive officers for a specified
time period, which may be renewed upon both parties&#8217; agreement 30 days before the end of the current employment term, and payment
of cash compensation. We may terminate the employment for cause, at any time, without notice or remuneration, for certain acts of the
executive officer, including but not limited to the commitments of any serious or persistent breach or non-observance of the terms and
conditions of the employment, conviction of a criminal offense, willful disobedience of a lawful and reasonable order, fraud or dishonesty,
receipt of bribery, or severe neglect of his or her duties. An executive officer may terminate his or her employment at any time with
a one-month prior written notice. Each executive officer has agreed to hold, both during and after the employment agreement expires, in
strict confidence and not to use or disclose to any person, corporation or other entity without written consent, any confidential information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have also entered into indemnification agreements
with each of our directors and executive officers. Under these agreements, we agree to indemnify our directors and executive officers
against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being a director or
officer of our company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>B. Compensation of Directors and Executive Officers </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the fiscal year ended December 31, 2022,
we, our subsidiaries and the VIEs, paid in aggregate cash compensation of approximately US$229,370.12 to our directors and executive officers
as a group. Our PRC subsidiary and the VIEs are required by law to make contributions equal to certain percentages of each employee&#8217;s
salary for his or her pension insurance, medical insurance, unemployment insurance, and other statutory benefits and a housing provident
fund.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>C. Board Practices </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our board of directors consists of five directors, three of whom
shall be &#8220;independent&#8221; within the meaning of the corporate governance standards of the Nasdaq listing rules and meet the criteria
for independence set forth in Rule 10A-3 of the Exchange Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-align: justify; text-indent: -10pt"><b>Terms of Directors
and Executive Officers</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-align: justify; text-indent: -10pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our officers are appointed by and serve at the
discretion of our board of directors and the shareholders voting by ordinary resolution. Our directors are not subject to a set term of
office and hold office until the next general meeting called for the election of directors and until their successor is duly appointed
or such time as they die, resign or are removed from office by a shareholders&#8217; ordinary resolution. The office of a director will
be vacated automatically if, among other things, the directors resigns in writing, becomes bankrupt or makes any arrangement or composition
with his/her creditors generally or is found to be or becomes of unsound mind.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 114; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->108<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Duties of Directors </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Cayman Islands law, all of our directors
owe three types of duties to us: (i) statutory duties, (ii) fiduciary duties, and (iii) common law duties. The Companies Act (2021 Revision)
of the Cayman Islands imposes a number of statutory duties on a director. A Cayman Islands director&#8217;s fiduciary duties are not codified;
however, the courts of the Cayman Islands have held that a director owes the following fiduciary duties: (a) a duty to act in what the
director&#160;bona fide&#160;considers to be in the best interests of the company, (b) a duty to exercise their powers for the purposes
they were conferred, (c) a duty to avoid fettering his or her discretion in the future and (d) a duty to avoid conflicts of interest and
of duty. The common law duties owed by a director are those to act with skill, care and diligence that may reasonably be expected of a
person carrying out the same functions as are carried out by that director in relation to the company and, also, to act with the skill,
care and diligence in keeping with a standard of care commensurate with any particular skill they have which enables them to meet a higher
standard than a director without those skills.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The functions and powers of our board of directors
include, among others:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">appointing officers and determining the term of office of the officers;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">authorizing the payment of donations to religious, charitable, public, or other bodies, clubs, funds, or associations as deemed advisable;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">exercising the borrowing powers of the company and mortgaging the property of the company;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">executing checks, promissory notes, and other negotiable instruments on behalf of the company; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintaining or registering a register of mortgages, charges, or other encumbrances of the company.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Committees of the Board of Directors</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have established three fully independent committees
under the board of directors: the audit committee, the nominating and corporate governance committee and the compensation committee. We
have adopted a charter for each of the three committees. The committee charters are available on our website at www.sentageholdings.com.
Each committee&#8217;s members and functions are described below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;<b><i>Audit Committee</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audit committee consists of Angel Colon, Shengsong
Wang, and Michael John Viotto. Angel Colon is the chairperson of our audit committee. We have determined that Angel Colon, Shengsong Wang,
and Michael John Viotto satisfy the &#8220;independence&#8221; requirements of the Nasdaq listing rules under and Rule 10A-3 under the
Securities Exchange Act. Our board also has determined that Angel Colon qualifies as an audit committee financial expert within the meaning
of the SEC rules or possesses financial sophistication within the meaning of the Nasdaq listing rules. The audit committee oversees our
accounting and financial reporting processes and the audits of the financial statements of our company. The audit committee is responsible
for, among other things:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing with the independent auditors any audit problems or difficulties and management&#8217;s response;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">discussing the annual audited financial statements with management and the independent auditors;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and approving all proposed related party transactions; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">meeting separately and periodically with management and the independent auditors; and monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 115; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->109<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Compensation Committee</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our compensation committee consists of Michael
John Viotto, Angel Colon, and Shengsong Wang. Michael John Viotto is the chairperson of our compensation committee. We have determined
that Michael John Viotto, Angel Colon, and Shengsong Wang satisfy the &#8220;independence&#8221; requirements of the Nasdaq listing rules
and Rule 10C-1 under the Securities Exchange Act. The compensation committee assists the board in reviewing and approving the compensation
structure, including all forms of compensation, relating to our directors and executive officers. Our chief executive officer may not
be present at any committee meeting during which his compensation is deliberated. The compensation committee is responsible for, among
other things:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and approving the total compensation package for our most senior executive officers;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">approving and overseeing the total compensation package for our executives other than the most senior executive officers;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and recommending to the board with respect to the compensation of our directors;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 40.3pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing periodically and approving any long-term incentive compensation or equity plans;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">selecting compensation consultants, legal counsel or other advisors after taking into consideration all factors relevant to that person&#8217;s independence from management; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 40.3pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing programs or similar arrangements, annual bonuses, employee pension and welfare benefit plans.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Nominating and Corporate Governance Committee</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our nominating and corporate governance committee
consists of Shengsong Wang, Michael John Viotto, and Angel Colon. Shengsong Wang is the chairperson of our nominating and corporate governance
committee. Shengsong Wang, Michael John Viotto, and Angel Colon satisfy the &#8220;independence&#8221; requirements of the Nasdaq listing
rules. The nominating and corporate governance committee assists the board of directors in selecting individuals qualified to become our
directors and in determining the composition of the board and its committees. The nominating and corporate governance committee is responsible
for, among other things:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">identifying and recommending nominees for election or re-election to our board of directors or for appointment to fill any vacancy;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing annually with our board of directors its current composition in light of the characteristics of independence, age, skills, experience and availability of service to us;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">identifying and recommending to our board the directors to serve as members of committees;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">advising the board periodically with respect to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to our board of directors on all matters of corporate governance and on any corrective action to be taken; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 116; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->110<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>D. Employees </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this annual report, we employed
13 employees in Shanghai, China, and 8 employees in Qingdao, China. At December 31, 2020, 2021 and 2022, we had 26, 23, and 21 employees,
respectively. The following table sets forth the numbers of our employees categorized by function as of December 31, 2022: The following
table sets forth the breakdown of our employees by function as of the date of this annual report:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid">Function</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of<br/> Employees</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">% of<br/> Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">General Manager&#8217;s Office</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">1</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">4.8</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Finance Department</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Risk control center</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">9</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">42.9</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Business Department</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4.8</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Operating department</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4.8</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Marketing department</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4.8</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Technical department</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14.3</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Non-performing Assets Department</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4.8</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Integrated department</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4.8</td><td style="text-align: left">%</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As required by regulations in China, we participate
in various employee social security plans that are organized by local governments, including pension, unemployment insurance, childbirth
insurance, work-related injury insurance, medical insurance and housing insurance. We are required under Chinese law to make contributions
to employee benefit plans at specified percentages of the salaries, bonuses and certain allowances of our employees, up to a maximum amount
specified by the local government from time to time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our employees are not represented by a labor organization
or covered by a collective bargaining agreement. We believe that we maintain a good working relationship with our employees and to date,
we have not experienced any significant labor disputes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>E. Share Ownership </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth information regarding
the beneficial ownership based on 2,805,325 of our Ordinary Shares outstanding as of May 1, 2023 based on information obtained from the
persons named below, with respect to the beneficial ownership of our shares by:</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">each person known by us to be the beneficial owner of more than 5% of our outstanding shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">each of our officers and directors; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">all our officers and directors as a group.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless otherwise indicated, we believe that all
persons named in the table have sole voting and investment power with respect to all Ordinary Shares beneficially owned by them.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid">Name and Address of Beneficial Owner</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount<br/> and<br/> nature of<br/> beneficial<br/> ownership</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage&#160;of<br/> outstanding<br/> ordinary<br/> shares</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Directors and Executive Officers <sup>(1)</sup></b></span></td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Qiaoling Lu</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">1,650,000</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">58.93</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Jianhua Chen</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Yiheng Guo</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">96,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3.43</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Michael John Viotto</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Angel Colon</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Shengsong Wang</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">All directors and executive officers as a group</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,746,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">62.36</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>5% or Greater Shareholders<sup>(2)</sup></b></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unit Giant Limited<sup>(3)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,650,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">58.93</td><td style="text-align: left">%</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Notes:&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless otherwise indicated, the business address of each of the individuals is 501, Platinum Tower, 233 Taicang Rd, HuangPu, Shanghai, PRC.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 117; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->111<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless otherwise indicated, the business address of the following shareholders is Ritter House, Wickhams Cay II, PO Box 3170, Road Town, Tortola, British Virgin Islands.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The number of Ordinary Shares beneficially owned represents 1,650,000 Ordinary Shares held by Unit Giant Limited, a British Virgin Islands company, which is 100% owned by Qiaoling Lu.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">less than 1%</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not aware of any arrangement that may,
at a subsequent date, result in a change of control of our Company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_011"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;7. MAJOR SHAREHOLDERS AND RELATED
PARTY TRANSACTIONS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>A. Major Shareholders</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See &#8220;Item 6. Directors, Senior Management and Employees&#8212;E.
Share Ownership.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>B. Related Party Transactions</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Contractual Arrangements with The VIEs and Their Respective Shareholders
</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See &#8220;Item 4. Information on the Company&#8212;C. Organizational
Structure.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Employment Agreements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See &#8220;Item 6. Directors, Senior Management
and Employees&#8212;A. Directors and Senior Management&#8212;Employment Agreements and Indemnification Agreements.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Other Transactions with Related Parties </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Amount due from related parties</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021 and 2022, and as of the
date of this annual report, we had no Amounts due from related parties.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Amount due to related parties</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, 2021, and 2020, and as
of the date of this annual report, the balance due to a related party in the amount of $ 4,709 and $161,020, and $1,437,661, respectively,
was loan advance from the Company&#8217;s controlling shareholder, Ms. Qiaoling Lu, and was used as working capital during the Company&#8217;s
normal course of business. Such advance was non-interest bearing and due on demand. Ms. Qiaoling Lu will not seek repayment of her related
party balance until at least 12 months from the issuance of the consolidated financial statements for the year ended December 31, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>C. Interests of Experts and Counsel</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 118; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->112<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_012"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;8. FINANCIAL INFORMATION</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>A. Consolidated Statements and Other Financial Information</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Item 18 for our audited consolidated financial statements.<b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Legal Proceedings </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, we may become a party to various
legal or administrative proceedings arising in the ordinary course of our business, including actions with respect to intellectual property
infringement, violation of third-party&#160;licenses or other rights, breach of contract and labor and employment claims. Except as otherwise
disclosed in this annual report, we are currently not a party to, and we are not aware of any threat of, any legal or administrative proceedings
that, in the opinion of our management, are likely to have any material and adverse effect on our business, financial condition, cash-flow&#160;or
results of operations. We may periodically be subject to legal proceedings, investigations and claims relating to our business. We may
also initiate legal proceedings to protect our rights and interests.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Dividend Policy </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We previously did not declare or pay any cash
dividends and have no intention to declare or pay any dividends in the near future on our Ordinary Shares. We currently intend to retain
most, if not all, of our available funds and any future earnings to operate and expand our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board of directors has complete discretion
in deciding whether to distribute dividends. Even if our board of directors decides to pay dividends, the timing, amount and form of future
dividends, if any, will depend on, among other things, our future results of operations and cash flow, our capital requirements and surplus,
the amount of distributions, if any, received by us from our subsidiaries, our financial condition, contractual restrictions and other
factors deemed relevant by our board of directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company with no material operations
of our own. We conduct our operations primarily through our PRC operating entities in China. PRC regulations may restrict the ability
of the PRC Operating Entities to pay dividends to us. As a result, our ability to pay dividends and to finance any debt we may incur depends
upon dividends paid by our subsidiaries. If our existing subsidiaries or any newly formed subsidiaries incur debt on their own behalf
in the future, the instruments governing their debt may restrict their ability to pay dividends to us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>B. Significant Changes</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as disclosed elsewhere in this annual report,
we have not experienced any significant changes since the date of our audited consolidated financial statements included in this annual
report. &#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 119; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->113<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_013"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;9. THE OFFER AND LISTING</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>A. Offering and Listing Details</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Ordinary Shares are listed on the Nasdaq Capital
Market under the symbol &#8220;SNTG&#8221;.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>B. Plan of Distribution</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>C. Markets</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Ordinary Shares began trading on the Nasdaq
Capital Market on July 9, 2021 under the symbol &#8220;SNTG.&#8221; Prior to that there was no market for our Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>D. Selling Shareholders</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>E. Dilution</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>F. Expenses of the Issue</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_014"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;10. ADDITIONAL INFORMATION</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>A. Share Capital</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 1, 2022, Sentage Holdings Inc. (the
&#8220;Company&#8221;) held its annual general meeting of shareholders, at which the Company&#8217;s shareholders adopted the following
ordinary resolution (the &#8220;Share Consolidation&#8221;), that:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(A) the authorised share capital of the Company
be amended from US$50,000 divided into 50,000,000 ordinary shares of US$0.001 each to US$50,000 divided into 10,000,000 ordinary shares
of US$0.005 each, so that every shareholder holding 5 ordinary shares of US$0.001 each will hold 1 ordinary share of US$0.005 upon the
consolidation taking effect, such consolidated shares having the same rights and being subject to the same restrictions (save as to nominal
value) as the existing ordinary shares of US$0.001 each in the capital of the Company as set out in the Company&#8217;s articles of association
(the &#8220;Share Consolidation&#8221;), with such Share Consolidation to be effective on such date as determined by the Board of Directors,
which date must be on or before August 12, 2022, and such date shall be announced by the Company;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(B) on the effective date, the authorized share
capital of the Company shall be US$50,000, divided into 10,000,000 ordinary shares of a nominal or par value of US$0.005 each; and</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(C) *the Company be authorized to round up
any fractional shares resulting from the Share Consolidation such that each shareholder will be entitled to receive one ordinary
share in lieu of any fractional share that would have resulted from the Share Consolidation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">* The Company issued an additional 5,325 Ordinary
Shares resulting from the rounding up of the fractional shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 2, 2022, in accordance with the above
resolutions, the board of directors of the Company passed a resolution to set August 10, 2022 as the effective date of the Share Consolidation,
and accordingly, the Share Consolidation was effected on August 10, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 120; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->114<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>B. Memorandum and Articles of Association</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following are summaries of material provisions
of our amended and restated memorandum and articles of association and the Companies Act insofar as they relate to the material terms
of our Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Ordinary Shares</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All of our issued and outstanding Ordinary Shares
are fully paid and non-assessable. Our Ordinary Shares are issued in registered form, and are issued when registered in our register of
members. Unless the board of directors determine otherwise, each holder of our Ordinary Shares will not receive a certificate in respect
of such Ordinary Shares. Our shareholders who are non-residents of the Cayman Islands may freely hold and vote their Ordinary Shares.
We may not issue shares or warrants to bearer.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our authorized share capital is $50,000 divided
into 10,000,000 Ordinary Shares, par value $0.005 per share. Subject to the provisions of the Cayman Companies Act and our articles regarding
redemption and purchase of the shares, the directors have general and unconditional authority to allot (with or without confirming rights
of renunciation), grant options over or otherwise deal with any unissued shares to such persons, at such times and on such terms and conditions
as they may decide. Such authority could be exercised by the directors to allot shares which carry rights and privileges that are preferential
to the rights attaching to Ordinary Shares. No share may be issued at a discount except in accordance with the provisions of the Cayman
Companies Act. 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.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Dividends</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the provisions of the Cayman Companies
Act and any rights attaching to any class or classes of shares under and in accordance with the articles:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the directors may declare dividends or distributions out of our funds which are lawfully available for that purpose; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our shareholders may, by ordinary resolution, declare dividends but no such dividend shall exceed the amount recommended by the directors</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 121; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->115<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the requirements of the Cayman Companies
Act regarding the application of a company&#8217;s share premium account and with the sanction of an ordinary resolution, dividends may
also be declared and paid out of any share premium account. The directors when paying dividends to shareholders may make such payment
either in cash or in specie.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless provided by the rights attached to a share,
no dividend shall bear interest.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Voting Rights</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to any rights or restrictions as to voting
attached to any shares, unless any share carries special voting rights, on a show of hands every shareholder who is present in person
and every person representing a shareholder by proxy shall have one vote per Ordinary Share. On a poll, every shareholder who is present
in person and every person representing a shareholder by proxy shall have one vote for each share of which he or the person represented
by proxy is the holder. In addition, all shareholders holding shares of a particular class are entitled to vote at a meeting of the holders
of that class of shares. Votes may be given either personally or by proxy.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Variation of Rights of Shares</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Whenever our capital is divided into different
classes of shares, the rights attaching to any class of share (unless otherwise provided by the terms of issue of the shares of that class)
may be varied either with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or with
the sanction of a resolution passed by a majority of not less than two-thirds of the holders of shares of the class present in person
or by proxy at a separate general meeting of the holders of shares of that class.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless the terms on which a class of shares was
issued state otherwise, the rights conferred on the shareholder holding shares of any class shall not be deemed to be varied by the creation
or issue of further shares ranking <i>pari passu</i> with the existing shares of that class.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Alteration of Share Capital</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the Cayman Companies Act, our shareholders
may, by ordinary resolution:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">increase our share capital by new shares of the amount fixed by that ordinary resolution and with the attached rights, priorities and privileges set out in that ordinary resolution;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">consolidate and divide all or any of our share capital into shares of larger amount than our existing shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">increase our share capital by new shares of the amount fixed by that ordinary resolution and with the attached rights, priorities and privileges set out in that ordinary resolution;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">sub-divide our shares or any of them into shares of an amount smaller than that fixed, so, however, that in the sub-division, 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;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(e)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">cancel shares which, at the date of the passing of that ordinary resolution, have not been taken or agreed to be taken by any person and diminish the amount of our share capital by the amount of the shares so cancelled or, in the case of shares without nominal par value, diminish the number of shares into which our capital is divided.;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the Cayman Companies Act and to any
rights for the time being conferred on the shareholders holding a particular class of shares, our shareholders may, by special resolution,
reduce its share capital in any way.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Calls on Shares and Forfeiture</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the terms of allotment, the directors
may make calls on the shareholders in respect of any monies unpaid on their shares including any premium and each shareholder shall (subject
to receiving at least 14 clear days&#8217; notice specifying when and where payment is to be made), pay to us the amount called on his
shares. Shareholders registered as the joint holders of a share shall be jointly and severally liable to pay all calls in respect of the
share. If a call remains unpaid after it has become due and payable the person from whom it is due and payable shall pay interest on the
amount unpaid from the day it became due and payable until it is paid at the rate fixed by the terms of allotment of the share or in the
notice of the call or if no rate is fixed, at the rate of ten percent per annum. The directors may, at their discretion, waive payment
of the interest wholly or in part.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 122; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->116<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have a first and paramount lien on all shares
(whether fully paid up or not) registered in the name of a shareholder (whether solely or jointly with others). The lien is for all monies
payable to us by the shareholder or the shareholder&#8217;s estate:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">either alone or jointly with any other person, whether or not that other person is a shareholder; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether or not those monies are presently payable.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At any time the directors may declare any share
to be wholly or partly exempt from the lien on shares provisions of the articles.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may sell, in such manner as the directors may
determine, any share on which the sum in respect of which the lien exists is presently payable, if due notice that such sum is payable
has been given (as prescribed by the articles) and, within 14 days of the date on which the notice is deemed to be given under the articles,
such notice has not been complied with.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Unclaimed Dividend</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A dividend that remains unclaimed for a period
of six years after it became due for payment shall be forfeited to, and shall cease to remain owing by, the company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Forfeiture or Surrender of Shares</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a shareholder fails to pay any capital call,
the directors may give to such shareholder not less than 14 clear days&#8217; notice requiring payment and specifying the amount unpaid
including any interest which may have accrued, any expenses which have been incurred by us due to that person&#8217;s default and the
place where payment is to be made. The notice shall also contain a warning that if the notice is not complied with, the shares in respect
of which the call is made will be liable to be forfeited.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If such notice is not complied with, the directors
may, before the payment required by the notice has been received, resolve that any share the subject of that notice be forfeited (which
forfeiture shall include all dividends or other monies payable in respect of the forfeited share and not paid before such forfeiture).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A forfeited share may be sold, re-allotted or
otherwise disposed of on such terms and in such manner as the directors determine and at any time before a sale, re-allotment or disposition
the forfeiture may be cancelled on such terms as the directors think fit.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A person whose shares have been forfeited shall
cease to be a shareholder in respect of the forfeited shares, but shall, notwithstanding such forfeiture, remain liable to pay to us all
monies which at the date of forfeiture were payable by him to us in respect of the shares, together with all expenses and interest from
the date of forfeiture or surrender until payment, but his liability shall cease if and when we receive payment in full of the unpaid
amount.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A declaration, whether statutory or under oath,
made by a director or the secretary shall be conclusive evidence that the person making the declaration is our director or secretary and
that the particular shares have been forfeited or surrendered on a particular date.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the execution of an instrument of transfer,
if necessary, the declaration shall constitute good title to the shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 123; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->117<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Redemption and Purchase of Own Shares</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the Cayman Companies Act and any rights
for the time being conferred on the shareholders holding a particular class of shares, we may by action of our directors:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">issue shares that are to be redeemed or liable to be redeemed, at our option or the shareholder holding those redeemable shares, on the terms and in the manner our directors determine before the issue of those shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">with the consent by special resolution of the shareholders holding shares of a particular class, vary the rights attaching to that class of shares so as to provide that those shares are to be redeemed or are liable to be redeemed at our option on the terms and in the manner which the directors determine at the time of such variation; and.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">purchase all or any of our own shares of any class including any redeemable shares on the terms and in the manner which the directors determine at the time of such purchase.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may make a payment in respect of the redemption
or purchase of its own shares in any manner authorized by the Cayman Companies Act, including out of any combination of capital, our profits
and the proceeds of a fresh issue of shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When making a payment in respect of the redemption
or purchase of shares, the directors may make the payment in cash or in specie (or partly in one and partly in the other) if so authorized
by the terms of the allotment of those shares or by the terms applying to those shares, or otherwise by agreement with the shareholder
holding those shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Transfer of Shares</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Provided that a transfer of Ordinary Shares complies
with applicable rules of the Nasdaq Capital Market, a shareholder may transfer Ordinary Shares to another person by completing an instrument
of transfer in a common form or in a form prescribed by Nasdaq or in any other form approved by the directors, executed:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">where the Ordinary Shares are fully paid, by or on behalf of that shareholder; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">where the Ordinary Shares are partly paid, by or on behalf of that shareholder and the transferee.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The transferor shall be deemed to remain the holder
of an Ordinary Share until the name of the transferee is entered into the register of members of the Company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Where the Ordinary Shares in question are not
listed on or subject to the rules of the Nasdaq Capital Market, our board of directors may, in its absolute discretion, decline to register
any transfer of any Ordinary Share that has not been fully paid up or is subject to a company lien. Our board of directors may also decline
to register any transfer of such Ordinary Share unless:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the instrument of transfer is lodged with us, accompanied by the certificate for the Ordinary Shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the instrument of transfer is in respect of only one class of Ordinary Shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the instrument of transfer is properly stamped, if required;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(d)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the Ordinary Share transferred is fully paid and free of any lien in favor of us;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(e)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">any fee related to the transfer has been paid to us; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(f)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the transfer is not more than four joint holders.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 124; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->118<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If our directors refuse to register a transfer,
they are required, within one month after the date on which the instrument of transfer was lodged, to send to each of the transferor and
the transferee notice of such refusal.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The registration of transfers may, on 14 calendar
days&#8217; notice being given by advertisement in such one or more newspapers or by electronic means, be suspended and our register of
members closed at such times and for such periods as our board of directors may from time to time determine. The registration of transfers,
however, may not be suspended, and the register may not be closed, for more than 30 calendar days in any year.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Inspection of Books and Records</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders of our Ordinary Shares will have no general
right under the Cayman Companies Act to inspect or obtain copies of our register of members or our corporate records.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>General Meetings</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a Cayman Islands exempted company, we are not
obligated by the Cayman Companies Act to call shareholders&#8217; annual general meetings; accordingly, we may, but shall not be obliged
to, in each year hold a general meeting as an annual general meeting. Any annual general meeting held shall be held at such time and place
as may be determined by our board of directors. All general meetings other than annual general meetings shall be called extraordinary
general meetings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors may convene general meetings whenever
they think fit. General meetings shall also be convened on the written requisition of one or more of the shareholders entitled to attend
and vote at our general meetings who (together) hold not less than ten percent of the rights to vote at such general meeting in accordance
with the notice provisions in the articles, specifying the purpose of the meeting and signed by each of the shareholders making the requisition.
If the directors do not convene such meeting for a date not later than 21 clear days&#8217; after the date of receipt of the written requisition,
those shareholders who requested the meeting may convene the general meeting themselves within three months after the end of such period
of 21 clear days in which case reasonable expenses incurred by them as a result of the directors failing to convene a meeting shall be
reimbursed by us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At least 14 days&#8217; notice of an extraordinary
general meeting and 21 days&#8217; notice of an annual general meeting shall be given to shareholders entitled to attend and vote at such
meeting. The notice shall specify the place, the day and the hour of the meeting and the general nature of that business. In addition,
if a resolution is proposed as a special resolution, the text of that resolution shall be given to all shareholders. Notice of every general
meeting shall also be given to the directors and our auditors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the Cayman Companies Act and with the
consent of the shareholders who, individually or collectively, hold at least 90 percent of the voting rights of all those who have a right
to vote at a general meeting, a general meeting may be convened on shorter notice.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A quorum shall consist of the presence (whether
in person or represented by proxy) of one or more shareholders holding shares that represent not less than one-third of the outstanding
shares carrying the right to vote at such general meeting.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If, within 15 minutes from the time appointed
for the general meeting, or at any time during the meeting, a quorum is not present, the meeting, if convened upon the requisition of
shareholders, shall be cancelled. In any other case it shall stand adjourned to the same time and place seven days or to such other time
or place as is determined by the directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The chairman may, with the consent of a meeting
at which a quorum is present, adjourn the meeting. When a meeting is adjourned for seven days or more, notice of the adjourned meeting
shall be given in accordance with the articles.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 125; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->119<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>
</div><p style="margin: 0"></p><div>

</div><p style="margin: 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At any general meeting a resolution put to the
vote of the meeting shall be decided on a show of hands, unless a poll is (before, or on, the declaration of the result of the show of
hands) demanded by the chairman of the meeting or by at least two shareholders having the right to vote on the resolutions or one or more
shareholders present who together hold not less than ten percent of the voting rights of all those who are entitled to vote on the resolution.
Unless a poll is so demanded, a declaration by the chairman as to the result of a resolution and an entry to that effect in the minutes
of the meeting, shall be conclusive evidence of the outcome of a show of hands, without proof of the number or proportion of the votes
recorded in favor of, or against, that resolution.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a poll is duly demanded it shall be taken in
such manner as the chairman directs and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was
demanded.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the case of an equality of votes, whether on
a show of hands or on a poll, the chairman of the meeting at which the show of hands takes place or at which the poll is demanded, shall
not be entitled to a second or casting vote.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Directors</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may by ordinary resolution, from time to time,
fix the maximum and minimum number of directors to be appointed. Under the Articles, we are required to have a minimum of one director
and the maximum number of Directors shall be unlimited.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A director may be appointed by ordinary resolution
or by the directors. Any appointment may be to fill a vacancy or as an additional director.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless the remuneration of the directors is determined
by the shareholders by ordinary resolution, the directors shall be entitled to such remuneration as the directors may determine.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The shareholding qualification for directors may
be fixed by our shareholders by ordinary resolution and unless and until so fixed no share qualification shall be required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless removed or re-appointed, each director
shall be appointed for a term expiring at the next-following annual general meeting, if one is held. At any annual general meeting held,
our directors will be elected by an ordinary resolution of our shareholders. At each annual general meeting, each director so elected
shall hold office for a one-year term and until the election of their respective successors in office or removed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A director may be removed by ordinary resolution.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A director may at any time resign or retire from
office by giving us notice in writing. Unless the notice specifies a different date, the director shall be deemed to have resigned on
the date that the notice is delivered to us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the provisions of the articles, the
office of a director may be terminated forthwith if:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">he is prohibited by the law of the Cayman Islands from acting as a director;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">he is made bankrupt or makes an arrangement or composition with his creditors generally;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">he resigns his office by notice to us;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(d)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">he only held office as a director for a fixed term and such term expires;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(e)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">in the opinion of a registered medical practitioner by whom he is being treated he becomes physically or mentally incapable of acting as a director;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 126; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->120<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(f)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">he is given notice by the majority of the other directors (not being less than two in number) to vacate office (without prejudice to any claim for damages for breach of any agreement relating to the provision of the services of such director);</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(g)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">he is made subject to any law relating to mental health or incompetence, whether by court order or otherwise; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(h)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">without the consent of the other directors, he is absent from meetings of directors for continuous period of six months.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each of the compensation committee and the nominating
and corporate governance committee shall consist of at least three directors and the majority of the committee members shall be independent
within the meaning of Section 5605(a)(2) of the Nasdaq listing rules. The audit committee shall consist of at least three directors, all
of whom shall be independent within the meaning of Section 5605(a)(2) of the Nasdaq listing rules and will meet the criteria for independence
set forth in Rule 10A-3 or Rule 10C-1 of the Exchange Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Powers and Duties of Directors</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the provisions of the Cayman Companies
Act and our memorandum and articles of association, our business shall be managed by the directors, who may exercise all our powers. No
prior act of the directors shall be invalidated by any subsequent alteration of our memorandum or articles of association. To the extent
allowed by the Cayman Companies Act, however, shareholders may by special resolution validate any prior or future act of the directors
which would otherwise be in breach of their duties.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors may delegate any of their powers
to any committee consisting of one or more persons who need not be shareholders and may include non-directors so long as the majority
of those persons are directors; 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. Our board of directors have established an audit committee, compensation committee, and nomination
and corporate governance committee.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The board of directors may establish any local
or divisional board of directors or agency and delegate to it its powers and authorities (with power to sub-delegate) for managing any
of our affairs whether in the Cayman Islands or elsewhere and may appoint any persons to be members of a local or divisional board of
directors, or to be managers or agents, and may fix their remuneration.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors may from time to time and at any
time by power of attorney or in any other manner they determine appoint any person, either generally or in respect of any specific matter,
to be our agent with or without authority for that person to delegate all or any of that person&#8217;s powers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors may from time to time and at any
time by power of attorney or in any other manner they determine appoint any person, whether nominated directly or indirectly by the directors,
to be our attorney or our authorized signatory and for such period and subject to such conditions as they may think fit. The powers, authorities
and discretions, however, must not exceed those vested in, or exercisable, by the directors under the articles.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The board of directors may remove any person so
appointed and may revoke or vary the delegation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors may exercise all of our powers to
borrow money and to mortgage or charge its undertaking, property and assets both present and future and uncalled capital or any part thereof,
to issue debentures and other securities whether outright or as collateral security for any debt, liability or obligation of ours or our
parent undertaking (if any) or any subsidiary undertaking of us or of any third party.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 127; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->121<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A director shall not, as a director, vote in respect
of any contract, transaction, arrangement or proposal in which he has an interest which (together with any interest of any person connected
with him) is a material interest (otherwise than by virtue of his interests, direct or indirect, in shares or debentures or other securities
of, or otherwise in or through, us) and if he shall do so his vote shall not be counted, nor in relation thereto shall he be counted in
the quorum present at the meeting, but (in the absence of some other material interest than is mentioned below) none of these prohibitions
shall apply to:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the giving of any security, guarantee or indemnity in respect of:</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">money lent or obligations incurred by him or by any other person for our benefit or any of our subsidiaries; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a debt or obligation of ours or any of our subsidiaries for which the director himself has assumed responsibility in whole or in part and whether alone or jointly with others under a guarantee or indemnity or by the giving of security;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">where we or any of our subsidiaries is offering securities in which offer the director is or may be entitled to participate as a holder of securities or in the underwriting or sub-underwriting of which the director is to or may participate;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">any contract, transaction, arrangement or proposal affecting any other body corporate in which he is interested, directly or indirectly and whether as an officer, shareholder, creditor or otherwise howsoever, provided that he (together with persons connected with him) does not to his knowledge hold an interest representing one percent or more of any class of the equity share capital of such body corporate (or of any third body corporate through which his interest is derived) or of the voting rights available to shareholders of the relevant body corporate;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(d)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">any act or thing done or to be done in respect of any arrangement for the benefit of the employees of us or any of our subsidiaries under which he is not accorded as a director any privilege or advantage not generally accorded to the employees to whom such arrangement relates; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(e)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">any matter connected with the purchase or maintenance for any director of insurance against any liability or (to the extent permitted by the Cayman Companies Act) indemnities in favor of directors, the funding of expenditure by one or more directors in defending proceedings against him or them or the doing of anything to enable such director or directors to avoid incurring such expenditure.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A director may, as a director, vote (and be counted
in the quorum) in respect of any contract, transaction, arrangement or proposal in which he has an interest which is not a material interest
or as described above.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Liquidation Rights</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we are wound up, the shareholders may, subject
to the articles and any other sanction required by the Cayman Companies Act, pass a special resolution allowing the liquidator to do either
or both of the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">to divide in specie among the shareholders the whole or any part of our assets and, for that purpose, to value any assets and to determine how the division shall be carried out as between the shareholders or different classes of shareholders; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">to vest the whole or any part of the assets in trustees for the benefit of shareholders and those liable to contribute to the winding up.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors have the authority to present a
petition for our winding up to the Grand Court of the Cayman Islands on our behalf without the sanction of a resolution passed at a general
meeting.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>C. Exchange Controls </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See &#8220;Item 4. Information on the Company&#8212;B.
Business Overview&#8212;Regulations&#8212; Regulations on Foreign Exchange</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>D. Taxation </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following discussion of the material Cayman
Islands, PRC and United States federal income tax consequences of an investment in our Ordinary Shares is based upon laws and relevant
interpretations thereof in effect as of the date of this annual report on Form 20-F, all of which are subject to change. This discussion
does not deal with all possible tax consequences relating to an investment in our Ordinary Shares, such as the tax consequences under
state, local and other tax laws. Accordingly, each investor should consult its own tax advisor regarding the tax consequences of an investment
in our Ordinary Shares applicable under its particular circumstances.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 128; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->122<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Cayman Islands Cayman Islands Taxation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are incorporated in the Cayman Islands. Under
the current law of the Cayman Islands, we are not subject to income or capital gains tax. In addition, dividend payments are not subject
to withholding tax in the Cayman Islands.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>PRC Taxation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the EIT Law, which was promulgated
by the SCNPC on March 16, 2007, became effective on January 1, 2008, and was then amended on February 24, 2017, and the&#160;Implementation
Rules of the EIT Law, which were promulgated by the State Council on December 6, 2007, and became effective on January 1, 2008, enterprises
are divided into resident enterprises and non-resident enterprises. Resident enterprises pay enterprise income tax on their incomes obtained
in and outside the PRC at the rate of 25%. Non-resident enterprises setting up institutions in the PRC pay enterprise income tax on the
incomes obtained by such institutions in and outside the PRC at the rate of 25%. Non-resident enterprises with no institutions in the
PRC, and non-resident enterprises with income having no substantial connection with their institutions in the PRC, pay enterprise income
tax on their income obtained in the PRC at a reduced rate of 10%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company incorporated in the Cayman
Islands and we gain substantial income by way of dividends paid to us from the PRC Operating Entities. The EIT Law and its implementation
rules provide that China-sourced income of foreign enterprises, such as dividends paid by a PRC subsidiary to its equity holders that
are non-resident enterprises, will normally be subject to PRC withholding tax at a rate of 10%, unless any such foreign investor&#8217;s
jurisdiction of incorporation has a tax treaty with China that provides for a preferential tax rate or a tax exemption</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the EIT Law, an enterprise established
outside of China with a &#8220;de facto management body&#8221; within China is considered a &#8220;resident enterprise,&#8221; which means
that it is treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. Although the implementation rules of
the EIT Law define &#8220;de facto management body&#8221; as a managing body that actually, comprehensively manage and control the production
and operation, staff, accounting, property, and other aspects of an enterprise, the only official guidance for this definition currently
available is set forth in SAT Notice 82, which provides guidance on the determination of the tax residence status of a Chinese-controlled
offshore incorporated enterprise, defined as an enterprise that is incorporated under the laws of a foreign country or territory and that
has a PRC enterprise or enterprise group as its primary controlling shareholder. Although Sentage Holdings does not have a PRC enterprise
or enterprise group as our primary controlling shareholder and is therefore not a Chinese-controlled offshore incorporated enterprise
within the meaning of SAT Notice 82, in the absence of guidance specifically applicable to us, we have applied the guidance set forth
in SAT Notice 82 to evaluate the tax residence status of Sentage Holdings and its subsidiaries organized outside the PRC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to SAT Notice 82, a Chinese-controlled
offshore incorporated enterprise will be regarded as a PRC tax resident by virtue of having a &#8220;de facto management body&#8221; in
China and will be subject to PRC enterprise income tax on its worldwide income only if all of the following criteria are met: (i) the
places where senior management and senior management departments that are responsible for daily production, operation and management of
the enterprise perform their duties are mainly located within the territory of China; (ii) financial decisions (such as money borrowing,
lending, financing and financial risk management) and personnel decisions (such as appointment, dismissal and salary and wages) are decided
or need to be decided by organizations or persons located within the territory of China; (iii) main property, accounting books, corporate
seal, the board of directors and files of the minutes of shareholders&#8217; meetings of the enterprise are located or preserved within
the territory of China; and (iv) one half (or more) of the directors or senior management staff having the right to vote habitually reside
within the territory of China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that we do not meet some of the conditions
outlined in the immediately preceding paragraph. For example, as a holding company, the key assets and records of Sentage Holdings, including
the resolutions and meeting minutes of our board of directors and the resolutions and meeting minutes of our shareholders, are located
and maintained outside the PRC. In addition, we are not aware of any offshore holding companies with a corporate structure similar to
ours that has been deemed a PRC &#8220;resident enterprise&#8221; by the PRC tax authorities. Accordingly, we believe that Sentage Holdings
and its offshore subsidiaries should not be treated as a &#8220;resident enterprise&#8221; for PRC tax purposes if the criteria for &#8220;de
facto management body&#8221; as set forth in SAT Notice 82 were deemed applicable to us. However, as the tax residency status of an enterprise
is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term &#8220;de
facto management body&#8221; as applicable to our offshore entities, we will continue to monitor our tax status.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 129; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->123<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The implementation rules of the EIT Law provide
that, (i) if the enterprise that distributes dividends is domiciled in the PRC or (ii) if gains are realized from transferring equity
interests of enterprises domiciled in the PRC, then such dividends or gains are treated as China-sourced income. It is not clear how &#8220;domicile&#8221;
may be interpreted under the EIT Law, and it may be interpreted as the jurisdiction where the enterprise is a tax resident. Therefore,
if we are considered as a PRC tax resident enterprise for PRC tax purposes, any dividends we pay to our overseas shareholders which are
non-resident enterprises as well as gains realized by such shareholders from the transfer of our shares may be regarded as China-sourced
income and as a result become subject to PRC withholding tax at a rate of up to 10%. Dentons, our PRC counsel, is unable to provide a
&#8220;will&#8221; opinion because it believes that it is more likely than not that we and our offshore subsidiaries would be treated
as non-resident enterprises for PRC tax purposes because we do not meet some of the conditions outlined in SAT Notice 82. In addition,
Dentons is not aware of any offshore holding companies with a corporate structure similar to ours that has been deemed a PRC &#8220;resident
enterprise&#8221; by the PRC tax authorities as of the date of this annual report. Therefore, Dentons believes that it is possible but
highly unlikely that the income received by our overseas shareholders will be regarded as China-sourced income.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See &#8220;Item 3. Key Information&#8212;D. Risk
Factors&#8212;Risks Related to Doing Business in China&#8212;<i>Under the PRC Enterprise Income Tax Law, we may be classified as a PRC
&#8220;resident enterprise&#8221; for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences
to us and our non-PRC shareholders and have a material adverse effect on our results of operations and the value of your investment</i>.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, as resident enterprises in the PRC,
the Sentage Operating Companies are subject to the enterprise income tax at the rate of 25%. The EIT is calculated based on the entity&#8217;s
global income as determined under PRC tax laws and accounting standards. If the PRC tax authorities determine that Sentage Holdings is
a PRC resident enterprise for enterprise income tax purposes, we may be required to withhold a 10% withholding tax from dividends we pay
to our shareholders that are non-resident enterprises. In addition, non-resident enterprise shareholders may be subject to a 10% PRC withholding
tax on gains realized on the sale or other disposition of our Ordinary Shares, if such income is treated as sourced from within the PRC.
It is unclear whether our non-PRC individual shareholders would be subject to any PRC tax on dividends or gains obtained by such non-PRC
individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to dividends or gains
realized by non-PRC individuals, it would generally apply at a rate of 20% unless a reduced rate is available under an applicable tax
treaty. However, it is also unclear whether our non-PRC shareholders would be able to claim the benefits of any tax treaties between their
country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. There is no guidance from the PRC
government to indicate whether or not any tax treaties between the PRC and other countries would apply in circumstances where a non-PRC
company was deemed to be a PRC tax resident, and thus there is no basis for expecting how tax treaty between the PRC and other countries
may impact non-resident enterprises.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Hong Kong Taxation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Entities incorporated in Hong Kong are subject
to profits tax in Hong Kong at the rate of 16.5%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>United States Federal Income Tax Considerations
</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following does not address the tax consequences
to any particular investor or to persons in special tax situations such as:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 24px; text-align: justify; font-size: 10pt">&#160;</td>
    <td style="vertical-align: top; width: 24px; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">banks;</span></td></tr>
  <tr>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
  <tr>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="vertical-align: top; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">financial institutions;</span></td></tr>
  <tr>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
  <tr>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="vertical-align: top; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">insurance companies;</span></td></tr>
  <tr>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
  <tr>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="vertical-align: top; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulated investment companies;</span></td></tr>
  <tr>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
  <tr>
    <td style="text-align: justify; font-size: 10pt">&#160;</td>
    <td style="vertical-align: top; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">real estate investment trusts;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 130; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->124<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 24px; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">broker-dealers;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons that elect to mark their securities to market;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. expatriates or former long-term residents of the U.S.;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">governments or agencies or instrumentalities thereof;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">tax-exempt entities;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons liable for alternative minimum tax;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons holding our Ordinary Shares as part of a straddle, hedging, conversion or integrated transaction;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons that actually or constructively own 10% or more of our voting power or value (including by reason of owning our Ordinary Shares);</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons who acquired our Ordinary Shares pursuant to the exercise of any employee share option or otherwise as compensation;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons holding our Ordinary Shares through partnerships or other pass-through entities;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">beneficiaries of a Trust holding our Ordinary Shares; or</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons holding our Ordinary Shares through a Trust.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Material Tax Consequences Applicable to
U.S. Holders of Our Ordinary Shares</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following sets forth the material U.S. federal
income tax consequences related to the ownership and disposition of our Ordinary Shares. It is directed to U.S. Holders (as defined below)
of our Ordinary Shares and is based upon laws and relevant interpretations thereof in effect as of the date of this annual report, all
of which are subject to change. This description does not deal with all possible tax consequences relating to ownership and disposition
of our Ordinary Shares or U.S. tax laws, other than the U.S. federal income tax laws, such as the tax consequences under non-U.S. tax
laws, state, local and other tax laws.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The brief description below of the U.S. federal
income tax consequences to &#8220;U.S. Holders&#8221; will apply to you if you are a beneficial owner of Ordinary Share and you are, for
U.S. federal income tax purposes,</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 24px; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">an individual who is a citizen or resident of the United States;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the United States, any state thereof or the District of Columbia;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">an estate whose income is subject to U.S. federal income taxation regardless of its source; or</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a trust that (1) is subject to the primary supervision of a court within the United States and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Taxation of Dividends and Other Distributions
on our Ordinary Shares</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the PFIC (defined below) rules discussed
below, the gross amount of distributions made by us to you with respect to the Ordinary Shares (including the amount of any taxes withheld
therefrom) will generally be includable in your gross income as dividend income on the date of receipt by you, but only to the extent
that the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles).
With respect to corporate U.S. Holders, the dividends will not be eligible for the dividends-received deduction allowed to corporations
in respect of dividends received from other U.S. corporations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 131; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->125<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With respect to non-corporate U.S. Holders, including
individual U.S. Holders, dividends will be taxed at the lower capital gains rate applicable to qualified dividend income, provided that
(1) the Ordinary Shares are readily tradable on an established securities market in the United States, or we are eligible for the benefits
of an approved qualifying income tax treaty with the United States that includes an exchange of information program, (2) we are not a
PFIC (defined below) for either our taxable year in which the dividend is paid or the preceding taxable year, and (3) certain holding
period requirements are met. Because there is no income tax treaty between the United States and the Cayman Islands, clause (1) above
can be satisfied only if the Ordinary Shares are readily tradable on an established securities market in the United States. Under U.S.
Internal Revenue Service authority, Ordinary Shares are considered for purpose of clause (1) above to be readily tradable on an established
securities market in the United States if they are listed on certain exchanges, which presently includes the New York Stock Exchange and
the Nasdaq Stock Market. You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid with
respect to our Ordinary Shares, including the effects of any change in law after the date of this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dividends will constitute foreign source income
for foreign tax credit limitation purposes. If the dividends are taxed as qualified dividend income (as discussed above), the amount of
the dividend taken into account for purposes of calculating the foreign tax credit limitation will be limited to the gross amount of the
dividend, multiplied by the reduced rate divided by the highest rate of tax normally applicable to dividends. The limitation on foreign
taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends distributed
by us with respect to our Ordinary Shares will constitute &#8220;passive category income&#8221; but could, in the case of certain U.S.
Holders, constitute &#8220;general category income.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent that the amount of the distribution
exceeds our current and accumulated earnings and profits (as determined under U.S. federal income tax principles), it will be treated
first as a tax-free return of your tax basis in your Ordinary Shares, and to the extent the amount of the distribution exceeds your tax
basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings and profits under U.S. federal income tax
principles. Therefore, a U.S. Holder should expect that a distribution will be treated as a dividend even if that distribution would otherwise
be treated as a non-taxable return of capital or as capital gain under the rules described above.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Taxation of Dispositions of Ordinary Shares</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the passive foreign investment company
rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other taxable disposition of a share equal to
the difference between the amount realized (in U.S. dollars) for the share and your tax basis (in U.S. dollars) in the Ordinary Shares.
The gain or loss will be capital gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held
the Ordinary Shares for more than one year, you will generally be eligible for reduced tax rates. The deductibility of capital losses
is subject to limitations. Any such gain or loss that you recognize will generally be treated as United States source income or loss for
foreign tax credit limitation purposes which will generally limit the availability of foreign tax credits.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Passive Foreign Investment Company (&#8220;PFIC&#8221;)</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A non-U.S. corporation is considered a PFIC, as
defined in Section 1297(a) of the U.S. Internal Revenue Code, for any taxable year if either:&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 24px; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">at least 75% of its gross income for such taxable year is passive income; or</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income (the &#8220;asset test&#8221;).</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Passive income generally includes dividends, interest,
rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition
of passive assets. We will be treated as owning our proportionate share of the assets and earning our proportionate share of the income
of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the stock. In determining the value and composition
of our assets for purposes of the PFIC asset test, the value of our assets must be determined based on the market value of our Ordinary
Shares from time to time, which could cause the value of our non-passive assets to be less than 50% of the value of all of our assets
on any particular quarterly testing date for purposes of the asset test.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 132; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->126<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on our operations and the composition of
our assets we do not expect to be treated as a PFIC under the current PFIC rules. We must make a separate determination each&#160;year
as to whether we are a PFIC, however, and there can be no assurance with respect to our status as a PFIC for our current taxable&#160;year
or any future taxable&#160;year. Depending on the amount of assets held for the production of passive income, it is possible that, for
our current taxable&#160;year or for any subsequent taxable&#160;year, more than 50% of our assets may be assets held for the production
of passive income. We will make this determination following the end of any particular tax&#160;year. In addition, because the value of
our assets for purposes of the asset test will generally be determined based on the market price of our Ordinary Shares, our PFIC status
will depend in large part on the market price of our Ordinary Shares. Accordingly, fluctuations in the market price of the Ordinary Shares
may cause us to become a PFIC. In addition, the application of the PFIC rules&#160;is subject to uncertainty in several respects and the
composition of our income and assets will be affected by how, and how quickly, we spend our liquid assets. We are under no obligation
to take steps to reduce the risk of our being classified as a PFIC, and as stated above, the determination of the value of our assets
will depend upon material facts (including the market price of our Ordinary Shares from time to time) that may not be within our control.
If we are a PFIC for any&#160;year during which you hold Ordinary Shares, we will continue to be treated as a PFIC for all succeeding&#160;years
during which you hold Ordinary Shares. If we cease to be a PFIC and you did not previously make a timely &#8220;mark-to-market&#8221;
election as described below, however, you may avoid some of the adverse effects of the PFIC regime by making a &#8220;purging election&#8221;
(as described below) with respect to the Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we are a PFIC for your taxable year(s) during
which you hold Ordinary Shares, you will be subject to special tax rules with respect to any &#8220;excess distribution&#8221; that you
receive and any gain you realize from a sale or other disposition (including a pledge) of the Ordinary Shares, unless you make a &#8220;mark-to-market&#8221;
election as discussed below. Distributions you receive in a taxable year that are greater than 125% of the average annual distributions
you received during the shorter of the three preceding taxable years or your holding period for the Ordinary Shares will be treated as
an excess distribution. Under these special tax rules:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 24px; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the excess distribution or gain will be allocated ratably over your holding period for the Ordinary Shares;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the amount allocated to your current taxable year, and any amount allocated to any of your taxable year(s) prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the amount allocated to each of your other taxable year(s) will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The tax liability for amounts allocated to years
prior to the year of disposition or &#8220;excess distribution&#8221; cannot be offset by any net operating losses for such years, and
gains (but not losses) realized on the sale of the Ordinary Shares cannot be treated as capital, even if you hold the Ordinary Shares
as capital assets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A U.S. Holder of &#8220;marketable stock&#8221;
(as defined below) in a PFIC may make a mark-to-market election under Section 1296 of the US Internal Revenue Code for such stock to elect
out of the tax treatment discussed above. If you make a mark-to-market election for first taxable year which you hold (or are deemed to
hold) Ordinary Shares and for which we are determined to be a PFIC, you will include in your income each year an amount equal to the excess,
if any, of the fair market value of the Ordinary Shares as of the close of such taxable year over your adjusted basis in such Ordinary
Shares, which excess will be treated as ordinary income and not capital gain. You are allowed an ordinary loss for the excess, if any,
of the adjusted basis of the Ordinary Shares over their fair market value as of the close of the taxable year. Such ordinary loss, however,
is allowable only to the extent of any net mark-to-market gains on the Ordinary Shares included in your income for prior taxable years.
Amounts included in your income under a mark-to-market election, as well as gain on the actual sale or other disposition of the Ordinary
Shares, are treated as ordinary income. Ordinary loss treatment also applies to any loss realized on the actual sale or disposition of
the Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-market gains previously included for such
Ordinary Shares. Your basis in the Ordinary Shares will be adjusted to reflect any such income or loss amounts. If you make a valid mark-to-market
election, the tax rules that apply to distributions by corporations which are not PFICs would apply to distributions by us, except that
the lower applicable capital gains rate for qualified dividend income discussed above under &#8220;&#8212; Taxation of Dividends and Other
Distributions on our Ordinary Shares&#8221; generally would not apply.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 133; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->127<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The mark-to-market election is available only
for &#8220;marketable stock,&#8221; which is stock that is traded in other than de minimis quantities on at least 15 days during each
calendar quarter (&#8220;regularly traded&#8221;) on a qualified exchange or other market (as defined in applicable U.S. Treasury regulations),
including the Nasdaq Capital Market. If the Ordinary Shares are regularly traded on the Nasdaq Capital Market and if you are a holder
of Ordinary Shares, the mark-to-market election would be available to you were we to be or become a PFIC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Alternatively, a U.S. Holder of stock in a PFIC
may make a &#8220;qualified electing fund&#8221; election under Section 1295(b) of the US Internal Revenue Code with respect to such PFIC
to elect out of the tax treatment discussed above. A U.S. Holder who makes a valid qualified electing fund election with respect to a
PFIC will generally include in gross income for a taxable year such holder&#8217;s pro rata share of the corporation&#8217;s earnings
and profits for the taxable year. However, the qualified electing fund election is available only if such PFIC provides such U.S. Holder
with certain information regarding its earnings and profits as required under applicable U.S. Treasury regulations. We do not currently
intend to prepare or provide the information that would enable you to make a qualified electing fund election. If you hold Ordinary Shares
in any taxable year in which we are a PFIC, you will be required to file U.S. Internal Revenue Service Form 8621 in each such year and
provide certain annual information regarding such Ordinary Shares, including regarding distributions received on the Ordinary Shares and
any gain realized on the disposition of the Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If you do not make a timely &#8220;mark-to-market&#8221;
election (as described above), and if we were a PFIC at any time during the period you hold our Ordinary Shares, then such Ordinary Shares
will continue to be treated as stock of a PFIC with respect to you even if we cease to be a PFIC in a future year, unless you make a &#8220;purging
election&#8221; for the year we cease to be a PFIC. A &#8220;purging election&#8221; creates a deemed sale of such Ordinary Shares at
their fair market value on the last day of the last year in which we are treated as a PFIC. The gain recognized by the purging election
will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above. As a result
of the purging election, you will have a new basis (equal to the fair market value of the Ordinary Shares on the last day of the last
year in which we are treated as a PFIC) and holding period (which new holding period will begin the day after such last day) in your Ordinary
Shares for tax purposes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">IRC Section&#160;1014(a)&#160;provides for a step-up
in basis to the fair market value for our Ordinary Shares when inherited from a decedent that was previously a holder of our Ordinary
Shares. However, if we are determined to be a PFIC and a decedent that was a U.S. Holder did not make either a timely qualified electing
fund election for our first taxable&#160;year as a PFIC in which the U.S. Holder held (or was deemed to hold) our Ordinary Shares, or
a mark-to-market election and ownership of those Ordinary Shares are inherited, a special provision in IRC Section&#160;1291(e)&#160;provides
that the new U.S. Holder&#8217;s basis should be reduced by an amount equal to the Section&#160;1014 basis minus the decedent&#8217;s
adjusted basis just before death. As such if we are determined to be a PFIC at any time prior to a decedent&#8217;s passing, the PFIC
rules&#160;will cause any new U.S. Holder that inherits our Ordinary Shares from a U.S. Holder to not get a step-up in basis under Section&#160;1014
and instead will receive a carryover basis in those Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You are urged to consult your tax advisors regarding
the application of the PFIC rules to your investment in our Ordinary Shares and the elections discussed above.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Information Reporting and Backup Withholding</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dividend payments with respect to our Ordinary
Shares and proceeds from the sale, exchange or redemption of our Ordinary Shares may be subject to information reporting to the U.S. Internal
Revenue Service and possible U.S. backup withholding under Section 3406 of the U.S. Internal Revenue Code with at a current flat rate
of 24%. Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer identification number and makes
any other required certification on U.S. Internal Revenue Service Form W-9 or who is otherwise exempt from backup withholding. U.S. Holders
who are required to establish their exempt status generally must provide such certification on U.S. Internal Revenue Service Form W-9.
U.S. Holders are urged to consult their tax advisors regarding the application of the U.S. information reporting and backup withholding
rules.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 134; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->128<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Backup withholding is not an additional tax. Amounts
withheld as backup withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess
amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the U.S. Internal Revenue Service
and furnishing any required information. We do not intend to withhold taxes for individual shareholders. However, transactions effected
through certain brokers or other intermediaries may be subject to withholding taxes (including backup withholding), and such brokers or
intermediaries may be required by law to withhold such taxes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Hiring Incentives to Restore Employment
Act of 2010, certain U.S. Holders are required to report information relating to our Ordinary Shares, subject to certain exceptions (including
an exception for Ordinary Shares held in accounts maintained by certain financial institutions), by attaching a complete Internal Revenue
Service Form 8938, Statement of Specified Foreign Financial Assets, with their tax return for each year in which they hold Ordinary Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>E. Dividends and Paying Agents </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>F. Statement by Experts </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>G. Documents on Display </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to certain of the informational
filing requirements of the Exchange Act. Since we are a &#8220;foreign private issuer,&#8221; we are exempt from the rules and regulations
under the Exchange Act prescribing the furnishing and content of proxy statements, and our officers, directors and principal shareholders
are exempt from the reporting and &#8220;short-swing&#8221; profit recovery provisions contained in Section 16 of the Exchange Act, with
respect to their purchase and sale of our shares. In addition, we are not required to file reports and financial statements with the SEC
as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act. However, we are required to file
with the SEC an Annual Report on Form 20-F containing financial statements audited by an independent accounting firm. We also furnish
to the SEC, on Form 6-K, unaudited financial information after each of our first three fiscal quarters. Copies of reports and other information,
when so filed with the SEC, can be inspected and copied at the public reference facilities maintained by the SEC at 100 F Street, N.E.,
Room 1580, Washington, D.C. 20549. You can request copies of these documents, upon payment of a duplicating fee, by writing to the SEC.
The public may obtain information regarding the Washington, D.C. Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also
maintains a website at http://www.sec.gov that contains reports and other information that we file with or furnish electronically with
the SEC. Additionally, documents referred to in this Form 20-F may be inspected at our corporate offices, which are located at 501, Platinum
Tower, 233 Taicang Rd, HuangPu, Shanghai City, the PRC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>H. Subsidiary Information </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For a listing of our subsidiaries, see &#8220;Item 4C. Organizational
Structure&#8221; for a chart of our current structure.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_015"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;11. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Interest Rate Risk</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are exposed to interest rate risk while we
have short-term bank loans outstanding. Although interest rates for our short-term loans are typically fixed for the terms of the loans,
the terms are typically twelve months and interest rates are subject to change upon renewal.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 135; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->129<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Liquidity Risk</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are also exposed to liquidity risk which is
risk that it we will be unable to provide sufficient capital resources and liquidity to meet our commitments and business needs. Liquidity
risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, we will turn to other
financial institutions and related parties to obtain short-term funding to cover any liquidity shortage.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Foreign Exchange Risk </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As our principal activities are carried out in
the PRC, our transactions are mainly denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange
transactions involving RMB must take place through the PBOC or other institutions authorized to buy and sell foreign exchange. The exchange
rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC that are determined largely by supply
and demand. In July 2005, the PRC government changed its decades-old policy of pegging the value of RMB to the U.S. dollar, and RMB appreciated
more than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010, this appreciation halted and the
exchange rate between RMB and the U.S. dollar remained within a narrow band. Since June 2010, RMB has fluctuated against the U.S. dollar,
at times significantly and unpredictably. It is difficult to predict how market forces or PRC or U.S. government policy may impact the
exchange rate between RMB and the U.S. dollar in the future. The management does not expect that there will be any significant currency
risk for us during the reporting periods</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><div><a id="a_016"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;12. DESCRIPTION OF SECURITIES OTHER
THAN EQUITY SECURITIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>A. Debt Securities </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>B. Warrants and Rights </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>C. Other Securities </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>D. American Depositary Shares </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 136; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->130<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_017"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART&#160;II. </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_018"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;13. DEFAULTS, DIVIDEND ARREARAGES
AND DELINQUENCIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">None.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_019"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;14. MATERIAL MODIFICATIONS TO THE
RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Material Modifications to the Rights of Security Holders </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See &#8220;Item 10. Additional Information&#8221; for a description
of the rights of securities holders, which remain unchanged.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Use of Proceeds</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following &#8220;Use of Proceeds&#8221; information
relates to the registration statement on Form F-1, as amended (File Number: 333-264458) in relation to the initial public offering of
4,000,000 (or 800,000 Ordinary Shares reflecting the share consolidation took effect on August 10, 2022), at an initial public offering
price of $5.00 per Ordinary Share (or $1.00 per Ordinary Shares reflecting the share consolidation took effect on August 10, 2022). Our
initial public offering closed on July 13, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We received net proceeds of approximately $ 16.91
million, after deducting underwriting discounts and estimated offering expenses payable by us. The total expense incurred for our Company&#8217;s
account in connection with our initial public offering was approximately $3.09 million, which included approximately $1.45 million in
underwriting discounts for the initial public offering and approximately $1.64 million in other costs and expenses for our initial public
offering. None of the transaction expenses included payments to directors or officers of our Company or their associates, persons owning
more than 10% or more of our equity securities or our affiliates. None of the net proceeds we received from the initial public offering
were paid, directly or indirectly, to any of our directors or officers or their associates, persons owning 10% or more of our equity securities
or our affiliates. As of April 22, 2023, we have used $4.18 million from our initial public offering for general operations. We intend
to use the remaining proceeds from our initial public offering as disclosed in our registration statement on Form F-1. Our management,
however, will have significant flexibility and discretion to apply the net proceeds from our initial public offering. If an unforeseen
event occurs or business conditions change, we may use the proceeds of this offering differently than as disclosed previously.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_020"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;15. CONTROLS AND PROCEDURES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Evaluation of Disclosure Controls and Procedures </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Disclosure controls and procedures are designed
to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported
within the time periods specified in the SEC&#8217;s rules and forms, and that such information is accumulated and communicated to our
management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management, with the participation of our
chief executive officer and chief financial officer, has performed an evaluation of the effectiveness of our disclosure controls and procedures
(as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report, as required by Rule 13a-15(b)
under the Exchange Act. Based on that evaluation, our management has concluded that, as of December 31, 2022, our disclosure controls
and procedures were ineffective to ensure that the information required to be disclosed by us in reports that we file or submit under
the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC&#8217;s rules and forms,
and that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated
to our management, including our chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 137; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->131<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Management&#8217;s Annual Report on Internal Control over Financial
Reporting </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management is responsible for establishing
and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange
Act of 1934, as amended. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with Generally
Accepted Accounting Principles (GAAP) in the United States of America and includes those policies and procedures that (1)&#160;pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of our company; (2)&#160;provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated
financial statements in accordance with GAAP, and that receipts and expenditures of our company are being made only in accordance with
authorizations of our management and directors; and (3)&#160;provide reasonable assurance regarding prevention or timely detection of
the unauthorized acquisition, use or disposition of our company&#8217;s assets that could have a material effect on the consolidated financial
statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because of its inherent limitations, internal
control over financial reporting may not prevent or detect all potential misstatements. Also, projections of any evaluation of effectiveness
to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As required by Section&#160;404 of the Sarbanes-Oxley
Act of 2002 and related rules as promulgated by the SEC, our management, including our chief executive officer and chief financial officers,
assessed the effectiveness of internal control over financial reporting as of December&#160;31, 2022 using the criteria set forth in the
report &#8220;Internal Control&#8212;Integrated Framework (2013)&#8221; published by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on this evaluation, the management concluded that our internal control over financial reporting was ineffective
as of December&#160;31, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The material weaknesses identified relate to (i)&#160;our
lack of a sufficient number of finance and accounting personnel or sufficiently trained finance and accounting personnel, as well as comprehensive
accounting policies in accordance with U.S.&#160;GAAP financial reporting; and (ii)&#160;our internal control policy does not have a proper
approval mechanism, and our lack of internal controls on performing periodic reviews of user accounts and their level of authorization
in the financial systems. We plan to implement a number of measures to remedy these material weaknesses. To remedy the identified material
weakness and the other control deficiencies, we have implemented and will continue to implement initiatives to improve our internal control
over financial reporting to address the material weaknesses that have been identified, including: (i)&#160;obtain additional resources,
including experienced staff with U.S.&#160;GAAP and SEC reporting knowledge, to strengthen the financial reporting function and to set
up financial and system control framework; (ii)&#160;conducting regular and continuous U.S.&#160;GAAP accounting and financial reporting
training programs for our accounting and financial reporting personnel, including sending our financial staff to attend external U.S.&#160;GAAP
training courses; and (iii)&#160;optimizing our financial systems by establishing a proper approval mechanism and performing periodic
reviews of users accounts and their level of authorization.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a company with less than US$1.235&#160;billion
in revenue for our last fiscal year, we qualify as an &#8220;emerging growth company&#8221; pursuant to the JOBS Act. An emerging growth
company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies.
These provisions include exemption from the auditor attestation requirement under Section&#160;404 of the Sarbanes-Oxley Act of 2002,
in the assessment of the emerging growth company&#8217;s internal control over financial reporting.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 138; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->132<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Attestation Report of the Registered Public Accounting Firm </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This annual report does not include an attestation
report of our independent registered public accounting firm regarding internal control over financial reporting as we qualify as an &#8220;emerging
growth company&#8221; under section 3(a) of the Securities Exchange Act of 1934, as amended, and are therefore exempt from the attestation
requirement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Changes in Internal Control </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There were no changes in our internal controls
over financial reporting that occurred during the period covered by this annual report on Form 20-F that have materially affected, or
are reasonably likely to materially affect, our internal control over financial reporting.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><div><a id="a_021"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;16. [RESERVED]</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_022"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;16A. AUDIT COMMITTEE FINANCIAL EXPERT</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, an &#8220;audit committee financial
expert&#8221; within the meaning of Item 407(d)(5) of Regulation S-K, is an individual member of the Audit Committee who:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">understands generally accepted accounting principles and financial statements,</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">is able to assess the general application of such principles in connection with accounting for estimates, accruals and reserves,</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">has experience preparing, auditing, analyzing or evaluating financial statements comparable to the breadth and complexity to our financial statements,</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">understands internal controls over financial reporting, and</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">understands audit committee functions.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An &#8220;audit committee financial expert&#8221;
may acquire the foregoing attributes through:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">education and experience as a principal financial officer, principal accounting officer, controller, public accountant, auditor or person serving similar functions;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor or person serving similar functions; experience overseeing or assessing the performance of companies or public accounts with respect to the preparation, auditing or evaluation of financial statements; or</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">other relevant experience.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board of directors has determined that both
Mr. Angel Colon qualify as audit committee financial experts and have the accounting or financial management expertise as defined under
Item 407(d)(5) of Regulation S-K and required under Nasdaq Rule 5605(c)(2)(A).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 139; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->133<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_023"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-transform: uppercase"><b>Item
</b></span><b>16<span style="text-transform: uppercase">B. Code of Ethics.</span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A Code of Ethics is a written standard designed
to deter wrongdoing and to promote:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">honest and ethical conduct,</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">full, fair, accurate, timely and understandable disclosure in regulatory filings and public statements,</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">compliance with applicable laws, rules and regulations,</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the prompt reporting violation of the code, and</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">accountability for adherence to the Code of Business Conduct and Ethics.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have adopted a Code of Business Conduct and
Ethics that applies to our principal executive officer, principal financial officer, principal accounting officer and controller, or persons
performing similar functions. The Code of Business Conduct and Ethics is currently available at our corporate website at www.sentageholdings.com.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><div><a id="a_024"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;16C. PRINCIPAL ACCOUNTANT FEES AND
SERVICES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table shows the fees that we paid
and accrued for audit and other services provided by Enrome LLP our independent registered public accounting firm for fiscal years 2022
and 2021, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Enrome LLP</i></b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For&#160;the&#160;Year&#160;Ended<br/> December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit fees<sup>(1)</sup></span></td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left"></td><td style="width: 9%; text-align: right">350,000</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">220,000</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit related fees<sup>(2)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tax fees<sup>(3)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt">All other fees</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">350,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">220,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Audit fees&#8221; means the aggregate fees billed for professional services rendered by our independent registered public accounting firm for the audit of our annual consolidated financial statements and the review of our comparative interim financial information.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Audit related fees&#8221; means the aggregate fees billed for related services by our principal accountant that are reasonably related to the performance of the audit or review of our financial statements and are not reported under Audit fees.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Tax fees&#8221; represents the aggregated fees billed for professional services rendered by our independent registered public accounting firm for tax compliance, tax advice, and tax planning.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audit committee is responsible for the oversight
of our independent accountants&#8217; work. The policy of our audit committee is to pre-approve all audit and non-audit services provided
by Enrome, including audit services, audit-related services, tax services and other services as described above, other than those for
de minimis services which are approved by the audit committee prior to the completion of the audit.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 140; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->134<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_025"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;16D. EXEMPTIONS FROM THE LISTING
STANDARDS FOR AUDIT COMMITTEES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_026"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;16E. PURCHASES OF EQUITY SECURITIES
BY THE ISSUER AND AFFILIATED PURCHASERS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There have been no purchases of equity securities required to be disclosed
in response to this Item.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_027"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>I<span style="text-transform: uppercase">tem
16F. Change in Registrant&#8217;s Certifying Accountant.</span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 29, 2022, we dismissed Friedman LLP (&#8220;Friedman&#8221;)
as the independent registered public accounting firm. The reports of Friedman on our financial statements for the past fiscal years ended
December 31, 2020 and December 31, 2019 contained no adverse opinion or a disclaimer of opinion and was not modified. The decision to
change the independent accountant was approved and ratified by our Board of Directors on April 29, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During our fiscal years ended December 31, 2020
and December 31, 2019 and through the date of the dismissal, we did not have any disagreements with Friedman, on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction
of Friedman, would have caused it to make reference to the subject matter of such disagreements in its report on our financial statements
for such period.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the fiscal years ended December 31, 2020
and December 31, 2019 and through the date of the dismissal, there were no reportable events as defined under Item 304(a)(1)(v) of Regulation
S-K adopted by the Securities and Exchange Commission.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective April 29, 2022, we engaged Enrome LLP
as our independent registered public accounting firm. During the two most recent fiscal years and through the date of our engagement,
we did not consult with Enrome LLP regarding either (1) the application of accounting principles to a specified transaction, either completed
or proposed, or the type of audit opinion that might be rendered on our financial statements, or (2) any matter that was either the subject
of a disagreement or a reportable event (as defined in Item 304(a)(1)(v) of Regulation S-K). In approving the selection Enrome LLP as
the Company&#8217;s new independent registered public accounting firm, our Board of Directors considered all relevant factors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_028"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;16G. CORPORATE GOVERNANCE</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a foreign private issuer with shares listed
on the Nasdaq Capital Market we are subject to corporate governance requirements imposed by Nasdaq. Under Nasdaq Stock Market Rule&#160;5615(a)(3),
a foreign private issuer such as us may follow its home-country corporate governance practices in lieu of certain of the Nasdaq Stock
Market Rules&#160;corporate governance requirements. We are committed to a high standard of corporate governance. As such, we strive to
comply with most of the Nasdaq corporate governance practices. However, our current corporate governance practices differ from Nasdaq
corporate governance requirements for U.S. companies in certain respects, as summarized below:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a majority of directors being independent &#8212; Cayman Islands law and generally accepted business practices in the Cayman Islands do not require that a majority of our board of directors be independent. We currently rely upon the relevant exemption for foreign private issuers with respect to the Nasdaq requirement to have a majority of independent directors;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a nominating and corporate governance committee composed entirely of independent directors &#8212; Cayman Islands law and generally accepted business practices in the Cayman Islands do not require that our nominating and corporate governance committee be composed entirely of independent directors. We currently rely upon the exemption for foreign private issuers with respect to the Nasdaq requirement with respect to the composition of the nominating and corporate governance committee;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 141; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->135<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a compensation committee composed entirely of independent directors &#8212; Cayman Islands law and generally accepted business practices in the Cayman Islands do not require that our compensation committee be composed entirely of independent directors. We currently rely upon the exemption for foreign private issuers with respect to the Nasdaq requirement with respect to the composition of the compensation committee;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">we will not provide an annual certification by our chief executive officer that he or she is not aware of any non-compliance&#160;with any corporate governance rules of the Nasdaq, as such certification is not required under Cayman Islands law;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">have regularly scheduled executive sessions with only non-management&#160;directors &#8212; Cayman Islands law and generally accepted business practices in the Cayman Islands do not require that our board of directors hold regularly scheduled executive sessions with only non-management&#160;directors. We currently rely upon the exemption for foreign private issuers with respect to the Nasdaq requirement with respect to executive sessions; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shareholder approval &#8212; Cayman Islands law and generally accepted business practices in the Cayman Islands do not require us to seek shareholder approval for (i) the establishment, implementation and material revisions of the terms of share incentive plans, (ii) the issuance of more than 1% of our outstanding Ordinary Shares or more than 1% of our outstanding voting power to a related party, (iii)&#160;the issuance of more than 20% of our outstanding Ordinary Shares or voting power, (iv) an issuance in connection with an acquisition, and (iv) an issuance that would result in a change of control. We currently rely upon exemption for foreign private issuers with respect to the Nasdaq shareholder approval requirements.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may determine to voluntarily comply with one
or more of the foregoing provisions as required by the Nasdaq Stock Market Rule.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_029"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM&#160;16H. MINE SAFETY DISCLOSURE</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_030"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b>Item&#160;16I. DISCLOSURE
REGARDING FOREIGN JURISDICTIO</b></span><b>NS THAT PREVENT INSPECTIONS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 142; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->136<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_031"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART III</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_032"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>ITEM&#160;17. FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have elected to provide financial statements
pursuant to Item 18.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_033"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>ITEM&#160;18. FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The consolidated financial statements of Sentage
Holdings are included at the end of this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_034"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>I<span style="text-transform: uppercase">tem&#160;</span>19. EXHIBITS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>EXHIBIT&#160;INDEX</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="border-bottom: Black 1.5pt solid; vertical-align: top; width: 9%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Exhibit&#160;No.</b></span></td>
    <td style="padding-bottom: 1.5pt; vertical-align: top; width: 1%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 90%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Description</b></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.1</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex3-1_sentage.htm" style="-sec-extract: exhibit">Amended and Restated Memorandum and Articles of Association (incorporated by reference to Exhibit&#160;3.1 of our Registration Statement on Form&#160;F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March&#160;22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex4-1_sentage.htm" style="-sec-extract: exhibit">Specimen Certificate for Ordinary Shares (incorporated herein by reference to Exhibit&#160;4.1 to the registration statement on Form&#160;F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March&#160;22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.2</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex1-1_sentage.htm">Form&#160;of Underwriting Agreement (incorporated herein by reference to Exhibit&#160;1.1 to the registration statement on Form&#160;F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March&#160;22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.3*</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="f20f2022ex2-3_sentagehold.htm">Description of Securities</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1</span></td>
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-1_sentage.htm">Form&#160;of Employment Agreement by and between executive officers and the Registrant (incorporated herein by reference to Exhibit&#160;10.1 to the registration statement on Form&#160;F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-2_sentage.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form&#160;of Indemnification Agreement with the Registrant&#8217;s directors and officers (incorporated herein by reference to Exhibit&#160;10.2 to the registration statement on Form&#160;F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</span></a></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-3_sentage.htm">English Translation of Form of Exclusive Business Cooperation Agreement between WFOE and each of Our VIEs and a Schedule of All Exclusive Business Cooperation Agreements Adopting the Same Form (incorporated herein by reference to Exhibit 10.3 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.4</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-4_sentage.htm">English Translation of Form of Power English Translation of Form of Power of Attorney Granted by Shareholders of each of our VIEs and a Schedule of All Powers of Attorney Adopting the Same Form (incorporated herein by reference to Exhibit 10.4 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.5</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-5_sentage.htm">English Translation of Form of Equity Pledge Agreement among WFOE, each of our VIEs, and Shareholders of Each of Our VIEs and a Schedule of All Equity Pledge Agreements Adopting the Same Form (incorporated herein by reference to Exhibit 10.5 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 143; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->137<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="width: 9%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.6</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 90%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-6_sentage.htm">English translation of Form of Exclusive Purchase Option Agreement among WFOE, each of Our VIEs, and Shareholders of each of Our VIEs and a Schedule of All Exclusive Purchase Option Agreements Adopting the Same Form (incorporated herein by reference to Exhibit 10.6 to the registration statement on Form F 1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.7</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-7_sentage.htm">English Translation of Form of Spousal Consent Granted by the Spouse of each Individual Shareholder of our VIEs and a Schedule of All Spousal Consents Adopting the Same Form (incorporated herein by reference to Exhibit 10.7 to the registration statement on Form F 1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.8</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-8_sentage.htm">English Translation of Form of Loan Agreement Between WFOE and Shareholders of each of our VIEs and a Schedule of All Loan Agreements Adopting the Same Form (incorporated herein by reference to Exhibit 10.8 to the registration statement on Form F-1 (File No. 333 254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.9</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-9_sentage.htm">English Translation of Strategic Cooperation Agreement Between Daxin Zhuohui Financial Information Service (Shanghai) Co., Ltd. And Nanchang Jintou Puhui Information Service Co., Ltd., Dated August 28, 2019 (incorporated herein by reference to Exhibit 10.9 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.10</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-10_sentage.htm">English Translation of Cooperation Agreement For Reserve Funds Between Party A: Netsunion Clearing Corporation And Qingdao Buytop Payment Service Co., Ltd., Dated July 15, 2019 (incorporated herein by reference to Exhibit 10.10 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.11</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021016855/ea138083ex10-11_sentage.htm">English Translation of Framework Consulting Service Agreement Between Daxin Zhuohui Financial Information Service (Shanghai) Co., Ltd. And Tianjin Financial Asset Exchange Co., Ltd. Dated June 12, 2020 (incorporated herein by reference to Exhibit 10.11 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.12</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-12_sentagehold.htm">English Translation of Exclusive Purchase Option Agreement Among WFOE, Daxin Zhuohui, And Shareholders of Daxin Zhuohui (incorporated herein by reference to Exhibit 10.12 to the Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.13</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-13_sentagehold.htm">English Translation of Spousal Consents Granted By The Spouses of Certain Shareholders of Daxin Zhuohui (incorporated herein by reference to Exhibit 10.13 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.14</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-14_sentagehold.htm">English Translation of Loan Agreements Between WFOE And Shareholders of Daxin Zhuohui (incorporated herein by reference to Exhibit 10.14 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.15</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-15_sentagehold.htm">English Translation of Exclusive Business Cooperation Agreement Between WFOE And Qingdao Buytop (incorporated herein by reference to Exhibit 10.15 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2020)</a>&#160;&#160; &#160;</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.16</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-16_sentagehold.htm">English Translation of Power of Attorneys Granted By Shareholders of Qingdao Buytop (incorporated herein by reference to Exhibit 10.16 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.17</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-17_sentagehold.htm">English Translation of Equity Pledge Agreements Among WFOE, Qingdao Buytop, And Each Shareholder of Qingdao Buytop (incorporated herein by reference to Exhibit 10.17 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.18</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-18_sentagehold.htm">English Translation of Exclusive Purchase Option Agreement Among WFOE, Qingdao Buytop, And Shareholders of Qingdao Buytop (incorporated herein by reference to Exhibit 10.18 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 144; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->138<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="width: 9%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.19</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 90%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-19_sentagehold.htm">English Translation of Loan Agreements Between WFOE And Shareholders of Qingdao Buytop (incorporated herein by reference to Exhibit 10.19 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.20</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-20_sentagehold.htm">English Translation of Exclusive Business Cooperation Agreement Between WFOE And Zhenyi (incorporated herein by reference to Exhibit 10.20 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2020)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.21 </span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-21_sentagehold.htm">English Translation of Power of Attorneys Granted By Shareholders of Zhenyi (incorporated herein by reference to Exhibit 10.21 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.22</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-22_sentagehold.htm">English Translation of Equity Pledge Agreements Among WFOE, Daxin Wealth, And Each Shareholder of Zhenyi (incorporated herein by reference to Exhibit 10.22 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.23</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-23_sentagehold.htm">English Translation of Exclusive Purchase Option Agreement Among WFOE, Zhenyi, And Shareholders of Zhenyi (incorporated herein by reference to Exhibit 10.23 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.24</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-24_sentagehold.htm">English Translation of Spousal Consents Granted By The Spouses of Certain Shareholders of Zhenyi (incorporated herein by reference to Exhibit 10.24 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.25</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex10-25_sentagehold.htm">English Translation of Loan Agreements Between WFOE And Shareholders of Zhenyi (incorporated herein by reference to Exhibit 10.25 to the registration statement on Form F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.1*</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="f20f2022ex8-1_sentagehold.htm">Principal Subsidiaries and Consolidated Affiliated Entities of the Registrant</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">11.1</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1810467/000121390021031487/ea142047ex99-1_sentagehold.htm">Code of Business Conduct and Ethics of the Registrant (incorporated herein by reference to Exhibit&#160;99.1 to the registration statement on Form&#160;F-1 (File No.&#160;333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">12.1*</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="f20f2022ex12-1_sentagehold.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certification of Chief Executive Officer pursuant to Section&#160;302 of the Sarbanes-Oxley Act of 2002</span></a></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">12.2*</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="f20f2022ex12-2_sentagehold.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certification of Chief Financial Officer pursuant to Section&#160;302 of the Sarbanes-Oxley Act of 2002</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">13.1 **</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="f20f2022ex13-1_sentagehold.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certification of Chief Executive Officer pursuant to 18 U.S.C. Section&#160;1350, as adopted pursuant to Section&#160;906 of the Sarbanes-Oxley Act of 2002</span></a></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">13.2 **</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="f20f2022ex13-2_sentagehold.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certification of Chief Financial Officer pursuant to 18 U.S.C. Section&#160;1350, as adopted pursuant to Section&#160;906 of the Sarbanes-Oxley Act of 2002</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101*</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following financial statements from the Company&#8217;s Annual Report on Form&#160;20-F for the fiscal&#160;year ended December&#160;31, 2022, formatted in Inline XBRL: (i)&#160;Consolidated Balance Sheets, (ii)&#160;Consolidated Statements of Comprehensive Income and Other Comprehensive Income, (iii)&#160;Consolidated Statements of Changes in Shareholders&#8217; Equit, (iv)&#160;Consolidated Statements of Cash Flows, and (v)&#160;Notes&#160;to Consolidated Financial Statements, tagged as blocks of text and including detailed tags</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">15.1*</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="f20f2022ex15-1_sentagehold.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent Letter of Beijing Dentons Law Offices, LLP (Fuzhou)</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">104*</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cover Page&#160;Interactive Data File (formatted as Inline XBRL and contained in Exhibit&#160;101)</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed with this annual report on Form&#160;20-F</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">**</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furnished with this annual report on Form&#160;20-F</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"></p><div>

</div><!-- Field: Page; Sequence: 145; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->139<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SIGNATURES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The registrant hereby certifies that it meets
all of the requirements for filing its annual report on Form 20-F and that it has duly caused and authorized the undersigned to sign this
annual report on its behalf.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Sentage Holdings Inc. </b></span></td></tr>
  <tr>
    <td style="width: 60%">&#160;</td>
    <td style="width: 6%">&#160;</td>
    <td style="width: 34%">&#160;</td></tr>
  <tr>
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</span></td>
    <td style="border-bottom: black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/ Qiaoling Lu</i></span></td></tr>
  <tr>
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Qiaoling Lu</span></td></tr>
  <tr>
    <td>&#160;</td>
    <td style="vertical-align: top"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer, Chairman of the Board of Directors, and Director</span></td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal Executive Officer)</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Date: May 1, 2023</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 146; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->140<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SENTAGE HOLDINGS INC. AND SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify"></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; "> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Page</b></span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 89%; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#f_001">Report of Independent Registered Public Accounting Firm (PCAOB ID: <ix:nonNumeric contextRef="c0" name="dei:AuditorFirmId">6907</ix:nonNumeric>)</a></span></td> <td style="width: 1%">&#160;</td> <td style="width: 10%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-2</span></td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td> <td>&#160;</td> <td style="text-align: center">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#f_002">Consolidated Balance Sheets as of December&#160;31, 2021 and 2022</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-3</span></td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#f_003">Consolidated Statements of Comprehensive Income and Other Comprehensive Income for the years ended December&#160;31, 2020, 2021 and 2022</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-5</span></td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#f_004">Consolidated Statements of Changes in Shareholders&#8217; Equity for the years ended December&#160;31, 2020, 2021 and 2022</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-6</span></td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#f_005">Consolidated Statements of Cash Flows for the years ended December&#160;31, 2020, 2021 and 2022</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-7</span></td></tr> <tr style="vertical-align: bottom; "> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#f_006">Notes to the Consolidated Financial Statements</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-8</span></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 147; Options: NewSection; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img alt="" src="image_004.jpg"/></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="f_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Report of Independent Registered Public Accounting
Firm</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>To the Shareholders and Board of Directors</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Sentage Holdings Inc. and Its Subsidiaries</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Opinion on the Financial Statements</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying consolidated
balance sheets of Sentage Holdings Inc. (the &#8220;Company&#8221;) and its subsidiaries (the &#8220;Group&#8221;) as of December 31,
2022 and 2021, the related consolidated statements of comprehensive income and other comprehensive income, changes in shareholders&#8217;
equity, and cash flows for the years ended December 31, 2022, 2021 and 2020, and the related notes (collectively, the &#8220;consolidated
financial statements&#8221;). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial
position of the Group as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years ended December
31, 2022, 2021 and 2020, in conformity with accounting principles generally accepted in the United States of America (&#8220;U.S. GAAP&#8221;).</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Basis for Opinion</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These consolidated financial statements are the
responsibility of the Company&#8217;s management. Our responsibility is to express an opinion on these consolidated financial statements
based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (&#8220;PCAOB&#8221;)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company&#8217;s
internal control over financial reporting. Accordingly, we express no such opinion.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides
a reasonable basis for our opinion.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">/s/ <ix:nonNumeric contextRef="c0" name="dei:AuditorName">Enrome LLP</ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have served as the Company&#8217;s auditor
since 2021.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><ix:nonNumeric contextRef="c0" name="dei:AuditorLocation">Singapore</ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">May 1, 2023</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 148; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES</b></p><div>

</div><div><a id="f_002"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED BALANCE SHEETS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Note</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">ASSETS</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Current assets</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 68%; text-align: left">Cash and cash equivalents</td><td style="width: 1%">&#160;</td>
    <td style="width: 7%; text-align: center">3</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">10,753,118</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">3,805,135</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Restricted cash</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCashCurrent" scale="0" unitRef="usd">30,269</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCashCurrent" scale="0" unitRef="usd">23,089</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Loan receivable</td><td>&#160;</td>
    <td style="text-align: center">5</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NotesAndLoansReceivableNetCurrent" scale="0" unitRef="usd">5,500,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NotesAndLoansReceivableNetCurrent" scale="0" unitRef="usd">5,500,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: center">4</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">403,708</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">433,510</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Prepaid expenses and other current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">6</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" scale="0" unitRef="usd">515,062</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" scale="0" unitRef="usd">4,579,646</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">17,202,157</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">14,341,380</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Non-current assets</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Right-of-use assets, net</td><td>&#160;</td>
    <td style="text-align: center">9</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseRightOfUseAsset" scale="0" unitRef="usd">162,270</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Plant and equipment, net</td><td>&#160;</td>
    <td style="text-align: center">7</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">120,280</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">53,023</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Intangible assets, net</td><td>&#160;</td>
    <td style="text-align: center">8</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IntangibleAssetsNetExcludingGoodwill" scale="0" unitRef="usd">30,547</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IntangibleAssetsNetExcludingGoodwill" scale="0" unitRef="usd">89,475</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Deferred tax assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">10</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxAssetsNet" scale="0" unitRef="usd">13,724</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxAssetsNet" scale="0" unitRef="usd">12,686</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: justify; padding-bottom: 1.5pt">Total non-current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsNoncurrent" scale="0" unitRef="usd">164,551</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsNoncurrent" scale="0" unitRef="usd">317,454</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 9pt">Total assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">17,366,708</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">14,658,834</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 149; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES</b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED BALANCE SHEETS (Continued)</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Note</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">LIABILITIES AND SHAREHOLDERS&#8217; EQUITY</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Current liabilities</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 68%; text-align: left">Accounts payable</td><td style="width: 1%">&#160;</td>
    <td style="width: 7%; text-align: center">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">2,743</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">8,647</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Operating lease liabilities, current</td><td>&#160;</td>
    <td style="text-align: center">9</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityCurrent" scale="0" unitRef="usd">87,129</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Accrued expenses and other current liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">11</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">379,991</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">309,001</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total current liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">382,734</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">404,777</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Non-current liability</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Operating lease liabilities, non-current</td><td>&#160;</td>
    <td style="text-align: center">9</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityNoncurrent" scale="0" unitRef="usd">74,384</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Due to a related party, non-current</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">12</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToRelatedPartiesNoncurrent" scale="0" unitRef="usd">161,020</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToRelatedPartiesNoncurrent" scale="0" unitRef="usd">4,709</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total non-current liability</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesNoncurrent" scale="0" unitRef="usd">161,020</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesNoncurrent" scale="0" unitRef="usd">79,093</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Total liabilities</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">543,754</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">483,870</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Shareholders&#8217; equity</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Ordinary shares, $<ix:nonFraction contextRef="c3" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c2" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.005</ix:nonFraction></ix:nonFraction> par value, <ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares">10,000,000</ix:nonFraction></ix:nonFraction> shares authorized, <ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesOutstanding" scale="0" unitRef="shares">2,800,000</ix:nonFraction></ix:nonFraction> and <ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesOutstanding" scale="0" unitRef="shares">2,805,325</ix:nonFraction></ix:nonFraction> shared issued and outstanding as of December 31, 2022 and 2021*</td><td>&#160;</td>
    <td style="text-align: center">14</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_0_fact" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">14,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_1_fact" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">14,027</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Additional paid in capital</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">55,327,885</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">55,327,858</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Statutory reserves</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="sntg:StatutoryReserves" scale="0" unitRef="usd">166,038</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="sntg:StatutoryReserves" scale="0" unitRef="usd">166,038</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Accumulated deficit</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">38,898,664</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">41,460,571</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Accumulated other comprehensive income</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" scale="0" unitRef="usd">213,695</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" scale="0" unitRef="usd">127,612</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: justify; padding-bottom: 1.5pt">Total shareholders&#8217; equity</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">16,822,954</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">14,174,964</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt; text-indent: 10.05pt">Total liabilities and shareholders&#8217; equity</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">17,366,708</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">14,658,834</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><ix:footnote id="ix_0_footnote" xml:lang="en-US">Retrospectively restated for one-for-five reverse split with effective
date of August 10, 2022.</ix:footnote></p></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 150; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES</b></p><div>

</div><div><a id="f_003"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
AND OTHER COMPREHENSIVE INCOME</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Note</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">OPERATING REVENUE</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 56%; text-align: left; text-indent: -9pt; padding-left: 9pt">Consumer loan repayment and collection management service fees</td><td style="width: 1%">&#160;</td>
    <td style="width: 7%; text-align: center">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="sntg:ConsumerLoanRepaymentAndCollectionManagementServiceFees" scale="0" unitRef="usd">1,074,734</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="sntg:ConsumerLoanRepaymentAndCollectionManagementServiceFees" scale="0" unitRef="usd">156,062</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Loan recommendation service fees</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="sntg:LoanRecommendationServiceFees" scale="0" unitRef="usd">2,087,717</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="sntg:LoanRecommendationServiceFees" scale="0" unitRef="usd">1,177,822</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Prepaid payment network service fee</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="sntg:PrepaidPaymentNetworkServiceFee" scale="0" unitRef="usd">432,958</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="sntg:PrepaidPaymentNetworkServiceFee" scale="0" unitRef="usd">928,565</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="sntg:PrepaidPaymentNetworkServiceFee" scale="0" unitRef="usd">161,372</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total operating revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">3,595,409</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">2,262,449</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">161,372</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">OPERATING EXPENSE</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Selling, general and administrative expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">1,414,979</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">3,041,415</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">2,732,379</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total operating expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingCostsAndExpenses" scale="0" unitRef="usd">1,414,979</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingCostsAndExpenses" scale="0" unitRef="usd">3,041,415</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingCostsAndExpenses" scale="0" unitRef="usd">2,732,379</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">INCOME(LOSS) FROM OPERATIONS</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">2,180,430</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">778,966</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">2,571,007</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">OTHER INCOME (EXPENSES)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherIncome" scale="0" sign="-" unitRef="usd">354</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherIncome" scale="0" sign="-" unitRef="usd">56,931</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherIncome" scale="0" unitRef="usd">9,100</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">INCOME(LOSS) BEFORE INCOME TAX PROVISION</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossBeforeTax" scale="0" unitRef="usd">2,180,076</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossBeforeTax" scale="0" sign="-" unitRef="usd">835,897</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossBeforeTax" scale="0" sign="-" unitRef="usd">2,561,907</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">INCOME TAX EXPENSE</td><td>&#160;</td>
    <td style="text-align: center">10</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseDebt" scale="0" unitRef="usd">592,701</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseDebt" scale="0" unitRef="usd">257,344</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 9pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">NET INCOME(LOSS)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">1,587,375</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">1,093,241</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">2,561,907</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">OTHER COMPREHENSIVE INCOME</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="sntg:ForeignCurrencyTranslationAdjustment" scale="0" unitRef="usd">36,993</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="sntg:ForeignCurrencyTranslationAdjustment" scale="0" unitRef="usd">152,700</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="sntg:ForeignCurrencyTranslationAdjustment" scale="0" sign="-" unitRef="usd">86,083</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">COMPREHENSIVE INCOME (LOSS)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTax" scale="0" unitRef="usd">1,624,368</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTax" scale="0" sign="-" unitRef="usd">940,541</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTax" scale="0" sign="-" unitRef="usd">2,647,990</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 0.25in"><div style="-sec-ix-hidden: hidden-fact-2; -sec-ix-hidden: hidden-fact-1; -sec-ix-hidden: hidden-fact-0">Earnings(loss) per common share- basic and diluted</div></td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">0.79</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" sign="-" unitRef="usdPershares">0.46</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" sign="-" unitRef="usdPershares">1.08</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt; padding-left: 9pt"><div style="-sec-ix-hidden: hidden-fact-5; -sec-ix-hidden: hidden-fact-4; -sec-ix-hidden: hidden-fact-3">Weighted average shares- basic and diluted</div></td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" scale="0" unitRef="shares">2,000,000</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" scale="0" unitRef="shares">2,374,795</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" scale="0" unitRef="shares">2,376,764</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><ix:footnote id="ix_1_footnote" xml:lang="en-US">Retrospectively restated for one-for-five reverse split with effective
date of August 10, 2022.</ix:footnote></p></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 151; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES</b></p><div>

</div><div><a id="f_004"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS&#8217;
EQUITY</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Ordinary shares</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Additional<br/> paid-in<br/> capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Statutory Reserves</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Accumulated<br/> deficit</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Accumulated<br/> other<br/> comprehensive<br/> income(loss)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total<br/> equity<br/> (deficit)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: center">NOTE</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Shares*</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 22%; font-weight: bold; text-indent: -9pt; padding-left: 9pt">Balances as of January 1, 2020</td><td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 7%">&#160;</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 7%; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" id="ix_2_fact" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">2,000,000</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 7%; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">10,000</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 7%; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">38,419,832</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-6">-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 7%; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c9" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">39,226,760</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 7%; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c10" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">24,002</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 7%; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">772,926</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Net income for the year</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-7">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-8">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-9">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c15" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">1,587,375</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-10">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">1,587,375</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Foreign currency translation adjustment</td><td>&#160;</td>
    <td style="text-align: center"></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-11">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-12">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-13">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" scale="0" unitRef="usd">36,993</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" scale="0" unitRef="usd">36,993</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Balances as of December&#160;31, 2020</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c17" decimals="0" format="ixt:num-dot-decimal" id="ix_3_fact" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">2,000,000</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c17" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">10,000</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c18" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">38,419,832</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-14">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c20" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">37,639,385</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c21" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">60,995</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">851,442</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">Net loss for the year</td><td>&#160;</td>
    <td style="text-align: center"></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-15">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-16">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-17">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">1,093,241</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-18">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">1,093,241</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">Addition of share capital</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" id="ix_4_fact" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">800,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">4,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c29" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">16,908,053</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">16,912,053</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Statutory reserve</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-19">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-20">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c25" decimals="0" format="ixt:num-dot-decimal" name="sntg:StatutoryReserve" scale="0" unitRef="usd">166,038</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="sntg:StatutoryReserve" scale="0" sign="-" unitRef="usd">166,038</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-21">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-22">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Foreign currency translation adjustment</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-23">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-24">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-25">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-26">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" scale="0" unitRef="usd">152,700</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" scale="0" unitRef="usd">152,700</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Balances as of December 31, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c30" decimals="0" format="ixt:num-dot-decimal" id="ix_5_fact" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">2,800,000</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c30" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">14,000</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c31" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">55,327,885</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c32" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">166,038</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c33" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">38,898,664</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c34" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">213,695</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">16,822,954</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss for the year</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c35" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">2,561,907</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">2,561,907</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">Issuance of common stock for compensation</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfUnits" scale="0" unitRef="shares">5,325</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueIssuedForServices" scale="0" unitRef="usd">27</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c29" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueIssuedForServices" scale="0" sign="-" unitRef="usd">27</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Foreign currency translation adjustment</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-27">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-28">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-29">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-30">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c37" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" scale="0" sign="-" unitRef="usd">86,083</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" scale="0" sign="-" unitRef="usd">86,083</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Balances as of December&#160;31, 2022</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c38" decimals="0" format="ixt:num-dot-decimal" id="ix_6_fact" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">2,805,325</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c38" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">14,027</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c39" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">55,327,858</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c40" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">166,038</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c41" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">41,460,571</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c42" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">127,612</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">14,174,964</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><ix:footnote id="ix_2_footnote" xml:lang="en-US">Retrospectively restated for one-for-five reverse split with effective
date of August 10, 2022</ix:footnote></p></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 152; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;<b>&#160;SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES</b></p><div>

</div><div><a id="f_005"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the years ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Note</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Cash flows from operating activities</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 56%; text-align: left; text-indent: 9pt">Net income (loss)</td><td style="width: 1%">&#160;</td>
    <td style="width: 7%; text-align: center">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">1,587,375</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">1,093,241</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">2,561,907</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Adjustments to reconcile net income to cash and restricted cash provided by (used in) operating activities:</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 0.25in">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: center"></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">53,520</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">62,971</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">57,428</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 0.25in">Deferred income tax expense</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxExpenseBenefit" scale="0" unitRef="usd">592,701</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxExpenseBenefit" scale="0" unitRef="usd">74,243</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-31">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 0.25in">Impairment loss recognised in respect of receivables</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-32">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" unitRef="usd">54,896</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" unitRef="usd">4,548</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 9pt">Changes in operating assets and liabilities:</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 0.25in">Accounts receivable</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInReceivables" scale="0" unitRef="usd">918,303</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInReceivables" scale="0" sign="-" unitRef="usd">763,240</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInReceivables" scale="0" unitRef="usd">34,350</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 0.25in">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" scale="0" sign="-" unitRef="usd">90,290</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" scale="0" unitRef="usd">132,021</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" scale="0" unitRef="usd">4,064,584</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 0.25in">Interest accrued for lease liabilities</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-33">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-34">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOperatingLeaseLiability" scale="0" unitRef="usd">1,342</ix:nonFraction></td><td style="text-align: left"></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 0.25in">Contract liabilities</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredLiabilities" scale="0" sign="-" unitRef="usd">1,056,406</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredLiabilities" scale="0" sign="-" unitRef="usd">154,106</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-35">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0.25in">Accrued expenses and other current liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities" scale="0" unitRef="usd">116,033</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities" scale="0" unitRef="usd">41,354</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities" scale="0" sign="-" unitRef="usd">65,086</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: 9.05pt">Net cash provided by (used in) operating activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" unitRef="usd">465,210</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">382,664</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">6,662,609</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Cash flows from investing activities</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 0.25in">Additions to plant and equipment and intangible assets</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-36">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" scale="0" unitRef="usd">19,977</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" scale="0" unitRef="usd">34,346</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 0.25in">Investment in loans receivable</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-37">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsForProceedsFromLoansReceivable" scale="0" unitRef="usd">5,500,000</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-38">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: 9.05pt">Net cash (used in) investing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-39">-</div></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">5,519,977</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">34,346</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Cash flows from financing activities</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 0.25in">Deferred initial public offering costs</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="sntg:DeferredInitialPublicOfferingCost" scale="0" sign="-" unitRef="usd">765,885</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="sntg:DeferredInitialPublicOfferingCost" scale="0" unitRef="usd">765,885</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-40">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 0.25in">Payment of lease liabilities</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-41">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-42">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="sntg:IncreaseorDecreasePaymentofLeaseLiabilities" scale="0" sign="-" unitRef="usd">16,851</ix:nonFraction></p></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 0.25in">Proceeds from IPO</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-43">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromIssuanceInitialPublicOffering" scale="0" unitRef="usd">16,912,053</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-44">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0.25in">Proceeds from (Repayment to) related party loans</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromRepaymentsOfRelatedPartyDebt" scale="0" unitRef="usd">180,026</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromRepaymentsOfRelatedPartyDebt" scale="0" sign="-" unitRef="usd">1,276,641</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromRepaymentsOfRelatedPartyDebt" scale="0" sign="-" unitRef="usd">156,311</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: 9.05pt">Net cash provided by (used in) financing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" sign="-" unitRef="usd">585,859</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" unitRef="usd">16,401,297</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" sign="-" unitRef="usd">173,162</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Reconciliation of cash and restricted cash, beginning of year</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: 0.25in">Cash</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="0" unitRef="usd">227,387</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="0" unitRef="usd">117,434</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="0" unitRef="usd">10,753,118</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 9pt; padding-left: 9pt">Restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">23,644</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">22,948</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">30,269</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Cash and restricted cash, beginning of year</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">251,031</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">140,382</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">10,783,387</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Reconciliation of cash and restricted cash, end of year</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: 0.25in">Cash</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="0" unitRef="usd">117,434</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="0" unitRef="usd">10,753,118</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="0" unitRef="usd">3,805,135</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0.25in">Restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">22,948</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">30,269</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">23,089</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Cash and restricted cash, end of year</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">140,382</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">10,783,387</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">3,828,224</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Effect of exchange rate changes on cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">10,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">144,349</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" sign="-" unitRef="usd">85,046</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Net increase (decrease) in cash and restricted cash</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" sign="-" unitRef="usd">110,649</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" unitRef="usd">10,643,005</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" sign="-" unitRef="usd">6,955,163</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Cash and restricted cash, beginning of year</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" scale="0" unitRef="usd">251,031</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" scale="0" unitRef="usd">140,382</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" scale="0" unitRef="usd">10,783,387</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Cash and restricted cash, end of year</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" scale="0" unitRef="usd">140,382</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" scale="0" unitRef="usd">10,783,387</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" scale="0" unitRef="usd">3,828,224</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: right">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: right">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: right">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Supplemental disclosures of cash flows information</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: right">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: right">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: right">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; font-weight: bold; text-align: left; padding-bottom: 4pt"><span style="font-style: normal; font-weight: normal">Cash
    paid for amounts include in operating lease liabilities</span></td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-45">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-46">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: right"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="sntg:CashPaidForAmountsIncludeInOperatingLeaseLiabilities" scale="0" unitRef="usd">1,342</ix:nonFraction></p></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 153; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES</b></p><div>

</div><div><a id="f_006"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: center"><b>&#160;</b></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_1" escape="true" name="us-gaap:OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Organization and Principal Activities</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.5in"><b><i>&#160;</i></b></p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_2" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(a)</i></b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Principal activities</i></b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_3" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify">Sentage Holdings Inc. (&#8220;Sentage
Holdings&#8221; or the &#8220;Company&#8221;) was incorporated on September 16, 2019 under the law of Cayman Islands as an exempted company
with limited liability. As of December 31, 2022, the Company, through its subsidiaries and consolidated variable interest entities (&#8220;VIEs&#8221;)
(collectively referred to as the &#8220;Group&#8221;) was primarily engaged in providing customers a comprehensive range of financial
services including repayment and collection management services, loan recommendation services, and prepaid payment network services. All
of the Group&#8217;s operations and customers are located in the People&#8217;s Republic of China(&#8220;PRC&#8221;).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_4" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Sentage Holdings owns <ix:nonFraction contextRef="c43" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EquityMethodInvestmentOwnershipPercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% of the equity
interests of Sentage Hongkong Limited (&#8220;Sentage HK&#8221;), a limited liability company formed under the laws of Hong Kong on September
25, 2019.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_5" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On December 17, 2019, Shanghai Santeng
Technology Co., Ltd. (&#8220;Sentage WFOE&#8221;) was incorporated pursuant to PRC laws as a wholly foreign owned enterprise of Sentage
HK.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_6" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify">Sentage Holdings, Sentage HK, and Sentage
WFOE are currently not engaging in any active business operations and merely acting as holding companies.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_7" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As of December 31, 2022, the consolidated
financial statements of the Company include the following entities:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_8" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_7"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfSubsidiaryOfLimitedLiabilityCompanyOrLimitedPartnershipDescriptionTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 23%; border-bottom: black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Entity</b></span></td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="white-space: nowrap; width: 15%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Date of<br/>
incorporation </b></span></td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 13%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Place of<br/>
incorporation </b></span></td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 13%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Percentage of<br/>
direct or<br/>
indirect<br/>
economic ownership&#160;</b></span></td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="vertical-align: bottom; width: 30%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Principal activities</b></span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sentage Holdings Inc. (&#8220;Sentage Holdings&#8221;)</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="white-space: nowrap; vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c44" name="us-gaap:EquityMethodInvestmentDescriptionOfPrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">September 16, 2019</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c44" name="sntg:PlaceOfIncorporation"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cayman Islands</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c44" name="sntg:PercentageOfDirectOrIndirectEconomicOwnership"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Parent, 100%</span></ix:nonNumeric></td>
    <td style="text-align: right">&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c44" name="sntg:PrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investment holding</span></ix:nonNumeric></td></tr>
  <tr>
    <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sentage Hongkong Limited (&#8220;Sentage HK&#8221;)</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="white-space: nowrap; vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c45" name="us-gaap:EquityMethodInvestmentDescriptionOfPrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">September 25, 2019</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c45" name="sntg:PlaceOfIncorporation"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hong Kong</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br/>
<ix:nonNumeric contextRef="c45" name="sntg:PercentageOfDirectOrIndirectEconomicOwnership">100%</ix:nonNumeric></span></td>
    <td style="text-align: right">&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c45" name="sntg:PrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investment holding</span></ix:nonNumeric></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shanghai Santeng Technology Co., Ltd. (&#8220;Sentage WFOE&#8221;)</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="white-space: nowrap; vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c46" name="us-gaap:EquityMethodInvestmentDescriptionOfPrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December 17, 2019</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c46" name="sntg:PlaceOfIncorporation"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shanghai, PRC</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br/>
<ix:nonNumeric contextRef="c46" name="sntg:PercentageOfDirectOrIndirectEconomicOwnership">100%</ix:nonNumeric></span></td>
    <td style="text-align: right">&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c46" name="sntg:PrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">WFOE, Consultancy and information technology support</span></ix:nonNumeric></td></tr>
  <tr>
    <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: top"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Daxin Wealth Investment Management (Shanghai) Co., Ltd. &#160;(&#8220;Daxin Wealth&#8221;)</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="white-space: nowrap; vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c47" name="us-gaap:EquityMethodInvestmentDescriptionOfPrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">August 13, 2014</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c47" name="sntg:PlaceOfIncorporation"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shanghai, PRC</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br/>
<ix:nonNumeric contextRef="c47" name="sntg:PercentageOfDirectOrIndirectEconomicOwnership">VIE</ix:nonNumeric></span></td>
    <td style="text-align: right">&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c47" name="sntg:PrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consumer loan repayment and collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services</span></ix:nonNumeric></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: top"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Daxin Zhuohui Financial Information Services (Shanghai) Co., Ltd. (&#8220;Daxin Zhuohui&#8221;)</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="white-space: nowrap; vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c48" name="us-gaap:EquityMethodInvestmentDescriptionOfPrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">January 9, 2015</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c48" name="sntg:PlaceOfIncorporation"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shanghai, PRC</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><br/>
<ix:nonNumeric contextRef="c48" name="sntg:PercentageOfDirectOrIndirectEconomicOwnership">VIE</ix:nonNumeric></span></td>
    <td style="text-align: right">&#160;</td>
    <td style="text-align: center; vertical-align: bottom"> <ix:nonNumeric contextRef="c48" name="sntg:PrincipalActivities"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Consumer loan repayment and</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services</p></ix:nonNumeric></td></tr>
  <tr>
    <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: top"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Qingdao Buytop Payment Services Co., Ltd. (&#8220;Qingdao Buytop&#8221;)</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="white-space: nowrap; vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c49" name="us-gaap:EquityMethodInvestmentDescriptionOfPrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">August 4, 2009</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c49" name="sntg:PlaceOfIncorporation"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Qingdao,Shandong,PRC</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c49" name="sntg:PercentageOfDirectOrIndirectEconomicOwnership"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">VIE</span></ix:nonNumeric></td>
    <td style="text-align: right">&#160;</td>
    <td style="text-align: center; vertical-align: bottom"> <ix:nonNumeric contextRef="c49" name="sntg:PrincipalActivities"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prepaid payment network</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">services</p></ix:nonNumeric></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Zhenyi Information Technology (Shanghai) Co., Ltd. (&#8220;Zhenyi&#8221;)</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="white-space: nowrap; vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c50" name="us-gaap:EquityMethodInvestmentDescriptionOfPrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">August 29, 2017</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c50" name="sntg:PlaceOfIncorporation"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shanghai, PRC</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c50" name="sntg:PercentageOfDirectOrIndirectEconomicOwnership"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">VIE</span></ix:nonNumeric></td>
    <td style="text-align: right">&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><ix:nonNumeric contextRef="c50" name="sntg:PrincipalActivities"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Provide technology and system development and support</span></ix:nonNumeric></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 154; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_9" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_8"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(b)</i></b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>History of the Group and reorganization</i></b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_10" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Organization and General</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_11" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Prior to the reorganization described
below, the Sentage Operating Companies Shareholders were the controlling shareholders of the following entities: (1) Daxin Wealth Investment
Management (Shanghai) Co., Ltd. (&#8220;Daxin Wealth&#8221;), formed in Shanghai City, China on August 13, 2014; (2) Daxin Zhuohui Financial
Information Services (Shanghai) Co., Ltd. (&#8220;Daxin Zhuohui&#8221;), formed in Shanghai City, China on January 9, 2015; (3) Qingdao
Buytop Payment Services Co., Ltd. (&#8220;Qingdao Buytop&#8221;), formed in Qingdao City, Shandong Province, China on August 4, 2009;
and (4) Zhenyi Information Technology (Shanghai) Co., Ltd. (&#8220;Zhenyi&#8221;), formed in Shanghai City, China on August 29, 2017.
Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi were all formed as limited companies pursuant to PRC laws. Daxin Wealth and Daxin
Zhuohui are primarily engaged in providing consumer loan repayment and collection management services. Daxin Zhuohui also provides loan
recommendation services. Qingdao Buytop is primarily engaged in providing customers with prepaid payment network services. Zhenyi is primarily
engaged in providing technology and system development and support. Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi are collectively
referred to as the &#8220;Sentage Operating Companies&#8221; below.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_12" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Reverse recapitalization</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_13" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">A reorganization of legal structure
(&#8220;Reorganization&#8221;) was completed on March 9, 2020. The Reorganization involved the formation of Sentage Holdings, Sentage
HK and Sentage WFOE, and entering into certain contractual arrangements Sentage WFOE, the shareholders of the Sentage Operating Companies.
Consequently, the Company became the ultimate holding company of Sentage HK, Sentage WFOE, Daxin Wealth, Daxin Zhuohui, and Qingdao Buytop.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_14" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify">On March 9, 2020, Sentage WFOE entered
into a series of contractual arrangements with the shareholders of the Sentage Operating Companies. These agreements include Exclusive
Purchase Agreements, an Exclusive Business Cooperation Agreement, Equity Pledge Agreements, Powers of Attorney, Loan Agreements intended
to guarantee the exercise of the Exclusive Purchase Agreements and Spouse Consents (collectively the &#8220;VIE Agreements&#8221;). Sentage
WFOE, Zhenyi, and Zhenyi&#8217;s shareholders entered into the VIE Agreements on April 1, 2021. Pursuant to the VIE Agreements, Sentage
WFOE has the exclusive right to provide to the Sentage Operating Companies consulting services related to business operations including
technical and management consulting services.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_15" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify">As a result of our direct ownership
in Sentage WFOE and the VIE Agreements, we are regarded as the primary beneficiary of the VIEs, and we treat the VIEs as our consolidated
entities under U.S. GAAP, for accounting purposes. We have consolidated the financial results of the VIEs in our consolidated financial
statements in accordance with U.S. GAAP. The VIE Agreements have not been tested in a court of law in China as of the date of this annual
report.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_16" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify">The Company, together with its wholly
owned subsidiaries and its VIEs, is effectively controlled by the same shareholders before and after the Reorganization and therefore
the Reorganization is considered as a recapitalization of entities under common control. The consolidation of the Company, its subsidiaries,
and its VIEs has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective
as of the beginning of the first period presented in the accompanying consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 155; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_17" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_16"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(c)</i></b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>VIE contractual arrangements</i></b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_18" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify">The Company&#8217;s main operating
entities are Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi (or the &#8220;Sentage Operating Companies&#8221; as referred above),
in which we do not have equity interests but whose financial results have been consolidated by Sentage Holdings for accounting purposes
in accordance with U.S. GAAP due to Sentage Holdings having effective control over, and being the primary beneficiary of, these companies
via the VIE Agreements, which have not been tested in a court of law in China as of the date of this annual report.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_19" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><i>Risks associated with the VIE structure </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_20" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company believes that the contractual
arrangements with its VIEs and the shareholders of its VIEs are in compliance with PRC laws and regulations and are legally enforceable.
However, uncertainties in the PRC legal system could limit the Company&#8217;s ability to enforce the contractual arrangements. If the
legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_21" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_20"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">revoke the business and operating licenses of the Company&#8217;s PRC subsidiary and VIEs;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_22" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_21"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">discontinue or restrict the operations of any related-party transactions between the Company&#8217;s PRC subsidiary and VIEs;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_23" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_22"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">limit the Company&#8217;s business expansion in China by way of entering into contractual arrangements;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_24" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_23"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">impose fines or other requirements with which the Company&#8217;s PRC subsidiary and VIEs may not be able to comply;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_25" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_24"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">require the Company or the Company&#8217;s PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; or</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_26" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_25"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">restrict or prohibit the Company&#8217;s use of the proceeds from public offering to finance the Company&#8217;s business and operations in China.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_27" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_26"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company&#8217;s ability to conduct
its financial service businesses may be negatively affected if the PRC government were to carry out of any of the aforementioned actions.
As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to
exert effective control over the VIEs and their shareholders and it may lose the ability to receive economic benefits from the VIEs. The
Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and
its VIEs.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.2pt; text-align: justify; text-indent: -14.2pt">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 156; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_28" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_27"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company, Sentage HK and Sentage
WFOE are essentially holding companies and do not have active operations as of December 31, 2022 and 2021. As a result, total assets and
liabilities presented on the Consolidated Balance Sheets and revenue, expenses, and net income presented on the Consolidated Statement
of Comprehensive Income as well as the cash flows from operating, investing and financing activities presented on the Consolidated Statement
of Cash Flows are substantially the financial position, operation and cash flow of the Company&#8217;s VIEs. The Company has not provided
any financial support to the VIEs for the years ended December 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_29" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_28"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The table sets forth the assets and
liabilities of the VIEs included in the Company&#8217;s consolidated balance sheets:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_30" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_29"><ix:nonNumeric contextRef="c0" escape="true" name="srt:ScheduleOfCondensedBalanceSheetTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">ASSETS</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Current assets</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Cash and cash equivalents</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">607,278</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">20,020</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Restricted cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">30,269</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">23,089</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">403,708</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">433,510</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Prepaid expenses and other current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssets" scale="0" unitRef="usd">485,154</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssets" scale="0" unitRef="usd">966,260</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total current assets</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">1,526,409</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">1,442,879</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Non-current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Plant and equipment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipmentCurrent" scale="0" unitRef="usd">120,280</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipmentCurrent" scale="0" unitRef="usd">53,023</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Intangible assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationIntangibleAssetsNoncurrent" scale="0" unitRef="usd">30,547</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationIntangibleAssetsNoncurrent" scale="0" unitRef="usd">89,475</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Deferred tax assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxAssetsNet" scale="0" unitRef="usd">13,724</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxAssetsNet" scale="0" unitRef="usd">12,686</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total non-current assets</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsNoncurrent" scale="0" unitRef="usd">164,551</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsNoncurrent" scale="0" unitRef="usd">155,184</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total assets</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">1,690,960</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">1,598,063</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accounts payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">2,743</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">8,647</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Accrued expenses and other current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedLiabilitiesAndOtherLiabilities" scale="0" unitRef="usd">379,989</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedLiabilitiesAndOtherLiabilities" scale="0" unitRef="usd">1,431,818</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total current liabilities</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">382,732</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">1,440,465</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Non-current liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Due to a related party, non-current</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToRelatedPartiesNoncurrent" scale="0" unitRef="usd">621,021</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToRelatedPartiesNoncurrent" scale="0" unitRef="usd">464,709</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total non-current liability</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesNoncurrent" scale="0" unitRef="usd">621,021</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesNoncurrent" scale="0" unitRef="usd">464,709</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total liabilities</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherLiabilities" scale="0" unitRef="usd">1,003,753</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherLiabilities" scale="0" unitRef="usd">1,905,174</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 157; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_31" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_30"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The table sets forth the results of
operations of the VIE included in the Company&#8217;s consolidated statements of comprehensive income/(loss):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_32" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_31"><ix:nonNumeric contextRef="c0" escape="true" name="srt:CondensedStatementOfComprehensiveIncomeTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Years ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Total revenues</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,595,409</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">2,262,449</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">161,372</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net Income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAttributableToParentDiluted" scale="0" unitRef="usd">1,587,375</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAttributableToParentDiluted" scale="0" unitRef="usd">692,774</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAttributableToParentDiluted" scale="0" sign="-" unitRef="usd">960,506</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_33" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_32"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The table sets forth the cash flows
of the VIE included in the Company&#8217;s consolidated statements of cash flows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_34" id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_33"><ix:nonNumeric contextRef="c0" escape="true" name="srt:ScheduleOfCondensedCashFlowStatementTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Years ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Net cash (used in) provided by operating activities</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c53" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" unitRef="usd">465,210</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c54" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" unitRef="usd">1,433,255</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c55" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">371,005</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net cash provided by (used in) investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-47">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c54" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">19,977</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c55" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">34,346</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net cash provided by (used in) financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c53" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" sign="-" unitRef="usd">585,859</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c54" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" sign="-" unitRef="usd">959,420</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c55" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" sign="-" unitRef="usd">156,311</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock-c0_cont_34"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As the VIEs are incorporated as limited
liability companies under the PRC Company Law, the creditors of the VIEs do not have recourse to the general credit of the Company. There
is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_1" escape="true" name="us-gaap:SignificantAccountingPoliciesTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Summary of significant accounting policies</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_2" id="_SignificantAccountingPoliciesTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(a)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Basis of presentation</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_3" id="_SignificantAccountingPoliciesTextBlock-c0_cont_2"><ix:continuation continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_2" id="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">The accompanying consolidated financial
statements have been prepared in accordance with U.S. generally accepted accounting principles (&#8220;U.S.GAAP&#8217;&#8217;).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_4" id="_SignificantAccountingPoliciesTextBlock-c0_cont_3"><ix:continuation id="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The consolidated financial statements
are presented in the United States dollar (&#8220;USD&#8221;), rounded to the nearest thousands except share data and per share data,
or otherwise noted.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_5" id="_SignificantAccountingPoliciesTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(b)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_ConsolidationPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ConsolidationPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Principles of consolidation</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_6" id="_SignificantAccountingPoliciesTextBlock-c0_cont_5"><ix:continuation continuedAt="_ConsolidationPolicyTextBlock-c0_cont_2" id="_ConsolidationPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group&#8217;s consolidated financial
statements include the financial statements of the Company, its subsidiaries and its VIEs. All transactions and balances among the Company,
its subsidiaries and its VIEs have been eliminated upon consolidation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_7" id="_SignificantAccountingPoliciesTextBlock-c0_cont_6"><ix:continuation continuedAt="_ConsolidationPolicyTextBlock-c0_cont_3" id="_ConsolidationPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Subsidiaries are those entities in which
the Company, directly or indirectly, controls more than one half of the voting powers; has the power to appoint or remove the majority
of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial
and operating policies of the investee under a statute or agreement among the shareholders or equity holders.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_8" id="_SignificantAccountingPoliciesTextBlock-c0_cont_7"><ix:continuation id="_ConsolidationPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">A consolidated VIE is an entity in which
the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership
of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has
the power to direct activities that are significant to the VIE&#8217;s economic performance, and also the Group&#8217;s obligation to
absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially
be significant to the VIE. As a result of the Company&#8217;s direct ownership in Sentage WFOE and the VIE Agreements, the Company is
regarded as the primary beneficiary of the VIEs, and we treat the VIEs as the Company&#8217;s consolidated entities under U.S. GAAP, for
accounting purposes. The Company has consolidated the financial results of the VIEs in its consolidated financial statements in accordance
with U.S. GAAP. The VIE agreements have not been tested in a court of law in China as of the date of this annual report.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_9" id="_SignificantAccountingPoliciesTextBlock-c0_cont_8"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(c)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_UseOfEstimates-c0_cont_1" escape="true" name="us-gaap:UseOfEstimates"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Use of estimates</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_10" id="_SignificantAccountingPoliciesTextBlock-c0_cont_9"><ix:continuation id="_UseOfEstimates-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The preparation of the Company&#8217;s
consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant
items subject to such estimates and assumptions include, but are not limited to, estimate of standalone selling prices of each unit of
accounting in multiple elements arrangements, estimate of breakage, the fair value of identifiable assets acquired, liabilities assumed
and non-controlling interests in business combinations, the useful lives of long-lived assets including intangible assets, the fair value
of the reporting unit for the goodwill impairment test, the allowance for doubtful accounts receivable and other receivables, the realization
of deferred tax assets, the fair value of share-based compensation awards, lease liabilities, right-of-use assets and the recoverability
of long-lived 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 consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 158; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_11" id="_SignificantAccountingPoliciesTextBlock-c0_cont_10"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(d)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Functional currency</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_12" id="_SignificantAccountingPoliciesTextBlock-c0_cont_11"><ix:continuation id="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group use United States dollar (&#8220;US$&#8221;)
as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of the PRC is US, while the
functional currency of the PRC entities in the Group is RMB as determined based on the criteria of Accounting Standards Codification (&#8220;ASC&#8221;)
830, Foreign Currency Matters.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_13" id="_SignificantAccountingPoliciesTextBlock-c0_cont_12"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(e)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="sntg_ConvenienceTranslationPolicyTextBlock-c0_cont_1" escape="true" name="sntg:ConvenienceTranslationPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Convenience translation</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_14" id="_SignificantAccountingPoliciesTextBlock-c0_cont_13"><ix:continuation id="sntg_ConvenienceTranslationPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Translations of balances in the consolidated
balance sheets, consolidated statements of comprehensive income/(loss) and consolidated statements of cash flows from RMB into US$ as
of and for the year ended December 31,2022 are solely for the convenience of the readers and were calculated at the rate of US$<ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ForeignCurrencyTransactionGainLossRealized" scale="0" unitRef="usd">1.00</ix:nonFraction>=RMB
<ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ForeignCurrencyTransactionGainLossRealized" scale="0" unitRef="cny">6.8972</ix:nonFraction>, representing the index rates stipulated by the Federal Reserve Bank of New York on December 31,2022. No representation is made
that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2022, or at any
other rate. The US$ convenience translation is not required under U.S. GAAP and all US$ convenience translation amounts in the accompanying
consolidated financial statements are unaudited.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_15" id="_SignificantAccountingPoliciesTextBlock-c0_cont_14"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(f)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_CashAndCashEquivalentsPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:CashAndCashEquivalentsPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Cash and cash equivaletns</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_16" id="_SignificantAccountingPoliciesTextBlock-c0_cont_15"><ix:continuation id="_CashAndCashEquivalentsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Cash and cash equivalents includes currency
on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains all of its bank accounts in
the PRC. The Company&#8217;s cash balances in these bank accounts in the PRC are not insured by the Federal Deposit Insurance Corporation
or other programs.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_17" id="_SignificantAccountingPoliciesTextBlock-c0_cont_16"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(g)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy-c0_cont_1" escape="true" name="us-gaap:CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Restricted cash</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_18" id="_SignificantAccountingPoliciesTextBlock-c0_cont_17"><ix:continuation id="_CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In connection with the Company&#8217;s
newly launched prepaid payment network service business, the Company is required to make an initial one-year security deposit with designated
PRC banks in order to be eligible to issue prepaid gift and debit cards to customers. Security deposit is based on <ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:PercentageOfInterestBearingDomesticDepositsToDeposits" scale="-2" unitRef="pure">1</ix:nonFraction>% of the estimated
proceeds to be collected from the prepaid card issuance and is subject to adjustment as be determined by the PRC banks based on actual
sales volume of the prepaid cards. As of December 31, 2021 and 2022, the Company has not issued any prepaid cards to customers. The Company
records such security deposit as restricted cash.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_19" id="_SignificantAccountingPoliciesTextBlock-c0_cont_18"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(h)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_TradeAndOtherAccountsReceivablePolicy-c0_cont_1" escape="true" name="us-gaap:TradeAndOtherAccountsReceivablePolicy"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Accounts receivable net</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_20" id="_SignificantAccountingPoliciesTextBlock-c0_cont_19"><ix:continuation continuedAt="_TradeAndOtherAccountsReceivablePolicy-c0_cont_2" id="_TradeAndOtherAccountsReceivablePolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Accounts receivable net include service
fees generated from the Company&#8217;s loan recommendation and prepaid payment network services.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_21" id="_SignificantAccountingPoliciesTextBlock-c0_cont_20"><ix:continuation id="_TradeAndOtherAccountsReceivablePolicy-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company reduces accounts receivable
by recording an allowance for doubtful accounts to account for the estimated impact of collection issues resulting from a client&#8217;s
inability or unwillingness to pay valid obligations to the Company. The Company determines the adequacy of allowance for doubtful accounts
based on individual account analysis, historical collection trend, and best estimate of specific losses on individual exposures. The Company
establishes a provision for doubtful receivable when there is objective evidence that the Company may not be able to collect amounts due.
Actual amounts received may differ from management&#8217;s estimate of credit worthiness and the economic environment. Delinquent account
balances are written-off against the allowance for doubtful accounts after the management has determined that the likelihood of collection
is not probable. As of December 31, 2022 and 2021, there was US$<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinancingReceivableAllowanceForCreditLossesWriteOffs" scale="0" unitRef="usd">59,444</ix:nonFraction> and US$<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinancingReceivableAllowanceForCreditLossesWriteOffs" scale="0" unitRef="usd">54,896</ix:nonFraction> allowance recorded as the Company considers all of
the accounts receivable fully collectible.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_22" id="_SignificantAccountingPoliciesTextBlock-c0_cont_21"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(i)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:PropertyPlantAndEquipmentPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Plant and equipment, net</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_23" id="_SignificantAccountingPoliciesTextBlock-c0_cont_22"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_2" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Plant and equipment are stated at cost
less accumulated depreciation and any recorded impairment.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_24" id="_SignificantAccountingPoliciesTextBlock-c0_cont_23"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_3" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Gains or losses arising from the disposal
of an item of plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item
and are recognized in profit or loss on the date of disposal.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_25" id="_SignificantAccountingPoliciesTextBlock-c0_cont_24"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_4" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The estimated useful lives are presented
below.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_26" id="_SignificantAccountingPoliciesTextBlock-c0_cont_25"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfPublicUtilityPropertyPlantAndEquipmentTextBlock"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_5" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom; text-align: left; width: 60%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Office equipment and furniture </span></td>
    <td style="width: 1%">&#160;</td>
    <td style="vertical-align: bottom; width: 39%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c65" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">3</ix:nonNumeric>-<ix:nonNumeric contextRef="c66" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">5</ix:nonNumeric> years</span></td></tr>
  <tr>
    <td style="text-align: left; vertical-align: bottom"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transportation vehicles </span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c67" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">3</ix:nonNumeric>-<ix:nonNumeric contextRef="c68" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">5</ix:nonNumeric> years</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leasehold improvement </span></td>
    <td style="text-align: right">&#160;</td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c69" name="sntg:LeaseholdImprovement">Lesser of useful life and lease term</ix:nonNumeric> </span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_27" id="_SignificantAccountingPoliciesTextBlock-c0_cont_26"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_6" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Depreciation on plant and equipment
is calculated on the straight-line method over the estimated useful lives of the assets.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_28" id="_SignificantAccountingPoliciesTextBlock-c0_cont_27"><ix:continuation id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify">Expenditures for maintenance and repairs,
which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and
betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets
retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of comprehensive
income in other income (expenses).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 159; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.9pt; text-align: justify"></p><div>
</div><p style="margin: 0">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_29" id="_SignificantAccountingPoliciesTextBlock-c0_cont_28"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(j)</i></b></span></td> <td style="text-align: justify; font-size: 10pt"><ix:nonNumeric contextRef="c0" continuedAt="_IntangibleAssetsFiniteLivedPolicy-c0_cont_1" escape="true" name="us-gaap:IntangibleAssetsFiniteLivedPolicy"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Intangible assets</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_30" id="_SignificantAccountingPoliciesTextBlock-c0_cont_29"><ix:continuation continuedAt="_IntangibleAssetsFiniteLivedPolicy-c0_cont_2" id="_IntangibleAssetsFiniteLivedPolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Purchased intangible assets are initially
measured at cost. Following initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated
impairment losses. Intangible assets with finite lives are amortised over the useful life and assessed for impairment whenever there is
an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with
a finite useful life are reviewed at each financial year end. Intangible assets, excluding development costs, created within the business
are not capitalised and expenditure is charged against profits in the period in which the expenditure is incurred.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_31" id="_SignificantAccountingPoliciesTextBlock-c0_cont_30"><ix:continuation id="_IntangibleAssetsFiniteLivedPolicy-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">The Company&#8217;s intangible assets
with definite useful lives primarily are purchased software. The Company typically amortizes intangible assets with definite useful lives
on a straight-line basis over estimated useful lives of ten years.</p><p style="margin: 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_32" id="_SignificantAccountingPoliciesTextBlock-c0_cont_31"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(k)</i></b></span></td> <td style="text-align: justify; font-size: 10pt"><ix:nonNumeric contextRef="c0" continuedAt="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Impairment of long-lived assets</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_33" id="_SignificantAccountingPoliciesTextBlock-c0_cont_32"><ix:continuation id="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Long-lived assets with finite lives,
primarily property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset&#8217;s
carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no impairments of these assets
as of December 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.5in"><b><i>&#160;</i></b></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_34" id="_SignificantAccountingPoliciesTextBlock-c0_cont_33"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(l)</i></b></span></td> <td style="text-align: justify; font-size: 10pt"><ix:nonNumeric contextRef="c0" continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:FairValueMeasurementPolicyPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Fair value of financial instruments</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_35" id="_SignificantAccountingPoliciesTextBlock-c0_cont_34"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_2" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group applies ASC 820, Fair Value
measurements and Disclosures, for fair value measurements financial assets and financial liabilities and for fair value measurements of
non-financial items that are recognized or disclosed at fair value in the financial statements on a recurring and non-recurring basis.
ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required
or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and
it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 also establishes a framework
for measuring fair value and expands disclosures about fair value measurements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_36" id="_SignificantAccountingPoliciesTextBlock-c0_cont_35"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_3" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">ASC 820 establishes a fair value hierarchy
that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
ASC 820 establishes three levels of inputs that may be used to measure fair value.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_37" id="_SignificantAccountingPoliciesTextBlock-c0_cont_36"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_4" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The hierarchy gives the highest priority
to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements
involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_38" id="_SignificantAccountingPoliciesTextBlock-c0_cont_37"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_5" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; font-size: 10pt">&#160;</td>
    <td style="width: 0.25in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_39" id="_SignificantAccountingPoliciesTextBlock-c0_cont_38"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_6" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_5"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_40" id="_SignificantAccountingPoliciesTextBlock-c0_cont_39"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_7" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_6"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3 inputs are unobservable inputs for the asset or liability.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_41" id="_SignificantAccountingPoliciesTextBlock-c0_cont_40"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_8" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The level in the fair value hierarchy
within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement
in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the
fair value measurement reflects management&#8217;s own judgments about the assumptions that market participants would use in pricing the
asset or liability. Those judgments are developed by management based on the best information available in the circumstances.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_42" id="_SignificantAccountingPoliciesTextBlock-c0_cont_41"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_9" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Unless otherwise disclosed, the fair
value of the Company&#8217;s financial instruments, including cash, restricted cash, accounts receivable, prepaid expenses and other current
assets, accounts payable, deferred revenue and accrued expenses and other current liabilities approximate the fair value of the respective
assets and liabilities as of December 31, 2022 and 2021 based upon the short-term nature of the assets and liabilities. The balance of
due to related parties also approximate the fair value because it was paid by cash from related parties to the Company as working capital.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 160; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center"></p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_43" id="_SignificantAccountingPoliciesTextBlock-c0_cont_42"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_10" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The functional currency for Sentage
and Sentage HK is the United States dollar (&#8220;US$&#8221;). However, Sentage, and Sentage HK currently only serve as the holding companies
and did not have active operations as of the date of this annual report. The Company operates its business through its VIEs in the PRC
as of December 31, 2022. The functional currency of the Company&#8217;s VIEs is the Chinese Yuan (&#8220;RMB&#8221;). The Company&#8217;s
consolidated financial statements have been translated into US$. Assets and liabilities accounts are translated using the exchange rate
at each reporting period end date. Equity accounts are translated at historical rates. Income and expense accounts are translated at the
average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income.
Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_44" id="_SignificantAccountingPoliciesTextBlock-c0_cont_43"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_11" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The RMB is not freely convertible into
foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that
the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_45" id="_SignificantAccountingPoliciesTextBlock-c0_cont_44"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_12" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following table outlines the currency
exchange rates that were used in creating the consolidated financial statements in this report:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_46" id="_SignificantAccountingPoliciesTextBlock-c0_cont_45"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfIntercompanyForeignCurrencyBalancesTextBlock"><ix:continuation id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_12"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom; ">
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td colspan="5" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>As
of December 31,</b> &#160;</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Year-end spot rate</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c5" name="sntg:YearendSpotRate"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">US$1=RMB&#160;6.3757</span></ix:nonNumeric></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c0" name="sntg:YearendSpotRate"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">US$1=RMB&#160;6.8972</span></ix:nonNumeric></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Average rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<ix:nonNumeric contextRef="c5" name="sntg:AverageRate">US$1=RMB&#160;6.4508</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<ix:nonNumeric contextRef="c0" name="sntg:AverageRate">US$1=RMB&#160;6.7290</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_47" id="_SignificantAccountingPoliciesTextBlock-c0_cont_46"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(m)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:RevenueRecognitionPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Revenue recognition</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_48" id="_SignificantAccountingPoliciesTextBlock-c0_cont_47"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_2" id="_RevenueRecognitionPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On January 1, 2018, the Company adopted
Accounting Standards Codification (&#8220;ASC&#8221;) 606, &#8220;Revenue from Contracts with customers&#8221;, using the modified retrospective
approach.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_49" id="_SignificantAccountingPoliciesTextBlock-c0_cont_48"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_3" id="_RevenueRecognitionPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company adopted ASC 606, &#8220;Revenue
from Contracts with Customers&#8221; for all periods presented. Consistent with the criteria of ASC 606, the Company follows five steps
for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract,
(iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize
revenue when (or as) the entity satisfies a performance obligation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_50" id="_SignificantAccountingPoliciesTextBlock-c0_cont_49"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_4" id="_RevenueRecognitionPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The primary sources of the Group&#8217;s
revenues are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.3pt; text-align: justify; text-indent: -28.3pt">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_51" id="_SignificantAccountingPoliciesTextBlock-c0_cont_50"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_5" id="_RevenueRecognitionPolicyTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue from consumer loan repayment and collection management services </span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.25pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_52" id="_SignificantAccountingPoliciesTextBlock-c0_cont_51"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_6" id="_RevenueRecognitionPolicyTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Loans facilitated through the Company
were consumer loan products ranging from <ix:nonFraction contextRef="c56" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfDebt" scale="0" unitRef="cny">30,000</ix:nonFraction> RMB (approximately $<ix:nonFraction contextRef="c56" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfDebt" scale="0" unitRef="usd">4,342</ix:nonFraction>) to <ix:nonFraction contextRef="c57" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfDebt" scale="0" unitRef="cny">80,000</ix:nonFraction> RMB (approximately US$<ix:nonFraction contextRef="c57" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfDebt" scale="0" unitRef="usd">11,579</ix:nonFraction>). Loan term ranges from
<ix:nonNumeric contextRef="c56" format="ixt-sec:durwordsen" name="us-gaap:CreditDerivativeTerm1">one year</ix:nonNumeric> to <ix:nonNumeric contextRef="c57" format="ixt-sec:durwordsen" name="us-gaap:CreditDerivativeTerm1">four years</ix:nonNumeric>. All the Company&#8217;s clients are individual customers who entered into service agreements with the Company.
All these loans were facilitated through the Company&#8217;s offline loan recommendation services before November 2017. Since November
2017, the Company has not provided any intermediary services for any new customers in anticipation of changes in related governing regulations
in China, and the Company has been focusing on providing services related to consumer loan repayment and collection management to its
customers. These consumer loan repayment and collection management services are a part of the Company&#8217;s service obligation in its
service agreements with its customers. Pursuant to the service agreements, customers authorized the Company to monitor and manage the
repayment and collection process of outstanding loans for a fixed service fee, which was paid upfront by customers. The Company is required
to monitor loans within the loan term to ensure timely repayment of loans when they become due. Pursuant to the Company&#8217;s agreements
with customers, loan repayment and collection management services are parts of bundled services offered by the Company to customers for
a fixed fee and are not capable of being distinct because the Company is required to concurrently monitor and manage the repayment and
collection process of outstanding loans to be entitled to receive a fixed service fee. As a result, loan management services and collection
management services are not separately identifiable in the context of the contract and accordingly are treated as a bundled single performance
obligation. There is no variable consideration in the contract. Once a specific loan is repaid on time, the Company&#8217;s service obligation
related to such loan is satisfied. When a loan becomes delinquent, the Company is then required to assist in collection efforts for an
extended service period of 12 months starting on the day such loan becomes delinquent. No additional fee can be charged for collection
management services provided to delinquent loans beyond the initial fixed fee agreed. If all or a part of the loan is still not repaid
after all collection management efforts are exhausted within such required service period, the Company&#8217;s service obligation related
to such loan is satisfied and the Company is not responsible for any loss from an uncollectible loan.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 161; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_53" id="_SignificantAccountingPoliciesTextBlock-c0_cont_52"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_7" id="_RevenueRecognitionPolicyTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company&#8217;s loan repayment and
collection management services primarily include reconciling borrower repayment record and sending payment reminder and notice periodically,
facilitating repayment upon maturity and collaborating with third-party collection agents and law firms in the event of delinquency etc.
Loan repayment and collection management fees received from the customers upfront are deferred first, and then ratably recognized as revenue
over the loan terms or an extended service period of 12 months starting on the day such loan becomes delinquent, as the Company performs
designated services.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_54" id="_SignificantAccountingPoliciesTextBlock-c0_cont_53"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_8" id="_RevenueRecognitionPolicyTextBlock-c0_cont_7"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue from services provided to borrower for loan recommendation</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.25pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_55" id="_SignificantAccountingPoliciesTextBlock-c0_cont_54"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_9" id="_RevenueRecognitionPolicyTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company started to provide recommendation
services where the Company recommends prospective borrowers to funding partners in June 2019. The Company&#8217;s performance obligations
include making loan product recommendations to borrower applicants, processing paperwork related to borrowers&#8217; applications based
on their specific needs, evaluating credentials of borrower applicants, appraising borrowers&#8217; properties to be collateralized through
data analysis and on-site inspection, and recommending qualified borrowers to various funding partners for loan approval. The Company
receive a service fee from a borrower if he or she is approved for a loan and such loan is then funded by one of our funding partners.
The Company acquires borrowers through cooperating with third-party referral partners as well as through its own borrower development
efforts. For borrowers acquired through cooperating with third-party referral partners, pursuant to the service agreement between the
Company and the referral partners, referral partners first charge borrowers service fees for their referrals. The Company then charges
the referral partners a commission ranging from <ix:nonFraction contextRef="c56" decimals="3" format="ixt:num-dot-decimal" name="sntg:CommissionPercentage" scale="-2" unitRef="pure">1.5</ix:nonFraction>% to <ix:nonFraction contextRef="c57" decimals="2" format="ixt:num-dot-decimal" name="sntg:CommissionPercentage" scale="-2" unitRef="pure">2</ix:nonFraction>% based on the loan proceeds disbursed to the borrowers. For borrowers developed
directly by the Company, the Company charges the borrowers a service fee of <ix:nonFraction contextRef="c58" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:RevenueRemainingPerformanceObligationPercentage" scale="-2" unitRef="pure">1.75</ix:nonFraction>% to <ix:nonFraction contextRef="c59" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:RevenueRemainingPerformanceObligationPercentage" scale="-2" unitRef="pure">3</ix:nonFraction>% of the loan amount received by the borrowers.
Such revenue is recognized at the point when the Company&#8217;s performance obligations are satisfied and the loan proceeds are disbursed
to a specific borrower. For the years ended December 31, 2022, 2021 and 2020, the Company earned <span style="-sec-ix-hidden: hidden-fact-48">nil</span>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="sntg:ServiceRevenue" scale="0" unitRef="usd">1,177,822</ix:nonFraction> and $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="sntg:ServiceRevenue" scale="0" unitRef="usd">2,087,717</ix:nonFraction> recommendation
service revenue, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_56" id="_SignificantAccountingPoliciesTextBlock-c0_cont_55"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_10" id="_RevenueRecognitionPolicyTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Contract fulfillment costs associated
with loan recommendation services primarily consist of employee salary, bonus and business travel costs incurred by the Company to fulfill
its performance obligations. Contract fulfillment costs are only capitalized when the costs generate or enhance resources that will be
used in satisfying future performance obligations of the contract and the costs are expected to be recovered. For the years ended December
31, 2022 and 2021, the Company did not capitalize contract fulfillment costs, but expensed as incurred, due to immateriality of such costs.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.3pt; text-align: justify; text-indent: -28.3pt">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_57" id="_SignificantAccountingPoliciesTextBlock-c0_cont_56"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_11" id="_RevenueRecognitionPolicyTextBlock-c0_cont_10"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue from prepaid payment network services </span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_58" id="_SignificantAccountingPoliciesTextBlock-c0_cont_57"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_12" id="_RevenueRecognitionPolicyTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In 2012, one of the Company&#8217;s
VIE subsidiaries, Qingdao Buytop, was granted a third-party payment service license by the relevant authority in China. The Company started
to provide prepaid payment network services to merchant customers in August 2019. The Company is licensed to issue generic and branded
prepaid gift and debit cards and provide related services to various merchants, such as supermarket and department stores. In connection
with the prepaid payment network services, the Company expects to generate revenue from: (1) technology consulting and support services
fees related to payment solution planning, design, and management; (2) prepaid card payment services fees related to the issuance and
use of prepaid cards.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_59" id="_SignificantAccountingPoliciesTextBlock-c0_cont_58"><ix:continuation id="_RevenueRecognitionPolicyTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Technology consulting and support services
are short-term in nature, with service period ranging from one to three months, and related service fees are recognized as revenue at
point when payment solution, design and management services are rendered, completed and accepted by customers. For merchant customers
who need prepaid card payment services such as collecting and processing information necessary for prepaid card issuance and authorizing
transaction requests after verifying transaction information, the Company charges service fee equal to <ix:nonFraction contextRef="c60" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:RevenueRemainingPerformanceObligationPercentage" scale="-2" unitRef="pure">0.3</ix:nonFraction>% to <ix:nonFraction contextRef="c61" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:RevenueRemainingPerformanceObligationPercentage" scale="-2" unitRef="pure">0.5</ix:nonFraction>% of each transaction
amount and recognizes revenue at the point when the prepaid cards issued by merchant customers are used by their end user card holders.
For the years ended December 31, 2022, 2021 and 2020, the Company earned $<ix:nonFraction contextRef="c62" decimals="0" format="ixt:num-dot-decimal" name="sntg:ServiceRevenue" scale="0" unitRef="usd">161,372</ix:nonFraction>, $<ix:nonFraction contextRef="c63" decimals="0" format="ixt:num-dot-decimal" name="sntg:ServiceRevenue" scale="0" unitRef="usd">928,565</ix:nonFraction> and $<ix:nonFraction contextRef="c64" decimals="0" format="ixt:num-dot-decimal" name="sntg:ServiceRevenue" scale="0" unitRef="usd">432,958</ix:nonFraction> revenue from providing technology
consulting and support service revenue to customers, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 162; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_60" id="_SignificantAccountingPoliciesTextBlock-c0_cont_59"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(n)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_IncomeTaxPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:IncomeTaxPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Income taxes</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_61" id="_SignificantAccountingPoliciesTextBlock-c0_cont_60"><ix:continuation continuedAt="_IncomeTaxPolicyTextBlock-c0_cont_2" id="_IncomeTaxPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">The Company 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.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_62" id="_SignificantAccountingPoliciesTextBlock-c0_cont_61"><ix:continuation continuedAt="_IncomeTaxPolicyTextBlock-c0_cont_3" id="_IncomeTaxPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period
including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected
to be realized.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_63" id="_SignificantAccountingPoliciesTextBlock-c0_cont_62"><ix:continuation continuedAt="_IncomeTaxPolicyTextBlock-c0_cont_4" id="_IncomeTaxPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The provisions of ASC 740-10-25, &#8220;Accounting for Uncertainty
in Income Taxes,&#8221; 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.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_64" id="_SignificantAccountingPoliciesTextBlock-c0_cont_63"><ix:continuation id="_IncomeTaxPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">An uncertain tax position is recognized
only if it is &#8220;more likely than not&#8221; that the tax position would be sustained in a tax examination. The amount recognized
is the largest amount of tax benefit that is greater than <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="sntg:TaxBenefitPercentage" scale="-2" unitRef="pure">50</ix:nonFraction>% likely of being realized on examination. For tax positions not meeting the
&#8220;more likely than not&#8221; test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income
tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been
incurred during the years ended December 31, 2022, 2021 and 2020. The Company does not believe that there was any uncertain tax provision
on December 31, 2022, 2021 and 2020. The Company&#8217;s subsidiary and VIEs in China are subject to the income tax laws of the PRC. No
significant income was generated outside the PRC for the fiscal years ended December 31, 2022, 2021 and 2020. As of December 31, 2022,
all of the tax returns of the Company&#8217;s PRC subsidiary and VIEs remain available for statutory examination by PRC tax authorities.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_65" id="_SignificantAccountingPoliciesTextBlock-c0_cont_64"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(o)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="sntg_ValueAddedTaxPolicyTextBlock-c0_cont_1" escape="true" name="sntg:ValueAddedTaxPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Value added tax (&#8220;VAT&#8221;)</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><b><i>&#160;</i></b></p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_66" id="_SignificantAccountingPoliciesTextBlock-c0_cont_65"><ix:continuation id="sntg_ValueAddedTaxPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company is a general taxpayer and
is subject to applicable VAT tax rate of <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationDeductions" scale="-2" unitRef="pure">6</ix:nonFraction>% . VAT is reported as a deduction to revenue when incurred. Entities that are VAT general taxpayers
are allowed to offset qualified input VAT tax paid to suppliers against their output VAT liabilities.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><b><i>&#160;</i></b></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_67" id="_SignificantAccountingPoliciesTextBlock-c0_cont_66"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(p)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_EarningsPerSharePolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:EarningsPerSharePolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Earnings per Share</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_68" id="_SignificantAccountingPoliciesTextBlock-c0_cont_67"><ix:continuation id="_EarningsPerSharePolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company computes earnings per share
(&#8220;EPS&#8221;) in accordance with ASC 260, &#8220;Earnings per Share&#8221; (&#8220;ASC 260&#8221;). ASC 260 requires companies with
complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common
shares outstanding for the period. Diluted presents the dilutive effect on a per share basis of potential common 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 common 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, 2022 and 2021, there were no dilutive shares.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 163; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_69" id="_SignificantAccountingPoliciesTextBlock-c0_cont_68"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(q)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="sntg_StatutoryReservePolicyTextBlock-c0_cont_1" escape="true" name="sntg:StatutoryReservePolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Statutory reserve</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_70" id="_SignificantAccountingPoliciesTextBlock-c0_cont_69"><ix:continuation continuedAt="sntg_StatutoryReservePolicyTextBlock-c0_cont_2" id="sntg_StatutoryReservePolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In accordance with the Company Laws
of the PRC, the PRC Entities registered as PRC domestic companies must make appropriations from its after-tax profit as determined under
the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation
to the statutory surplus fund must be at least <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes" scale="-2" unitRef="pure">10</ix:nonFraction>% of the after-tax profits as determined in accordance with the legal requirements in
the PRC. Appropriation is not required if the surplus fund has reached <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxCreditsOther" scale="-2" unitRef="pure">50</ix:nonFraction>% of the registered capital of the respective company. Appropriation
to the discretionary surplus fund is made at the discretion of the respective company.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_71" id="_SignificantAccountingPoliciesTextBlock-c0_cont_70"><ix:continuation id="sntg_StatutoryReservePolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The use of the statutory reserves are
restricted to the off-setting of losses or increasing capital of the respective company. All these reserves are not allowed to be transferred
to their investors in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><b><i>&#160;</i></b></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_72" id="_SignificantAccountingPoliciesTextBlock-c0_cont_71"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(r)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_ComprehensiveIncomePolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ComprehensiveIncomePolicyPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Comprehensive income</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_73" id="_SignificantAccountingPoliciesTextBlock-c0_cont_72"><ix:continuation id="_ComprehensiveIncomePolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Comprehensive income consists of two
components, net income and other comprehensive income. The foreign currency translation gain or loss resulting from translation of the
financial statements expressed in RMB to US$ is reported in other comprehensive income in the consolidated statements of comprehensive
income.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_74" id="_SignificantAccountingPoliciesTextBlock-c0_cont_73"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(s)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="sntg_StatementOfCashFlowsPolicyTextBlock-c0_cont_1" escape="true" name="sntg:StatementOfCashFlowsPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Statement of Cash Flows</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_75" id="_SignificantAccountingPoliciesTextBlock-c0_cont_74"><ix:continuation id="sntg_StatementOfCashFlowsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In accordance with ASC 230, &#8220;Statement
of Cash Flows&#8221;, cash flows from the Company&#8217;s operations are formulated based upon the local currencies using the average
exchange rate in the period. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not
necessarily agree with changes in the corresponding balances on the balance sheets.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b><i>&#160;</i></b></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_76" id="_SignificantAccountingPoliciesTextBlock-c0_cont_75"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(t)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="sntg_RelatedPartiesAndTransactionsPolicyTextBlock-c0_cont_1" escape="true" name="sntg:RelatedPartiesAndTransactionsPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Related parties and transactions</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b><i>&#160;</i></b></p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_77" id="_SignificantAccountingPoliciesTextBlock-c0_cont_76"><ix:continuation continuedAt="sntg_RelatedPartiesAndTransactionsPolicyTextBlock-c0_cont_2" id="sntg_RelatedPartiesAndTransactionsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company identifies related parties,
and accounts for, discloses related party transactions in accordance with ASC 850, &#8220;Related Party Disclosures&#8221; and other relevant
ASC standards.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_78" id="_SignificantAccountingPoliciesTextBlock-c0_cont_77"><ix:continuation continuedAt="sntg_RelatedPartiesAndTransactionsPolicyTextBlock-c0_cont_3" id="sntg_RelatedPartiesAndTransactionsPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Parties, which can be a corporation
or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise
significant influence over the other party in making financial and operational decisions. Companies are also considered to be related
if they are subject to common control or common significant influence.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_79" id="_SignificantAccountingPoliciesTextBlock-c0_cont_78"><ix:continuation id="sntg_RelatedPartiesAndTransactionsPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Transactions between related parties
commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties
are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide
accounting or measurement guidance for such transactions, it nonetheless requires their disclosure.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_80" id="_SignificantAccountingPoliciesTextBlock-c0_cont_79"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(u)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_LesseeLeasesPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:LesseeLeasesPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Right-of-use assets, net</i></b></span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_81" id="_SignificantAccountingPoliciesTextBlock-c0_cont_80"><ix:continuation continuedAt="_LesseeLeasesPolicyTextBlock-c0_cont_2" id="_LesseeLeasesPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In February 2016, the Financial Accounting
Standards Board (the &#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) 2016-02, Leases (Topic 842), which is
effective for annual reporting periods (including interim periods) beginning after December 15, 2018, and early adoption is permitted.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_82" id="_SignificantAccountingPoliciesTextBlock-c0_cont_81"><ix:continuation continuedAt="_LesseeLeasesPolicyTextBlock-c0_cont_3" id="_LesseeLeasesPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company, through its subsidiary,
leases its offices, which are classified as operating leases in accordance with Topic 842. Operating leases are required to record in
the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company
has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts
as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and
(3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short-term lease exemption
as the lease terms are <ix:nonNumeric contextRef="c2" format="ixt-sec:durmonth" name="us-gaap:LesseeOperatingLeaseRemainingLeaseTerm">12</ix:nonNumeric> months or less.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 164; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_83" id="_SignificantAccountingPoliciesTextBlock-c0_cont_82"><ix:continuation continuedAt="_LesseeLeasesPolicyTextBlock-c0_cont_4" id="_LesseeLeasesPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">At inception of a contract, the Company
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 Company
assesses 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 Company recognizes operating lease expenses on a straight-line basis over
the lease term and had no finance leases for any of the periods stated herein.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_84" id="_SignificantAccountingPoliciesTextBlock-c0_cont_83"><ix:continuation id="_LesseeLeasesPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">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. All right-of-use assets are reviewed for impairment
annually. No impairment for right-of-use lease assets as of December 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_85" id="_SignificantAccountingPoliciesTextBlock-c0_cont_84"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in; text-align: left"><b><i>(v)</i></b></td><td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="sntg_AccruedExpensesAndOtherCurrentLiabilitiesPolicyTextBlock-c0_cont_1" escape="true" name="sntg:AccruedExpensesAndOtherCurrentLiabilitiesPolicyTextBlock"><b><i>Accrued expenses and other current liabilities</i></b></ix:nonNumeric></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt"><b><i>&#160;</i></b></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_86" id="_SignificantAccountingPoliciesTextBlock-c0_cont_85"><ix:continuation continuedAt="sntg_AccruedExpensesAndOtherCurrentLiabilitiesPolicyTextBlock-c0_cont_2" id="sntg_AccruedExpensesAndOtherCurrentLiabilitiesPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Accrued expenses and other current liabilities
include employee compensation payable, taxes payable and other payables.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_87" id="_SignificantAccountingPoliciesTextBlock-c0_cont_86"><ix:continuation id="sntg_AccruedExpensesAndOtherCurrentLiabilitiesPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">employee compensation payable refers
to the salary, social security, provident fund and bonus payable to the Company&#8217;s employees before the end of the current fiscal year.
taxes payable refers to the composition of VAT and surtax payable under PRC tax before the end of the fiscal year. Other payables mainly
deposit, service fees, etc.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_88" id="_SignificantAccountingPoliciesTextBlock-c0_cont_87"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(w)</i></b></span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c0" continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Recent Adopted Accounting Pronouncements</i></b></span></ix:nonNumeric></td></tr> <tr style="vertical-align: top"> <td><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_2" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_1">&#160;</ix:continuation></td> <td style="text-align: justify"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_3" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_2">&#160;</ix:continuation></td></tr> </table></ix:continuation><div>
</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_89" id="_SignificantAccountingPoliciesTextBlock-c0_cont_88"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_4" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In October 2021,
the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts
with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract
liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective
for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied
prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The
Company is currently evaluating the impact of the new guidance on the consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_90" id="_SignificantAccountingPoliciesTextBlock-c0_cont_89"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_5" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In November 2021, the FASB issued ASU
2021-10, &#8220;Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance&#8221;, which provides
guidance on the disclosure of transactions with a government that are accounted for by applying a grant or contribution accounting model
by analogy. The new guidance is required to be applied either prospectively to all transactions within the scope of ASU 2021-10 that are
reflected in financial statements at the date of adoption and new transactions that are entered into after the date of adoption or retrospectively
to those transactions. This guidance is effective for the Company for the year ending March 31, 2023. Early adoption is permitted. The
Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations
and cash flows.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_91" id="_SignificantAccountingPoliciesTextBlock-c0_cont_90"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_6" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In June 2022, the FASB issued ASU 2022-03,
&#8220;Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions&#8221;,
which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the
equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate
unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities
subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption
of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company for the year
ending March 31, 2025 and interim reporting periods during the year ending March 31, 2025. Early adoption is permitted. The Company does
not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation id="_SignificantAccountingPoliciesTextBlock-c0_cont_91"><ix:continuation id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company does not believe other recently
issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company&#8217;s unaudited
condensed consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.</p></ix:continuation></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 165; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:CashAndCashEquivalentsDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>3.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Cash and cash equivalents</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_2" id="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Cash and cash equivalents, consist of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_3" id="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfCashAndCashEquivalentsTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Cash at bank</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueFromBanks" scale="0" unitRef="usd">10,753,049</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueFromBanks" scale="0" unitRef="usd">3,805,103</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Cash on hand</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndDueFromBanks" scale="0" unitRef="usd">69</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndDueFromBanks" scale="0" unitRef="usd">32</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">10,753,118</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">3,805,135</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_4" id="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The carrying amounts of the Company&#8217;s
bank and cash balances are denominated in the following currencies:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_5" id="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_4"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfShortTermDebtTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%">RMB</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c70" decimals="0" format="ixt:num-dot-decimal" name="sntg:BankAndCashBalances" scale="0" unitRef="usd">642,036</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c71" decimals="0" format="ixt:num-dot-decimal" name="sntg:BankAndCashBalances" scale="0" unitRef="usd">139,688</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt">USD</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c72" decimals="0" format="ixt:num-dot-decimal" name="sntg:BankAndCashBalances" scale="0" unitRef="usd">10,111,082</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c73" decimals="0" format="ixt:num-dot-decimal" name="sntg:BankAndCashBalances" scale="0" unitRef="usd">3,665,447</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="sntg:BankAndCashBalances" scale="0" unitRef="usd">10,753,118</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="sntg:BankAndCashBalances" scale="0" unitRef="usd">3,805,135</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_CashAndCashEquivalentsDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Conversion of RMB into foreign currencies
is subject to the PRC&#8217;s Foreign Exchange Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange
Regulations.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_AccountsAndNontradeReceivableTextBlock-c0_cont_1" escape="true" name="us-gaap:AccountsAndNontradeReceivableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>4.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Accounts receivable, net</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_AccountsAndNontradeReceivableTextBlock-c0_cont_2" id="_AccountsAndNontradeReceivableTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Accounts receivable, net, consist of the following:</p></ix:continuation><div>

</div><ix:continuation continuedAt="_AccountsAndNontradeReceivableTextBlock-c0_cont_3" id="_AccountsAndNontradeReceivableTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:AccountsReceivableAllowanceForCreditLossTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 76%; text-align: left">Accounts receivable associated with loan recommendation services</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="sntg:AccountsReceivableAssociatedWithLoanRecommendationServices" scale="0" unitRef="usd">11,594</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Accounts receivable associated with prepaid payment network services</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="sntg:AccountsReceivableAssociatedWithPrepaidPaymentNetworkServices" scale="0" unitRef="usd">447,010</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="sntg:AccountsReceivableAssociatedWithPrepaidPaymentNetworkServices" scale="0" unitRef="usd">492,954</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Less: Allowance for doubtful debts</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivableCurrent" scale="0" unitRef="usd">54,896</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivableCurrent" scale="0" unitRef="usd">59,444</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left; padding-bottom: 4pt">Accounts receivable, net</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsAndOtherReceivablesNetCurrent" scale="0" unitRef="usd">403,708</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsAndOtherReceivablesNetCurrent" scale="0" unitRef="usd">433,510</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_AccountsAndNontradeReceivableTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company&#8217;s accounts receivable
includes service fees generated through providing loan recommendation and prepaid payment network services to customers. As of December
31, 2022 and 2021, the Company had accounts receivable balance of $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableFromSecuritization" scale="0" unitRef="usd">433,510</ix:nonFraction> and $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableFromSecuritization" scale="0" unitRef="usd">403,708</ix:nonFraction>, respectively. The allowance for doubtful accounts
were $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables" scale="0" unitRef="usd">59,444</ix:nonFraction> and $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables" scale="0" unitRef="usd">54,896</ix:nonFraction> as of December 31, 2022 and 2021.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 166; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:LoansNotesTradeAndOtherReceivablesDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>5.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Loan receivable</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation id="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">On July 8, 2021, the Company entered
into an agreement with Fortune Access Development Corporation, a British Virgin Island corporation, to purchase a one-year note with principal
of $<ix:nonFraction contextRef="c74" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="6" unitRef="usd">5.5</ix:nonFraction> million at <ix:nonFraction contextRef="c74" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentInterestRateEffectivePercentage" scale="-2" unitRef="pure">3</ix:nonFraction>% per annum. As of December 31, 2022, the outstanding loan receivable was $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LoansReceivableFairValueDisclosure" scale="0" unitRef="usd">5,500,000</ix:nonFraction> with unsecured. As of April 16,
2023, the Company collected back all the loan receivable.</p></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_OtherCurrentAssetsTextBlock-c0_cont_1" escape="true" name="us-gaap:OtherCurrentAssetsTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>6.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Prepaid expenses and other current assets</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_OtherCurrentAssetsTextBlock-c0_cont_2" id="_OtherCurrentAssetsTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The prepaid expenses and other current assets consist of
the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OtherCurrentAssetsTextBlock-c0_cont_3" id="_OtherCurrentAssetsTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfOtherCurrentAssetsTableTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfOtherCurrentAssetsTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 76%; text-align: left">Advance to suppliers (i)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_7_fact" name="us-gaap:Supplies" scale="0" unitRef="usd">65,171</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_8_fact" name="us-gaap:Supplies" scale="0" unitRef="usd">48,710</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Other receivable, net (ii)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_9_fact" name="us-gaap:OtherAssetsNoncurrent" scale="0" unitRef="usd">442,050</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_10_fact" name="us-gaap:OtherAssetsNoncurrent" scale="0" unitRef="usd">4,523,688</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt; text-align: left">Value-added Tax (&#8220;VAT&#8221;) recoverable (iii)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_11_fact" name="us-gaap:PrepaidTaxes" scale="0" unitRef="usd">7,841</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_12_fact" name="us-gaap:PrepaidTaxes" scale="0" unitRef="usd">7,248</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryNet" scale="0" unitRef="usd">515,062</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryNet" scale="0" unitRef="usd">4,579,646</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OtherCurrentAssetsTextBlock-c0_cont_4" id="_OtherCurrentAssetsTextBlock-c0_cont_3"><ix:continuation continuedAt="_ScheduleOfOtherCurrentAssetsTableTextBlock-c0_cont_2" id="_ScheduleOfOtherCurrentAssetsTableTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</span></td> <td style="text-align: justify"><ix:footnote id="ix_3_footnote" xml:lang="en-US"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Advance to suppliers represents balance paid to vendors for certain services that have not been completed. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. As of December 31, 2022 and 2021, there was no allowance recorded as the Company considers all of the advance to suppliers balance fully realizable.</span></ix:footnote></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OtherCurrentAssetsTextBlock-c0_cont_5" id="_OtherCurrentAssetsTextBlock-c0_cont_4"><ix:continuation continuedAt="_ScheduleOfOtherCurrentAssetsTableTextBlock-c0_cont_3" id="_ScheduleOfOtherCurrentAssetsTableTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><ix:footnote id="ix_4_footnote" xml:lang="en-US">Other receivable primarily includes advances to employees for business
development and security deposits paid for third-party payment platforms. This primarily represents a deposit of $<ix:nonFraction contextRef="c75" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:DepositAssets" scale="6" unitRef="usd">3.57</ix:nonFraction> million paid by
the Company in March 2022 for the commissioned acquisition of an e-commerce technology services business. As of December 31, 2022 and
2021, there was no allowance recorded as the Company considers all of the other receivable balance fully collectible.</ix:footnote></p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation id="_OtherCurrentAssetsTextBlock-c0_cont_5"><ix:continuation id="_ScheduleOfOtherCurrentAssetsTableTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</span></td> <td style="text-align: justify"><ix:footnote id="ix_5_footnote" xml:lang="en-US"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">VAT tax recoverable represents the amount that is overpaid by the Company before the VAT tax invoices received. Such amount can be used to offset future VAT tax liability.</span></ix:footnote></td></tr> </table></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>7.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Plant and equipment, net</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_2" id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Plant and equipment consists of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></p><div>

</div><ix:continuation continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_3" id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:PropertyPlantAndEquipmentTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold">Cost:</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 76%; text-align: left">Office equipment and furniture</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c76" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentAdditions" scale="0" unitRef="usd">492,985</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c77" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentAdditions" scale="0" unitRef="usd">363,991</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt">Transportation vehicles</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c78" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentAdditions" scale="0" unitRef="usd">62,066</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c79" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentAdditions" scale="0" unitRef="usd">57,373</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total cost</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentAdditions" scale="0" unitRef="usd">555,051</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentAdditions" scale="0" unitRef="usd">421,364</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Less: Accumulated depreciation</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" scale="0" unitRef="usd">434,771</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" scale="0" unitRef="usd">368,341</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left; padding-bottom: 4pt">Plant and equipment, net</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentOtherNet" scale="0" unitRef="usd">120,280</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentOtherNet" scale="0" unitRef="usd">53,023</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Depreciation expense was $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationExpenseOnReclassifiedAssets" scale="0" unitRef="usd">25,464</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationExpenseOnReclassifiedAssets" scale="0" unitRef="usd">23,370</ix:nonFraction>
and $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationExpenseOnReclassifiedAssets" scale="0" unitRef="usd">13,022</ix:nonFraction> for the years ended December 31, 2022, 2021 and 2020, respectively.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 167; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_IntangibleAssetsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:IntangibleAssetsDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>8.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Intangible assets, net</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_IntangibleAssetsDisclosureTextBlock-c0_cont_2" id="_IntangibleAssetsDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Intangible assets primarily consist
of accounting software, which is amortized based on straight-line method over use life of <ix:nonNumeric contextRef="c56" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">5</ix:nonNumeric> to <ix:nonNumeric contextRef="c57" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">10</ix:nonNumeric> years.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IntangibleAssetsDisclosureTextBlock-c0_cont_3" id="_IntangibleAssetsDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Intangible assets, net, consist of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IntangibleAssetsDisclosureTextBlock-c0_cont_4" id="_IntangibleAssetsDisclosureTextBlock-c0_cont_3"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; padding-bottom: 1.5pt">Software</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalizedComputerSoftwareGross" scale="0" unitRef="usd">347,484</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalizedComputerSoftwareGross" scale="0" unitRef="usd">457,640</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total cost</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfGoodsAndServicesSold" scale="0" unitRef="usd">347,484</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfGoodsAndServicesSold" scale="0" unitRef="usd">457,640</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: Accumulated amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedAmortizationOfOtherDeferredCosts" scale="0" unitRef="usd">316,937</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedAmortizationOfOtherDeferredCosts" scale="0" unitRef="usd">368,165</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Intangible assets, net</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IntangibleAssetsCurrent" scale="0" unitRef="usd">30,547</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IntangibleAssetsCurrent" scale="0" unitRef="usd">89,475</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_IntangibleAssetsDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Amortization expense was $ <ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseDebtExcludingAmortization" scale="0" unitRef="usd">17,212</ix:nonFraction>,
$<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseDebtExcludingAmortization" scale="0" unitRef="usd">39,601</ix:nonFraction> and $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseDebtExcludingAmortization" scale="0" unitRef="usd">40,498</ix:nonFraction> for the years ended December 31, 2022, 2021 and 2020, respectively.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_1" escape="true" name="us-gaap:LesseeOperatingLeasesTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0in"></td>
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>9.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Operating leases </b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_2" id="_LesseeOperatingLeasesTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has leased office premises
and buildings under non-cancellable operating lease agreements. These leases have different terms and renewal rights</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_3" id="_LesseeOperatingLeasesTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following table presents balances
reported in the consolidated balance sheets related to the Company&#8217;s leases:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.5pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_4" id="_LesseeOperatingLeasesTextBlock-c0_cont_3"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfAmountsRecognizedInBalanceSheetTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Right-of-use asset, net</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseRightOfUseAsset" scale="0" unitRef="usd">162,270</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Operating lease liabilities, current</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityCurrent" scale="0" unitRef="usd">87,129</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Operating lease liabilities, non-current</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityNoncurrent" scale="0" unitRef="usd">74,384</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<b>Total operating lease liabilities</b></span></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiability" scale="0" unitRef="usd">161,513</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.5pt; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_5" id="_LesseeOperatingLeasesTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following table presents operating lease cost reported in the consolidated
statements of comprehensive loss related to the Company&#8217;s leases:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.5pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_6" id="_LesseeOperatingLeasesTextBlock-c0_cont_5"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfComprehensiveIncomeLossTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Year
ended<br/> December&#160;31,<br/> 2022</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; text-align: center"><b>USD</b></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 88%; text-align: left">Operating lease cost</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseCost" scale="0" unitRef="usd">19,199</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Short-term lease cost</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermLeaseCost" scale="0" unitRef="usd">24,967</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LeaseCost" scale="0" unitRef="usd">44,166</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_7" id="_LesseeOperatingLeasesTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">For the year ended December 31, 2022,
the Group incurred rental expenses under operating leases US$<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsForRent" scale="0" unitRef="usd">19,199</ix:nonFraction>.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.5pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_8" id="_LesseeOperatingLeasesTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following table reconciles the undiscounted
cash flows of the Company&#8217;s leases as of December 31, 2022 to the present value of its operating lease payments:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.5pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_LesseeOperatingLeasesTextBlock-c0_cont_8"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:LesseeOperatingLeaseLiabilityMaturityTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; border-bottom: black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>For the year ending December 31</b></span></td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>USD</b></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 88%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$&#160;</span></td>
    <td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths" scale="0" unitRef="usd">92,684</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2024</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo" scale="0" unitRef="usd">75,832</ix:nonFraction></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total undiscounted operating lease payments</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount" scale="0" unitRef="usd">168,516</ix:nonFraction></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less: imputed interest</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnrecordedUnconditionalPurchaseObligationImputedInterest" scale="0" unitRef="usd">7,003</ix:nonFraction></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Present value of operating lease liabilities</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PresentValueOfFutureMinimumLeasePaymentsSaleLeasebackTransactions" scale="0" unitRef="usd">161,513</ix:nonFraction></b></span></td>
    <td>&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.5pt; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.5pt; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 168; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.5pt; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:IncomeTaxDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>10.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Income tax</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_2" id="_IncomeTaxDisclosureTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 96.74%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cayman Islands</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_3" id="_IncomeTaxDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under the current tax laws of the Cayman
Islands, the Company is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed
upon the payment of dividends by the Company to its shareholders.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_4" id="_IncomeTaxDisclosureTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 96.74%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hong Kong Profits Tax</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_5" id="_IncomeTaxDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Sentage HK is incorporated in Hong Kong
and is subject to profit taxes in Hong Kong at a rate of <ix:nonFraction contextRef="c80" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxContingenciesOther" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c81" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxContingenciesOther" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c82" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxContingenciesOther" scale="-2" unitRef="pure">16.5</ix:nonFraction></ix:nonFraction></ix:nonFraction>%. However, Sentage HK did not generate any assessable profits arising in
or derived from Hong Kong for the fiscal years ended December 31, 2022, 2021 and 2020, and accordingly no provision for Hong Kong profits
tax has been made in these periods.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_6" id="_IncomeTaxDisclosureTextBlock-c0_cont_5"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 96.74%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRC Enterprise Income Tax (&#8220;EIT&#8221;)</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_7" id="_IncomeTaxDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On March 16, 2007, the National People&#8217;s
Congress of the PRC enacted the Enterprise Income Tax Law (&#8220;EIT Law&#8221;), under which domestic companies would be subject to
Enterprise Income Tax (&#8220;EIT&#8221;) at a uniform rate of <ix:nonFraction contextRef="c83" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockDividendRatePercentage" scale="-2" unitRef="pure">25</ix:nonFraction>%. The EIT Law became effective on January 1, 2008.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_8" id="_IncomeTaxDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Sentage WFOE, Daxin Wealth, Daxin Zhuohui,
Qingdao Buytop and Zhenyi are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws (&#8220;EIT Laws&#8221;)
and are taxed at the statutory income tax rate of <ix:nonFraction contextRef="c84" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate" scale="-2" unitRef="pure">25</ix:nonFraction>%.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_9" id="_IncomeTaxDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under the EIT Law and its implementation
rules, an enterprise established outside China with a &#8220;place of effective management&#8221; within China is considered a China resident
enterprise for Chinese enterprise income tax purposes. A China resident enterprise is generally subject to certain Chinese tax reporting
obligations and a uniform <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential" scale="-2" unitRef="pure">25</ix:nonFraction>% enterprise income tax rate on its worldwide income. The implementation rules to the New EIT Law provide
that non-resident legal entities are considered PRC residents if substantial and overall management and control over the manufacturing
and business operations, personnel, accounting, properties, etc., occur within the PRC. Despite the present uncertainties resulting from
the limited PRC tax guidance on the issue, the Company does not believe that the legal entities organized outside the PRC should be treated
as residents for 2008 EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered
outside the PRC are deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC
income tax at a rate of <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationDispositionOfBusiness" scale="-2" unitRef="pure">25</ix:nonFraction>%.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_10" id="_IncomeTaxDisclosureTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">If the Company were to be non-resident
for PRC tax purposes, dividends paid to it from profits earned by the PRC operating entities after January 1, 2008 would be subject to
a withholding tax. The EIT law and its relevant regulations impose a withholding tax at <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxHolidays" scale="-2" unitRef="pure">10</ix:nonFraction>%, unless reduced by a tax treaty or agreement,
for dividends distributed by a PRC-resident enterprise to its non-PRC-resident corporate investor for earnings generated beginning on
January 1, 2008. Earnings generated prior to January 1, 2008 are exempt from such withholding tax. The Company has not recognized any
deferred tax liability for the undistributed earnings of the PRC-resident enterprise as of December 31, 2022, 2021 and 2020, as the Company
plans to permanently reinvest the earnings generated before December 31, 2022 in the PRC.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_11" id="_IncomeTaxDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Income tax returns of PRC Entities are
filed on an individual entity basis. The PRC Entities have calculated their income tax provision using the separate return method in these
consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><i>&#160;</i></p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 169; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><i>&#160;</i></p><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_12" id="_IncomeTaxDisclosureTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><i><span style="text-decoration:underline">Income taxes provision </span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_13" id="_IncomeTaxDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Income tax expense consists of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_14" id="_IncomeTaxDisclosureTextBlock-c0_cont_13"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 64%; text-align: justify">Current income tax expense</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CurrentIncomeTaxExpenseBenefit" scale="0" unitRef="usd">592,701</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CurrentIncomeTaxExpenseBenefit" scale="0" unitRef="usd">257,344</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-49">-</div></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify; padding-bottom: 1.5pt">Deferred income tax benefit</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-50">-</div></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-51">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-52">-</div></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: justify; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">592,701</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">257,344</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-53">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><i>&#160;</i></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_15" id="_IncomeTaxDisclosureTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following
table reconciles the PRC statutory rates to the Company&#8217;s effective tax rate for the years ended December 31, 2022, 2021 and 2020:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_16" id="_IncomeTaxDisclosureTextBlock-c0_cont_15"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 64%; text-align: left">China Income tax statutory rate</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxCreditsForeign" scale="-2" unitRef="pure">25.0</ix:nonFraction></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxCreditsForeign" scale="-2" unitRef="pure">25.0</ix:nonFraction></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxCreditsForeign" scale="-2" sign="-" unitRef="pure">25</ix:nonFraction></td><td style="width: 1%; text-align: left">%)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Nondeductible expenses-permanent difference</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationNondeductibleExpense" scale="-2" unitRef="pure">0.1</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationNondeductibleExpense" scale="-2" unitRef="pure">0.1</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationNondeductibleExpense" scale="-2" unitRef="pure">0.1</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Change in valuation allowance</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="-2" unitRef="pure">2.1</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="-2" unitRef="pure">6.5</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="-2" unitRef="pure">24.9</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Effective tax rate</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationDeductionsOther" scale="-2" unitRef="pure">27.2</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">%</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationDeductionsOther" scale="-2" unitRef="pure">31.6</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">%</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><div style="-sec-ix-hidden: hidden-fact-54">-</div></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_17" id="_IncomeTaxDisclosureTextBlock-c0_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><i><span style="text-decoration:underline">Deferred taxes</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_18" id="_IncomeTaxDisclosureTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company&#8217;s deferred tax assets are comprised of
the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_19" id="_IncomeTaxDisclosureTextBlock-c0_cont_18"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in">Deferred tax assets</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 76%; text-align: left; padding-bottom: 1.5pt">Deferred tax assets derived from net operating loss (&#8220;NOL&#8221;) carry forwards and deferred revenue</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwards" scale="0" unitRef="usd">13,724</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwards" scale="0" unitRef="usd">650,601</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total gross deferred tax assets</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsGross" scale="0" unitRef="usd">13,724</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsGross" scale="0" unitRef="usd">650,601</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Valuation allowance on deferred tax assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-55">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">637,915</ix:nonFraction>)</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Deferred tax assets, net of valuation allowance</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsNet" scale="0" unitRef="usd">13,724</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsNet" scale="0" unitRef="usd">12,686</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_20" id="_IncomeTaxDisclosureTextBlock-c0_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company follows ASC 740, &#8220;Income
Taxes&#8221;, 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 or tax returns. Under this method, deferred income taxes are recognized for the tax
consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each
period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect
taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_21" id="_IncomeTaxDisclosureTextBlock-c0_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company&#8217;s deferred tax assets
primarily derived from the net operating loss (&#8220;NOL&#8221;) and deferred revenue that can be carried forward to offset future taxable
income. As the Company ended its offline loan recommendation business in the end of 2017, management concluded that the chances for the
Company&#8217;s VIEs, Daxin Wealth and Daxin Zhuohui, to utilize their net operating loss carry forwards carry forwards were remote. Accordingly,
a valuation allowance of approximately $<ix:nonFraction contextRef="c85" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsInventory" scale="6" unitRef="usd">1.2</ix:nonFraction> million has been provided against part of the deferred tax assets associated with the NOL
carryforwards that occurred prior to December 31, 2016 due to expiration of some of loss carryforwards. As of December 31, 2022 and 2021,
the Company had deferred tax assets balance of $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOther" scale="0" unitRef="usd">12,686</ix:nonFraction> and $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOther" scale="0" unitRef="usd">13,724</ix:nonFraction>, respectively. In connection with the newly added loan recommendation
services and prepaid payment network services, management believes that the Company will continue to generate sufficient taxable income
in the 2023 fiscal year. Therefore, the Company believes that it can utilize the remaining deferred tax asset to offset future taxable
income.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 170; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_22" id="_IncomeTaxDisclosureTextBlock-c0_cont_21"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><i><span style="text-decoration:underline">Uncertain tax positions </span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_IncomeTaxDisclosureTextBlock-c0_cont_22"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company evaluates each uncertain
tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized
benefits associated with the tax positions. As of December 31, 2022 and 2021, the Company did not have any significant unrecognized uncertain
tax positions. The Company did not incur any interest or penalties tax for the years ended December 31, 2022, 2021 and 2020. The Company
does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months from December 31, 2022.
As of December 31, 2022, all the tax returns of the Company&#8217;s PRC subsidiary and VIEs remain available for statutory examination
by PRC tax authorities.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock-c0_cont_1" escape="true" name="us-gaap:AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>11.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Accrued expenses and other current liabilities</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock-c0_cont_2" id="_AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Accrued expenses and other payables
consist of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfAccruedLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Accrued expenses and other current liabilities</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Deposits received from customers</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="sntg:DepositsReceivedFromCustomers" scale="0" unitRef="usd">27,615</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="sntg:DepositsReceivedFromCustomers" scale="0" unitRef="usd">20,592</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedLiabilitiesCurrentAndNoncurrent" scale="0" unitRef="usd">90,491</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedLiabilitiesCurrentAndNoncurrent" scale="0" unitRef="usd">36,883</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">VAT and other taxes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccrualForTaxesOtherThanIncomeTaxesCurrent" scale="0" unitRef="usd">216,516</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccrualForTaxesOtherThanIncomeTaxesCurrent" scale="0" unitRef="usd">200,342</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Payroll payable</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedPayrollTaxesCurrent" scale="0" unitRef="usd">45,369</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedPayrollTaxesCurrent" scale="0" unitRef="usd">51,184</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" scale="0" unitRef="usd">379,991</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" scale="0" unitRef="usd">309,001</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:RelatedPartyTransactionsDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>12.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Related party transactions</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_2" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><i><span style="text-decoration:underline">Due to related party</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_3" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Due to a related party consists of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_4" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_3"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><b>Name</b></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: center"><b>Related party relationship</b></td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt; font-weight: bold"></td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"></td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">USD</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">USD</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="vertical-align: top; width: 40%; text-align: left; padding-bottom: 1.5pt">Qiaoling Lu</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 35%; text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">CEO and controlling shareholder of the Company</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c86" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTaxExpenseDueToAffiliatesDeferred" scale="0" unitRef="usd">161,020</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c87" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTaxExpenseDueToAffiliatesDeferred" scale="0" unitRef="usd">4,709</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Total due to a related party</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTaxExpenseDueToAffiliatesDeferred" scale="0" unitRef="usd">161,020</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTaxExpenseDueToAffiliatesDeferred" scale="0" unitRef="usd">4,709</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As of December 31, 2022 and 2021, the
balance due to a related party in the amount of $ <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTransactionDueFromToRelatedParty" scale="0" unitRef="usd">4,709</ix:nonFraction> and $ <ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTransactionDueFromToRelatedParty" scale="0" unitRef="usd">161,020</ix:nonFraction>, respectively, was loan advance from the Company&#8217;s controlling
shareholder and was used as working capital during the Company&#8217;s normal course of business.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:ConcentrationRiskDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>13.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Concentrations</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_2" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">A majority
of the Company&#8217;s revenue and expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries&#8217;
assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange
transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People&#8217;s
Bank of China (&#8220;PBOC&#8221;). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC
or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_3" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As of December 31, 2022 and 2021, $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestBearingDepositsInBanks" scale="0" unitRef="usd">3,805,103</ix:nonFraction>
and $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestBearingDepositsInBanks" scale="0" unitRef="usd">10,753,049</ix:nonFraction> of the Company&#8217;s cash was on deposit at financial institutions in the PRC where there currently is no rule or regulation
requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. For the years ended December
31, 2022, 2021 and 2020, the Company&#8217;s substantial assets were located in the PRC and the Company&#8217;s substantial revenues were
derived from its subsidiaries and VIEs located in the PRC.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 171; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_4" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">For the year
ended December 31, 2022, one customer accounted for more than <ix:nonFraction contextRef="c0" decimals="3" format="ixt:num-dot-decimal" name="sntg:ConcentrationRiskPercentage" scale="-2" unitRef="pure">52.2</ix:nonFraction>% of the Company&#8217;s total revenue..</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_5" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">For the years ended December2021 and
2020, no single customer accounted for more than <ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="sntg:ConcentrationRiskPercentage" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="sntg:ConcentrationRiskPercentage" scale="-2" unitRef="pure">10</ix:nonFraction></ix:nonFraction>% of the Company&#8217;s total revenue.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_ConcentrationRiskDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As of December 31, 2022, one customer
accounted for <ix:nonFraction contextRef="c88" decimals="3" format="ixt:num-dot-decimal" name="sntg:ConcentrationRiskPercentage" scale="-2" unitRef="pure">63.2</ix:nonFraction>% of the total accounts receivable balance. As of December 31, 2021, one customer accounted for <ix:nonFraction contextRef="c89" decimals="3" format="ixt:num-dot-decimal" name="sntg:ConcentrationRiskPercentage" scale="-2" unitRef="pure">73.8</ix:nonFraction>% of the total accounts
receivable balance.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:StockholdersEquityNoteDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>14.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Shareholders&#8217; equity</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_2" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><i><span style="text-decoration:underline">Ordinary shares </span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_3" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Sentage Holdings was incorporated as
an exempted company with limited liability under the laws of the Cayman Islands on September 16, 2019. The original authorized number
of Ordinary Shares was <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TemporaryEquitySharesAuthorized" scale="0" unitRef="shares">50,000</ix:nonFraction> shares with par value of $<ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:TemporaryEquityValueExcludingAdditionalPaidInCapital" scale="0" unitRef="usd">1.00</ix:nonFraction> per share and <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TemporaryEquitySharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TemporaryEquitySharesOutstanding" scale="0" unitRef="shares">10,000</ix:nonFraction></ix:nonFraction> shares were issued and outstanding. On September 2,
2020, the Company amended its Memorandum of Association to subdivide the authorized shares from <ix:nonFraction contextRef="c90" decimals="0" format="ixt:num-dot-decimal" name="sntg:SubdivideSharesAuthorized" scale="0" unitRef="shares">50,000</ix:nonFraction> shares at par value of $<ix:nonFraction contextRef="c90" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> per
share to <ix:nonFraction contextRef="c90" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares">50,000,000</ix:nonFraction> shares of Ordinary Shares with par value of $<ix:nonFraction contextRef="c90" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">0.001</ix:nonFraction> per share, and subdivide the already issued <ix:nonFraction contextRef="c91" decimals="0" format="ixt:num-dot-decimal" name="sntg:SubdivideSharesIssued" scale="0" unitRef="shares">10,000</ix:nonFraction> shares to <ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="sntg:SubdivideSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c90" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">10,000,000</ix:nonFraction></ix:nonFraction>
shares at par value of $<ix:nonFraction contextRef="c90" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:SaleOfStockPricePerShare" scale="0" unitRef="usdPershares">0.001</ix:nonFraction> per share As a result of this forward split, there is a total of <ix:nonFraction contextRef="c90" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">10,000,000</ix:nonFraction> Ordinary Shares issued and outstanding.
The issuance of these <ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="sntg:ReorganizationShares" scale="0" unitRef="shares">10,000,000</ix:nonFraction> shares is considered as a part of the Reorganization of the Company, which was retroactively applied
as if the transaction occurred at the beginning of the period presented (see Note 1).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_4" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On August 10, 2022, the Company&#8217;s authorized
ordinary shares was consolidated at the ratio of five-for-one and the Company&#8217;s authorized capital stock became $<ix:nonFraction contextRef="c94" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockRepurchaseProgramAuthorizedAmount1" scale="0" unitRef="usd">50,000</ix:nonFraction> divided into <ix:nonFraction contextRef="c94" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TemporaryEquitySharesAuthorized" scale="0" unitRef="shares">10,000,000</ix:nonFraction>
ordinary shares of $<ix:nonFraction contextRef="c94" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">0.005</ix:nonFraction> per share.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_5" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">From the legal perspective, the Reverse
Split applied to the issued shares of the Company on the date of the Reverse Split and does not have any retroactive effect on the Company&#8217;s
shares prior that date. However, for accounting purposes only, references to our ordinary shares in this annual report are stated as having
been retroactively adjusted and restated to give effect to the Reverse Split, as if the Reverse Split had occurred by the relevant earlier
date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><i>&#160;</i></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_6" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><i><span style="text-decoration:underline">Restricted net assets </span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_7" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Relevant PRC laws and regulations restrict
the Company&#8217;s PRC subsidiary and VIEs from transferring a portion of their net assets, equivalent to their statutory reserves and
their share capital, to the Company in the form of loans, advances or cash dividends. Only PRC entities&#8217; accumulated profits may
be distributed as dividends to the Company without the consent of a third party.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_8" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The payment of dividends by entities
organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends
only out of accumulated profits as determined in accordance with accounting standards and regulations in China. The results of operations
reflected in the consolidated financial statements prepared in accordance with U.S GAAP differ from those in the statutory financial statements
of the WFOE and VIEs. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated
by State Administration of Foreign Exchange.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In light of
the foregoing restrictions, Sentage WFOE and the VIEs are restricted in their ability to transfer their net assets to the Company. Foreign
exchange and other regulations in the PRC may further restrict Sentage WFOE and VIEs from transferring funds to the Company in the form
of dividends, loans and advances. As of December 31, 2022 and 2021, restricted net assets of Sentage WFOE and VIEs amounted to $<ix:nonFraction contextRef="c95" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AmountOfRestrictedNetAssetsForConsolidatedAndUnconsolidatedSubsidiaries" scale="0" unitRef="usd">846,905</ix:nonFraction>
and $<ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AmountOfRestrictedNetAssetsForConsolidatedAndUnconsolidatedSubsidiaries" scale="0" unitRef="usd">538,177</ix:nonFraction>, respectively.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 172; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:CommitmentsAndContingenciesDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>15.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Commitment and Contingencies</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><b><i>&#160;</i></b></p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_2" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(a)</i></b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Contingencies</i></b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_3" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">From time to
time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated
with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss
contingencies are expensed as incurred. The Company&#8217;s management does not expect any liability from the disposition of such claims
and litigation individually or in the aggregate to have a material adverse impact on the Company&#8217;s consolidated financial position,
results of operations and cash flows.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_4" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>(b)</i></b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Lease commitments</i></b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_5" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company&#8217;s VIEs Daxin Wealth,
Daxin Zhuohui, and Qingdao Buytop, entered into operating lease agreements with landlords to lease office space in Shanghai and Qingdao.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_6" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following table sets forth our contractual
obligations as of December 31, 2022&#65306;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_6"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:OperatingLeaseLeaseIncomeTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">USD</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 64%; text-align: justify; padding-bottom: 1.5pt">Operating lease commitments for Lease expense under lease agreements</td><td style="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentLessorAssetUnderOperatingLease" scale="0" unitRef="usd">178,392</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c97" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentLessorAssetUnderOperatingLease" scale="0" unitRef="usd">102,560</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c98" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentLessorAssetUnderOperatingLease" scale="0" unitRef="usd">75,832</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">Operating lease commitments for property management expenses under lease agreements</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="sntg:OperatingLeaseCommitmentsForPropertyManagementExpensesUnderLeaseAgreements" scale="0" unitRef="usd">22,980</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c97" decimals="0" format="ixt:num-dot-decimal" name="sntg:OperatingLeaseCommitmentsForPropertyManagementExpensesUnderLeaseAgreements" scale="0" unitRef="usd">13,581</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c98" decimals="0" format="ixt:num-dot-decimal" name="sntg:OperatingLeaseCommitmentsForPropertyManagementExpensesUnderLeaseAgreements" scale="0" unitRef="usd">9,399</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:SegmentReportingDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>16.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Segment reporting</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_2" id="_SegmentReportingDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">An operating segment is a component
of the Company 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 Company&#8217;s chief operating decision maker in
order to allocate resources and assess performance of the segment.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_3" id="_SegmentReportingDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In accordance with ASC 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 (&#8220;CODM&#8221;), or decision making group, in deciding how to allocate
resources and in assessing performance. The Company uses the &#8220;management approach&#8221; in determining reportable operating segments.
The management approach considers the internal organization and reporting used by the Company&#8217;s chief operating decision maker for
making operating decisions and assessing performance as the source for determining the Company&#8217;s reportable segments. Management,
including the chief operating decision maker, reviews operation results by the revenue of different services. Based on management&#8217;s
assessment, the Company has determined that it has three operating segments as defined by ASC 280, including Consumer Loan Repayment and
Collection Management Services, Loan Recommendation Services and Prepaid Payment Network Services.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_4" id="_SegmentReportingDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following tables present summary
information by segment for the years ended December 31, 2022, 2021 and 2020, respectively:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>



</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_5" id="_SegmentReportingDisclosureTextBlock-c0_cont_4"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfSegmentReportingInformationBySegmentTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfSegmentReportingInformationBySegmentTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; text-align: center">&#160;</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Consumer loan</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>repayment</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>and collection</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>management</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>services</b></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Loan</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>recommendation</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>services</b></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Prepaid</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>payment</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>network</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>services</b></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Others</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic">&#160;</td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-indent: -9pt; padding-left: 9pt">Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">1,074,734</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c100" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">2,087,717</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c101" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">432,958</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-56">-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c103" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,595,409</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Operating expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">422,963</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c100" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">821,624</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c101" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">170,392</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-57">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c103" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">1,414,979</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Income from operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">651,771</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c100" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">1,266,093</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c101" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">262,566</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-58">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c103" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">2,180,430</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Income tax expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">177,169</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c100" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">344,159</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c101" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">71,373</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-59">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c103" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">592,701</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Net income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">474,496</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c100" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">921,728</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c101" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">191,151</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-60">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c103" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">1,587,375</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">6,836</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c100" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">11,521</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c101" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">35,163</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-61">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c103" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">53,520</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Capital expenditure</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-62">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-63">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-64">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-65">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-66">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Total assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c104" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">694,874</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c105" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">1,174,137</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c106" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">915,577</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-67">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c108" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">2,784,588</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 173; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></span></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_6" id="_SegmentReportingDisclosureTextBlock-c0_cont_5"><ix:continuation continuedAt="_ScheduleOfSegmentReportingInformationBySegmentTextBlock-c0_cont_2" id="_ScheduleOfSegmentReportingInformationBySegmentTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; text-align: center">&#160;</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center">&#160;</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="14" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31, 2021</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; text-align: center">&#160;</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Consumer loan</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>repayment</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>and collection</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>management</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>services</b></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Loan</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>recommendation</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>services</b></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Prepaid</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>payment</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>network</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>services</b></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Others</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic">&#160;</td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-indent: -9pt; padding-left: 9pt">Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c109" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">156,062</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c110" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">928,565</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">1,177,822</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-68">-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c113" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">2,262,449</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Operating expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c109" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">508,772</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c110" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">20,717</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">236,039</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c112" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">2,275,887</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c113" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">3,041,415</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Income (loss) from operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c109" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">352,710</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c110" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">907,848</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">941,783</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c112" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">2,275,887</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c113" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">778,966</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Income tax expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c109" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">14,783</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c110" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">109,732</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">132,827</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-69">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c113" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">257,342</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Net income (loss)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c109" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">367,692</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c110" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">798,054</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">754,814</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c112" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">2,278,417</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c113" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">1,093,241</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c109" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">1,347</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c110" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">9,997</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">51,627</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-70">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c113" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">62,971</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Capital expenditure</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-71">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-72">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalExpenditureDiscontinuedOperations" scale="0" unitRef="usd">6,722</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-73">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c113" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalExpenditureDiscontinuedOperations" scale="0" unitRef="usd">6,722</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Total assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c114" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" sign="-" unitRef="usd">3,715,787</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c115" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">4,011,568</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c116" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">1,629,846</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c117" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">15,441,081</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c118" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">17,366,708</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation id="_SegmentReportingDisclosureTextBlock-c0_cont_6"><ix:continuation id="_ScheduleOfSegmentReportingInformationBySegmentTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Consumer loan</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>repayment</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>and collection</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>management</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>services</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Loan</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>recommendation</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>services</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Prepaid</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>payment</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>network</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>services</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Others</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic">&#160;</td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-indent: -9pt; padding-left: 9pt">Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-74">-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-75">-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c121" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">161,372</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-76">-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c123" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">161,372</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Operating expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-77">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c120" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">244,629</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c121" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">297,550</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">2,190,200</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c123" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">2,732,379</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Income (loss) from operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-78">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c120" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">244,629</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c121" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">136,178</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c122" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">2,190,200</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c123" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">2,571,007</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Net income (loss)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c119" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">112</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c120" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">244,799</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c121" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">144,833</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c122" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">2,172,387</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c123" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">2,561,907</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-79">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-80">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c121" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">42,676</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">14,752</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c123" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">57,428</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Capital expenditure</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-81">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-82">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c121" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalExpenditureDiscontinuedOperations" scale="0" unitRef="usd">34,346</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-83">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c123" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalExpenditureDiscontinuedOperations" scale="0" unitRef="usd">34,346</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Total assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c124" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">8,328</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c125" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">51,321</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c126" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">1,536,973</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c127" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">13,062,212</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c128" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">14,658,834</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table></ix:continuation></ix:continuation><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SubsequentEventsTextBlock-c0_cont_1" escape="true" name="us-gaap:SubsequentEventsTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>17.</b></span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Subsequent events</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation id="_SubsequentEventsTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">No subsequent event which had a material
impact on the Company was identified through the date of issuance of the financial statements.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">F-28</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Rule-Page --><div style="margin: 0pt; width: 100%"><div style="font-size: 1pt; border-top: Black 1.5pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><div style="display: none"><ix:header>
<ix:hidden>
<ix:nonFraction contextRef="c5" decimals="2" id="hidden-fact-0" name="us-gaap:EarningsPerShareDiluted" sign="-" unitRef="usdPershares">0.46</ix:nonFraction>
<ix:nonFraction contextRef="c4" decimals="2" id="hidden-fact-1" name="us-gaap:EarningsPerShareDiluted" unitRef="usdPershares">0.79</ix:nonFraction>
<ix:nonFraction contextRef="c0" decimals="2" id="hidden-fact-2" name="us-gaap:EarningsPerShareDiluted" sign="-" unitRef="usdPershares">1.08</ix:nonFraction>
<ix:nonFraction contextRef="c4" decimals="INF" id="hidden-fact-3" name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" unitRef="shares">2000000</ix:nonFraction>
<ix:nonFraction contextRef="c5" decimals="INF" id="hidden-fact-4" name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" unitRef="shares">2374795</ix:nonFraction>
<ix:nonFraction contextRef="c0" decimals="INF" id="hidden-fact-5" name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" unitRef="shares">2376764</ix:nonFraction>
<ix:nonFraction contextRef="c8" id="hidden-fact-6" name="us-gaap:StockholdersEquity" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c12" id="hidden-fact-7" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c13" id="hidden-fact-8" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c14" id="hidden-fact-9" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-10" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c12" id="hidden-fact-11" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c14" id="hidden-fact-12" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c15" id="hidden-fact-13" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c19" id="hidden-fact-14" name="us-gaap:StockholdersEquity" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c23" id="hidden-fact-15" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c24" id="hidden-fact-16" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c25" id="hidden-fact-17" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-18" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c23" id="hidden-fact-19" name="sntg:StatutoryReserve" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c24" id="hidden-fact-20" name="sntg:StatutoryReserve" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-21" name="sntg:StatutoryReserve" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-22" name="sntg:StatutoryReserve" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c23" id="hidden-fact-23" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c24" id="hidden-fact-24" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c25" id="hidden-fact-25" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-26" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-27" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c29" id="hidden-fact-28" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c36" id="hidden-fact-29" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c35" id="hidden-fact-30" name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-31" name="us-gaap:DeferredIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-32" name="us-gaap:ProvisionForDoubtfulAccounts" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-33" name="us-gaap:IncreaseDecreaseInOperatingLeaseLiability" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-34" name="us-gaap:IncreaseDecreaseInOperatingLeaseLiability" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-35" name="us-gaap:IncreaseDecreaseInDeferredLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-36" name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-37" name="us-gaap:PaymentsForProceedsFromLoansReceivable" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-38" name="us-gaap:PaymentsForProceedsFromLoansReceivable" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-39" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-40" name="sntg:DeferredInitialPublicOfferingCost" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-41" name="sntg:IncreaseorDecreasePaymentofLeaseLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-42" name="sntg:IncreaseorDecreasePaymentofLeaseLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-43" name="us-gaap:ProceedsFromIssuanceInitialPublicOffering" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-44" name="us-gaap:ProceedsFromIssuanceInitialPublicOffering" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-45" name="sntg:CashPaidForAmountsIncludeInOperatingLeaseLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-46" name="sntg:CashPaidForAmountsIncludeInOperatingLeaseLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c53" id="hidden-fact-47" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-48" name="sntg:ServiceRevenue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-49" name="us-gaap:CurrentIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-50" name="us-gaap:DeferredOtherTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-51" name="us-gaap:DeferredOtherTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-52" name="us-gaap:DeferredOtherTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-53" name="us-gaap:IncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-54" name="us-gaap:EffectiveIncomeTaxRateReconciliationDeductionsOther" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-55" name="us-gaap:DeferredTaxAssetsValuationAllowance" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c102" id="hidden-fact-56" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c102" id="hidden-fact-57" name="us-gaap:OperatingExpenses" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c102" id="hidden-fact-58" name="us-gaap:OperatingIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c102" id="hidden-fact-59" name="us-gaap:IncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c102" id="hidden-fact-60" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c102" id="hidden-fact-61" name="us-gaap:DepreciationAndAmortization" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c99" id="hidden-fact-62" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c100" id="hidden-fact-63" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c101" id="hidden-fact-64" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c102" id="hidden-fact-65" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c103" id="hidden-fact-66" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c107" id="hidden-fact-67" name="us-gaap:OtherAssets" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c112" id="hidden-fact-68" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c112" id="hidden-fact-69" name="us-gaap:IncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c112" id="hidden-fact-70" name="us-gaap:DepreciationAndAmortization" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c109" id="hidden-fact-71" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c110" id="hidden-fact-72" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c112" id="hidden-fact-73" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c119" id="hidden-fact-74" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c120" id="hidden-fact-75" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c122" id="hidden-fact-76" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c119" id="hidden-fact-77" name="us-gaap:OperatingExpenses" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c119" id="hidden-fact-78" name="us-gaap:IncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c119" id="hidden-fact-79" name="us-gaap:DepreciationAndAmortization" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c120" id="hidden-fact-80" name="us-gaap:DepreciationAndAmortization" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c119" id="hidden-fact-81" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c120" id="hidden-fact-82" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c122" id="hidden-fact-83" name="us-gaap:CapitalExpenditureDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c0" name="dei:AmendmentFlag">false</ix:nonNumeric>
<ix:nonNumeric contextRef="c0" name="dei:DocumentFiscalPeriodFocus">FY</ix:nonNumeric>
<ix:nonNumeric contextRef="c0" name="dei:EntityCentralIndexKey">0001810467</ix:nonNumeric>
</ix:hidden>
<ix:references><link:schemaRef xlink:href="sntg-20221231.xsd" xlink:type="simple"></link:schemaRef></ix:references>
<ix:resources><ix:relationship fromRefs="ix_0_fact ix_1_fact" toRefs="ix_0_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_2_fact ix_3_fact ix_4_fact ix_5_fact ix_6_fact" toRefs="ix_2_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_7_fact ix_8_fact" toRefs="ix_3_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_9_fact ix_10_fact" toRefs="ix_4_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_11_fact ix_12_fact" toRefs="ix_5_footnote"></ix:relationship>
<xbrli:context id="c0">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c1">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="dei:EntityAddressesAddressTypeAxis">dei:BusinessContactMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c2">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c3">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c4">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c5">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c6">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c7">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c8">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">sntg:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c9">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c10">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c11">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c12">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c13">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c14">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">sntg:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c15">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c16">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c17">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c18">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c19">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">sntg:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c20">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c21">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c22">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c23">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c24">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c25">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">sntg:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c26">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c27">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c28">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c29">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c30">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c31">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c32">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">sntg:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c33">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c34">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c35">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c36">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">sntg:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c37">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c38">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c39">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c40">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">sntg:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c41">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c42">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c43">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis">sntg:OwnershipMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-09-25</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c44">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis">sntg:SentageHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c45">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis">sntg:SentageHongkongLimitedMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c46">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis">sntg:ShanghaiSantengTechnologyCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c47">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis">sntg:DaxinWealthInvestmentManagementShanghaiCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c48">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis">sntg:DaxinZhuohuiFinancialInformationServicesShanghaiCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c49">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis">sntg:QingdaoBuytopPaymentServicesCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c50">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis">sntg:ZhenyiInformationTechnologyShanghaiCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c51">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:ConsolidatedEntitiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c52">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:ConsolidatedEntitiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c53">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:ConsolidatedEntitiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c54">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:ConsolidatedEntitiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c55">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:ConsolidatedEntitiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c56">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c57">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c58">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c59">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c60">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ConsolidatedEntitiesAxis">sntg:VIESubsidiariesMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c61">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
<!-- [WMV5][XcpuxYn59dz7vgYynUDuwG7r97K2jUTysl7vcz0lJt/tSeJz73kx1cLt0ZFF2SK/vxBCY0vdSrZJjANZZ6CJWJuVktLp3wDaRzUCsWgM5PMScVma7d1LMSXf/qp2CADDE2qBHC9WOEsLP9xQ8NE/W2o1pEwaHUytDJJsLX9BWcsHX7QxtAhOaZ6PoMZfQTJ7VqfvZIy0RS1P/IHKm+waqKlWWE0gkiYkLuZC6I+E+bNHZvxp/HHs+OUHX2SvPTWWDehIH5/ZfKyLinF+frpsjacAegQ7XGqO] CSR-->
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ConsolidatedEntitiesAxis">sntg:VIESubsidiariesMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c62">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ConsolidatedEntitiesAxis">sntg:VIESubsidiariesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c63">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ConsolidatedEntitiesAxis">sntg:VIESubsidiariesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c64">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ConsolidatedEntitiesAxis">sntg:VIESubsidiariesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c65">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c66">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c67">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:TransportationEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c68">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:TransportationEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c69">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c70">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:CurrencyAxis">currency:CNY</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c71">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:CurrencyAxis">currency:CNY</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c72">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:CurrencyAxis">currency:USD</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c73">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:CurrencyAxis">currency:USD</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c74">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-07-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c75">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c76">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c77">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c78">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:AutomobilesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c79">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:AutomobilesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c80">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">exch:CGMH</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c81">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">exch:CGMH</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c82">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">exch:CGMH</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c83">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2007-03-01</xbrli:startDate>
    <xbrli:endDate>2007-03-16</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c84">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">sntg:EITLawMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c85">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2016-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c86">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">sntg:QiaolingLuMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c87">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">sntg:QiaolingLuMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c88">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:AccountsReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c89">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:AccountsReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c90">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">sntg:SentageHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-09-02</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c91">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">sntg:SentageHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-09-02</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c92">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">sntg:SentageHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-09-02</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c93">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">sntg:SentageHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-09-02</xbrli:startDate>
    <xbrli:endDate>2020-09-02</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c94">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">sntg:SentageHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-08-10</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c95">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ConsolidatedEntitiesAxis">sntg:SentageWFOEMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">sntg:SentageHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c96">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ConsolidatedEntitiesAxis">sntg:VariableInterestEntityMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c97">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2023-01-01</xbrli:startDate>
    <xbrli:endDate>2023-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c98">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2024-01-01</xbrli:startDate>
    <xbrli:endDate>2024-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c99">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:ConsumerLoanRepaymentAndCollectionManagementServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c100">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:LoanRecommendationServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c101">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:PrepaidPaymentNetworkServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c102">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:AllOtherSegmentsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c103">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:CorporateMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c104">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:ConsumerLoanRepaymentAndCollectionManagementServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c105">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:LoanRecommendationServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c106">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:PrepaidPaymentNetworkServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c107">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:AllOtherSegmentsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c108">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:CorporateMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c109">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:ConsumerLoanRepaymentAndCollectionManagementServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c110">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:LoanRecommendationServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c111">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:PrepaidPaymentNetworkServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c112">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:AllOtherSegmentsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c113">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:CorporateMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c114">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:ConsumerLoanRepaymentAndCollectionManagementServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c115">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:LoanRecommendationServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c116">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:PrepaidPaymentNetworkServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c117">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:AllOtherSegmentsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c118">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:CorporateMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c119">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:ConsumerLoanRepaymentAndCollectionManagementServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c120">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:LoanRecommendationServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c121">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:PrepaidPaymentNetworkServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c122">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:AllOtherSegmentsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c123">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:CorporateMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c124">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:ConsumerLoanRepaymentAndCollectionManagementServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c125">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:LoanRecommendationServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c126">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">sntg:PrepaidPaymentNetworkServicesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c127">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:AllOtherSegmentsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c128">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001810467</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">us-gaap:CorporateMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:unit id="shares">
  <xbrli:measure>xbrli:shares</xbrli:measure>
</xbrli:unit><xbrli:unit id="usd">
  <xbrli:measure>iso4217:USD</xbrli:measure>
</xbrli:unit><xbrli:unit id="usdPershares">
  <xbrli:divide>
    <xbrli:unitNumerator>
      <xbrli:measure>iso4217:USD</xbrli:measure>
    </xbrli:unitNumerator>
    <xbrli:unitDenominator>
      <xbrli:measure>xbrli:shares</xbrli:measure>
    </xbrli:unitDenominator>
  </xbrli:divide>
</xbrli:unit><xbrli:unit id="pure">
  <xbrli:measure>xbrli:pure</xbrli:measure>
</xbrli:unit><xbrli:unit id="cny">
  <xbrli:measure>iso4217:CNY</xbrli:measure>
</xbrli:unit></ix:resources></ix:header>

</div></div></body>
</html>
[{"type": "20-F", "sequence": "1", "filename": "f20f2022_sentageholdings.htm", "description": "ANNUAL REPORT", "secsgml_size_bytes": 1989831}]
{"company-data": {"conformed-name": "Sentage Holdings Inc.", "cik": "0001810467", "assigned-sic": "6199", "irs-number": "000000000", "state-of-incorporation": "E9", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "20-F", "act": "34", "file-number": "001-40580", "film-number": "23875069"}, "business-address": {"street1": "501, PLATINUM TOWER, 233 TAICANG RD", "street2": "HUANGPU", "city": "SHANGHAI", "state": "F4", "zip": "200020", "phone": "86-21 5386 0209"}, "mail-address": {"street1": "501, PLATINUM TOWER, 233 TAICANG RD", "street2": "HUANGPU", "city": "SHANGHAI", "state": "F4", "zip": "200020"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
20-F
☐
REGISTRATION STATEMENT PURSUANT TO SECTION
12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☒
ANNUAL REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended
December 31
,
2022
OR
☐
TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                 
to                 .
OR
☐
SHELL COMPANY REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
Commission file number:
001-40580
Sentage Holdings Inc.
(Exact Name of Registrant as Specified in Its Charter)
N/A
(Translation of Registrant's Name Into English)
Cayman Islands
(Jurisdiction of Incorporation or Organization)
501, Platinum Tower 233 Taicang Road
HuangPu
,
Shanghai City
200001
People's Republic of
China
(Address of Principal Executive Offices)
Qiaoling Lu
Telephone:
+86
-
21 5386 0209
Email:
qllu@sentageholdings.com
At the address of the Company set forth above
(Name, Telephone, Email and/or Facsimile number
and Address of Company Contact Person)
Securities registered or to be registered pursuant
to Section 12(b) of the Act:
Title of Each Class
Trading Symbol
Name of Each Exchange On Which Registered
Ordinary shares, par value US$0.005 per share
SNTG
The
Nasdaq
Stock Market LLC
Securities registered or to be registered pursuant
to Section 12(g) of the Act:
None
(Title of Class)
Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act:
None
(Title of Class)
Indicate the number of outstanding shares of each
of the issuer's classes of capital or common stock as of the close of the period covered by the annual report:
As of December 31, 2022, there were
2,805,325
issued and outstanding ordinary shares, par value US$0.005 per share.
Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    ☐  Yes    ☒
No
If this report is an annual or transition report,
indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934.    ☐  Yes    ☒
No
Indicate by check mark whether the registrant:
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.    ☒
Yes
☐  No
Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    ☒
Yes
☐  No
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "large accelerated filer,"
"accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Emerging growth company
☒
If an emerging growth company that prepares its
financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards† provided pursuant to Section 13 (a) of the
Exchange Act.
☐
†The term "new or revised financial
accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification
after April 5, 2012.
Indicate by check mark whether the registrant
has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accountant firm that prepared or
issued its audit report.
☐
Indicate by check mark which basis of accounting
the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP
☒
International Financial Reporting Standards as issued
by the International Accounting Standards Board ☐
Other     ☐
If "Other" has been checked in response
to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.  ☐  Item 17  ☐  Item 18
If this is an annual report, indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  ☐  Yes
☒
No
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant
has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent
to the distribution of securities under a plan confirmed by a court.  ☐  Yes  ☐  No
TABLE OF CONTENTS
INTRODUCTION
ii
FORWARD-LOOKING INFORMATION
iii
Part I.
ITEM 1.
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
1
ITEM
    2.
OFFER STATISTICS AND EXPECTED TIMETABLE
1
ITEM
    3.
KEY INFORMATION
1
ITEM
    4.
INFORMATION ON THE COMPANY
48
ITEM
    4A.
UNRESOLVED STAFF COMMENTS
92
ITEM
    5.
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
92
ITEM
    6.
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
106
ITEM
    7.
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
112
ITEM
    8.
FINANCIAL INFORMATION
113
ITEM
    9.
THE OFFER AND LISTING
114
ITEM
    10.
ADDITIONAL INFORMATION
114
ITEM
    11.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
129
ITEM
    12.
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
130
Part II.
ITEM
    13.
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
131
ITEM
    14.
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
131
ITEM
    15.
CONTROLS AND PROCEDURES
131
ITEM
    16.
[RESERVED]
133
ITEM 16A.
AUDIT COMMITTEE FINANCIAL EXPERT
133
ITEM
    16B.
CODE OF ETHICS
134
ITEM
    16C.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
134
ITEM
    16D.
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
135
ITEM
    16E.
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
135
ITEM
    16F.
CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
135
ITEM
    16G.
CORPORATE GOVERNANCE
135
ITEM
    16H.
MINE SAFETY DISCLOSURE
136
ITEM
    16I.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
136
Part III.
ITEM
    17.
FINANCIAL STATEMENTS
137
ITEM
    18.
FINANCIAL STATEMENTS
137
ITEM
    19.
EXHIBITS
137
i
INTRODUCTION
We are a holding company incorporated in the Cayman
Islands with no material operations of our own. We are not a Chinese operating company. Investors of our Ordinary Shares do not own any
equity interests in the VIEs (defined below), but instead own shares of a Cayman Islands holding company. Unless otherwise stated, as
used in this annual report and in the context of describing our operations and consolidated financial information, "we," "us,"
the "Company," "Sentage Holdings", or "our company" refers to Sentage Holdings Inc., a Cayman Islands
holding company.
"Sentage Operating Companies" or the
"VIEs" refer, collectively, to Daxin Wealth Investment Management (Shanghai) Co., Ltd. ("Daxin Wealth"), Daxin
Zhuohui Financial Information Services (Shanghai) Co., Ltd. ("Daxin Zhuohui"), Qingdao Buytop Payment Services Co., Ltd. ("Qingdao
Buytop"), and Zhenyi Information Technology (Shanghai) Co., Ltd. ("Zhenyi"), and their subsidiaries, all of which are
limited liability companies organized under the laws of the Peoples Republic of China (the "PRC").  We do not have
any equity interests in the Sentage Operating Companies, but consolidate their financial results in accordance with U.S. GAAP because
we are deemed to have effective control over and be the primary beneficiary of these companies, for accounting purposes only, via a series
of contractual agreements, or the "VIE Agreements", among Sentage WFOE (defined below), the Sentage Operating Companies and
their respective shareholders. However, the VIE Agreements have not been tested in a court of law in China as of the date of this annual
report, and as a result we are subject to various risks.  As advised by our PRC counsel, Beijing Dentons Law Offices, LLP (Fuzhou)
("Dentons"), the VIE structure is not used to provide contractual exposure to foreign investment in China-based companies
where Chinese law prohibits direct foreign investment in the operating companies; rather we use the VIE structure because the Chinese
laws and regulations affecting Sentage Operating Companies' businesses are vague and unclear. Sentage Operating Companies engage
in (i) consumer loan repayment and collection management service, (ii) loan recommendation service, and (iii) prepaid payment network
service. According to "Administrative Measures of People's Bank of China on Payment Services Provided by Non-financial Institutions"
("Order 2") and "People's Bank of China Announcement [2018] No. 7 — Announcement on Matters Relating to
Foreign-funded Payment Organizations" ("Announcement No. 7"), those who engage in prepaid network services business
within China need to go through a special legal approval procedure to obtain third-party payment licenses. Although the People's
Bank of China has loosened the requirements for foreign-invested enterprises to hold third-party payment licenses, the review procedure
is still very strict in practice. At the same time, Chinese authorities have not yet made it clear whether to permit or prohibit foreign-invested
enterprises to engage in prepaid network services, loan collection management and loan recommendation services, and there is a risk that
Chinese authorities may prohibit direct foreign investment of such businesses. For details of the VIE Agreements, see "ITEM 4. C.
Organizational Structure – The VIE Agreements"; and for the risks associated with the VIE Agreements and the VIE structure,
see "ITEM 3D. Risk Factors – Risks Related to Our Corporate Structure".
In this annual report on Form 20-F, except where
the context otherwise requires and for purposes of this annual report only, references to:
●
"China" or the "PRC" are to the People's Republic of China;
●
"Code" are to the U.S. Internal Revenue Code of 1986, as amended;
●
"RMB" and "Renminbi" are to the legal currency of China;
●
"PRC operating entities" are to Sentage WFOE (defined below) and the Sentage Operating Companies;
●
"Sentage HK" are to Sentage Hong Kong Limited, a Hong Kong corporation, which is a wholly owned subsidiary of Sentage Holdings (defined below);
●
"Sentage Holdings" are to Sentage Holdings Inc., an exempted company with limited liability incorporated under the laws of Cayman Islands;
●
"Sentage Operating Companies Shareholders" or "VIEs Shareholders" are to the shareholders of Sentage Operating Companies, or the VIEs;
●
"Sentage WFOE" or "WFOE" are to Shanghai Santeng Technology Co., Ltd., a limited liability company organized under the laws of the PRC, which is wholly owned by Sentage HK;
●
"shares," "Shares," or "Ordinary Shares" are to the ordinary shares of Sentage Holdings, par value $0.005 per share;
●
"US$," "U.S. dollars," and "dollars" are to the legal currency of the United States;
●
"U.S. GAAP" are to generally accepted accounting principles in the United States;
●
"VIE" are to variable interest entity; and
●
"VIE Agreements" are to a series of contractual agreements among Sentage WFOE, Sentage Operating Companies, and Sentage Operating Companies Shareholders.
Our business is conducted by Sentage Operating
Companies, or the VIEs, in the PRC, using RMB, the currency of mainland China. Our consolidated financial statements are presented in
United States dollars. In this annual report, we refer to assets, obligations, commitments and liabilities in our consolidated financial
statements in United States dollars. These dollar references are based on the exchange rate of RMB to United States dollars, determined
as of a specific date or for a specific period. Changes in the exchange rate will affect the amount of our obligations and the value of
our assets in terms of United States dollars which may result in an increase or decrease in the amount of our obligations (expressed in
dollars) and the value of our assets, including accounts receivable (expressed in dollars).
Unless expressly indicated herein to the contrary,
all references to share amounts in this annual report give retroactive effect to share consolidations, the last of which was effected
August 10, 2022.
ii
FORWARD-LOOKING INFORMATION
This annual report contains forward-looking statements
that reflect our current expectations and views of future events. These forward-looking statements are made under the "safe-harbor"
provisions of the U.S. Private Securities Litigation Reform Act of 1995. Known and unknown risks, uncertainties and other factors, including
those listed under "Item 3. Key Information—D. Risk Factors," "Item 5. Operating and Financial Review and Prospects—A.
Operating Results" and "Item 11. Quantitative and Qualitative Disclosures About Market Risk" may cause our actual results,
performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements
involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be
materially different from those expressed or implied by the forward-looking statements.
You can identify some of these forward-looking
statements by words or phrases such as "may," "will," "expect," "anticipate," "aim,"
"estimate," "intend," "plan," "believe," "is/are likely to," "potential,"
"continue" or other similar expressions. We have based these forward-looking statements largely on our current expectations
and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial
needs. These forward-looking statements include statements relating to:
●
assumptions about our future financial and operating results, including revenue, income, expenditures, cash balances, and other financial items;
●
our ability to execute our growth, and expansion, including our ability to meet our goals;
●
current and future economic and political conditions;
●
our capital requirements and our ability to raise any additional financing which we may require;
●
our ability to attract clients and further enhance our brand recognition;
●
our ability to hire and retain qualified management personnel and key employees in order to enable us to develop our business;
●
uncertainty about the further spread of the COVID-19 virus and the impact it may still have on the Company's operations, the demand for the Company's products, global supply chains, and economic activity in general;
●
trends and competition in the consumer loan repayment and collection management, loan recommendation, and third-party payment services industries;
●
our expectations regarding the demand for, and market acceptance of, our services and our brands;
●
general economic and business conditions in the markets in which we operate;
●
relevant government policies and regulations relating to our corporate structure, business and industry; and
●
the assumptions underlying or related to any of the foregoing.
iii
These forward-looking statements involve various
risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations
may later be found to be incorrect. Our actual results could be materially different from our expectations. Other sections of this annual
report include additional factors that could adversely impact our business and financial performance. Moreover, we operate in an evolving
environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk
factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from those contained in any forward-looking statements. You should read thoroughly
this annual report and the documents that we refer to with the understanding that our actual future results may be materially different
from, or worse than, what we expect. We qualify all of our forward-looking statements by these cautionary statements.
The forward-looking statements made in this annual
report relate only to events or information as of the date on which the statements are made in this annual report. Except as required
by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You
should read this annual report and the documents that we refer to in this annual report and exhibits to this annual report completely
and with the understanding that our actual future results may be materially different from what we expect.
Industry Data and Forecasts
This annual report also contains data related
to the consumer loan repayment and collection management, loan recommendation, and third-party payment services industries in China. These
industry data include projections that are based on a number of assumptions which have been derived from industry and government sources
which we believe to be reasonable. The consumer loan repayment and collection management, loan recommendation, and third-party payment
services industries may not grow at the rate projected by industry data, or at all. The failure of these industries to grow as anticipated
is likely to have a material adverse effect on our business and the market price of our Ordinary Shares. In addition, the rapidly changing
nature of the consumer loan repayment and collection management, loan recommendation, and third-party payment services industries subjects
any projections or estimates relating to the growth prospects or future condition of our industries to significant uncertainties. Furthermore,
if any one or more of the assumptions underlying the industry data turns out to be incorrect, actual results may, and are likely to, differ
from the projections based on these assumptions.
This annual report contains information and statistics
relating to China's economy and the industries in which we operate derived from various publications issued by PRC governmental
entities which have not been independently verified by us. The information in such official sources may not be consistent with other information
compiled in or outside China.
iv
PART I.
ITEM 1. IDENTITY OF DIRECTORS, SENIOR
MANAGEMENT AND ADVISERS
Not applicable.
ITEM 2. OFFER STATISTICS AND EXPECTED
TIMETABLE
Not applicable.
ITEM 3. KEY INFORMATION
A.
[Reserved]
B.
Capitalization and Indebtedness
Not applicable.
C.
Reasons for the Offer and Use of Proceeds
Not applicable.
D.
Risk Factors
Summary of Risk Factors
Investing in our Ordinary Shares involves significant
risks. You should carefully consider all of the information in this annual report before making an investment in our Ordinary Shares.
Below please find a summary of the principal risks we face, organized under relevant headings. These risks are discussed more fully in
the section titled "Item 3. Key Information—D. Risk Factors" in this annual report.
Risks Related to Our Corporate Structure
We are also subject to risks and uncertainties
related to our corporate structure, including, but are not limited to, the following:
●
If the PRC government finds that the contractual arrangements that establish the structure for our business operations do not comply with applicable PRC laws and regulations, we could be subject to severe penalties or be forced to relinquish our interests in those operations;
●
We rely on contractual arrangements with the VIEs and their shareholders for our operations in China, which may not be as effective in providing operational control as direct ownership;
●
Substantial uncertainties exist with respect to the interpretation and implementation of any new PRC laws, rules and regulations relating to foreign investment and how they may impact the viability of our current corporate structure, corporate governance and business operations;
1
●
The Sentage Operating Companies Shareholders have potential conflicts of interest with us, which may adversely affect our business and financial condition;
●
Because we rely on the exclusive business cooperation agreement with each of the Sentage Operating Companies for our revenue, the termination of this agreement would severely and detrimentally affect our continuing business viability under our current corporate structure; and
●
Because we are a Cayman island company and all of our business is conducted in the PRC, you may be unable to bring an action against us or our officers and directors or to enforce any judgment you may obtain.
Risks Related to Our Business and Industries
Risks and uncertainties related to our business
and industries include, but are not limited to, the following:
●
We have a limited operating history, which makes it difficult to evaluate our future prospects;
●
The industries we are in are still evolving, which makes it difficult to effectively assess our future prospects;
●
The financial sector in China is subject to changes in regulations. Non-compliance with new financial regulations or new licensing requirements may materially affect our business operations and financial results;
●
The wind-down of our past engagements in the consumer loan repayment and collection management business affected our business operation and financial performance, and we may not be able to expand our customer base by collaborating with third-party financial institutions as we have planned;
●
We operate a socially sensitive business public complaints against the consumer loan repayment and collection management industry generally or against us in particular may materially and adversely affect our business, financial condition and results of operations;
●
If we fail to maintain collaboration with our funding partners, our reputation, results of operations, and financial condition may be materially and adversely affected;
●
Fluctuations in interest rates could negatively affect our loan origination volume;
●
We are dependent on NetsUnion Clearing Corporation, and any changes to its rules or practices could harm our prepaid payment network business;
●
If we fail to implement and maintain an effective system of internal controls, we may be unable to accurately or timely report the results of operations or prevent fraud, and investor confidence and the market price of our securities may be materially and adversely affected; and
●
We may be liable for improper use or appropriation of personal information provided by the customers and any failure to comply with PRC laws and regulations over data security could result in materially adverse impact on our business, results of operations, and our continued listing on Nasdaq.
2
Risks Related to Doing Business in China
Risks and uncertainties related to doing business
in China include, but are not limited to, the following:
●
There are uncertainties under the Foreign Investment Law relating to the status of businesses in China controlled by foreign invested projects primarily through contractual arrangements, such as our business;
●
Changes in China's economic, political, or social conditions or government policies could have a material adverse effect on our business and operations;
●
Uncertainties in the interpretation and enforcement of PRC laws and regulations could limit the legal protection available to you and us;
●
PRC laws and regulations governing our current business operations are sometimes vague and uncertain and any changes in such laws and regulations may impair our ability to operate profitably;
●
You may experience difficulties in effecting service of legal process, enforcing foreign judgments, or bringing actions in China against us or our management named in the reporting based on foreign laws;
●
U.S. regulatory bodies may be limited in their ability to conduct investigations or inspections of our operations in China;
●
Increases in labor costs in the PRC may adversely affect our business and our profitability;
●
PRC regulations relating to offshore investment activities by PRC residents may subject our PRC resident beneficial owners or the PRC operating entities to liability or penalties, limit our ability to inject capital into the PRC Operating Entities, limit the PRC Operating Entities' ability to increase their registered capital or distribute profits to us, or may otherwise adversely affect us;
●
Fluctuations in exchange rates could have a material and adverse effect on our results of operations and the value of your investment;
●
Under the PRC Enterprise Income Tax Law, we may be classified as a PRC "resident enterprise" for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences to us and our non-PRC shareholders and have a material adverse effect on our results of operations and the value of your investment;
●
Our PRC operating entities are subject to restrictions on paying dividends or making other payments to us, which may have a material adverse effect on our ability to conduct our business;
●
We face uncertainty with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies;
●
Governmental control of currency conversion may affect the value of your investment and our payment of dividends;
3
●
There are significant uncertainties under the  PRC Enterprise Income Tax Law relating to the withholding tax liabilities of the PRC Operating Entities, and dividends payable by the PRC operating entities to our offshore subsidiaries may not qualify to enjoy certain treaty benefits;
●
The "Opinions on Severely Cracking Down on Illegal Securities Activities According to Law," or the "Opinions," recently issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council may subject us to additional compliance requirement in the future;
●
Recent greater oversight by the Cyberspace Administration of China ("CAC") over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our business;
●
If we become directly subject to the scrutiny, criticism, and negative publicity involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate and resolve the matter which could harm our business operations, stock price, and reputation;
●
The disclosures in our reports and other filings with the SEC and our other public pronouncements are not subject to the scrutiny of any regulatory bodies in the PRC;
●
The recent joint statement by the SEC and the PCAOB, rule changes by Nasdaq, and the Holding Foreign Companies Accountable Act and related regulations, all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our continued listing or future offerings of our securities in the U.S;
●
We may be unable to complete a business combination transaction efficiently or on favorable terms due to complicated merger and acquisition regulations and certain other PRC regulations;
●
The Chinese government exerts substantial influence over the manner in which we must conduct our business, and may intervene or influence our operations at any time, which could result in a material change in our operations, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of our Ordinary Shares to significantly decline or be worthless; and
●
To the extent cash or assets of our business, or of the PRC Operating Entities, is in the PRC or Hong Kong, such cash or assets may not be available to fund operations or for other use outside of the PRC or Hong Kong, due to interventions in or the imposition of restrictions and limitations by the PRC government to the transfer of cash or assets.
Risks Related to Our Ordinary Shares
Risks and uncertainties related to our Ordinary
Shares include, but are not limited to, the following:
●
We may issue additional Ordinary Shares or other equity securities without your approval, which would dilute your ownership interests and may depress the market price of our Ordinary Shares;
●
We are not expected to pay dividends on our Ordinary Shares in the foreseeable future; and
●
You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we were formed under Cayman Islands law.
4
Risks Related to Our Corporate Structure
If the PRC government finds that the contractual
arrangements that establish the structure for our business operations do not comply with applicable PRC laws and regulations, we could
be subject to severe penalties or be forced to relinquish our interests in those operations.
We operate our business through the VIEs, in which
we do not have equity interests but whose financial results have been consolidated by Sentage Holdings in accordance with U.S. GAAP because
we are deemed to have effective control over and be the primary beneficiary of these companies, for accounting purposes only, via the
VIE Agreements, which have not been tested in a court of law in China. There are uncertainties regarding the interpretation and application
of PRC laws, rules and regulations, including but not limited to the laws, rules and regulations governing the validity and enforcement
of the contractual arrangements between WFOE and the VIEs.
As advised by our PRC counsel, Dentons, if WFOE,
the VIEs, or their ownership structure or the contractual arrangements are determined to be in violation of any existing or future PRC
laws, rules or regulations, or if WFOE or the VIEs, fails to obtain or maintain any of the required governmental permits or approvals,
the relevant PRC regulatory authorities would have broad discretion in dealing with such violations, including:
●
revoking the business and operating licenses of WFOE or the VIEs;
●
discontinuing or restricting the operations of WFOE or the VIEs;
●
imposing conditions or requirements with which we, WFOE, or the VIEs may not be able to comply;
●
requiring us, WFOE, or the VIEs to restructure the relevant ownership structure or operations which may significantly impair the rights of the holders of our Ordinary Shares;
●
restricting or prohibiting our use of the proceeds from our initial public offering to finance our business and operations in China; and
●
imposing fines.
Recently, the PRC government adopted a series
of regulatory actions and issued statements to regulate business operations in China, including those related to variable interest entities.
There are currently no relevant laws or regulations in the PRC that prohibit companies whose entity interests are within the PRC from
listing on overseas stock exchanges. Although we believe that our corporate structure and contractual arrangements comply with current
applicable PRC laws and regulations, in the event that PRC government determines that the contractual arrangements constituting part of
our VIE structure do not comply with PRC regulations, or if these regulations change or are interpreted differently in the future, we
may be unable to asset our contractual rights over the assets of the VIEs and their subsidiaries, and our Ordinary Shares may decline
in value or become worthless. The VIE Agreements have not been tested in a court of law in China as of the date of this annual report.
5
We rely on contractual arrangements with
the VIEs and their shareholders for our operations in China, which may not be as effective in providing operational control as direct
ownership.
A substantial part of our current revenue and
net income is derived from the Sentage Operating Companies. We do not have an equity interest in any of the Sentage Operating Companies
but their financial results have been consolidated by us in accordance with U.S. GAAP, due to us being deemed to have effective control
over, and be the primary beneficiary of, these companies for accounting purposes, via the VIE Agreements, which VIE Agreements have not
been tested in a court of law in China. The VIE Agreements may not be as effective in providing us with the necessary control over the
Sentage Operating Companies and their operations. Any deficiency in these VIE Agreements may result in our loss of control over the management
and operations of the Sentage Operating Companies, which will result in a significant loss in the value of an investment in our company.
We rely on contractual rights through the VIE Agreements to effect control over and management of the Sentage Operating Companies, which
exposes us to the risk of potential breach of contract by the Sentage Operating Companies Shareholders.
As all of the VIE agreements with the Sentage
Operating Companies are governed by PRC laws and provide for the resolution of disputes through arbitration in the PRC, they would be
interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. Disputes arising from
these VIE agreements between us and any of the Sentage Operating Companies will be resolved through arbitration in the PRC, although these
disputes do not include claims arising under the United States federal securities law and thus do not prevent you from pursuing claims
under the United States federal securities law. The legal environment in the PRC is not as developed as in the United States. As a result,
uncertainties in the PRC legal system could further limit our ability to enforce these VIE agreements, through arbitration, litigation,
and other legal proceedings in the PRC, which could limit our ability to exert effective control over the Sentage Operating Companies.
Furthermore, these contracts may not be enforceable in the PRC if the PRC government authorities or courts take a view that such contracts
contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event we are unable to enforce
these VIE agreements, we may not be able to exert effective control over the Sentage Operating Companies, and our ability to conduct our
business through the operating entities may be materially and adversely affected.
Substantial uncertainties exist with respect
to the interpretation and implementation of any new PRC laws, rules and regulations relating to foreign investment and how they may impact
the viability of our current corporate structure, corporate governance and business operations.
On March 15, 2019, the National People's
Congress promulgated the Foreign Investment Law, which came into effect on January 1, 2020 and replaced the three existing laws regulating
foreign investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint
Venture Enterprise Law and the Wholly Foreign-invested Enterprise Law, together with their implementation rules and ancillary regulations.
The existing foreign-invested enterprises, or FIEs, established prior to the effectiveness of the Foreign Investment Law may keep
their corporate forms within five years. The Foreign Investment Law stipulates that China implements the management system of pre-establishment national
treatment plus a negative list to foreign investment, and the government generally will not expropriate foreign investment, except under
certain special circumstances, in which case it will provide fair and reasonable compensation to foreign investors. Foreign investors
are barred from investing in prohibited industries on the negative list and must comply with the specified requirements when investing
in restricted industries on such list. As of the date of this annual report, according to our PRC counsel, Dentons, our business and industry
are not on the negative list, and our VIE structure is not implemented to avoid direct foreign investment in the prohibited fields, but
to protect the Company, its subsidiaries and VIEs from uncertainties and risks related to China's policy on foreign investments
in Sentage Operating Companies' line of businesses. On December 26, 2019, the State Council promulgated the Implementing Regulations
of the Foreign Investment Law, which came into effect on January 1, 2020 and further requires that FIEs and domestic enterprises
be treated equally with respect to policy making and implementation.
Pursuant to the Foreign Investment Law, "foreign
investment" means any foreign investor's direct or indirect investment in the PRC, including: (i) establishing FIEs in the
PRC either individually or jointly with other investors; (ii) obtaining stock shares, stock equity, property shares, other similar interests
in Chinese domestic enterprises; (iii) investing in new project in the PRC either individually or jointly with other investors; and
(iv) making investment through other means provided by laws, administrative regulations or State Council of the PRC (the "State
Council") provisions. Although the Foreign Investment Law does not explicitly classify the contractual arrangements, such as our
contractual arrangement described in "Item 4. Information on the Company—C
.
Organizational Structure," as a form
of foreign investment, it contains a catch-all provision under the definition of "foreign investment," which includes
investments made by foreign investors in China through other means stipulated by laws or administrative regulations or other methods prescribed
by the State Council without elaboration on the meaning of "other means." However, the Implementing Regulations of the Foreign
Investment Law still do not specify whether foreign investment includes contractual arrangements.
6
It is possible that future laws, administrative
regulations or provisions prescribed by the State Council may regard contractual arrangements as a form of foreign investment, at which
time it will be uncertain whether the contractual arrangements will be deemed to be in violation of the foreign investment access requirements
and how the above-mentioned contractual arrangements will be handled. Therefore, there is no guarantee that the contractual arrangements
and the business of our operating entities will not be materially and adversely affected in the future due to changes in the PRC laws
and regulations. Furthermore, if future laws, administrative regulations or provisions prescribed by the State Council mandate further
actions to be completed by companies with existing contractual arrangements, we may face substantial uncertainties as to the timely completion
of such actions. In the extreme case scenario, we may be required to unwind the contractual arrangements and/or dispose of the VIEs and
their subsidiaries, which could have a material and adverse effect on our business, financial conditions and results of operations.
The Sentage Operating Companies Shareholders
have potential conflicts of interest with us, which may adversely affect our business and financial condition.
The Sentage Operating Companies Shareholders may
have potential conflicts of interest with us. These shareholders may not act in the best interest of Sentage Holdings or may breach, or
cause Sentage Operating Companies to breach, the existing VIE Agreements we have with them and the Sentage Operating Companies, which
would have a material and adverse effect on our ability to effectively control the Sentage Operating Companies and receive economic benefits
from them. For example, the shareholders may be able to cause our agreements with the Sentage Operating Companies to be performed in a
manner adverse to us by, among other things, failing to remit payments due under the VIE Agreements to us on a timely basis. We cannot
assure you that when conflicts of interest arise, any or all of these shareholders will act in the best interests of us or such conflicts
will be resolved in our favor.
Currently, we do not have any arrangements to
address potential conflicts of interest between the Sentage Operating Companies Shareholders and us, except that we could exercise our
purchase option under the exclusive purchase option agreements with these shareholders to request them to transfer all of their equity
interests in the Sentage Operating Companies to a PRC entity or individual designated by us, to the extent permitted by PRC law. If we
cannot resolve any conflicts of interest or disputes between us and those individuals, we would have to rely on legal proceedings, which
may materially disrupt our business. There is also substantial uncertainty as to the outcome of any such legal proceeding.
Because we rely on the exclusive business
cooperation agreement with each of the Sentage Operating Companies for our revenue, the termination of this agreement would severely and
detrimentally affect our continuing business viability under our current corporate structure; and
We are a holding company and a substantial part
of our business operations are conducted through the VIE Agreements. As a result, we currently rely on the assumption that we will continue
to generate revenue from dividends payments from Sentage WFOE upon its receipt of payments from each of the Sentage Operating Companies
pursuant to the exclusive business cooperation agreement. The term of the exclusive business cooperation agreement remains effective unless
the agreement is explicitly terminated by Sentage WFOE through written form or other means specified therein. None of the Sentage Operating
Companies has the right to terminate that agreement unilaterally. Because neither we nor our subsidiaries own equity interests of the
Sentage Operating Companies, the termination of the exclusive business cooperation agreement would sever our ability to continue receiving
payments from the Sentage Operating Companies under our current holding company structure. While we are currently not aware of any event
or reason that may cause the business cooperation agreement to terminate, we cannot assure you that such an event or reason will not occur
in the future. In the event that the exclusive business cooperation agreement is terminated, this may have a severe and detrimental effect
on our viability under our current corporate structure, which, in turn, may affect the value of your investment.
Because we are a Cayman Island company and
all of our business is conducted in the PRC, you may be unable to bring an action against us or our officers and directors or to enforce
any judgment you may obtain.
We are incorporated in the Cayman Islands and
conduct our operations primarily in China. Substantially all of our assets are located outside of the United States. In addition, all
of our directors and officers reside outside of the United States. As a result, it may be difficult or impossible for you to bring an
action against us or against these individuals in the United States in the event that you believe we have violated your rights, either
under United States federal or state securities laws or otherwise, or if you have a claim against us. Even if you are successful in bringing
an action of this kind, the laws of the Cayman Islands and of China may not allow you to enforce a judgment against our assets or the
assets of our directors and officers. See "Enforceability of Civil Liabilities."
7
The VIE Agreements among Sentage WFOE and
each of the Sentage Operating Companies may result in adverse tax consequences.
PRC laws and regulations emphasize the requirement
of an arm's length basis for transfer pricing arrangements between related parties. The laws and regulations also require enterprises
with related party transactions to prepare transfer pricing documentation to demonstrate the basis for determining pricing, the computation
methodology, and detailed explanations. Related party arrangements and transactions may be subject to challenge or tax inspection by the
PRC tax authorizes
Under a tax inspection, as advised by our PRC
counsel, Dentons, if our transfer pricing arrangements among Sentage WFOE and each of the Sentage Operating Companies are judged to be
tax avoidance vehicles, or related documentation does not meet the requirements, Sentage WFOE and each of the Sentage Operating Companies
may be subject to material adverse tax consequences, such as transfer pricing adjustment. A transfer pricing adjustment could result in
a reduction, for PRC tax purpose, of adjustments recorded by Sentage WFOE, which could adversely affect us by (i) increasing Sentage Operating
Companies' tax liabilities without reducing our subsidiaries' tax liabilities, which could further result in interest being
levied to us for unpaid taxes; (ii) limiting the ability of our PRC companies to maintain preferential tax treatment and other financial
incentives; or (iii) the PRC tax authorities may impose late payment fees and other penalties on a Sentage Operating Company for the adjusted
but unpaid taxes according to the applicable regulations.
We rely on the approvals, certificates and
business licenses held by the Sentage Operating Companies and any deterioration of the relationship between Sentage WFOE and any of the
Sentage Operating Companies could materially and adversely affect our overall business operations.
Pursuant to the VIE Agreements, a substantial
part of our business in the PRC will be undertaken on the basis of the approvals, certificates, business licenses, and other requisite
licenses held by each of the Sentage Operating Companies. There is no assurance that all the Sentage Operating Companies will be able
to renew their approvals, licenses or certificates when their terms expire with substantially similar terms as the ones they currently
hold.
Further, our relationship with each of the Sentage
Operating Companies is governed by the VIE Agreements, which are intended to provide us, through our indirect ownership of Sentage WFOE,
with effective control over the business operations of each of the Sentage Operating Companies. However, the VIE Agreements may not be
effective in providing control over the applications for and maintenance of the licenses required for our business operations. Each of
the Sentage Operating Companies could violate the VIE Agreements, go bankrupt, suffer from difficulties in its business, or otherwise
become unable to perform its obligations under the VIE Agreements and, as a result, our operations, reputation, business, and stock price
could be severely harmed.
If any of our operating entities becomes
the subject of a bankruptcy or liquidation proceeding, we may lose the ability to use and enjoy assets held by such entity, which could
materially and adversely affect our business, financial condition and results of operations.
We currently conduct our operations in China through
contractual arrangements with the Sentage Operating Companies and the Sentage Operating Companies Shareholders. As part of these arrangements,
most of our assets that are important to the operation of our business are held by the Sentage Operating Companies. If any of these entities
goes bankrupt and all or part of their assets become subject to liens or rights of third-party creditors, we may be unable to continue
some or all of our business activities, which could materially and adversely affect our business, financial condition and results of operations.
If any of our operating entities undergoes a voluntary or involuntary liquidation proceeding, its equity owners or unrelated third-party
creditors may claim rights relating to some or all of these assets, which would hinder our ability to operate our business and could materially
and adversely affect our business, our ability to generate revenue and the market price of our Ordinary Shares.
PRC regulation of loans and direct investment
by offshore holding companies to PRC entities may delay or prevent us from using financing activities to make loans or additional capital
contributions to the PRC operating entities and operating entities, which could harm our liquidity and our ability to fund and expand
our business.
8
As an offshore holding company of the PRC Operating
Entities, we may (i) make loans to the PRC Operating Entities, (ii) make additional capital contributions to the PRC Operating Entities,
(iii) establish new PRC subsidiaries and make capital contributions to these new PRC subsidiaries, and (iv) acquire offshore entities
with business operations in China in an offshore transaction. However, most of these uses are subject to PRC regulations and approvals.
For example:
●
loans by us to our wholly-owned subsidiary in China, which is a foreign-invested enterprise, cannot exceed statutory limits and must be registered with the State Administration of Foreign Exchange of the PRC, or SAFE, or its local counterparts; and
●
loans by us to our operating entities, which are domestic PRC entities, over a certain threshold must be approved by the relevant government authorities and must also be registered with SAFE or its local counterparts.
In addition, on August 29, 2008, SAFE promulgated
Circular 142, a notice regulating the conversion by a foreign-invested company of its capital contribution in foreign currency into Renminbi.
The notice requires that the capital of a foreign-invested company settled in Renminbi converted from foreign currencies shall be used
only for purposes within the business scope as approved by the applicable governmental authorities. Such loan may not be used for equity
investments within the PRC unless such activity is set forth in the business scope or is otherwise permissible under PRC laws or regulations.
In addition, SAFE strengthened its oversight of the flow and use of such capital of a foreign-invested company settled in Renminbi converted
from foreign currencies. The use of such Renminbi capital may not be changed without SAFE's approval, and may not in any case be
used to repay Renminbi loans if the proceeds of such loans have not otherwise been used. Violations of Circular 142 will result in severe
penalties including heavy fines. In order to further reform the foreign exchange administration system, SAFE issued the Circular on Reform
of Administration Model of the Settlement of Foreign Currency Capital of Foreign-Invested Enterprises on March 30, 2015, or Circular 19,
which took effect from June 1, 2015 and replaced the SAFE Circular 142. Circular 19 allows foreign invested enterprises to settle their
foreign exchange capital on a discretionary basis according to the actual needs of their business operations and provides procedures by
which a foreign-invested company may convert and use equity investments made in foreign currencies. Circular 19 also reiterates, however,
the principle that Renminbi converted from the foreign currency-denominated capital of a foreign-invested company may not be used, either
directly or indirectly, for purposes beyond its business scope.
Furthermore, SAFE has promulgated Notice of the
State Administration of Foreign Exchange on Policies for Reforming and Regulating the Control over Foreign Exchange Settlement under the
Capital Account, on June 9, 2016, hereinafter referred to as Circular 16, which emphasizes the unified policies for discretionary settlement
of foreign exchange receipts under the capital account by domestic institutions. Circular 16 also reiterated the principle that Renminbi
converted from the foreign currency-denominated capital of a foreign-invested company may not be used, either directly or indirectly,
for purposes beyond the company's business scope. Circular 16 requires SAFE's local counterparts to unify and regulate the
control over discretionary settlement and payment of foreign exchange receipts under the capital account, with the purpose of better serving
and facilitating domestic enterprises' needs in business and capital operations. Circular 16 stipulates that a domestic enterprise,
when using its capital account foreign exchange income and Renminbi funds obtained from foreign exchange settlements, shall abide by the
principle of truthfulness and only apply such funds for use in its own operations, and will comply with the following: (1) such receipts
and funds shall not, directly or indirectly, be used for the expenditures beyond the business scope of domestic institutions or the expenditures
prohibited by laws and regulations of the State; (2) unless otherwise provided, such receipts and funds shall not, directly or indirectly,
be used for investment in securities or other investments than banks' principal-secured products; (3) such receipts and funds shall
not be used for the granting of loans to non-affiliated enterprises, with the exception that such granting is expressly permitted in the
business license; and (4) such receipts and funds shall not be used for construction or purchase of real estate for purpose other than
self-use (subject to certain exceptions for real estate enterprises).
We expect that PRC laws and regulations may continue
to limit our use of proceeds from financing sources. We cannot assure you that we will be able to obtain these government registrations
or approvals on a timely basis, if at all, with respect to future loans or capital contributions by us to our entities in China. If we
fail to receive such registrations or approvals, our ability to capitalize our PRC operations may be negatively affected, which could
adversely affect our liquidity and our ability to fund and expand our business.
9
Risks Related to Our Business and Industries
We have a limited operating history, which
makes it difficult to evaluate our future prospects
.
Through Sentage Operating Companies, we launched
our (i) consumer loan repayment and collection management business in 2015, (ii) loan recommendation business in June 2019, and (iii)
prepaid payment network business in August 2019. We only have a limited operating history. Members of our management team have been working
together only for a short period of time and are still in the development period. They may still be in the process of exploring approaches
to running our company and reaching consensus among themselves, which may affect the efficiency and results of our operation.
We have limited experience in most aspects of
our business operation, such as service and product offerings, credit assessment, risk management, and the development of long-term relationships
with borrowers, funding partners, and other business partners. As our businesses develop or in response to competition, we may continue
to introduce new products and services, adjust our existing product and service profile, or make changes to our business operation in
general. Any significant change to our business model may have a material and adverse impact on our financial condition and results of
operations. It is therefore difficult to effectively assess our future prospects.
Furthermore, in addition to our existing product
services and offerings, we may also from time to time explore other growth opportunities, such as broadening our customer base across
all three business lines and seek strategic partnerships to enter new markets that are complementary to our existing business lines. These
initiatives may have different impacts on our operation, including cannibalization of existing services. Failure to manage our expansion
may have an unexpected material effect on our financial condition and results of operation.
The industries we are in are still evolving, which makes it difficult
to effectively assess our future prospects.
The industries in which we operate through Sentage
Operating Companies, including the consumer loan repayment and collection management industry, loan recommendation industry, and the third-party
payment services industry in the PRC are still in evolving stages. The regulatory framework for these industries remains uncertain for
the foreseeable future. Many market players in these industries, including us, are inexperienced in responding to changes of market situations
effectively and keeping the growth of business steadily when the industries enter a different stage. We may not be able to sustain our
historical growth rate in the future.
You should consider our business and prospects
in light of the risks and challenges we encounter or may encounter given the rapidly evolving markets in which we operate and our limited
operating history. These risks and challenges include our ability to, among other things:
●
offer competitive product and services;
●
broaden our prospective customer bases across three business lines;
●
increase the utilization of our products and services by existing customers as well as new customers;
●
maintain and enhance our relationship and business collaboration with our partners, including, but not limited to, developing cooperative relationships with new funding partners to provide borrowers with sufficient, diversified, and cost-effective funding options and maintaining strategic partnerships with NetsUnion Clearing Corporation, or NetsUnion;
10
●
navigate a complex and evolving regulatory environment in China;
●
improve our operational efficiency;
●
attract, retain and motivate talented employees to support our business growth;
●
enhance our technology infrastructure to support the growth of our business, maintain the security of our systems, and safeguard the confidentiality of the information provided and utilized across our systems;
●
navigate economic conditions and fluctuation; and\or
●
defend ourselves against legal and regulatory actions, such as actions involving intellectual property or privacy claims.
The financial sector in China is subject
to changes in regulations. Non-compliance with new financial regulations or new licensing requirements may materially affect our business
operations and financial results.
The Company's operations are subject to
evolving regulatory oversight by the Chinese governmental and local regulatory authorities. As the Chinese financial sector grows, applicable
laws, rules, and regulations are evolving. Any changes in laws and regulations applicable to our operations may increase our cost of compliance
or may force us to revise our business plan or cease some aspects of our operations. If we fail to continuously comply with applicable
rules and regulations, we may face fines or restrictions on our business activities, or even a suspension of all or part of our business
operations. Furthermore, the Chinese governmental and local authorities may institute new licensing requirements applicable to our current
or future operations. If such licensing requirements were introduced, we cannot assure you that we would be able to obtain any newly required
license promptly, or at all, which could materially and adversely affect our business.
The wind-down of our past engagements in
the consumer loan repayment and collection management business affected our business operation and financial performance, and we may not
be able to expand our customer base by collaborating with third-party financial institutions as we have planned.
Our existing loan repayment
and collection management engagements were completed by the end of 2021, and no related revenue was generated in fiscal year 2022. With
a team of experienced loan management professionals, the Company plans to continue its consumer loan repayment and collection management
business by expanding its client base and collaborating with third-party financial institutions. However, we cannot guarantee the success
of such business plan. Although we believe that we can engage new clients and continue our consumer loan repayment and collection management
business successfully, there can be no assurance that such will be the case and we have not been able to execute our plan as of the date
of this annual report.
11
We operate a socially sensitive business.
Public complaints against the consumer loan repayment and collection management industry generally or against us in particular may materially
and adversely affect our business, financial condition and results of operations.
The general public may have certain misconceptions
about the consumer loan repayment and collection management industry, such as the perceived use of unlawful means to collect debts. Given
the growth of collection service providers in China, the contentious nature associated with debt collection, the unpredictability of borrower
behavior, and the inflow of small-scale market participants with weak compliance protocols, the consumer loan repayment and collection
management industry is subject to potentially higher and unpredictable government scrutiny. Such development could subject our operations
to regulatory restrictions, government investigations, administrative fines, and increased compliance requirements. As a result, our business
and our ability to generate revenue could be materially and adversely affected.
Furthermore, negative publicity about our industry
and business creates the possibility of heightened attention from the public, the media and government regulators. From time to time,
complaints or allegations against us, regardless of their veracity, may result in negative publicity, which in turn could result in government
inquiry or reputational harm. There is no assurance that we would not become a target for public scrutiny in the future or such scrutiny
and public exposure would not severely damage our reputation, business, and prospects. Furthermore, we rely heavily on our reputation
to develop and maintain client relationships. Our prospective clients, including commercial banks, may refuse to work with us if we suffer
from a tarnished reputation, since any perceived or actual violation of laws and regulations by service providers could increase our clients'
regulatory risks. As such, our business is particularly vulnerable to negative media coverage and negative publicity.
In addition, our directors and management may
become subject to scrutiny by the media and the public regarding our business, which may result in unverified, inaccurate or misleading
information about our directors and management being reported by the press. Negative publicity about our directors or management, even
if untrue or inaccurate, may harm our reputation.
12
If the scale and growth of our loan recommendation
business are restrained by PRC laws and regulations, our business, financial condition, and prospects would be materially and adversely
affected.
As part of our business model, we provide recommendation
services to funding partners under our loan recommendation business, which allow funding partners to access borrowers who have passed
our risk assessment. The funding partners make the final credit decision based on their own credit assessment and are also in charge of
funding and servicing the loans. See "Business—Loan Recommendation" for details.
Under the current PRC regulatory regime, the legal
definition and regulatory principles of loan recommendation services and specific regulatory requirements regarding the services have
not been clarified in any relevant promulgated laws or regulations. However, in light of the evolving and developing nature of the regulatory
regime regarding loan recommendation services in China, it is probable that the Chinese government will adopt regulations and policies
that may temporarily restrain the scale and growth of our loan recommendation services in the future. For more details, see "Regulations—Regulations
on Loan Recommendation Services."
Conditions that negatively impact the real
estate market in China may affect the loan amount borrowers may receive from funding partners, reduce demand for the operating entities'
loan recommendation business, and adversely impact their business, results of operations, and financial condition.
We only recommend borrowers who are able to collateralize
properties evaluated and approved by our dedicated team of experienced professionals. The borrowers who have used our loan recommendation
services are primarily owners of residential properties in Shanghai City, China. Accordingly, the success of our business is closely tied
to the conditions of the real estate market segment in which these borrowers are located. Various changes in real estate conditions may
impact this market segment. Any negative trends in such real estate conditions may affect the loan amount borrowers may receive from funding
partners, the demand for our recommendation services, the accuracy of our property valuation and, as a result, adversely affect our results
of operations. These conditions include:
●
oversupply of, or a reduction in demand for, residential properties;
●
zoning, rent control or stabilization laws, or other laws regulating the real estate market segment;
●
changes in the national and local tax code related to real estate;
●
increased operating costs, including increased real property taxes, maintenance, insurance, and utilities costs; and
●
potential liability under environmental and other laws.
Any or all of these factors could negatively impact
the real estate market segment and, as a result, reduce the demand for loans provided by our funding partners or the terms on which they
are able to make loans and, as a result, materially and adversely affect us.
Fraudulent activity could negatively impact
our operating results, brand, and reputation, and cause the use of our loan recommendation services to decrease.
We are subject to the risk of fraudulent activity
associated with borrowers and parties handling borrower or funding partner information. Our resources, technologies and fraud detection
tools may be insufficient to accurately detect and prevent fraud. Even if we identify a fraudulent borrower and reject her loan recommendation
application, such borrower may re-apply by using fraudulent information. We may fail to identify such behavior, despite our measures to
verify personal identification information provided by borrowers. Furthermore, we may not be able to recoup funds underlying transactions
made in connection with fraudulent activities. A significant increase in fraudulent activities could negatively impact our brands and
reputation, discourage funding partners from collaborating with us, reduce the total amount of loans originated by funding partners, and
lead us to take additional steps to reduce fraud risk, which could increase our costs. High profile fraudulent activity could even lead
to regulatory intervention and may divert our management's attention and cause us to incur additional expenses and costs. Although
we have not experienced any material business or reputational harm as a result of fraudulent activities in the past, we cannot rule out
the possibility that fraudulent activities may materially and adversely affect our business, financial condition, and results of operations
in the future.
13
We rely on our risk management model in
assessing the creditworthiness of borrowers, the value of collateralized property, and risks associated with loans. If our risk management
approach is ineffective, or if we otherwise fail or are perceived to fail to manage the impact of default, our reputation and market share
would be materially and adversely affected, which would severely impact our business and results of operations.
Our ability to attract borrowers and funding partners
to, and build trust in, our loan recommendation business is significantly dependent on our ability to effectively evaluate borrowers'
credit profiles, the likelihood of default, and the value of borrowers' collateralized properties. We have devised and implemented
a systematic credit assessment model and an asset-driven, disciplined risk management approach to minimize a borrower's default
risk and mitigate the impact of default. Specifically, our assessment model and risk management capabilities not only enable us to select
high-quality borrowers whose financial conditions and personal background are satisfactory to us, but also protect our funding partners
against lending more than they might be able to recover in the case of default. For details on our credit assessment and risk management
approach, see "Business—Loan Recommendation—Credit Assessment and Risk Management."
During the risk management process, appraisals
are obtained on the collateral underlying each prospective mortgage. Although we have adopted internal measures to guide the appraisal
process and conducted internal review for each appraisal opinion, the quality of these appraisals may vary widely in accuracy and consistency.
The appraiser may feel pressure to provide an appraisal in the amount necessary to enable funding partners to make the loan, whether or
not the value of the property justifies such an appraised value. Inaccurate or inflated appraisals may result in an increase in the severity
of losses on the mortgage loans, which could have a material and adverse effect on our reputation, business, and results of operations.
There can be no assurance that our risk management
measures will allow us to identify or appropriately assess whether the interest and principal payments due on a loan will be repaid when
due, or at all, or whether the value of the mortgaged property will be sufficient to otherwise provide for recovery of such amounts. Our
risk management measures are narrower than some of our competitors because we give primary consideration to the adequacy of the property
as collateral rather than focusing on the personal income of the borrower. For example, while we have adopted a multifactor selection
process, there is no minimum credit score that a potential borrower must have in order to obtain a recommendation from us. Although we
believe that this asset-driven approach is one of our competitive advantages, it may result in higher delinquency and default rates than
those experienced by our competitors with broader risk management measures and/or those who require minimum credit scores. Furthermore,
if we are unable to identify delinquency, default, and other fraud risks of the borrower through our risk management measures, although
we are not legally responsible for such risks, they may still expose us to reputational harm, reduce our industry credibility, and adversely
affect our business.
On a case by case basis, our in-house credit assessment
team may determine that a prospective borrower that does not strictly qualify under our internal guidelines warrants a recommendation
exception, based upon compensating factors. Compensating factors may include, but are not limited to, higher borrower net worth or liquidity,
stable employment, longer length of time in business and length of time owning the property. If our funding partners lend loans to these
borrowers recommended by us, it may result in a higher number of delinquencies and defaults.
We also rely on analytical models (both models
developed by us and those supplied by third parties) and information and data (both generated by us and supplied by third parties). Models
and data will be used to make projections on borrowers' ability to repay loans and estimate value of collateralized properties.
When models and data prove to be incorrect, misleading or incomplete, any decisions made in reliance thereon expose us to potential risks.
Some of the analytical models we use, such as mortgage default models, are predictive in nature. The use of predictive models has inherent
risks. For example, such models may incorrectly forecast future behavior, leading to volatility in results. In addition, the predictive
models used by us may differ substantially from those models used by our competitors.
If any of the foregoing were to occur in the future,
our funding partners may try to rescind their affected investments or decide not to invest in loans, or borrowers may seek to revise the
terms of their loans or reduce the use of our services, and our reputation and market share would be materially and adversely affected,
which would severely impact our business and results of operations.
14
We rely on our risk management team to establish
and execute our risk management policies. If our risk management team or key members of such team were unable or unwilling to continue
in their present positions, our business may be severely disrupted.
We rely on our risk management team to continuously
adjust our property valuation method, which is the center of our risk management policies. We rely on our risk management team to spot
and fix potential errors and flaws in our property valuation method. Meanwhile, the primary mortgage market in China changes fast and
we may need to adjust our risk management principles from time to time to minimize borrowers' default rate while securing a stable
increase in the number of borrowers and satisfying returns for our funding partners. We rely on our risk management team to closely monitor
the change in the market and our business and update our risk management principles accordingly. If our risk management team or key members
of such team were unable or unwilling to continue in their present positions, we may have to incur additional time and monetary cost to
find a replacement to our risk management team that fits us, and our result of business operation and financial conditions may be adversely
and severely impacted.
Credit and other information we receive
from third parties about borrowers may be inaccurate or may not accurately reflect the borrower's creditworthiness, which may compromise
the accuracy of our credit assessment.
For credit assessment purposes, we obtain certain
information of the prospective borrowers from prospective borrowers directly and some information from third parties. For more details
on our information collection measures, see "Business—Loan Recommendation—Credit Assessment and Risk Management—Information
Collection, Verification, and Fraud Detection." Such information may not be complete, accurate, or reliable. Our credit assessment
may not reflect that particular borrower's actual creditworthiness because the assessment may be based on outdated, incomplete,
or inaccurate borrower information. We currently cannot accurately determine whether borrowers have outstanding loans at the time they
apply for loans through the use of recommendation services even though we have adopted compliance processes. This creates the risk that
a borrower may borrow money through our services in order to pay off loans they have obtained through other funding sources and vice versa.
If a borrower incurs additional debt before fully repaying any loan such borrower takes out with our funding partner, the additional debt
may impair the ability of that borrower to make repayments on her loan with the funding partner. In addition, the additional debt may
adversely affect the borrower's creditworthiness generally and could result in the financial distress or insolvency of the borrower.
As a result, we may incur reputational harm and lose potential or existing business opportunities with our funding partners.
Meanwhile, if the price of the quality data increases,
we may not get access to the quality information at the same cost in the future. We may be forced to conduct credit assessment with less
quality data or pay more for quality information in the future, which could adversely affect our business, financial conditions, and result
of the operation.
If we are unable to maintain or increase
the overall loan volume, if we are unable to retain existing borrowers or attract new borrowers, or if we fail to meet the financial needs
of borrowers as they evolve and are therefore unable to capture their long-term growth potential, our loan recommendation business and
results of operations will be adversely affected.
To maintain or grow our loan recommendation business,
we must continuously increase the loan volume by retaining current borrowers and attracting additional borrowers. We intend to continue
to dedicate significant resources to our borrower acquisition efforts. If there are insufficient qualified loan requests, our funding
partners may consider withdrawing from our collaboration, which may result in borrowers being unable to obtain capital through our recommendation
services and turning to other sources for their borrowing needs.
The overall loan volume may be affected by several
factors, including our brand recognition and reputation, the interest rates offered to borrowers relative to the market rates, the efficiency
of our credit assessment process, availability of our funding partners, the macroeconomic environment, and other factors. In connection
with the introduction of new services or response to general economic conditions, we may also impose more stringent borrower qualifications
to ensure the quality of our recommended borrowers, which may negatively affect the growth of loan volume.
15
If any of our current user acquisition channels
become less effective, if we are unable to continue to use any of these channels or if we are not successful in using new channels, we
may not be able to attract new borrowers in a cost-effective manner or convert potential borrowers into active borrowers, and may even
lose our existing borrowers to our competitors. If we are unable to attract qualified borrowers or if borrowers do not continue to use
our recommendation services at the current rates, we might be unable to increase loan volume as we expect, and our business and results
of operations may be adversely affected.
Some borrowers may use our loan recommendation
services through business contacts, which could expose us to risks associated with such third parties.
Some borrowers are referred to us after receiving
and reviewing the information provided by a third party. We do not verify, validate or modify any information provided by third-party
websites and, while we do not believe we would have liability for such information, it is possible that an unsatisfied borrower could
bring claims against us based on such information. Such claims could be costly and time-consuming to defend and would distract management's
attention from the operation of our business and create negative publicity, which could harm our business and affect our reputation. In
addition, if the business operation of such third parties deteriorate, the unsatisfied borrowers may associate our company with such third
parties, which could harm our business and negatively affect our reputation.
If we fail to maintain collaboration with
our funding partners, our reputation, results of operations, and financial condition may be materially and adversely affected.
Our funding partners typically agree to provide
funding to borrowers who meet their predetermined criteria, subject to their credit approval process. While borrowers' loan requests
are usually approved if they fall within the parameters set and agreed upon by us and our funding partners, our funding partners may implement
additional requirements in their approval process outside of our capacity to monitor and control. Thus, there is no assurance that our
funding partners could provide reliable, sustainable and adequate funding, either because they could decline to fund borrowers recommended
by us or decline to continue consider qualified borrowers recommended by us.
In addition, if PRC laws and regulations impose
more restrictions on our collaboration with funding partners, these funding partners will become more selective in choosing business partners
for recommendation services, which may drive up the competition among loan recommendation service providers. If our funding partners,
which mainly consist of national and regional banks, are restricted from funding loans to borrowers recommended by us in any sense, it
may adversely affect our results of operations. Furthermore, if the PRC government issues any laws and regulations that restrict or prohibit
our collaboration with our funding partners, our collaboration with our funding partners may have to be terminated or suspended, which
may materially and adversely affect our business, financial condition and results of operations.
16
If our loan recommendation services do not
achieve sufficient market acceptance, our financial results and competitive position will be harmed.
To achieve market acceptance of our recommendation
services, it is essential for us to maintain and enhance our ability to match and recommend suitable mortgage products for our borrowers
and the effectiveness of our credit assessment and property valuation process. If we are unable to respond to changes in borrower preference
and deliver satisfactory and distinguishable borrower experience, existing borrowers and prospective borrowers may prefer services provided
by competitors or obtain mortgage products directly from funding providers. As a result, loan recommendation applications will decrease,
and our services and solutions will be less attractive to funding partners, and our business, financial performance, and prospects will
be materially and adversely affected.
Our loan recommendation services could fail to
attain sufficient market acceptance for many reasons, including:
●
borrowers may not find the features of available mortgage loan products, such as the prices and credit limits, competitive or appealing;
●
we may fail to predict market demand accurately and recommend mortgage products that meet this demand in a timely fashion;
●
borrowers and funding partners using our services may not like, find useful, or agree with the changes we make;
●
there may be defects, errors, or failures in our credit assessment and risk management process;
●
there may be negative publicity about our recommendation services;
●
regulatory authorities may take the view that our existing and new recommendation services do not comply with PRC laws, regulations or rules applicable to us; and
●
there may be competing products or services introduced or anticipated to be introduced by our competitors.
If our loan recommendation services do not maintain
or achieve adequate acceptance in the market, our competitive position, results of operations and financial condition could be materially
and adversely affected.
Fluctuations in interest rates could negatively
affect our loan origination volume.
Most of the mortgages provided by our funding
partners are issued with fixed interest rates. Fluctuations in the interest rate environment may discourage funding partners to provide
loans for borrowers recommended by us, which may adversely affect our business. Meanwhile, if our funding partners fail to respond to
the fluctuations in interest rates in a timely manner, the available mortgage products may become less attractive to borrowers.
Our success depends on the ability to develop
products and services to address the rapidly evolving market for third-party payment services, which include prepaid payment network services.
As we offer prepaid payment network services,
which is a subcategory of third-party payment services, we expect that new products, services and technologies applicable to the third-party
payment services industry in which we operate will continue to emerge and evolve. Rapid and significant technological changes continue
to shape such industry, including developments in ecommerce, mobile commerce, and proximity payment devices. Other potential changes,
such as developments in big data analytics and artificial intelligence, are on the horizon as well. Similarly, there is rapid innovation
in the products and services to facilitate business operations, including technology-enabled business services. These new products, services
and technologies may be superior to, impair, or render obsolete the payment services we currently offer, or the technologies we currently
use to provide them.
17
Incorporating new technologies into our payment
services may require substantial expenditures and considerable time, and we may not be successful in realizing a return on these development
efforts in a timely manner or at all. There can be no assurance that any new products or services we develop and offer to our customers
will achieve significant commercial acceptance. Our ability to develop new products and services may be inhibited by industry-wide standards,
laws and regulations, payment networks, resistance to change from customers, or third parties' intellectual property rights. The
planned timing for introduction of new products and services is subject to risks and uncertainties. We cannot assure you that any of our
new payment products and services will achieve widespread market acceptance and generate incremental revenue. Moreover, actual timing
may differ materially from original plans. Unexpected technical, distribution or other problems could delay or prevent the introduction
of our new products and services. If we are unable to provide enhancements and new features for our prepaid payment network services or
keep pace with rapid technological developments and evolving industry standards, our business, results of operations, and financial condition
would be materially and adversely affected.
Market, economic and other conditions in
China may adversely affect the demand for our products and services.
Payment services depend upon the overall level
of economic conditions and consumer spending in China. A sustained deterioration in the general economic conditions in China, including
any turmoil in the economy, reductions in household disposable income, distresses in financial markets, or reduced market liquidity, as
well as increased government intervention, may reduce the number of our customers. Small-to-medium size business owners, in particular,
are more susceptible to adverse changes in market, economic and regulatory conditions and the level of consumption in China. As a result,
the demand for our existing and new payment services could decrease, and our financial performance could be adversely affected.
Adverse market trends may affect our financial
performance. Such trends may include, but are not limited to, the following:
●
fluctuations in consumer demand, which reflect the prevailing economic and demographic conditions;
●
low levels of consumer and business confidence associated with recessionary environments which may in turn reduce consumer spending;
●
financial institutions restricting credit lines to cardholders or limiting the issuance of new cards to mitigate cardholder defaults; and
●
government intervention and regulation, and/or reduction in government investments in our customers, and that may reduce their desire to use our products and services.
We are subject to extensive regulations
in the third-party payment services industry. Non-compliance with or changes to the regulations or licensing regimes may materially affect
our business operations and financial results.
As prepaid payment network services is a subcategory
third-party payment services, we are subject to the regulations applicable to the third-party payment services industry, which is implemented
and monitored by several regulatory authorities, such as the PBOC, the China Securities Regulatory Commission ("CSRC"), the
State Administration of Foreign Exchange ("SAFE"), the National Development and Reform Commission ("NDRC") and
the China Banking and Insurance Regulatory Commission ("CBIRC"). There are laws and regulations that cover different aspects
of the industry including entry into such businesses, scope of permitted activities, licenses and permits for various operations and pricing.
Major laws and regulations that govern our prepaid payment network business include or may in the future include those relating to payment
services, such as payment processing and settlement, money transfer, foreign exchange, anti-money laundering and financial consumer protection,
insurance and financial services. See "Regulations—Regulations on Prepaid Payment Network Services."
As the third-party payment services industry in
China is emerging and evolving, the applicable laws, rules, and regulations are continually developing and evolving. Any changes in the
relevant rules and regulations may result in an increase in our cost of compliance or might restrict our business activities. If we fail
to continuously comply with the applicable rules, regulations, we may face fines or restrictions on our business activities, or even a
suspension or revocation of some or all of our licenses that allow us to carry on our business activities. Furthermore, the PRC government
may institute new licensing regimes covering our current and future services offerings. If such a licensing regime were introduced, we
cannot assure you that we would be able to obtain any newly required license in a timely manner, or at all, which could materially and
adversely affect our business and impede our ability to continue our operations.
18
Our efforts to expand our payment service
offerings may not succeed and may reduce our revenue growth.
While we intend to continue to broaden the scope
of our payment services, we may not be successful in deriving any significant revenue from such efforts. Failure to do so may inhibit
the growth of our business, as well as increase the vulnerability of our core payments business to competitors who offer a full suite
of products and services. Furthermore, we may have limited or no experience in our newly expanded markets. We cannot assure you that any
of our new payment services will be widely used. These offerings may present new technology, operational, and other challenges. If we
experience service disruptions, failures, or other issues, our business may be materially and adversely affected. Our newly expanded business
operations may not recoup our investments in a timely manner or at all. If any of these events were to occur, it could damage our reputation,
limit our growth, and materially and adversely affect our business, results of operations and financial condition.
If we are unable to provide customers with
satisfactory experience, or otherwise fail to maintain or enlarge our customer base, the volume of transactions processed via our prepaid
payment network services may decline and our results of operations may be adversely affected.
We believe that customer base is the core building
block of our prepaid payment network business, and our ability to provide customers with satisfactory experience is critical to our success
and continuous growth in revenue and customer base. If we fail to deliver satisfactory and distinct user experience, we may lose our customers
and business partners, resulting in a decrease in the volume of transactions processed via our payment services, and our results of operations
may be adversely affected. Our ability to provide customers with satisfactory experience is subject to a number of factors, including
our ability to provide effective services, our ability to continuously innovate and improve our services to meet customer needs, and our
access to and cooperation with our business partners. We may lose customers and revenue, and our results of operations could be materially
and adversely affected if we fail to provide satisfactory experience to our customers.
We are dependent on NetsUnion Clearing Corporation,
and any changes to its rules or practices could harm our prepaid payment network business.
According to the People's Bank of China,
or the PBOC, after June 30, 2018, third-party payment service providers, which include prepaid payment network service providers, are
required to channel internet payments via NetsUnion, rather than banks' payment gateways. As a result, we rely on NetsUnion to process
transactions on our behalf. However, NetsUnion may fail or refuse to process transactions adequately, may breach its agreement with us,
or may refuse to renew the agreement on commercially reasonable terms. It may also take actions that downgrade the functionality of our
services, impose additional costs or requirements on us, or give preferential treatment to competitive services, including those of its
own. If we are unsuccessful in establishing or maintaining mutually beneficial relationship with NetsUnion, our business may be harmed,
as there is no alternative to NetsUnion to furnish the same services.
NetsUnion requires us to comply with its network
operating rules, including special operating rules that apply to us as a provider of payment services to customers. These rules are set
by NetsUnion, which has the discretion as to interpretation and alteration. If there is any interpretation of, or alteration to the network
rules that are inconsistent with the way we currently operate, we may be required to make changes to our business operation. This could
be costly or difficult to implement. If we fail to make such changes or otherwise resolve the issue with NetsUnion, we could be fined
or prohibited from processing prepaid cards. In addition, violations of the network rules or failure to maintain good relationships with
NetsUnion could increase our costs or otherwise harm our prepaid payment network business.
19
Our current risk management system and internal
control policies and procedures may not be able to exhaustively address or mitigate all risks to which we are exposed through our prepaid
payment network business.
We are subject to various kinds of risks, including
business risks, operational risks and financial risks. Currently, we rely on our data driven risk management system, and internal control
policies and procedures to address and mitigate these risks. See "Business—Prepaid Payment Network Services— Risk Management
and Internal Control." Our limited experience in providing prepaid payment network services may render risk management less effective
in addressing some of the risks, exacerbating our risk exposure. Additionally, our data-driven risk management system and internal control
policies and procedures may not be able to exhaustively mitigate our exposure to these risks. We cannot assure you that our assessment
and monitoring of risks will always be sufficient. Any insufficiency in our risk management system and internal control policies and procedures
may have a material adverse effect on our business, results of operations, and financial condition.
Fraudulent and fictitious transactions,
and misconduct committed by our employees, customers, and other third parties may pose challenges to our risk management capabilities,
and failure to manage the related risks may adversely affect our business, financial condition, and results of operations.
As our prepaid payment network business grows
and we diversify our service offerings, we may be subject to liability for fraudulent payment transactions by customers, in particular,
fraudulent chargeback and use of counterfeit cards. Fraud or other misconduct committed by our employees, customers, or other third parties
may be difficult to detect or prevent. Such fraud or misconduct could subject us to financial losses and regulatory sanctions as well
as seriously damage our reputation. We cannot assure you that all of our employees and customers and other third parties will fully comply
with our risk management policies, measures and procedures for preventing fraud and other misconduct. We cannot assure that we will always
be able to identify and prevent all fraud and other misconduct by our employees and customers and other third parties. Future fraud or
other misconduct by our employees and customers and other third parties could damage our reputation and have a material adverse effect
on our business, financial condition, results of operations and prospects. Fraudulent activities have become increasingly sophisticated.
Incidents of frauds could increase in the future. Our measures to detect and reduce the risk of fraud need to be continually improved
to effectively guard against new and evolving forms of fraud, or frauds in connection with our new products and services. Substantial
costs may be incurred in improving such security measures. Failure to effectively identify and address these risks could lead to losses,
regulatory penalties, or even regulatory restrictions to our business operations, which will adversely affect our business, financial
condition, and results of operations. See "Business—Prepaid Payment Network Services—Risk Management and Internal Control—Fraud."
We face increasing competition, and if we
do not compete effectively, our operating results could be harmed.
The industries in which we are operating are competitive
and evolving. With respect to loan repayment and collection management and loan recommendation, we compete with market players such as
traditional financial institutions, small loan companies, e-commerce driven installment platforms, and other consumer finance platforms.
For repayment and collection management, our major competitors include China Data Group (Suzhou) Limited, M&Y Global Services, and
Promisechina (Shanghai) Investment Co., Ltd. For loan recommendation, we primarily compete with institutions such as Shanghai Qingpu Real
Estate Investment Property Co., Ltd, Shanghai Hongkou Real Estate Service Co., Ltd. and Shanghai Yangpu Public Housing Asset Management
Co., Ltd. With respect to prepaid payment network services, we primarily compete with other third-party payment service providers in China,
including Shandong Chenglian Card Payment Co., Ltd., Qingdao Baisentong Payment Co., Ltd. and Shandong Feiyin Intelligent Technology Co.,
Ltd.
Our competitors may operate with different business
models, have different cost structures or participate selectively in different market segments. They may ultimately prove to be more successful
or more adaptable to new regulatory, technological and other developments. Some of our current and potential competitors have significantly
more financial, technical, marketing and other resources than we do, and may be able to devote greater resources to the development, promotion,
sale and support of their platforms. Our competitors may also have longer operating histories, a more extensive pool of borrowers, larger
amounts of data, greater brand recognition and customer loyalty, and broader partner relationships than we do. For example, traditional
financial institutions may offer loan recommendation services. Experienced enterprises in financial product development and risk management
that are able to devote greater resources to the development, promotion, sale and technical support of their platforms, may gain an edge
in the competition against us. Additionally, a current or potential competitor may acquire one or more of our existing competitors or
form a strategic alliance with one or more of our competitors. Any of the foregoing could adversely affect our business, results of operations,
financial condition and future growth.
20
Our competitors may be better at developing new
services and products, responding to new technologies, charging lower fees on products and services and undertaking more extensive marketing
campaigns. When new competitors seek to enter our targeted markets, or when existing market participants seek to increase their market
share, they sometimes undercut product and service pricing and/or terms prevalent in the markets, which could adversely affect our market
share or ability to capture new market opportunities. Our pricing and terms could deteriorate if we fail to act to meet these competitive
challenges.
Any harm to our brand or reputation may
materially and adversely affect our business and results of operations.
Enhancing the recognition and reputation of our
brand is critical to our business and competitiveness. Factors that are vital to this objective include, but are not limited to, our ability
to:
●
maintain the quality and reliability of our products and services;
●
provide our customers with a satisfactory and distinguished customer experience;
●
enhance and improve our credit assessment model, risk management system, and IT infrastructure;
●
effectively manage and resolve customer complaints; and
●
effectively protect personal information and privacy of customers and business partners.
Any malicious or innocent negative allegations
made by the media or other parties about our company, including, but not limited to our management, business, compliance with law, financial
condition or prospects, whether with merit or not, could severely hurt our reputation and harm our business and operating results. As
the industries in which we operate are still evolving, negative publicity may arise from time to time. Negative publicity about China's
financial industry in general may also have a negative impact on our reputation, regardless of whether we have engaged in any inappropriate
activities.
In addition, certain factors that may adversely
affect our reputation are beyond our control. Negative publicity about the operating entities' partners, outsourced service providers
or other counterparties, such as negative publicity about their business practices and any failure by them to adequately protect confidential
information, to comply with applicable laws and regulations or to otherwise meet required quality and service standards could harm our
reputation. Furthermore, any negative development in the financial industry in China, such as bankruptcies or failures of finance platforms,
or negative perception of the industry as a whole, even if factually incorrect or based on isolated incidents, could compromise our image,
undermine the trust and credibility we have established and impose a negative impact on our ability to acquire new customers and establish
new strategic partnerships.
Misconduct, errors and failure to function
by the Sentage Operating Companies' employees and third-party service providers could harm our business and reputation.
The operating entities are exposed to many types
of operational risks, including the risk of misconduct and errors by the Sentage Operating Companies' employees and third-party
service providers. Our business depends on the Sentage Operating Companies' employees and third-party service providers for a variety
of business activities, which including, but are not limited to interacting with potential and existing customers, processing large numbers
of transactions, and supporting the loan repayment and collection management process, all of which involve the use and disclosure of personal
information. We could be materially adversely affected if transactions were redirected, misappropriated or otherwise improperly executed,
if personal information was disclosed to unintended recipients or if an operational breakdown or failure in the processing of transactions
occurred, whether as a result of human error, purposeful sabotage or fraudulent manipulation of our operations or systems. In addition,
the manner in which we store and use certain personal information and interact with customers is governed by various PRC laws. It is not
always possible to identify and deter misconduct or errors by employees or third-party service providers, and the precautions we take
to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses. If any of the Sentage Operating
Companies' employees or third-party service providers take, convert or misuse funds, documents or data or fail to follow protocol
when interacting with the customers, we could be liable for damages and subject to regulatory actions and penalties. We could also be
perceived to have originated or participated in the illegal misappropriation of funds, documents or data, or the failure to follow protocol,
and therefore be subject to civil or criminal liability.
21
Furthermore, we rely on certain third-party service
providers, such as borrower acquisition partners, data providers, and third-party collection agencies, to conduct our business. If these
service providers fail to function properly, we cannot assure you that we would be able to find an alternative in a timely and cost-efficient
manner or at all. Even though the third-party services we engage are usually subject to pay-per-use schedules, we do maintain a few fixed-term
contracts, and we cannot assure you that we can renew them once they expire, or we can renew them with the term we desire. Such service
providers may also be demanded by their customers not to work with us, or form alliances to seek better terms dealing with us. Even though
our business does not substantially depend on any particular third-party service providers, the above-mentioned occurrences may result
in our diminished ability to operate our business, potential liability to borrowers, inability to attract borrowers, reputational damage,
regulatory intervention, and financial harm. Such occurrences could negatively impact our business, financial condition, and results of
operations.
Our ability to protect the confidential
information of various parties, including borrowers, funding partners, and merchants, may be adversely affected by cyberattacks, computer
viruses, physical or electronic break-ins or similar disruptions.
We collect, store, and process certain personal
and other sensitive data from various parties, including, but not limited to borrowers, funding partners, and merchants, which makes us
an attractive target and potentially vulnerable to cyberattacks, computer viruses, physical or electronic break-ins or similar disruptions.
While we have taken steps to protect the confidential information that we have access to, our security measures could be breached. Because
techniques used to sabotage or obtain unauthorized access to systems change frequently and generally are not recognized until they are
launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures. Any accidental
or willful security breaches or other unauthorized access to our systems could cause confidential information to be stolen and used for
criminal purposes. Security breaches or unauthorized access to confidential information could also expose us to liability related to the
loss of the information, time-consuming and expensive litigation and negative publicity. If security measures are breached because of
third-party action, employee error, malfeasance or otherwise, or if design flaws in our technology infrastructure are exposed and exploited,
our relationships with our customers, including borrowers, funding partners, and merchants, could be severely damaged, we could incur
significant liability, and our business and operations could be adversely affected.
Meanwhile, if we fail to protect confidential
information, we may be involved in various claims and litigation for privacy breaches or other damages. Such claims and litigation may
require a lot of time and resources to defend and we cannot assure you that any such claims or litigation will result in a favorable outcome.
We may be liable for improper use or appropriation
of personal information provided by the customers and any failure to comply with PRC laws and regulations over data security could result
in materially adverse impact on our business, results of operations, and our continued listing on Nasdaq.
The Sentage Operating Companies' business
involves collecting and retaining certain internal data and customer information. The integrity and protection of student information
and company data is crucial to the operating entities. The customers expect that we will adequately protect their personal information.
The operating entities are required by applicable laws to keep strictly confidential the personal information that they collect, and to
take adequate security measures to safeguard such information.
The PRC Criminal Law, as amended by its Amendment
7 (effective on February 28, 2009) and Amendment 9 (effective on November 1, 2015), prohibits institutions, companies and their employees
from selling or otherwise illegally disclosing a citizen's personal information obtained in performing duties or providing services
or obtaining such information through theft or other illegal ways.
On November 7, 2016, the Standing Committee of
the PRC National People's Congress issued the Cyber Security Law of the PRC, or Cyber Security Law, which became effective on June
1, 2017. Pursuant to the Cyber Security Law, network operators must not, without users' consent, collect their personal information,
and may only collect users' personal information necessary to provide their services. Providers are also obliged to provide security
maintenance for their products and services and shall comply with provisions regarding the protection of personal information as stipulated
under the relevant laws and regulations.
22
The Civil Code of the PRC (issued by the PRC National
People's Congress on May 28, 2020 and effective from January 1, 2021) provides legal basis for privacy and personal information
infringement claims under the Chinese civil laws. PRC regulators, including the Cyberspace Administration of China (the "CAC"),
the Ministry of Industry and Information Technology, and the Ministry of Public Security, have been increasingly focused on regulation
in data security and data protection.
On June 10, 2021, the Standing Committee of the
National People's Congress of China, or the SCNPC, promulgated the PRC Data Security Law (《中华人民共和国数据安全法》),
which became effective in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities and individuals
carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance of data
in economic and social development, and the degree of harm it will cause to national security, public interests, or legitimate rights
and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC
Data Security Law also provides for a national security review procedure for data activities that may affect national security and imposes
export restrictions on certain data and information.
The Personal Information Protection Law of the
PRC (《中华人民共和国个人信息保护法》),
(issued by Standing Committee of the National People's Congress Standing Committee of the National People's Congress and became
effective on November 1, 2021) provides that critical information infrastructure operators ("CIIOs") and personal information
processors whose quantity of processing of personal information reaches that as prescribed by the CAC must store personal information
collected and generated within the territory of the People's Republic of China. Where it is necessary to provide such information
and data to an overseas party, such provision are required to pass the security evaluation organized by the CAC, unless otherwise waived
by laws or administrative regulations.
On December 28, 2021, the CAC, together with
12 other governmental departments of the PRC, jointly promulgated the Cybersecurity Review Measures (《网络安全审查办法》),
which became effective on February 15, 2022. The Cybersecurity Review Measures provide that, in addition to CIIOs that intend to purchase
Internet products and services, data processing operators engaging in data processing activities that affect or may affect national security
must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity Review Measures,
a cybersecurity review assesses potential national security risks that may be brought about by any procurement, data processing, or overseas
listing. The Cybersecurity Review Measures further require that CIIOs and data processing operators that possess personal data of at least
one million users must apply for a review by the Cybersecurity Review Office of the PRC before conducting listings in foreign countries.
On November 14, 2021, the CAC published the
Draft Regulations on the Network Data Security Administration (Draft for Comments) (the "Security Administration Draft") (《网络数据安全管理条例（征求意见稿）》),
which provides that data processing operators engaging in data processing activities that affect or may affect national security must
be subject to cybersecurity review by the relevant Cyberspace Administration of the PRC. According to the Cybersecurity Review Measures,
which provides that data processing operators who possess personal data of at least one million users conducting listings in foreign countries
or process data that affects or may affect national security must be subject to cybersecurity review by the relevant Cyberspace Administration
of the PRC. The deadline for public comments on the Security Administration Draft was December 13, 2021.
On July 7, 2022, the CAC published the Measures
for the Security Assessment of Outbound Data Transfer (《数据出境安全评估办法》),
which were effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People's Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file with the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than one
million individuals transfers personal information to abroad；(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or；(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration.
23
As of the date of this annual report, our PRC
operating entities have not received any notice from any authorities identifying the operating entities as a CIIO or requiring the operating
entities to go through cybersecurity review or network data security review by the CAC. Nor our PRC operating entities have been involved
in any investigations on cybersecurity review initiated by the CAC or related governmental regulatory authorities. Our operating entities
have not received any inquiry, notice, warning, or sanction in such respect. We believe that our PRC operating entities are in compliance
with the aforementioned regulations and policies that have been issued by the CAC. However, as uncertainties remain regarding the interpretation
and enforcement of relevant PRC cybersecurity laws and regulations, the operating entities could be subject to cybersecurity review, and
if so, the operating entities may not be able to pass such review. In addition, our PRC operating entities could become subject to enhanced
cybersecurity review or investigations launched by PRC regulators in the future. Any failure or delay in the completion of the cybersecurity
review procedures or any other non-compliance with the related laws and regulations may result in fines or other penalties, including
suspension of business, website closure, removal of the operating entities' app from the relevant app stores, and revocation of
prerequisite licenses, as well as reputational damage or legal proceedings or actions against the operating entities, which may have material
adverse effect on the operating entities' business, financial condition or results of operations.
Our operations depend on the performance
of the internet infrastructure and fixed telecommunications networks in China, which we do not control.
Almost all access to the internet in China is
maintained through state-owned telecommunication operators under the administrative control and regulatory supervision of the Ministry
of Industry and Information Technology. We primarily rely on a limited number of telecommunications service providers to provide us with
data communications capacity through local telecommunications lines and internet data centers to host our servers. We have limited access
to alternative networks or services in the event of disruptions, failures or other problems with China's internet infrastructure
or the fixed telecommunications networks provided by telecommunications service providers. With the expansion of our business, we may
be required to upgrade our technology and infrastructure by relevant regulatory authorities. We cannot assure you that the internet infrastructure
and the fixed telecommunications networks in China will be able to support the demands associated with the continued growth in internet
usage we anticipate.
In addition, we have no control over the costs
of the services provided by telecommunications service providers. If the prices we pay for telecommunications and internet services rise
significantly, our financial performance may be adversely affected. Furthermore, if internet access fees or other charges to internet
users increase, our business may be harmed.
We are highly dependent on telecommunications
and IT systems, and an interruption or error in those systems could have an adverse effect on our business and results of operations.
Our business is materially dependent on our proprietary
operating portal and IT systems. Development and maintenance of our proprietary operating portal and IT systems are time-consuming, expensive
and complex, and may involve unforeseen difficulties. We may encounter technical obstacles, and it is possible that we may discover additional
problems that prevent our operating portal and IT systems from functioning properly and consequently adversely affect our information
infrastructure and our business. If our IT systems cease to work, become unavailable, or experience significant interruption, we may be
prevented from operating business normally.
Our business also depends on the efficient and
uninterrupted operation of our computer systems. All our computer hardware and our computing services are currently located in China.
Although we have prepared for contingencies through redundancy measures and disaster recovery plans, such preparation may not be sufficient,
and we currently do not carry business interruption insurance. Despite any precautions we may take, the occurrence of a natural disaster,
such as an earthquake, flood or fire, or other unanticipated problems at our offices in China, including power outages, telecommunications
delays or failures, break-ins to our systems or computer viruses, could result in delays or interruptions to our business and loss of
data for us. Any of these events could damage our reputation, significantly disrupt our operations, and subject us to liability, which
could materially and adversely affect our business, financial condition, and results of operations.
24
Our internal systems rely on software that
is highly technical, and if it contains undetected errors, our business could be adversely affected.
Our internal systems rely on software that is
highly technical and complex. In addition, our internal systems depend on the ability of such software to store, retrieve, process and
manage immense amounts of data. The software on which we rely has contained, and may now or in the future contain, undetected errors or
bugs. Some errors may only be discovered after the code has been released for external or internal use. Errors or other design defects
within the software on which we rely may result in a negative experience for borrowers and funding partners, delay introductions of new
features or enhancements, result in errors or compromise our ability to protect borrower data or our intellectual property. Any errors,
bugs or defects discovered in the software on which we rely could result in harm to our reputation, loss of customers or business partners,
loss of revenue, or liability for damages, any of which could adversely affect our business and financial results.
If we are not able to respond to technological
advances in a timely manner, we may not remain competitive.
Our success depends in a large part on our technology
and IT infrastructure. We use these systems to identify, locate and contact borrowers and record the results of our collection efforts,
manage merchant accounts and behavior and transaction data, and store and analyze borrower information to establish a comprehensive borrower
profile for prospective borrowers who submitted their loan recommendation applications. If we are not able to respond to advances in telecommunications
and computer technologies in a timely manner, we may not be able to remain competitive. We have made significant investments in technology
to remain competitive and we anticipate that it will be necessary to continue to do so in the future. Although we will continue to devote
significant resources to enhance and develop our technologies, we cannot assure you that we will have the capital resources available
to invest in new technologies, and we may not be able to implement technology updates on a timely basis, or at all. In addition, new technologies
may not succeed or integrate well with our existing systems and infrastructure, and even if integrated, may not function as expected.
As telecommunications and computer technologies are changing rapidly and are characterized by short product life cycles, we may not be
successful in anticipating new technology trends or adopt technological changes on a timely basis. If any of the foregoing were to occur
in the future, our business and results of operation could be materially adversely affected.
We may not be able to prevent others from
unauthorized use of our intellectual property, which could harm our business and competitive position.
We regard our intellectual property as critical
to our success, and we rely on trademark and trade secret law and confidentiality, invention assignment and non-compete agreements with
our employees and others to protect our proprietary rights. See "Business— Intellectual Property." However, we cannot
assure you that any of our intellectual property rights would not be challenged, invalidated or circumvented, or such intellectual property
will be sufficient for providing us with competitive advantages. In addition, other parties may misappropriate our intellectual property
rights, which would cause us to suffer economic or reputational damages. Because of the rapid pace of technological change, we cannot
assure you that all of our proprietary technologies and similar intellectual property will be patented in a timely or cost-effective manner,
or at all. Furthermore, parts of our business rely on technologies developed or licensed by other parties, or co-developed with other
parties, and we may not be able to obtain or continue to obtain licenses and technologies from these other parties on reasonable terms,
or at all.
It is often difficult to register, maintain and
enforce intellectual property rights in China. Statutory laws and regulations are subject to judicial interpretation and enforcement and
may not be applied consistently due to the lack of clear guidance on statutory interpretation. Confidentiality, invention assignment,
and non-compete agreements may be breached by counterparties, and there may not be adequate remedies available to us for any such breach.
Accordingly, we may not be able to effectively protect our intellectual property rights or to enforce our contractual rights in China.
Preventing any unauthorized use of our intellectual property is difficult and costly, and the steps we take may be inadequate to prevent
the misappropriation of our intellectual property. In the event that we resort to litigation to enforce our intellectual property rights,
such litigation could result in substantial costs and in a diversion of our managerial and financial resources. We can provide no assurance
that we will prevail in such litigation. In addition, our trade secrets may be leaked or otherwise become available to, or be independently
discovered by, our competitors. To the extent that our employees or authorized third-party service providers use intellectual property
owned by others in their work for us, disputes may arise as to the rights in related know-how and inventions. Any failure in protecting
or enforcing our intellectual property rights could have a material adverse effect on our business, financial condition, and results of
operations.
25
We may be subject to intellectual property
infringement claims, which may be expensive to defend and may disrupt our business and operations.
We cannot be certain that our operations or any
aspects of our business do not or will not infringe upon or otherwise violate trademarks, copyrights, know-how, proprietary technologies
or other intellectual property rights held by other parties. We may be from time to time in the future subject to legal proceedings and
claims relating to the intellectual property rights of others. In addition, there may be other parties' trademarks, copyrights,
know-how, proprietary technologies or other intellectual property rights that are infringed by our products and services or other aspects
of our business without our awareness. Holders of such intellectual property rights may seek to enforce such intellectual property rights
against us in China, the United States or other jurisdictions. If any infringement claims are brought against us, we may be forced to
divert management's time and other resources from our business and operations to defend against these claims, regardless of their
merits.
Additionally, the application and interpretation
of China's intellectual property right laws and the procedures and standards for granting trademarks, copyrights, know-how, proprietary
technologies or other intellectual property rights in China are still evolving and are uncertain, and we cannot assure you that PRC courts
or regulatory authorities would agree with our analysis. If we were found to have violated the intellectual property rights of others,
we may be subject to liability for our infringement activities or may be prohibited from using such intellectual property, and we may
incur licensing fees or be forced to develop alternatives of our own. As a result, our business and results of operations may be materially
and adversely affected.
The operating entities' business depends
on the continued efforts of their management. If one or more of their key executives were unable or unwilling to continue in their present
positions, our business may be severely disrupted.
Our business operations depend on the continued
services of our management, particularly the executive officers named in this annual report, and teams in charge of our risk management,
research and development, customer relationship management, and collaboration with business partners, such as NetsUnion, and funding partners.
While we have provided different incentives to our management, we cannot assure you that we can continue to retain their services. If
one or more members of our management team were unable or unwilling to continue in their present positions, we may not be able to replace
them easily or at all, our future growth may be constrained, our business may be severely disrupted, our financial condition and results
of operations may be materially and adversely affected, and we may incur additional expenses to recruit, train and retain qualified personnel.
In addition, although we have entered into confidentiality and non-competition agreements with members of our management team, there is
no assurance that any member of our management team will not join our competitors, form a competing business, or disclose confidential
information to the public. If any dispute arises between our current or former officers and us, we may have to incur substantial costs
and expenses in order to enforce such agreements in China or we may be unable to enforce them at all.
From time to time we may evaluate and potentially consummate
strategic investments or acquisitions, which could require significant management attention, disrupt our business and adversely affect
our financial results.
We may evaluate and consider strategic investments,
combinations, acquisitions or alliances to further increase the value of our business. These transactions could be material to our financial
condition and results of operations if consummated. If we are able to identify an appropriate business opportunity, we may not be able
to successfully consummate the transaction, and even if we do consummate such a transaction, we may be unable to obtain the benefits or
avoid the difficulties and risks of such transaction.
26
Strategic investments or acquisitions will involve
risks commonly encountered in business relationships, including:
●
difficulties in assimilating and integrating the operations, personnel, systems, data, technologies, rights, platforms, products and services of the acquired business;
●
the inability of the acquired technologies, products or businesses to achieve expected levels of revenue, profitability, productivity or other benefits;
●
difficulties in retaining, training, motivating and integrating key personnel;
●
the diversion of managements' time and resources from our daily operations;
●
difficulties in maintaining uniform standards, controls, procedures and policies within the combined organizations;
●
difficulties in retaining relationships with borrowers, employees and suppliers of the acquired business;
●
risks of entering markets in which we have limited or no prior experience;
●
regulatory risks, including remaining in good standing with existing regulatory bodies or receiving any necessary pre-closing or post-closing approvals, as well as being subject to new regulators with oversight over an acquired business;
●
the assumption of contractual obligations that contain terms that are not beneficial to us, require us to license or waive intellectual property rights or increase our risk of liability;
●
the failure to successfully further develop the acquired technology;
●
liability for activities of the acquired business before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities;
●
potential disruptions to our ongoing businesses; and
●
unexpected costs and unknown risks and liabilities associated with strategic investments or acquisitions.
We may not make any investments or acquisitions,
or any future investments or acquisitions may not be successful, may not benefit our business strategy, may not generate sufficient revenue
to offset the associated acquisition costs or may not otherwise result in the intended benefits. In addition, we cannot assure you that
any future investment in or acquisition of new businesses or technology will lead to the successful development of new or enhanced products
and services or that any new or enhanced loan products and services, if developed, will achieve market acceptance or prove to be profitable.
Competition for employees is intense, and we may not be able
to attract and retain the qualified and skilled employees needed to support our business.
We believe our success depends on the efforts
and talent of our employees, including risk management, technology infrastructure and IT system maintenance and upgrade, financial and
marketing personnel. Our future success depends on our continued ability to attract, develop, motivate and retain qualified and skilled
employees. Competition for highly skilled technical, risk management and financial personnel is extremely intense. We may not be able
to hire and retain these personnel at compensation levels consistent with our existing compensation and salary structure. Some of the
companies with which we compete for experienced employees have greater resources than we have and may be able to offer more attractive
terms of employment.
In addition, we invest significant time and expenses
in training our employees, which increases their value to competitors who may seek to recruit them. If we fail to retain our employees,
we could incur significant expenses in hiring and training their replacements, and our operational efficiency could diminish, resulting
in a material adverse effect to our business.
27
Failure to maintain the quality of customer
services could harm our reputation and our ability to retain existing customers and attract new customers, which may materially and adversely
affect our business, financial condition, and results of operations.
We depend on our customer service representatives
to provide assistance to clients using our services. As such, the quality of customer services is critical to retaining our existing customers
and attracting new customers. If our customer service representatives fail to satisfy our customers' individual needs, we may incur
reputational harm and lose potential or existing business opportunities with our existing clients, which could have a material adverse
effect on our business, financial condition, and results of operations.
We face risks related to natural disasters,
health epidemics, and other circumstances beyond our control, which could significantly disrupt our operations.
Our business may be adversely affected by instability,
disruption or destruction in a geographic region of China in which it operates, regardless of cause, including war, terrorism, riot, economic
boycott, civil insurrection or social unrest, and natural or manmade disasters, including famine, flood, fire, earthquake, storm or pandemic
events and spread of disease, including the new coronavirus commonly referred to as "COVID-19". The COVID-19 pandemic, first
found in mainland China, then in Asia, and eventually throughout the world, significantly affected our overall business, results of operation,
and financial conditions. Specifically, the COVID-19 pandemic gave rise to economic downturns and other significant changes in regional
and global economic conditions. As a result, borrowers' default and delinquency risks increased as they experienced unemployment
or generated less income. Subsequently, higher default and delinquency risks required us to dedicate more resources to maintain our current
collection rate for the loan repayment and collection management business and posed risk-management challenges for our loan recommendation
business, increasing our operating costs. As the majority of our merchant customers are retailers whose businesses were adversely affected
by the COVID-19 pandemic, the pandemic caused our merchant customers to stop or delay using our prepaid payment network services, adversely
impacting our revenue from the prepaid payment network business.
Any significant disruption to communications and
travel, including travel restrictions and other potential protective quarantine measures by governmental agencies, also increase the difficulty
and could make it impossible for us to conduct on-site inspection of collateralized properties, which is a necessary step of our credit
assessment and risk management process. Accordingly, travel restrictions and protective measures caused the Company to incur additional
unexpected labor costs and expenses and restrained our ability to retain the highly skilled personnel we needed for our operations, adversely
affecting our business and results of operation. In addition, any health epidemic such as the COVID-19 pandemic could have an adverse
impact on the real estate market in the Shanghai area and other first-tier cities we target, subsequently decreasing the total loan amount
borrowers are able to obtain through our services, reducing our service fee, which is based on specific loan amount, and adversely impacting
our revenue from the loan recommendation business.
In the beginning of February 2020, we had to temporarily
suspend our prepaid payment network services due to government restrictions. We managed to promptly implement a series of response measures
to the COVID-19 pandemic, including having our full work force resume work remotely by the end of February 2020. We fully resumed our
operation on March 10, 2020 and our business was fully operational in 2021. However, our business facilities in Shanghai, China were temporarily
closed again, starting from April 2022 to June 2022, as a result of local government's efforts to contain the resurgence of the
COVID-19 pandemic. The COVID-19 negatively affected our operations in fiscal year 2022 and could cause the Company's revenue and
cash flows to underperform in the next 12 months.
For the consumer loan repayment and collection
management business, due to the uncertainties caused by the COVID-19, our prospective business partners were not able to start new cooperation
with us and we were not able to generate any revenue for fiscal year 2022.
For the loan recommendation services, which requires
face-to-face interaction with potential customers, the temporary lock down from April 2022 to June 2022 severely impacted our ability
to generate new business. Even after June 2022, due to the uncertainties caused by COVID-19, the demand from customers decreased sharply
and the we were not able to generate any revenue for fiscal year 2022.
For the prepaid payment network services, the
revenue in 2022 declined sharply because decreased demand from customers due to the uncertainties caused by COVID-19.
Although China relaxed the COVID-19 restrictions
at the end of 2022, because the COVID-19 has deeply affected businesses and economy in China from 2020 to 2022, the extent of any future
impact of COVID-19 on our operations remains highly uncertain and unpredictable.
We may from time to time be subject to claims,
controversies, lawsuits and legal proceedings, which could have a material adverse effect on our financial condition, results of operations,
cash flows and reputation.
We may from time to time become subject to or
involved in various claims, controversies, lawsuits, and legal proceedings. However, claims, lawsuits, and litigation are subject to inherent
uncertainties, and we are uncertain whether any of these claims would develop into a lawsuit. Lawsuits and litigation may cause us to
incur defense costs, utilize a significant portion of our resources and divert management's attention from our day-to-day operations,
any of which could harm our business. Any settlements or judgments against us could have a material adverse impact on our financial condition,
results of operations and cash flows. In addition, negative publicity regarding claims or judgments made against us may damage our reputation
and may result in material adverse impact on us.
28
Our current insurance policies may not provide
adequate levels of coverage against all claims and we may incur losses that are not covered by our insurance.
We believe we maintain insurance coverage that
is customary for businesses of our size and type. However, we may be unable to insure against certain types of losses or claims, or the
cost of such insurance may be prohibitive. Uninsured losses or claims, if they occur, could have a material adverse effect on our reputation,
business, results of operations, financial condition, or prospects.
If we fail to implement and maintain an
effective system of internal controls, we may be unable to accurately or timely report the results of operations or prevent fraud, and
investor confidence and the market price of our securities may be materially and adversely affected.
Our independent registered public accounting firm
has not conducted an audit of our internal control over financial reporting. In the course of auditing our consolidated financial statements
for the fiscal year ended December 31, 2022, our independent registered public accounting firm identified two material weaknesses and
other control deficiencies in our internal control over financial reporting.
The material weaknesses identified relate to (i) our
lack of a sufficient number of finance and accounting personnel or sufficiently trained finance and accounting personnel, as well as comprehensive
accounting policies in accordance with U.S. GAAP financial reporting; and (ii) our internal control policy does not have a proper
approval mechanism, and our lack of internal controls on performing periodic reviews of user accounts and their level of authorization
in the financial systems. We plan to implement a number of measures to remedy these material weaknesses. To remedy the identified material
weakness and the other control deficiencies, we have implemented and will continue to implement initiatives to improve our internal control
over financial reporting to address the material weaknesses that have been identified, including: (i) obtain additional resources,
including experienced staff with U.S. GAAP and U.S. Securities and Exchange Commission (the "SEC") reporting knowledge,
to strengthen the financial reporting function and to set up financial and system control framework; (ii) conducting regular and
continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel, including
sending our financial staff to attend external U.S. GAAP training courses; and (iii) optimizing our financial systems by establishing
a proper approval mechanism and performing periodic reviews of users accounts and their level of authorization. We cannot assure you,
however, that these measures will fully address these material weaknesses and other deficiencies in our internal control over financial
reporting or that we will be able to conclude that they have been fully remedied.
If we fail to establish and maintain adequate
internal controls, we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which
would likely cause investors to lose confidence in our reported financial information. This could limit our access to capital markets,
adversely affect our results of operations and lead to a decline in the trading price of our securities. Additionally, ineffective internal
controls could expose us to an increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock
exchange on which we list our Ordinary Shares or to other regulatory investigations and civil or criminal sanctions.
As a public company, we are subject to Sarbanes-Oxley
Act of 2002, or Sarbanes-Oxley Act. Since we qualify as an "emerging growth company" pursuant to the JOBS Act with less than
US$1.235 billion in revenue for our last fiscal year. An emerging growth company may take advantage of specified reduced reporting
and other requirements that are otherwise applicable generally to public companies. These provisions include exemption from the auditor
attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002, or Section 404, in the assessment of the emerging
growth company's internal control over financial reporting. Moreover, even if management concludes that our internal control over
financial reporting is effective, our independent registered public accounting firm, after conducting its own independent testing, may
issue a report that is qualified, if it is not satisfied with our internal controls or the level at which our controls are documented,
designed, operated or reviewed, or if it interprets the relevant requirements differently from us.
29
During the course of documenting and testing our
internal control procedures, we may identify other weaknesses and deficiencies in our internal control over financial reporting. In addition,
if we fail to maintain the adequacy of our internal control over financial reporting, as these standards are modified, supplemented or
amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting
in accordance with Section 404. Generally speaking, if we fail to achieve and maintain an effective internal control environment,
we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which would likely cause
investors to lose confidence in our reported financial information. This could in turn limit our access to capital markets, harm our results
of operations, and lead to a decline in the trading price of our securities. Additionally, ineffective internal control over financial
reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock
exchange on which we list, regulatory investigations and civil or criminal sanctions.
Risks Related to Doing Business in China
There are uncertainties under the Foreign
Investment Law relating to the status of businesses in China controlled by foreign invested projects primarily through contractual arrangements,
such as our business.
The Administrative Measures of People's
Bank of China on Payment Services Provided by Non-financial Institutions (Order of the People's Bank of China (2010) No. 2, "Order
No. 2") (中国人民银行令[2010]第2号《非金融机构支付服务管理办法》)
was promulgated by the PBOC on June 14, 2010. According to Order No. 2, the business scope of a foreign-invested payment institutions,
the qualification conditions, and the allowed ratio of contribution of the payment institution's foreign investors shall be stipulated
by the PBOC and submitted to the State Council for approval. According to "Announcement No. 7 of the People's Bank of China
(2018) (《中国人民银行公告（2018）第7号》")
("No. 7 Announcement"), which was issued by the PBOC and became effective on March 19, 2018, upon approval by the State Council,
pursuant to the Law of the People's Republic of China on the People's Bank of China and Order No. 2, foreign-invested payment
institutions should satisfy regulatory requirements relevant to foreign-invested payment institutions. According to Order No. 2 and the
No. 7 Announcement, the VIE entity, Qingdao Buytop, is considered a payment institution, as it provides prepaid payment network services.
To comply with PRC laws and regulations on foreign ownership and investment in companies that engage in certain businesses including third-party
payment services, we rely on the VIE Agreements with the Qingdao Buytop to operate such business in China and Qingdao Buytop has obtained
all requisite licenses.
The Ministry of Commerce of the People's Republic
of China, or MOFCOM, published a discussion draft of the proposed Foreign Investment Law in January 2015, or the "2015 FIL Draft,"
which expanded the definition of foreign investment and introduced the principle of "actual control" in determining whether
a company is considered a foreign-invested enterprise. Under the 2015 FIL Draft, VIEs that are controlled via contractual arrangement
would also be deemed as foreign-invested enterprises if they are ultimately "controlled" by foreign investors. On March 15,
2019, the National People's Congress approved the Foreign Investment Law of the PRC, which came into effect on January 1, 2020,
repealing simultaneously the Law of the PRC on Sino-foreign Equity Joint Ventures, the Law of the PRC on Wholly Foreign-owned Enterprises,
and the Law of the PRC on Sino-foreign Cooperative Joint Ventures, together with their implementation rules and ancillary regulations.
Pursuant to the Foreign Investment Law, foreign investment refers to any investment activity directly or indirectly carried out by foreign
natural persons, enterprises, or other organizations, including investment in new construction project, establishment of foreign funded
enterprise or increase of investment, merger and acquisition, and investment in any other way stipulated under laws, administrative regulations,
or provisions of the State Council. Although the Foreign Investment Law has deleted the particular reference to the concept of "actual
control" and contractual arrangements from the 2015 FIL Draft, there is still uncertainty regarding whether the VIEs would be identified
as a foreign-invested enterprise in the future. As a result, we cannot assure you that the Foreign Investment Law will not have a material
and adverse effect on our ability to conduct our business through the VIE Agreements.
30
Changes in China's economic, political,
or social conditions or government policies could have a material adverse effect on our business and operations.
Substantially all of our assets and operations
are currently located in China. Accordingly, our business, financial condition, results of operations, and prospects may be influenced
to a significant degree by political, economic, and social conditions in China generally. The Chinese economy differs from the economies
of most developed countries in many respects, including the level of government involvement, level of development, growth rate, control
of foreign exchange, and allocation of resources. Although the Chinese government has implemented measures emphasizing the utilization
of market forces for economic reform, including the reduction of state ownership of productive assets and the establishment of improved
corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the government. In
addition, the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies.
The Chinese government also exercises significant control over China's economic growth by allocating resources, controlling payment
of foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment to particular industries or
companies.
While the Chinese economy has experienced significant
growth over the past decades, growth has been uneven, both geographically and among various sectors of the economy. Any adverse changes
in economic conditions in China, in the policies of the Chinese government, or in the laws and regulations in China could have a material
adverse effect on the overall economic growth of China. Such developments could adversely affect our business and operating results, reduce
demand for our products, and weaken our competitive position. The Chinese government has implemented various measures to encourage economic
growth and guide the allocation of resources. Some of these measures may benefit the overall Chinese economy but may have a negative effect
on us. For example, our financial condition and results of operations may be adversely affected by government control over capital investments
or changes in tax regulations. In addition, in the past the Chinese government has implemented certain measures, including interest rate
adjustments, to control the pace of economic growth. These measures may cause decreased economic activities in China, which may adversely
affect our business and operating results.
Uncertainties in the interpretation and
enforcement of PRC laws and regulations could limit the legal protection available to you and us.
The PRC legal system is based on written statutes.
Unlike common law systems, it is a system in which legal cases have limited value as precedents. In the late 1970s, the PRC government
began to promulgate a comprehensive system of laws and regulations governing economic matters in general. The legislation over the past
three decades has significantly increased the protection afforded to various forms of foreign or private-sector investment in China. Our
PRC operating entities are subject to various PRC laws and regulations generally applicable to companies in China. Since these laws and
regulations are relatively new and the PRC legal system continues to rapidly evolve, however, the interpretations of many laws, regulations,
and rules are not always uniform and enforcement of these laws, regulations, and rules involve uncertainties.
On July 6, 2021, the General Office of the Communist
Party of China Central Committee and the General Office of the State Council jointly issued a document to crack down on illegal activities
in the securities market and promote the high-quality development of the capital market, which, among other things, requires the relevant
governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision over
China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the PRC securities laws.
Since this document is relatively new, uncertainties still exist in relation to how soon legislative or administrative regulation making
bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated,
if any, and the potential impact such modified or new laws and regulations will have on companies like us.
From time to time, we may have to resort to administrative
and court proceedings to enforce our legal rights. Since PRC administrative and court authorities have significant discretion in interpreting
and implementing statutory and contractual terms, however, it may be more difficult to evaluate the outcome of administrative and court
proceedings and the level of legal protection we enjoy in the PRC legal system than in more developed legal systems. Furthermore, the
PRC legal system is based in part on government policies and internal rules (some of which are not published in a timely manner or at
all) that may have retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime after
the violation. Such uncertainties, including uncertainties over the scope and effect of our contractual, property (including intellectual
property) and procedural rights, and any failure to respond to changes in the regulatory environment in China could materially and adversely
affect our business and impede our ability to continue our operations.
31
PRC laws and regulations governing our current
business operations are sometimes vague and uncertain and any changes in such laws and regulations may impair our ability to operate profitably.
There are substantial uncertainties regarding
the interpretation and application of PRC laws and regulations including, but not limited to, the laws and regulations governing our business
and the enforcement and performance of our arrangements with customers in certain circumstances. The laws and regulations are sometimes
vague and may be subject to future changes, and their official interpretation and enforcement may involve substantial uncertainty. The
PRC legal system is evolving rapidly and the interpretations of many laws, regulations and rules may contain inconsistencies and enforcement
of these laws, regulations and rules involves uncertainties. The effectiveness and interpretation of newly enacted laws or regulations,
including amendments to existing laws and regulations, may be delayed, and our business may be affected if we rely on laws and regulations
which are subsequently adopted or interpreted in a manner different from our understanding of these laws and regulations. New laws and
regulations that affect existing and proposed future businesses may also be applied retroactively. We cannot predict what effect the interpretation
of existing or new PRC laws or regulations may have on our business.
You may experience difficulties in effecting
service of legal process, enforcing foreign judgments, or bringing actions in China against us or our management named in the reporting
based on foreign laws.
As a company incorporated under the laws of the
Cayman Islands, we conduct a majority of our operations in China and a majority of our assets are located in China. In addition, almost
all our senior executive officers reside within China for a significant portion of the time and are PRC nationals. As a result, it may
be difficult for you to effect service of process upon those persons inside mainland China. It may be difficult for you to enforce judgements
obtained in U.S. courts based on civil liability provisions of the U.S. federal securities laws against us and our officers and directors,
as none of them currently resides in the U.S. or has substantial assets in the U.S. In addition, there is uncertainty as to whether the
courts of the Cayman Islands or the PRC would recognize or enforce judgments of U.S. courts against us or such persons predicated upon
the civil liability provisions of the securities laws of the U.S. or any state.
The recognition and enforcement of foreign judgments
are provided for under the PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements
of the PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on principles of
reciprocity between jurisdictions. China does not have any treaties or other forms of written arrangement with the United States that
provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, the
PRC courts will not enforce a foreign judgment against us or our directors and officers if they decide that the judgment violates the
basic principles of PRC laws or national sovereignty, security, or public interest. As a result, it is uncertain whether and on what basis
a PRC court would enforce a judgment rendered by a court in the United States. See "Enforceability of Civil Liabilities."
U.S. regulatory bodies may be limited in
their ability to conduct investigations or inspections of our operations in China.
The SEC, the U.S. Department of Justice and other
U.S. authorities may also have difficulties in bringing and enforcing actions against us or our directors or executive officers in the
PRC. The SEC has stated that there are significant legal and other obstacles to obtaining information needed for investigations or litigation
in China. China has recently adopted a revised securities law that became effective on March 1, 2020, Article 177 of which provides, among
other things, that no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within
the territory of the PRC. Accordingly, without governmental approval in China, no entity or individual in China may provide documents
and information relating to securities business activities to overseas regulators when it is under direct investigation or evidence discovery
conducted by overseas regulators, which could present significant legal and other obstacles to obtaining information needed for investigations
and litigation conducted outside of China.
32
Increases in labor costs in the PRC may
adversely affect our business and our profitability.
China's economy has experienced increases
in labor costs in recent years. China's overall economy and the average wage in China are expected to continue to grow. The average
wage level for our employees has also increased in recent years. We expect that our labor costs, including wages and employee benefits,
will continue to increase. Unless we are able to pass on these increased labor costs to our customers by increasing prices for our services,
our profitability and results of operations may be materially and adversely affected.
In addition, we have been subject to stricter
regulatory requirements in terms of entering into labor contracts with our employees and paying various statutory employee benefits, including
pensions, housing fund, medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance to designated
government agencies for the benefit of our employees. Pursuant to the PRC Labor Contract Law that became effective in January 2008 and
its amendments that became effective in July 2013 and its implementing rules that became effective in September 2008, employers are subject
to stricter requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining the term of employees'
probation, and unilaterally terminating labor contracts. In the event that we decide to terminate some of our employees or otherwise change
our employment or labor practices, the Labor Contract Law and its implementation rules may limit our ability to effect those changes in
a desirable or cost-effective manner, which could adversely affect our business and results of operations.
As the interpretation and implementation of labor-related
laws and regulations are still evolving, we cannot assure you that our employment practice does not and will not violate labor-related
laws and regulations in China, which may subject us to labor disputes or government investigations. If we are deemed to have violated
relevant labor laws and regulations, we could be required to provide additional compensation to our employees and our business, financial
condition and results of operations could be materially and adversely affected.
PRC regulations relating to offshore investment
activities by PRC residents may subject our PRC resident beneficial owners or the PRC operating entities to liability or penalties, limit
our ability to inject capital into the PRC Operating Entities, limit the PRC Operating Entities' ability to increase their registered
capital or distribute profits to us, or may otherwise adversely affect us.
On July 4, 2014, State Administration of Foreign
Exchange ("SAFE") issued the Circular on Issues Concerning Foreign Exchange Control over the Overseas Investment and Financing
and Round-trip Investment by Domestic Residents via Special Purpose Vehicles, or "SAFE Circular 37." According to SAFE Circular
37, prior registration with the local SAFE branch is required for PRC residents, (including PRC individuals and PRC corporate entities
as well as foreign individuals that are deemed PRC residents for foreign exchange administration purpose), in connection with their direct
or indirect contribution of domestic assets or interests to offshore special purpose vehicles, or "SPVs." SAFE Circular 37
further requires amendments to the SAFE registrations in the event of any changes with respect to the basic information of the offshore
SPV, such as change of a PRC individual shareholder, name and operation term, or any significant changes with respect to the offshore
SPV, such as an increase or decrease of capital contribution, share transfer or exchange, or mergers or divisions. SAFE Circular 37 is
applicable to our shareholders who are PRC residents and may be applicable to any offshore acquisitions that we make in the future. In
February 2015, SAFE promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment,
or "SAFE Notice 13," effective in June 2015. Under SAFE Notice 13, applications for foreign exchange registration of inbound
foreign direct investments and outbound overseas direct investments, including those required under SAFE Circular 37, will be filed with
qualified banks instead of SAFE. The qualified banks will directly examine the applications and accept registrations under the supervision
of SAFE.
33
In addition to SAFE Circular 37 and SAFE Notice
13, our ability to conduct foreign exchange activities in China may be subject to the interpretation and enforcement of the Implementation
Rules of the Administrative Measures for Individual Foreign Exchange promulgated by SAFE in January 2007 (as amended and supplemented,
the "Individual Foreign Exchange Rules"). Under the Individual Foreign Exchange Rules, any PRC individual seeking to make
a direct investment overseas or engage in the issuance or trading of negotiable securities or derivatives overseas must make the appropriate
registrations in accordance with SAFE provisions, the failure of which may subject such PRC individual to warnings, fines, or other liabilities.
Our current shareholders, Qiaoling Lu, Yiheng
Guo, Hua Wang and Jianxiu Li, who are subject to SAFE Circular 37 and the Individual Foreign Exchange Rules, have completed the initial
registrations with the qualified banks as required by the regulations. We may not be informed of the identities of all the PRC residents
holding direct or indirect interest in our company, however, and we have no control over any of our future beneficial owners. Thus, we
cannot provide any assurance that our current or future PRC resident beneficial owners will comply with our request to make or obtain
any applicable registrations or continuously comply with all registration procedures set forth in these SAFE regulations. Such failure
or inability of our PRC residents beneficial owners to comply with these SAFE regulations may subject us or our PRC resident beneficial
owners to fines and legal sanctions, restrict our cross-border investment activities, or limit the PRC Operating Entities' ability
to distribute dividends to or obtain foreign-exchange-dominated loans from us, or prevent us from being able to make distributions or
pay dividends, as a result of which our business operations and our ability to distribute profits to you could be materially and adversely
affected.
Fluctuations in exchange rates could have
a material and adverse effect on our results of operations and the value of your investment.
The value of the RMB against the U.S. dollar and
other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions in China and by China's
foreign exchange policies. On July 21, 2005, the PRC government changed its decade-old policy of pegging the value of the RMB to the U.S.
dollar, and the RMB appreciated more than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010,
this appreciation halted and the exchange rate between the RMB and the U.S. dollar remained within a narrow band. Since June 2010, the
RMB has fluctuated against the U.S. dollar, at times significantly and unpredictably. It is difficult to predict how market forces or
PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. Since we sell a majority
of the products of our brand partners in the U.S., the fluctuations in exchange rates would have a negative effect on our business and
results of operations and financial condition.
Our business is conducted in the PRC, and our
books and records are maintained in RMB, which is the currency of the PRC. The financial statements that we file with the SEC and provide
to our shareholders are presented in U.S. dollars. Changes in the exchange rates between the RMB and U.S. dollar affect the value of our
assets and the results of our operations, when presented in U.S. dollars. The value of the RMB against the U.S. dollar and other currencies
may fluctuate and is affected by, among other things, changes in the PRC's political and economic conditions and perceived changes
in the economy of the PRC and the United States. Any significant revaluation of the RMB may materially and adversely affect our cash flows,
revenue, and financial condition. Further, our Ordinary Shares offered by our initial public offering were offered in U.S. dollars, we
will need to convert the net proceeds we receive into RMB in order to use the funds for our business. Changes in the conversion rate among
the U.S. dollar and the RMB will affect the amount of proceeds we will have available for our business.
Very limited hedging options are available in
China to reduce our exposure to exchange rate fluctuations. To date, we have not entered into any hedging transactions in an effort to
reduce our exposure to foreign currency exchange risk. While we may decide to enter into more hedging transactions in the future, the
availability and effectiveness of these hedges may be limited and we may not be able to adequately hedge our exposure or at all. In addition,
our currency exchange losses may be magnified by PRC exchange control regulations that restrict our ability to convert RMB into foreign
currency. As a result, fluctuations in exchange rates may have a material adverse effect on your investment.
34
Under the PRC Enterprise Income Tax Law,
we may be classified as a PRC "resident enterprise" for PRC enterprise income tax purposes. Such classification would likely
result in unfavorable tax consequences to us and our non-PRC shareholders and have a material adverse effect on our results of operations
and the value of your investment.
Under the PRC Enterprise Income Tax Law,
or the "EIT Law," that became effective in January 2008, an enterprise established outside the PRC with "de facto management
bodies" within the PRC is considered a "resident enterprise" for PRC enterprise income tax purposes and is generally
subject to a uniform 25% enterprise income tax rate on its worldwide income. Under the implementation rules to the EIT Law, a "de
facto management body" is defined as a body that has material and overall management and control over the manufacturing and business
operations, personnel and human resources, finances, and properties of an enterprise. In addition, a circular, known as SAT Circular 82,
issued in April 2009 by the State Administration of Taxation, or the "SAT," specifies that certain offshore incorporated enterprises
controlled by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or
resident in the PRC: senior management personnel and departments that are responsible for daily production, operation and management;
financial and personnel decision making bodies; key properties, accounting books, company seal, and minutes of board meetings and shareholders'
meetings; and half or more of the senior management or directors having voting rights. Further to SAT Circular 82, the SAT issued a bulletin,
known as SAT Bulletin 45, which took effect in September 2011, to provide more guidance on the implementation of SAT Circular 82 and clarify
the reporting and filing obligations of such "Chinese-controlled offshore incorporated resident enterprises." SAT Bulletin
45 provides procedures and administrative details for the determination of resident status and administration on post-determination matters.
Although both SAT Circular 82 and SAT Bulletin 45 only apply to offshore enterprises controlled by PRC enterprises or PRC enterprise groups,
not those controlled by PRC individuals or foreign individuals, the determining criteria set forth in SAT Circular 82 and SAT Bulletin
45 may reflect the SAT's general position on how the "de facto management body" test should be applied in determining
the tax resident status of offshore enterprises, regardless of whether they are controlled by PRC enterprises, PRC enterprise groups,
or by PRC or foreign individuals.
If the PRC tax authorities determine that the
actual management organ of Sentage Holdings is within the territory of China, Sentage Holdings may be deemed to be a PRC resident enterprise
for PRC enterprise income tax purposes and a number of unfavorable PRC tax consequences could follow. First, we will be subject to the
uniform 25% enterprise income tax on our worldwide income, which could materially reduce our net income. In addition, we will also be
subject to PRC enterprise income tax reporting obligations. Finally, dividends payable by us to our investors and gains on the sale of
our shares may become subject to PRC withholding tax, at a rate of 10% in the case of non-PRC enterprises or 20% in the case of non-PRC
individuals (in each case, subject to the provisions of any applicable tax treaty), if such gains are deemed to be from PRC sources. It
is unclear whether non-PRC shareholders of our company would be able to claim the benefits of any tax treaties between their country of
tax residence and the PRC in the event that we are treated as a PRC resident enterprise. Any such tax may reduce the returns on your investment
in our shares. As of the date of this annual report, Sentage Holdings has not been notified or informed by the PRC tax authorities that
it has been deemed to be a resident enterprise for the purpose of the EIT Law, however we cannot assure you that it will not be deemed
to be a resident enterprise in the future.
Our PRC operating entities are subject to
restrictions on paying dividends or making other payments to us, which may have a material adverse effect on our ability to conduct our
business.
We are a holding company incorporated in the Cayman
Islands. We may need dividends and other distributions on equity from our PRC operating entities to satisfy our liquidity requirements.
Current PRC regulations permit our PRC operating entities to pay dividends to us only out of its accumulated profits, if any, determined
in accordance with PRC accounting standards and regulations. In addition, our PRC operating entities are required to set aside at least
10% of its respective accumulated profits each year, if any, to fund certain statutory reserves until the total amount set aside reaches
50% of their respective registered capital. Our PRC operating entities may also allocate a portion of its respective after-tax profits
based on PRC accounting standards to employee welfare and bonus funds at its discretion. These reserves are not distributable as cash
dividends. These limitation on the ability of our PRC operating entities to pay dividends or make other distributions to us could materially
and adversely limit our ability to grow, make investments, or acquisitions that could be beneficial to our business, pay dividends, or
otherwise fund and conduct our business.
35
We face uncertainty with respect to indirect
transfers of equity interests in PRC resident enterprises by their non-PRC holding companies.
In February 2015, SAT issued a Public Notice Regarding
Certain Corporate Income Tax Matters on Indirect Transfer of Properties by Non-Tax Resident Enterprises, or "SAT Circular 7."
SAT Circular 7 provides comprehensive guidelines relating to indirect transfers of PRC taxable assets (including equity interests and
real properties of a PRC resident enterprise) by a non-resident enterprise. In addition, in October 2017, SAT issued an Announcement on
Issues Relating to Withholding at Source of Income Tax of Non-resident Enterprises, or "SAT Circular 37," effective in December
2017 and amended in June 2018, which, among others, amended certain provisions in SAT Circular 7 and further clarify the tax payable declaration
obligation by non-resident enterprise. Indirect transfer of equity interest and/or real properties in a PRC resident enterprise by their
non-PRC holding companies are subject to SAT Circular 7 and SAT Circular 37.
SAT Circular 7 provides clear criteria for an
assessment of reasonable commercial purposes and has introduced safe harbors for internal group restructurings and the purchase and sale
of equity through a public securities market. As stipulated in SAT Circular 7, indirect transfers of PRC taxable assets are considered
as reasonable commercial purposes if the shareholding structure of both transaction parties falls within the following situations: i)
the transferor directly or indirectly owns 80% or above equity interest of the transferee, or vice versa; ii) the transferor and the transferee
are both 80% or above directly or indirectly owned by the same party; iii) the percentage in bullet point i) and ii) shall be 100% if
over 50% the share value of a foreign enterprise is directly or indirectly derived from PRC real properties. Furthermore, SAT Circular
7 also brings challenges to both foreign transferor and transferee (or other person who is obligated to pay for the transfer) of taxable
assets. Where a non-resident enterprise transfers PRC taxable assets indirectly by disposing of the equity interests of an overseas holding
company, which is an indirect transfer, the non-resident enterprise as either transferor or transferee, or the PRC entity that directly
owns the taxable assets, may report such indirect transfer to the relevant tax authority and the PRC tax authority may disregard the existence
of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding,
or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee
or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes, currently at a rate of 10% for
the transfer of equity interests in a PRC resident enterprise.
According to SAT Circular 37, where the non-resident
enterprise fails to declare the tax payable pursuant to Article 39 of the EIT Law, the tax authority may order it to pay the tax due within
required time limits, and the non-resident enterprise shall declare and pay the tax payable within such time limits specified by the tax
authority. If the non-resident enterprise, however, voluntarily declares and pays the tax payable before the tax authority orders it to
do so within required time limits, it shall be deemed that such enterprise has paid the tax in time.
We face uncertainties as to the reporting and
assessment of reasonable commercial purposes and future transactions where PRC taxable assets are involved, such as offshore restructuring,
sale of the shares in our offshore subsidiaries, and investments. In the event of being assessed as having no reasonable commercial purposes
in an indirect transfer transaction, we may be subject to filing obligations or taxed if we are a transferor in such transactions, and
may be subject to withholding obligations (to be specific, a 10% withholding tax for the transfer of equity interests) if we are a transferee
in such transactions, under SAT Circular 7 and SAT Circular 37. For transfer of shares by investors who are non-PRC resident enterprises,
the PRC operating entities may be requested to assist in the filing under the SAT circulars. As a result, we may be required to expend
valuable resources to comply with the SAT circulars or to request the relevant transferors from whom we purchase taxable assets to comply
with these circulars, or to establish that we should not be taxed under these circulars, which may have a material adverse effect on our
financial condition and results of operations.
Governmental control of currency conversion
may affect the value of your investment and our payment of dividends.
The PRC government imposes controls on the convertibility
of the RMB into foreign currencies and, in certain cases, the remittance of currency out of China. We receive substantially all of our
revenue in the RMB. Under our current corporate structure, Sentage Holdings may rely on dividend payments from our PRC subsidiary, Sentage
WFOE, to fund any cash and financing requirements we may have. Under existing PRC foreign exchange regulations, payments of current account
items, such as profit distributions and trade and service-related foreign exchange transactions, can be made in foreign currencies without
prior approval from SAFE by complying with certain procedural requirements. Therefore, Sentage WFOE is able to pay dividends in foreign
currencies to us without prior approval from SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies
with certain procedures under PRC foreign exchange regulation, such as the overseas investment registrations by our shareholders or the
ultimate shareholders of our corporate shareholders who are PRC residents. Approval from or registration with appropriate government authorities
is, however, required where the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as
the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future
to foreign currencies for current account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign
currencies to satisfy our foreign currency demand, we may not be able to pay dividends in foreign currencies to our shareholders.
36
There are significant uncertainties under
the PRC Enterprise Income Tax Law relating to the withholding tax liabilities of the PRC Operating Entities, and dividends payable by
the PRC operating entities to our offshore subsidiaries may not qualify to enjoy certain treaty benefits.
Under the EIT Law and its implementation rules,
the profits of a foreign invested enterprise generated through operations, which are distributed to its immediate holding company outside
the PRC, will be subject to a withholding tax rate of 10%. Pursuant to the Arrangement between the Mainland China and the Hong Kong Special
Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the "Double Tax Avoidance Arrangement,"
a withholding tax rate of 10% may be lowered to 5% if the PRC enterprise is at least 25% held by a Hong Kong enterprise for at least 12
consecutive months prior to distribution of the dividends and is determined by the relevant PRC tax authority to have satisfied other
conditions and requirements under the Double Tax Avoidance Arrangement and other applicable PRC laws.
However, based on the Circular on Certain Issues
with Respect to the Enforcement of Dividend Provisions in Tax Treaties, or the "SAT Circular 81," which became effective on
February 20, 2009, if the relevant PRC tax authorities determine, in their discretion, that a company benefits from such reduced income
tax rate due to a structure or arrangement that is primarily tax-driven, such PRC tax authorities may adjust the preferential tax treatment.
According to Circular on Several Issues regarding the "Beneficial Owner" in Tax Treaties, which became effective as of April
1, 2018, when determining an applicant's status as the "beneficial owner" regarding tax treatments in connection with
dividends, interests, or royalties in the tax treaties, several factors will be taken into account. Such factors include whether the business
operated by the applicant constitutes actual business activities, and whether the counterparty country or region to the tax treaties does
not levy any tax, grant tax exemption on relevant incomes, or levy tax at an extremely low rate. This circular further requires any applicant
who intends to be proved of being the "beneficial owner" to file relevant documents with the relevant tax authorities. Our
PRC subsidiary is wholly owned by our Hong Kong subsidiary. However, we cannot assure you that our determination regarding our qualification
to enjoy the preferential tax treatment will not be challenged by the relevant PRC tax authority or we will be able to complete the necessary
filings with the relevant PRC tax authority and enjoy the preferential withholding tax rate of 5% under the Double Tax Avoidance Arrangement
with respect to dividends to be paid by Senage WFOE to our Hong Kong subsidiary, in which case, we would be subject to the higher withdrawing
tax rate of 10% on dividends received.
The "Opinions on Severely Cracking
Down on Illegal Securities Activities According to Law," or the "Opinions," recently issued by the General Office of
the Central Committee of the Communist Party of China and the General Office of the State Council may subject us to additional compliance
requirement in the future.
Recently, the General Office of the Central Committee
of the Communist Party of China and the General Office of the State Council jointly issued the Opinions, which were made available to
the public on July 6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities and the
supervision on overseas listings by China-based companies. The Opinions proposed to take effective measures, such as promoting the construction
of relevant regulatory systems, to deal with the risks and incidents facing China-based overseas-listed companies and the demand for cybersecurity
and data privacy protection. The aforementioned policies and any related implementation rules to be enacted may subject us to additional
compliance requirement in the future. As the Opinions were recently issued, official guidance and interpretation of the Opinions remain
unclear in several respects at this time. Therefore, we cannot assure you that we will remain fully compliant with all new regulatory
requirements of the Opinions or any future implementation rules on a timely basis, or at all.
37
Recent greater oversight by the Cyberspace
Administration of China ("CAC") over data security, particularly for companies seeking to list on a foreign exchange, could
adversely impact our business.
On June 10, 2021, the Standing Committee of the
National People's Congress of China, or the SCNPC, promulgated the PRC Data Security Law (《中华人民共和国数据安全法》),
which became effective in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities and individuals
carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance of data
in economic and social development, and the degree of harm it will cause to national security, public interests, or legitimate rights
and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC
Data Security Law also provides for a national security review procedure for data activities that may affect national security and imposes
export restrictions on certain data and information.
On July 10, 2021, the CAC issued the Circular
on Seeking Comments on Cybersecurity Review Measures (Revised Draft for Comments) (the "Review Measures Draft") (《网络安全审查办法（修订草案征求意见稿）》),
which required, among others, in addition to any "critical information infrastructure operators ("CIIOs")," any
"data processor" controlling personal information of no less than one million users which seeks to list in a foreign stock
exchange should also be subject to cybersecurity review.
On August 20, 2021, the Standing Committee of
the National People's Congress Standing Committee of the National People's Congress issued The Personal Information Protection
Law of the PRC (《中华人民共和国个人信息保护法》),
effective on November 1, 2021. It provides that critical information infrastructure operators ("CIIOs") and personal information
processors whose quantity of processing of personal information reaches that as prescribed by the CAC must store personal information
collected and generated within the territory of the People's Republic of China. Where it is necessary to provide such information
and data to an overseas party, such provision are required to pass the security evaluation organized by the CAC, unless otherwise waived
by laws or administrative regulations.
On November 14, 2021, the CAC published the Network
Internet Data Protection Draft Regulations (draft for comments), (《网络数据安全管理条例（征求意见稿）》),
and accepted public comments until December 13, 2021. The Network Internet Data Protection Draft Regulations provides that data processors
refer to individuals or organizations that autonomously determine the purpose and the manner of processing data. If a data processor that
processes the personal data of more than one million users intends to list overseas, it shall apply for a cybersecurity review. In addition,
data processors that process important data or are listed overseas shall carry out an annual data security assessment on their own or
by engaging a data security services institution, and the data security assessment report for the prior year should be submitted to the
local cyberspace affairs administration department before January 31 of each year.
Later on, December 28, 2021, the CAC and other
relevant PRC governmental authorities jointly promulgated the Cybersecurity Review Measures Transfer (《网络安全审查办法》),
which took effect on February 15, 2022. The Cybersecurity Review Measures provide that, in addition to CIIOs that intend to purchase Internet
products and services, net platform operators engaging in data processing activities that affect or may affect national security must
be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity Review Measures, a cybersecurity
review assesses potential national security risks that may be brought about by any procurement, data processing, or overseas listing.
The Cybersecurity Review Measures require that an online platform operator which possesses the personal information of at least one million
users must apply for a cybersecurity review by the CAC if it intends to be listed in foreign countries.
On July 7, 2022, the CAC published the Measures
for the Security Assessment of Outbound Data Transfer (《数据出境安全评估办法》),
which effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People's Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file to the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than one
million individuals transfers personal information abroad；(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or；(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration.
38
As advised by our PRC counsel, Dentons, the operations
of the PRC operating entities and our continued listing will not be affected and that we will not be subject to cybersecurity review by
the CAC, given that the PRC operating entities (i) possess personal data of fewer than one million individual clients; (ii) do not collect
data that affects or may affect national security in their business operations, as of the date of this annual report; and (iii) do not
anticipate that they will be collecting over one million users' personal information or data that affects or may affect national
security in the near future. However, as uncertainties remain regarding the interpretation and implementation of these laws and regulations,
we cannot assure you that we will comply with such regulations in all respects, and we may be ordered to rectify or terminate any actions
that are deemed illegal by regulatory authorities. We may also become subject to fines and/or other sanctions and the costs of compliance
with, and other burdens imposed by such laws and regulations may limit the use and adoption of our products, which may have material adverse
effects on our business, operations, and financial condition.
If we become directly subject to the scrutiny,
criticism, and negative publicity involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate
and resolve the matter which could harm our business operations, stock price, and reputation.
U.S. public companies that have substantially
all of their operations in China have been the subject of intense scrutiny, criticism, and negative publicity by investors, financial
commentators, and regulatory agencies, such as the SEC. Much of the scrutiny, criticism, and negative publicity has centered on financial
and accounting irregularities and mistakes, a lack of effective internal controls over financial accounting, inadequate corporate governance
policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result of the scrutiny, criticism, and negative
publicity, the publicly traded stock of many U.S. listed Chinese companies sharply decreased in value and, in some cases, has become virtually
worthless. Many of these companies are now subject to shareholder lawsuits and SEC enforcement actions and are conducting internal and
external investigations into the allegations. It is not clear what effect this sector-wide scrutiny, criticism, and negative publicity
will have on us, our business, and the price of our Ordinary Shares. If we become the subject of any unfavorable allegations, whether
such allegations are proven to be true or untrue, we will have to expend significant resources to investigate such allegations and/or
defend our company. This situation will be costly and time consuming and distract our management from developing our business. If such
allegations are not proven to be groundless, we and our business operations will be severely affected and you could sustain a significant
decline in the value of our Ordinary Shares.
The disclosures in our reports and other
filings with the SEC and our other public pronouncements are not subject to the scrutiny of any regulatory bodies in the PRC.
We are regulated by the SEC, and our reports and
other filings with the SEC are subject to SEC review in accordance with the rules and regulations promulgated by the SEC under the Securities
Act and the Exchange Act. Our SEC reports and other disclosure and public pronouncements are not subject to the review or scrutiny of
any PRC regulatory authority. For example, the disclosure in our SEC reports and other filings are not subject to the review by China
Securities Regulatory Commission, a PRC regulator that is responsible for oversight of the capital markets in China. Accordingly, you
should review our SEC reports, filings, and our other public pronouncements with the understanding that no local regulator has done any
review of us, our SEC reports, other filings, or any of our other public pronouncements.
39
The recent joint statement by the SEC and
the PCAOB, rule changes by Nasdaq, and the Holding Foreign Companies Accountable Act and related regulations, all call for additional
and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially
the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to our continued listing or future
offerings of our securities in the U.S.
On April 21, 2020, SEC Chairman Jay Clayton and
PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated
with investing in companies based in or have substantial operations in emerging markets including China. The joint statement emphasized
the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China and higher risks of fraud in
emerging markets.
On May 18, 2020, Nasdaq filed three proposals
with the SEC to (i) apply a minimum offering size requirement for companies primarily operating in a "Restrictive Market,"
(ii) adopt a new requirement relating to the qualification of management or the board of directors for Restrictive Market companies, and
(iii) apply additional and more stringent criteria to an applicant or listed company based on the qualifications of the company's
auditor. On October 4, 2021, the SEC approved Nasdaq's revised proposal for the rule changes.
On May 20, 2020, the U.S. Senate passed the Holding
Foreign Companies Accountable Act requiring a foreign company to certify it is not owned or controlled by a foreign government if the
PCAOB is unable to audit specified reports because the company uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is
unable to inspect the company's auditors for three consecutive years, the issuer's securities are prohibited to trade on a
national exchange. On December 2, 2020, the U.S. House of Representatives approved the Holding Foreign Companies Accountable Act. On December
18, 2020, the Holding Foreign Companies Accountable Act was signed into law.
On March 24, 2021, the SEC adopted interim final
rules relating to the implementation of certain disclosure and documentation requirements of the Holding Foreign Companies Accountable
Act.
On September 22, 2021, the PCAOB adopted a final
rule implementing the Holding Foreign Companies Accountable Act, which provides a framework for the PCAOB to use when determining, as
contemplated under the Holding Foreign Companies Accountable Act, whether the board of directors of a company is unable to inspect or
investigate completely registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more
authorities in that jurisdiction.
On December 2, 2021, the SEC adopted amendments
to finalize rules implementing the submission and disclosure requirements in the Holding Foreign Companies Accountable Act.
On December 16, 2021, the PCAOB issued a Determination
Report on December 16, 2021 which found that the PCAOB is unable to inspect or investigate completely registered public accounting firms
headquartered in: (1) mainland China of the People's Republic of China because of a position taken by one or more authorities in
mainland China; and (2) Hong Kong, a Special Administrative Region and dependency of the PRC, because of a position taken by one or more
authorities in Hong Kong. In addition, the PCAOB's report identified the specific registered public accounting firms which are subject
to these determinations.
On August 26, 2022, the China Securities Regulatory
Commission (the "CSRC"), the Ministry of Finance of the PRC (the "MOF"), and the PCAOB signed a Statement of Protocol
(the "Protocol") governing inspections and investigations of audit firms based in mainland China and Hong Kong, taking the
first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms headquartered in mainland
China and Hong Kong. Pursuant to the fact sheet with respect to the Protocol disclosed by the SEC, the PCAOB shall have independent discretion
to select any issuer audits for inspection or investigation and has the unfettered ability to transfer information to the SEC.
40
On December 15, 2022, the PCAOB determined that
it was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and
Hong Kong and vacated its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate
the PCAOB's access in the future, the PCAOB may consider the need to issue a new determination.
On June 22, 2021, the U.S. Senate passed the Accelerating
Holding Foreign Companies Accountable Act, and on December 29, 2022, the Consolidated Appropriations Act 2023 was signed into law, which
contained, among other things, an identical provision to the Accelerating Holding Foreign Companies Accountable Act, which reduces the
number of consecutive non-inspection years required for triggering the prohibitions under the Holding Foreign Companies Accountable Act
from three years to two years.
Our auditor, Enrome LLP, the independent registered
public accounting firm that issues the audit report included elsewhere in this annual report, as an auditor of companies that are traded
publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which the PCAOB
conducts regular inspections to assess its compliance with the applicable professional standards and was not identified in the Determination
Report as a firm subject to the PCAOB's Determination. Enrome LLP is headquartered in Singapore, and can be inspected by the PCAOB.
However, we cannot assure you whether the national
securities exchange we are listed on or regulatory authorities would apply additional and more stringent criteria to us after considering
the effectiveness of our auditor's audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency
of resources, geographic reach, or experience as it relates to our audit. In addition, our Ordinary Shares may be delisted in the future
if the PCAOB is unable to inspect our accounting firm within two years.
The Chinese government exerts substantial
influence over the manner in which we must conduct our business, and may intervene or influence our operations at any time, which could
result in a material change in our operations, significantly limit or completely hinder our ability to offer or continue to offer securities
to investors, and cause the value of our Ordinary Shares to significantly decline or be worthless
The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations,
land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations
or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance
with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue to support
recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation of economic
policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest
ourselves of any interest we then hold in Chinese properties.
Recent statements made by the Chinese government
have indicated an intent to increase the government's oversight and control over offerings of companies with significant operations
in the PRC that are to be conducted in foreign markets, as well as foreign investment in China-based issuers. On February 17, 2023, the
China Securities Regulatory Commission (the "CSRC") released the Trial Administrative Measures of Overseas Securities Offering
and Listing by Domestic Companies (the "Trial Measures"), (《境内企业境外发行证券和上市管理试行办法》)
and five supporting guidelines (collectively, the "Overseas Listings Rules"), which has taken effect on March 31, 2023.
The Overseas Listing Rules aim to lay out the
filing regulation arrangement for both direct and indirect overseas listing and clarify the determination criteria for indirect overseas
listing in overseas markers. Where an enterprise whose principal business activities are conducted in the PRC seeks to issue and list
its shares in the name of an overseas enterprise based on equity, assets, income, or other similar rights and interests of the relevant
domestic enterprise in the PRC, such activities are deemed an indirect overseas issuance and listing.
41
According to the Overseas Listings Rules, after
the submission of relevant application for initial public offerings or listings in overseas markets, or after the completion of subsequent
securities offerings of an issuer in the same overseas market where it has previously offered and listed, or after the submission of relevant
application for subsequent securities offerings and listings of an issuer in other overseas markets than where it has offered and listed,
all China-based companies shall file the required filing materials with the CSRC within three working days. In addition, overseas offerings
and listings will be prohibited for such China-based companies when any of the following applies: (i) where such securities offerings
and listings are explicitly prohibited by the PRC laws and regulations; (ii) where the intended securities offerings and listings may
endanger national security as reviewed and determined by competent authorities under the State Council in accordance with laws; (iii)
where the domestic company intending to make the securities offering and listing, or its controlling shareholders and the actual controller,
have committed crimes such as corruption, bribery, embezzlement, misappropriation of property or undermining the order of the socialist
market economy during the latest three years; (iv) where the domestic company intending to make the securities offering and listing is
suspected of committing crimes or major violations of laws and regulations, and is under investigation according to law, and no conclusion
has yet been made thereof; or (v) where there are material ownership disputes over equity held by the domestic company's controlling
shareholder or by other shareholders that are controlled by the controlling shareholder and/or actual controller. The Trial Measures further
stipulate that a fine between RMB1 million (approximately $157,255) and RMB10 million (approximately $1,572,550) may be imposed if an
applicant fails to fulfill the filing requirements with the CSRC or conducts an overseas offering or listing in violation of the Overseas
Listings Rules.
As of the date of this annual report, we have
not received any formal inquiry, notice, warning, sanction, or any regulatory objection from the CSRC with respect to our listing or subsequent
offerings. As the Overseas Listings Rules were newly published and there exists uncertainty with respect to the filing requirements and
its implementation, if we are required to submit to the CRSC and complete the filing procedure of our subsequent overseas public offerings,
we cannot be sure that we will be able to complete such filings in a timely manner. Any failure or perceived failure by us to comply with
such filing requirements under the Overseas Listings Rules may result in forced corrections, warnings and fines against us and could materially
hinder our ability to offer or continue to offer our securities.
Notwithstanding the above, our PRC counsel has
further advised us that uncertainties still exist as to whether we, our subsidiaries,the VIEs to operate in China, or any of their subsidiaries
are required to obtain permissions from the CAC, the CSRC, or any other governmental agency that is required to approve our operations
and/or offering. We have been closely monitoring the development in the regulatory landscape in the PRC, particularly regarding the requirement
of approvals, including on a retrospective basis, from the CAC, the CSRC, or other PRC authorities with respect to this offering, as well
as other procedures that may be imposed on us. In the event that we, our subsidiaries, the VIEs, or any of their subsidiaries are subject
to the compliance requirements, we cannot assure you that any of these entities will be able to receive clearance of such compliance requirements
in a timely manner, or at all. Any failure of our Company, our subsidiaries, and the VIEs, or any of their subsidiaries to fully comply
with new regulatory requirements may subject us to regulatory actions, such as fines, relevant businesses or operations suspension for
rectification, revocation of relevant business permits or operational license, or other sanctions, which may significantly limit or completely
hinder our ability to offer or continue to offer our securities cause significant disruption to our business operations, severely damage
our reputation, materially and adversely affect our financial condition and results of operations and cause our securities to significantly
decline in value or become worthless.
42
We may be unable to complete a business
combination transaction efficiently or on favorable terms due to complicated merger and acquisition regulations and certain other PRC
regulations.
The Regulations on Mergers and Acquisitions of
Domestic Enterprises by Foreign Investors, or the M&A Rules, purport to require offshore special purpose vehicles that are controlled
by PRC companies or individuals and that have been formed for the purpose of seeking a public listing on an overseas stock exchange through
acquisitions of PRC domestic companies or assets to obtain CSRC approval prior to publicly listing their securities on an overseas stock
exchange. The interpretation and application of the regulations remain unclear. If a governmental approval of our continued listing is
required, it is uncertain how long it will take for us to obtain such approval, and, even if we obtain such approval, the approval could
be rescinded. Any failure to obtain, or a delay in obtaining, the requisite governmental approval for our continued listing, or a rescission
of such CSRC approval if it is obtained by us, may subject us to sanctions imposed by the relevant PRC regulatory authority, which could
include fines and penalties on the operations of the VIEs and their subsidiaries in China, restrictions or limitations on our ability
to pay dividends outside of China, and other forms of sanctions that may materially and adversely affect our business, financial condition,
and results of operations.
Our PRC counsel, Dentons, has advised us that,
based on its understanding of the current PRC laws and regulations, we are not subject to the CSRC's approval under the M&A
Rules for our continued listing, because (i) the CSRC currently has not issued any definitive rule or interpretation concerning whether
any continued listings are subject to this regulation; (ii) we currently control Sentage WFOE by virtue of Sentage HK acquiring 100% of
the equity interest of Sentage WFOE, which is not regulated by the M&A Rules. Sentage WFOE was established by means of direct investment
rather than by a merger with or an acquisition of any PRC domestic companies as defined under the M&A Rules. CSRC approval only applies
to overseas listings of SPVs that have used their existing or newly issued equity interest to acquire existing or newly issued equity
interest in PRC domestic companies (iii) no provision in the M&A Rules classifies the contractual arrangements under the VIE Agreements
as a type of acquisition transaction falling under the M&A Rules.
Our PRC counsel, Dentons, has further advised
us that there remains some uncertainty as to how the M&A Rules will be interpreted or implemented in the context of an overseas listing,
and its opinions summarized above are subject to any new laws, rules and regulations or detailed implementations and interpretations in
any form relating to the M&A Rules. We cannot assure you that relevant PRC governmental authorities, including the CSRC, would reach
the same conclusion as our PRC counsel, and hence, we may face regulatory actions or other sanctions from them.
43
To the extent cash or assets of our business,
or of the PRC Operating Entities, is in the PRC or Hong Kong, such cash or assets may not be available to fund operations or for other
use outside of the PRC or Hong Kong, due to interventions in or the imposition of restrictions and limitations by the PRC government to
the transfer of cash or assets.
The transfer of funds and assets among Sentage
Holdings, its Hong Kong and PRC subsidiaries, and the VIEs is subject to restrictions. The PRC government imposes controls on the conversion
of the RMB into foreign currencies and the remittance of currencies out of the PRC. In addition, the PRC Enterprise Income Tax Law and
its implementation rules provide that a withholding tax at a rate of 10% will be applicable to dividends payable by Chinese companies
to non-PRC-resident enterprises, unless reduced under treaties or arrangements between the PRC central government and the governments
of other countries or regions where the non-PRC resident enterprises are tax resident.
As of the date of this annual report, there are
no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including
funds from Hong Kong to the PRC), except for the transfer of funds involving money laundering and criminal activities. However, there
is no guarantee that the Hong Kong government will not promulgate new laws or regulations that may impose such restrictions in the future.
As a result of the above, to the extent cash or
assets of our business, or of the PRC Operating Entities, is in the PRC or Hong Kong, such funds or assets may not be available to fund
operations or for other use outside of the PRC or Hong Kong, due to interventions in or the imposition of restrictions and limitations
by the PRC government to the transfer of cash or assets.
Risks Related to Our Ordinary Shares
We may issue additional Ordinary Shares
or other equity securities without your approval, which would dilute your ownership interests and may depress the market price of our
Ordinary Shares.
We may issue additional Ordinary Shares or other
equity securities of equal or senior rank in the future for any reason or in connection with, among other things, future acquisitions
or repayment of outstanding indebtedness, without shareholder approval.
Our issuance of additional Ordinary Shares or
other equity securities of equal or senior rank would have the following effects:
●
our existing shareholders' proportionate ownership interest in us will decrease;
●
the amount of cash available per share, including for payment of dividends in the future, may decrease;
●
the relative voting strength of each previously outstanding share may be diminished; and
●
the market price of our Ordinary Shares may decline.
We are not expected to pay dividends on
our Ordinary Shares in the foreseeable future.
We are not expected to pay dividends on our Ordinary
Shares in the foreseeable future. Instead, for the foreseeable future, it is expected that we will continue to retain any earnings to
finance the development and expansion of its business, and not to pay any cash dividends on our Ordinary Shares. Consequently, you should
not rely on an investment in the Company as a source for any future dividend income.
44
Our board of directors has complete discretion
as to whether to distribute dividends, subject to applicable laws. Even if our board of directors decides to declare and pay dividends,
the timing, amount and form of future dividends, if any, will depend on, among other things, our future results of operations and cash
flow, our capital requirements and surplus, the amount of distributions, if any, received by us from our subsidiaries, our financial condition,
contractual restrictions and other factors deemed relevant by our board of directors. Accordingly, the return on your investment in our
Ordinary Shares will likely depend entirely upon any future price appreciation of our Ordinary Shares. We cannot guarantee that our Ordinary
Shares will appreciate in value or even maintain the price at which you purchased the Ordinary Shares. You may not realize a return on
your investment in our Ordinary Shares and you may even lose your entire investment in our Ordinary Shares.
We may become a passive foreign investment
company, which could result in adverse United States federal income tax consequences to United States investors.
Based on the projected composition of our income
and valuation of our assets, we are not expected to be a passive foreign investment company ("PFIC") for its current taxable
year, and we do not expect to become one in the future, although there can be no assurance in this regard. Although we do not expect to
be a PFIC, it is not entirely clear how the contractual arrangements between our Company and the VIEs will be treated for purposes of
the PFIC rules. If it were determined that we do not own the stock of the VIEs for U.S. federal income tax purposes (for instance, because
the relevant PRC authorities do not respect these arrangements), we may be treated as a PFIC. See "Item 10. Additional Information—E.
Taxation—U.S. Holders—
Passive Foreign Investment Company
." If we are or were to become a PFIC, such characterization
could result in adverse United States federal income tax consequences to you if you are a U.S. investor. For example, if we are a PFIC,
its U.S. investors will become subject to increased tax liabilities under U.S. federal income tax laws and regulations and will become
subject to burdensome reporting requirements. We cannot assure you that we will not be a PFIC for our current taxable year or any future
taxable year.
Our amended and restated memorandum and
articles of association contains anti-takeover provisions that could have a material adverse effect on the rights of holders of our Ordinary
Shares.
Our amended and restated memorandum and articles
of association include provisions to limit the ability of others to acquire control of us or cause us to engage in change-of-control transactions.
These provisions could have the effect of depriving our shareholders of an opportunity to sell their shares at a premium over prevailing
market prices by discouraging third parties from seeking to obtain control of us in a tender offer or similar transaction. For example,
our board of directors has the authority, subject to any resolution of the shareholders to the contrary, to issue preference shares in
one or more series and to fix their designations, powers, preferences, privileges, and relative participating, optional or special rights
and the qualifications, limitations or restrictions, including dividend rights, conversion rights, voting rights, terms of redemption
and liquidation preferences, any or all of which may be greater than the rights associated with our Ordinary Shares. Preference shares
could be issued quickly with terms calculated to delay or prevent a change in control of the Company or make removal of management more
difficult. If our board of directors decides to issue preference shares, the price of our Ordinary Shares may fall and the voting and
other rights of the holders of our Ordinary Shares may be materially and adversely affected.
You may face difficulties in protecting
your interests, and your ability to protect your rights through U.S. courts may be limited, because we were formed under Cayman Islands
law.
We are an exempted company incorporated under
the laws of the Cayman Islands. Our corporate affairs are governed by our amended and restated memorandum and articles of association,
the Companies Act of the Cayman Islands and the common law of the Cayman Islands. The rights of our shareholders to take action against
our directors, actions by our minority shareholders and the fiduciary duties of our directors to us under Cayman Islands law are to a
large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively
limited judicial precedents in the Cayman Islands as well as from the common law of England, the decisions of whose courts are of persuasive
authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors
under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedents in some jurisdictions in
the United States. In particular, the Cayman Islands has a less developed body of securities laws than the United States. Some U.S.
states, such as Delaware, have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition,
Cayman Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States.
45
Shareholders of Cayman Islands exempted companies
have no general rights under the Cayman Islands law to inspect corporate records or to obtain copies of lists of shareholders of these
companies. Our directors have the discretion under our amended and restated memorandum and articles of association to determine whether
or not, and under what conditions, our corporate records may be inspected by shareholders, but are not obliged to make them available
to shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder
motion or to solicit proxies from other shareholders in connection with a proxy contest.
Certain corporate governance practices in the
Cayman Islands differ significantly from requirements for companies incorporated in other jurisdictions such as the U.S. To the extent
we choose to follow home country practice, shareholders may be afforded less protection than they otherwise would have under rules and
regulations applicable to U.S. domestic issuers.
The Cayman Islands courts are also unlikely (i) to
recognize or enforce against us judgments of courts of the United States based on certain civil liability provisions of U.S. securities
laws, or (ii) to impose liabilities against us, in original actions brought in the Cayman Islands, based on certain civil liability
provisions of U.S. securities laws that are penal in nature.
There is no statutory recognition in the Cayman
Islands of judgments obtained in the United States, although the courts of the Cayman Islands will in certain circumstances recognize
and enforce a non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits.
As a result of all of the above, our shareholders
may have more difficulty in protecting their interests in the face of actions taken by our management, members of our board of directors
or shareholders than they would as shareholders of a company incorporated in the United States.
46
Certain judgments obtained against us by
our shareholders may not be enforceable.
We are a Cayman Islands company and all of our
assets are located outside of the United States. All of our current operations are conducted in the PRC. In addition, the majority of
our officers and directors are nationals and residents of countries other than the United States and all of their assets are located outside
the United States. As a result, it may be difficult or impossible for you to bring an action against us or against these individuals in
the United States in the event that you believe that your rights have been infringed under the U.S. federal securities laws or otherwise.
Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and of the PRC may render you unable to
enforce a judgment against our assets or the assets of our directors and officers. For more information regarding the relevant laws of
the Cayman Islands and the PRC.
We are a foreign private issuer within the
meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to United States domestic public
companies.
Because we are a foreign private issuer under
the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable
to U.S. domestic issuers, including:
●
the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q or current reports on Form 8-K with the SEC;
●
the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act;
●
the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and
●
the selective disclosure rules by issuers of material nonpublic information under Regulation FD.
We are required to file an annual report on Form
20-F within four months of the end of each fiscal year. In addition, we intend to publish our results on a quarterly basis through press
releases, distributed pursuant to the rules and regulations of the Nasdaq. Press releases relating to financial results and material events
will also be furnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less
extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded
the same protections or information, which would be made available to you, were you investing in a U.S. domestic issuer.
As a company incorporated in the Cayman
Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly
from Nasdaq corporate governance listing standards; these practices may afford less protection to shareholders than they would enjoy if
we complied fully with Nasdaq corporate governance listing standards
.
As a Cayman Islands company listed on the Nasdaq,
we are subject to Nasdaq corporate governance listing standards. However, the Nasdaq rules permit a foreign private issuer like us to
follow the corporate governance practices of its home country. Certain corporate governance practices in the Cayman Islands, which is
our home country, may differ significantly from Nasdaq corporate governance listing standards. A Cayman Islands company is not required
to have annual general meetings. Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands
law to inspect corporate records or to obtain copies of lists of shareholders of these companies. Our directors have discretion under
our articles of association to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders,
but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed
to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest.
To the extent we choose to follow home country practice with respect to corporate governance matters such as the exemption from holding
an annual general meeting pursuant to Nasdaq Rule 5620(a), our shareholders may be afforded less protection than they otherwise would
under rules and regulations applicable to U.S. domestic issuers. For details as to the corporate governance matters for which we have
elected to follow our home country practices, rather than Nasdaq listing standards, please see "Item 16.G—Corporate Governance."
47
We have incurred and will continue to incur
increased costs as a result of being a public company
.
We are a public company and we incur significant
accounting, legal and other expenses. The Sarbanes-Oxley Act, as well as rules subsequently implemented by the SEC and the Nasdaq, have
detailed requirements concerning corporate governance practices of public companies, including Section 404 of the Sarbanes-Oxley Act of
2002 relating to internal controls over financial reporting. These rules and regulations applicable to public companies have increased
our accounting, legal and financial compliance costs and made certain corporate activities more time-consuming and costly. Our management
is required to devote substantial time and attention to our public company reporting obligations and other compliance matters. Our reporting
and other compliance obligations as a public company may place a strain on our management, operational and financial resources and systems
for the foreseeable future.
In the past, shareholders of a public company
often brought securities class action suits against the company following periods of instability in the market price of that company's
securities. If we were involved in a class action suit, it could divert a significant amount of our management's attention and other
resources from our business and operations, which could harm our results of operations and require us to incur significant expenses to
defend the suit. Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital
in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could have
a material adverse effect on our financial condition and results of operations.
ITEM 4. INFORMATION ON THE COMPANY
A.
History and Development of the Company
Sentage Holdings Inc. ("Sentage Holdings")
was incorporated on September 16, 2019, under the laws of the Cayman Islands. Sentage Hongkong Limited ("Sentage HK") was
incorporated on September 25, 2019 in Hong Kong as a wholly owned subsidiary of Sentage Holdings.
On December 17, 2019, Shanghai Santeng Technology
Co., Ltd. ("Sentage WFOE") was incorporated pursuant to PRC laws as a wholly foreign owned enterprise. Sentage HK holds 100%
of the equity interests in Sentage WFOE. Due to PRC laws and regulations on foreign ownership and investment in companies that engage
in certain businesses including third-party payment services, we conduct our businesses in China through a VIE structure.
We currently operate three lines of business in
loan repayment and collection management, loan recommendation, and prepaid payment network through three of the Sentage Operating Companies,
Daxin Wealth, Daxin Zhuohui, and Qingdao Buytop, pursuant to a series of contractual arrangements, also known as VIE Agreements. As of
the date of this annual report, Zhenyi, another VIE and Sentage Operating Company, is not engaged in active business operation but is
expected to provide us with technical and system development and support in the future. All the Sentage Operating Companies were incorporated
as limited companies pursuant to PRC laws. Specifically, Daxin Wealth and Daxin Zhuohui are engaged in the loan repayment and collection
management business, Daxin Zhuohui provides loan recommendation services, and Qingdao Buytop provides prepaid payment network services.
On July 9, 2021, our Ordinary Shares were listed
on the Nasdaq Capital Market under the symbol "SNTG."
On July 13, 2021,
we closed our initial public offering ("IPO") of 4,000,000 Ordinary Shares
, or
800,000
Ordinary Shares reflecting the 1-for-5 share consolidation that took effect on August 10, 2022, pursuant to the registration statement
on Form F-1 (File No.333-254558).
The SEC maintains a website at www.sec.gov that
contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC using
its EDGAR system. Investors may also find more information about us on our website at www.sentageholdings.com.
48
B. Business Overview
Sentage Holdings is not an operating company but
a Cayman Islands holding company. The Company's operations are conducted through Sentage Operating Companies, or the VIEs, based
in China, pursuant to the VIE Agreements. The VIE structure is not used to provide contractual exposure to foreign investment in China-based
companies where Chinese law prohibits direct foreign investment in the operating companies, rather we use the VIE structure because the
Chinese laws and regulations affecting Sentage Operating Companies' businesses are vague and unclear. Sentage Operating Companies
engage in (i) consumer loan repayment and collection management service, (ii) loan recommendation service, and (iii) prepaid payment network
service. According to "Administrative Measures of People's Bank of China on Payment Services Provided by Non-financial Institutions"
("Order 2") and "People's Bank of China Announcement [2018] No. 7 — Announcement on Matters Relating to
Foreign-funded Payment Organizations" ("Announcement No. 7"), those who engage in prepaid network services business
within China need to go through a special legal approval procedure to obtain third-party payment licenses. Although the People's
Bank of China has loosened the requirements for foreign-invested enterprises to hold third-party payment licenses, the review procedure
is still very strict in practice. At the same time, Chinese authorities have not yet made it clear whether to permit or prohibit foreign-invested
enterprises to engage in prepaid network services, loan collection management and loan recommendation services, and there is a risk that
Chinese authorities may prohibit direct foreign investment of such businesses.
We do not have any equity interests in the Sentage
Operating Companies, whose financial results have been consolidated by us in accordance with U.S. GAAP because we are deemed to have effective
control over and be the primary beneficiary of these companies, for accounting purposes only, via the VIE Agreements. However, the VIE
Agreements have not been tested in a court of law in China as of the date of this annual report. Investors of our Ordinary Shares, thus,
do not own any equity interest in the Sentage Operating Companies, or the VIEs, in China, but instead own equity interest in a Cayman
Islands holding company. For details of the VIE Agreements, see "ITEM 4. C. Organizational Structure – The VIE Agreements";
and for the risks associated with the VIE Agreements and the VIE structure, see "ITEM 3D. Risk Factors – Risks Related to
Our Corporate Structure".
We are subject to risks associated with our VIE
structure. Investors may never directly hold equity interests in the VIEs. If the PRC government finds that the contractual arrangements
which establish the structure of our business operations do not comply with PRC laws and regulations, or if these regulations or their
interpretations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations,
which would result in the VIEs being deconsolidated. A majority of our assets, including the necessary licenses to conduct business are
held by the VIEs and their subsidiaries. Substantially all of our revenue is generated by the VIEs. The deconsolidation of the VIEs would
have a material adverse effect on our operations and substantially diminish the value of our Ordinary Shares. There are uncertainties
about potential future actions by the PRC government that could affect the enforceability of our contractual arrangements with the VIEs
and, consequently, significantly affect our financial performance. The value of the Ordinary Shares may significantly decline or become
worthless as a result. For a detailed description of the risks associated with our corporate structure, please refer to risks disclosed
under "Risk Factors—Risks Related to Our Corporate Structure."
We face various legal and operational risks and
uncertainties associated with having substantially all of our operations in China and with the complex and evolving PRC laws and regulations,
and as a result these risks may result in material changes in the operations of our subsidiaries, the VIEs, and their subsidiaries, significant
depreciation or a complete loss of the value of our Ordinary Shares, or a complete hindrance of our ability to offer, or continue to offer,
our securities to investors. For example, we face risks associated with PRC governmental authorities' significant oversight and
discretion over the businesses and financing activities of the VIEs, the requirement of regulatory approvals for offerings and listings
conducted overseas and foreign investment in China-based issuers, the use of VIEs, the enforcement of anti-monopoly regime, the regulatory
oversight on cybersecurity and data privacy as well as the risk of delisting if the PCAOB is unable to conduct inspection on our auditors,
which may impact our ability to conduct certain businesses, accept foreign investments, or continue to list on a United States or other
foreign exchange. These risks could result in a material adverse change in our operations and the value of our Ordinary Shares, significantly
limit or completely hinder our ability to offer or continue to offer such securities to investors, or cause the value of such securities
to significantly decline. For a detailed description of risks related to doing business in China, see "Risk Factors—Risks
Related to Doing Business in China."
49
Recently, the PRC government adopted a series
of regulatory actions and issued statements to regulate business operations in China with little advance notice, including cracking down
on illegal activities in the securities market, adopting new measures to extend the scope of cybersecurity reviews, and expanding the
efforts in anti-monopoly enforcement. As of the date of this report, none of the Company, our subsidiaries, nor the VIEs and their subsidiaries
have been involved in any investigation or cybersecurity review initiated by any PRC regulatory authority, nor has any of them received
any inquiry, notice, or sanction related to cybersecurity review under the Cybersecurity Review Measures. On December 28, 2021, 13 governmental
departments of the PRC, including the Cyberspace Administration of China (the "CAC"), issued the Cybersecurity Review Measures,
which became effective on February 15, 2022. The Cybersecurity Review Measures provide that an online platform operator which possesses
the personal information of at least one million users must apply for a cybersecurity review by the CAC if it intends to be listed in
foreign countries. On July 7, 2022, the CAC published the Measures for the Security Assessment of Outbound Data Transfer (《数据出境安全评估办法》),
which effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People's Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file to the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than one
million individuals transfers personal information to abroad；(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or；(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration. As of the date of this annual report, according to our PRC counsel, Dentons, our operations in the PRC and
our continued listing are not subject to the review or prior approval of the Cyberspace Administration of China ("CAC") or
the China Securities Regulatory Commission ("CSRC"). Uncertainties still exist, however, due to the possibility that laws,
regulations, or policies in the PRC could change rapidly in the future.
In the event that (i) the PRC government expanded
the categories of industries and companies whose foreign securities offerings are subject to review by the CSRC or the CAC and that we
are required to obtain such permissions or approvals; or (ii) we inadvertently concluded that relevant permissions or approvals were not
required or that we did not receive or maintain relevant permissions or approvals required, any action taken by the PRC government could
significantly limit or completely hinder our operating subsidiaries' operations in the PRC and our ability to offer or continue
to offer our Ordinary Shares to investors and could cause the value of such securities to significantly decline or be worthless. Since
these statements and regulatory actions are newly published, however, official guidance and related implementation rules have not been
issued. It is highly uncertain what the potential impact such modified or new laws and regulations will have on the daily business operations
of our subsidiaries and the VIEs and their subsidiaries, our ability to accept foreign investments, and our listing on a U.S. exchange.
The Standing Committee of the National People's Congress ("SCNPC") or PRC regulatory authorities may in the future promulgate
laws, regulations, or implementing rules that require us, our subsidiaries, or the VIEs and their subsidiaries to obtain regulatory approval
from Chinese authorities before listing in the U.S. See "Item 3. Key Information—D. Risk Factors—Risks Relating to Doing
Business in China—
Recent greater oversight by the Cyberspace Administration of China ("CAC") over data security,
particularly for companies seeking to list on a foreign exchange, could adversely impact our business
" and "Item 3. Key
Information—D. Risk Factors— Risks Related to Doing Business in China —
Changes in China's economic, political,
or social conditions or government policies could have a material adverse effect on the operating entities' business and operations.
"
As a holding company, we conduct our operations
in China through the VIEs in China. In addition, some of our senior executive officers and directors, namely Qiaoling Lu, Jianhu Chen,
Yiheng Guo, Shengsong Wong, reside in the PRC for a significant portion of the time and are PRC nationals. As a result, it may be difficult
to effect service of process upon those persons. It may be difficult to enforce judgements obtained in U.S. courts based on civil liability
provisions of the U.S. federal securities laws against us and our officers and directors, as none of them currently resides in the U.S.
or has substantial assets in the U.S. In addition, there is uncertainty as to whether the courts of the Cayman Islands or the PRC would
recognize or enforce judgments of U.S. courts against us or such persons predicated upon the civil liability provisions of the securities
laws of the U.S. or any state. See "Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in
China—
You may experience difficulties in effecting service of legal process, enforcing foreign judgments, or bringing actions
in China against us or our management named in this annual report based on foreign laws
."
50
In addition, trading in our securities may be
prohibited under the Holding Foreign Companies Accountable Act if the PCAOB determines that it cannot inspect our auditor, and as a result
an exchange may determine to delist our securities. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies
Accountable Act, and on December 29, 2022, the Consolidated Appropriations Act 2023 was signed into law, which contained, among other
things, an identical provision to the Accelerating Holding Foreign Companies Accountable Act, which reduces the number of consecutive
non-inspection years required for triggering the prohibitions under the Holding Foreign Companies Accountable Act from three years to
two years.
Enrome LLP. Our auditor, the independent registered
public accounting firm that issues the audit report included elsewhere in this annual report, is headquartered in Singapore. As an auditor
of companies that are traded publicly in the U.S. and a firm registered with the PCAOB, our auditor is subject to laws in the U.S. and
PCAOB's inspection.
However, these recent developments would add uncertainties
to our continued listing and we cannot assure you whether Nasdaq or other regulatory authorities would apply additional and more stringent
criteria to us after considering the effectiveness of our auditor's audit procedures and quality control procedures, adequacy of
personnel and training, or sufficiency of resources, geographic reach or experience as related to the audit of our financial statements.
Furthermore, there is a risk that our auditor cannot be inspected by the PCAOB in the future. The lack of inspection could cause trading
in our securities to be prohibited on a national exchange or in the over-the-counter trading market under the Holding Foreign Companies
Accountable Act, and, as a result, Nasdaq may determine to delist our securities, which may cause the value of our securities to decline
or become worthless.
Dividends and Distributions
Under existing PRC foreign exchange regulations,
payment of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made
in foreign currencies without prior approval from the State Administration of Foreign Exchange, or the SAFE, by complying with certain
procedural requirements. Therefore, our PRC subsidiary is able to pay dividends in foreign currencies to us without prior approval from
SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC foreign
exchange regulations, such as the overseas investment registrations by our shareholders or the ultimate shareholders of our corporate
shareholders who are PRC residents. Approval from, or registration with, appropriate government authorities is, however, required where
the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated
in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current account
transactions. Current PRC regulations permit Sentage WFOE to pay dividends to the Company only out of its accumulated profits, if any,
determined in accordance with Chinese accounting standards and regulations. As of the date of this annual report, there are no restrictions
or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including funds from
Hong Kong to the PRC), except for transfer of funds involving money laundering and criminal activities. See "Item 3. D. Risk Factors—Risks
Related to Doing Business in China—
To the extent cash or assets of our business, or of the PRC Operating Entities, is in PRC
or Hong Kong, such cash or assets may not be available to fund operations or for other use outside of the PRC or Hong Kong, due to interventions
in or the imposition of restrictions and limitations by the PRC government to the transfer of cash or assets.
"
For the fiscal year 2022, 2021 and 2020, and as
of the date of this annual report, there were no dividends distributed between the holding company and its subsidiaries and consolidated
VIEs or to investors. Cash is transferred among our Company, our subsidiaries, and the VIE, in the following manners: (i) funds are transferred
to our WFOE from our Company as needed through Sentage HK, our Hong Kong subsidiary, in the form of capital contributions or shareholder
loans, as the case may be; (ii) funds may be paid by the VIE to WFOE, as service fees according to the VIE Agreements; (iii) dividends
or other distributions may be paid by WFOE, to our Company through Sentage HK; and (iv) WFOE and the VIE lend to and borrow from each
other from time to time for business operation purposes.  As of the date of this annual report, cash transfers and transfers of other
assets between the Company, its subsidiaries, and the VIE, were as follows: For fiscal year 2021, the Company transferred all the net
IPO proceeds in the amount of $16.91 million to its subsidiary, Sentage HK. There was no cash or other assets transfer between the Company,
its subsidiaries, and the VIE during the fiscal years ended December 31, 2022 and 2021. As of the date of this annual report, the VIE
have not distributed any earnings or settled any amounts owed under the VIE Agreements, nor does it have any plan to distribute earnings
or settle amounts owed under the VIE Agreements in the foreseeable future.
51
Under Cayman Islands law, a Cayman Islands company
may pay a dividend on its shares out of either profit or share premium amount, provided that in no circumstances may a dividend be paid
if this would result in the company being unable to pay its debts due in the ordinary course of business. We intend to keep any future
earnings to finance the expansion of our business, and we do not anticipate that any cash dividends will be paid in the foreseeable future,
or any funds will be transferred from one entity to another on a regular basis. As such, we have not installed any cash management policies
that dictate how funds are transferred among Golden Sun Cayman, its subsidiaries, or investors.
If we determine to pay dividends on any of our
Ordinary Shares in the future, as a holding company, we will be dependent on receipt of funds from our Hong Kong subsidiary, Sentage HK.
Current PRC regulations permit Sentage WFOE to
pay dividends to Sentage HK only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and
regulations. In addition, each of our operating entities in China is required to set aside at least 10% of its after-tax profits each
year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of such entity in China is also
required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside,
if any, is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other ways, to increase
the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not
distributable as cash dividends except in the event of liquidation.
The PRC government also imposes controls on the
conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in
complying with the administrative requirements necessary to obtain and remit foreign currency for the payment of dividends from our profits,
if any. Furthermore, if our operating entities in the PRC incur debt on their own in the future, the instruments governing the debt may
restrict their ability to pay dividends or make other payments. If we or the PRC operating entities is unable to receive all of the revenue
from our operations, we may be unable to pay dividends on our Ordinary Shares.
Cash dividends, if any, on our Ordinary Shares
will be paid in U.S. dollars. Sentage HK may be considered a non-resident enterprise for tax purposes, so that any dividends Sentage WFOE
pays to Sentage HK may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10%.
See "Material Income Tax Consideration—People's Republic of China Enterprise Taxation."
52
In order for us to pay dividends to our shareholders,
we will rely on payments made from the Sentage Operating Companies to Sentage WFOE, pursuant to VIE Agreements between them, and the distribution
of such payments to Sentage HK as dividends from Sentage WFOE. Certain payments from the Sentage Operating Companies to Sentage WFOE are
subject to PRC taxes, including business taxes and value-added taxes. In addition, if any of the Sentage Operating Companies incurs debt
on their own behalves in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions
to us.
Pursuant to the Arrangement between Mainland China
and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the Double Tax Avoidance
Arrangement, the 10% withholding tax rate may be lowered to 5% if a Hong Kong resident enterprise owns no less than 25% of a PRC project.
The 5% withholding tax rate, however, does not automatically apply and certain requirements must be satisfied, including without limitation
that (a) the Hong Kong project must be the beneficial owner of the relevant dividends; and (b) the Hong Kong project must directly hold
no less than 25% share ownership in the PRC project during the 12 consecutive months preceding its receipt of the dividends. In current
practice, a Hong Kong project must obtain a tax resident certificate from the Hong Kong tax authority to apply for the 5% lower PRC withholding
tax rate. As the Hong Kong tax authority will issue such a tax resident certificate on a case-by-case basis, we cannot assure you that
we will be able to obtain the tax resident certificate from the relevant Hong Kong tax authority and enjoy the preferential withholding
tax rate of 5% under the Double Taxation Arrangement with respect to any dividends paid by Sentage WFOE to its immediate holding company,
Sentage HK. As of the date of this annual report, we have not applied for the tax resident certificate from the relevant Hong Kong tax
authority. Sentage HK intends to apply for the tax resident certificate if and when Sentage WFOE plans to declare and pay dividends to
Sentage HK. See "Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—
There are
significant uncertainties under the EIT Law relating to the withholding tax liabilities of Sentage WFOE, and dividends payable by Sentage
WFOE to our offshore subsidiaries may not qualify to enjoy certain treaty benefits
."
Recent Regulatory Developments
Recent regulatory developments on oversea-listing
On July 6, 2021, the relevant PRC governmental
authorities made public the Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with the Law. These opinions
emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China-based
companies and proposed to take effective measures, such as promoting the construction of relevant regulatory systems to deal with the
risks and incidents faced by China-based overseas-listed companies. As these opinions are recently issued, official guidance and related
implementation rules have not been issued yet and the interpretation of these opinions remains unclear at this stage. See "Item
3. D. Risk Factors—Risks Related to Doing Business in China—
The "Opinions on Severely Cracking Down on Illegal Securities
Activities According to Law," or the "Opinions," recently issued by the General Office of the Central Committee of the
Communist Party of China and the General Office of the State Council may subject us to additional compliance requirement in the future.
"
On December 24, 2021, the China Securities Regulatory
Commission, or the CSRC, issued Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic
Companies (Draft for Comments) (the "Administration Provisions"), and the Provisions of the State Council on the Administration
of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments) (the "Measures"), of which the public
comment period ended on January 23, 2022. The Administration Provisions and Measures for overseas listings lay out specific requirements
for filing documents and include unified regulation management, strengthening regulatory coordination, and cross-border regulatory cooperation.
Domestic companies seeking to list abroad must carry out relevant security screening procedures if their businesses involve such supervision.
Companies endangering national security are among those off-limits for overseas listings.
53
On February 17, 2023, the China Securities Regulatory
Commission (the "CSRC") released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic
Companies (the "Trial Measures"), (《境内企业境外发行证券和上市管理试行办法》),
and five supporting guidelines (collectively, the "Overseas Listings Rules"), which has become effective on March 31, 2023.
On the same date of the issuance of the Overseas Listings Rules, the CSRC circulated No.1 to No.5 Supporting Guidance Rules, the Notes
on the Overseas Listings Rules, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises
and the relevant CSRC Answers to Reporter Questions on the official website of CSRC, or collectively, the Guidance Rules and Notice. The
Overseas Listings Rules, together with the Guidance Rules and Notice, reiterate the basic supervision principles as reflected in the Administration
Provisions and Measures by providing substantially the same requirements for filings of overseas offering and listing by domestic companies.
Under the Overseas Listings Rules and the Guidance
Rules and Notice, domestic companies conducting overseas securities offering and listing activities, either in direct or indirect form,
shall complete filing procedures with the CSRC pursuant to the requirements of the Trial Measures within three working days following
its submission of initial public offerings or listing application. The companies that have already been listed on overseas stock exchanges
or have obtained the approval from overseas supervision administrations or stock exchanges for its offering and listing before March 31,
2023 and completed their overseas offering and listing prior to September 30, 2023 are not required to make immediate filings for its
listing yet need to make filings for subsequent offerings in accordance with the Overseas Listings Rules. The companies that have already
submitted an application for an initial public offering to overseas supervision administrations prior to the effective date of the Overseas
Listings Rules but have not yet obtained the approval from overseas supervision administrations or stock exchanges for the offering and
listing may arrange for the filing within a reasonable time period and should complete the filing procedure before such companies'
overseas issuance and listing. See "Item 3. D. Risk Factors—Risks Related to Doing Business in China—
The Chinese
government exerts substantial influence over the manner in which we must conduct our business, and may intervene or influence our operations
at any time, which could result in a material change in our operations, significantly limit or completely hinder our ability to offer
or continue to offer securities to investors, and cause the value of our Ordinary Shares to significantly decline or be worthless
."
See "Item 3. D. Risk Factors—Risks
Related to Doing Business in China—
The Chinese government exerts substantial influence over the manner in which we must conduct
our business, and may intervene or influence our operations at any time, which could result in a material change in our operations, significantly
limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the value of our Ordinary Shares
to significantly decline or be worthless
."
As of the date of this annual report, we and the
PRC operating entities have not received any formal inquiry, notice, warning, sanction, or any regulatory objection from the CSRC with
respect to our listing or subsequent offerings. As the Overseas Listings Rules were newly published and there exists uncertainty with
respect to the filing requirements and its implementation, if we are required to submit to the CRSC and complete the filing procedure
of our subsequent overseas public offerings, we cannot be sure that we will be able to complete such filings in a timely manner. Any failure
or perceived failure by us to comply with such filing requirements under the Overseas Listings Rules may result in forced corrections,
warnings and fines against us and could materially hinder our ability to offer or continue to offer our securities.
54
Recent regulatory development of Cyberspace
Administration of China over data security
On July 7, 2022, the CAC published the Measures
for the Security Assessment of Outbound Data Transfer (《数据出境安全评估办法》),
which effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People's Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file to the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data to abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than
1 million individuals transfers personal information to abroad；(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or；(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration.
As advised by our PRC counsel, Dentons, the operations
of the PRC operating entities and our continued listing has not be affected and are not subject to cybersecurity review by the CAC, given
that the PRC operating entities (i) possess personal data of fewer than one million individual clients; (ii) do not collect data that
affects or may affect national security in their business operations, as of the date of this annual report; and (iii) do not anticipate
that they will be collecting over one million users' personal information or data that affects or may affect national security in
the near future. For further details, see "Item 3. D. Risk Factors—Risks Related to Doing Business in China—
Recent
greater oversight by the Cyberspace Administration of China ("CAC") over data security, particularly for companies seeking
to list on a foreign exchange, could adversely impact our business
."
Selected Condensed Consolidated Financial Schedule
of Sentage Holdings Inc., its subsidiaries, and the VIEs
The following tables present selected condensed
consolidated financial data of Sentage Holdings Inc. and its subsidiaries and VIEs for the fiscal years ended December 31, 2022, 2021,
and 2020, and balance sheet data as of December 31, 2022, 2021 and 2020, which have been derived from our audited consolidated financial
statements for those years.
SELECTED CONDENSED CONSOLIDATED STATEMENTS
OF INCOME AND COMPREHENSIVE LOSS
For the year ended December 31, 2020
USD
Sentage
Holdings
Inc.
Subsidiaries
VIE and its
Subsidiaries
Eliminations
Consolidated
Total
Revenue
-
-
3,595,409
-
3,595,409
Net Income
-
-
1,587,375
-
1,587,375
Comprehensive Income
-
-
1,624,368
-
1,624,368
For the year ended December 31, 2021
USD
Sentage
Holdings
Inc.
Subsidiaries
VIE and its
Subsidiaries
Eliminations
Consolidated
Total
Revenue
-
-
2,262,449
-
2,262,449
Net Income (loss)
(1,748,643
)
(37,371
)
692,775
-
(1,093,241
)
Comprehensive Income (loss)
(1,748,643
)
(36,328
)
844,511
-
(940,461
)
For the year ended December 31, 2022
USD
Sentage
Holdings
Inc.
Subsidiaries
VIE and its
Subsidiaries
Eliminations
Consolidated
Total
Revenue
-
-
161,372
-
161,372
Net Income
(1,470,635
)
(130,766
)
(960,506
)
-
(2,561,907
)
Comprehensive Income
(1,470,635
)
(183,036
)
(994,319
)
-
(2,647,990
)
55
SELECTED CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, 2021
USD
Sentage
Holdings
Inc.
Subsidiaries
VIE and its
Subsidiaries
Eliminations
Consolidated
Total
Cash
-
10,145,841
637,546
-
10,783,387
Total current assets
15,611,082
12,844,391
1,526,409
(12,779,725
)
17,202,157
Total assets
15,611,082
12,844,391
1,690,960
(12,779,725
)
17,366,708
Total liabilities
2,208,643
10,111,084
1,003,752
(12,779,725
)
543,754
Total shareholders' equity
13,402,439
2,733,307
687,208
-
16,822,954
Total liabilities and shareholders' equity
15,611,082
12,844,391
1,690,960
(12,779,725
)
17,366,708
As of December 31, 2022
USD
Sentage
Holdings
Inc.
Subsidiaries
VIE and its
Subsidiaries
Eliminations
Consolidated
Total
Cash
-
3,785,115
20,020
-
3,805,135
Total current assets
12,740,447
6,873,303
1,442,879
(6,715,249
)
14,341,380
Total assets
12,740,447
7,035,573
1,598,063
(6,715,249
)
14,658,834
Total liabilities
1,466,983
3,826,962
1,905,174
(6,715,249
)
483,870
Total shareholders' equity
11,273,464
3,208,611
(307,111
)
-
14,174,964
Total liabilities and shareholders' equity
12,740,447
7,035,573
1,598,063
(6,715,249
)
14,658,834
SELECTED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
For the year ended December 31, 2020
USD
Sentage
Holdings
Inc.
Subsidiaries
VIE and its
Subsidiaries
Eliminations
Consolidated
Total
Net cash used in operating activities
-
-
465,210
-
465,210
Net provided by (used in) investing activities
-
-
-
-
-
Net cash provided by financing activities
-
-
(585,859
)
-
(585,859
)
For the year ended December 31, 2021
USD
Sentage
Holdings
Inc.
Subsidiaries
VIE and its
Subsidiaries
Eliminations
Consolidated
Total
Net cash used in operating activities
-
(1,815,919
)
1,433,255
(382,664
)
Net used in investing activities
-
(5,500,000
)
(19,977
)
(5,519,977
)
Net cash provided by (used in) financing activities
-
17,360,717
(959,420
)
16,401,297
For the year ended December 31, 2022
USD
Sentage
Holdings
Inc.
Subsidiaries
VIE and its
Subsidiaries
Eliminations
Consolidated
Total
Net cash used in operating activities
-
(6,291,604
)
(371,005
)
-
(6,662,609
)
Net provided by investing activities
-
-
(34,346
)
-
(34,346
)
Net cash provided by financing activities
-
-
(173,162
)
-
(173,162
)
56
Business
Through the Sentage Operating Companies, we are
a financial service provider that offers a range of financial services across consumer loan repayment and collection management, loan
recommendation, and prepaid payment network services in China. Leveraging a deep understanding of the client base, strategic partner relationships,
and valuation models and technologies, the Sentage Operating Companies are committed to working with the clients to understand their financial
needs and challenges and offering customized services to help them meet their respective objectives.
We currently report our operating revenue from
three main revenue streams, namely, (i) consumer loan repayment and collection management service, (ii) loan recommendation service,
and (iii) prepaid payment network service.
For fiscal years 2022, 2021 and 2020, our revenue
was $161,372, $2,262,449 and $3,595,409, respectively, and our net profit (loss) was $(2,561,907), ($835,897) and $2,180,076, respectively.
The declines of our revenue and increase in our net loss in fiscal year 2022 was due to the fact that we did not generate any revenue
from the consumer loan repayment and collection management service and loan recommendation service due to the impact of COVID-19.
The declines of our revenue and net profit in
fiscal year 2021 was mainly due to the fact that the outstanding servicing agreements under our consumer loan repayment and collection
management were fully completed in fiscal 2021 and revenues from this service were significantly reduced in 2021. Revenue from the consumer
loan repayment and collection management accounted for 29.9 %, 6.9%, and nil of the total revenue for the fiscal year ended December 31,
2020, 2021 and 2022, respectively. Revenue from the loan recommendation accounted for 58.1%, 52.1% and nil of the total revenue for the
fiscal year ended December 31, 2020, 2021 and 2022, respectively. Revenue from prepaid payment network service business accounted for
12%, 41% and 100% of the total revenue for the fiscal year ended December 31, 2020, 2021 and 2022, respectively.
For the consumer loan repayment and collection
management business, due to the uncertainties caused by the COVID-19, our prospective business partners were not able to start new cooperation
with us and we were not able to generate any revenue for fiscal year 2022. For the loan recommendation services, which requires face-to-face
interaction with potential customers, the temporary lock down from April 2022 to June 2022 severely impacted our ability to generate
new business. Even after June 2022, due to the uncertainties caused by COVID-19, the demand from customers decreased sharply and the
we were not able to generate any revenue for fiscal year 2022. For the prepaid payment network services, the revenue in 2022 declined
sharply because decreased demand from customers due to the uncertainties caused by COVID-19. Although China relaxed the COVID-19 restrictions
at the end of 2022, because the COVID-19 has deeply affected businesses and economy in China from 2020 to 2022, the extent of any future
impact of COVID-19 on our operations remains highly uncertain and unpredictable.
Consumer Loan Repayment and Collection Management
Service
For the fiscal years 2022, 2021 and 2020, revenue
generated from the Sentage Operating Companies' consumer loan repayment and collection management services was nil, US$156,062 and
US$1,074,734, respectively. Since the end of 2017, the Sentage Operating Companies have not charged any new fees for loan repayment and
collection management. All loan repayment and collection management engagements were fully completed by December 31, 2021.
The Sentage Operating Companies devised and implemented
a systematic repayment and collection management process adapted to each stage of a loan. Prior to loan delinquency, the Sentage Operating
Companies provided customers with services such as repayment record reconciliation and payment reminders and notices. Upon delinquency,
the Sentage Operating Companies' experienced in-house team worked on recovering past-due loans during the first three months of
delinquency through means that did not require face-to-face interaction. If delinquency exceeded three months, the Sentage Operating Companies
outsourced loan collection services to reputable and local licensed third-party loan collection agencies, whose performance was supervised
and evaluated by the Sentage Operating Companies under a monitoring system. Specifically, these third-party agencies collected past-due
loans through various collection efforts such as professional skip-tracing (i.e. the process of locating a borrower who cannot be found
at his or her place of residence or usual hangouts) and on-site visits. After the first six months of delinquency, if all the previous
efforts to recover past-due loans remained unsuccessful, and after having received the Sentage Operating Companies' customers'
express authorizations, the Sentage Operating Companies then engaged reputable third-party law firms and initiate judicial proceedings
against the delinquent borrower on behalf of the customers. As the Sentage Operating Companies exclusively relied upon third-party resources
for on-site visits, their in-house team was able to minimize potential physical confrontation with borrowers and effectively controlled
compliance-related risks. In addition, the Sentage Operating Companies coordinated and managed all client engagements and collected information
centrally through the Shanghai headquarters. Through the internal management system, the Sentage Operating Companies assigned and adjusted
repayment and collection tasks to in-house specialists and third-party collection agencies based on a variety of factors. The Sentage
Operating Companies believed this centralized management allowed them to streamline and standardize the payment and collection management
process, effectively monitor compliance levels, and increase collection efficiency.
57
For fiscal years 2022, 2021 and 2020, the total
amount repaid by borrowers and collected by the Sentage Operating Companies and third-party agencies reached RMB nil , RMB1.01million
(approximately US$ 0.16million), and RMB 2.16 million (approximately US$ 0.31 million), respectively. While the Sentage Operating Companies
offer services nationwide, they strategically focused on strengthening their presence in second-tier and third-tier Chinese cities where
they have observed a strong demand for consumer loans. The Sentage Operating Companies' existing loan repayment and collection management
engagements were fully completed by December 31, 2021. Those customers paid service fees for loan repayment and collection management
as part of the Sentage Operating Companies' service agreements that were entered into at the time of loan facilitation. Such prepayments
were recorded as a credit to a liability account for prepayments on the Sentage Operating Companies' balance sheet. As the Sentage
Operating Companies provided loan repayment and collection management services to specific customers clients, loan management and collection
management fees received from customers in advance were deferred and recognized as revenue over time when designated services were performed.
All loan repayment and collection management engagements
were fully completed by December 31, 2021. With a team of experienced loan management professionals, the Sentage Operating Companies plan
to continue the consumer loan repayment and collection management business by expanding the client base and collaborating with third-party
financial institutions. The Sentage Operating Companies have been actively seeking collaboration with third-party financial institutions
to further the consumer loan repayment and collection management services. However, there can be no guarantee that the Sentage Operating
Companies will be successful in their efforts to continue their consumer loan repayment and collection management business.
Loan Recommendation Service
As part of the strategy to diversify and expand
product and service offering, the Sentage Operating Companies started the loan recommendation business in June 2019. Leveraging their
advanced credit assessment and risk management capabilities, the Sentage Operating Companies carefully evaluate applications and supporting
materials submitted by individual borrowers and recommend those borrowers the Sentage Operating Companies deem qualified to funding partners,
who in return directly provide funds to borrowers recommended by them. The Sentage Operating Companies endeavor to provide a transparent,
seamless, and convenient recommendation process for both borrowers and funding partners, while safeguarding their respective interests.
The Sentage Operating Companies provide services,
including processing paperwork related to borrowers' applications, evaluating credentials of borrower applicants, and appraising
properties to be collateralized through data analysis and on-site inspection. For borrowers the Sentage Operating Companies acquired through
business contacts, the Sentage Operating Companies do not directly charge them any service fee. Instead, referral partners first charge
borrowers service fees for their referrals. The Sentage Operating Companies then charge the referral partners a commission pursuant to
the service agreement between them and the referral partners. The Sentage Operating Companies did not provide new services in fiscal year
2022, due to the impact of COVID-19.
58
The Sentage Operating Companies only recommend
borrowers who are able to collateralize properties that have been evaluated and approved by a team of experienced in-house appraisers.
This asset-driven risk management approach is designed to minimize borrowers' default risk, mitigate the impact of a default, and
promote sustainable returns for the funding partners. Specifically, the Sentage Operating Companies require a current real estate appraisal
on all properties that borrowers intend to collateralize. Leveraging the appraisal model and technologies, the experienced in-house appraisers
first undertake a rigorous due diligence process involving intensive data collection, review, and analysis to ensure that the Sentage
Operating Companies understand the state of the market and the risk-reward profile of the property. The Sentage Operating Companies then
conduct a complete visual inspection of the interior and exterior of the property, through which they examine conditions that might adversely
affect the property's value. After consolidating information collected through various channels, the in-house appraisers compare
the property with comparable sales based on a set of factors selected to assess specific features of the property and its market conditions..
The Sentage Operating Companies continuously work
on strengthening the cooperation with funding partners and organically expanding the network of funding partners. For fiscal year 2022,
and as of April 22, 2023, due to the ongoing impact of the COVID-19 pandemic, the Sentage Operating Companies did not do any business
with the funding partners. The Sentage Operating Companies provide the funding partners access to a high-quality borrower applicants base,
as well as enhanced credit assessment and risk management capabilities. The Sentage Operating Companies value proposition is further magnified
by the repeat lending and cross-selling opportunities the Sentage Operating Companies provide to them. Once borrowers are connected to
funding partners through services, funding partners will be able to extend more loans and sell other financial products to such borrowers.
The Sentage Operating Companies acquire the funding partners through word-of-mouth referrals and referrals made by the shareholders and
management team members, many of whom have established extensive connections in the financial industry based on their respective years
of professional experience. While remaining subject to regulations on loan recommendation services, the business model does not subject
the Sentage Operating Companies to the relevant local regulatory requirements that are applicable to online lending platforms, since the
Sentage Operating Companies do not provide online financing intermediary services. The Sentage Operating Companies believe the strengthened
cooperation with funding partners will permit them to sustainably grow the business and mitigate any negative impact brought by the continuing
challenging regulatory environment in China.
Borrowers may be drawn to the Sentage Operating
Companies because of the convenient access to various mortgage products offered by funding partners, a transparent, easily navigable recommendation
process, and a client-centric service approach aiming to understand borrowers' specific financial needs and match them with mortgage
products suitable to their current situation. The number of borrowers who have used the Sentage Operating Companies' recommendation
services has grown rapidly over time through third-party and word-of-mouth referrals. For fiscal year 2020, the funding partners approved
loans to borrowers recommended by the Sentage Operating Companies in the aggregate amount of RMB744.269 million (approximately US$107.91
million) and the Sentage Operating Companies earned $2,087,717 recommendation service revenue. For fiscal year 2021, the funding partners
approved loans to borrowers recommended by the Sentage Operating Companies in the aggregate amount of RMB 256.85million (approximately
US$39.82 million) and the Sentage Operating Companies earned $1,177,822 in recommendation service revenue. For fiscal year 2022, the Sentage
Operating Companies earned nil recommendation service revenue due to that the Sentage Operating Companies were not able to engage new
customers, which process required face-to-face interactions with customers, in the first half of 2022 (the peak season for this type of
business). After June 2022, the demand from customers decreased sharply due to the continued uncertainties caused by COVID-19, resulting
in nil in revenues for fiscal year 2022.
59
Prepaid Payment Network Service
The Sentage Operating Companies started providing
prepaid payment network services in August 2019, offering seamless, convenient, and reliable payment services to merchants across different
industries. Specifically, the Sentage Operating Companies offer prepaid cards to individual consumers who, after purchasing such prepaid
cards from the Sentage Operating Companies, will be able to buy goods and services offered by the Sentage Operating Companies' merchant
customers with their prepaid cards and recharge such cards online. The proceeds generated from the actual sales of the prepaid card are
deposited into an escrow account designated and monitored by the PBOC. Leveraging the partnership with NetsUnion Clearing Corporation
("NetsUnion") (i.e. the only bank card clearing house and the largest card payment organization offering mobile and online
payment services in China), the Sentage Operating Companies prepaid payment network services enable qualified merchants selected by the
Sentage Operating Companies after rigorous internal review to accept prepaid-card payments using traditional payment terminals. The growing
prepaid payment service business enables the Sentage Operating Companies to develop a deep understanding of customers' needs and
will allow us to provide merchants with continuously improving services and technologies. During fiscal year 2020, the revenue generated
from the payment services consisted of technology consulting and support fees and amounted to US$432,958. During fiscal year 2021, the
revenue generated from the payment services consisted of technology consulting and support fees and amounted to US$928,565. During fiscal
year 2022, the revenue generated from the payment services consisted of technology consulting and support fees and amounted to US$161,372,
which decrease was due to decreased demand due to the uncertainties of COVID-19. As of April 22, 2023, the Sentage Operating Companies
have engaged a total of 11 merchant customers for the prepaid network payment business.
For merchant customers who need payment-related
technical consulting and support, the Sentage Operating Companies charge service fees for designing tailored payment solutions, interfacing
their internal systems with the Sentage Operating Companies' prepaid card payment system, and providing their staff with relevant
operation training. Depending on the estimated annual transaction amount agreed by the Sentage Operating Companies and the particular
merchant customer, the technology consulting and support fee ranges from RMB100,000 (approximately US$14,474) to RMB500,000 (approximately
US$72,370). For merchant customers who need prepaid card payment services, the Sentage Operating Companies charge fees for services, including,
but not limited to, collecting and processing information necessary for prepaid card issuance and authorizing transaction requests after
verifying transaction information. The prepaid card payment service fee is equal to either (i) 0.3% to 0.5% of each transaction amount
or (ii) 0.2% of the estimated annual transaction amount.
Merchant customers choose the Sentage Operating
Companies because they are a licensed prepaid card issuer capable of offering multipurpose prepaid cards and a licensed payment service
provider. In order to issue multipurpose prepaid cards, which can be used to purchase goods and services from a diverse group of merchants
across industries and regions, and provide related payment services, a service provider must obtain a third-party payment license that
allows such activities. As a result of the tightened control imposed by the PBOC over payment licenses in recent years, it has become
much harder to obtain such licenses from relevant regulatory bodies in China. A license applicant must undergo a time-consuming application
process, be able to pay an expensive application fee, and satisfy stringent standards adopted by the regulatory bodies. In light of the
strong entry barriers, the Sentage Operating Companies' payment license is a unique asset that distinguishes us from competitors.
Without such license, a prepaid issuer can issue only single-purpose prepaid cards, which is limited to purchasing goods and services
provided by the card issuer or companies related to the card issuer.
The Sentage Operating Companies' proprietary
technology systems are critical to the growth of the prepaid payment network business, allowing the Operating Companies to process a large
volume of transactions, achieve high level of stability, promote workflow automation, and build an easily scalable business model. Supported
by a set of integrated databases, the Sentage Operating Companies' information system can efficiently process and analyze a high
volume of data, securely store the data on a cloud server, and provide each of the departments with convenient access to data. The Sentage
Operating Companies' account management system allows the Sentage Operating Companies to consolidate and manage all the customers'
account information and track the balances of customer accounts in an efficient manner, promoting more transparent management of fund
movements. The Sentage Operating Companies regularly update the systems to improve their reliability, efficiency and compatibility with
the services and evolving regulatory requirements. We believe that the proprietary technology systems will enable the Sentage Operating
Companies to build a highly automated platform that is compatible with mainstream payment methods and channels across different industries.
As of the date of this annual report, the Sentage Operating Companies' systems have not encountered any major system interruption.
60
Loan Repayment and Collection Management Service
The Sentage Operating Companies' Repayment
and Collection Management Service
The Sentage Operating Companies provided consumer
loan repayment and collection management services to customers by leveraging the in-house team's years of industry knowledge, strategic
partnerships with third parties, standard and streamlined repayment and collection management process, centralized management, and proprietary
IT infrastructure. The Sentage Operating Companies' loan repayment and collection management engagements were completed by the end
of 2021. For the fiscal years 2020, 2021, and 2022 revenue generated from the consumer loan repayment and collection management services
was US$1,074,734, US$156,062, and nil, respectively.
Repayment and Collection Management Process
In general, when a borrower does not make a payment
as scheduled, the Sentage Operating Companies consider the loan as being delinquent.
Prior to loan delinquency, the Sentage Operating
Companies provide customers with services such as repayment record reconciliation and payment reminders and notices. Specifically, the
Sentage Operating Companies assist borrowers to fulfill their loan obligations according to an agreed-upon schedule through daily management
and monitoring of loan repayments and provide customers with after-lending services to receive investment returns throughout the life
of loan. The Sentage Operating Companies also send repayment reminders through SMSs by their service representatives before the due date
for each scheduled loan repayment. Borrowers may elect to make full prepayments prior to the date for the scheduled repayment. Repayments
are made directly to customers. The Sentage Operating Companies are not involved in the process of prepayment.
Upon delinquency, the Sentage Operating Companies
integrate internal and external resources to implement a systematic repayment and collection management process adapted to each stage
of a loan. When a loan becomes delinquent, the service representatives may contact the borrower on the same day to request an immediate
payment or negotiate a repayment date. The Sentage Operating Companies utilize the following strategies to collect loans based on the
severity of the delinquency:
●
Within one to seven days past due, the Sentage Operating Companies will contact the defaulting borrower by phone to understand reasons for the nonpayment and inform them of consequences of past-due repayments.
●
If the delinquency exceeds seven days, the borrower cannot be located, has refused to make repayment, or otherwise failed to cooperate with the Sentage Operating Companies, the delinquent loan will be sent to the in-house team for loan collection.
●
During the first three months of delinquency, the Sentage Operating Companies utilize the in-house team to recover the delinquent loan using professional skip tracing, phone calls, voice messages, text messages, e-mails, etc.
●
After the first three months of delinquency, the Sentage Operating Companies engage professional, licensed third-party reputable collection agencies who will be responsible for collecting the delinquent loan. In addition to the methods utilized by the in-house team, they also pay on-site visits to borrowers.
●
After the first six months of delinquency, the Sentage Operating Companies engage reputable third-party law firms and initiate judicial proceedings against the borrower on behalf of the customer after obtaining his or her authorization. The Sentage Operating Companies provide a holistic range of services across all phases of a judicial proceeding to assist the customer with navigating the process, such as serving as an intermediary between the customer and the legal team and explaining legal documents to the customer in a clear and concise manner.
●
During any stage as described above, borrowers directly make repayments to customers. The Sentage Operating Companies are not involved in the process of repayment.
61
Quality Assurance
We believe that quality assurance is critical
to the success of our business. To ensure in-house specialists and third-party agencies consistently provide quality services that meet
the standards, the Sentage Operating Companies have designed and adopted the following set of policies and procedures to incentive them,
help them improve based on their past performance, and manage their workload based on their experience and expertise.
●
Daily inspection.
The department leaders of each team perform daily spot checks on several collection cases for potential compliance violations. The Sentage Operating Companies' operating portal records all telephone conversations between the in-house specialists and borrowers, and the system transcribes some of these recordings into text for the quality assurance team to internally review in accordance with the quality assurance protocol. The Sentage Operating Companies operating portal also conducts daily keyword searches against all the work logs generated that day for potential violations. If a violation is identified, the Sentage Operating Companies issue a disciplinary action against the specialist. The Sentage Operating Companies' disciplinary actions vary from warning to termination, which are issued depending on the seriousness of the violation. Furthermore, the Sentage Operating Companies analyze work logs and telephone recordings collected from daily inspections for performance trend and non-compliant activities and train the Sentage Operating Companies' specialists based on these findings in order to improve their performance.
●
Performance Evaluation and Review.
Sentage Operating Companies have employed a monitoring system that monitors the in-house specialists and third-party agencies' performances at different stages of the loan repayment and collection management process and evaluates them based on a set of key performance indicators, or KPIs. The Sentage Operating Companies use KPIs to assess in-house specialists and third-party agencies' service quality, collection efficiency, and compliance with relevant laws, regulations and internal procedures. The Sentage Operating Companies' quality assurance team continuously monitors the performance and compliance of the in-house specialists and third-party agencies to ensure that they employ appropriate collection methods to achieve better collection performance through KPI tracking, phone call recording assessment, complaint call feedback, and internal training and examination.
●
Performance-based compensation structure
. The Sentage Operating Companies require the in-house specialists and third-party agencies to meet the minimum performance standards predetermined by their management team and tie their performance to compensation structures.
●
Case assignment.
The Sentage Operating Companies' performance monitoring system analyzes the past performance of each in-house specialist to aid the case assignment process. For example, potentially contentious cases that are likely to cause complaints are assigned to more experienced specialists, instead of those with less experience or have a record of compliance violations, as a way for the Sentage Operating Companies to manage and reduce the noncompliant risk.
The Sentage Operating Companies require all the
employees to strictly comply with compliance policies and laws and regulations. For example, the in-house specialists are not allowed
to contact a borrower for more than five times a day; no contact shall be made before 8 a.m. or after 10 p.m.; and unless authorized
by the customers, the in-house specialists are not allowed to make proposal to reduce the loan value as a compromise. If any employee
violates such requirements, the Sentage Operating Companies will issue certain penalties that range from warnings to termination of employment.
Furthermore, the Sentage Operating Companies require
the in-house specialists to contact borrowers only through the means allowed under standard procedures. The in-house specialists are not
allowed to have face-to-face contact with any borrower. When contacting borrowers over phone, in-house specialists are required to make
such calls only from operating center landline or encrypted mobile phones issued by the Sentage Operating Companies, which record all
of the telephone conversations and are subject to the system's real-time automatic monitoring.
The Sentage Operating Companies carefully select
third-party agencies by performing thorough due diligence through which the Sentage Operating Companies review their corporate history,
past business activities, professional licenses necessary for their operation, and internal compliance policies and measures, etc. In
addition to constantly monitor and evaluate third-party agencies' activities through means described in "Performance Evaluation
and Review," the Sentage Operating Companies establish guidelines and limitations on their collection actions and take measures
to enforce those guidelines and limitations. Specifically, the Sentage Operating Companies regularly pay on-site visits to ensure that
the collection actions of third-party agencies are compliant and the customers' information is properly stored and managed. Furthermore,
each third-party law firm with whom the Sentage Operating Companies collaborate is selected from an accredited industry law firm list,
has compatible information technology systems, and meet certain other specific criteria.
62
Compliance
We believe the Sentage Operating Companies'
core competence lies in the ability to provide quality customer service and compliance with applicable laws and regulations. The Sentage
Operating Companies have undertaken the following measures to ensure compliance.
Compliance Policies
The Sentage Operating Companies have adopted the
following compliance policies:
●
Employee Code of Conduct
. The Sentage Operating Companies' efforts to maintain compliant operations starts with the training and continuing education of the employees. The Employee Code of Conduct sets forth the basic code of ethics, proper business conduct and obligations to customers. In particular, the code emphasizes the importance of keeping proprietary information confidential and maintaining a high level of professionalism in the performance of work functions, and have strict guidelines that prohibit certain actions such as selling borrower information, impersonating government officials, threat of violence, and use of vulgar or inappropriate language. In addition, the code specifies the reward and disciplinary actions for employees abiding by or violating this Employee Code of Conduct and other company regulations.
●
Quality Assurance Management Plan
. The goal of implementing the Quality Assurance Management Plan is to standardize the repayment and collection management operations, minimize risks related to repayment and collection management services, and ensure compliance with government and internal regulations. The plan sets forth definitions of violating conduct, including improper management of private and personal information, procedural violations, and fraudulent conduct and violations specific to loan repayment and collection management. The plan also includes corresponding penalties for employee violations and subsequent remediation plans to minimize the damage and prevent future incidents of similar violations. The plan consists of (i) Telephone Record Inspection Regulation; (ii) Compliance Management Regulation; (iii) Information Security Regulation; (iv) Work Log Inspection Regulation; and (v) Trade Secret Protection Regulation.
Compliance Structure
In addition to implementing the Sentage Operating
Companies' compliance policies to regulate employee conduct, the Sentage Operating Companies also established an internal committee
to monitor employee conduct, investigate possible violations, and ensure policy adherence. The committee is responsible for monitoring
employee activities daily to observe and detect possible violations and investigating possible violations after the violations have been
reported to the management team of the company. The committee is also in charge of communicating with borrowers who raise disputes or
complaints in person, if necessary, in order to explain and appease the situation. The Sentage Operating Companies engage third-party
legal counsels, who assist the Sentage Operating Companies with regulation and policy interpretation.
Compliance Management
If borrowers find the Sentage Operating Companies'
repayment and collection methods and the conduct of the Sentage Operating Companies' in-house specialists unacceptable and believe
that such methods and conduct infringe upon their rights, they may initiate lawsuits against us alleging improper conduct and violations
of law. As of the date of the annual report, the Sentage Operating Companies have not been involved in any lawsuit initiated by customers.
If a customer determines that the Sentage Operating
Companies failed to comply with the Sentage Operating Companies' quality assurance obligations under the contract between the Sentage
Operating Companies and such customer, such customer may penalize the Sentage Operating Companies monetarily or rescind the contract if
the breach is severe. As of the date of the annual report, none of the customers to whom the Sentage Operating Companies have provided
services has penalized us monetarily or rescinded contracts with the Sentage Operating Companies.
63
The Sentage Operating Companies take allegations
seriously and have developed a systematic approach to avoid potential allegations. If an in-house specialist believes that a borrower
is likely to initiate a lawsuit based on his/her interaction with the borrower, he/she is required to report the case to the respective
quality assurance team. The quality assurance personnel then contact the borrower directly and seeks to address the borrower's concern
in order to reduce the likelihood of a lawsuit. Once notified of the potential lawsuit, the management team will immediately conduct a
preliminary investigation to verify the allegations. If the allegations are not substantiated and the customer is notified of the findings,
the customer may attempt to communicate with the borrower directly. If the allegations are substantiated, the Sentage Operating Companies
and the customers will both attempt to communicate with the borrower. Based on the information the Sentage Operating Companies receive
from the borrower, the Sentage Operating Companies may undertake certain actions to rectify the problem, including to compensate the borrower
after negotiation with the customers, and/or to demote or terminate the responsible in-house specialist in accordance with the Sentage
Operating Companies' compliance policies.
In an effort to avoid potential allegations, the
Sentage Operating Companies carefully assign cases to the in-house specialists, monitor employees' conduct according to the compliance
policies during the repayment and collection management process, and implement proper training to continuously educate the employees about
the Sentage Operating Companies' compliance policies and government rules and regulations. For details on the effects of the in-house
specialists' conduct on business, see "Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and
Industries—
Our employees and collection specialists of third-party agencies may violate the Sentage Operating Companies'
compliance policies and government rules and regulations during the repayment and collection management process
."
In-House Team and Third-Party Business Partners
To maximize the effectiveness of the Sentage Operating
Companies' loan repayment and collection management efforts, the in-house team, which includes service representatives and collection
specialists, is organized based on levels of seniority and specific areas of expertise. The in-house team members are organized by work
groups based on client coverage, with each work group under the supervision of a senior team member, who in turn report to a single senior
manager responsible for the work group. As the in-house team members are assigned to different stages of the repayment and collection
management process, they are able to familiarize with clients' specific needs and requirements, enhance operational efficiency and
service quality, and become specialized experts in their signed stages.
If delinquency exceeds three months, the Sentage
Operating Companies outsource loan collection services to reputable and local licensed third-party loan collection agencies, whose performance
is supervised and evaluated by the Sentage Operating Companies under a monitoring system. Specifically, these third-party agencies collect
past-due loans through various collection efforts such as professional skip-tracing and on-site visits based on specific guidelines established
by the Sentage Operating Companies' management team and set forth in a third-party service agreement. After the first six months
of delinquency, if all the previous efforts to recover past-due loans remain unsuccessful, and after having received the customers'
express authorizations, the Sentage Operating Companies then engage reputable third-party law firms and initiate judicial proceedings
against the delinquent borrower on behalf of the customers. Once the Sentage Operating Companies start their collaboration with a collection
agency or a law firm, their management actively monitors and reviews their performance and service quality on an ongoing basis. The Sentage
Operating Companies' management received analyses, including collection activities and litigation progress, from the in-house team
to evaluate the results of the efforts of the collection agency or the law firm. Based on their internal guidelines, the Sentage Operating
Companies' management may move certain loans from one third-party agency to another if it anticipates that this will result in an
increase in collection. For details of their approaches to quality assurance, see "—Quality Assurance."
As of the date of this annual report, the Sentage
Operating Companies partnered with 5 third-party collection agencies and 7 law firms. The Sentage Operating Companies entered into standard
service agreements with the collection agencies and law firms, pursuant to which the Sentage Operating Companies are obligated to pay
service fees to them after they have satisfied their performance obligations. A customer is not responsible for the service fees payable
to third-party collection agencies and law firms. The actual loan amount a customer will receive at the end of the repayment and collection
process is the entire repaid and collected loan amount.
Customers, Loans, and Services Fee
The existing loan repayment and collection management
engagements were completed by the end of 2021.
With a team of experienced loan management professionals,
the Company plans to continue its consumer loan repayment and collection management business by expanding its client base and collaborating
with third-party financial institutions. As of the date of the annual report, although the Sentage Operating Companies are in active conversation
with a number of prospective customers, the Sentage Operating Companies have not secured a new source of revenue to replace the loss of
the Sentage Operating Companies' current engagements. The Sentage Operating Companies plan to charge prospective clients on a commission
basis. The Sentage Operating Companies believe the Sentage Operating Companies' proven track record, industry reputation, integrated
repayment and collection management approach, and centralized management sets solid foundation for the Sentage Operating Companies to
develop relationships with prospective clients. However, the Sentage Operating Companies cannot guarantee the success of such business
plan.
64
Loan Recommendation Service
Business Model and Recommendation Process
As part of the strategy to diversify and expand
the product and service offerings, the Sentage Operating Companies started the loan recommendation service in June 2019. Leveraging the
advanced credit assessment and risk management capabilities, the Sentage Operating Companies carefully evaluate applications and supporting
materials submitted by individual borrowers and recommend those borrowers deemed qualified to funding partners, who in return directly
provide funds to borrowers recommended by the Sentage Operating Companies. The Sentage Operating Companies endeavor to provide a transparent,
seamless, and convenient recommendation process for both borrowers and funding partners, while safeguarding their respective interests.
During the period from the Sentage Operating Companies' business launch to December 31, 2019, the Sentage Operating Companies steadily
expanded the scale of the Sentage Operating Companies' loan recommendation business and reached US$260,388 in revenue. For the fiscal
year 2020, the Sentage Operating Companies' funding partners had approved loans to borrowers recommended by the Sentage Operating
Companies in the aggregate amount of RMB744.269 million (approximately US$107.91 million) and the Sentage Operating Companies earned $2,087,717
recommendation service revenue. For the fiscal year 2021, the Sentage Operating Companies' funding partners had approved loans to
borrowers recommended by the Sentage Operating Companies in the aggregate amount of RMB256.85million (approximately US$39.82million) and
the Sentage Operating Companies earned $1,177,822 recommendation service revenue. For the fiscal year 2022, the Sentage Operating Companies'
funding partners had approved loans to borrowers recommended by the Sentage Operating Companies in the aggregate amount of nil and the
Sentage Operating Companies earned nil recommendation service revenue.
The length of the recommendation process from
reviewing a borrower application to making a loan recommendation is typically completed within five business days. Once a prospective
borrower submits their application to the Sentage Operating Companies, the Sentage Operating Companies adopt a rigorous selection process
to assess their qualifications and minimize the borrower's default risk, use an asset-driven, disciplined risk management approach
to minimize the borrower's default risk and mitigate the impact of the borrower's default. After completing the Sentage Operating
Companies' review, the Sentage Operating Companies recommend qualified borrowers directly to the Sentage Operating Companies'
funding partners. For details, refer to "—
Step 3: Loan Recommendation
" and "—
Users and Partners
—
Financial
Institutional Partners
."
The typical borrowing cost payable by borrowers
includes (i) interest payable to the funding partners; (ii) service fee charged by us or third-party referral partners, (iii) prepayment
fee, if applicable, and (iv) penalty fee for late payment, if applicable. Subject to changes made by the Sentage Operating Companies'
funding partners, principal and interests are usually repaid on a monthly basis. Funding partners approve the prepayments and set the
rate of repayment fees. Borrowers are subject to penalty fees for late payment. Repayment fees and penalty fees are directly paid to the
Sentage Operating Companies' funding partners.
The following diagram illustrates the transaction
process through which the Sentage Operating Companies offer loan recommendation services:
65
Step 1: Screening
Either through business contacts or word-of-mouth
referral, a potential borrower applicant with needs for a mortgage may contact us over the phone and through email. A member of the Sentage
Operating Companies' credit assessment team will present an overview of mortgage products available, recommendation procedures,
and assessment criteria and approval standards, learn about the borrower's background, and briefly discuss whether his or her financing
needs can be met with the mortgage products available.
After the initial screening, the credit assessment
team will either decline or allow the applicant to apply based on available information. At this stage, approximately 30% of loan recommendation
applications are being rejected.
Step 2: Application
Borrower applicants who passed the preliminary
screening will need to fill out the application forms at the Sentage Operating Companies' headquarters in Shanghai City, China and
provide the Sentage Operating Companies with basic information, including but not limited to identification documents and other requested
personal information, such as PRC ID card details, a mobile phone number, educational level, information related to employment status,
and bank account details. Because only applicants who are able to collateralize qualified properties are considered, the Sentage Operating
Companies require them to submit a copy of ownership certificate at this stage. The prospective borrower will also be guided to authorize
the Sentage Operating Companies to gain access to their credit history and other information from external sources. For more details on
the information the Sentage Operating Companies collect from potential borrowers, see "
—
Credit Assessment and Risk
Management—Data Collection and Verification."
After reviewing a borrower applicant' materials,
the credit assessment team will determine if the borrower applicant qualifies under the internal review guidelines. The Sentage Operating
Companies' team will either decline or further process the loan recommendation application. At this stage, the Sentage Operating
Companies typically decline approximately 30% of all borrower applications.
Step 3: Credit Assessment and Risk Management
The Sentage Operating Companies conduct credit
assessments for those applicants whom the Sentage Operating Companies have selected after the preliminary review. The rigorous, comprehensive
review process involves information collection, verification, and analysis through various sources, as well as a multidimensional real
estate appraisal. Specifically, the credit assessment team evaluates the applicant's credit history, liquidity, and other criteria
to develop a borrower profile that is measured against the internal review guidelines and measures. Additionally, they analyze title reports,
credit reports, real estate holdings, disclosures, and legal reviews to ensure that the applicant is deemed credit worthy. The Sentage
Operating Companies pay extra attention to evaluating the value, conditions, risks, and the market of the property the applicant is able
to collateralize. For an applicant to receive the Sentage Operating Companies' recommendation, the Sentage Operating Companies require
that the appointed in-house appraiser and risk-management team both recommend his or her property as qualified collateral in their opinion
and report.
After the review, the Sentage Operating Companies'
credit assessment team may approve or decline the borrower application. Borrower applicants are notified of the results, and successful
applicants proceed to the loan recommendation stage. At this stage, approximately 10% to 15% of all loan recommendation applications submitted
were rejected. For details of the credit assessment process, see "—
Credit Assessment and Risk Management
."
Step 4:
Loan Recommendation
The Sentage Operating Companies recommend qualified
borrowers directly to funding partners. The funding partners, after completing their internal risk assessment and loan approval procedures,
make the final credit decisions and directly fund borrowers with mortgage suitable for borrower's financial situation. For fiscal
years 2020, 2021 and 2022, approximately 90%, 100% and nil borrowers we recommended were accepted by the funding partners.
Credit Assessment and Risk Management
The Sentage Operating Companies have devised and
implemented a systematic credit assessment model and an asset-driven, disciplined risk management approach to minimize a borrower's
default risk and mitigate the impact of default. Specifically, the Sentage Operating Companies' assessment model and risk management
capabilities not only enable us to select high-quality borrowers whose financial conditions and personal background meet the Sentage Operating
Companies selection criteria, but also protect the funding partners against lending more than they might be able to recover in the case
of default. The Sentage Operating Companies apply the same disciplined review process to all types of loan recommendation applications.
The Sentage Operating Companies' asset-driven risk management philosophy encompasses property-level due diligence, including ownership
certificate and related document review, local market liquidity analysis, trend assessment, and a rigorous appraisal process. In addition,
the Sentage Operating Companies perform individual borrower due diligence, including personal information review and verification. We
believe the ability to access, process, and analyze an extensive amount of public and proprietary information regarding the borrower and
their collateral offers the Sentage Operating Companies a differentiated perspective and risk management ability. The Sentage Operating
Companies' mission is to provide the best-in-class credit assessment and risk management, all within a streamlined, transparent,
and compliant workflow process.
Master Review Policy
The Sentage Operating Companies operate under
a documented master review policy, which outlines the standard credit assessment guidelines and risk management procedures. The guidelines
and procedures were developed, and are continually reviewed, by the senior management team comprised of individuals with over 15 years
of experience managing real estate loans. The Sentage Operating Companies revise these guidelines and procedures from time to time based
on mortgage performance feedback provided by the funding partners and as market conditions change. We believe the guidelines and procedures
are key differentiators compared to our peers, as they facilitate both speed and consistency of execution.
66
Information Collection, Verification, and Fraud
Detection
The Sentage Operating Companies utilize a proprietary
information system to store and process comprehensive information gathered through various sources, including the database, government
and Internet sources, and third-party data providers, supplemented by the manual input of data collected through on-site inspections and
other means of offline verification.
The Sentage Operating Companies collect information
about borrowers, which typically include age, education level, marital status, employment, credit history, and bank transaction history.
For information the Sentage Operating Companies collect for real estate appraisal, refer to "
—Real Estate Appraisal and
Review.
"
The Sentage Operating Companies make every effort
to ensure the accuracy and reliability of the information the Sentage Operating Companies collect, and to safeguard the privacy of such
information. For example, the Sentage Operating Companies collaborate with third parties to verify the applicant's identity by confirming
his or her name, ID number and mobile number. The Sentage Operating Companies also cross examine data they collect from different outside
sources to verify data provided by applicants. The Sentage Operating Companies require all the applicants to provide us a letter of guaranty
which guarantees the authenticity of all the information provided by them. For applicants who intend to use a mortgage to finance their
businesses, the Sentage Operating Companies verify their loan purposes by requiring them to submit contracts and supporting documents.
The Sentage Operating Companies combat fraud through
advanced analytical methods, based on the information the Sentage Operating Companies collect, as well as working with the third-party
data providers to access centralized databases of confirmed fraud cases, which serves as a critical and highly effective cross check of
their own analyses. In addition, to effectively combat against fraudulent activities, the Sentage Operating Companies have adopted internal
policies that prohibit the employees from facilitating fraudulent activities with borrowers or any other third-party.
Real Estate Appraisal and Review
The foundation of the Sentage Operating Companies'
risk management is real estate appraisal. The Sentage Operating Companies require a current real estate appraisal on all properties that
borrowers intend to collateralize. The valuation process is led by the in-house appraisers who have received rigorous training and
have years of experience evaluating a wide range of commercial and residential properties in Shanghai City, China. By leveraging their
appraisal expertise and extensive knowledge of the local market, the Sentage Operating Companies are able to factor different risks associated
with the properties into the appraisal process. Such process enables borrowers to obtain the loan amount that accurately corresponds to
the value of their properties and properly reflects the local market liquidity.
The in-house appraisers first undertake a rigorous
due diligence process involving intensive data collection, review, and analysis, to ensure that they understand the state of the market
and the risk-reward profile of the property. Specifically, they utilize the historical data, as well as verified, reputable third-party
data sources to identify market trends, comparable sales, and other relevant real estate data including government regulations and environmental
concerns. The in-house appraisers then conduct a complete visual inspection of the interior and exterior of the property, through which
they notice and examine conditions that might adversely affect the property's value, including but not limited to, location, neighborhood,
type, facing direction, floor plan and size, needed repair, decoration style, etc. To enhance the quality of the appraisal, the Sentage
Operating Companies often order property inspection reports to better understand the property's physical condition. After consolidating
information collected through various channels, the in-house appraisers compare the property with comparable sales based on a set of factors
selected to assess specific features of the property and its market conditions. To ensure the reliability of the appraisal result, the
Sentage Operating Companies also consult property values estimated by licensed, reputable third-party real estate appraisers. Currently,
the Sentage Operating Companies have maintained long-term partnerships with several third-party appraisers, which are recognized as AAA
(i.e. the highest level) appraisal institutions by the China Appraisal Society and have consistently provided appraisal-related services
to leading banks and other financial institutions across the nation during the last several decades.
For commercial properties, i.e. properties with
strong earning ability, the in-house appraisals adopt an income capitalization approach in addition to the original appraisal. Specifically,
the in-house appraisers determine an estimate of gross income, expenses, net operating income and appropriate cap rate of the property
based on available information. The estimate is then used to adjust the Sentage Operating Companies' valuation results in the original
appraisal.
The Sentage Operating Companies ask the in-house
appraisers to provide an opinion for each real estate appraisal, which is submitted to the risk management team to review. The risk management
team then analyzes the property based on the appraisal opinion, along with all other relevant data, and concludes their findings in an
internal review report. Throughout the appraisal process, the management team constantly monitor the in-house appraisers' performance
and evaluate their performance based on the institutional finding partners' feedback on the quality of the appraisal opinions.
67
The Sentage Operating Companies generally avoid
lending on properties that are special purpose in nature. Currently the Sentage Operating Companies require properties to be in Shanghai
City, China, where the Sentage Operating Companies' headquarters are located. In the future, as the Sentage Operating Companies
aim to expand the Sentage Operating Companies' presence into first-tier cities in China, qualified properties in these cities will
be acceptable collateral to us.
Mortgage Products Offered by the Funding
Partners
The mortgages borrowers obtain through the loan
recommendation services typically have the following characteristics:
Mortgage Size and Type
The mortgage loans borrowers obtain through the
recommendation services originate in principal amounts ranging from RMB1 million (approximately US$140,841) to RMB20 million (approximately
US$2.82 million). The Sentage Operating Companies use a number of credit assessment procedures and risk management measures to verify
prospective borrowers' loan purposes, including certifications from prospective borrowers, business contract and document review,
external information verification sources, and other checks. For more detail on information verification, see "—Credit Assessment
and Risk Management—Information Collection, Verification, and Fraud Detection."
Property Types
Mortgages borrowers obtained through the Sentage
Operating Companies' loan recommendation services are typically secured by the following property types:
Residential
Traditional apartment buildings, duplexes, condominiums and other properties zoned for living or dwelling
Commercial
Commercial property occupied by professional or business offices and other properties zoned for profit generation
The Sentage Operating Companies generally avoid
special-purpose properties such as assisted-living facilities. For fiscal years 2020, 2021 and 2022, residential properties constituted
the major collateral type, representing approximately 97%, 100%, and 0%, respectively, of all the mortgages borrowers have obtained through
the Sentage Operating Companies' recommendation and commercial properties represented the remaining 3% and 0%, respectively.
Geography
Currently, the Sentage Operating Companies only
consider qualified properties located in Shanghai City, China as acceptable collateral. We believe that the Sentage Operating Companies'
strategic choice on the geographical location allows us to provide high-quality appraisal services by leveraging the team's extensive
knowledge of the local market and stable business partnerships the Sentage Operating Companies have built with reputable local third-party
appraisers and other service providers. Such strategy ensures that borrowers are able to obtain the loan amount that accurately corresponds
to the value of their properties and properly reflects the local market liquidity. It also protects the funding partners against lending
more than they might be able to recover in the case of default.
Third-Party Guarantee
Depending on funding partners' specific
requirements, some of the mortgages are guaranteed by third-party guarantors.
Principal Amount
The Sentage Operating Companies do not determine
the principal amount, which is entirely decided by the funding partners. However, the funding partners do rely on credit assessment results,
appraisal opinions, and other information provided by us. The principal amount is determined by, among other factors, the borrower's
creditworthiness, the value of the property, the strength of the local market, etc. Subject to funding partners' specific requirements
and valuation metrics, property value is typically the driving factor determining the principal amount. Among all the mortgages borrowers
have obtained through the Sentage Operating Companies' recommendation, the principal amount of mortgages secured by residential
properties typically equals 50% to 70% of the estimated property value, whereas the principal amount of mortgages secured by commercial
properties typically does not exceed more than 50% of the estimated property value.
Term and Interest Rate
Depending on the types of funding partners, a
borrower' specific loan purpose, and the value of the borrower's collateralized property, mortgage term ranges from one year
to ten years. The mortgage interest rate is entirely decided by the funding partners.
The typical mortgage in the Sentage Operating
Companies' product portfolio provides a fixed-rate, interest-only term. As of April 22, 2023, all the mortgages borrowers have obtained
through the Sentage Operating Companies' recommendation had an initial loan term of 24 to 36 months with an interest rate of 6%
to 8%.
68
Borrowers and Partners
Borrowers
The Sentage Operating Companies aim to serve individual
business owners who are able to collateralize qualified properties. The number of borrowers who have used the loan recommendation services
has been growing rapidly.
The Sentage Operating Companies' value proposition
to individual business owners is convenient access to various mortgage products offered by the Sentage Operating Companies' network
of funding partners. Specifically, due to fast-evolving commercial environment, limited planning abilities, and the lack of a nationwide
credit rating system in China, these business owners have limited credit access through traditional financial institutions and lack alternative
borrowing channels with reasonable cost. The Sentage Operating Companies also strive to provide them a transparent, easily navigable recommendation
process through a comprehensive range of customized services. At the initial stage of the Sentage Operating Companies' recommendation
process, the Sentage Operating Companies provide clear documentation requirements and recommend different funding sources and mortgage
products to borrowers based on their personal background and specific financing needs. The Sentage Operating Companies take time to explain
terms and conditions of specific mortgage products in details and assist borrowers in application material preparation. Throughout the
recommendation process, the Sentage Operating Companies endeavor to serve as the intermediary between borrowers and funding partners to
resolve any confusion or misunderstanding caused by information mismatch.
For prospective borrowers the Sentage Operating
Companies acquired through business contacts, the Sentage Operating Companies do not directly charge them any fees. Instead, the Sentage
Operating Companies' referral partners first charge borrowers service fees for their referral. The Sentage Operating Companies then
charge the referral partners a commission as a percentage of the loan amount pursuant to the service agreements between us and the referral
partners. Referral partners typically pay us commission fees within 30 days after funding partners provide loans to borrowers. For the
remaining prospective borrowers, we directly charge them service fees pursuant to the Sentage Operating Companies' service agreements
with such prospective borrowers. The service fee is charged as a percentage of the loan amount. A borrower pays us the service fee in
a lump sum upon receiving the proceeds of the mortgage from a funding partner.
All the borrowers are geographically concentrated
in Shanghai City, China. In the future, as the Sentage Operating Companies expand the presence into first-tier cities in China, the Sentage
Operating Companies will consider prospective borrowers who are able to collateralize qualified properties in these cities.
Business Partners
Funding Partners
The Sentage Operating Companies provide loan recommendation
services to individual borrowers and work with a group of funding partners with whom the Sentage Operating Companies have established
long-term business partnerships. The Sentage Operating Companies do not provide funds to each borrower, nor do they get funds from the
funding partners. The Sentage Operating Companies only serve as an intermediary between borrowers and the funding partners to facilitate
the borrowing process. Funding partners are financial institutions that provide loans to borrowers. Funding partners in China can be commercial
banks, small loan companies, pawnshops, trust companies, and asset management companies. The funding partners the Sentage Operating Companies
work with are required to be fully compliant and licensed financial institutions with stable financial resources, which are recognized
by the Chinese government. The Sentage Operating Companies can match different borrowers with the funding partners according to each borrower's
qualifications, such as the value of its collaterals, its business cash flow, financial credit status, and repayment schedules. Currently,
the Sentage Operating Companies do not maintain any cooperative contracts with any funding partners. The Sentage Operating Companies are
not substantially dependent upon any agreements with any of these funding partners.
Specifically, the Sentage Operating Companies
leverage the advanced credit assessment and risk management capabilities to select high-quality borrower applicants whose financial conditions
and personal background meet the selection criteria, estimate the value of their property through a rigorous appraisal process, and recommend
qualified borrower applicants to the funding institutional partners. After receiving recommendations, the funding partners may elect to
underwrite mortgages based on their own risk appetites.
The Sentage Operating Companies continuously work
on strengthening the cooperation with funding partners and organically expanding their network of funding partners. For the fiscal year
2021, the funding partners had approved loans to borrowers recommended by us in the aggregate amount of RMB256.85million (approximately
US$39.82 million). In the past, all the financial institution funding partners are commercial banks, the majority of which are reputable
national and regional banks. In the future, the Sentage Operating Companies plan to expand and diversify the funding partner base by seeking
opportunities to collaborate with other kinds of institutions and organizations, including pawnshops, micro-lending companies, etc.
The Sentage Operating Companies establish relationships
with the funding partners through word-of-mouth referrals and referrals made by the shareholders and management team members, many of
whom have established extensive connections in the financial industry based on their professional experience.
69
The funding partners choose to partner with the
Sentage Operating Companies for access to the Sentage Operating Companies' borrower applicants base, enhanced credit assessment
and risk management capabilities, and other services, including borrower and product matching. The Sentage Operating Companies'
value proposition is further magnified by the repeat lending and cross-selling opportunities the Sentage Operating Companies provide to
them. Once borrowers are connected to funding partners through the Sentage Operating Companies' services, funding partners will
be able to extend more loans and sell other financial products to such borrowers. The Sentage Operating Companies do not receive any fees
or commissions on such additional loan products. Historically, the Sentage Operating Companies have delivered value in the form of a delinquency
rate of zero percent for the funding partners. However, there is no guarantee that the Sentage Operating Companies will maintain a low
default rate in the future, as the Sentage Operating Companies only recently started the loan recommendation business and the default
rate may change as the mortgage loans granted to borrowers the Sentage Operating Companies recommended become more seasoned. As the Sentage
Operating Companies have built their industry credibility and earned trust from funding partners based on the proven track record, they
are currently exploring the possibility to provide new services to them, such as post-origination services. Although subject to regulations
on loan recommendation services, their business model does not subject us to the relevant local regulatory requirements that are applicable
to online lending platforms since the Sentage Operating Companies do not provide online financing intermediary services. We believe that
the Sentage Operating Companies' strengthened cooperation with funding partners allows us to sustainably grow their business and
mitigate the negative impact brought by the continuing challenging regulatory environment in China.
Other Partners
●
Borrower acquisition
. The Sentage Operating Companies leverage cooperation with referral partners to acquire borrowers. As of the date of this annual report, the Sentage Operating Companies do not maintain any cooperative contracts with any third-party referral partners. A referral partner first charges a borrower service fee for its referral pursuant to their service agreement. The Sentage Operating Companies then charge the referral partner a commission as a percentage of the loan amount pursuant to the service agreement between us and the referral partner. For more details on the Sentage Operating Companies' collaboration with referral partners, see "—
Borrowers
." Currently, the Company does not maintain any cooperative contracts with any referral partners. The Sentage Operating Companies are not substantially dependent upon any agreements with any of these referral partners.
●
Property Appraisal
. To ensure the reliability of their appraisal result, the Sentage Operating Companies consult property values estimated by licensed and reputable third-party real estate appraisers. The Sentage Operating Companies currently maintain long-term partnerships with several third-party appraisers which are recognized as AAA (i.e. the highest level) appraisal institutions by the China Appraisal Society. Currently, the Sentage Operating Companies do not maintain any cooperative contracts with any third-party appraisers. The Sentage Operating Companies are not substantially dependent upon any agreements with any of these third-party appraisers.
●
Data
. In addition to publicly available sources, the Sentage Operating Companies use services provided by technology companies, such as Tianyancha and Qichacha, to access larger borrower databases. In the future, the Sentage Operating Companies also plan to work with other technology service providers to further expand the database and diversify the verification channels, which allow them to enhance the credit assessment model and optimize the operational efficiency. Currently, the Sentage Operating Companies do not maintain any cooperative contracts with any one of these service providers. The Sentage Operating Companies are not substantially dependent upon any agreements with any of these service providers.
Prepaid Payment Network Services
The Sentage Operating Companies' Business
Model
The Sentage Operating Companies started providing
prepaid payment network services in August 2019, offering seamless, convenient and reliable payment services to merchants across different
industries. Specifically, the Sentage Operating Companies offer prepaid cards to individual consumers who, after purchasing such prepaid
cards from us, will be able to buy goods and services offered by the merchant customers with their prepaid cards and recharge such cards
online. The proceeds generated from the actual sales of the prepaid card are deposited into an escrow account designated and monitored
by the PBOC. Leveraging the partnership with NetsUnion, the Sentage Operating Companies' prepaid card payment services enable qualified
merchants selected by us after rigorous internal review to accept prepaid-card payments using traditional payment terminals. The Sentage
Operating Companies provide merchant customers with payment-related technology consulting and support services and prepaid card payment
services. The Sentage Operating Companies charge merchant customers two separate fees for each kind of services the Sentage Operating
Companies provide. For details on services the Sentage Operating Companies provide and fees they charge, see "—Technology
Consulting and Support Services," "—Prepaid Card Payment Services," and "—Our Customers—
Pricing
."
The payment service business enables the Sentage
Operating Companies to develop a deep understanding of customers' needs and will allow them to provide merchants with continuously
improving services and technologies. For fiscal years 2020, 2021, and 2022, revenue generated from the prepaid payment network services,
consisted of technology consulting and support fees, was US$432,958, US$928,565, and US$ 161,372 respectively.
Technology Consulting and Support Services
For any merchant customer who need payment-related
technical consulting and support, the Sentage Operating Companies provide a tailored payment solution to the merchant customer, interface
its internal system with the prepaid card payment system, and offer personnel training to ensure that the merchant's staff know
how to properly operate such system. For details on the technology consulting and support services the Sentage Operating Companies charge,
see "—Our Customers—
Pricing
."
70
Prepaid Card Payment Services
For any merchant customers who need prepaid card
payment services, the Sentage Operating Companies collect and process information necessary for prepaid card issuance and authorize transaction
requests after verifying transaction information. The Sentage Operating Companies also conduct the necessary know-your-client, or KYC,
and other due diligence review of cardholders and merchant customers in order to assess and mitigate fraud risks based on the information
the Sentage Operating Companies collect from them. For details on the technology consulting and support services the Sentage Operating
Companies charge, see "—Our Customers—
Pricing
."
The Sentage Operating Companies' Role
in the Prepaid Card Payment Value Chain
From the front end, non-cash transactions involving
prepaid cards between merchants and consumers seem simple and direct as consumers pay for the goods and/or services while merchants accept
consumers' payment and offer such goods and/or services. However, such transactions are far more complicated when looking from the
back end and cannot be completed in the absence of the interactions among different parties involved. The Sentage Operating Companies
act as a payment service provider and play an essential role in the prepaid payment network value chain. The diagram below illustrates
the payment process for the payment services and the role of each participant involved:
Payment Process:
(1)
A consumer interested in the prepaid cards can submit his or her prepaid card application either online or at the offline operating center.
(2)
The Sentage Operating Companies issue the prepaid card to the consumer after reviewing and approving his or her application. The Sentage Operating Companies accept those consumers whose personal background information and financial conditions meet the selection criteria. For more details on information we review and verify, see "—Risk Management and Internal Control—Prepaid Card Applicants' Information Verification." The monetary value of the prepaid card is equal to the total amount the consumer paid us along with his or her application. The proceeds generated from the actual sales of the prepaid card are deposited into an escrow account designated and monitored by the PBOC, and funds in the escrow account will only be transferred out of the account when they are used for prepaid card payments.
(3)
The consumer initiates a payment to a merchant to purchase goods and/or services that such merchant offers.
(4)
The consumer generates a payment request by swiping, tapping or inserting his or her prepaid card on a payment terminal.
(5)
The Sentage Operating Companies, as payment service provider, process the consumer's payment request. The Sentage Operating Companies also verify the payment information as the prepaid card issuer. Once the verification of the payment is completed, the Sentage Operating Companies will approve the transaction and send a notification of approval to NetsUnion.
(6)
NetsUnion, after verifying the payment information through its internal procedures, sends the payment result to the merchant and settles the fund in the escrow account to the merchant's account in the receiving bank. If the merchant pays the service fee on a per-transaction basis, NetsUnion settles the fund in the escrow account net of the service fee. If the merchant pays the entire service fee upfront before the Sentage Operating Companies start providing services, NetsUnion settles the original fund in the escrow account. For details on the service fee the Sentage Operating Companies charge, see "—Our Customers—
Pricing
." NetsUnion's responsibilities include connecting and switching transactions among payment service providers, issuers, and merchants, and enabling payment authorization. NetsUnion does not charge any fees for payments it processes.
(7)
The merchant confirms receipt of the payment.
71
Customer Onboarding
First, prospective merchant customers apply to
open an account on the Sentage Operating Companies' platform. After reviewing application materials, the Sentage Operating Companies
onboard the customers and connect them to NetsUnion. Once connected, customers can enjoy the safe and fast payment services and receive
consumers' payments made with prepaid cards issued by us. For details on the transaction process and the Sentage Operating Companies'
role in the prepaid payment network value chain, see "—Prepaid Card Payment Services— Our Role in the Prepaid Payment
Network Value Chain."
To ensure the quality of the customer profile
and minimize the business risk, the Sentage Operating Companies conduct due diligence to assess prospective customers with the following
steps.
●
Merchant assessment
. The Sentage Operating Companies' direct sales force is mainly responsible for sourcing new merchants. They identify and select prospective merchants usually by conducting an on-site inspection to evaluate the merchant's operations, financial condition and credit standing.
●
Collecting application materials
. The Sentage Operating Companies' customers need to submit application materials either online or at the Sentage Operating Companies' offline operating center. The Sentage Operating Companies collect customers' application materials and information according to the internal checklist. For instance, the Sentage Operating Companies collect copies of their business licenses, valid identification documents of legal representatives or the persons-in-charge, bank account opening certificates, pictures of their business premises and other relevant certification documents.
●
Customer approval
. The Sentage Operating Companies adopt a stringent approach and implement know-your-customer internal procedures, including (i) verifying the accuracy of information in application materials; (ii) checking the customer against the Sentage Operating Companies' internal and industry blacklists; (iii) conducting necessary inspections to verify the authenticity of application materials; and (iv) determining the customer's risk rating according to the internal policies and relevant regulations.
Customers
The Sentage Operating Companies connect the corporate
customers with their consumers in various industries. As of the date of the annual report, the Sentage Operating Companies have 12 customers,
which are Shandong Ciyun Information Technology Co., Ltd., Hengyu international trade (Qingdao) Co., Ltd., Qingdao Zhanhongyu Network
Technology Co., Ltd., Qingdao Henhai Co. Ltd., Qingdao Tongsheng Property Management Co.Ltd., Qingdao Qianheyi Trading Co. Ltd., Rizhao
You Grain City Electronic Technology Co., Ltd., Shanghai Hai shang Ming Zhu Film Co. Ltd., Fuan Information Technology (Qingdao) Co. Ltd.,
Qingdao Kece Innovation Consulting Service Co., Ltd.Anhui Yuzhilan Education Software Technology Co., Ltd. and Qingdao Nuolizhi Enterprise
Management Co., Ltd. The Sentage Operating Companies plan to work with midsized supermarkets, shopping malls, and online platforms. The
Sentage Operating Companies believe that by reaching corporate customers of various sizes, the Sentage Operating Companies can build a
solid foundation to expand the service base and provide more diversified financial solutions that fit into more payment scenarios.
The Value Proposition
The merchant customers choose the Sentage Operating
Companies because the Sentage Operating Companies are a licensed prepaid card issuer capable of offering multipurpose prepaid cards and
a licensed payment service provider. In order to issue multipurpose prepaid cards, which can be used to purchase goods and services from
a diverse group of merchants across industries and regions, and provide related payment services, a service provider must obtain a third-party
payment license that allows such activities. As a result of the tightened control imposed by the PBOC over payment licenses, it has become
much harder to obtain such licenses from relevant regulatory bodies in China. A license applicant must undergo a time-consuming application
process, be able to pay an expensive application fee, and satisfy stringent standards adopted by the regulatory bodies. In light of the
strong entry barriers, the payment license is a unique asset that distinguishes us from competitors. Without such license, a prepaid issuer
can issue only single-purpose prepaid cards, which are limited to purchasing goods and services provided by the card issuer or companies
related to the card issuer.
Contract Terms
The Sentage Operating Companies enter into a standard
contract with each merchant customer for the services. The term of the Sentage Operating Companies' agreements with payment service
customers is normally one year, which automatically renews at the end of each term. Each party reserves the right to terminate the agreement
at any time with 30 days' written notice to the other party.
Pricing
The Sentage Operating Companies charge merchant
customers technology consulting and support fees for designing tailored payment solutions, interfacing their internal systems with the
prepaid card payment system, and providing their staff with relevant operation training. Depending on the estimated annual transaction
amount agreed by us and the particular merchant customer, the technology consulting and support fee ranges from RMB100,000 (approximately
US$14,474) to RMB300,000 (approximately US$43,423). The merchant pays us the entire technology consulting and support fee upfront after
it enters into the service agreement with us and before the Sentage Operating Companies start providing services.
72
The Sentage Operating Companies charge merchants
fees for payment services, including, but not limited to, collecting and processing information necessary for prepaid card issuance and
authorizing transaction requests after verifying transaction information. Depending on factors including demand for payment services,
market trends and conditions, and the regulatory environment for the third-party payment services industry in China, the payment service
fee is equal to either (i) 0.3% to 0.5% of each transaction amount or (ii) 0.2% of the estimated annual transaction amount. Merchant customers
may choose which payment method it prefers. If the merchant pays the service fee on a per-transaction basis, for each transaction for
which the merchant uses the payment services, NetsUnion settles the fund in the escrow account designated and monitored by the PBOC net
of the service fee to the merchant's account in the receiving bank. Alternatively, the merchant pays the entire service fee upfront
after it enters into the service agreement with us and before the Sentage Operating Companies start providing services. NetsUnion does
not charge any fees for payments it processes.
Customer Services
Leveraging the advanced technologies, the Sentage
Operating Companies have established a lean and productive customer service team specialized in handling customer relationships. Customers
can reach the customer service team through email, hotlines, social media accounts, and their website.
Each customer request, enquiry or complaint is
recorded and assigned a specific case reference. Each of the customer service assistant is responsible for the cases assigned to them
and will follow up until the case is closed or resolved to the customers' satisfaction. The Sentage Operating Companies' policy
requires that the customer service personnel must respond to each customer complaint within one business day and address the relevant
issues within three to four business days. As of the date of this annual report, the Sentage Operating Companies achieved a zero customer-complaint
report rate, which is a measure of the dissatisfaction of the services as reported by customers.
Sales and Marketing
The Sentage Operating Companies promote the business
through direct marketing. Currently, the business covers Qingdao City, Shandong Province in China. The Sentage Operating Companies'
in-house marketing department, which consists of experienced professionals, is responsible for coordinating the direct marketing efforts.
To promote the sales, the Sentage Operating Companies are exploring opportunities to develop strategic partnerships with independent third-party
sales agents, placing online advertisements with selected high-traffic social media platforms and high-traffic searching engines, and
launching referral programs.
Collaboration with NetsUnion
NetsUnion is a clearing platform for internet
and other network payments in China. According to the PBOC, after June 30, 2018, third-party payment service providers, including prepaid
payment network service providers, are required to channel internet payments via NetsUnion, rather than banks' payment gateways.
In July 2019, the Sentage Operating Companies
became a member of NetsUnion, and entered into a network access agreement with it. Under the agreement, NetsUnion is responsible for channeling
payment information from us to merchants and providing clearing services regarding the corresponding payment transactions. NetsUnion does
not charge any fees for payments it processes. Under the network access agreement, the Sentage Operating Companies are required to comply
with NetsUnion's membership rules and fulfil the obligations in deterring money laundering and terrorist financing pursuant to the
applicable laws and regulations. The Sentage Operating Companies are obligated to indemnify NetsUnion for any losses caused by fictitious,
inaccurate, incomplete, illegal or invalid transactions the Sentage Operating Companies facilitate. NetsUnion is obligated to compensate
the direct losses that arise from failures of its system. The Sentage Operating Companies' agreement with NetsUnion does not have
a term; instead, as long as the Sentage Operating Companies' third-party payment license is valid and the Sentage Operating Companies
conduct business activities related to payment services, the agreement with NetsUnion remains in effect.
Risk Management and Internal Control
The Sentage Operating Companies are subject to
various risks in the operations. For details on risks the Sentage Operating Companies are subject to, see "Item 3. Key Information—D.
Risk Factors—Risks Related to Our Business and Industries." The Sentage Operating Companies have established a dynamic, technology-driven
risk management system and adopted relevant policies and procedures, which we consider suitable for the business operation. The Sentage
Operating Companies also continue to monitor and review the risk management and internal control systems in order to quickly adapt to
changes in market conditions, product and service offerings, and the regulatory environment.
The Sentage Operating Companies have an independent
risk management committee dedicated to the prepaid payment network business line. Led by the risk management committee, the risk management
and internal control team is responsible for verifying information, preventing and detecting any sign of fraud and money laundering, and
monitoring the daily implementation of each department's internal control procedures and measures.
Prepaid Card Applicants' Information
Verification
Prepaid card applicants will need to provide us
with basic information, including, but not limited to, identification documents and other requested personal information, such as PRC
ID card details, a mobile phone number, educational level, and information related to employment status.
The Sentage Operating Companies make every effort
to ensure the accuracy and reliability of the information the Sentage Operating Companies collect, as well as safeguard the privacy of
such information. For example, the Sentage Operating Companies collaborate with third parties to verify the applicant's identity
by confirming his or her name, ID number and mobile number. The Sentage Operating Companies also cross-examine data the Sentage Operating
Companies collect from different outside sources to verify data provided by applicants.
73
Fraud
The Sentage Operating Companies have fraud risk
management policies and procedures in place to govern the business operation. The Sentage Operating Companies leverage the data analytics
capacities to detect fraud risk in the payment services through the real-time transaction risk monitoring and fraud risk analysis systems.
The Sentage Operating Companies' multi-faceted and effective fraud management system automatically aggregates data relating to fraud
in the database. Built upon the large database collected via the own platform, the system is able to assess the probability of suspicious
activities. The Sentage Operating Companies have established a dedicated fraud detection team. The team regularly tests and refines anti-fraud
rules to tackle new developments and trends, which allows us to quickly respond to emerging fraudulent threats and identify unknown fraud
patterns. Based on the risk assessment results of the system, the team also conducts onsite investigation, administering a series of tests
on suspicious account users.
Money laundering
The Sentage Operating Companies have established
internal control policies and procedures to monitor and report any suspected money laundering activities as part of the due diligence
and risk assessment procedures. The Sentage Operating Companies have developed a risk management system that facilitates the customer
due diligence procedures and is deigned to identify and intercept suspicious transactions. The Sentage Operating Companies continuously
analyze suspicious patterns and trends of completed transactions, update the list of suspicious recipients, and refine the algorithm.
The Sentage Operating Companies also provide education and training to the staff on anti-money laundering and anti-terrorist financing.
In addition, the Sentage Operating Companies have an anti-money laundering and anti-terrorist financing committee to monitor compliance
with the relevant laws and regulations. The Sentage Operating Companies submit reports to the PBOC on suspicious transactions the Sentage
Operating Companies identified and relevant customer identity information in accordance with the relevant regulatory requirements. As
of the date of this annual report, the Sentage Operating Companies have not encountered any incident where the Sentage Operating Companies
failed to screen and report merchants identified as suspected money launderer to the PBOC.
Infrastructure and Information Technology
The Sentage Operating Companies are currently
applying for copyrights in the PRC for the proprietary technology systems, which include the information system and account management
system. The Sentage Operating Companies' internal management system is copyrighted and its registration was completed on April 26,
2020. As of April 22, 2023, the Sentage Operating Companies had a team of 3 full-time employees to monitor and maintain the information
technology and infrastructure. To promote the long-term business growth, the Sentage Operating Companies' technology team focuses
on ensuring that the technology systems, operating centers, financial systems, and security protocols are well established, reviewed,
tested and continuously strengthened.
●
IT Infrastructure.
We believe the Sentage Operating Companies have built a secure, efficient, and cost-effective infrastructure to provide strong computing ability in the system. As of April 22, 2023, the information technology infrastructure included 15 servers, which form a strong server network with speedy processing capability. The infrastructure has been fully integrated with the computer environments and business requirements to serve as a powerful engine for the products and services.
●
Information System.
We believe the ability to access and use data is essential to the operations. The Sentage Operating Companies' centralized computer-based information system supports the core processing and analytics functions of the business lines under a set of integrated databases. It is designed to be both replicable and scalable to accommodate the internal growth. Supported by the set of databases, the information system can efficiently process and analyze high volumes of data, securely store the data on a cloud server, and provide each of the departments with convenient access to data. The information system empowers us to generate comprehensive reports and achieve data visualization from accessible data to support the management's instant decision-making to cope with the evolving competitive landscape.
When used for loan repayment and collection management,
the information system screens out outdated borrower information on the record and merges borrower information in order to detect any
repeating activity pattern and map potential relationships among borrowers based on the information the Sentage Operating Companies are
authorized to use. The information system also strengthens the borrower profiling function by enabling the operating portal to categorize
borrowers and facilitate repayment and collection assignment based on non-personally identifiable information such as location, gender,
the composition of loans, and past-due period.
To enhance the credit assessment and risk management
capabilities in the loan recommendation process, the Sentage Operating Companies have built a comprehensive credit profile in the information
system for each borrower and constantly update the profile with new information the Sentage Operating Companies have collected through
various internal and external verification resources. Leveraging the behavior analytics capabilities, the Sentage Operating Companies
are able to consolidate and analyze information of each profile to estimate borrowers' credit needs and assess delinquency risk.
74
The Sentage Operating Companies' sophisticated
data insights and data analytics capabilities have driven the rapid growth of the prepaid payment network business line. Through comprehensive
merchant profiling, the Sentage Operating Companies are able to quickly and accurately identify risks associated with potential clients,
captures fraud signals from a massive amount of data regarding user behaviors, analyze them in real time, and intercepts abnormal transactions
at an early stage. Theses abilities are crucial in reducing the transaction loss rate and gaining valuable insights into the clients'
businesses.
●
Internal Management System.
The Sentage Operating Companies aim to leverage the proprietary internal management system, which is currently used for the loan repayment and collection management business, to optimize the operational efficiency and achieve workflow automation. Under the system, the operating portal digitizes and standardizes the repayment and collection management process by consolidating skip tracing tools, borrower profiles, repayment records, and other functions under one platform. The Sentage Operating Companies use the operating portal for, among other things, case assignment, portfolio management, collection activity management, and repayment management. We believe that the system affords the in-house team sufficient operational support to efficiently perform tasks related to loan repayment and collection management.
●
Account Management System.
The Sentage Operating Companies have developed a proprietary account management system, which the Sentage Operating Companies currently use to provide the prepaid payment network services, to facilitate centralized management of customers' accounts and related information. This system consolidates and manages all the customers' account information, including procedures and standards for customers' account opening. It tracks the balances of customer accounts, allowing more transparent management of funds movements. The system is built upon the extensive experience of serving a diverse customer base. The Sentage Operating Companies update the system on a regular basis in order to continuously improve its reliability, efficiency and compatibility with the services and evolving regulatory requirements.
●
Backup System.
The Sentage Operating Companies maintain two independent full capacity network servers in two separate locations. If one server experiences technical difficulties or outage, network operations immediately switches to the other server to ensure uninterrupted network services to the employees.
●
Security System.
To protect the databases from unauthorized access, the Sentage Operating Companies configure the system with multiple layers of security modules. The Sentage Operating Companies' security system monitors and records the entire process of data access, showing us in real-time the identity of users accessing the system and channels through which the users access the system. Furthermore, through periodically reviewing the operation history, examining USB/external hard drives, and implementing security measures for the internal management system, the Sentage Operating Companies are able to manage and restrict employees' access to personal and financial information. In addition, the Sentage Operating Companies have installed a firewall which monitors and controls incoming and outgoing traffic and automatically takes reactive measures against any information security threats.
The Sentage Operating Companies' data security
and management capabilities have been certified by various national standards, including (i) the Level 3 Certification of Information
System Protection, (ii) the Safety Certification on Payment Facilities for Non-Financial Institution, and (iii) the Account Data Security
Standard evaluation.
●
Technology Upgrade.
The Sentage Operating Companies actively develop new software and explore greater use of technology to manage data resources. The Sentage Operating Companies will continue to improve the current information technology and infrastructure, which in turn is expected to enable us to utilize the technology and data resources more efficiently. See "—Our Strategies" for a detailed discussion of the technology upgrades.
Privacy Protection
The Sentage Operating Companies are dedicated
to privacy protection of the clients during all phases of the businesses. The Sentage Operating Companies have access to a significant
amount of data that could be considered as confidential, including operational data and personal information of the clients and other
parties. The Sentage Operating Companies consider the protection of such confidential information to be important. The Sentage Operating
Companies adopted a strict internal data policy to protect confidential information at all levels. This policy establishes day-to-day
data use requirements, data and information classifications, data encryption requirements, back-up requirements, approval procedures and
user rights for confidential information. This policy also specifies the methods in which data must be stored, such as in encrypted format
and with backup. The Sentage Operating Companies require each of the employees to agree in writing to abide by the data policy and to
protect the confidentiality of the data.
The Sentage Operating Companies use a variety
of technologies to protect data with which the Sentage Operating Companies are entrusted and have a team of data security professionals
dedicated to the ongoing review and monitoring of data security practices. For example, the Sentage Operating Companies store all collection
related data in encrypted format and strictly limit the number of personnel who can access those servers that store such data. The Sentage
Operating Companies also utilize firewall to protect against potential attacks or unauthorized access. The Sentage Operating Companies
endeavor to deploy security enhancements across all the business lines to ensure data protection. Since the inception, the Sentage Operating
Companies have not experienced any material information breach or other system failure which could have led to the loss of confidential
information.
75
Competition
The industries in which the Sentage Operating
Companies are operating are competitive and evolving. With respect to loan repayment and collection management and loan recommendation,
the Sentage Operating Companies compete with market players such as traditional financial institutions, small loan companies, e-commerce
driven installment platforms, and other consumer finance platforms. For repayment and collection management, the Sentage Operating Companies'
major competitors include China Data Group (Suzhou) Limited, M&Y Global Services, and Promisechina (Shanghai) Investment Co., Ltd.
For loan recommendation, the Sentage Operating Companies primarily compete with institutions such as Shanghai Qingpu Real Estate Investment
Property Co., Ltd, Shanghai Hongkou Real Estate Service Co., Ltd. and Shanghai Yangpu Public Housing Asset Management Co., Ltd. With respect
to prepaid payment network services, the Sentage Operating Companies primarily compete with other third-party payment service providers
in China, including Shandong Chenglian Card Payment Co., Ltd., Qingdao Baisentong Payment Co., Ltd., and Shandong Feiyin Intelligent Technology
Co., Ltd.
Some of the larger competitors have significantly
more financial, technical, marketing and other resources than the Sentage Operating Companies do and may be able to devote greater resources
to the development, promotion, sale and support of their development. The competitors may also have more extensive borrower bases, greater
brand recognition and brand loyalty and broader partner relationships than us. We believe that the Sentage Operating Companies'
ability to compete effectively for borrowers and partners depend on many factors, including the variety of the Sentage Operating Companies'
products and services, user experience on the Sentage Operating Companies' platform, effectiveness of the Sentage Operating Companies'
risk management, the Sentage Operating Companies' technological capabilities, the risk-adjusted returns offered to customers, the
partnership with third parties, the marketing and selling efforts and the strength and reputation of the Sentage Operating Companies'
brand.
Furthermore, as the business grows, Sentage Operating
Companies face significant competition for highly skilled personnel, including management, engineers, product managers and risk management
personnel. The success of the growth strategies depends in part on the Sentage Operating Companies' ability to retain existing personnel
and add additional highly skilled employees.
Intellectual Property
We regard the Sentage Operating Companies'
copyrights, domain names, and trademark as critical to our success, and the Sentage Operating Companies rely on trade secret law and confidentiality
clauses in employment agreements with their employees and others to protect their proprietary rights. The Sentage Operating Companies
are currently applying for copyrights for their proprietary technology systems, which include the information system and account management
system. To date, the Sentage Operating Companies have not experienced a material misappropriation of the intellectual property. Despite
their efforts to protect the property rights, third parties may attempt to use, copy, obtain, or distribute the proprietary technology.
The Sentage Operating Companies cannot be certain that the steps they have taken or will take in the future will prevent misappropriation
of the technology and intellectual property rights. For a description of the risks related to the intellectual property rights, see "Item
3. D. Risk Factors—Risks Related to Our Business and Industries—
We may not be able to prevent others from unauthorized
use of our intellectual property, which could harm our business and competitive position
."
As of the date of this annual report, Qingdao
Buytop owns the trademark Buytop, effective from February 21, 2014 to February 20, 2034, and the domain name www.buytoppay.com, effective
from December 16, 2016 to December 16, 2023. Daxin Zhuohui owns the copyrighted internal management system, which became effective on
April 26, 2020.
Properties and Facilities
The corporate headquarters is in Shanghai City,
China, where we lease two office spaces with an area of approximately 170.59 square meters (approximately 1,836 square feet) and an area
of approximately 185 square meters (approximately 1,991 square feet), as of December 31, 2022. The term of the two leases are from November
1, 2022 to October 31, 2024, and from July 20, 2022 to March 19, 2023, respectively. The monthly rental fee is approximately US$8,426
and US$ 3,292.06, correspondingly. The headquarters serve as the center of management, human resources, and administrative activities,
as well as the operation center of the loan repayment and collection management and loan recommendation businesses. In addition to the
headquarters in Shanghai, the Sentage Operating Companies also lease office space in Qingdao City, Shandong Province, China for the prepaid
payment network operations. The office space of the office in Qingdao City has an area of approximately 143 square meters (approximately
1,540 square feet). The term of the lease is from December 1, 2022 to November 30, 2023, and the monthly rental fee is approximately US$1,812.
We believe that the Sentage Operating Companies
will be able to obtain adequate facilities, principally through leasing, to accommodate the future expansion plans.
Seasonality
The Sentage Operating Companies' businesses
are not affected by seasonality.
Insurance
The Sentage Operating Companies provide social
security insurance including pension insurance, unemployment insurance, work-related injury insurance and medical insurance for the employees.
The Sentage Operating Companies do not maintain business interruption insurance or general third-party liability insurance, nor do the
Sentage Operating Companies maintain product liability insurance or key-man insurance. The Sentage Operating Companies consider the insurance
coverage to be sufficient and in line with market practice for the business operations in China.
76
PRC REGULATIONS
This section sets forth a summary of the principal
PRC laws, regulations, and rules relevant to our business and operations in China.
Regulations on Loan Repayment and Collection Management Services
Currently, the PRC has not adopted any laws or
regulations directly regulating independent loan repayment and collection management service providers. As an intermediary service provider,
we are subject to the PRC contract law as codified in the PRC Civil Code, discussed in detail as below and its specific provisions regulating
contracts for intermediary services.
Regulations on Loan Recommendation Services
Overview
Under the current PRC regulatory regime, the legal
definition and regulatory principles of loan recommendation services and specific regulatory requirements regarding the services have
not been clarified in any relevant promulgated laws or regulations. However, the following laws and regulations, as well as other new
regulatory proposals, may be applicable to governmental authorities' supervision of loan recommendation services and the loan recommendation
industry.
Regulations Related to Private Lending and Intermediation
In accordance with the PRC Civil Code, promulgated
in May 2020 and effective as of January 1, 2021, a contract for intermediary services is a contract under which the intermediary reports
to the client on opportunities for the conclusion of contracts or supplies intermediary services relating to the conclusion of contracts,
and the client pays remuneration to the intermediary. The intermediary shall provide the client with a strictly truthful account of all
matters relating to the conclusion of any contract. Where the intermediary deliberately conceals important matters relating to the conclusion
of contracts or supplies a false account of the situation, to the detriment of the client's interests, the intermediary shall not
demand the payment of remuneration and shall also be liable to provide compensation for any losses sustained. In addition, the PRC Civil
Code requires that the interest rates charged under a loan agreement must not violate the applicable provisions of the PRC laws and regulations.
In accordance with the Provisions on the Supreme
People's Court on Application of Laws to the Hearing of Private Lending Cases (《最高人民法院关于审理民间借贷案件适用法律若干问题的规定》)
("the Private Lending Judicial Interpretations 2015") issued by the Supreme People's Court of the PRC on August 6, 2015,
which came into effect on September 1, 2015, private lending is defined as financing between individuals, legal entities and other organizations.
Loans funded by financial institutions which are licensed by financial regulatory authorities are not private lending transactions. Besides,
the Private Lending Judicial Interpretations 2015 provides that agreements between the lender and borrower on loans with annual interest
rates below 24% are valid and enforceable; as to loans with annual interest rates between 24% and 36%, if the interest on the loans has
already been paid to the lender, and so long as such payment has not damaged the interest of the state, the community and any third parties,
the courts will turn down the borrower's request to demand the return of the interest payment; if the annual interest rate of a
private loan is higher than 36%, the excess will be void. When the borrower requests the lender to return such amount above 36% that has
been paid, the People's Court should support it..
The Decisions of the Supreme People's Court
on Revising the Provisions on Several Issues concerning the Application of Law in the Trial of Private Lending Cases (最高人民法院关于修改《关于审理民间借贷案件适用法律若干问题的规定》的决定)
(the Private Lending Judicial Interpretations 2020), promulgated by the Supreme People's Court on August 19, 2020 and came into
effect on August 20, 2020, stipulates that if the lender requests the borrower to pay interests at the interest rate specified in the
contract, the interest rate shall not exceed the market quote rate for one-year loan announced monthly by the National Inter-bank Funding
Center, namely Loan Prime Rate ("LPR"), taking effect from August 20,2019 as authorized by the People's Bank of China.
If a lending activity occurs before August 20, 2019 and a lawsuit is filed after August 20, 2020, its interest rate shall be four times
of the quoted market interest rate of one-year loans at the time of the plaintiff's lawsuit to determine the protected interest
rate ceiling. While, if a lending activity occurs between August 20, 2019 and August 20, 2020 and the lawsuit is filed after August 20,
2020, its interest rate shall be four times of the quoted interest rate of the one-year loan market at the time of the lending behavior
to determine the protected upper limit.
In accordance with the Provisions on the Supreme
People's Court on Application of Laws to the Hearing of Private Lending Cases (Revised for the Second Time in 2020) (《最高人民法院关于审理民间借贷案件适用法律若干问题的规定（2020年第二次修正）》)
("the Private Lending Judicial Interpretations 2020") amended by the Supreme People's Court of the PRC on December 29,
2020, which came into effect on January 1, 2021. If a private lending lawsuit is filed after August 20, 2020, the lending activity is
before August 20, 2020, and the interest from the date of the lending act to August 19, 2020 shall be calculated according to the judicial
interpretation at the time of the lending act; the interest portion from August 20, 2020 to the date of loan repayment shall be capped
at four times the one-year loan market quoted interest rate at the time of the lawsuit.
Our loan recommendation business of connecting
borrowers and lenders constitutes an intermediary service, and our contracts with lenders and borrowers are intermediary contracts defined
under the PRC Civil Code. Article 1 of the Private Lending Judicial Interpretations 2020 stipulates that private lending is defined as
financing between individuals, legal entities and other organizations and such provisions shall not apply to disputes arising from related
financial services, such as disbursement of loans, provided by financial institutions and their branches established with the approval
of the financial regulatory authorities to engage in loan businesses. Since our funding partners in loan recommendation business are commercial
banks in China, the disputes related to loan recommendation arising from funding partners and borrowers shall not be regulated by the
Private Lending Judicial Interpretations 2020. However, the disputes arising from the existing loan that we recommended before the end
of 2017 shall comply with the Private Lending Judicial Interpretations 2015 and 2020. Even if the individual lenders of the existing loans
we recommended before the end of 2017 are required to lower the interest rate of the loans to quadruple one-year LPR by the regulatory
authorities or the courts, our business operation will not be affected. Because we have already collected our service fee and there is
no explicit provisions that require us to return to borrowers the amount of our service fee that exceeds the quadruple one-year LPR.
77
Regulations on Illegal Fund-Raising
The Circular on Relevant Issues Concerning the
Penalty on Illegal Fund-Raising was issued by the General Office of the State Council in July 2007, and the Regulation on the Prevention
and Disposition of Illegal Fund-raising Practices was promulgated by the State Council in December 2020 and became effective on May 1,
2021, explicitly prohibit illegal public fund-raisings. In accordance with the aforementioned regulations, the following are the key elements
of illegal public fund-raising: (i) the pooling of funds from unspecified objects, (ii) by promise to repay principal and interest or
provide other investment returns, (iii) without the permit of the financial administrative department under the State Council in accordance
with law or in violation of financial regulations of the State.
In December 2010, the Supreme People's Court
promulgated the Judicial Interpretations to Issues Concerning Applications of Laws for Trial of Criminal Cases on Illegal Fund-Raising,
which sets up the criteria, criminal charges and the punishment on illegal fund-raising. On February 23, 2022, the Supreme People's
Court published the "Promulgated Interpretation of the Supreme People's Court on Several Issues Concerning the Specific Application
of Law in the Trial of Criminal Cases of Illegal Fundraising", which became effective on March 1 2022 as an amendments to the 2010
judicial interpretation.
Through our loan recommendation business, we provide
loan recommendation services to connect qualified borrowers with prospective lenders, who are our funding partners. Our services do not
involve raising funds from borrowers or the lenders.
Future Regulation Development Related to Loan Recommendation
Services
The State Council released the Guiding Opinions
on Promoting the Standardized and Healthy Development of the Platform Economy (《关于促进平台经济规范健康发展的指导意见》)
on August 1, 2019, which requires the implementation and improvement of comprehensive and prudent supervision of financial platforms,
promotes the establishment and improvement of a new regulatory mechanism tailored to specific features of financial platforms, and promotes
a fair, competitive market environment for financial platforms. The Research Group of China Institute of Inclusive Finance at Remin University
of China believes that the opinions provide a clear regulatory framework for governmental authorities to regulate loan recommendation
services.
In accordance with the opinions, the research
group believes that the central regulatory authorities, such as CBRC, shall supervise the overall the regulation of loan recommendation
services on a macro level, formulating nationwide unified regulatory principles, and provide specific regulatory requirements, which shall
be implemented by other governmental authorities at lower level.
As the interpretation of the aforementioned regulation
is still being debated and there has not been official promulgation and implementation of any law or regulation specifically addressing
regulatory issues surrounding loan recommendation services, the opinions as discussed above do not have an adverse impact our loan recommendation
business. However, in light of the evolving and developing nature of the regulatory regime regarding loan recommendation services, it
is probable that the Chinese government will adopt regulations and policies that may temporarily restrain the scale and growth of our
loan recommendation services in the future.
Regulations on Third-Party Payment Services, which Include Prepaid
Payment Network Services
Overview
In China, a payment institution shall be subject
to the supervision and management by PBOC in accordance with relevant law and regulations. Non-financial institutions and individuals
shall not engage in any kind of third-party payment business without the approval of the PBOC. The PBOC shall, under the supervision of
the State Council, implement monetary policies, perform its functions, take precautions against systematic financial risks, and maintain
financial stability of the general economic environment in China.
The Payment & Clearing Association of China
("PCAC"), approved by the State Council and Ministry of Civil Affairs of the People's Republic of China ("Ministry
of Civil Affairs"), is a self-disciplined organization of the PRC payment and clearing service industry. The operations of the PCAC
are governed by the PBOC. Its purpose is to ensure various payment institutions' compliance with the industry standards of the payment
and clearing service industry.
Payment License
In accordance with the Administrative Measures
of People's Bank of China on Payment Services Provided by Non-financial Institutions (Order of the People's Bank of China
(2010) No. 2, "Order No.2") (中国人民银行令[2010]第2号《非金融机构支付服务管理办法》)
promulgated by the PBOC on June 14, 2010 and amended in 2020, the payment services of non-financial institutions in the PRC refers to
all or part of the following transfer services of monetary capital, which are provided by non-financial institutions as an intermediary
between payees and payers: (i) online payment; (ii) issuance and acceptance of prepaid card; (iii) bank card acceptance; and (iv) other
payment services as specified by the PBOC. Online payment refers to the act of transferring monetary capital between payers and payees
through public and private networks, including money transfer, payment via the Internet, payment by mobile phone, payment by fixed-line
telephone, digital television payment, etc. Prepaid cards refer to the advanced value issued for the purpose of making profit and used
to purchase commodities or services of business entities beyond the issuer, including prepaid cards issued in the form of physical card
and digital password. The bank card acceptance refers to the act of collecting monetary capital for business activities involving bank
cards through terminals of point-of-sells (POS).
78
Pursuant to Order No.2, to provide payment services,
a non-financial institution shall obtain a "Payment License" to qualify as a paying institution. A paying institution shall
conduct operation activities within the business scope approved in the "Payment License" and may not carry out any business
beyond the approved scope nor outsource its payment business to other parties. A paying institution may not assign, lease, or lend the
"Payment License."
According to our Payment License and the approved
business scope of the Payment License, we are allowed to provide prepaid cards payment services and related business services. Our Payment
License was issued by the PBOC on July 20, 2017. The Payment License is valid from July 20, 2017 to July 19, 2022. On June 27, 2022, the
PBOC renewed our Payment License, which is valid until July 19, 2027.
Regulations on Foreign Investment in the Payment Services
According to Order No. 2, subject to the State
Council's approval, the PBOC shall stipulate requirements for the business scope of a foreign-invested payment institution and the
qualifications and the capital contribution ratio of the payment institution' foreign investors. According to the Announcement No.
7 of the People's Bank of China (2018) (中国人民银行公告(2018)第7号《关于外商投资支付机构有关事宜公告》)
("No. 7 Announcement"), which was issued by the PBOC and became effective on March 19, 2018, upon the State Council's
approval, the relevant requirements of the foreign-invested payment institutions include the following: (I) An overseas institution intending
to provide electronic payment services for domestic transactions and cross-border transactions of domestic entities in the PRC shall establish
a foreign-invested enterprise in the PRC and obtain a Payment License in accordance with the criteria and procedures stipulated in Order
No. 2 of the PBOC. (II) A foreign-invested payment institution shall possess a secured and standardized business system and a disaster
recovery system in the PRC, so the payment institution is able to independently complete payment transactions; (III) Storage, processing
and analysis of personal information and financial information collected and generated in the PRC by a foreign-invested payment institution
shall be carried out in China. Where it is necessary to transmit such information overseas for the purpose of processing cross-border
transactions, the transmission shall comply with relevant laws and administrative regulations and requirements of relevant regulatory
authorities. The foreign-invested payment institution shall require the overseas institution to satisfy its confidentiality obligations
and obtain information owners' consents. (IV) A foreign-invested payment institution must ensure that its corporate governance,
routine business operation, risk management, fund processing, deposit of reserves and contingency arrangements comply with the regulatory
requirements of the PBOC regarding non-bank payment institutions.
No. 7 Announcement only sets out the general requirements
for overseas institutions applying for Payment Licenses, but has not promulgated any detailed requirements and measures for domestic institutions
which already obtained Payment Licenses and, through internal reorganization, have become foreign-invested payment institutions. Qingdao
Buytop, the VIE, already obtained its Payment License prior to entering into a series of VIE Agreements with Sentage WFOE. Although we
believe that No.7 Announcement does not have any material adverse impact on the overall business of Qingdao Buytop, there are uncertainties
as to how Announcement No.7 will be interpreted and implemented.
Regulations on Prepaid Cards Business of Payment Institutions
Order No. 2 regulates the prepaid cards (issued
by magnetic stripe, chip and other technologies in the form of cards, passwords, etc.) issued by non-financial institutions for profit
purpose and used by card owners to purchase goods and(or) services provided by parties other than the card issuer into the regulatory
scope of the payment system. Because we issue prepaid cards and provide prepaid card related services, through the VIE entity, Qingdao
Buytop, order No.2 applies to us.
In accordance with Implementation Rules for the
Administrative Measures on Payment Services Provided by Non-financial Institutions (《非金融机构支付服务管理办法实施细则》)
introduced by PBOC on December 1, 2010, and revised on June 2, 2020, January 1, 2021, and September 1, 2021, the prepaid cards stated
in Order No. 2 do not include the following types: (i) prepaid cards used for the payment of social security only; (ii) prepaid cards
used for public transport only; (iii) prepaid cards used for the payment of telephone and other telecommunication charges only; and (iv)
prepaid cards issued to purchase the card issuer's commodities and services.
The Notice on Regulating the Management of Commercial
Prepaid Cards, which was issued by the PBOC, the Ministry of Supervision of the People's Republic of China, and Other Departments,
and shared by the General Office of the State Council on May 23, 2011, (GBF [2011] No.25, "Notice No.25") (《国务院办公厅转发人民银行监察部等部门关于规范商业预付卡管理意见的通知》),
sets forth regulatory bodies' opinions on strengthening the regulatory administration over issuers of commercial prepaid cards,
enforcing financial discipline, preventing financial risks, and promoting anti-corruption and promoting transparent governance. Notice
No.25 has confirmed the classification of commercial prepaid cards specified in the implementation rules specified above and approved
the category-based supervision of prepaid cards. Pursuant to Notice No.25, prepaid cards are further divided into two categories based
on the characteristics of non-financial institution issuers, including (i) multi-purpose prepaid cards, which can be used across regions,
industries, and legal persons, and (ii) single-purpose prepaid cards, which can be used to purchase goods and services provided by the
enterprise acting as the card issuer or other commercial enterprises affiliated with the card issuer. Pursuant to Notice No.25, the PBOC
shall strengthen supervision over the opening and use of deposit accounts designated for the provision of multi-purpose prepaid cards.
The Ministry of Commerce of the People's Republic of China and relevant commerce administration authorities shall take effective
measures to supervise prepayment funds involving single-purpose prepaid cards and prevent relevant risks.
On September 27, 2012, the PBOC promulgated the
Administrative Measures for Prepaid Cards Business of Payment Institutions (Announcement of the People's Bank of China [2012] No.12,
"Announcement No.12") (《支付机构预付卡业务管理办法》),
which fully implemented the real name registration system, non-cash card purchase system, and quota issuance system for prepaid card business
of payment institutions in accordance with the requirements of Notice No.25. Pursuant to Announcement No.12, the PBOC and its branches
shall carry out off-site supervision and on-site inspection of payment institutions' prepaid card business activities, internal
control system, and risk management capabilities in accordance with relevant laws and regulations. A payment institution shall obtain
the "Payment License" issued and approved by the PBOC in order to engage in the business of "issuing and(or) accepting
prepaid cards." Payment institutions shall strictly implement regulatory provisions pertaining to managing payment institution clients'
funds and fulfill their obligations related to anti-money laundering and anti-terrorist financing.
79
Our Payment License issued
by the PBOC satisfies the Payment License requirement of Announcement No. 12. We have obtained qualifications necessary for providing
prepaid payment network services, which is a subcategory of third-party payment services, in accordance with existing laws, regulations
and regulatory requirements regarding third-party payment services in China. In light of the evolving and changing nature of the payment
industry, it is probable that we will still need to obtain other permits or approvals for our prepaid payment network services business
in the future.
Regulations on Detection and Authentication Management of Payment
Business System
The Regulations on Inspection and Verification
of Non-financial Institutions Payment Service Business System (《非金融机构支付服务业务系统检测认证管理规定》)
was promulgated by the PBOC on June 16, 2011. The regulations came into effect on the same day. The regulations specified, among other
requirements, safety and management requirements for third-party payment institution business system and communication system. Pursuant
to the regulations, the PBOCs is responsible for approving and managing regulatory activities related to inspecting and verifying the
qualifications of payment institutions. Certification institutions, which are approved by relevant regulatory authorities and certified
and authorized by the PBOC, are qualified to inspect the business system of third-party payment institutions and issue certifications
for those qualified payment institutions after the inspection.
Through the VIE entity, Qingdao Buytop, we own
the Technical Certification of Payment Service Facilities of Non-banking Payment Institutions (registration number: CFNR201801370551),
which was issued by Beijing Zhongjin Guosheng Authentication Co., Ltd., on May 8, 2018 for three years, which was subsequently renewed
to be valid until December 4, 2023.
Regulations on Anti-Money Laundering and Anti-Terrorism Financing
The Anti-Money Laundering Law of the People's
Republic of China ("Anti-Money Laundering Law")(《中华人民共和国反洗钱法》)
was promulgated by the Standing Committee of the National People's Congress on October 31, 2006 and came into force on January 1,
2007. The Anti-Money Laundering Law stipulates that specific non-financial institutions shall take precautionary and monitoring measures
and comply with their anti-money laundering obligations. The Anti-Money Laundering Law includes establishing a sound client identification
system, client identification information and transaction record-keeping system, block transaction and suspicious transaction reporting
system. According to Order No. 2 of PBOC, a payment institution that has obtained the Payment License, such as the VIE entity, Qingdao
Buytop, shall comply with applicable regulations in the Anti-Money Laundering Law and fulfill its anti-money laundering obligations. The
PBOC and its branches shall conduct on-site and non-site inspections on the payment institution to periodically review and evaluate anti-money
laundering measures the payment institution has taken to comply with the Anti-Money Laundering Law.
Measures for Anti-Money Laundering and Anti-Terrorism
Financing of Payment Institutions ("YF Decree No. 54")( 银发54号令《支付机构反洗钱和反恐怖融资管理办法》),
promulgated by the PBOC on March 5, 2012, came into force on the same day. YF Decree No. 54 stipulates that a payment institution which
has obtained the Payment License shall carry out the obligations of anti-money laundering and anti-terrorism financing in accordance with
the law. The main aspects include client identification, client identification information, transaction record-keeping, suspicious transaction
reports, anti-money laundering and anti-terrorism financing surveys, etc. The Management Measure on Large and Suspicious Transactions
"Yin Fa No. 3") (银发3号令《金融机构大额交易和可疑交易报告管理办法》),
which was amended in 2018, was promulgated by the PBOC on December 28, 2016 and came into effect on July 1, 2017. Yin Fa No. 3 stipulates
that payment institutions shall fulfill their obligations of reporting large transactions and suspicious transactions and formulate internal
management systems and operational regulations and procedures for reporting large transactions and suspicious transactions to establish
a sound monitoring system for large transactions and suspicious transactions.
The Administrative Measures for the Reporting
of Major Events by Non-bank Payment Institutions
On July 20 2021,The People's
Bank of China Promulgated "the Administrative Measures for the Reporting of Major Events by Non-bank Payment Institutions",
which became effective on September, 1 2021. This measure requires that Branch offices of the PBC shall, in concert with the payment institutions
(including branch companies) within their respective jurisdictions, establish a reporting mechanism for major events. This measure requires
payment institutions to report each major event in a timely, truthful, accurate, and complete manner, and also defines the situation of
the scope of major event risk or emergency occurs. When relative major event happens, the company, as a Non-bank Payment Institution,
shall submit a written report to the local branch office of The People's Bank of China within a certain period. If the Non-bank
Payment Institution did not report in the manner of this measure, the People's Bank of China or any of its branch offices shall
order it to make rectification within a prescribed time limit and may take regulatory measures, such as regulatory notice, and may impose
punishments on it in accordance with the Administrative Measures on Payment Services Provided by Non-Financial Institutions, and a warning
or a fine of between 10,000 yuan and 30,000 yuan may be given.
Depository Measures for Clients' Provisions
of Non-bank Payment Institutions
On January 19, 2021, People's Bank of China
promulgated "Depository Measures for Clients' Provisions of Non-bank Payment Institutions", which became effective on
March 1, 2021. This measure regulates the centralized depository of customer reserves after the centralized deposit of reserves. The provisions
on the storage, use and transfer of reserve funds have been refined by this measure. This measure also clarified the corresponding reserve
management responsibilities of the People's Bank of China and its branches, clearing institutions, and reserve banks, set the penalty
standards for customer reserve violations, and strengthened the supervision of customer reserve funds. The clients' provisions received
by non-bank payment institutions shall be directly deposited in full amount to the People's Bank of China or qualified commercial
banks. The clients' provisions received directly by non-bank payment institutions due to the issuance of prepaid cards or the top
up of prepaid cards shall be deposited in a unified manner into the accounts for centralized deposit and management of provisions through
the dedicated deposit accounts for prepaid cards. The clients' provisions can only be used for the payment service entrusted by
clients and other circumstances as prescribed by these Measures.
80
Notice on Further Preventing and Dealing
with Speculation Risks in Virtual Currency Trading
On September 15 2019, the People's Bank
of China, and other relevant PRC governmental authorities jointly promulgated "Notice on Further Preventing and Dealing with Speculation
Risks in Virtual Currency Trading", which became effective on the same day. According to the measure, the business activities related
to virtual currencies are illegal financial activities. Financial institutions and non-banking payment institutions shall not provide
account opening, fund transfer or clearing and settlement services for the business activities related to virtual currencies, or include
virtual currencies into the scope of collaterals, nor shall they carry out insurance business related to virtual currencies, or include
virtual currencies into the scope of insurance liability. Any violation of laws and regulations detected shall be reported to the relevant
authorities in a timely manner. The company should not provide any service in accordance with virtual currency.
Data Security Law of the People's
Republic of China
Regulations relating to Information Security
and Privacy Protection
Internet content in China is regulated and restricted
from a state security standpoint. On December 28, 2000, the SCNPC enacted the Decisions on Maintaining Internet Security (《全国人民代表大会常务委员会关于维护互联网安全的决定》),
later amended on August 27, 2009, which subject violators to criminal punishment in China for any effort to: (1) use the Internet to market
fake and substandard products or carry out false publicity for any commodity or service; (2) use the Internet for the purpose of damaging
the commercial goodwill and product reputation of any other person; (3) use the Internet for the purpose of infringing on the intellectual
property of any person; (4) use the Internet for the purpose of fabricating and spreading false information that affects the trading of
securities and futures or otherwise jeopardizes the financial order; or (5) create any pornographic website or webpage on the Internet,
provide links to pornographic websites, or disseminate pornographic books and magazines, movies, audio-visual products, or images. Pursuant
to the Administrative Measures for the Security Protection of Computer Information Networks Linked to the Internet (《计算机信息网络国际联网安全保护管理办法》)
which was promulgated by the Ministry of Public Security (the "MPS") on December 16, 1997 and later amended and became effective
on January 8, 2011, the Internet is prohibited to be used in ways which, among other things, would result in a leakage of state secrets
or a spread of socially destabilizing content. On December 13, 2005, the MPS promulgated the Provisions on the Technical Measures for
the Protection of the Security of the Internet (《互联网安全保护技术措施规定》)
which require internet service providers to take proper measures including anti-virus, data back-up and other related measures, to keep
records of certain information about its users (including user registration information, log-in and log-out time, IP address, content
and time of posts by users) for at least 60 days, and to detect illegal information, stop transmission of such information, and keep relevant
records. If an internet information service provider violates these measures, the MPS and the local public security bureaus may recommend
that the original certificate examination, approval and issuing organizations revoke its operating license and shut down its websites.
Pursuant to the Circular of the MPS, the State Secrecy Bureau, the State Cipher Code Administration and the Information Office of the
State Council on Printing and Distributing the Administrative Measures for the Graded Protection of Information Security (《公安部、国家保密局、国家密码管理局、国务院信息化工作办公室关于印发〈信息安全等级保护管理办法〉的通知》)
which was promulgated on June 22, 2007, the state shall, by formulating nationally effective administrative norms and technical standards
for the graded protection of information security, organize citizens, legal persons and other organizations to grade information systems
and protect their security, and supervise and administer the graded protection work. The security protection grade of an information system
may be classified into the five grades. To newly build an information system of Grade II or above, its operator or user shall, within
30 days after it is put into operation, handle the record-filing procedures at the local public security organ at the level of municipality
divided into districts or above of its locality.
PRC governmental authorities have enacted laws
and regulations on internet use to protect personal information from any unauthorized disclosure. On December 28, 2012, the SCNPC promulgated
the Decision on Strengthening Network Information Protection (《关于加强网络信息保护的决定》),
which became effective on the same day, to enhance the legal protection of information security and privacy on the Internet. On July 16,
2013, the Ministry of Industry and Information Technology of the PRC (the "MIIT") promulgated the Provisions on Protection
of Personal Information of Telecommunication and Internet Users (《电信和互联网用户个人信息保护规定》)
to regulate the collection and use of users' personal information in the provision of telecommunication services and internet information
services in China. Telecommunication business operators and internet service providers are required to establish its own rules for collecting
and use of users' information and cannot collect or use users' information without users' consent. Telecommunication
business operators and internet service providers are prohibited from disclosing, tampering with, damaging, selling or illegally providing
others with, collected personal information.
On June 10 2021, Standing Committee of the National
People's Congress promulgated the "Data Security Law of the People's Republic of China", (《中华人民共和国个人信息保护法》),,
which became effective on September 1 2021. The law requires data collection to be carried out in a lawful and proper manner and stipulates
that for data protection purposes, data processing activities must be carried out based on a hierarchical protection system of data classification
and data security. According to this law, The outbound security management of important data collected and generated by operators of critical
information infrastructure during their operations within the territory of the People's Republic of China shall be governed by the
provisions of the Cybersecurity Law of the People's Republic of China, which is Conduct security assessments in accordance with
the measures formulated by the national cybersecurity and informatization department in conjunction with the relevant departments of the
State Council. Measures for the security management of the exit of important data collected and generated by other data processors during
their operations within the territory of the People's Republic of China shall be formulated by the national cybersecurity and informatization
department in conjunction with the relevant departments of the State Council. Currently, China has not promulgated clear approval rules
or assessment requirements for the security management of data export by "other data processors". Therefore, we currently
do not need to conduct security assessments or seek approval from relevant authorities under the Data Security Law.
81
Cybersecurity Review Measures
On November 7, 2016, the SCNPC published the Cyber
Security Law of the PRC (《中华人民共和国网络安全法》),
or the Cyber Security Law, which took effect on June 1, 2017 and requires network operators to perform certain functions related to cyber
security protection and the strengthening of network information management. For instance, under the Cyber Security Law, network operators
of key information infrastructure shall store within the territory of the PRC all the personal information and important data collected
and produced within the territory of PRC and their purchase of network products and services that may affect national securities shall
be subject to national cybersecurity review.
On April 13, 2020, the Cyberspace Administration
of China and other departments issued Cybersecurity Review Measures (《网络安全审查办法》),
which took effect on June 1, 2020, to provide for more detailed rules regarding cybersecurity review requirements. On July 10, 2021, the
CAC issued the Circular on Seeking Comments on Cybersecurity Review Measures (Revised Draft for Comments) (the "Review Measures
Draft").
On July 10, 2021, the CAC issued the Circular
on Seeking Comments on Cybersecurity Review Measures (Revised Draft for Comments) (the "Review Measures Draft") (《网络安全审查办法（修订草案征求意见稿）》),
which required, among others, in addition to any "critical information infrastructure operators ("CIIOs")," any
"data processor" controlling personal information of no less than one million users which seeks to list in a foreign stock
exchange should also be subject to cybersecurity review.
On November 14, 2021, the CAC published the Network
Internet Data Protection Draft Regulations (draft for comments), (《网络数据安全管理条例（征求意见稿）》),
and accepted public comments until December 13, 2021. The Network Internet Data Protection Draft Regulations provides that data processors
refer to individuals or organizations that autonomously determine the purpose and the manner of processing data. If a data processor that
processes the personal data of more than one million users intends to list overseas, it shall apply for a cybersecurity review. In addition,
data processors that process important data or are listed overseas shall carry out an annual data security assessment on their own or
by engaging a data security services institution, and the data security assessment report for the prior year should be submitted to the
local cyberspace affairs administration department before January 31 of each year.
Later on, December 28, 2021, the CAC and other
relevant PRC governmental authorities jointly promulgated the Cybersecurity Review Measures Transfer (《网络安全审查办法》),
which took effect on February 15, 2022. The Cybersecurity Review Measures provide that, in addition to CIIOs that intend to purchase Internet
products and services, net platform operators engaging in data processing activities that affect or may affect national security must
be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity Review Measures, a cybersecurity
review assesses potential national security risks that may be brought about by any procurement, data processing, or overseas listing.
The Cybersecurity Review Measures require that an online platform operator which possesses the personal information of at least one million
users must apply for a cybersecurity review by the CAC if it intends to be listed in foreign countries.
On July 7, 2022, the CAC published the Measures
for the Security Assessment of Outbound Data Transfer (《数据出境安全评估办法》),
which effected on September 1, 2022. The measures apply to the security assessment of important data and personal information collected
and generated during operation within the territory of the People's Republic of China and transferred abroad by a data handler.
According to the Measures, if a data handler transfers data abroad under any of the following circumstances, it shall file to the State
Cyberspace Administration for security assessment via the Province Cyberspace Administration: (i) a data handler who transfers important
data to abroad; (ii) a critical information infrastructure operator, or a data handler processing the personal information of more than
1 million individuals transfers personal information to abroad；(iii) since January 1 of the previous year, a data handler cumulatively
transferred abroad the personal information of more than 100,000 individuals, or the sensitive personal information of more than 10,000
individuals, or；(iv) other circumstances where the security assessment for the outbound data transfer is required by the State
Cyberspace Administration. See "Item 3. Key Information—D. Risk Factor— Risks Related to Doing Business in China—
Recent
greater oversight by the Cyberspace Administration of China, or the CAC, over data security, particularly for companies seeking to list
on a foreign exchange, could adversely impact our business and our offering
."
Our PRC legal counsel, has advised us that, based
on its understanding of the Cyber Security Law, we are not a network operator and not subject to the requirements imposed to network operators
under the Cyber Security Law. However, as a non-network operator, like any individual or organization, we have an obligation under the
Cyber Security Law not to acquire personal information by stealing or through other illegal means, or illegally sell or provide personal
information to any other person. As of the date of this annual report, we are in material compliance with the Cyber Security Law, and
this law has not had a significant impact on our business operations. However, our PRC legal counsel has further advised us that there
are uncertainties as to how the Cyber Security Law will be interpreted or amended by competent authorities in the future.
Regulations Relating to Employment, Social Insurance and Housing
Provident Fund
Employment
According to the PRC Labor Law, or the Labor Law,
which was promulgated by the Standing Committee of the National People's Congress, or the SCNPC, on July 5, 1994, came into effect
on January 1, 1995, and was amended on August 27, 2009 and December 29, 2018, an employer shall develop and improve its rules and regulations
to safeguard the rights of its employees. An employer shall establish and develop labor safety and health systems, stringently implement
national protocols and standards on labor safety and health, get employees to receive labor safety and health education, guard against
labor accidents and reduce occupational hazards. Labor safety and health facilities must comply with the relevant national standards.
An employer must provide employees with the necessary labor protection gear that complies with labor safety and health conditions stipulated
under national regulations, and provide regular health examinations for employees that are engaged in work with occupational hazards.
Employees engaged in special operations must receive specialized training and obtain pertinent qualifications. An employer shall develop
a vocational training system. Vocational training funds shall be set aside and used in accordance with national regulations, and vocational
training for employees shall be carried out systematically based on the actual conditions of the Company.
82
The Labor Contract Law of the PRC, which was promulgated
by the SCNPC on June 29, 2007, amended on December 28, 2012, and came into effect on July 1, 2013, combined with the Implementation Regulations
on Labor Contract Law, which was promulgated and became effective September 18, 2008, regulate the parties to labor contracts, namely
employers and employees, and contain specific provisions relating to the terms of labor contracts. Under the Labor Contract Law and the
Implementation Regulations on Labor Contract Law, a labor contract must be made in writing. An employer and an employee may enter into
a fixed-term labor contract, an un-fixed term labor contract, or a labor contract that concludes upon the completion of certain work assignments,
after reaching agreement upon due negotiations. An employer may legally terminate a labor contract and dismiss its employees after reaching
agreement upon due negotiations with its employees or by fulfilling the statutory conditions. Where a labor relationship has already been
established without a written labor contract, the written labor contracts shall be entered into within one month from the date on which
the employee commences working.
Social Insurance
The Law on Social Insurance of the PRC, which
was promulgated on October 28, 2010, and became effective on July 1, 2011 and was amended on December 29, 2018, has established social
insurance systems of basic pension insurance, unemployment insurance, maternity insurance, work injury insurance and basic medical insurance,
and has elaborated in detail the legal obligations and liabilities of employers who do not comply with relevant laws and regulations on
social insurance.
According to the Interim Regulations on the Collection
and Payment of Social Insurance Premiums, the Regulations on Work Injury Insurance, the Regulations on Unemployment Insurance and the
Trial Measures on Employee Maternity Insurance of Enterprises, enterprises in the PRC shall provide benefit plans for their employees,
which include basic pension insurance, unemployment insurance, maternity insurance, work injury insurance and basic medical insurance.
An enterprise must provide social insurance by going through social insurance registration with local social insurance authorities or
agencies, and shall pay or withhold relevant social insurance premiums for or on behalf of employees.
Housing Provident Fund
According to the Administrative Regulations on
the Administration of the Housing Provident Fund, which was promulgated and became effective on April 3, 1999, and was amended on March
24, 2002 and March 24, 2019, housing provident fund contributions paid and deposited both by employees and their unit employer shall be
owned by the employees.
A unit employer shall undertake registration of
payment and deposit of the housing provident fund in the housing provident fund management center and, upon verification by the housing
provident fund management center, open a housing provident fund account on behalf of its employees in a commissioned bank. Employers shall
timely pay and deposit housing provident fund contributions in the full amount and late or insufficient payments shall be prohibited.
With respect to unit employers who violate the regulations hereinabove and fail to complete housing provident fund payment and deposit
registrations or open housing provident fund accounts for their employees, such unit employers shall be ordered by the housing provident
fund administration center to complete such procedures within a designated period. Those who fail to complete their registrations within
the designated period shall be subject to a fine of between RMB10,000 and RMB50,000. When unit employers are in breach of these regulations
and fail to pay deposit housing provident fund contributions in the full amount as they fall due, the housing provident fund administration
center shall order such unit employers to pay within a prescribed time limit, failing which an application may be made to a people's
court for compulsory enforcement.
Regulations relating to Foreign Investment
On December 27, 2021, the Special Administrative
Measures for the Access of Foreign Investment (Negative List) (外商投资准入特别管理措施(负面清单)
(2021年版)) (the "Negative List 2021"), which was promulgated by NDRC and MOFCOM and became effective on January
1, 2022, replaced the Negative List 2020. Industries listed in the Negative List 2021 are divided into two categories with respect to
foreign investment: restricted and prohibited. Industries not listed in the Negative List are generally deemed as falling under a third
"permitted" category and are generally open to foreign investment unless otherwise specifically restricted by other PRC regulations.
Our principal businesses are precluded from the
Negative List 2021 and is thus within a permitted industry for foreign investment.
Regulations relating to Foreign-Owned Enterprises
The establishment, operation and management of
corporate entities in China are governed by the Company Law of the PRC (《中华人民共和国公司法》)
(the "PRC Company Law"), which was promulgated by the SCNPC on December 29, 1993 and last amended and became effective on
October 26, 2018. Under the PRC Company Law, companies are generally classified into two categories, i.e., limited liability companies
and joint stock limited companies. The PRC Company Law also applies to foreign-invested limited liability companies. According to the
PRC Company Law, any stipulations by other PRC laws governing foreign investment shall prevail over the PRC Company Law.
Pursuant to the Law on Wholly Foreign-owned Enterprises
of the PRC (《中华人民共和国外资企业法》) (the "Law
on Wholly Foreign-owned Enterprises of the PRC"), which was promulgated by the SCNPC on April 12, 1986, last amended on September
3, 2016 and became effective on October 1, 2016, where the establishment of wholly foreign-owned enterprises does not involve the implementation
of special access administrative measures prescribed by the state, the establishment, breakup, merger, or any other major change and the
operation period of such enterprises are subject to record-filing administration.
83
The Implementing Rules for the Law on Wholly Foreign-owned
Enterprises of the PRC (《中华人民共和国外资企业法实施细则》)
(the "Implementing Rules on Wholly Foreign-owned Enterprises") was promulgated by the State Council on December 12, 1990,
then was amended on April 12, 2001 and February 19, 2014, and became effective on March 1, 2014. According to the Implementing Rules on
Wholly Foreign-owned Enterprises, industries in which the establishment of wholly foreign-owned enterprises is prohibited or restricted
shall be regulated in accordance with the provisions of the State about foreign investment orientation and the Catalogue.
The Law on Wholly Foreign-owned Enterprises of
the PRC and the Implementing Rules on Wholly Foreign-owned Enterprises have been repealed by the Foreign Investment Law of the PRC (《中华人民共和国外商投资法》
(the "Foreign Investment Law"), which was adopted by the National People's Congress on March 15, 2019 and came into
effect on January 1, 2020. According to the Foreign Investment Law, the State shall implement the management systems of pre-establishment
national treatment and negative list for foreign investment. The pre-establishment national treatment refers to the treatment given to
foreign investors and their investments during the investment access stage, which is not lower than that given to their domestic counterparts.
The negative list refers to special administrative measures for the access of foreign investment in specific fields as stipulated by the
State. The State shall give national treatment to foreign investment beyond the negative list. The organization form, institutional framework
and standard of conduct of a foreign-funded enterprise shall be subject to the provisions of the PRC Company Law and the Partnership Enterprise
Law of the PRC (《中华人民共和国合伙企业法》) and
other laws. Foreign investors shall not invest in any field forbidden by the negative list for access of foreign investment. For any field
restricted by the negative list, foreign investors shall conform to the investment conditions as required in the negative list, and fields
not included in the negative list shall be managed under the principle that domestic investment and foreign investment shall be treated
uniformly.
The Law on Sino-Foreign Equity Joint Ventures
of the PRC (《中华人民共和国中外合资经营企业法》),
the Law on Wholly Foreign-owned Enterprises of the PRC (《中华人民共和国外资企业法》)
and the Law on Sino-Foreign Cooperative Joint Ventures of the PRC (《中华人民共和国中外合作经营企业法》)
were repealed simultaneously when the Foreign Investment Law came into effect on January 1, 2020, and foreign-funded enterprises which
were established in accordance with such laws before the implementation of the Foreign Investment Law may retain their original organization
forms and other aspects for five years upon the implementation hereof.
Regulations on Tax
Corporate Income Tax
According to the Corporate Income Tax Law of the
People's Republic of China (《企业所得税法》), corporate income tax shall be payable
by a resident enterprise for income derived from or accruing in or outside China, and the tax rate shall be 25%.
In accordance with the Notice of the State Council
on Implementation of Transitional Corporate Income Tax Incentives (《关于实施企业所得税过渡优惠政策的通知》)
issued on December 26, 2007, enterprises which had benefited from the tax rate preferential policies provided by the former corporate
income tax law shall be gradually subject to the new statutory tax rate scheme over a five-year period commencing on the first day of
implementing the Corporate Income Tax Law of the People's Republic of China (the "Corporate Income Tax Law"), which
became effective on January 1, 2008. For enterprises which were entitled to regular corporate income tax exemption and reduction incentives
shall, following the implementation of the Corporate Income Tax Law, continue to be entitled to such tax incentives until such exemption
and incentive periods expire pursuant to previous tax laws and relevant administrative regulations. For enterprises which did not previously
enjoy tax reduction incentives due to non-profitability, the tax incentive period specified in the notice shall commence in 2008.
According to the Corporate Income Tax Law of the
People's Republic of China (《企业所得税法》), enterprises lawfully incorporated
pursuant to the laws of a foreign country (region) but whose actual management functions are conducted in China will need to pay corporate
income tax for income derived from or accruing in or outside China.
In accordance with the regulations on corporate
income tax, the 25% corporate income tax rate is applicable to the VIEs, including Daxin Wealth, Daxin Zhuohui, Zhenyi and Qingdao Buytop.
Value-Added Tax (the "VAT") and Business Tax
Pursuant to the Provisional Regulations on Value-Added
Tax of the PRC (《中华人民共和国增值税暂行条例》),
or the VAT Regulations, which were promulgated by the State Council on December 13, 1993, and amended on November 10, 2008, February 6,
2016, and November 19, 2017, respectively, and the Implementation Rules of the Provisional Regulations on Value Added Tax of the PRC (《中华人民共和国增值税暂行条例实施细则》)
promulgated by the Ministry of Finance of the People's Republic of China ("MOF") on December 25, 1993 and amended on
December 15, 2008 and October 28, 2011, respectively, entities and individuals that sell goods or labor services of processing, repair
or replacement, sell services, intangible assets, or immovables, or import goods within the territory of the People's Republic of
China are taxpayers of value-added tax. The VAT rate is 17% for taxpayers selling goods, labor services, or tangible movable property
leasing services or importing goods, except otherwise specified; 11% for taxpayers selling goods, labor services, or tangible movable
property leasing services or importing goods, except otherwise specified; 6% for taxpayers selling services or intangible assets.
In accordance with the Notice of the Ministry
of Finance and the State Administration of Taxation on Full Launch of the Pilot Scheme on Levying Value-added Tax in Place of Business
Tax (《财政部、国家税务总局关于全面推开营业税改征增值税试点的通知》),
which was released by MOF and State Administration of Taxation of People's Republic of China ("SAT") on March 23, 2016
and became effective on May 1, 2016, the pilot scheme on levying value-added tax in place of business tax shall be launched nation-wide.
All business tax taxpayers in the construction industry, real estate industry, financial industry, living service industry, etc., shall
be included in the scope of the pilot scheme and subject to value-added tax instead of business tax.
84
In accordance with the applicable regulations
on VAT, a 6% VAT rate is applicable to the VIEs, Daxin Wealth, Daxin Zhuohui, Zhenyi and Qingdao Buytop.
Stamp Duty
In accordance with the Stamp Duty Law of the People's
Republic of China (《中华人民共和国印花税法》), which was
released by Standing Committee of the National People's Congress on June 10, 2022 and became effective on July 1, 2022, any entities
and individuals who make taxable documents and conduct securities transactions within the territory of the People's Republic of
China are taxpayers of stamp duty and shall pay stamp duty in accordance with the provisions of this law. All entities and individuals
who make taxable documents outside the territory of the People's Republic of China to be used within the territory of the People's
Republic of China shall pay stamp duty in accordance with the provisions of this law. The term "taxable documents" refers
to the contracts, property transfer documents and business account books listed in the Schedule of Stamp Duty Items and Stamp Duty Law
of the People's Republic of China.
Our PRC subsidiary and VIEs in the PRC have completed
tax registration and timely paid taxes in accordance with applicable taxation laws and regulations in the PRC.
Regulations on Foreign Exchange
General Administration of Foreign Exchange
According to the Regulations on the Control of
Foreign Exchange (《中华人民共和国外汇管理条例》),
which were promulgated by the State Council on January 29, 1996, came into effect on April 1, 1996, and were amended on January 14, 1997,
and August 5, 2008, payments for transactions that take place within the PRC must be made in RMB. Unless otherwise approved, PRC companies
may not repatriate foreign currency payments received from abroad or retain the same abroad. RMB is convertible into other currencies
for current account items, such as trade-related receipts and payments and payment of interest and dividends. The conversion of RMB into
other currencies and remittance of the converted foreign currency outside the PRC for of capital account items, such as direct equity
investments, loans and repatriation of investment, requires the prior approval from the SAFE or its local office. According to regulations
on foreign exchange settlement of FIEs, they may retain foreign exchange in accounts with designated foreign exchange banks under the
current account items subject to a cap set by the SAFE or its local office. Foreign exchange proceeds under the current accounts may be
either retained or sold to a financial institution engaged in settlement and sale of foreign exchange pursuant to relevant SAFE rules
and regulations. For foreign exchange proceeds under the capital accounts, approval from the SAFE is generally required for the retention
or sale of such proceeds to a financial institution engaged in settlement and sale of foreign exchange.
SAFE Circular No. 21
On May 10, 2013, the SAFE promulgated the Circular
of the SAFE on Printing and Distributing the Administrative Provisions on Foreign Exchange in Domestic Direct Investment by Foreign Investors
and Relevant Supporting Documents (《外国投资者境内直接投资外汇管理规定》)
("SAFE Circular No. 21"), which was amended on December 31, 2019. It provided for and simplified the operational steps and
regulations on foreign exchange matters related to direct investment by foreign investors, including foreign exchange registration, account
opening and use, receipt and payment of funds, and settlement and sales of foreign exchange.
SAFE Circular No. 59
Pursuant to the Circular of the SAFE on Further
Improving and Adjusting Foreign Exchange Administration Policies for Direct Investment (《国家外汇管理局关于进一步改进和调整直接投资外汇管理政策的通知》),
promulgated by SAFE on November 19, 2012, which became effective on December 17, 2012, and was further amended on May 4, 2015, approval
is not required for opening a foreign exchange account and depositing foreign exchange into the accounts relating to the direct investments.
SAFE Circular No. 59 also simplified foreign exchange-related registration required for the foreign investors to acquire the equity interests
of Chinese companies and further improve the administration on foreign exchange settlement for FIEs.
SAFE Circular No. 13
Pursuant to the Circular on Further Simplifying
and Improving the Foreign Currency Management Policy on Direct Investment (《国家外汇管理局关于进一步简化和改进直接投资外汇管理政策的通知》),
effective from June 1, 2015, which cancels the administrative approvals of foreign exchange registration of direct domestic investment
and direct overseas investment and simplifies the procedure of foreign exchange-related registration, the investors shall register with
banks for direct domestic investment and direct overseas investment.
SAFE Circular No. 16
In accordance with the Notice of the State Administration
of Foreign Exchange on Policies for Reforming and Regulating the Control over Foreign Exchange Settlement under the Capital Account (《国家外汇管理局关于改革和规范资本项目结汇管理政策的通知》),
which was released by SAFE on June 9, 2016, except financial institutions, domestic enterprises (including Chinese-funded enterprises
and foreign-invested enterprises) may complete foreign exchange settlement for their foreign debts at their discretion. Based on business
operation conditions and in light of relevant regulations and policies, domestic institutions may settle their foreign exchange receipts
with banks under the capital account entitled to discretionary settlement. Domestic institutions may, at their discretion, settle up to
100% of their foreign exchange receipts under the capital account for the time being. SAFE may adjust the aforesaid proportion in due
time in light of the balance of payment.
85
SAFE Circular No. 19
The Notice of the State Administration of Foreign
Exchange on Reforming the Mode of Management of Settlement of Foreign Exchange Capital of Foreign-Funded Enterprises(《国家外汇管理局关于改革外商投资企业外汇资本金结汇管理方式的通知》),
or the SAFE Circular No.19, which was promulgated by the SAFE on March 30, 2015, and became effective on June 1, 2015, provides that a
foreign-invested enterprise may, according to its actual business needs, settle with a bank the portion of the foreign exchange capital
in its capital account for which the relevant foreign exchange administration has confirmed monetary capital contribution rights and interests
(or for which the bank has registered the injection of the monetary capital contribution into the account). Pursuant to the SAFE Circular
No.19, for the time being, FIEs are allowed to settle 100% of their foreign exchange capitals on a discretionary basis; a foreign-invested
enterprise shall truthfully use its capital for its own operational purposes within the scope of business; where an ordinary foreign-invested
enterprise makes domestic equity investment with the amount of foreign exchanges settled, the invested enterprise shall first go through
domestic re-investment registration and open a corresponding account for foreign exchange settlement pending payment with the foreign
exchange administration or the bank at the place where it is registered.
Based on the foregoing, when setting up a new
foreign-invested enterprise, the foreign invested enterprise shall register with the bank located at its registered place after obtaining
the business license, and if there is any change in capital or other changes relating to the basic information of the foreign-invested
enterprise, including without limitation any increase in its registered capital or total investment, the foreign invested enterprise shall
register such changes with the bank located at its registered place after obtaining the approval from or completing the filing with competent
authorities. Pursuant to the relevant foreign exchange laws and regulations, the above-mentioned foreign exchange registration with the
banks will typically take less than four weeks upon the acceptance of the registration application. If we intend to provide funding to
our WFOE through capital injection at or after their establishment, we shall register the establishment of and any follow-on capital increase
in our wholly foreign owned subsidiaries, or the VIEs to operate in China, with the State Administration for Industry and Commerce or
its local counterparts, file such via the Foreign Investment Comprehensive Management Information System (the "FICMIS") and
register such with the local banks for the foreign exchange related matters.
Offshore Investment
Circular No.37
Under the Circular of the State Administration
of Foreign Exchange on Issues Concerning the Foreign Exchange Administration over the Overseas Investment and Financing and Round-trip
Investment by Domestic Residents via Special Purpose Vehicles (《关于境内居民通过特殊目的公司境外投融资及返程投资外汇管理有关问题的通知》),
or the SAFE Circular 37, issued by the SAFE and effective on July 4, 2014, PRC residents are required to register with the local SAFE
branch prior to the establishment or control of an offshore special purpose vehicle, or SPV, which is defined as offshore enterprises
directly established or indirectly controlled by PRC residents for offshore equity financing of the enterprise assets or interests they
hold in China. An amendment to registration or subsequent filing with the local SAFE branch by such PRC resident is also required if there
is any change in basic information of the offshore company or any material change with respect to the capital of the offshore company.
At the same time, the SAFE has issued the Operation Guidance for the Issues Concerning Foreign Exchange Administration over Round-trip
Investment regarding the procedures for SAFE registration under the SAFE Circular 37, which became effective on July 4, 2014, as an attachment
of Circular 37.
Under the relevant rules, any failure by any of
our shareholders who is a PRC resident, or is controlled by a PRC resident, to comply with relevant requirements under these regulations
could subject our SPV to restrictions imposed on foreign exchange activities, including restrictions on its ability to receive registered
capital as well as additional capital from PRC resident shareholders, and contribute registered capital as well as additional capital
to WFOE. If WFOE fails to obtain necessary registered capital within the approved business time limit, the industries and commercial administrative
authorities might revoke its business license. Due to the failure by shareholders to complete the registration, WFOE's ability to
pay dividends or make distributions to our SPV is also restricted, and repatriation of profits and dividends derived from SPV by PRC residents
to China are illegal. The offshore financing funds are also not allowed to be used in China. In addition, the failure of the PRC resident
shareholders to complete the registration may subject the shareholders to fines less than RMB50,000, and the enterprises to fines less
than RMB300,000.
These aforementioned regulations apply to our
direct and indirect shareholders who are PRC residents and apply to any offshore acquisitions and share transfer that we may make in the
future if our Ordinary Shares are issued to PRC residents. The Chinese resident shareholders of the Company, including Qiaoling Lu, the
100% owner of Unit Giant Limited, Yiheng Guo, the 100% owner of Mac Joy Limited, Hua Wang, the 100% owner of Cyber Sea Limited, and Jianxiu
Li, the 100% owner of Better Always Limited, have completed the registration procedures in accordance with the regulations on foreign
exchange.
86
Regulations on Intellectual Property
Regulations on Trademark
The Trademark Law of the People's Republic
of China (revised in 2019)(《中华人民共和国商标法(2019修订)》)
promulgated by the Standing Committee of the National People's Congress on August 23, 1982 and respectively revised on February
22, 1993, October 27, 2001, August 30, 2013 and April 23, 2019, and the Regulation on the Implementation of the Trademark Law of the People's
Republic of China (revised in 2014) (《中华人民共和国商标法实施条例(2014修订)》)
promulgated by the State Council on August 3, 2002 and revised on April 29, 2014, stipulate the application, examination and approval,
renewal, alteration, transfer, use and invalidation of trademark registration, and protect the trademark rights entitled to trademark
registrants.
In accordance with the trademark related regulations,
the trademark, Buytop, has been legally registered by Qingdao Buytop in China and Qingdao Buytop has obtained the certificate for this
trademark.
Regulations on Domain Names
The Administrative Measures on Internet Domain
Names(《互联网域名管理办法》) promulgated by the Ministry of Industry
and Information Technology on August 24, 2017, stipulate the regulations on Internet domain name services and undertaking related activities
such as operation and maintenance.
In accordance with the domain names related regulations,
the domain name, www.buytoppay.com, has been legally registered Qingdao Buytop,. Qingdao Buytop has obtained the certificate for its domain
name.
Regulations Relating to Overseas Listings and
Offerings
On December 24, 2021, the China Securities Regulatory
Commission, or the CSRC, issued Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic
Companies (Draft for Comments) (the "Administration Provisions"), and the Provisions of the State Council on the Administration
of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments) (the "Measures"), of which the public
comment period ended on January 23, 2022.
The Administration Provisions and Measures for
overseas listings lay out specific requirements for filing documents and include unified regulation management, strengthening regulatory
coordination, and cross-border regulatory cooperation. Domestic companies seeking to list abroad must carry out relevant security screening
procedures if their businesses involve such supervision. Companies endangering national security are among those off-limits for overseas
listings.
On February 17, 2023, the China Securities Regulatory
Commission (the "CSRC") released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic
Companies (the "Trial Measures"), (《境内企业境外发行证券和上市管理试行办法》),
and five supporting guidelines (collectively, the "Overseas Listings Rules"), which has become effective on March 31, 2023.
On the same date of the issuance of the Overseas Listings Rules, the CSRC circulated No.1 to No.5 Supporting Guidance Rules, the Notes
on the Overseas Listings Rules, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises
and the relevant CSRC Answers to Reporter Questions on the official website of CSRC, or collectively, the Guidance Rules and Notice. The
Overseas Listings Rules, together with the Guidance Rules and Notice, reiterate the basic supervision principles as reflected in the Administration
Provisions and Measures by providing substantially the same requirements for filings of overseas offering and listing by domestic companies.
Under the Overseas Listings Rules and the Guidance Rules and Notice, domestic companies conducting overseas securities offering and listing
activities, either in direct or indirect form, shall complete filing procedures with the CSRC pursuant to the requirements of the Trial
Measures within three working days following its submission of initial public offerings or listing application. The companies that have
already been listed on overseas stock exchanges or have obtained the approval from overseas supervision administrations or stock exchanges
for its offering and listing before March 31, 2023 and will complete their overseas offering and listing prior to September 30, 2023 are
not required to make immediate filings for its listing yet need to make filings for subsequent offerings in accordance with the Overseas
Listings Rules. The companies that have already submitted an application for an initial public offering to overseas supervision administrations
prior to the effective date of the Overseas Listings Rules but have not yet obtained the approval from overseas supervision administrations
or stock exchanges for the offering and listing may arrange for the filing within a reasonable time period and should complete the filing
procedure before such companies' overseas issuance and listing.
As of the date of this annual report, we have
not received any formal inquiry, notice, warning, sanction, or any regulatory objection from the CSRC with respect to our listing or subsequent
offerings. As the Overseas Listings Rules were newly published and there exists uncertainty with respect to the filing requirements and
its implementation, if we are required to submit to the CRSC and complete the filing procedure of our subsequent overseas public offerings,
we cannot be sure that we will be able to complete such filings in a timely manner. Any failure or perceived failure by us to comply with
such filing requirements under the Overseas Listings Rules may result in forced corrections, warnings and fines against us and could materially
hinder our ability to offer or continue to offer our securities.
87
C.
Organizational Structure
Sentage Holdings was incorporated as an exempted
company with limited liability under the laws of the Cayman Islands on September 16, 2019.
Sentage Holdings owns 100% of the equity interests
of Sentage Hongkong Limited ("Sentage HK"), a limited liability company formed under the laws of Hong Kong on September 25,
2019.
On December 17, 2019, Shanghai Santeng Technology
Co., Ltd. ("Sentage WFOE") was incorporated pursuant to PRC laws as a wholly foreign owned enterprise of Sentage HK.
Ms. Qiaoling Lu (the chairperson of the board
of directors,the chief executive officer, and a major shareholder of the Company), Yiheng Guo (a director and a shareholder of the Company),
Hua Wang (a beneficial shareholder of the Company), and Jianxiu Li (a beneficial shareholder of the Company), are the controlling shareholders
of the following Sentage Operating Companies: (1) Daxin Wealth Investment Managem (ent (Shanghai) Co., Ltd. ("Daxin Wealth"),
formed in Shanghai City, China on August 13, 2014; (2) Daxin Zhuohui Financial Information Services (Shanghai) Co., Ltd. ("Daxin
Zhuohui"), formed in Shanghai City, China on January 9, 2015; and (3) Qingdao Buytop Payment Services Co., Ltd. ("Qingdao
Buytop"), formed in Qingdao City, Shandong Province, China on August 4, 2009. (4) Zhenyi Information Technology (Shanghai) Co. Ltd,
formed in Shanghai City, China on August 29, 2017. Daxin Wealth, Daxin Zhuohui, Qingdao Buytop, and Zhenyi were all formed as limited
companies pursuant to PRC laws. Daxin Wealth and Daxin Zhuohui are primarily engaged in providing consumer loan repayment and collection
management services. Daxin Zhuohui also provides loan recommendation services. Qingdao Buytop is primarily engaged in providing customers
with prepaid payment network services. As of the date of this annual report, Zhenyi is not engaged in active business operation but is
expected to provide us with technical and system development and support in the future.
The following diagram illustrates our corporate
structure, including our subsidiaries and the VIEs, as of the date of this annual report.
88
The VIE
Agreements
Neither we nor our subsidiaries own any
equity interest in any of the Sentage Operating Companies. Instead, we control and receive the economic benefits of each of the Sentage
Operating Companies' business operation through a series of VIE Agreements. Sentage WFOE, three of the Sentage Operating Companies
(Daxin Wealth, Daxin Zhuohui, and Qingdao Buytop), and their respective shareholders entered into the VIE Agreements on March 9, 2020.
Sentage WFOE, Zhenyi, and Zhenyi's shareholders entered into the VIE Agreements on April 1, 2021.
The VIE structure is not used to provide contractual
exposure to foreign investment in China-based companies where Chinese law prohibits direct foreign investment in the operating companies,
rather we use the VIE structure because the Chinese laws and regulations affecting Sentage Operating Companies' businesses are vague
and unclear. Sentage Operating Companies engage in (i) consumer loan repayment and collection management service, (ii) loan recommendation
service, and (iii) prepaid payment network service. According to "Administrative Measures of People's Bank of China on Payment
Services Provided by Non-financial Institutions" ("Order 2") and "People's Bank of China Announcement [2018]
No. 7 — Announcement on Matters Relating to Foreign-funded Payment Organizations" ("Announcement No. 7"), those
who engage in prepaid network services business within China need to go through a special legal approval procedure to obtain third-party
payment licenses. Although the People's Bank of China has loosened the requirements for foreign-invested enterprises to hold third-party
payment licenses, the review procedure is still very strict in practice. At the same time, Chinese authorities have not yet made it clear
whether to permit or prohibit foreign-invested enterprises to engage in prepaid network services, loan collection management and loan
recommendation services, and there is a risk that Chinese authorities may prohibit direct foreign investment of such businesses.
Under U.S. GAAP, we are deemed to have a controlling
financial interest in, and be the primary beneficiary of, the VIEs for accounting purposes, because such contractual arrangements are
designed so that the operations of the VIE are solely for the benefit of WFOE and, ultimately, the Company. As such, we have consolidated
the VIE for accounting purposes. The VIE Agreements have not been tested in a court of law and may not be effective in providing control
over the VIE, and we are subject to risks due to the uncertainty of the interpretation and application of the laws and regulations of
the PRC, regarding the VIE, and the VIE structure, including, but not limited to, regulatory review of overseas listing of PRC companies
through a special purpose vehicle, and the validity and enforcement of the contractual arrangements with the VIE. We are also subject
to the risk that the PRC government could disallow the VIE structure, which would likely result in a material change in our operations
and, as a result, the value of our Ordinary Shares may depreciate significantly or become worthless. See "ITEM 3.C Risk Factors
– Risks Related to Our Corporate Structure."
Each of the VIE Agreements is described in detail
below.
89
Exclusive Business Cooperation Agreement
Pursuant to the Exclusive Business Cooperation
Agreement between the Sentage Operating Companies and Sentage WFOE, Sentage WFOE provides the Sentage Operating Companies with technical
support, intellectual services and other management services relating to its day-to-day business operations and management, on an exclusive
basis, utilizing its advantages in technology, human resources, and information. For services rendered to the Sentage Operating Companies
by Sentage WFOE under the Exclusive Business Cooperation Agreement, Sentage WFOE is entitled to collect a service fee equal to the remaining
amount of the Sentage Operating Companies' profit before tax after deducting relevant costs and reasonable expenses.
The term of the Exclusive Business Cooperation
Agreement remains effective unless the agreement is explicitly terminated by Sentage WFOE through written form or other means specified
therein. The Sentage Operating Companies do not have the right to terminate that agreement unilaterally.
Sentage WFOE has absolutely authority relating
to the management of the Sentage Operating Companies, including but not limited to decisions with regard to expense, salary raises and
bonuses, hiring, firing, and other operational functions. The Exclusive Business Cooperation Agreement does not prohibit related party
transactions.
Equity Pledge Agreement
Under the Equity Pledge Agreement among Sentage
WFOE and all the shareholders of Sentage Operating Companies (the "Sentage Operating Companies Shareholders"), the Sentage
Operating Companies Shareholders pledged all of their equity interests in the Sentage Operating Companies to Sentage WFOE to guarantee
the performance of the Sentage Operating Companies' obligations under the Exclusive Business Cooperation Agreement, Exclusive Purchase
Option Agreement, and Loan Contracts (collectively, the "Transaction Agreements"). Under the terms of the Equity Pledge Agreement,
in the event that the Sentage Operating Companies or the Sentage Operating Companies Shareholders breach their respective contractual
obligations under the Transaction Agreements, Sentage WFOE, as pledgee, will be entitled to certain rights, including, but not limited
to, the right to collect dividends generated by the pledged equity interests. The Sentage Operating Companies Shareholders also agreed
that upon occurrence of any event of default, as set forth in the Equity Pledge Agreement, Sentage WFOE is entitled to dispose of the
pledged equity interests in accordance with applicable PRC laws. The Sentage Operating Companies Shareholders further agreed not to dispose
of the pledged equity interests or take any action that would prejudice Sentage WFOE's interest.
The Equity Pledge Agreement is effective until
the latest date of the following: (1) the secured debt in the scope of pledge is cleared off; (2) pledgees exercise their pledge rights
pursuant to provisions and conditions of the Equity Pledge Agreement; and (3) pledgors transfer all the pledged equity interests to Pledgees
according to the Exclusive Purchase Option Agreement, or other entity or individual designated by it.
The purpose of the Equity Pledge Agreement are
to (1) guarantee the performance of the Sentage Operating Companies' obligations under the Transaction Agreements, (2) make sure
the Sentage Operating Companies Shareholders do not transfer or assign the pledged equity interests, or create or allow any encumbrance
that would prejudice Sentage WFOE's interests without Sentage WFOE's prior written consent, and (3) provide Sentage WFOE control
over the Sentage Operating Companies. In the event the Sentage Operating Companies breach their contractual obligations under the Transaction
Agreements, Sentage WFOE will be entitled to foreclose on the Sentage Operating Companies Shareholders' equity interests in the
Sentage Operating Companies and may (1) exercise its option to purchase or designate third parties to purchase part or all of their equity
interests in the Sentage Operating Companies and in this situation, Sentage WFOE may terminate the Equity Pledge Agreement and the other
VIE Agreements after acquisition of all equity interests in the Sentage Operating Companies or form a new VIE structure with the third
parties designated by Sentage WFOE, or (2) dispose of the pledged equity interests and be paid in priority out of proceeds from the disposal
in which the case the existing VIE structure will be terminated.
90
Exclusive Purchase Option Agreement
Under the Exclusive Purchase Option Agreement,
the Sentage Operating Companies Shareholders irrevocably granted Sentage WFOE (or its designee) an exclusive option to purchase, to the
extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in the Sentage Operating
Companies or the assets of the Sentage Operating Companies. The option price is the minimum amount to the extent permitted under PRC law.
Under the Exclusive Purchase Agreement, Sentage
WFOE may at any time under any circumstances, purchase or have its designee purchase, at its discretion, to the extent permitted under
PRC law, all or part of the Sentage Operating Companies Shareholders' equity interests in the Sentage Operating Companies or the
assets of the Sentage Operating Companies. The Exclusive Purchase Agreement, together with the Equity Pledge Agreement, the Exclusive
Business Cooperation Agreement, Powers of Attorney, and Loan Contracts, enable Sentage WFOE to exercise effective control over the Sentage
Operating Companies.
The Exclusive Purchase Agreement remains effective
until all the equity or assets of the Sentage Operating Companies is legally transferred under the name of Sentage WFOE and/or other entity
or individual designated by it.
Shareholders' Powers of Attorney
Under each of the Powers of Attorney, the Sentage
Operating Companies Shareholders authorized Sentage WFOE to act on their behalf as their exclusive agent and attorney with respect to
all rights as shareholders, including but not limited to: (a) attending shareholders' meetings; (b) exercising all the shareholders'
rights, including voting, that shareholders are entitled to under the laws of China and the Articles of Association, including but not
limited to the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on behalf of
shareholders the legal representative, the executive director, supervisor, the chief executive officer, and other senior management members
of the Sentage Operating Companies.
The term of each of the Powers of Attorney is
the same as the term of the Exclusive Purchase Option Agreement. The Powers of Attorney is irrevocable and continuously valid from the
date of execution of the Powers of Attorney, so long as the Sentage Operating Companies Shareholders are shareholders of the Sentage Operating
Companies.
Loan Contracts
Each shareholder of the VIEs has entered into
a loan contract with Sentage WFOE, with each contract taking effect from March 9, 2020. Under these loan contracts, Sentage WFOE provided
each shareholder of the VIEs with a loan, free of interest, provided that if any of the shareholders of the VIEs fails to pay any sum
pursuant to the schedule specified thereunder, a default interest shall be calculated at a daily rate of 0.1% until the shareholder fully
repays such sum (including the default interest). The proceeds from the loans were used for purposes consented by Sentage WFOE. The loans
can be repaid by transferring each shareholder's respective equity interest in the VIEs pursuant to the Exclusive Purchase Option
Agreements. Each of the loan contracts shall remain in effect until the day when Sentage WFOE exercises its exclusive option in accordance
with the applicable Exclusive Purchase Option Agreement, unless otherwise terminated by Sentage WFOE when any shareholder of VIEs materially
breaches the terms of such loan contracts.
Spousal Consent
The spouse of each of the Sentage Operating Companies
Shareholders agreed, via a spousal consent, to the execution of the "Transaction Documents" including: (a) Exclusive Purchase
Option Agreement entered into with Sentage WFOE and the Sentage Operating Companies; (b) Equity Pledge Agreement entered into with Sentage
WFOE; (c) Powers of Attorney executed by the Sentage Operating Companies Shareholder, and (d) Loan Contracts entered into with Sentage
WFOE, and the disposal of the equity interests of Sentage Operating Companies held by the Sentage Operating Companies Shareholder and
registered in his or her name.
91
The spouse of each of the Sentage Operating Companies
Shareholders further undertakes not to make any assertions in connection with the equity interests of Sentage Operating Companies, which
are held by the Sentage Operating Companies Shareholder. The spouse of the Sentage Operating Companies Shareholder confirms that the Sentage
Operating Companies Shareholder can perform, amend, or terminate the Transaction Documents without his or her authorization or consent.
He or she undertakes to execute all necessary documents and take all necessary actions to ensure appropriate performance of the agreements.
The spouse of each of the Sentage Operating Companies
Shareholders also undertakes that if he or she obtains any equity interest of Sentage Operating Companies which are held by the Sentage
Operating Companies Shareholder for any reasons, he or she shall be bound by the Transaction Documents and the Exclusive Business Cooperation
Agreement entered into among Sentage WFOE and the Sentage Operating Companies (as amended time to time) and comply with the obligations
thereunder as a shareholder of the Sentage Operating Companies. For this purpose, upon Sentage WFOE's request, he or she shall sign
a series of written documents in substantially the same format and content as the Transaction Documents and Exclusive Business Cooperation
Agreement (as amended from time to time).
Corporate Information
Our principal executive offices are located at
501, Platinum Tower, 233 Taicang Rd, HuangPu, Shanghai City, the PRC, and our phone number is +86-21 5386 0209.
Our registered office in the Cayman Islands is
located at Suite #4-210, Governors Square, 23 Lime Tree Bay Avenue, PO Box 32311, Grand Cayman KY1-1209, Cayman Islands, and the phone
number of our registered office is +1-345-814-2857.
Our corporate website is www.sentageholdings.com. The
information contained in, or accessible from, our website or any other website does not constitute a part of this annual report.
Our service process agent is Cogency Global Inc.
The SEC maintains a website at www.sec.gov that
contains reports, proxy, and information statements, and other information regarding issuers that file electronically with the SEC using
its EDGAR system.
ITEM 4A. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 5. OPERATING AND FINANCIAL REVIEW
AND PROSPECTS
Overview
We, through the Sentage Operating Companies, are
a financial service provider that offers a range of financial services across consumer loan repayment and collection management services,
loan recommendation services, and prepaid payment network services in the PRC. Leveraging our deep understanding of the client base, strategic
partner relationships, and proprietary valuation models and technologies, we are committed to working, through the Sentage Operating Companies,
with the clients to understand their financial needs and challenges and offering customized services to help them meet their respective
needs. We do not have equity interests in the Sentage Operating Companies, but their financial results have been consolidated by Sentage
Holdings for accounting purposes in accordance with U.S. GAAP due to us having effective control over, and being the primary beneficiary
of, these companies via the VIE Agreements. The VIE Agreements have not been tested in a court of law in China as of the date of this
annual report.
We currently report our operating revenue, through
the Sentage Operating Companies, from three main revenue streams, namely, (i) consumer loan repayment and collection management service
fees, (ii) loan recommendation service fees, and (iii) prepaid payment network service fees.
92
A.
Operating Results
Major Factors Affecting Results of Operations
We believe the following key factors may affect
the Sentage Operating Companies' financial condition and results of operations:
Effectiveness of Risk Management
The success of the Sentage Operating Companies'
loan recommendation business relies heavily on their ability to effectively evaluate borrowers' credit profiles, the likelihood
of default, and the value of borrowers' collateralized properties. The Sentage Operating Companies have devised and implemented
a systematic credit assessment model and an asset-driven, disciplined risk management approach to minimize a borrower's default
risk and mitigate the impact of default. Specifically, the Sentage Operating Companies' assessment model and risk management capabilities
not only enable them to select high-quality borrowers whose financial conditions and personal background meet the selection criteria,
but also protect the funding partners against lending more than they might be able to recover in the case of default. There can be no
assurance that the risk management measures will allow the Sentage Operating Companies to identify or appropriately assess whether interest
and principal payments due on a loan will be repaid when due, or at all, or whether the value of the mortgaged property will be sufficient
to otherwise provide for recovery of such amounts. If the risk management approach is ineffective, or if the Sentage Operating Companies
otherwise fail or are perceived to fail to manage the impact of default, the Sentage Operating Companies' reputation and market
share could be materially and adversely affected, which would severely impact their business and results of operations.
The Sentage Operating Companies' Ability to Provide Consumer
Loan Repayment and Collection Management Services Efficiently
The success of the Sentage Operating Companies'
consumer loan repayment and collection management business depends on their ability to manage the loan repayment and collection process
efficiently.
The existing consumer loan repayment and collection
management services were all completed by the end of 2021. We plan to provide loan repayment and collection management services, through
the Sentage Operating Companies, to other online consumer finance companies and major commercial banks in China.
As of the date of this annual report, although
the Sentage Operating Companies are in active conversation with a number of prospective clients, they have not secured a new source of
revenue to replace the loss of our current engagements. If the Sentage Operating Companies are unable to maintain, develop, and expand
their business or adapt to changing market needs as well as the current or future competitors are able to, or if the Sentage Operating
Companies are unable to acquire a sufficient number of customers who need their services, they may not be able to generate the same amount
of revenue and/or profits to sustain the operation of the consumer loan repayment and collection management business. As a result, the
Sentage Operating Companies' business and results of operations may be adversely affected.
The following are some of the main factors that
may affect the results of our operations.
Ability to Acquire Prospective Borrowers Effectively and Increase
Overall Loan Volume
The Sentage Operating Companies started the loan
recommendation services in June 2019. The revenue growth in this business largely depends on our ability to acquire prospective borrowers
effectively and increase the overall loan volume funded by the funding partners. We intend to continue to dedicate significant resources
to the Sentage Operating Companies' borrower acquisition efforts. If there are insufficient qualified loan requests, the funding
partners may not want to collaborate with the Sentage Operating Companies further, which may result in borrowers being unable to obtain
capital through the loan recommendation services and turning to other sources for their borrowing needs. In addition to the size of the
prospective borrower base, the overall loan volume may be affected by several factors, including the Sentage Operating Companies'
brand recognition and reputation, the interest rates offered to borrowers relative to the market rates, the efficiency of the credit assessment
process, the availability of our funding partners, the macroeconomic environment, and other factors. In connection with the introduction
of new services or in response to general economic conditions, the Sentage Operating Companies may also impose more stringent borrower
qualifications to ensure the quality of the recommended borrowers, which may negatively affect loan volume. If the Sentage Operating Companies
are unable to attract qualified borrowers or if borrowers do not continue to use our loan recommendation services at the current rates
and/or the Sentage Operating Companies are unable to increase the overall loan volume as we expect, the Sentage Operating Companies'
business and results of operations may be adversely affected.
93
Ability to Expand the Prepaid Payment Network Services
We started to generate revenue from the Sentage
Operating Companies' prepaid payment network services in August 2019. Our revenue growth in this business largely depends on the
Sentage Operating Companies' ability to develop and expand the client network. We believe that customer base is the core building
block of the prepaid payment network service business, and the Sentage Operating Companies' ability to provide customers with satisfactory
experience is critical to the success and continuous growth in the customer base. The Sentage Operating Companies' ability to provide
customers with satisfactory experience is subject to a number of factors, including the Sentage Operating Companies' ability to
provide effective services, their ability to continuously innovate and improve their services to meet customer needs, and their access
to and cooperation with the business partners. If the Sentage Operating Companies experience service disruptions, failures, or other issues,
or, if they fail to deliver satisfactory and distinct customer experience, the Sentage Operating Companies may lose the customers and
business partners, which could further lead to a decrease in the volume of transactions processed via the prepaid payment network services.
As a result, the Sentage Operating Companies' business, results of operations, and financial condition may be adversely affected.
Ability to Improve Operating Efficiency
Our business growth is dependent on the Sentage
Operating Companies' ability to improve their operating efficiency, which is determined by the Sentage Operating Companies'
abilities to monitor and adjust costs and expenses. Specifically, we consider the Sentage Operating Companies' ability to monitor
and adjust staffing costs (including payroll and employee benefit expense), administrative expenses, and third-party cost essential to
the success of our business.
As the client base expands and the Sentage Operating
Companies enter into more service agreements with clients, which typically results in expanded work volume, the staffing costs are likely
to rise. In contrast, other expenses, particularly those relating to administrative functions, are relatively fixed. For the consumer
loan repayment and collection management services and loan recommendation services, the Sentage Operating Companies outsource certain
tasks to third-party loan collection agencies or law firms and they collaborate with funding partners. As a result, the cost of third-party
business partnership is likely to rise as the Sentage Operating Companies grow their business and expand the partnership network. If the
staffing costs, administrative expenses, and third-party costs exceed our estimated budget and we are unable to increase our revenue as
expected, our operational efficiency might decrease, having an adverse impact on our business, results of operation, and financial condition.
Ability to Compete Effectively
The industries the Sentage Operating Companies
are in are highly competitive and evolving in China. With respect to consumer loan repayment and collection management services and loan
recommendation services, they compete with market players such as traditional financial institutions, small loan companies, e-commerce
driven installment platforms, and other consumer finance platforms. With respect to prepaid payment network services, the Sentage Operating
Companies primarily compete with other third-party payment service providers in China. The competitors operate with different business
models, have different cost structures or participate selectively in different market segments. They may ultimately prove to be more successful
or more adaptable to new regulatory, technological and other developments. Some of the current and potential competitors have significantly
more financial, technical, marketing and other resources than the Sentage Operating Companies do, and may be able to devote greater resources
to the development, promotion, sale and support of their platforms. The competitors may also have longer operating histories, more extensive
pool of borrowers, larger amounts of data, greater brand recognition and loyalty, and broader partner relationships than the Sentage Operating
Companies do. The customers and clients make competitive determinations based upon qualifications, experience, performance, reputation,
technology, customer relationships and ability to provide the relevant services in a timely, safe and cost-efficient manner. If the Sentage
Operating Companies do not compete effectively, our operating results could be harmed.
General Condition of the Global or Chinese
Economy
The rapid growth of the Chinese economy has slowed
down since 2012 and this slowdown may continue in the future. There is considerable uncertainty over trade conflicts between the United
States and China and the long-term effects of the expansionary monetary and fiscal policies adopted by the central banks and financial
authorities of some of the world's leading economies, including the United States and China. The withdrawal of these expansionary
monetary and fiscal policies could lead to a contraction. There continue to be concerns over unrest and terrorist threats in the Middle
East, Europe, and Africa, which have resulted in volatility in oil and other markets. There are also concerns about the relationships
between China and other Asian countries, which may result in or intensify potential conflicts in relation to territorial disputes. The
eruption of armed conflict could adversely affect global or Chinese discretionary spending, either of which could have a material and
adverse effect on our business, results of operation in financial condition. Economic conditions in China are sensitive to global economic
conditions, as well as changes in domestic economic and political policies and the expected or perceived overall economic growth rate
in China. Any severe or prolonged slowdown in the global or Chinese economy would likely materially and adversely affect the Sentage Operating
Companies' business, results of operations and financial condition. In addition, continued turbulence in the international markets
may adversely affect our ability to access capital markets to meet liquidity needs.
94
Impact of the COVID-19 Pandemic
In December 2019, a novel strain of coronavirus
was reported in Wuhan, China. On March 11, 2020, the World Health Organization categorized it as a pandemic. The COVID-19 outbreak has
caused lockdowns, travel restrictions, and closures of businesses across the globe. I
n early 2022,
the Omicron variant of COVID-19 made its presence felt in China, especially in Jilin Province, Shenzhen and Shanghai where strict lockdowns
were imposed.
Sentage Operating Company's business facility in Shanghai, China, was temporarily closed in April 2022 and
resumed operation in the first week of June 2022. For the consumer loan repayment and collection management business, due to the uncertainties
caused by the COVID-19, our prospective business partners were not able to start new cooperation with us and we were not able to generate
any revenue for fiscal year 2022. For the loan recommendation services, which requires face-to-face interaction with potential customers,
the temporary lock down from April 2022 to June 2022 severely impacted our ability to generate new business. Even after June 2022, due
to the uncertainties caused by COVID-19, the demand from customers decreased sharply and the we were not able to generate any revenue
for fiscal year 2022. For the prepaid payment network services, the revenue in 2022 declined sharply because decreased demand from customers
due to the uncertainties caused by COVID-19. Although China relaxed the COVID-19 restrictions at the end of 2022, because the COVID-19
has deeply affected businesses and economy in China from 2020 to 2022, the extent of any future impact of COVID-19 on our operations remains
highly uncertain and unpredictable.
Key Components of Results of Operations
Revenues
2020
2021
2022
Amount
%
Amount
%
Amount
%
Consumer loan repayment and collection management fees
1,074,734
29.9
156,062
6.9
-
-
Loan recommendation service fees
2,087,717
58.1
1,177,822
52.1
-
-
Prepaid payment network service fees
432,958
12.0
928,565
41.0
161,372
100.0
Total operating revenue
3,595,409
100.0
2,262,449
100.0
161,372
100.0
(1). Loan Repayment
and Collection Management Services
Revenue from consumer loan repayment and collection
management business accounted for 0%, 6.9% and 29.9% of the total revenue for the fiscal years ended December 31, 2022, 2021 and 2020,
respectively. There was no revenue generated in the loan repayment and collection management services in fiscal year 2022, and the Sentage
Operating Companies continue to explore new opportunities to engage new customers in 2023. These loans were consumer loan products ranging
from 30,000 RMB (approximately $4,342) to 80,000 RMB (approximately US$11,579), with terms ranging from one year to four years. All the
clients are individual customers who entered into service agreements with the Sentage Operating Companies. All these loans were facilitated
through the offline loan recommendation services before November 2017. Since November 2017, the Sentage Operating Companies have not provided
any intermediary services for any new customers due to changes in related governing regulations in China,. Pursuant to the service agreements
entered with individual customers, customers authorized the Sentage Operating Companies to monitor and manage the repayment and collection
process of outstanding loans for a fixed service fee, which was paid upfront by customers. The Sentage Operating Companies were required
to monitor loans within loan term to ensure timely repayment of loans when they become due. Pursuant to the agreements with customers,
loan repayment and collection management services were parts of bundled services offered to customers for a fixed fee and were not capable
of being distinct because the Sentage Operating Companies were required to concurrently monitor and manage the repayment and collection
process of outstanding loans to be entitled to receive a fixed service fee. As a result, loan management services and collection management
services were not separately identifiable in the context of the contract and accordingly were treated as a bundled single performance
obligation. There was no variable consideration in the contract. Once a specific loan was repaid on time, the service obligation related
to such loan was satisfied. When a loan became delinquent, the Sentage Operating Companies were then required to assist in collection
efforts for an extended service period of additional 12 months starting with the day when such loan becomes delinquent. No additional
fee could be charged for collection management services provided to delinquent loans beyond the initial fixed fee agreed. If all or a
part of the loan was still not repaid after all collection management efforts were exhausted within such required service period, our
service obligation related to such loan was satisfied and the Sentage Operating Companies were not responsible for any loss from uncollectible
loan.
95
At the beginning of the
2020 fiscal year, the Sentage Operating Companies had a total of 5,229 outstanding service agreements from customers. During the fiscal
year ended December 31, 2020, the Sentage Operating Companies completed another 4,438 outstanding service agreements based on the contract
terms, which brought the total number of outstanding service agreements as of December 31, 2020 to 791. During the fiscal year 2021, we
completed another 791 outstanding service agreements based on the contract terms. The service agreements were fully completed in the year
ended December 31, 2021. During fiscal year 2022, due the uncertainties caused by the COVID-19, our prospective business partners was
not able to start new cooperation with us, resulting in the loss of revenue, which had an adverse impact on our business, results of operation,
and financial condition.
(2). Loan Recommendation Services
Revenue from the loan
recommendation business accounted for 0%, 52.1% and 58.1% of our total revenue for the fiscal years ended December 31, 2022, 2021 and
2020, respectively. During the fiscal year 2020, the Sentage Operating Companies successfully recommended 115 borrowers to the funding
partners. During the fiscal year 2021, the Sentage Operating Companies successfully recommended 23 borrowers to the funding partners.
During the year ended December 31, 2022, the Sentage Operating Companies was not able to provide Loan recommendation Services and was
not able to generate revenue because the temporary COVID-19 lock down from April 2022 to June 2022 prevented the Sentage Operating Companies
from face-to-face interactions with prospective customers during the peak season of this type of business.
(3). Prepaid Payment Network Services
Revenue from the prepaid
payment network service business accounted for 100 %, 41.0% and 12.0% of our total revenue for the fiscal years ended December 31, 2022,2021
and 2020, respectively. The Sentage Operating Companies started this service in August 2019 and only provided prepaid payment network
consulting services to four customers in the fiscal year 2020. During the fiscal year 2021, the Sentage Operating Companies provided prepaid
payment network consulting services to seven customers. During the year ended December 31, 2022, the Sentage Operating Companies provided
prepaid payment network consulting services to four customers. Due to great changes in market orientation and demand, the company's business
is also undergoing rapid adjustment along with national policies, and the changes in the market. At present, all aspects of the market
are gradually stabilizing. The Sentage Operating Companies plans to find new business directions by adjusting business plan accordingly.
96
Operating expenses
Our operating expenses
primarily consist of the Sentage Operating Companies' selling and marketing expenses and general and administrative expenses. Our
selling expense primarily include expenses incurred for business travel, meals, outsourced collection agent fees and other expenses related
to the sales and marketing activities. Our general and administrative expenses primarily include the legal fee, audit fee, employee salaries,
welfare, and insurance expenses, business consulting expenses, travel and transportation expenses for our management team, meals and entertainment
expenses, office rental expense, depreciation expenses, and office supply and utility expenses.
For the fiscal years
ending December 31, 2022 and 2021, our selling, general and administrative expenses amounted to $2,732,379 and $3,041,415, respectively,
a decreased of $ 309,036 or 10%. This decrease was primarily due to expenses related to our initial public offering incurred in fiscal
2021 while none incurred in fiscal year 2022.
Results of Operations
The following table sets forth a summary of our
consolidated results of operations, for the period indicated. This information should be read together with our consolidated financial
statements and related notes included elsewhere in this annual report. The operating results in any period are not necessarily indicative
of the results that may be expected for any future period.
2020
2021
2022
Amount
%
Amount
%
Amount
%
Summary Consolidated Statements of Operations:
Operating revenue
Consumer loan repayment and collection management fees
1,074,734
29.9
156,062
6.9
-
-
Loan recommendation service fees
2,087,717
58.1
1,177,822
52.1
-
-
Prepaid payment network service fees
432,958
12.0
928,565
41.0
161,372
100.0
Total operating revenue
3,595,409
100.0
2,262,449
100.0
161,372
100.0
Operating expenses:
Selling, general and administrative expenses
1,414,979
39.4
3,041,415
134.4
2,732,379
1,693.2
Total operating expenses
1,414,979
39.4
3,041,415
134.4
2,732,379
1,693.2
Income from operations
2,180,430
60.6
(778,966
)
(34.4
)
(2,571,007
)
(1,593.2
)
Other income (expenses)
(354
)
*
(56,931
)
(2.5
)
9,100
5.6
Income before income tax provision
2,180,076
60.6
(835,897
)
(36.9
)
(2,561,907
)
(1,587.6
)
Provision for income taxes
592,701
16.5
257,344
11.4
-
-
Net (loss)/income
1,587,375
44.2
(1,093,241
)
(48.3
)
(2,561,907
)
(1,587.6
)
*
Denotes percentages between (0.1%) and 0.1%.
97
Year Ended December 31, 2022 Compared to Year Ended December 31,
2021
Revenues
Total operating revenue
decreased by $2,101,077, or 92.9%, to $161,372 for the fiscal year ended December 31, 2022 from $2,262,449 for the fiscal year ended December
31, 2021. The decrease in our revenues was primarily due to the following reasons: a) the servicing agreements under the consumer loan
repayment and collection management business were fully completed in fiscal 2021 and no related revenue was generated in fiscal year 2022;
b) the Company didn't generate any revenue from the loan recommendation services in fiscal year 2022 because the Company was not
able to engage any new customers in the peak season of this type of business during the COVID-19 lock down starting from April to June
2022; and c) the revenue from prepaid payment network services decreased sharply due to the decreased demand by customers caused by the
uncertainties COVID-19.
Other income (expenses)
Our other income (expense)
consists primarily of bank fees, exchange gain or loss, impairment losses on assets, and gains and losses on the disposal of fixed assets.
In fiscal year 2022, our net other income (expense) was $9,100, a decrease of $66,031 from net other income (expense) of $56,931 in fiscal
year 2021. This was due to an additional asset impairment loss in fiscal 2021.
Provision for Income Taxes
Our provision for income
taxes was nil in fiscal year ended December 31, 2022, a decrease of $257,343, or 100.0%, from $257,343 in fiscal year ended December 31,
2021. This was due to the fact that the company posted a loss and no deferred tax expense or benefit was recognized in fiscal 2022.
Net Income/(Loss)
As a result of the foregoing, we reported a net
loss of $2,561,907 for the fiscal year ended December 31, 2022, representing a $1,468,666 decrease from the net income of $1,093,241 for
the fiscal year ended December 31, 2021.
Year Ended December 31, 2021 Compared to Year Ended December 31,
2020
Revenues
Total operating revenue
decreased by $1,332,960, or 37.1%, to $2,262,449 for the fiscal year ended December 31, 2021 from $3,595,409 for the fiscal year ended
December 31, 2020. The decrease in our revenues was primarily due to the fact that the outstanding servicing agreements under the consumer
loan repayment and collection management business were fully completed in fiscal 2021 and revenues from this business were significantly
reduced in 2021.
98
Selling, general and administrative expenses
For the fiscal years ending December 31, 2021 and 2020, our selling,
general and administrative expenses amounted to $3,041,415 and $1,414,979, respectively, an increase of $1,626,436 or 115%. This increase
was mainly due to the fees incurred in connection with our initial public offering.
Other income (expenses)
Our other income (expense)
consists primarily of bank fees, penalties, impairment losses on assets, and gains and losses on the disposal of fixed assets. In fiscal
year 2021, our net other expense was $56,931, an increase of $56,577 from net other expense of $354 in fiscal year 2020. This is due to
an additional asset impairment loss in fiscal 2021.
Provision for Income Taxes
Our provision for income
taxes was $257,344 in fiscal year ended December 31, 2021, a decrease of $ 335,357, or 56.6%, from $592,701 in fiscal year ended December
31, 2020 due to our decreased taxable income.
Net Income/(Loss)
As a result of the foregoing, we reported a net
loss of $1,093,241 for the fiscal year ended December 31, 2021, representing a $2,680,616 decrease from the net income of $1,587,375 for
the fiscal year ended December 31, 2020.
Taxation
Cayman Islands
We are incorporated in the Cayman Islands. Under
the current law of the Cayman Islands, we are not subject to income or capital gains tax. 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%.
PRC
According to the EIT Law, which was promulgated
by the SCNPC on March 16, 2007, became effective on January 1, 2008, and was then amended on February 24, 2017, and the Implementation
Rules of the EIT Law, which were promulgated by the State Council on December 6, 2007, and became effective on January 1, 2008, enterprises
are divided into resident enterprises and non-resident enterprises. Resident enterprises pay enterprise income tax on their incomes obtained
in and outside the PRC at the rate of 25%. Non-resident enterprises setting up institutions in the PRC pay enterprise income tax on the
incomes obtained by such institutions in and outside the PRC at the rate of 25%. Non-resident enterprises with no institutions in the
PRC, and non-resident enterprises with income having no substantial connection with their institutions in the PRC, pay enterprise income
tax on their income obtained in the PRC at a reduced rate of 10%.
We are a holding company incorporated in the Cayman
Islands and we gain substantial income by way of dividends paid to us from the PRC Operating Entities. The EIT Law and its implementation
rules provide that China-sourced income of foreign enterprises, such as dividends paid by a PRC subsidiary to its equity holders that
are non-resident enterprises, will normally be subject to PRC withholding tax at a rate of 10%, unless any such foreign investor's
jurisdiction of incorporation has a tax treaty with China that provides for a preferential tax rate or a tax exemption.
99
Under the EIT Law, an enterprise established outside
of China with a "de facto management body" within China is considered a "resident enterprise," which means that
it is treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. Although the implementation rules of the
EIT Law define "de facto management body" as a managing body that actually, comprehensively manage and control the production
and operation, staff, accounting, property, and other aspects of an enterprise, the only official guidance for this definition currently
available is set forth in SAT Notice 82, which provides guidance on the determination of the tax residence status of a Chinese-controlled
offshore incorporated enterprise, defined as an enterprise that is incorporated under the laws of a foreign country or territory and that
has a PRC enterprise or enterprise group as its primary controlling shareholder. Although Sentage Holdings does not have a PRC enterprise
or enterprise group as our primary controlling shareholder and is therefore not a Chinese-controlled offshore incorporated enterprise
within the meaning of SAT Notice 82, in the absence of guidance specifically applicable to us, we have applied the guidance set forth
in SAT Notice 82 to evaluate the tax residence status of Sentage Holdings and its subsidiaries organized outside the PRC.
According to SAT Notice 82, a Chinese-controlled
offshore incorporated enterprise will be regarded as a PRC tax resident by virtue of having a "de facto management body" in
China and will be subject to PRC enterprise income tax on its worldwide income only if all of the following criteria are met: (i) the
places where senior management and senior management departments that are responsible for daily production, operation and management of
the enterprise perform their duties are mainly located within the territory of China; (ii) financial decisions (such as money borrowing,
lending, financing and financial risk management) and personnel decisions (such as appointment, dismissal and salary and wages) are decided
or need to be decided by organizations or persons located within the territory of China; (iii) main property, accounting books, corporate
seal, the board of directors and files of the minutes of shareholders' meetings of the enterprise are located or preserved within
the territory of China; and (iv) one half (or more) of the directors or senior management staff having the right to vote habitually reside
within the territory of China.
We believe that we do not meet some of the conditions
outlined in the immediately preceding paragraph. For example, as a holding company, the key assets and records of Sentage Holdings, including
the resolutions and meeting minutes of our board of directors and the resolutions and meeting minutes of our shareholders, are located
and maintained outside the PRC. In addition, we are not aware of any offshore holding companies with a corporate structure similar to
ours that has been deemed a PRC "resident enterprise" by the PRC tax authorities. Accordingly, we believe that Sentage Holdings
and its offshore subsidiaries should not be treated as a "resident enterprise" for PRC tax purposes if the criteria for "de
facto management body" as set forth in SAT Notice 82 were deemed applicable to us. However, as the tax residency status of an enterprise
is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de
facto management body" as applicable to our offshore entities, we will continue to monitor our tax status.
100
The implementation rules of the EIT Law provide
that, (i) if the enterprise that distributes dividends is domiciled in the PRC or (ii) if gains are realized from transferring equity
interests of enterprises domiciled in the PRC, then such dividends or gains are treated as China-sourced income. It is not clear how "domicile"
may be interpreted under the EIT Law, and it may be interpreted as the jurisdiction where the enterprise is a tax resident. Therefore,
if we are considered as a PRC tax resident enterprise for PRC tax purposes, any dividends we pay to our overseas shareholders which are
non-resident enterprises as well as gains realized by such shareholders from the transfer of our shares may be regarded as China-sourced
income and as a result become subject to PRC withholding tax at a rate of up to 10%. Dentons, our PRC counsel, is unable to provide a
"will" opinion because it believes that it is more likely than not that we and our offshore subsidiaries would be treated
as non-resident enterprises for PRC tax purposes because we do not meet some of the conditions outlined in SAT Notice 82. In addition,
Dentons is not aware of any offshore holding companies with a corporate structure similar to ours that has been deemed a PRC "resident
enterprise" by the PRC tax authorities as of the date of this annual report. Therefore, Dentons believes that it is possible but
highly unlikely that the income received by our overseas shareholders will be regarded as China-sourced income.
See "Item 3. Key Information—D. Risk
Factors—Risks Related to Doing Business in China—Under the PRC Enterprise Income Tax Law, we may be classified as a PRC "resident
enterprise" for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences to us
and our non-PRC shareholders and have a material adverse effect on our results of operations and the value of your investment."
Currently, as resident enterprises in the PRC,
the Sentage Operating Companies are subject to the enterprise income tax at the rate of 25%. The EIT is calculated based on the entity's
global income as determined under PRC tax laws and accounting standards. If the PRC tax authorities determine that Sentage Holdings is
a PRC resident enterprise for enterprise income tax purposes, we may be required to withhold a 10% withholding tax from dividends we pay
to our shareholders that are non-resident enterprises. In addition, non-resident enterprise shareholders may be subject to a 10% PRC withholding
tax on gains realized on the sale or other disposition of our Ordinary Shares, if such income is treated as sourced from within the PRC.
It is unclear whether our non-PRC individual shareholders would be subject to any PRC tax on dividends or gains obtained by such non-PRC
individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to dividends or gains
realized by non-PRC individuals, it would generally apply at a rate of 20% unless a reduced rate is available under an applicable tax
treaty. However, it is also unclear whether our non-PRC shareholders would be able to claim the benefits of any tax treaties between their
country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. There is no guidance from the PRC
government to indicate whether or not any tax treaties between the PRC and other countries would apply in circumstances where a non-PRC
company was deemed to be a PRC tax resident, and thus there is no basis for expecting how tax treaty between the PRC and other countries
may impact non-resident enterprises.
B. Liquidity and Capital Resources
Cash Flows and Working Capital
The principal sources of liquidity have been from
cash generated from operating and financing activities . As of December 31, 2020, 2021 and 2022, we had $140,382, $10,783,387 and $3,828,224
for cash, cash equivalents and restricted cash, respectively. Our cash and cash equivalents are primarily denominated in Renminbi and
US dollars.
In assessing our liquidity, our management monitors
and analyzes our cash on-hand, our ability to generate sufficient revenue sources in the future, and our operating and capital expenditure
commitments. As of December 31, 2022, we had cash and restricted cash of approximately $3.8 million. Accounts receivable of approximately
$0.4 million associated with services rendered for our prepaid payment network business and loan recommendation business has been billed
to our customers but has not been collected as of the balance sheet dates. We also borrowed approximately $ 4,709, which was provided
by our controlling shareholder, Ms. Qiaoling Lu, to support our working capital need. Ms. Qiaoling Lu will not seek repayment of her related
party balance of $ 4,709 as of December 31, 2022 until at least 12 months from the issuance of the financial statements.
101
Currently, we improve our liquidity and capital
sources primarily through cash flows from operation and financial support from our principal shareholders. In order to fully implement
our business plan and sustain continued growth, we may also need to raise capital from outside investors.
In light of the effects of the COVID-19 pandemic
as discussed above, if we are required to operate in a challenging economic environment in China, if we incur unanticipated capital expenditures,
or if we decide to accelerate our growth, we may need additional financing. We cannot guarantee, however, that additional financing, if
required, would be available at all or on favorable terms. Such financing may include the use of additional debt or the sale of additional
equity securities. Any financing which involves the sale of equity securities or instruments that are convertible into equity securities
could result in immediate and possibly significant dilution to our existing shareholders.
In the coming years, we will be exploring other
financing sources, such as raising additional capital by issuing shares of stock, to meet our cash needs. While facing uncertainties in
regard to the size and timing of capital raises, we are confident that we can continue to meet operational needs solely by utilizing cash
flows generated from our operating activities and working-capital funds provided by shareholders, as necessary.
The following table sets forth a summary of our
cash flows for the periods presented:
Years Ended December 31,
2020
2021
2022
Net cash provided by (used in) operating activities
$
465,210
)
$
(382,664
)
$
(6,662,609
)
Net cash provided by (used in) investing activities
-
(5,519,977
)
(34,346
)
Net cash provided by (used in) financing activities
(585,859
)
16,401,297
(173,162
)
Effect of exchange rate change on cash and restricted cash
10,000
144,349
(85,046
)
Net increase (decrease) in cash and restricted cash
$
(110,649
)
$
10,643,005
$
(6,955,163
)
Cash and restricted cash, beginning of year
251,031
140,382
10,783,387
Cash and restricted cash, end of year
$
140,382
$
10,783,387
$
3,828,224
Operating Activities
Net cash used in operating activities was $6,662,609
for the fiscal year ended December 31, 2022, which primarily consisted of the following:
●
Net loss of $ 2,561,907 for the fiscal year.
●
A decrease in Prepaid expenses and other current assets of $4,064,584.
This is primarily due to a deposit of $3,570,000 paid by the Company in fiscal year 2022 for the commissioned acquisition of an e-commerce
technology services business.
102
Net cash used in operating activities was $385,664
for the fiscal year ended December 31, 2021, which primarily consisted of the following:
●
Net loss of $1,093,241 for the fiscal year.
●
A decrease in accounts receivable of $763,240. The decreased was due to our provision of loan recommendation services and prepaid payment network services and, in connection with the two business lines, our performance obligation under our service agreements with clients had been fully satisfied. The majority of the receivables from our customers were collected as of 2021.12.31.
●
A decrease in deferred revenue of $154,106. The decrease was due to the recognition of such amount as revenue when our performance obligation associated with our consumer loan repayment and collection management services had been satisfied during the 2021 fiscal year
Net cash provided by operating activities was
$465,210 for the fiscal year ended December 31, 2020, which primarily consisted of the following:
●
Net income of $1,587,375 for the fiscal year.
●
An increase in accounts receivable of $918,303. The increase was due to our provision of loan recommendation services and prepaid payment network services and, in connection with the two business lines, our performance obligation under our service agreements with clients had been fully satisfied. We had fully collected our accounts receivable by April 2021. The collected accounts receivable is available cash, which can be used as working capital for our business operation, if necessary.
●
A decrease in deferred revenue of $1,056,406. The decrease was due to the recognition of such amount as revenue when our performance obligation associated with our consumer loan repayment and collection management services had been satisfied during the 2020 fiscal year.
Investing Activities
Net cash used in investing activities amounted
to $34,346 for the fiscal year ended December 31, 2022, mainly includes to consisting primarily of purchases of software products.
Net cash used in investing activities amounted
to $5,519,977 for the fiscal year ended December 31, 2021, mainly includes to purchase a one-year note with principal of $5.5 million.
There was no cash used in investing activities
in 2020 fiscal year.
Financing Activities
Net cash provided by financing activities amounted
to $173,162 for the fiscal year ended December 31, 2022, primarily the repayment of working capital of related parties $ 156,311.
Net cash provided by financing activities amounted
to $16,401,297 for the fiscal year ended December 31, 2021, primarily consisting of the proceeds from IPO in the amount of $16,912,053
and the repayment of working capital of related parties $ 1,276,641.
Net cash used in financing activities amounted
to $585,859 for the fiscal year ended December 31, 2020, primarily consisting of deferred initial public offering cost of $765,885 in
connection with our intended IPO, and proceeds of $180,026 provided by related party as working capital.
103
C. Research and Development, Patents and Licenses, etc.
See "Item 4. Information on the Company—B.
Business—Intellectual Property."
D. Trend Information
Other than as disclosed elsewhere in this annual
report, we are not aware of any trends, uncertainties, demands, commitments or events for the period from January 1, 2022 to December 31,
2022 that are reasonably likely to have a material effect on our net revenues, income, profitability, liquidity or capital resources,
or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
E. Critical Accounting Estimates
We prepare our financial statements in accordance
with U.S. GAAP, which requires our management to make judgment, estimates and assumptions that affect our reporting of, among other
things, assets and liabilities, contingent assets and liabilities and revenue and expenses. We continually evaluate these judgments, estimates
and assumptions based on our own historical experience, knowledge and assessment of relevant current business and other conditions, our
expectations regarding the future based on available information and various assumptions that we believe to be reasonable, 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 selection of critical accounting policies,
the judgments and other uncertainties affecting the application of those policies and the sensitivity of reported results to changes in
conditions and assumptions are factors that should be considered when reviewing our financial statements. We believe the following accounting
policies involve the most significant judgments and estimates used in the preparation of our financial statements. You should read the
following description of critical accounting policies, judgments and estimates in conjunction with our consolidated financial statements
and other disclosures included in this annual report.
Revenue Recognition
We adopted ASC 606, "Revenue from Contracts
with Customers" for all periods presented. Consistent with the criteria of ASC 606, we follow five steps for its revenue recognition:
(i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine
the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize
revenue when (or as) the entity satisfies a performance obligation. The primary sources of our revenues are as follows:
Revenue from consumer loan repayment and collection
management services
Loans facilitated through the Sentage Operating
Companies were consumer loan products ranging from 30,000 RMB (approximately $4,342) to 80,000 RMB (approximately US$11,579). Loan term
ranges from one to four years.
All of the clients are individual customers who
entered into service agreements with the Sentage Operating Companies. All of these loans were facilitated through the offline loan recommendation
services before November 2017. Since November 2017, the Sentage Operating Companies have not provided any intermediary services for any
new customers due to changes in related governing regulations in China, and they have been focusing on providing services related to consumer
loan repayment and collection management to the customers. These consumer loan repayment and collection management services are a part
of the service obligations in the service agreements with the customers. Pursuant to the Sentage Operating Companies' agreements
with customers, loan repayment and collection management services are parts of bundled services offered by the Sentage Operating Companies
to customers for a fixed fee and are not capable of being distinct because the Sentage Operating Companies are required to concurrently
monitor and manage the repayment and collection process of outstanding loans to be entitled to receive a fixed service fee. As a result,
loan management services and collection management services are not separately identifiable in the context of the contract and accordingly
are treated as a bundled single performance obligation. There is no variable consideration in the contract. Once a specific loan is repaid
on time, the service obligation related to such loan is satisfied. If a loan becomes delinquent, the Sentage Operating Companies are then
required to assist in collection efforts for an extended service period of additional 12 months starting with the day when such loan becomes
delinquent. No additional fee can be charged for collection management services provided to delinquent loans beyond the initial fixed
fee agreed. If all or a part of the loan is still not repaid after all collection management efforts are exhausted within such required
service period, the Sentage Operating Companies' service obligation related to such loan is satisfied and the Sentage Operating
Companies are not responsible for any loss from an uncollectible.
104
The Sentage Operating Companies' loan repayment
and collection management services primarily include reconciling borrower repayment record and sending payment reminder and notice periodically
facilitating repayment upon maturity and collaborating with third-party collection agents and law firms in the event of delinquency, etc.
Loan repayment and collection management fees received from the customers upfront are deferred first, and then ratably recognized as revenue
over the loan terms or an extended service period of additional 12 months starting with the day when such loan becomes delinquent, as
the Company performs designated services.
Revenue from services provided to borrower
for loan recommendation
The Sentage Operating Companies started to provide
borrower recommendation services where they recommend prospective borrowers to funding partners in June 2019. The Sentage Operating Companies'
performance obligations include making loan product recommendations to borrower applicants based on their specific needs, processing paperwork
related to borrowers' applications, evaluating credentials of borrower applicants, appraising borrowers' properties to be
collateralized through data analysis and on-site inspection, and recommending qualified borrowers to various funding partners for loan
approval. The Sentage Operating Companies receive a service fee from a borrower if he or she is approved for a loan and such loan is then
funded by one of the funding partners. The Sentage Operating Companies acquire borrowers through cooperating with third-party referral
partners as well as through their own borrower development efforts. For borrowers acquired through cooperating with third-party referral
partners, pursuant to the service agreement between the Sentage Operating Companies and the referral partners, referral partners first
charge borrowers service fees for their referrals. The Sentage Operating Companies then charge the referral partners a commission ranging
from 1.5% to 2% based on the loan proceeds disbursed to the borrowers. For borrowers developed directly by the Sentage Operating Companies,
they charge the borrowers a service fee of 1.75% to 3% of the loan amount received by the borrowers. We recognize revenue at the point
when the Sentage Operating Companies' performance obligations are satisfied and the loan proceeds are disbursed to a specific borrower.
For the fiscal years ended December 31, 2022 and 2021, we generated nil and $1,177,822 in revenue from the loan recommendation service,
respectively.
Contract fulfillment costs associated with loan
recommendation services primarily consist of employee salary, bonus and business travel costs incurred by the Sentage Operating Companies
to fulfill their performance obligations. Contract fulfillment costs are only capitalized when the costs generate or enhance resources
that will be used in satisfying future performance obligations of the contract and the costs are expected to be recovered. For fiscal
years ended December 31, 2022 and 2021,contract fulfillment costs were not capitalized and were expensed as incurred, due to immateriality
of such costs.
Revenue from prepaid payment network services
In 2012, Qingdao Buytop, was granted a third-party
payment service license by the relevant authority in China. Qingdao Buytop started to provide prepaid payment network services to merchant
customers in August 2019. Qingdao Buytop is licensed to issue generic and branded prepaid gift and debit cards and provide related services
to various merchants, such as supermarket and department stores, etc. In connection with repaid payment network services, we expect to
generate revenue from: (1) technology consulting and support services fees related to payment solution planning, design, and management;
(2) prepaid card payment services fees related to issuance and use of prepaid cards. Technology consulting and support services are short-term
in nature, with service period ranging from one to three months, and related service fees are recognized as revenue at point when payment
solution, design and management services are rendered, completed and accepted by customers. For merchant customers who need prepaid card
payment services such as collecting and processing information necessary for prepaid card issuance and authorizing transaction requests
after verifying transaction information, Qingdao Buytop charge service fee equal to 0.3% to 0.5% of each transaction amount and recognize
revenue at the point when the prepaid cards issued by merchant customers are used by their end user card holders. For the fiscal years
ended December 31, 2022 and 2021, we earned $161,372 and $928,565 in revenue from providing technology consulting and support service
to customers, respectively.
105
Income Taxes
Income taxes are accounted for under the asset
and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary
differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well
as operating loss and tax credit carryforwards, if any. Deferred income tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect
on deferred income tax assets and liabilities of a change in tax rates or tax laws is recognized in the consolidated statements of comprehensive
income in the period the change in tax rates or tax laws is enacted. We reduce the carrying amounts of deferred tax assets by a valuation
allowance, if based on the available evidence, it is "more-likely-than-not" that such assets will not be realized. Accordingly,
the need to establish valuation allowances for deferred tax assets is assessed at each reporting period based on a "more-likely-than-not"
realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses,
forecasts of futures profitability, the duration of statutory carryforward periods, and our experience with operating loss and tax credit
carryforwards, if any, not expiring.
In the financial statements, we recognize the
impact of a tax position if that position is "more likely than not" to prevail based on the facts and technical merits of
the position. Tax positions that meet the "more likely than not" recognition threshold are measured at the largest amount
of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Changes in recognition or measurement
are reflected in the period in which the change in judgement occurs. Interest and penalties recognized related to an unrecognized tax
benefits are classified as income tax expense in the consolidated statements of comprehensive income.
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND
EMPLOYEES
A. Directors and Senior Management
The following table sets forth the name,
age and position of each of our directors and executive officers as of the date of this annual report.
Name
Age
Position
Qiaoling Lu
43
Chief Executive Officer, Chairman of the Board of Directors, and Director
Jianhua Chen
47
Chief Financial Officer
Yiheng Guo
39
Director
Michael JohnViotto
(1)(2)(3)
71
Independent Director
Angel Colon
(1)(2)(3)
49
Independent Director
Shengsong Wang
(1)(2)(3)
67
Independent Director
(1)
Member of the Audit Committee
(2)
Member of the Nominating and Corporate Governance Committee
(3)
Member of the Compensation Committee
Ms. Qiaoling Lu
has been our chief executive
officer, chairman of the board of directors, and director since incorporation. Ms. Lu has served as the general manager of Daxin Wealth
since March 2015. Before joining us, she served as the manager director of Asia Pacific at Interconnect Products Limited UK from September
2010 to January 2015, where she successfully led her team to expand the company's business in the Asia market. She also served as
a finance associate at IQVIA (formerly known as Quintiles European headquarters) from April 2006 to August 2010. Ms. Lu obtained her master's
degree in International Relations from Qingdao University in Qingdao City, Shandong Province, China in 2005. Ms. Lu obtained her master's
degree in International Management from Henley Business School at University of Reading in the United Kingdom in 2004. Ms. Lu obtained
her bachelor's degree in International Economics from Shandong University of Finance and Economics in Jinan City, Shandong Province,
China in 2002.
106
Mr. Jianhua Chen
was appointed as our Chief
Financial Officer September 1, 2020. He has served as the finance director of Daxin Wealth since June 2016. Prior to joining Daxin Wealth,
he had served as the finance director of Shanghai Chenengdai Finance Technology Co., Ltd. from January 2015 to June 2016. Mr. Chen obtained
his master's degree in Business Administration from Renmin University of China in Beijing, China in 2018. Mr. Chen obtained his
bachelor's degree in Accounting from Shanghai Ocean University in Shanghai City, China in 1998..
Mr. Yiheng Guo
has served as a director
of Daxin Wealth from March 2015 to present. Mr. Guo obtained his master's degree in Real Estate Investment and Finance from Henley
Business School at University of Reading in the United Kingdom in 2007. Mr. Guo obtained his bachelor's degree in International
Securities Investment & Banking from University of Reading in the United Kingdom in 2006..
Mr. Michael John Viotto
is our Independent
Director, within the meaning of the Nasdaq Listing Rules. Michael Viotto currently serves as the Chief Financial Officer and a Board member
for Fuse Group Holdings Inc., an OTC OB Market listed company (trading symbol: FUST). Mr. Viotto has been serving as a Board member for
Fuse Group Holding Inc. since August 2017, supervising finance aspects of the Company. Mr. Viotto has been the President of MJV Consulting
since October 2014, and has also been serving as an Independent Director for Dunxin Financial Holding Limited, an NYSE market listed company
(trading symbol: DXF), serving as the Chairman of the company's Compensation Committee and a member of the company's Nomination
Committee as well as its Audit Committee since December, 2017. In addition, Mr. Viotto also served as an Independent Director for Future
World Financial Holdings Inc. from September 2016 to January 2017, which is a financial company based in Hong Kong, China. He served as
the Chairman for the company's Nominating and Remuneration Committee and as a member of the company's Audit Committee. Mr.
Viotto received his Bachelor of Science Degree in Business Administration from California Polytechnic University located in Pomona, California
in March 1985.
Mr. Angel Colon
is our Independent Director,
within the meaning of the Nasdaq Listing Rules. Mr. Colon has served as a managing member of NY Capital Management Group, LLC since January
2017; Turing Funds, LLC since July 2017; Vega Management Advisors, LLC from October 2018 to February 2020; and Vega Management Investments,
LLC from October 2018 to February 2020; providing services to high net worth individuals, businesses and institutions to produce solutions
that facilitate the advancement and management of capital along with the mitigation of risk to achieve dependable annual returns. Mr.
Colon has served as a financial advisor and consultant of Andean Farm since and Pharma Corp. since December 2018 and Bronson Resource
Limited since December 2018, responsible for research-backed support of strategies concerning the mitigation of risk and financial planning
from inception to completion. Previously, Mr. Colon served as a financial advisor for Cuttone & Co., LLC from December 2016 to February
2018; Tribal Capital Markets, LLC from August 2016 to December 2016; and Bonwick Capital Partners, LLC from July 2015 to August 2016.
Mr. Colon also served as a capital markets associate at TriPoint Global Equities, LLC from December 2013 to July 2015. Mr. Colon received
a Bachelor of Science in International Business; minor in Languages and Economics from St. John Fisher College in 1996. He currently holds
FINRA Series 7, Series 63 and Series 65 and is a licensed broker with FINRA.
Mr. Shengsong Wang
is our Independent Director,
within the meaning of the Nasdaq Listing Rules. Mr. Wang currently serves as a law professor at Qingdao University in Shandong Province.
He joined Qingdao University in 1987 as a lecturer and served as an associate professor, professor, and then dean of faculty. Mr. Wang
is a renowned legal professional specializing in arbitration and litigation. Between June 2009 and December 2013, Mr. Wang served as an
Independent Director for Qingdao Hanhe Cable Co., Ltd, a Shenzhen Stock Exchange listed company that specializes in cable system services,
transformation products, and smart grid technology in China. Between March 2015 and April 2018, Mr. Wang served as an Independent Director
for Weflo Valve Co., Ltd., a Shenzhen Stock Exchange listed company that specializes in the design and manufacture of valves and fire
hydrant products. Mr. Wang received a Bachelor Degree in History in 1982 and a Master Degree in Ancient World History in 1986 from Qufu
Normal University. Mr. Wang also received a Master Degree from Harbin Normal University in 1986 and a Doctorate Degree in Law Jurisprudence
from China University of Political Science and law in 2005.
107
Our officers are appointed by and serve at the
discretion of our board of directors and the shareholders voting by ordinary resolution. Our directors are not subject to a set term of
office and hold office until the next general meeting called for the election of directors and until their successor is duly appointed
or such time as they die, resign or are removed from office by a shareholders' ordinary resolution. The office of a director will
be vacated automatically if, among other things, the directors resigns in writing, becomes bankrupt or makes any arrangement or composition
with his/her creditors generally or is found to be or becomes of unsound mind.
Family Relationships
Ms. Qiaoling Lu and Mr. Yiheng Guo are wife and
husband. None of our other directors or executive officers has a family relationship as defined in Item 401 of Regulation S-K.
Involvement in Certain Legal Proceedings
None of our directors or executive officers has,
during the past 10 years, was involved in any legal proceedings described in subparagraph (f) of Item 401 of Regulation S-K.
Employment Agreements and Indemnification Agreements
We have entered into employment agreements with
each of our executive officers. Pursuant to employment agreements, we agreed to employ each of our executive officers for a specified
time period, which may be renewed upon both parties' agreement 30 days before the end of the current employment term, and payment
of cash compensation. We may terminate the employment for cause, at any time, without notice or remuneration, for certain acts of the
executive officer, including but not limited to the commitments of any serious or persistent breach or non-observance of the terms and
conditions of the employment, conviction of a criminal offense, willful disobedience of a lawful and reasonable order, fraud or dishonesty,
receipt of bribery, or severe neglect of his or her duties. An executive officer may terminate his or her employment at any time with
a one-month prior written notice. Each executive officer has agreed to hold, both during and after the employment agreement expires, in
strict confidence and not to use or disclose to any person, corporation or other entity without written consent, any confidential information.
We have also entered into indemnification agreements
with each of our directors and executive officers. Under these agreements, we agree to indemnify our directors and executive officers
against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being a director or
officer of our company.
B. Compensation of Directors and Executive Officers
For the fiscal year ended December 31, 2022,
we, our subsidiaries and the VIEs, paid in aggregate cash compensation of approximately US$229,370.12 to our directors and executive officers
as a group. Our PRC subsidiary and the VIEs are required by law to make contributions equal to certain percentages of each employee's
salary for his or her pension insurance, medical insurance, unemployment insurance, and other statutory benefits and a housing provident
fund.
C. Board Practices
Our board of directors consists of five directors, three of whom
shall be "independent" within the meaning of the corporate governance standards of the Nasdaq listing rules and meet the criteria
for independence set forth in Rule 10A-3 of the Exchange Act.
Terms of Directors
and Executive Officers
Our officers are appointed by and serve at the
discretion of our board of directors and the shareholders voting by ordinary resolution. Our directors are not subject to a set term of
office and hold office until the next general meeting called for the election of directors and until their successor is duly appointed
or such time as they die, resign or are removed from office by a shareholders' ordinary resolution. The office of a director will
be vacated automatically if, among other things, the directors resigns in writing, becomes bankrupt or makes any arrangement or composition
with his/her creditors generally or is found to be or becomes of unsound mind.
108
Duties of Directors
Under Cayman Islands law, all of our directors
owe three types of duties to us: (i) statutory duties, (ii) fiduciary duties, and (iii) common law duties. The Companies Act (2021 Revision)
of the Cayman Islands imposes a number of statutory duties on a director. A Cayman Islands director's fiduciary duties are not codified;
however, the courts of the Cayman Islands have held that a director owes the following fiduciary duties: (a) a duty to act in what the
director bona fide considers to be in the best interests of the company, (b) a duty to exercise their powers for the purposes
they were conferred, (c) a duty to avoid fettering his or her discretion in the future and (d) a duty to avoid conflicts of interest and
of duty. The common law duties owed by a director are those to act with skill, care and diligence that may reasonably be expected of a
person carrying out the same functions as are carried out by that director in relation to the company and, also, to act with the skill,
care and diligence in keeping with a standard of care commensurate with any particular skill they have which enables them to meet a higher
standard than a director without those skills.
The functions and powers of our board of directors
include, among others:
●
appointing officers and determining the term of office of the officers;
●
authorizing the payment of donations to religious, charitable, public, or other bodies, clubs, funds, or associations as deemed advisable;
●
exercising the borrowing powers of the company and mortgaging the property of the company;
●
executing checks, promissory notes, and other negotiable instruments on behalf of the company; and
●
maintaining or registering a register of mortgages, charges, or other encumbrances of the company.
Committees of the Board of Directors
We have established three fully independent committees
under the board of directors: the audit committee, the nominating and corporate governance committee and the compensation committee. We
have adopted a charter for each of the three committees. The committee charters are available on our website at www.sentageholdings.com.
Each committee's members and functions are described below.
Audit Committee
Our audit committee consists of Angel Colon, Shengsong
Wang, and Michael John Viotto. Angel Colon is the chairperson of our audit committee. We have determined that Angel Colon, Shengsong Wang,
and Michael John Viotto satisfy the "independence" requirements of the Nasdaq listing rules under and Rule 10A-3 under the
Securities Exchange Act. Our board also has determined that Angel Colon qualifies as an audit committee financial expert within the meaning
of the SEC rules or possesses financial sophistication within the meaning of the Nasdaq listing rules. The audit committee oversees our
accounting and financial reporting processes and the audits of the financial statements of our company. The audit committee is responsible
for, among other things:
●
appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors;
●
reviewing with the independent auditors any audit problems or difficulties and management's response;
●
discussing the annual audited financial statements with management and the independent auditors;
●
reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures;
●
reviewing and approving all proposed related party transactions; and
●
meeting separately and periodically with management and the independent auditors; and monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.
109
Compensation Committee
Our compensation committee consists of Michael
John Viotto, Angel Colon, and Shengsong Wang. Michael John Viotto is the chairperson of our compensation committee. We have determined
that Michael John Viotto, Angel Colon, and Shengsong Wang satisfy the "independence" requirements of the Nasdaq listing rules
and Rule 10C-1 under the Securities Exchange Act. The compensation committee assists the board in reviewing and approving the compensation
structure, including all forms of compensation, relating to our directors and executive officers. Our chief executive officer may not
be present at any committee meeting during which his compensation is deliberated. The compensation committee is responsible for, among
other things:
●
reviewing and approving the total compensation package for our most senior executive officers;
●
approving and overseeing the total compensation package for our executives other than the most senior executive officers;
●
reviewing and recommending to the board with respect to the compensation of our directors;
●
reviewing periodically and approving any long-term incentive compensation or equity plans;
●
selecting compensation consultants, legal counsel or other advisors after taking into consideration all factors relevant to that person's independence from management; and
●
reviewing programs or similar arrangements, annual bonuses, employee pension and welfare benefit plans.
Nominating and Corporate Governance Committee
Our nominating and corporate governance committee
consists of Shengsong Wang, Michael John Viotto, and Angel Colon. Shengsong Wang is the chairperson of our nominating and corporate governance
committee. Shengsong Wang, Michael John Viotto, and Angel Colon satisfy the "independence" requirements of the Nasdaq listing
rules. The nominating and corporate governance committee assists the board of directors in selecting individuals qualified to become our
directors and in determining the composition of the board and its committees. The nominating and corporate governance committee is responsible
for, among other things:
●
identifying and recommending nominees for election or re-election to our board of directors or for appointment to fill any vacancy;
●
reviewing annually with our board of directors its current composition in light of the characteristics of independence, age, skills, experience and availability of service to us;
●
identifying and recommending to our board the directors to serve as members of committees;
●
advising the board periodically with respect to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to our board of directors on all matters of corporate governance and on any corrective action to be taken; and
●
monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.
110
D. Employees
As of the date of this annual report, we employed
13 employees in Shanghai, China, and 8 employees in Qingdao, China. At December 31, 2020, 2021 and 2022, we had 26, 23, and 21 employees,
respectively. The following table sets forth the numbers of our employees categorized by function as of December 31, 2022: The following
table sets forth the breakdown of our employees by function as of the date of this annual report:
Function
Number of
Employees
% of
Total
General Manager's Office
1
4.8
%
Finance Department
3
14
%
Risk control center
9
42.9
%
Business Department
1
4.8
%
Operating department
1
4.8
%
Marketing department
1
4.8
%
Technical department
3
14.3
%
Non-performing Assets Department
1
4.8
%
Integrated department
1
4.8
%
As required by regulations in China, we participate
in various employee social security plans that are organized by local governments, including pension, unemployment insurance, childbirth
insurance, work-related injury insurance, medical insurance and housing insurance. We are required under Chinese law to make contributions
to employee benefit plans at specified percentages of the salaries, bonuses and certain allowances of our employees, up to a maximum amount
specified by the local government from time to time.
Our employees are not represented by a labor organization
or covered by a collective bargaining agreement. We believe that we maintain a good working relationship with our employees and to date,
we have not experienced any significant labor disputes.
E. Share Ownership
The following table sets forth information regarding
the beneficial ownership based on 2,805,325 of our Ordinary Shares outstanding as of May 1, 2023 based on information obtained from the
persons named below, with respect to the beneficial ownership of our shares by:
●
each person known by us to be the beneficial owner of more than 5% of our outstanding shares;
●
each of our officers and directors; and
●
all our officers and directors as a group.
Unless otherwise indicated, we believe that all
persons named in the table have sole voting and investment power with respect to all Ordinary Shares beneficially owned by them.
Name and Address of Beneficial Owner
Amount
and
nature of
beneficial
ownership
Percentage of
outstanding
ordinary
shares
Directors and Executive Officers
(1)
Qiaoling Lu
1,650,000
58.93
%
Jianhua Chen
-
-
%
Yiheng Guo
96,000
3.43
%
Michael John Viotto
-
-
Angel Colon
-
-
Shengsong Wang
-
-
All directors and executive officers as a group
1,746,000
62.36
%
5% or Greater Shareholders
(2)
Unit Giant Limited
(3)
1,650,000
58.93
%
Notes:
(1)
Unless otherwise indicated, the business address of each of the individuals is 501, Platinum Tower, 233 Taicang Rd, HuangPu, Shanghai, PRC.
111
(2)
Unless otherwise indicated, the business address of the following shareholders is Ritter House, Wickhams Cay II, PO Box 3170, Road Town, Tortola, British Virgin Islands.
(3)
The number of Ordinary Shares beneficially owned represents 1,650,000 Ordinary Shares held by Unit Giant Limited, a British Virgin Islands company, which is 100% owned by Qiaoling Lu.
*
less than 1%
We are not aware of any arrangement that may,
at a subsequent date, result in a change of control of our Company.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED
PARTY TRANSACTIONS
A. Major Shareholders
See "Item 6. Directors, Senior Management and Employees—E.
Share Ownership."
B. Related Party Transactions
Contractual Arrangements with The VIEs and Their Respective Shareholders
See "Item 4. Information on the Company—C. Organizational
Structure."
Employment Agreements
See "Item 6. Directors, Senior Management
and Employees—A. Directors and Senior Management—Employment Agreements and Indemnification Agreements."
Other Transactions with Related Parties
Amount due from related parties
As of December 31, 2021 and 2022, and as of the
date of this annual report, we had no Amounts due from related parties.
Amount due to related parties
As of December 31, 2022, 2021, and 2020, and as
of the date of this annual report, the balance due to a related party in the amount of $ 4,709 and $161,020, and $1,437,661, respectively,
was loan advance from the Company's controlling shareholder, Ms. Qiaoling Lu, and was used as working capital during the Company's
normal course of business. Such advance was non-interest bearing and due on demand. Ms. Qiaoling Lu will not seek repayment of her related
party balance until at least 12 months from the issuance of the consolidated financial statements for the year ended December 31, 2022.
C. Interests of Experts and Counsel
Not applicable.
112
ITEM 8. FINANCIAL INFORMATION
A. Consolidated Statements and Other Financial Information
See Item 18 for our audited consolidated financial statements.
Legal Proceedings
From time to time, we may become a party to various
legal or administrative proceedings arising in the ordinary course of our business, including actions with respect to intellectual property
infringement, violation of third-party licenses or other rights, breach of contract and labor and employment claims. Except as otherwise
disclosed in this annual report, we are currently not a party to, and we are not aware of any threat of, any legal or administrative proceedings
that, in the opinion of our management, are likely to have any material and adverse effect on our business, financial condition, cash-flow or
results of operations. We may periodically be subject to legal proceedings, investigations and claims relating to our business. We may
also initiate legal proceedings to protect our rights and interests.
Dividend Policy
We previously did not declare or pay any cash
dividends and have no intention to declare or pay any dividends in the near future on our Ordinary Shares. We currently intend to retain
most, if not all, of our available funds and any future earnings to operate and expand our business.
Our board of directors has complete discretion
in deciding whether to distribute dividends. Even if our board of directors decides to pay dividends, the timing, amount and form of future
dividends, if any, will depend on, among other things, our future results of operations and cash flow, our capital requirements and surplus,
the amount of distributions, if any, received by us from our subsidiaries, our financial condition, contractual restrictions and other
factors deemed relevant by our board of directors.
We are a holding company with no material operations
of our own. We conduct our operations primarily through our PRC operating entities in China. PRC regulations may restrict the ability
of the PRC Operating Entities to pay dividends to us. As a result, our ability to pay dividends and to finance any debt we may incur depends
upon dividends paid by our subsidiaries. If our existing subsidiaries or any newly formed subsidiaries incur debt on their own behalf
in the future, the instruments governing their debt may restrict their ability to pay dividends to us.
B. Significant Changes
Except as disclosed elsewhere in this annual report,
we have not experienced any significant changes since the date of our audited consolidated financial statements included in this annual
report.
113
ITEM 9. THE OFFER AND LISTING
A. Offering and Listing Details
Our Ordinary Shares are listed on the Nasdaq Capital
Market under the symbol "SNTG".
B. Plan of Distribution
Not applicable.
C. Markets
Our Ordinary Shares began trading on the Nasdaq
Capital Market on July 9, 2021 under the symbol "SNTG." Prior to that there was no market for our Ordinary Shares.
D. Selling Shareholders
Not applicable.
E. Dilution
Not applicable.
F. Expenses of the Issue
Not applicable.
ITEM 10. ADDITIONAL INFORMATION
A. Share Capital
On August 1, 2022, Sentage Holdings Inc. (the
"Company") held its annual general meeting of shareholders, at which the Company's shareholders adopted the following
ordinary resolution (the "Share Consolidation"), that:
(A) the authorised share capital of the Company
be amended from US$50,000 divided into 50,000,000 ordinary shares of US$0.001 each to US$50,000 divided into 10,000,000 ordinary shares
of US$0.005 each, so that every shareholder holding 5 ordinary shares of US$0.001 each will hold 1 ordinary share of US$0.005 upon the
consolidation taking effect, such consolidated shares having the same rights and being subject to the same restrictions (save as to nominal
value) as the existing ordinary shares of US$0.001 each in the capital of the Company as set out in the Company's articles of association
(the "Share Consolidation"), with such Share Consolidation to be effective on such date as determined by the Board of Directors,
which date must be on or before August 12, 2022, and such date shall be announced by the Company;
(B) on the effective date, the authorized share
capital of the Company shall be US$50,000, divided into 10,000,000 ordinary shares of a nominal or par value of US$0.005 each; and
(C) *the Company be authorized to round up
any fractional shares resulting from the Share Consolidation such that each shareholder will be entitled to receive one ordinary
share in lieu of any fractional share that would have resulted from the Share Consolidation.
* The Company issued an additional 5,325 Ordinary
Shares resulting from the rounding up of the fractional shares.
On August 2, 2022, in accordance with the above
resolutions, the board of directors of the Company passed a resolution to set August 10, 2022 as the effective date of the Share Consolidation,
and accordingly, the Share Consolidation was effected on August 10, 2022.
114
B. Memorandum and Articles of Association
The following are summaries of material provisions
of our amended and restated memorandum and articles of association and the Companies Act insofar as they relate to the material terms
of our Ordinary Shares.
Ordinary Shares
All of our issued and outstanding Ordinary Shares
are fully paid and non-assessable. Our Ordinary Shares are issued in registered form, and are issued when registered in our register of
members. Unless the board of directors determine otherwise, each holder of our Ordinary Shares will not receive a certificate in respect
of such Ordinary Shares. Our shareholders who are non-residents of the Cayman Islands may freely hold and vote their Ordinary Shares.
We may not issue shares or warrants to bearer.
Our authorized share capital is $50,000 divided
into 10,000,000 Ordinary Shares, par value $0.005 per share. Subject to the provisions of the Cayman Companies Act and our articles regarding
redemption and purchase of the shares, the directors have general and unconditional authority to allot (with or without confirming rights
of renunciation), grant options over or otherwise deal with any unissued shares to such persons, at such times and on such terms and conditions
as they may decide. Such authority could be exercised by the directors to allot shares which carry rights and privileges that are preferential
to the rights attaching to Ordinary Shares. No share may be issued at a discount except in accordance with the provisions of the Cayman
Companies Act. 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.
Dividends
Subject to the provisions of the Cayman Companies
Act and any rights attaching to any class or classes of shares under and in accordance with the articles:
(a)
the directors may declare dividends or distributions out of our funds which are lawfully available for that purpose; and
(b)
our shareholders may, by ordinary resolution, declare dividends but no such dividend shall exceed the amount recommended by the directors
115
Subject to the requirements of the Cayman Companies
Act regarding the application of a company's share premium account and with the sanction of an ordinary resolution, dividends may
also be declared and paid out of any share premium account. The directors when paying dividends to shareholders may make such payment
either in cash or in specie.
Unless provided by the rights attached to a share,
no dividend shall bear interest.
Voting Rights
Subject to any rights or restrictions as to voting
attached to any shares, unless any share carries special voting rights, on a show of hands every shareholder who is present in person
and every person representing a shareholder by proxy shall have one vote per Ordinary Share. On a poll, every shareholder who is present
in person and every person representing a shareholder by proxy shall have one vote for each share of which he or the person represented
by proxy is the holder. In addition, all shareholders holding shares of a particular class are entitled to vote at a meeting of the holders
of that class of shares. Votes may be given either personally or by proxy.
Variation of Rights of Shares
Whenever our capital is divided into different
classes of shares, the rights attaching to any class of share (unless otherwise provided by the terms of issue of the shares of that class)
may be varied either with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or with
the sanction of a resolution passed by a majority of not less than two-thirds of the holders of shares of the class present in person
or by proxy at a separate general meeting of the holders of shares of that class.
Unless the terms on which a class of shares was
issued state otherwise, the rights conferred on the shareholder holding shares of any class shall not be deemed to be varied by the creation
or issue of further shares ranking
pari passu
with the existing shares of that class.
Alteration of Share Capital
Subject to the Cayman Companies Act, our shareholders
may, by ordinary resolution:
(a)
increase our share capital by new shares of the amount fixed by that ordinary resolution and with the attached rights, priorities and privileges set out in that ordinary resolution;
(b)
consolidate and divide all or any of our share capital into shares of larger amount than our existing shares;
(c)
increase our share capital by new shares of the amount fixed by that ordinary resolution and with the attached rights, priorities and privileges set out in that ordinary resolution;
(b)
sub-divide our shares or any of them into shares of an amount smaller than that fixed, so, however, that in the sub-division, 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;
(e)
cancel shares which, at the date of the passing of that ordinary resolution, have not been taken or agreed to be taken by any person and diminish the amount of our share capital by the amount of the shares so cancelled or, in the case of shares without nominal par value, diminish the number of shares into which our capital is divided.;
Subject to the Cayman Companies Act and to any
rights for the time being conferred on the shareholders holding a particular class of shares, our shareholders may, by special resolution,
reduce its share capital in any way.
Calls on Shares and Forfeiture
Subject to the terms of allotment, the directors
may make calls on the shareholders in respect of any monies unpaid on their shares including any premium and each shareholder shall (subject
to receiving at least 14 clear days' notice specifying when and where payment is to be made), pay to us the amount called on his
shares. Shareholders registered as the joint holders of a share shall be jointly and severally liable to pay all calls in respect of the
share. If a call remains unpaid after it has become due and payable the person from whom it is due and payable shall pay interest on the
amount unpaid from the day it became due and payable until it is paid at the rate fixed by the terms of allotment of the share or in the
notice of the call or if no rate is fixed, at the rate of ten percent per annum. The directors may, at their discretion, waive payment
of the interest wholly or in part.
116
We have a first and paramount lien on all shares
(whether fully paid up or not) registered in the name of a shareholder (whether solely or jointly with others). The lien is for all monies
payable to us by the shareholder or the shareholder's estate:
(a)
either alone or jointly with any other person, whether or not that other person is a shareholder; and
(b)
whether or not those monies are presently payable.
At any time the directors may declare any share
to be wholly or partly exempt from the lien on shares provisions of the articles.
We may sell, in such manner as the directors may
determine, any share on which the sum in respect of which the lien exists is presently payable, if due notice that such sum is payable
has been given (as prescribed by the articles) and, within 14 days of the date on which the notice is deemed to be given under the articles,
such notice has not been complied with.
Unclaimed Dividend
A dividend that remains unclaimed for a period
of six years after it became due for payment shall be forfeited to, and shall cease to remain owing by, the company.
Forfeiture or Surrender of Shares
If a shareholder fails to pay any capital call,
the directors may give to such shareholder not less than 14 clear days' notice requiring payment and specifying the amount unpaid
including any interest which may have accrued, any expenses which have been incurred by us due to that person's default and the
place where payment is to be made. The notice shall also contain a warning that if the notice is not complied with, the shares in respect
of which the call is made will be liable to be forfeited.
If such notice is not complied with, the directors
may, before the payment required by the notice has been received, resolve that any share the subject of that notice be forfeited (which
forfeiture shall include all dividends or other monies payable in respect of the forfeited share and not paid before such forfeiture).
A forfeited share may be sold, re-allotted or
otherwise disposed of on such terms and in such manner as the directors determine and at any time before a sale, re-allotment or disposition
the forfeiture may be cancelled on such terms as the directors think fit.
A person whose shares have been forfeited shall
cease to be a shareholder in respect of the forfeited shares, but shall, notwithstanding such forfeiture, remain liable to pay to us all
monies which at the date of forfeiture were payable by him to us in respect of the shares, together with all expenses and interest from
the date of forfeiture or surrender until payment, but his liability shall cease if and when we receive payment in full of the unpaid
amount.
A declaration, whether statutory or under oath,
made by a director or the secretary shall be conclusive evidence that the person making the declaration is our director or secretary and
that the particular shares have been forfeited or surrendered on a particular date.
Subject to the execution of an instrument of transfer,
if necessary, the declaration shall constitute good title to the shares.
117
Redemption and Purchase of Own Shares
Subject to the Cayman Companies Act and any rights
for the time being conferred on the shareholders holding a particular class of shares, we may by action of our directors:
(a)
issue shares that are to be redeemed or liable to be redeemed, at our option or the shareholder holding those redeemable shares, on the terms and in the manner our directors determine before the issue of those shares;
(b)
with the consent by special resolution of the shareholders holding shares of a particular class, vary the rights attaching to that class of shares so as to provide that those shares are to be redeemed or are liable to be redeemed at our option on the terms and in the manner which the directors determine at the time of such variation; and.
(c)
purchase all or any of our own shares of any class including any redeemable shares on the terms and in the manner which the directors determine at the time of such purchase.
We may make a payment in respect of the redemption
or purchase of its own shares in any manner authorized by the Cayman Companies Act, including out of any combination of capital, our profits
and the proceeds of a fresh issue of shares.
When making a payment in respect of the redemption
or purchase of shares, the directors may make the payment in cash or in specie (or partly in one and partly in the other) if so authorized
by the terms of the allotment of those shares or by the terms applying to those shares, or otherwise by agreement with the shareholder
holding those shares.
Transfer of Shares
Provided that a transfer of Ordinary Shares complies
with applicable rules of the Nasdaq Capital Market, a shareholder may transfer Ordinary Shares to another person by completing an instrument
of transfer in a common form or in a form prescribed by Nasdaq or in any other form approved by the directors, executed:
(a)
where the Ordinary Shares are fully paid, by or on behalf of that shareholder; and
(b)
where the Ordinary Shares are partly paid, by or on behalf of that shareholder and the transferee.
The transferor shall be deemed to remain the holder
of an Ordinary Share until the name of the transferee is entered into the register of members of the Company.
Where the Ordinary Shares in question are not
listed on or subject to the rules of the Nasdaq Capital Market, our board of directors may, in its absolute discretion, decline to register
any transfer of any Ordinary Share that has not been fully paid up or is subject to a company lien. Our board of directors may also decline
to register any transfer of such Ordinary Share unless:
(a)
the instrument of transfer is lodged with us, accompanied by the certificate for the Ordinary Shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer;
(b)
the instrument of transfer is in respect of only one class of Ordinary Shares;
(c)
the instrument of transfer is properly stamped, if required;
(d)
the Ordinary Share transferred is fully paid and free of any lien in favor of us;
(e)
any fee related to the transfer has been paid to us; and
(f)
the transfer is not more than four joint holders.
118
If our directors refuse to register a transfer,
they are required, within one month after the date on which the instrument of transfer was lodged, to send to each of the transferor and
the transferee notice of such refusal.
The registration of transfers may, on 14 calendar
days' notice being given by advertisement in such one or more newspapers or by electronic means, be suspended and our register of
members closed at such times and for such periods as our board of directors may from time to time determine. The registration of transfers,
however, may not be suspended, and the register may not be closed, for more than 30 calendar days in any year.
Inspection of Books and Records
Holders of our Ordinary Shares will have no general
right under the Cayman Companies Act to inspect or obtain copies of our register of members or our corporate records.
General Meetings
As a Cayman Islands exempted company, we are not
obligated by the Cayman Companies Act to call shareholders' annual general meetings; accordingly, we may, but shall not be obliged
to, in each year hold a general meeting as an annual general meeting. Any annual general meeting held shall be held at such time and place
as may be determined by our board of directors. All general meetings other than annual general meetings shall be called extraordinary
general meetings.
The directors may convene general meetings whenever
they think fit. General meetings shall also be convened on the written requisition of one or more of the shareholders entitled to attend
and vote at our general meetings who (together) hold not less than ten percent of the rights to vote at such general meeting in accordance
with the notice provisions in the articles, specifying the purpose of the meeting and signed by each of the shareholders making the requisition.
If the directors do not convene such meeting for a date not later than 21 clear days' after the date of receipt of the written requisition,
those shareholders who requested the meeting may convene the general meeting themselves within three months after the end of such period
of 21 clear days in which case reasonable expenses incurred by them as a result of the directors failing to convene a meeting shall be
reimbursed by us.
At least 14 days' notice of an extraordinary
general meeting and 21 days' notice of an annual general meeting shall be given to shareholders entitled to attend and vote at such
meeting. The notice shall specify the place, the day and the hour of the meeting and the general nature of that business. In addition,
if a resolution is proposed as a special resolution, the text of that resolution shall be given to all shareholders. Notice of every general
meeting shall also be given to the directors and our auditors.
Subject to the Cayman Companies Act and with the
consent of the shareholders who, individually or collectively, hold at least 90 percent of the voting rights of all those who have a right
to vote at a general meeting, a general meeting may be convened on shorter notice.
A quorum shall consist of the presence (whether
in person or represented by proxy) of one or more shareholders holding shares that represent not less than one-third of the outstanding
shares carrying the right to vote at such general meeting.
If, within 15 minutes from the time appointed
for the general meeting, or at any time during the meeting, a quorum is not present, the meeting, if convened upon the requisition of
shareholders, shall be cancelled. In any other case it shall stand adjourned to the same time and place seven days or to such other time
or place as is determined by the directors.
The chairman may, with the consent of a meeting
at which a quorum is present, adjourn the meeting. When a meeting is adjourned for seven days or more, notice of the adjourned meeting
shall be given in accordance with the articles.
119
At any general meeting a resolution put to the
vote of the meeting shall be decided on a show of hands, unless a poll is (before, or on, the declaration of the result of the show of
hands) demanded by the chairman of the meeting or by at least two shareholders having the right to vote on the resolutions or one or more
shareholders present who together hold not less than ten percent of the voting rights of all those who are entitled to vote on the resolution.
Unless a poll is so demanded, a declaration by the chairman as to the result of a resolution and an entry to that effect in the minutes
of the meeting, shall be conclusive evidence of the outcome of a show of hands, without proof of the number or proportion of the votes
recorded in favor of, or against, that resolution.
If a poll is duly demanded it shall be taken in
such manner as the chairman directs and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was
demanded.
In the case of an equality of votes, whether on
a show of hands or on a poll, the chairman of the meeting at which the show of hands takes place or at which the poll is demanded, shall
not be entitled to a second or casting vote.
Directors
We may by ordinary resolution, from time to time,
fix the maximum and minimum number of directors to be appointed. Under the Articles, we are required to have a minimum of one director
and the maximum number of Directors shall be unlimited.
A director may be appointed by ordinary resolution
or by the directors. Any appointment may be to fill a vacancy or as an additional director.
Unless the remuneration of the directors is determined
by the shareholders by ordinary resolution, the directors shall be entitled to such remuneration as the directors may determine.
The shareholding qualification for directors may
be fixed by our shareholders by ordinary resolution and unless and until so fixed no share qualification shall be required.
Unless removed or re-appointed, each director
shall be appointed for a term expiring at the next-following annual general meeting, if one is held. At any annual general meeting held,
our directors will be elected by an ordinary resolution of our shareholders. At each annual general meeting, each director so elected
shall hold office for a one-year term and until the election of their respective successors in office or removed.
A director may be removed by ordinary resolution.
A director may at any time resign or retire from
office by giving us notice in writing. Unless the notice specifies a different date, the director shall be deemed to have resigned on
the date that the notice is delivered to us.
Subject to the provisions of the articles, the
office of a director may be terminated forthwith if:
(a)
he is prohibited by the law of the Cayman Islands from acting as a director;
(b)
he is made bankrupt or makes an arrangement or composition with his creditors generally;
(c)
he resigns his office by notice to us;
(d)
he only held office as a director for a fixed term and such term expires;
(e)
in the opinion of a registered medical practitioner by whom he is being treated he becomes physically or mentally incapable of acting as a director;
120
(f)
he is given notice by the majority of the other directors (not being less than two in number) to vacate office (without prejudice to any claim for damages for breach of any agreement relating to the provision of the services of such director);
(g)
he is made subject to any law relating to mental health or incompetence, whether by court order or otherwise; or
(h)
without the consent of the other directors, he is absent from meetings of directors for continuous period of six months.
Each of the compensation committee and the nominating
and corporate governance committee shall consist of at least three directors and the majority of the committee members shall be independent
within the meaning of Section 5605(a)(2) of the Nasdaq listing rules. The audit committee shall consist of at least three directors, all
of whom shall be independent within the meaning of Section 5605(a)(2) of the Nasdaq listing rules and will meet the criteria for independence
set forth in Rule 10A-3 or Rule 10C-1 of the Exchange Act.
Powers and Duties of Directors
Subject to the provisions of the Cayman Companies
Act and our memorandum and articles of association, our business shall be managed by the directors, who may exercise all our powers. No
prior act of the directors shall be invalidated by any subsequent alteration of our memorandum or articles of association. To the extent
allowed by the Cayman Companies Act, however, shareholders may by special resolution validate any prior or future act of the directors
which would otherwise be in breach of their duties.
The directors may delegate any of their powers
to any committee consisting of one or more persons who need not be shareholders and may include non-directors so long as the majority
of those persons are directors; 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. Our board of directors have established an audit committee, compensation committee, and nomination
and corporate governance committee.
The board of directors may establish any local
or divisional board of directors or agency and delegate to it its powers and authorities (with power to sub-delegate) for managing any
of our affairs whether in the Cayman Islands or elsewhere and may appoint any persons to be members of a local or divisional board of
directors, or to be managers or agents, and may fix their remuneration.
The directors may from time to time and at any
time by power of attorney or in any other manner they determine appoint any person, either generally or in respect of any specific matter,
to be our agent with or without authority for that person to delegate all or any of that person's powers.
The directors may from time to time and at any
time by power of attorney or in any other manner they determine appoint any person, whether nominated directly or indirectly by the directors,
to be our attorney or our authorized signatory and for such period and subject to such conditions as they may think fit. The powers, authorities
and discretions, however, must not exceed those vested in, or exercisable, by the directors under the articles.
The board of directors may remove any person so
appointed and may revoke or vary the delegation.
The directors may exercise all of our powers to
borrow money and to mortgage or charge its undertaking, property and assets both present and future and uncalled capital or any part thereof,
to issue debentures and other securities whether outright or as collateral security for any debt, liability or obligation of ours or our
parent undertaking (if any) or any subsidiary undertaking of us or of any third party.
121
A director shall not, as a director, vote in respect
of any contract, transaction, arrangement or proposal in which he has an interest which (together with any interest of any person connected
with him) is a material interest (otherwise than by virtue of his interests, direct or indirect, in shares or debentures or other securities
of, or otherwise in or through, us) and if he shall do so his vote shall not be counted, nor in relation thereto shall he be counted in
the quorum present at the meeting, but (in the absence of some other material interest than is mentioned below) none of these prohibitions
shall apply to:
(a)
the giving of any security, guarantee or indemnity in respect of:
(i)
money lent or obligations incurred by him or by any other person for our benefit or any of our subsidiaries; or
(ii)
a debt or obligation of ours or any of our subsidiaries for which the director himself has assumed responsibility in whole or in part and whether alone or jointly with others under a guarantee or indemnity or by the giving of security;
(b)
where we or any of our subsidiaries is offering securities in which offer the director is or may be entitled to participate as a holder of securities or in the underwriting or sub-underwriting of which the director is to or may participate;
(c)
any contract, transaction, arrangement or proposal affecting any other body corporate in which he is interested, directly or indirectly and whether as an officer, shareholder, creditor or otherwise howsoever, provided that he (together with persons connected with him) does not to his knowledge hold an interest representing one percent or more of any class of the equity share capital of such body corporate (or of any third body corporate through which his interest is derived) or of the voting rights available to shareholders of the relevant body corporate;
(d)
any act or thing done or to be done in respect of any arrangement for the benefit of the employees of us or any of our subsidiaries under which he is not accorded as a director any privilege or advantage not generally accorded to the employees to whom such arrangement relates; or
(e)
any matter connected with the purchase or maintenance for any director of insurance against any liability or (to the extent permitted by the Cayman Companies Act) indemnities in favor of directors, the funding of expenditure by one or more directors in defending proceedings against him or them or the doing of anything to enable such director or directors to avoid incurring such expenditure.
A director may, as a director, vote (and be counted
in the quorum) in respect of any contract, transaction, arrangement or proposal in which he has an interest which is not a material interest
or as described above.
Liquidation Rights
If we are wound up, the shareholders may, subject
to the articles and any other sanction required by the Cayman Companies Act, pass a special resolution allowing the liquidator to do either
or both of the following:
(a)
to divide in specie among the shareholders the whole or any part of our assets and, for that purpose, to value any assets and to determine how the division shall be carried out as between the shareholders or different classes of shareholders; and
(b)
to vest the whole or any part of the assets in trustees for the benefit of shareholders and those liable to contribute to the winding up.
The directors have the authority to present a
petition for our winding up to the Grand Court of the Cayman Islands on our behalf without the sanction of a resolution passed at a general
meeting.
C. Exchange Controls
See "Item 4. Information on the Company—B.
Business Overview—Regulations— Regulations on Foreign Exchange
D. Taxation
The following discussion of the material Cayman
Islands, PRC and United States federal income tax consequences of an investment in our Ordinary Shares is based upon laws and relevant
interpretations thereof in effect as of the date of this annual report on Form 20-F, all of which are subject to change. This discussion
does not deal with all possible tax consequences relating to an investment in our Ordinary Shares, such as the tax consequences under
state, local and other tax laws. Accordingly, each investor should consult its own tax advisor regarding the tax consequences of an investment
in our Ordinary Shares applicable under its particular circumstances.
122
Cayman Islands Cayman Islands Taxation
We are incorporated in the Cayman Islands. Under
the current law of the Cayman Islands, we are not subject to income or capital gains tax. In addition, dividend payments are not subject
to withholding tax in the Cayman Islands.
PRC Taxation
According to the EIT Law, which was promulgated
by the SCNPC on March 16, 2007, became effective on January 1, 2008, and was then amended on February 24, 2017, and the Implementation
Rules of the EIT Law, which were promulgated by the State Council on December 6, 2007, and became effective on January 1, 2008, enterprises
are divided into resident enterprises and non-resident enterprises. Resident enterprises pay enterprise income tax on their incomes obtained
in and outside the PRC at the rate of 25%. Non-resident enterprises setting up institutions in the PRC pay enterprise income tax on the
incomes obtained by such institutions in and outside the PRC at the rate of 25%. Non-resident enterprises with no institutions in the
PRC, and non-resident enterprises with income having no substantial connection with their institutions in the PRC, pay enterprise income
tax on their income obtained in the PRC at a reduced rate of 10%.
We are a holding company incorporated in the Cayman
Islands and we gain substantial income by way of dividends paid to us from the PRC Operating Entities. The EIT Law and its implementation
rules provide that China-sourced income of foreign enterprises, such as dividends paid by a PRC subsidiary to its equity holders that
are non-resident enterprises, will normally be subject to PRC withholding tax at a rate of 10%, unless any such foreign investor's
jurisdiction of incorporation has a tax treaty with China that provides for a preferential tax rate or a tax exemption
Under the EIT Law, an enterprise established
outside of China with a "de facto management body" within China is considered a "resident enterprise," which means
that it is treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. Although the implementation rules of
the EIT Law define "de facto management body" as a managing body that actually, comprehensively manage and control the production
and operation, staff, accounting, property, and other aspects of an enterprise, the only official guidance for this definition currently
available is set forth in SAT Notice 82, which provides guidance on the determination of the tax residence status of a Chinese-controlled
offshore incorporated enterprise, defined as an enterprise that is incorporated under the laws of a foreign country or territory and that
has a PRC enterprise or enterprise group as its primary controlling shareholder. Although Sentage Holdings does not have a PRC enterprise
or enterprise group as our primary controlling shareholder and is therefore not a Chinese-controlled offshore incorporated enterprise
within the meaning of SAT Notice 82, in the absence of guidance specifically applicable to us, we have applied the guidance set forth
in SAT Notice 82 to evaluate the tax residence status of Sentage Holdings and its subsidiaries organized outside the PRC.
According to SAT Notice 82, a Chinese-controlled
offshore incorporated enterprise will be regarded as a PRC tax resident by virtue of having a "de facto management body" in
China and will be subject to PRC enterprise income tax on its worldwide income only if all of the following criteria are met: (i) the
places where senior management and senior management departments that are responsible for daily production, operation and management of
the enterprise perform their duties are mainly located within the territory of China; (ii) financial decisions (such as money borrowing,
lending, financing and financial risk management) and personnel decisions (such as appointment, dismissal and salary and wages) are decided
or need to be decided by organizations or persons located within the territory of China; (iii) main property, accounting books, corporate
seal, the board of directors and files of the minutes of shareholders' meetings of the enterprise are located or preserved within
the territory of China; and (iv) one half (or more) of the directors or senior management staff having the right to vote habitually reside
within the territory of China.
We believe that we do not meet some of the conditions
outlined in the immediately preceding paragraph. For example, as a holding company, the key assets and records of Sentage Holdings, including
the resolutions and meeting minutes of our board of directors and the resolutions and meeting minutes of our shareholders, are located
and maintained outside the PRC. In addition, we are not aware of any offshore holding companies with a corporate structure similar to
ours that has been deemed a PRC "resident enterprise" by the PRC tax authorities. Accordingly, we believe that Sentage Holdings
and its offshore subsidiaries should not be treated as a "resident enterprise" for PRC tax purposes if the criteria for "de
facto management body" as set forth in SAT Notice 82 were deemed applicable to us. However, as the tax residency status of an enterprise
is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de
facto management body" as applicable to our offshore entities, we will continue to monitor our tax status.
123
The implementation rules of the EIT Law provide
that, (i) if the enterprise that distributes dividends is domiciled in the PRC or (ii) if gains are realized from transferring equity
interests of enterprises domiciled in the PRC, then such dividends or gains are treated as China-sourced income. It is not clear how "domicile"
may be interpreted under the EIT Law, and it may be interpreted as the jurisdiction where the enterprise is a tax resident. Therefore,
if we are considered as a PRC tax resident enterprise for PRC tax purposes, any dividends we pay to our overseas shareholders which are
non-resident enterprises as well as gains realized by such shareholders from the transfer of our shares may be regarded as China-sourced
income and as a result become subject to PRC withholding tax at a rate of up to 10%. Dentons, our PRC counsel, is unable to provide a
"will" opinion because it believes that it is more likely than not that we and our offshore subsidiaries would be treated
as non-resident enterprises for PRC tax purposes because we do not meet some of the conditions outlined in SAT Notice 82. In addition,
Dentons is not aware of any offshore holding companies with a corporate structure similar to ours that has been deemed a PRC "resident
enterprise" by the PRC tax authorities as of the date of this annual report. Therefore, Dentons believes that it is possible but
highly unlikely that the income received by our overseas shareholders will be regarded as China-sourced income.
See "Item 3. Key Information—D. Risk
Factors—Risks Related to Doing Business in China—
Under the PRC Enterprise Income Tax Law, we may be classified as a PRC
"resident enterprise" for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences
to us and our non-PRC shareholders and have a material adverse effect on our results of operations and the value of your investment
."
Currently, as resident enterprises in the PRC,
the Sentage Operating Companies are subject to the enterprise income tax at the rate of 25%. The EIT is calculated based on the entity's
global income as determined under PRC tax laws and accounting standards. If the PRC tax authorities determine that Sentage Holdings is
a PRC resident enterprise for enterprise income tax purposes, we may be required to withhold a 10% withholding tax from dividends we pay
to our shareholders that are non-resident enterprises. In addition, non-resident enterprise shareholders may be subject to a 10% PRC withholding
tax on gains realized on the sale or other disposition of our Ordinary Shares, if such income is treated as sourced from within the PRC.
It is unclear whether our non-PRC individual shareholders would be subject to any PRC tax on dividends or gains obtained by such non-PRC
individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to dividends or gains
realized by non-PRC individuals, it would generally apply at a rate of 20% unless a reduced rate is available under an applicable tax
treaty. However, it is also unclear whether our non-PRC shareholders would be able to claim the benefits of any tax treaties between their
country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. There is no guidance from the PRC
government to indicate whether or not any tax treaties between the PRC and other countries would apply in circumstances where a non-PRC
company was deemed to be a PRC tax resident, and thus there is no basis for expecting how tax treaty between the PRC and other countries
may impact non-resident enterprises.
Hong Kong Taxation
Entities incorporated in Hong Kong are subject
to profits tax in Hong Kong at the rate of 16.5%.
United States Federal Income Tax Considerations
The following does not address the tax consequences
to any particular investor or to persons in special tax situations such as:
●
banks;
●
financial institutions;
●
insurance companies;
●
regulated investment companies;
●
real estate investment trusts;
124
●
broker-dealers;
●
persons that elect to mark their securities to market;
●
U.S. expatriates or former long-term residents of the U.S.;
●
governments or agencies or instrumentalities thereof;
●
tax-exempt entities;
●
persons liable for alternative minimum tax;
●
persons holding our Ordinary Shares as part of a straddle, hedging, conversion or integrated transaction;
●
persons that actually or constructively own 10% or more of our voting power or value (including by reason of owning our Ordinary Shares);
●
persons who acquired our Ordinary Shares pursuant to the exercise of any employee share option or otherwise as compensation;
●
persons holding our Ordinary Shares through partnerships or other pass-through entities;
●
beneficiaries of a Trust holding our Ordinary Shares; or
●
persons holding our Ordinary Shares through a Trust.
Material Tax Consequences Applicable to
U.S. Holders of Our Ordinary Shares
The following sets forth the material U.S. federal
income tax consequences related to the ownership and disposition of our Ordinary Shares. It is directed to U.S. Holders (as defined below)
of our Ordinary Shares and is based upon laws and relevant interpretations thereof in effect as of the date of this annual report, all
of which are subject to change. This description does not deal with all possible tax consequences relating to ownership and disposition
of our Ordinary Shares or U.S. tax laws, other than the U.S. federal income tax laws, such as the tax consequences under non-U.S. tax
laws, state, local and other tax laws.
The brief description below of the U.S. federal
income tax consequences to "U.S. Holders" will apply to you if you are a beneficial owner of Ordinary Share and you are, for
U.S. federal income tax purposes,
●
an individual who is a citizen or resident of the United States;
●
a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the United States, any state thereof or the District of Columbia;
●
an estate whose income is subject to U.S. federal income taxation regardless of its source; or
●
a trust that (1) is subject to the primary supervision of a court within the United States and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.
Taxation of Dividends and Other Distributions
on our Ordinary Shares
Subject to the PFIC (defined below) rules discussed
below, the gross amount of distributions made by us to you with respect to the Ordinary Shares (including the amount of any taxes withheld
therefrom) will generally be includable in your gross income as dividend income on the date of receipt by you, but only to the extent
that the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles).
With respect to corporate U.S. Holders, the dividends will not be eligible for the dividends-received deduction allowed to corporations
in respect of dividends received from other U.S. corporations.
125
With respect to non-corporate U.S. Holders, including
individual U.S. Holders, dividends will be taxed at the lower capital gains rate applicable to qualified dividend income, provided that
(1) the Ordinary Shares are readily tradable on an established securities market in the United States, or we are eligible for the benefits
of an approved qualifying income tax treaty with the United States that includes an exchange of information program, (2) we are not a
PFIC (defined below) for either our taxable year in which the dividend is paid or the preceding taxable year, and (3) certain holding
period requirements are met. Because there is no income tax treaty between the United States and the Cayman Islands, clause (1) above
can be satisfied only if the Ordinary Shares are readily tradable on an established securities market in the United States. Under U.S.
Internal Revenue Service authority, Ordinary Shares are considered for purpose of clause (1) above to be readily tradable on an established
securities market in the United States if they are listed on certain exchanges, which presently includes the New York Stock Exchange and
the Nasdaq Stock Market. You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid with
respect to our Ordinary Shares, including the effects of any change in law after the date of this annual report.
Dividends will constitute foreign source income
for foreign tax credit limitation purposes. If the dividends are taxed as qualified dividend income (as discussed above), the amount of
the dividend taken into account for purposes of calculating the foreign tax credit limitation will be limited to the gross amount of the
dividend, multiplied by the reduced rate divided by the highest rate of tax normally applicable to dividends. The limitation on foreign
taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends distributed
by us with respect to our Ordinary Shares will constitute "passive category income" but could, in the case of certain U.S.
Holders, constitute "general category income."
To the extent that the amount of the distribution
exceeds our current and accumulated earnings and profits (as determined under U.S. federal income tax principles), it will be treated
first as a tax-free return of your tax basis in your Ordinary Shares, and to the extent the amount of the distribution exceeds your tax
basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings and profits under U.S. federal income tax
principles. Therefore, a U.S. Holder should expect that a distribution will be treated as a dividend even if that distribution would otherwise
be treated as a non-taxable return of capital or as capital gain under the rules described above.
Taxation of Dispositions of Ordinary Shares
Subject to the passive foreign investment company
rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other taxable disposition of a share equal to
the difference between the amount realized (in U.S. dollars) for the share and your tax basis (in U.S. dollars) in the Ordinary Shares.
The gain or loss will be capital gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held
the Ordinary Shares for more than one year, you will generally be eligible for reduced tax rates. The deductibility of capital losses
is subject to limitations. Any such gain or loss that you recognize will generally be treated as United States source income or loss for
foreign tax credit limitation purposes which will generally limit the availability of foreign tax credits.
Passive Foreign Investment Company ("PFIC")
A non-U.S. corporation is considered a PFIC, as
defined in Section 1297(a) of the U.S. Internal Revenue Code, for any taxable year if either:
●
at least 75% of its gross income for such taxable year is passive income; or
●
at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income (the "asset test").
Passive income generally includes dividends, interest,
rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition
of passive assets. We will be treated as owning our proportionate share of the assets and earning our proportionate share of the income
of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the stock. In determining the value and composition
of our assets for purposes of the PFIC asset test, the value of our assets must be determined based on the market value of our Ordinary
Shares from time to time, which could cause the value of our non-passive assets to be less than 50% of the value of all of our assets
on any particular quarterly testing date for purposes of the asset test.
126
Based on our operations and the composition of
our assets we do not expect to be treated as a PFIC under the current PFIC rules. We must make a separate determination each year
as to whether we are a PFIC, however, and there can be no assurance with respect to our status as a PFIC for our current taxable year
or any future taxable year. Depending on the amount of assets held for the production of passive income, it is possible that, for
our current taxable year or for any subsequent taxable year, more than 50% of our assets may be assets held for the production
of passive income. We will make this determination following the end of any particular tax year. In addition, because the value of
our assets for purposes of the asset test will generally be determined based on the market price of our Ordinary Shares, our PFIC status
will depend in large part on the market price of our Ordinary Shares. Accordingly, fluctuations in the market price of the Ordinary Shares
may cause us to become a PFIC. In addition, the application of the PFIC rules is subject to uncertainty in several respects and the
composition of our income and assets will be affected by how, and how quickly, we spend our liquid assets. We are under no obligation
to take steps to reduce the risk of our being classified as a PFIC, and as stated above, the determination of the value of our assets
will depend upon material facts (including the market price of our Ordinary Shares from time to time) that may not be within our control.
If we are a PFIC for any year during which you hold Ordinary Shares, we will continue to be treated as a PFIC for all succeeding years
during which you hold Ordinary Shares. If we cease to be a PFIC and you did not previously make a timely "mark-to-market"
election as described below, however, you may avoid some of the adverse effects of the PFIC regime by making a "purging election"
(as described below) with respect to the Ordinary Shares.
If we are a PFIC for your taxable year(s) during
which you hold Ordinary Shares, you will be subject to special tax rules with respect to any "excess distribution" that you
receive and any gain you realize from a sale or other disposition (including a pledge) of the Ordinary Shares, unless you make a "mark-to-market"
election as discussed below. Distributions you receive in a taxable year that are greater than 125% of the average annual distributions
you received during the shorter of the three preceding taxable years or your holding period for the Ordinary Shares will be treated as
an excess distribution. Under these special tax rules:
●
the excess distribution or gain will be allocated ratably over your holding period for the Ordinary Shares;
●
the amount allocated to your current taxable year, and any amount allocated to any of your taxable year(s) prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and
●
the amount allocated to each of your other taxable year(s) will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.
The tax liability for amounts allocated to years
prior to the year of disposition or "excess distribution" cannot be offset by any net operating losses for such years, and
gains (but not losses) realized on the sale of the Ordinary Shares cannot be treated as capital, even if you hold the Ordinary Shares
as capital assets.
A U.S. Holder of "marketable stock"
(as defined below) in a PFIC may make a mark-to-market election under Section 1296 of the US Internal Revenue Code for such stock to elect
out of the tax treatment discussed above. If you make a mark-to-market election for first taxable year which you hold (or are deemed to
hold) Ordinary Shares and for which we are determined to be a PFIC, you will include in your income each year an amount equal to the excess,
if any, of the fair market value of the Ordinary Shares as of the close of such taxable year over your adjusted basis in such Ordinary
Shares, which excess will be treated as ordinary income and not capital gain. You are allowed an ordinary loss for the excess, if any,
of the adjusted basis of the Ordinary Shares over their fair market value as of the close of the taxable year. Such ordinary loss, however,
is allowable only to the extent of any net mark-to-market gains on the Ordinary Shares included in your income for prior taxable years.
Amounts included in your income under a mark-to-market election, as well as gain on the actual sale or other disposition of the Ordinary
Shares, are treated as ordinary income. Ordinary loss treatment also applies to any loss realized on the actual sale or disposition of
the Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-market gains previously included for such
Ordinary Shares. Your basis in the Ordinary Shares will be adjusted to reflect any such income or loss amounts. If you make a valid mark-to-market
election, the tax rules that apply to distributions by corporations which are not PFICs would apply to distributions by us, except that
the lower applicable capital gains rate for qualified dividend income discussed above under "— Taxation of Dividends and Other
Distributions on our Ordinary Shares" generally would not apply.
127
The mark-to-market election is available only
for "marketable stock," which is stock that is traded in other than de minimis quantities on at least 15 days during each
calendar quarter ("regularly traded") on a qualified exchange or other market (as defined in applicable U.S. Treasury regulations),
including the Nasdaq Capital Market. If the Ordinary Shares are regularly traded on the Nasdaq Capital Market and if you are a holder
of Ordinary Shares, the mark-to-market election would be available to you were we to be or become a PFIC.
Alternatively, a U.S. Holder of stock in a PFIC
may make a "qualified electing fund" election under Section 1295(b) of the US Internal Revenue Code with respect to such PFIC
to elect out of the tax treatment discussed above. A U.S. Holder who makes a valid qualified electing fund election with respect to a
PFIC will generally include in gross income for a taxable year such holder's pro rata share of the corporation's earnings
and profits for the taxable year. However, the qualified electing fund election is available only if such PFIC provides such U.S. Holder
with certain information regarding its earnings and profits as required under applicable U.S. Treasury regulations. We do not currently
intend to prepare or provide the information that would enable you to make a qualified electing fund election. If you hold Ordinary Shares
in any taxable year in which we are a PFIC, you will be required to file U.S. Internal Revenue Service Form 8621 in each such year and
provide certain annual information regarding such Ordinary Shares, including regarding distributions received on the Ordinary Shares and
any gain realized on the disposition of the Ordinary Shares.
If you do not make a timely "mark-to-market"
election (as described above), and if we were a PFIC at any time during the period you hold our Ordinary Shares, then such Ordinary Shares
will continue to be treated as stock of a PFIC with respect to you even if we cease to be a PFIC in a future year, unless you make a "purging
election" for the year we cease to be a PFIC. A "purging election" creates a deemed sale of such Ordinary Shares at
their fair market value on the last day of the last year in which we are treated as a PFIC. The gain recognized by the purging election
will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above. As a result
of the purging election, you will have a new basis (equal to the fair market value of the Ordinary Shares on the last day of the last
year in which we are treated as a PFIC) and holding period (which new holding period will begin the day after such last day) in your Ordinary
Shares for tax purposes.
IRC Section 1014(a) provides for a step-up
in basis to the fair market value for our Ordinary Shares when inherited from a decedent that was previously a holder of our Ordinary
Shares. However, if we are determined to be a PFIC and a decedent that was a U.S. Holder did not make either a timely qualified electing
fund election for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) our Ordinary Shares, or
a mark-to-market election and ownership of those Ordinary Shares are inherited, a special provision in IRC Section 1291(e) provides
that the new U.S. Holder's basis should be reduced by an amount equal to the Section 1014 basis minus the decedent's
adjusted basis just before death. As such if we are determined to be a PFIC at any time prior to a decedent's passing, the PFIC
rules will cause any new U.S. Holder that inherits our Ordinary Shares from a U.S. Holder to not get a step-up in basis under Section 1014
and instead will receive a carryover basis in those Ordinary Shares.
You are urged to consult your tax advisors regarding
the application of the PFIC rules to your investment in our Ordinary Shares and the elections discussed above.
Information Reporting and Backup Withholding
Dividend payments with respect to our Ordinary
Shares and proceeds from the sale, exchange or redemption of our Ordinary Shares may be subject to information reporting to the U.S. Internal
Revenue Service and possible U.S. backup withholding under Section 3406 of the U.S. Internal Revenue Code with at a current flat rate
of 24%. Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer identification number and makes
any other required certification on U.S. Internal Revenue Service Form W-9 or who is otherwise exempt from backup withholding. U.S. Holders
who are required to establish their exempt status generally must provide such certification on U.S. Internal Revenue Service Form W-9.
U.S. Holders are urged to consult their tax advisors regarding the application of the U.S. information reporting and backup withholding
rules.
128
Backup withholding is not an additional tax. Amounts
withheld as backup withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess
amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the U.S. Internal Revenue Service
and furnishing any required information. We do not intend to withhold taxes for individual shareholders. However, transactions effected
through certain brokers or other intermediaries may be subject to withholding taxes (including backup withholding), and such brokers or
intermediaries may be required by law to withhold such taxes.
Under the Hiring Incentives to Restore Employment
Act of 2010, certain U.S. Holders are required to report information relating to our Ordinary Shares, subject to certain exceptions (including
an exception for Ordinary Shares held in accounts maintained by certain financial institutions), by attaching a complete Internal Revenue
Service Form 8938, Statement of Specified Foreign Financial Assets, with their tax return for each year in which they hold Ordinary Shares.
E. Dividends and Paying Agents
Not applicable.
F. Statement by Experts
Not applicable.
G. Documents on Display
We are subject to certain of the informational
filing requirements of the Exchange Act. Since we are a "foreign private issuer," we are exempt from the rules and regulations
under the Exchange Act prescribing the furnishing and content of proxy statements, and our officers, directors and principal shareholders
are exempt from the reporting and "short-swing" profit recovery provisions contained in Section 16 of the Exchange Act, with
respect to their purchase and sale of our shares. In addition, we are not required to file reports and financial statements with the SEC
as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act. However, we are required to file
with the SEC an Annual Report on Form 20-F containing financial statements audited by an independent accounting firm. We also furnish
to the SEC, on Form 6-K, unaudited financial information after each of our first three fiscal quarters. Copies of reports and other information,
when so filed with the SEC, can be inspected and copied at the public reference facilities maintained by the SEC at 100 F Street, N.E.,
Room 1580, Washington, D.C. 20549. You can request copies of these documents, upon payment of a duplicating fee, by writing to the SEC.
The public may obtain information regarding the Washington, D.C. Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also
maintains a website at http://www.sec.gov that contains reports and other information that we file with or furnish electronically with
the SEC. Additionally, documents referred to in this Form 20-F may be inspected at our corporate offices, which are located at 501, Platinum
Tower, 233 Taicang Rd, HuangPu, Shanghai City, the PRC.
H. Subsidiary Information
For a listing of our subsidiaries, see "Item 4C. Organizational
Structure" for a chart of our current structure.
ITEM 11. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk
We are exposed to interest rate risk while we
have short-term bank loans outstanding. Although interest rates for our short-term loans are typically fixed for the terms of the loans,
the terms are typically twelve months and interest rates are subject to change upon renewal.
129
Liquidity Risk
We are also exposed to liquidity risk which is
risk that it we will be unable to provide sufficient capital resources and liquidity to meet our commitments and business needs. Liquidity
risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, we will turn to other
financial institutions and related parties to obtain short-term funding to cover any liquidity shortage.
Foreign Exchange Risk
As our principal activities are carried out in
the PRC, our transactions are mainly denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange
transactions involving RMB must take place through the PBOC or other institutions authorized to buy and sell foreign exchange. The exchange
rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC that are determined largely by supply
and demand. In July 2005, the PRC government changed its decades-old policy of pegging the value of RMB to the U.S. dollar, and RMB appreciated
more than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010, this appreciation halted and the
exchange rate between RMB and the U.S. dollar remained within a narrow band. Since June 2010, RMB has fluctuated against the U.S. dollar,
at times significantly and unpredictably. It is difficult to predict how market forces or PRC or U.S. government policy may impact the
exchange rate between RMB and the U.S. dollar in the future. The management does not expect that there will be any significant currency
risk for us during the reporting periods
ITEM 12. DESCRIPTION OF SECURITIES OTHER
THAN EQUITY SECURITIES
A. Debt Securities
Not applicable.
B. Warrants and Rights
Not applicable.
C. Other Securities
Not applicable.
D. American Depositary Shares
Not applicable.
130
PART II.
ITEM 13. DEFAULTS, DIVIDEND ARREARAGES
AND DELINQUENCIES
None.
ITEM 14. MATERIAL MODIFICATIONS TO THE
RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
Material Modifications to the Rights of Security Holders
See "Item 10. Additional Information" for a description
of the rights of securities holders, which remain unchanged.
Use of Proceeds
The following "Use of Proceeds" information
relates to the registration statement on Form F-1, as amended (File Number: 333-264458) in relation to the initial public offering of
4,000,000 (or 800,000 Ordinary Shares reflecting the share consolidation took effect on August 10, 2022), at an initial public offering
price of $5.00 per Ordinary Share (or $1.00 per Ordinary Shares reflecting the share consolidation took effect on August 10, 2022). Our
initial public offering closed on July 13, 2021.
We received net proceeds of approximately $ 16.91
million, after deducting underwriting discounts and estimated offering expenses payable by us. The total expense incurred for our Company's
account in connection with our initial public offering was approximately $3.09 million, which included approximately $1.45 million in
underwriting discounts for the initial public offering and approximately $1.64 million in other costs and expenses for our initial public
offering. None of the transaction expenses included payments to directors or officers of our Company or their associates, persons owning
more than 10% or more of our equity securities or our affiliates. None of the net proceeds we received from the initial public offering
were paid, directly or indirectly, to any of our directors or officers or their associates, persons owning 10% or more of our equity securities
or our affiliates. As of April 22, 2023, we have used $4.18 million from our initial public offering for general operations. We intend
to use the remaining proceeds from our initial public offering as disclosed in our registration statement on Form F-1. Our management,
however, will have significant flexibility and discretion to apply the net proceeds from our initial public offering. If an unforeseen
event occurs or business conditions change, we may use the proceeds of this offering differently than as disclosed previously.
ITEM 15. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed
to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported
within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our
management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure.
Our management, with the participation of our
chief executive officer and chief financial officer, has performed an evaluation of the effectiveness of our disclosure controls and procedures
(as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report, as required by Rule 13a-15(b)
under the Exchange Act. Based on that evaluation, our management has concluded that, as of December 31, 2022, our disclosure controls
and procedures were ineffective to ensure that the information required to be disclosed by us in reports that we file or submit under
the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms,
and that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated
to our management, including our chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure.
131
Management's Annual Report on Internal Control over Financial
Reporting
Our management is responsible for establishing
and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange
Act of 1934, as amended. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with Generally
Accepted Accounting Principles (GAAP) in the United States of America and includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of our company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated
financial statements in accordance with GAAP, and that receipts and expenditures of our company are being made only in accordance with
authorizations of our management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of
the unauthorized acquisition, use or disposition of our company's assets that could have a material effect on the consolidated financial
statements.
Because of its inherent limitations, internal
control over financial reporting may not prevent or detect all potential misstatements. Also, projections of any evaluation of effectiveness
to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
As required by Section 404 of the Sarbanes-Oxley
Act of 2002 and related rules as promulgated by the SEC, our management, including our chief executive officer and chief financial officers,
assessed the effectiveness of internal control over financial reporting as of December 31, 2022 using the criteria set forth in the
report "Internal Control—Integrated Framework (2013)" published by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on this evaluation, the management concluded that our internal control over financial reporting was ineffective
as of December 31, 2022.
The material weaknesses identified relate to (i) our
lack of a sufficient number of finance and accounting personnel or sufficiently trained finance and accounting personnel, as well as comprehensive
accounting policies in accordance with U.S. GAAP financial reporting; and (ii) our internal control policy does not have a proper
approval mechanism, and our lack of internal controls on performing periodic reviews of user accounts and their level of authorization
in the financial systems. We plan to implement a number of measures to remedy these material weaknesses. To remedy the identified material
weakness and the other control deficiencies, we have implemented and will continue to implement initiatives to improve our internal control
over financial reporting to address the material weaknesses that have been identified, including: (i) obtain additional resources,
including experienced staff with U.S. GAAP and SEC reporting knowledge, to strengthen the financial reporting function and to set
up financial and system control framework; (ii) conducting regular and continuous U.S. GAAP accounting and financial reporting
training programs for our accounting and financial reporting personnel, including sending our financial staff to attend external U.S. GAAP
training courses; and (iii) optimizing our financial systems by establishing a proper approval mechanism and performing periodic
reviews of users accounts and their level of authorization.
As a company with less than US$1.235 billion
in revenue for our last fiscal year, we qualify as an "emerging growth company" pursuant to the JOBS Act. An emerging growth
company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies.
These provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002,
in the assessment of the emerging growth company's internal control over financial reporting.
132
Attestation Report of the Registered Public Accounting Firm
This annual report does not include an attestation
report of our independent registered public accounting firm regarding internal control over financial reporting as we qualify as an "emerging
growth company" under section 3(a) of the Securities Exchange Act of 1934, as amended, and are therefore exempt from the attestation
requirement.
Changes in Internal Control
There were no changes in our internal controls
over financial reporting that occurred during the period covered by this annual report on Form 20-F that have materially affected, or
are reasonably likely to materially affect, our internal control over financial reporting.
ITEM 16. [RESERVED]
ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT
In general, an "audit committee financial
expert" within the meaning of Item 407(d)(5) of Regulation S-K, is an individual member of the Audit Committee who:
●
understands generally accepted accounting principles and financial statements,
●
is able to assess the general application of such principles in connection with accounting for estimates, accruals and reserves,
●
has experience preparing, auditing, analyzing or evaluating financial statements comparable to the breadth and complexity to our financial statements,
●
understands internal controls over financial reporting, and
●
understands audit committee functions.
An "audit committee financial expert"
may acquire the foregoing attributes through:
●
education and experience as a principal financial officer, principal accounting officer, controller, public accountant, auditor or person serving similar functions;
●
experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor or person serving similar functions; experience overseeing or assessing the performance of companies or public accounts with respect to the preparation, auditing or evaluation of financial statements; or
●
other relevant experience.
Our board of directors has determined that both
Mr. Angel Colon qualify as audit committee financial experts and have the accounting or financial management expertise as defined under
Item 407(d)(5) of Regulation S-K and required under Nasdaq Rule 5605(c)(2)(A).
133
Item
16
B. Code of Ethics.
A Code of Ethics is a written standard designed
to deter wrongdoing and to promote:
●
honest and ethical conduct,
●
full, fair, accurate, timely and understandable disclosure in regulatory filings and public statements,
●
compliance with applicable laws, rules and regulations,
●
the prompt reporting violation of the code, and
●
accountability for adherence to the Code of Business Conduct and Ethics.
We have adopted a Code of Business Conduct and
Ethics that applies to our principal executive officer, principal financial officer, principal accounting officer and controller, or persons
performing similar functions. The Code of Business Conduct and Ethics is currently available at our corporate website at www.sentageholdings.com.
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND
SERVICES
The following table shows the fees that we paid
and accrued for audit and other services provided by Enrome LLP our independent registered public accounting firm for fiscal years 2022
and 2021, respectively.
Enrome LLP
For the Year Ended
December 31,
2021
2022
Audit fees
(1)
350,000
220,000
Audit related fees
(2)
—
—
Tax fees
(3)
—
—
All other fees
—
—
Total
350,000
220,000
(1)
"Audit fees" means the aggregate fees billed for professional services rendered by our independent registered public accounting firm for the audit of our annual consolidated financial statements and the review of our comparative interim financial information.
(2)
"Audit related fees" means the aggregate fees billed for related services by our principal accountant that are reasonably related to the performance of the audit or review of our financial statements and are not reported under Audit fees.
(3)
"Tax fees" represents the aggregated fees billed for professional services rendered by our independent registered public accounting firm for tax compliance, tax advice, and tax planning.
Our audit committee is responsible for the oversight
of our independent accountants' work. The policy of our audit committee is to pre-approve all audit and non-audit services provided
by Enrome, including audit services, audit-related services, tax services and other services as described above, other than those for
de minimis services which are approved by the audit committee prior to the completion of the audit.
134
ITEM 16D. EXEMPTIONS FROM THE LISTING
STANDARDS FOR AUDIT COMMITTEES
Not applicable.
ITEM 16E. PURCHASES OF EQUITY SECURITIES
BY THE ISSUER AND AFFILIATED PURCHASERS
There have been no purchases of equity securities required to be disclosed
in response to this Item.
I
tem
16F. Change in Registrant's Certifying Accountant.
On April 29, 2022, we dismissed Friedman LLP ("Friedman")
as the independent registered public accounting firm. The reports of Friedman on our financial statements for the past fiscal years ended
December 31, 2020 and December 31, 2019 contained no adverse opinion or a disclaimer of opinion and was not modified. The decision to
change the independent accountant was approved and ratified by our Board of Directors on April 29, 2022.
During our fiscal years ended December 31, 2020
and December 31, 2019 and through the date of the dismissal, we did not have any disagreements with Friedman, on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction
of Friedman, would have caused it to make reference to the subject matter of such disagreements in its report on our financial statements
for such period.
During the fiscal years ended December 31, 2020
and December 31, 2019 and through the date of the dismissal, there were no reportable events as defined under Item 304(a)(1)(v) of Regulation
S-K adopted by the Securities and Exchange Commission.
Effective April 29, 2022, we engaged Enrome LLP
as our independent registered public accounting firm. During the two most recent fiscal years and through the date of our engagement,
we did not consult with Enrome LLP regarding either (1) the application of accounting principles to a specified transaction, either completed
or proposed, or the type of audit opinion that might be rendered on our financial statements, or (2) any matter that was either the subject
of a disagreement or a reportable event (as defined in Item 304(a)(1)(v) of Regulation S-K). In approving the selection Enrome LLP as
the Company's new independent registered public accounting firm, our Board of Directors considered all relevant factors.
ITEM 16G. CORPORATE GOVERNANCE
As a foreign private issuer with shares listed
on the Nasdaq Capital Market we are subject to corporate governance requirements imposed by Nasdaq. Under Nasdaq Stock Market Rule 5615(a)(3),
a foreign private issuer such as us may follow its home-country corporate governance practices in lieu of certain of the Nasdaq Stock
Market Rules corporate governance requirements. We are committed to a high standard of corporate governance. As such, we strive to
comply with most of the Nasdaq corporate governance practices. However, our current corporate governance practices differ from Nasdaq
corporate governance requirements for U.S. companies in certain respects, as summarized below:
●
a majority of directors being independent — Cayman Islands law and generally accepted business practices in the Cayman Islands do not require that a majority of our board of directors be independent. We currently rely upon the relevant exemption for foreign private issuers with respect to the Nasdaq requirement to have a majority of independent directors;
●
a nominating and corporate governance committee composed entirely of independent directors — Cayman Islands law and generally accepted business practices in the Cayman Islands do not require that our nominating and corporate governance committee be composed entirely of independent directors. We currently rely upon the exemption for foreign private issuers with respect to the Nasdaq requirement with respect to the composition of the nominating and corporate governance committee;
135
●
a compensation committee composed entirely of independent directors — Cayman Islands law and generally accepted business practices in the Cayman Islands do not require that our compensation committee be composed entirely of independent directors. We currently rely upon the exemption for foreign private issuers with respect to the Nasdaq requirement with respect to the composition of the compensation committee;
●
we will not provide an annual certification by our chief executive officer that he or she is not aware of any non-compliance with any corporate governance rules of the Nasdaq, as such certification is not required under Cayman Islands law;
●
have regularly scheduled executive sessions with only non-management directors — Cayman Islands law and generally accepted business practices in the Cayman Islands do not require that our board of directors hold regularly scheduled executive sessions with only non-management directors. We currently rely upon the exemption for foreign private issuers with respect to the Nasdaq requirement with respect to executive sessions; or
●
shareholder approval — Cayman Islands law and generally accepted business practices in the Cayman Islands do not require us to seek shareholder approval for (i) the establishment, implementation and material revisions of the terms of share incentive plans, (ii) the issuance of more than 1% of our outstanding Ordinary Shares or more than 1% of our outstanding voting power to a related party, (iii) the issuance of more than 20% of our outstanding Ordinary Shares or voting power, (iv) an issuance in connection with an acquisition, and (iv) an issuance that would result in a change of control. We currently rely upon exemption for foreign private issuers with respect to the Nasdaq shareholder approval requirements.
We may determine to voluntarily comply with one
or more of the foregoing provisions as required by the Nasdaq Stock Market Rule.
ITEM 16H. MINE SAFETY DISCLOSURE
Not applicable.
Item 16I. DISCLOSURE
REGARDING FOREIGN JURISDICTIO
NS THAT PREVENT INSPECTIONS
Not applicable.
136
PART III
ITEM 17. FINANCIAL STATEMENTS
We have elected to provide financial statements
pursuant to Item 18.
ITEM 18. FINANCIAL STATEMENTS
The consolidated financial statements of Sentage
Holdings are included at the end of this annual report.
I
tem
19. EXHIBITS
EXHIBIT INDEX
Exhibit No.
Description
1.1
Amended and Restated Memorandum and Articles of Association (incorporated by reference to Exhibit 3.1 of our Registration Statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
2.1
Specimen Certificate for Ordinary Shares (incorporated herein by reference to Exhibit 4.1 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
2.2
Form of Underwriting Agreement (incorporated herein by reference to Exhibit 1.1 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
2.3*
Description of Securities
4.1
Form of Employment Agreement by and between executive officers and the Registrant (incorporated herein by reference to Exhibit 10.1 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.2
Form of Indemnification Agreement with the Registrant's directors and officers (incorporated herein by reference to Exhibit 10.2 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.3
English Translation of Form of Exclusive Business Cooperation Agreement between WFOE and each of Our VIEs and a Schedule of All Exclusive Business Cooperation Agreements Adopting the Same Form (incorporated herein by reference to Exhibit 10.3 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.4
English Translation of Form of Power English Translation of Form of Power of Attorney Granted by Shareholders of each of our VIEs and a Schedule of All Powers of Attorney Adopting the Same Form (incorporated herein by reference to Exhibit 10.4 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.5
English Translation of Form of Equity Pledge Agreement among WFOE, each of our VIEs, and Shareholders of Each of Our VIEs and a Schedule of All Equity Pledge Agreements Adopting the Same Form (incorporated herein by reference to Exhibit 10.5 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
137
4.6
English translation of Form of Exclusive Purchase Option Agreement among WFOE, each of Our VIEs, and Shareholders of each of Our VIEs and a Schedule of All Exclusive Purchase Option Agreements Adopting the Same Form (incorporated herein by reference to Exhibit 10.6 to the registration statement on Form F 1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.7
English Translation of Form of Spousal Consent Granted by the Spouse of each Individual Shareholder of our VIEs and a Schedule of All Spousal Consents Adopting the Same Form (incorporated herein by reference to Exhibit 10.7 to the registration statement on Form F 1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.8
English Translation of Form of Loan Agreement Between WFOE and Shareholders of each of our VIEs and a Schedule of All Loan Agreements Adopting the Same Form (incorporated herein by reference to Exhibit 10.8 to the registration statement on Form F-1 (File No. 333 254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.9
English Translation of Strategic Cooperation Agreement Between Daxin Zhuohui Financial Information Service (Shanghai) Co., Ltd. And Nanchang Jintou Puhui Information Service Co., Ltd., Dated August 28, 2019 (incorporated herein by reference to Exhibit 10.9 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.10
English Translation of Cooperation Agreement For Reserve Funds Between Party A: Netsunion Clearing Corporation And Qingdao Buytop Payment Service Co., Ltd., Dated July 15, 2019 (incorporated herein by reference to Exhibit 10.10 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.11
English Translation of Framework Consulting Service Agreement Between Daxin Zhuohui Financial Information Service (Shanghai) Co., Ltd. And Tianjin Financial Asset Exchange Co., Ltd. Dated June 12, 2020 (incorporated herein by reference to Exhibit 10.11 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.12
English Translation of Exclusive Purchase Option Agreement Among WFOE, Daxin Zhuohui, And Shareholders of Daxin Zhuohui (incorporated herein by reference to Exhibit 10.12 to the Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.13
English Translation of Spousal Consents Granted By The Spouses of Certain Shareholders of Daxin Zhuohui (incorporated herein by reference to Exhibit 10.13 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.14
English Translation of Loan Agreements Between WFOE And Shareholders of Daxin Zhuohui (incorporated herein by reference to Exhibit 10.14 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.15
English Translation of Exclusive Business Cooperation Agreement Between WFOE And Qingdao Buytop (incorporated herein by reference to Exhibit 10.15 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2020)
4.16
English Translation of Power of Attorneys Granted By Shareholders of Qingdao Buytop (incorporated herein by reference to Exhibit 10.16 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.17
English Translation of Equity Pledge Agreements Among WFOE, Qingdao Buytop, And Each Shareholder of Qingdao Buytop (incorporated herein by reference to Exhibit 10.17 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.18
English Translation of Exclusive Purchase Option Agreement Among WFOE, Qingdao Buytop, And Shareholders of Qingdao Buytop (incorporated herein by reference to Exhibit 10.18 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
138
4.19
English Translation of Loan Agreements Between WFOE And Shareholders of Qingdao Buytop (incorporated herein by reference to Exhibit 10.19 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.20
English Translation of Exclusive Business Cooperation Agreement Between WFOE And Zhenyi (incorporated herein by reference to Exhibit 10.20 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2020)
4.21
English Translation of Power of Attorneys Granted By Shareholders of Zhenyi (incorporated herein by reference to Exhibit 10.21 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.22
English Translation of Equity Pledge Agreements Among WFOE, Daxin Wealth, And Each Shareholder of Zhenyi (incorporated herein by reference to Exhibit 10.22 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.23
English Translation of Exclusive Purchase Option Agreement Among WFOE, Zhenyi, And Shareholders of Zhenyi (incorporated herein by reference to Exhibit 10.23 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.24
English Translation of Spousal Consents Granted By The Spouses of Certain Shareholders of Zhenyi (incorporated herein by reference to Exhibit 10.24 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
4.25
English Translation of Loan Agreements Between WFOE And Shareholders of Zhenyi (incorporated herein by reference to Exhibit 10.25 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021)
8.1*
Principal Subsidiaries and Consolidated Affiliated Entities of the Registrant
11.1
Code of Business Conduct and Ethics of the Registrant (incorporated herein by reference to Exhibit 99.1 to the registration statement on Form F-1 (File No. 333-254558), as amended, initially filed with the Securities and Exchange Commission on March 22, 2021
12.1*
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12.2*
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
13.1 **
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
13.2 **
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*
The following financial statements from the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2022, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income and Other Comprehensive Income, (iii) Consolidated Statements of Changes in Shareholders' Equit, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags
15.1*
Consent Letter of Beijing Dentons Law Offices, LLP (Fuzhou)
104*
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
*
Filed with this annual report on Form 20-F
**
Furnished with this annual report on Form 20-F
139
SIGNATURES
The registrant hereby certifies that it meets
all of the requirements for filing its annual report on Form 20-F and that it has duly caused and authorized the undersigned to sign this
annual report on its behalf.
Sentage Holdings Inc.
By:
/s/ Qiaoling Lu
Name
Qiaoling Lu
Title
Chief Executive Officer, Chairman of the Board of Directors, and Director
(Principal Executive Officer)
Date: May 1, 2023
140
SENTAGE HOLDINGS INC. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
Report of Independent Registered Public Accounting Firm (PCAOB ID:
6907
)
F-2
Consolidated Balance Sheets as of December 31, 2021 and 2022
F-3
Consolidated Statements of Comprehensive Income and Other Comprehensive Income for the years ended December 31, 2020, 2021 and 2022
F-5
Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2020, 2021 and 2022
F-6
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2021 and 2022
F-7
Notes to the Consolidated Financial Statements
F-8
F-
1
Report of Independent Registered Public Accounting
Firm
To the Shareholders and Board of Directors
Sentage Holdings Inc. and Its Subsidiaries
Opinion on the Financial Statements
We have audited the accompanying consolidated
balance sheets of Sentage Holdings Inc. (the "Company") and its subsidiaries (the "Group") as of December 31,
2022 and 2021, the related consolidated statements of comprehensive income and other comprehensive income, changes in shareholders'
equity, and cash flows for the years ended December 31, 2022, 2021 and 2020, and the related notes (collectively, the "consolidated
financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial
position of the Group as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years ended December
31, 2022, 2021 and 2020, in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Basis for Opinion
These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements
based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB")
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides
a reasonable basis for our opinion.
/s/
Enrome LLP
We have served as the Company's auditor
since 2021.
Singapore
May 1, 2023
F-
2
SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of December 31,
Note
2021
2022
USD
USD
ASSETS
Current assets
Cash and cash equivalents
3
$
10,753,118
$
3,805,135
Restricted cash
30,269
23,089
Loan receivable
5
5,500,000
5,500,000
Accounts receivable, net
4
403,708
433,510
Prepaid expenses and other current assets
6
515,062
4,579,646
Total current assets
17,202,157
14,341,380
Non-current assets
Right-of-use assets, net
9
-
162,270
Plant and equipment, net
7
120,280
53,023
Intangible assets, net
8
30,547
89,475
Deferred tax assets
10
13,724
12,686
Total non-current assets
164,551
317,454
Total assets
$
17,366,708
$
14,658,834
F-
3
SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
As of December 31,
Note
2021
2022
USD
USD
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable
$
2,743
$
8,647
Operating lease liabilities, current
9
-
87,129
Accrued expenses and other current liabilities
11
379,991
309,001
Total current liabilities
382,734
404,777
Non-current liability
Operating lease liabilities, non-current
9
-
74,384
Due to a related party, non-current
12
161,020
4,709
Total non-current liability
161,020
79,093
Total liabilities
543,754
483,870
Shareholders' equity
Ordinary shares, $
0.005
par value,
10,000,000
shares authorized,
2,800,000
and
2,805,325
shared issued and outstanding as of December 31, 2022 and 2021*
14
14,000
14,027
Additional paid in capital
55,327,885
55,327,858
Statutory reserves
166,038
166,038
Accumulated deficit
(
38,898,664
)
(
41,460,571
)
Accumulated other comprehensive income
213,695
127,612
Total shareholders' equity
16,822,954
14,174,964
Total liabilities and shareholders' equity
$
17,366,708
$
14,658,834
*
Retrospectively restated for one-for-five reverse split with effective
date of August 10, 2022.
F-
4
SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
AND OTHER COMPREHENSIVE INCOME
For the years ended December 31,
Note
2020
2021
2022
OPERATING REVENUE
Consumer loan repayment and collection management service fees
$
1,074,734
$
156,062
$
-
Loan recommendation service fees
2,087,717
1,177,822
-
Prepaid payment network service fee
432,958
928,565
161,372
Total operating revenue
3,595,409
2,262,449
161,372
OPERATING EXPENSE
Selling, general and administrative expenses
1,414,979
3,041,415
2,732,379
Total operating expenses
1,414,979
3,041,415
2,732,379
INCOME(LOSS) FROM OPERATIONS
2,180,430
(
778,966
)
(
2,571,007
)
OTHER INCOME (EXPENSES)
(
354
)
(
56,931
)
9,100
INCOME(LOSS) BEFORE INCOME TAX PROVISION
2,180,076
(
835,897
)
(
2,561,907
)
INCOME TAX EXPENSE
10
592,701
257,344
-
NET INCOME(LOSS)
1,587,375
(
1,093,241
)
(
2,561,907
)
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment
36,993
152,700
(
86,083
)
COMPREHENSIVE INCOME (LOSS)
$
1,624,368
$
(
940,541
)
$
(
2,647,990
)
Earnings(loss) per common share- basic and diluted
$
0.79
$
(
0.46
)
$
(
1.08
)
Weighted average shares- basic and diluted
2,000,000
2,374,795
2,376,764
*
Retrospectively restated for one-for-five reverse split with effective
date of August 10, 2022.
F-
5
SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
EQUITY
Ordinary shares
Additional
paid-in
capital
Statutory Reserves
Accumulated
deficit
Accumulated
other
comprehensive
income(loss)
Total
equity
(deficit)
NOTE
Shares*
USD
USD
USD
USD
USD
Balances as of January 1, 2020
2,000,000
$
10,000
$
38,419,832
$
-
$
(
39,226,760
)
$
24,002
$
(
772,926
)
Net income for the year
-
-
-
-
1,587,375
-
1,587,375
Foreign currency translation adjustment
-
-
-
-
-
36,993
36,993
Balances as of December 31, 2020
2,000,000
$
10,000
$
38,419,832
$
-
$
(
37,639,385
)
$
60,995
$
851,442
Net loss for the year
-
-
-
-
(
1,093,241
)
-
(
1,093,241
)
Addition of share capital
800,000
4,000
16,908,053
-
-
-
16,912,053
Statutory reserve
-
-
-
166,038
(
166,038
)
-
-
Foreign currency translation adjustment
-
-
-
-
-
152,700
152,700
Balances as of December 31, 2021
2,800,000
$
14,000
$
55,327,885
$
166,038
$
(
38,898,664
)
$
213,695
$
16,822,954
Net loss for the year
-
-
-
-
(
2,561,907
)
-
(
2,561,907
)
Issuance of common stock for compensation
5,325
27
(
27
)
-
-
-
-
Foreign currency translation adjustment
-
-
-
-
-
(
86,083
)
(
86,083
)
Balances as of December 31, 2022
2,805,325
$
14,027
$
55,327,858
$
166,038
$
(
41,460,571
)
$
127,612
$
14,174,964
*
Retrospectively restated for one-for-five reverse split with effective
date of August 10, 2022
F-
6
SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31,
Note
2020
2021
2022
Cash flows from operating activities
Net income (loss)
$
1,587,375
$
(
1,093,241
)
$
(
2,561,907
)
Adjustments to reconcile net income to cash and restricted cash provided by (used in) operating activities:
Depreciation and amortization
53,520
62,971
57,428
Deferred income tax expense
592,701
74,243
-
Impairment loss recognised in respect of receivables
-
54,896
4,548
Changes in operating assets and liabilities:
Accounts receivable
(
918,303
)
763,240
(
34,350
)
Prepaid expenses and other current assets
90,290
(
132,021
)
(
4,064,584
)
Interest accrued for lease liabilities
-
-
1,342
Contract liabilities
(
1,056,406
)
(
154,106
)
-
Accrued expenses and other current liabilities
116,033
41,354
(
65,086
)
Net cash provided by (used in) operating activities
465,210
(
382,664
)
(
6,662,609
)
Cash flows from investing activities
Additions to plant and equipment and intangible assets
-
(
19,977
)
(
34,346
)
Investment in loans receivable
-
(
5,500,000
)
-
Net cash (used in) investing activities
-
(
5,519,977
)
(
34,346
)
Cash flows from financing activities
Deferred initial public offering costs
(
765,885
)
765,885
-
Payment of lease liabilities
-
-
(
16,851
)
Proceeds from IPO
-
16,912,053
-
Proceeds from (Repayment to) related party loans
180,026
(
1,276,641
)
(
156,311
)
Net cash provided by (used in) financing activities
(
585,859
)
16,401,297
(
173,162
)
Reconciliation of cash and restricted cash, beginning of year
Cash
227,387
117,434
10,753,118
Restricted cash
23,644
22,948
30,269
Cash and restricted cash, beginning of year
$
251,031
$
140,382
$
10,783,387
Reconciliation of cash and restricted cash, end of year
Cash
117,434
10,753,118
3,805,135
Restricted cash
22,948
30,269
23,089
Cash and restricted cash, end of year
$
140,382
$
10,783,387
$
3,828,224
Effect of exchange rate changes on cash and restricted cash
10,000
144,349
(
85,046
)
Net increase (decrease) in cash and restricted cash
(
110,649
)
10,643,005
(
6,955,163
)
Cash and restricted cash, beginning of year
251,031
140,382
10,783,387
Cash and restricted cash, end of year
$
140,382
$
10,783,387
$
3,828,224
Supplemental disclosures of cash flows information
Cash
    paid for amounts include in operating lease liabilities
-
-
1,342
F-
7
SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.
Organization and Principal Activities
(a)
Principal activities
Sentage Holdings Inc. ("Sentage
Holdings" or the "Company") was incorporated on September 16, 2019 under the law of Cayman Islands as an exempted company
with limited liability. As of December 31, 2022, the Company, through its subsidiaries and consolidated variable interest entities ("VIEs")
(collectively referred to as the "Group") was primarily engaged in providing customers a comprehensive range of financial
services including repayment and collection management services, loan recommendation services, and prepaid payment network services. All
of the Group's operations and customers are located in the People's Republic of China("PRC").
Sentage Holdings owns
100
% of the equity
interests of Sentage Hongkong Limited ("Sentage HK"), a limited liability company formed under the laws of Hong Kong on September
25, 2019.
On December 17, 2019, Shanghai Santeng
Technology Co., Ltd. ("Sentage WFOE") was incorporated pursuant to PRC laws as a wholly foreign owned enterprise of Sentage
HK.
Sentage Holdings, Sentage HK, and Sentage
WFOE are currently not engaging in any active business operations and merely acting as holding companies.
As of December 31, 2022, the consolidated
financial statements of the Company include the following entities:
Entity
Date of
incorporation
Place of
incorporation
Percentage of
direct or
indirect
economic ownership
Principal activities
Sentage Holdings Inc. ("Sentage Holdings")
September 16, 2019
Cayman Islands
Parent, 100%
Investment holding
Sentage Hongkong Limited ("Sentage HK")
September 25, 2019
Hong Kong
100%
Investment holding
Shanghai Santeng Technology Co., Ltd. ("Sentage WFOE")
December 17, 2019
Shanghai, PRC
100%
WFOE, Consultancy and information technology support
Daxin Wealth Investment Management (Shanghai) Co., Ltd.  ("Daxin Wealth")
August 13, 2014
Shanghai, PRC
VIE
Consumer loan repayment and collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services
Daxin Zhuohui Financial Information Services (Shanghai) Co., Ltd. ("Daxin Zhuohui")
January 9, 2015
Shanghai, PRC
VIE
Consumer loan repayment and
collection management services; and loan recommendation services to assist borrowers to obtain loans from various financial institutions services
Qingdao Buytop Payment Services Co., Ltd. ("Qingdao Buytop")
August 4, 2009
Qingdao,Shandong,PRC
VIE
Prepaid payment network
services
Zhenyi Information Technology (Shanghai) Co., Ltd. ("Zhenyi")
August 29, 2017
Shanghai, PRC
VIE
Provide technology and system development and support
F-
8
(b)
History of the Group and reorganization
Organization and General
Prior to the reorganization described
below, the Sentage Operating Companies Shareholders were the controlling shareholders of the following entities: (1) Daxin Wealth Investment
Management (Shanghai) Co., Ltd. ("Daxin Wealth"), formed in Shanghai City, China on August 13, 2014; (2) Daxin Zhuohui Financial
Information Services (Shanghai) Co., Ltd. ("Daxin Zhuohui"), formed in Shanghai City, China on January 9, 2015; (3) Qingdao
Buytop Payment Services Co., Ltd. ("Qingdao Buytop"), formed in Qingdao City, Shandong Province, China on August 4, 2009;
and (4) Zhenyi Information Technology (Shanghai) Co., Ltd. ("Zhenyi"), formed in Shanghai City, China on August 29, 2017.
Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi were all formed as limited companies pursuant to PRC laws. Daxin Wealth and Daxin
Zhuohui are primarily engaged in providing consumer loan repayment and collection management services. Daxin Zhuohui also provides loan
recommendation services. Qingdao Buytop is primarily engaged in providing customers with prepaid payment network services. Zhenyi is primarily
engaged in providing technology and system development and support. Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi are collectively
referred to as the "Sentage Operating Companies" below.
Reverse recapitalization
A reorganization of legal structure
("Reorganization") was completed on March 9, 2020. The Reorganization involved the formation of Sentage Holdings, Sentage
HK and Sentage WFOE, and entering into certain contractual arrangements Sentage WFOE, the shareholders of the Sentage Operating Companies.
Consequently, the Company became the ultimate holding company of Sentage HK, Sentage WFOE, Daxin Wealth, Daxin Zhuohui, and Qingdao Buytop.
On March 9, 2020, Sentage WFOE entered
into a series of contractual arrangements with the shareholders of the Sentage Operating Companies. These agreements include Exclusive
Purchase Agreements, an Exclusive Business Cooperation Agreement, Equity Pledge Agreements, Powers of Attorney, Loan Agreements intended
to guarantee the exercise of the Exclusive Purchase Agreements and Spouse Consents (collectively the "VIE Agreements"). Sentage
WFOE, Zhenyi, and Zhenyi's shareholders entered into the VIE Agreements on April 1, 2021. Pursuant to the VIE Agreements, Sentage
WFOE has the exclusive right to provide to the Sentage Operating Companies consulting services related to business operations including
technical and management consulting services.
As a result of our direct ownership
in Sentage WFOE and the VIE Agreements, we are regarded as the primary beneficiary of the VIEs, and we treat the VIEs as our consolidated
entities under U.S. GAAP, for accounting purposes. We have consolidated the financial results of the VIEs in our consolidated financial
statements in accordance with U.S. GAAP. The VIE Agreements have not been tested in a court of law in China as of the date of this annual
report.
The Company, together with its wholly
owned subsidiaries and its VIEs, is effectively controlled by the same shareholders before and after the Reorganization and therefore
the Reorganization is considered as a recapitalization of entities under common control. The consolidation of the Company, its subsidiaries,
and its VIEs has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective
as of the beginning of the first period presented in the accompanying consolidated financial statements.
F-
9
(c)
VIE contractual arrangements
The Company's main operating
entities are Daxin Wealth, Daxin Zhuohui, Qingdao Buytop and Zhenyi (or the "Sentage Operating Companies" as referred above),
in which we do not have equity interests but whose financial results have been consolidated by Sentage Holdings for accounting purposes
in accordance with U.S. GAAP due to Sentage Holdings having effective control over, and being the primary beneficiary of, these companies
via the VIE Agreements, which have not been tested in a court of law in China as of the date of this annual report.
Risks associated with the VIE structure
The Company believes that the contractual
arrangements with its VIEs and the shareholders of its VIEs are in compliance with PRC laws and regulations and are legally enforceable.
However, uncertainties in the PRC legal system could limit the Company's ability to enforce the contractual arrangements. If the
legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could:
●
revoke the business and operating licenses of the Company's PRC subsidiary and VIEs;
●
discontinue or restrict the operations of any related-party transactions between the Company's PRC subsidiary and VIEs;
●
limit the Company's business expansion in China by way of entering into contractual arrangements;
●
impose fines or other requirements with which the Company's PRC subsidiary and VIEs may not be able to comply;
●
require the Company or the Company's PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; or
●
restrict or prohibit the Company's use of the proceeds from public offering to finance the Company's business and operations in China.
The Company's ability to conduct
its financial service businesses may be negatively affected if the PRC government were to carry out of any of the aforementioned actions.
As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to
exert effective control over the VIEs and their shareholders and it may lose the ability to receive economic benefits from the VIEs. The
Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and
its VIEs.
F-
10
The Company, Sentage HK and Sentage
WFOE are essentially holding companies and do not have active operations as of December 31, 2022 and 2021. As a result, total assets and
liabilities presented on the Consolidated Balance Sheets and revenue, expenses, and net income presented on the Consolidated Statement
of Comprehensive Income as well as the cash flows from operating, investing and financing activities presented on the Consolidated Statement
of Cash Flows are substantially the financial position, operation and cash flow of the Company's VIEs. The Company has not provided
any financial support to the VIEs for the years ended December 31, 2022 and 2021.
The table sets forth the assets and
liabilities of the VIEs included in the Company's consolidated balance sheets:
As of December 31,
2021
2022
USD
USD
ASSETS
Current assets
Cash and cash equivalents
607,278
20,020
Restricted cash
30,269
23,089
Accounts receivable, net
403,708
433,510
Prepaid expenses and other current assets
485,154
966,260
Total current assets
1,526,409
1,442,879
Non-current assets
Plant and equipment, net
120,280
53,023
Intangible assets, net
30,547
89,475
Deferred tax assets
13,724
12,686
Total non-current assets
164,551
155,184
Total assets
1,690,960
1,598,063
Current liabilities
Accounts payable
2,743
8,647
Accrued expenses and other current liabilities
379,989
1,431,818
Total current liabilities
382,732
1,440,465
Non-current liability
Due to a related party, non-current
621,021
464,709
Total non-current liability
621,021
464,709
Total liabilities
1,003,753
1,905,174
F-
11
The table sets forth the results of
operations of the VIE included in the Company's consolidated statements of comprehensive income/(loss):
Years ended December 31,
2020
2021
2022
USD
USD
USD
Total revenues
3,595,409
2,262,449
161,372
Net Income
1,587,375
692,774
(
960,506
)
The table sets forth the cash flows
of the VIE included in the Company's consolidated statements of cash flows:
Years ended December 31,
2020
2021
2022
USD
USD
USD
Net cash (used in) provided by operating activities
465,210
1,433,255
(
371,005
)
Net cash provided by (used in) investing activities
-
(
19,977
)
(
34,346
)
Net cash provided by (used in) financing activities
(
585,859
)
(
959,420
)
(
156,311
)
As the VIEs are incorporated as limited
liability companies under the PRC Company Law, the creditors of the VIEs do not have recourse to the general credit of the Company. There
is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs.
2.
Summary of significant accounting policies
(a)
Basis of presentation
The accompanying consolidated financial
statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S.GAAP'').
The consolidated financial statements
are presented in the United States dollar ("USD"), rounded to the nearest thousands except share data and per share data,
or otherwise noted.
(b)
Principles of consolidation
The Group's consolidated financial
statements include the financial statements of the Company, its subsidiaries and its VIEs. All transactions and balances among the Company,
its subsidiaries and its VIEs have been eliminated upon consolidation.
Subsidiaries are those entities in which
the Company, directly or indirectly, controls more than one half of the voting powers; has the power to appoint or remove the majority
of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial
and operating policies of the investee under a statute or agreement among the shareholders or equity holders.
A consolidated VIE is an entity in which
the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership
of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has
the power to direct activities that are significant to the VIE's economic performance, and also the Group's obligation to
absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially
be significant to the VIE. As a result of the Company's direct ownership in Sentage WFOE and the VIE Agreements, the Company is
regarded as the primary beneficiary of the VIEs, and we treat the VIEs as the Company's consolidated entities under U.S. GAAP, for
accounting purposes. The Company has consolidated the financial results of the VIEs in its consolidated financial statements in accordance
with U.S. GAAP. The VIE agreements have not been tested in a court of law in China as of the date of this annual report.
(c)
Use of estimates
The preparation of the Company's
consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant
items subject to such estimates and assumptions include, but are not limited to, estimate of standalone selling prices of each unit of
accounting in multiple elements arrangements, estimate of breakage, the fair value of identifiable assets acquired, liabilities assumed
and non-controlling interests in business combinations, the useful lives of long-lived assets including intangible assets, the fair value
of the reporting unit for the goodwill impairment test, the allowance for doubtful accounts receivable and other receivables, the realization
of deferred tax assets, the fair value of share-based compensation awards, lease liabilities, right-of-use assets and the recoverability
of long-lived 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 consolidated financial statements.
F-
12
(d)
Functional currency
The Group use United States dollar ("US$")
as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of the PRC is US, while the
functional currency of the PRC entities in the Group is RMB as determined based on the criteria of Accounting Standards Codification ("ASC")
830, Foreign Currency Matters.
(e)
Convenience translation
Translations of balances in the consolidated
balance sheets, consolidated statements of comprehensive income/(loss) and consolidated statements of cash flows from RMB into US$ as
of and for the year ended December 31,2022 are solely for the convenience of the readers and were calculated at the rate of US$
1.00
=RMB
6.8972
, representing the index rates stipulated by the Federal Reserve Bank of New York on December 31,2022. No representation is made
that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2022, or at any
other rate. The US$ convenience translation is not required under U.S. GAAP and all US$ convenience translation amounts in the accompanying
consolidated financial statements are unaudited.
(f)
Cash and cash equivaletns
Cash and cash equivalents includes currency
on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains all of its bank accounts in
the PRC. The Company's cash balances in these bank accounts in the PRC are not insured by the Federal Deposit Insurance Corporation
or other programs.
(g)
Restricted cash
In connection with the Company's
newly launched prepaid payment network service business, the Company is required to make an initial one-year security deposit with designated
PRC banks in order to be eligible to issue prepaid gift and debit cards to customers. Security deposit is based on
1
% of the estimated
proceeds to be collected from the prepaid card issuance and is subject to adjustment as be determined by the PRC banks based on actual
sales volume of the prepaid cards. As of December 31, 2021 and 2022, the Company has not issued any prepaid cards to customers. The Company
records such security deposit as restricted cash.
(h)
Accounts receivable net
Accounts receivable net include service
fees generated from the Company's loan recommendation and prepaid payment network services.
The Company reduces accounts receivable
by recording an allowance for doubtful accounts to account for the estimated impact of collection issues resulting from a client's
inability or unwillingness to pay valid obligations to the Company. The Company determines the adequacy of allowance for doubtful accounts
based on individual account analysis, historical collection trend, and best estimate of specific losses on individual exposures. The Company
establishes a provision for doubtful receivable when there is objective evidence that the Company may not be able to collect amounts due.
Actual amounts received may differ from management's estimate of credit worthiness and the economic environment. Delinquent account
balances are written-off against the allowance for doubtful accounts after the management has determined that the likelihood of collection
is not probable. As of December 31, 2022 and 2021, there was US$
59,444
and US$
54,896
allowance recorded as the Company considers all of
the accounts receivable fully collectible.
(i)
Plant and equipment, net
Plant and equipment are stated at cost
less accumulated depreciation and any recorded impairment.
Gains or losses arising from the disposal
of an item of plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item
and are recognized in profit or loss on the date of disposal.
The estimated useful lives are presented
below.
Office equipment and furniture
3
-
5
years
Transportation vehicles
3
-
5
years
Leasehold improvement
Lesser of useful life and lease term
Depreciation on plant and equipment
is calculated on the straight-line method over the estimated useful lives of the assets.
Expenditures for maintenance and repairs,
which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and
betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets
retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of comprehensive
income in other income (expenses).
F-
13
(j)
Intangible assets
Purchased intangible assets are initially
measured at cost. Following initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated
impairment losses. Intangible assets with finite lives are amortised over the useful life and assessed for impairment whenever there is
an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with
a finite useful life are reviewed at each financial year end. Intangible assets, excluding development costs, created within the business
are not capitalised and expenditure is charged against profits in the period in which the expenditure is incurred.
The Company's intangible assets
with definite useful lives primarily are purchased software. The Company typically amortizes intangible assets with definite useful lives
on a straight-line basis over estimated useful lives of ten years.
(k)
Impairment of long-lived assets
Long-lived assets with finite lives,
primarily property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset's
carrying value, then the asset is deemed to be impaired and written down to its fair value. There were no impairments of these assets
as of December 31, 2022 and 2021.
(l)
Fair value of financial instruments
The Group applies ASC 820, Fair Value
measurements and Disclosures, for fair value measurements financial assets and financial liabilities and for fair value measurements of
non-financial items that are recognized or disclosed at fair value in the financial statements on a recurring and non-recurring basis.
ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required
or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and
it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 also establishes a framework
for measuring fair value and expands disclosures about fair value measurements.
ASC 820 establishes a fair value hierarchy
that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
ASC 820 establishes three levels of inputs that may be used to measure fair value.
The hierarchy gives the highest priority
to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements
involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
●
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date.
●
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
●
Level 3 inputs are unobservable inputs for the asset or liability.
The level in the fair value hierarchy
within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement
in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the
fair value measurement reflects management's own judgments about the assumptions that market participants would use in pricing the
asset or liability. Those judgments are developed by management based on the best information available in the circumstances.
Unless otherwise disclosed, the fair
value of the Company's financial instruments, including cash, restricted cash, accounts receivable, prepaid expenses and other current
assets, accounts payable, deferred revenue and accrued expenses and other current liabilities approximate the fair value of the respective
assets and liabilities as of December 31, 2022 and 2021 based upon the short-term nature of the assets and liabilities. The balance of
due to related parties also approximate the fair value because it was paid by cash from related parties to the Company as working capital.
F-
14
The functional currency for Sentage
and Sentage HK is the United States dollar ("US$"). However, Sentage, and Sentage HK currently only serve as the holding companies
and did not have active operations as of the date of this annual report. The Company operates its business through its VIEs in the PRC
as of December 31, 2022. The functional currency of the Company's VIEs is the Chinese Yuan ("RMB"). The Company's
consolidated financial statements have been translated into US$. Assets and liabilities accounts are translated using the exchange rate
at each reporting period end date. Equity accounts are translated at historical rates. Income and expense accounts are translated at the
average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income.
Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations.
The RMB is not freely convertible into
foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that
the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.
The following table outlines the currency
exchange rates that were used in creating the consolidated financial statements in this report:
As
of December 31,
2021
2022
Year-end spot rate
US$1=RMB 6.3757
US$1=RMB 6.8972
Average rate
US$1=RMB 6.4508
US$1=RMB 6.7290
(m)
Revenue recognition
On January 1, 2018, the Company adopted
Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with customers", using the modified retrospective
approach.
The Company adopted ASC 606, "Revenue
from Contracts with Customers" for all periods presented. Consistent with the criteria of ASC 606, the Company follows five steps
for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract,
(iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize
revenue when (or as) the entity satisfies a performance obligation.
The primary sources of the Group's
revenues are as follows:
(1)
Revenue from consumer loan repayment and collection management services
Loans facilitated through the Company
were consumer loan products ranging from
30,000
RMB (approximately $
4,342
) to
80,000
RMB (approximately US$
11,579
). Loan term ranges from
one year
to
four years
. All the Company's clients are individual customers who entered into service agreements with the Company.
All these loans were facilitated through the Company's offline loan recommendation services before November 2017. Since November
2017, the Company has not provided any intermediary services for any new customers in anticipation of changes in related governing regulations
in China, and the Company has been focusing on providing services related to consumer loan repayment and collection management to its
customers. These consumer loan repayment and collection management services are a part of the Company's service obligation in its
service agreements with its customers. Pursuant to the service agreements, customers authorized the Company to monitor and manage the
repayment and collection process of outstanding loans for a fixed service fee, which was paid upfront by customers. The Company is required
to monitor loans within the loan term to ensure timely repayment of loans when they become due. Pursuant to the Company's agreements
with customers, loan repayment and collection management services are parts of bundled services offered by the Company to customers for
a fixed fee and are not capable of being distinct because the Company is required to concurrently monitor and manage the repayment and
collection process of outstanding loans to be entitled to receive a fixed service fee. As a result, loan management services and collection
management services are not separately identifiable in the context of the contract and accordingly are treated as a bundled single performance
obligation. There is no variable consideration in the contract. Once a specific loan is repaid on time, the Company's service obligation
related to such loan is satisfied. When a loan becomes delinquent, the Company is then required to assist in collection efforts for an
extended service period of 12 months starting on the day such loan becomes delinquent. No additional fee can be charged for collection
management services provided to delinquent loans beyond the initial fixed fee agreed. If all or a part of the loan is still not repaid
after all collection management efforts are exhausted within such required service period, the Company's service obligation related
to such loan is satisfied and the Company is not responsible for any loss from an uncollectible loan.
F-
15
The Company's loan repayment and
collection management services primarily include reconciling borrower repayment record and sending payment reminder and notice periodically,
facilitating repayment upon maturity and collaborating with third-party collection agents and law firms in the event of delinquency etc.
Loan repayment and collection management fees received from the customers upfront are deferred first, and then ratably recognized as revenue
over the loan terms or an extended service period of 12 months starting on the day such loan becomes delinquent, as the Company performs
designated services.
(2)
Revenue from services provided to borrower for loan recommendation
The Company started to provide recommendation
services where the Company recommends prospective borrowers to funding partners in June 2019. The Company's performance obligations
include making loan product recommendations to borrower applicants, processing paperwork related to borrowers' applications based
on their specific needs, evaluating credentials of borrower applicants, appraising borrowers' properties to be collateralized through
data analysis and on-site inspection, and recommending qualified borrowers to various funding partners for loan approval. The Company
receive a service fee from a borrower if he or she is approved for a loan and such loan is then funded by one of our funding partners.
The Company acquires borrowers through cooperating with third-party referral partners as well as through its own borrower development
efforts. For borrowers acquired through cooperating with third-party referral partners, pursuant to the service agreement between the
Company and the referral partners, referral partners first charge borrowers service fees for their referrals. The Company then charges
the referral partners a commission ranging from
1.5
% to
2
% based on the loan proceeds disbursed to the borrowers. For borrowers developed
directly by the Company, the Company charges the borrowers a service fee of
1.75
% to
3
% of the loan amount received by the borrowers.
Such revenue is recognized at the point when the Company's performance obligations are satisfied and the loan proceeds are disbursed
to a specific borrower. For the years ended December 31, 2022, 2021 and 2020, the Company earned
nil
, $
1,177,822
and $
2,087,717
recommendation
service revenue, respectively.
Contract fulfillment costs associated
with loan recommendation services primarily consist of employee salary, bonus and business travel costs incurred by the Company to fulfill
its performance obligations. Contract fulfillment costs are only capitalized when the costs generate or enhance resources that will be
used in satisfying future performance obligations of the contract and the costs are expected to be recovered. For the years ended December
31, 2022 and 2021, the Company did not capitalize contract fulfillment costs, but expensed as incurred, due to immateriality of such costs.
(3)
Revenue from prepaid payment network services
In 2012, one of the Company's
VIE subsidiaries, Qingdao Buytop, was granted a third-party payment service license by the relevant authority in China. The Company started
to provide prepaid payment network services to merchant customers in August 2019. The Company is licensed to issue generic and branded
prepaid gift and debit cards and provide related services to various merchants, such as supermarket and department stores. In connection
with the prepaid payment network services, the Company expects to generate revenue from: (1) technology consulting and support services
fees related to payment solution planning, design, and management; (2) prepaid card payment services fees related to the issuance and
use of prepaid cards.
Technology consulting and support services
are short-term in nature, with service period ranging from one to three months, and related service fees are recognized as revenue at
point when payment solution, design and management services are rendered, completed and accepted by customers. For merchant customers
who need prepaid card payment services such as collecting and processing information necessary for prepaid card issuance and authorizing
transaction requests after verifying transaction information, the Company charges service fee equal to
0.3
% to
0.5
% of each transaction
amount and recognizes revenue at the point when the prepaid cards issued by merchant customers are used by their end user card holders.
For the years ended December 31, 2022, 2021 and 2020, the Company earned $
161,372
, $
928,565
and $
432,958
revenue from providing technology
consulting and support service revenue to customers, respectively.
F-
16
(n)
Income taxes
The Company 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.
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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period
including the enactment date. 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.
An uncertain tax position is recognized
only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized
is the largest amount of tax benefit that is greater than
50
% likely of being realized on examination. For tax positions not meeting the
"more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income
tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been
incurred during the years ended December 31, 2022, 2021 and 2020. The Company does not believe that there was any uncertain tax provision
on December 31, 2022, 2021 and 2020. The Company's subsidiary and VIEs in China are subject to the income tax laws of the PRC. No
significant income was generated outside the PRC for the fiscal years ended December 31, 2022, 2021 and 2020. As of December 31, 2022,
all of the tax returns of the Company's PRC subsidiary and VIEs remain available for statutory examination by PRC tax authorities.
(o)
Value added tax ("VAT")
The Company is a general taxpayer and
is subject to applicable VAT tax rate of
6
% . VAT is reported as a deduction to revenue when incurred. Entities that are VAT general taxpayers
are allowed to offset qualified input VAT tax paid to suppliers against their output VAT liabilities.
(p)
Earnings per Share
The Company computes earnings per share
("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with
complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common
shares outstanding for the period. Diluted presents the dilutive effect on a per share basis of potential common 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 common 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, 2022 and 2021, there were no dilutive shares.
F-
17
(q)
Statutory reserve
In accordance with the Company Laws
of the PRC, the PRC Entities registered as PRC domestic companies must make appropriations from its after-tax profit as determined under
the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation
to the statutory surplus fund must be at least
10
% of the after-tax profits as determined in accordance with the legal requirements in
the PRC. Appropriation is not required if the surplus fund has reached
50
% of the registered capital of the respective company. Appropriation
to the discretionary surplus fund is made at the discretion of the respective company.
The use of the statutory reserves are
restricted to the off-setting of losses or increasing capital of the respective company. All these reserves are not allowed to be transferred
to their investors in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation.
(r)
Comprehensive income
Comprehensive income consists of two
components, net income and other comprehensive income. The foreign currency translation gain or loss resulting from translation of the
financial statements expressed in RMB to US$ is reported in other comprehensive income in the consolidated statements of comprehensive
income.
(s)
Statement of Cash Flows
In accordance with ASC 230, "Statement
of Cash Flows", cash flows from the Company's operations are formulated based upon the local currencies using the average
exchange rate in the period. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not
necessarily agree with changes in the corresponding balances on the balance sheets.
(t)
Related parties and transactions
The Company identifies related parties,
and accounts for, discloses related party transactions in accordance with ASC 850, "Related Party Disclosures" and other relevant
ASC standards.
Parties, which can be a corporation
or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise
significant influence over the other party in making financial and operational decisions. Companies are also considered to be related
if they are subject to common control or common significant influence.
Transactions between related parties
commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties
are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide
accounting or measurement guidance for such transactions, it nonetheless requires their disclosure.
(u)
Right-of-use assets, net
In February 2016, the Financial Accounting
Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which is
effective for annual reporting periods (including interim periods) beginning after December 15, 2018, and early adoption is permitted.
The Company, through its subsidiary,
leases its offices, which are classified as operating leases in accordance with Topic 842. Operating leases are required to record in
the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company
has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts
as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and
(3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short-term lease exemption
as the lease terms are
12
months or less.
F-
18
At inception of a contract, the Company
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 Company
assesses 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 Company recognizes operating lease expenses on a straight-line basis over
the lease term and had no finance leases for any of the periods stated herein.
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. All right-of-use assets are reviewed for impairment
annually. No impairment for right-of-use lease assets as of December 31, 2022 and 2021.
(v)
Accrued expenses and other current liabilities
Accrued expenses and other current liabilities
include employee compensation payable, taxes payable and other payables.
employee compensation payable refers
to the salary, social security, provident fund and bonus payable to the Company's employees before the end of the current fiscal year.
taxes payable refers to the composition of VAT and surtax payable under PRC tax before the end of the fiscal year. Other payables mainly
deposit, service fees, etc.
(w)
Recent Adopted Accounting Pronouncements
In October 2021,
the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts
with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract
liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective
for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied
prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The
Company is currently evaluating the impact of the new guidance on the consolidated financial statements.
In November 2021, the FASB issued ASU
2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance", which provides
guidance on the disclosure of transactions with a government that are accounted for by applying a grant or contribution accounting model
by analogy. The new guidance is required to be applied either prospectively to all transactions within the scope of ASU 2021-10 that are
reflected in financial statements at the date of adoption and new transactions that are entered into after the date of adoption or retrospectively
to those transactions. This guidance is effective for the Company for the year ending March 31, 2023. Early adoption is permitted. The
Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations
and cash flows.
In June 2022, the FASB issued ASU 2022-03,
"Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions",
which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the
equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate
unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities
subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption
of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company for the year
ending March 31, 2025 and interim reporting periods during the year ending March 31, 2025. Early adoption is permitted. The Company does
not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows.
The Company does not believe other recently
issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's unaudited
condensed consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.
F-
19
3.
Cash and cash equivalents
Cash and cash equivalents, consist of the following:
As of December 31,
2021
2022
USD
USD
Cash at bank
$
10,753,049
$
3,805,103
Cash on hand
69
32
Total
$
10,753,118
$
3,805,135
The carrying amounts of the Company's
bank and cash balances are denominated in the following currencies:
As of December 31,
2021
2022
USD
USD
RMB
$
642,036
$
139,688
USD
10,111,082
3,665,447
Total
$
10,753,118
$
3,805,135
Conversion of RMB into foreign currencies
is subject to the PRC's Foreign Exchange Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange
Regulations.
4.
Accounts receivable, net
Accounts receivable, net, consist of the following:
As of December 31,
2021
2022
USD
USD
Accounts receivable associated with loan recommendation services
$
11,594
$
-
Accounts receivable associated with prepaid payment network services
447,010
492,954
Less: Allowance for doubtful debts
(
54,896
)
(
59,444
)
Accounts receivable, net
$
403,708
$
433,510
The Company's accounts receivable
includes service fees generated through providing loan recommendation and prepaid payment network services to customers. As of December
31, 2022 and 2021, the Company had accounts receivable balance of $
433,510
and $
403,708
, respectively. The allowance for doubtful accounts
were $
59,444
and $
54,896
as of December 31, 2022 and 2021.
F-
20
5.
Loan receivable
On July 8, 2021, the Company entered
into an agreement with Fortune Access Development Corporation, a British Virgin Island corporation, to purchase a one-year note with principal
of $
5.5
million at
3
% per annum. As of December 31, 2022, the outstanding loan receivable was $
5,500,000
with unsecured. As of April 16,
2023, the Company collected back all the loan receivable.
6.
Prepaid expenses and other current assets
The prepaid expenses and other current assets consist of
the following:
As of December 31,
2021
2022
USD
USD
Prepaid expenses and other current assets
Advance to suppliers (i)
$
65,171
$
48,710
Other receivable, net (ii)
442,050
4,523,688
Value-added Tax ("VAT") recoverable (iii)
7,841
7,248
Total
$
515,062
$
4,579,646
(i)
Advance to suppliers represents balance paid to vendors for certain services that have not been completed. These advances are interest free, unsecured and short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. As of December 31, 2022 and 2021, there was no allowance recorded as the Company considers all of the advance to suppliers balance fully realizable.
(ii)
Other receivable primarily includes advances to employees for business
development and security deposits paid for third-party payment platforms. This primarily represents a deposit of $
3.57
million paid by
the Company in March 2022 for the commissioned acquisition of an e-commerce technology services business. As of December 31, 2022 and
2021, there was no allowance recorded as the Company considers all of the other receivable balance fully collectible.
(iii)
VAT tax recoverable represents the amount that is overpaid by the Company before the VAT tax invoices received. Such amount can be used to offset future VAT tax liability.
7.
Plant and equipment, net
Plant and equipment consists of the following:
As of December 31,
2021
2022
USD
USD
Cost:
Office equipment and furniture
$
492,985
$
363,991
Transportation vehicles
62,066
57,373
Total cost
$
555,051
$
421,364
Less: Accumulated depreciation
(
434,771
)
(
368,341
)
Plant and equipment, net
$
120,280
$
53,023
Depreciation expense was $
25,464
, $
23,370
and $
13,022
for the years ended December 31, 2022, 2021 and 2020, respectively.
F-
21
8.
Intangible assets, net
Intangible assets primarily consist
of accounting software, which is amortized based on straight-line method over use life of
5
to
10
years.
Intangible assets, net, consist of the following:
As of December 31,
2021
2022
USD
USD
Software
$
347,484
$
457,640
Total cost
$
347,484
$
457,640
Less: Accumulated amortization
(
316,937
)
(
368,165
)
Intangible assets, net
$
30,547
$
89,475
Amortization expense was $
17,212
,
$
39,601
and $
40,498
for the years ended December 31, 2022, 2021 and 2020, respectively.
9.
Operating leases
The Group has leased office premises
and buildings under non-cancellable operating lease agreements. These leases have different terms and renewal rights
The following table presents balances
reported in the consolidated balance sheets related to the Company's leases:
As of December 31,
2021
2022
USD
USD
Right-of-use asset, net
$
-
$
162,270
Operating lease liabilities, current
-
87,129
Operating lease liabilities, non-current
-
74,384
Total operating lease liabilities
$
-
$
161,513
The following table presents operating lease cost reported in the consolidated
statements of comprehensive loss related to the Company's leases:
Year
ended
December 31,
2022
USD
Operating lease cost
$
19,199
Short-term lease cost
24,967
Total
44,166
For the year ended December 31, 2022,
the Group incurred rental expenses under operating leases US$
19,199
.
The following table reconciles the undiscounted
cash flows of the Company's leases as of December 31, 2022 to the present value of its operating lease payments:
For the year ending December 31
USD
2023
$
92,684
2024
75,832
Total undiscounted operating lease payments
168,516
Less: imputed interest
(
7,003
)
Present value of operating lease liabilities
161,513
F-
22
10.
Income tax
(a)
Cayman Islands
Under the current tax laws of the Cayman
Islands, the Company is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed
upon the payment of dividends by the Company to its shareholders.
(b)
Hong Kong Profits Tax
Sentage HK is incorporated in Hong Kong
and is subject to profit taxes in Hong Kong at a rate of
16.5
%. However, Sentage HK did not generate any assessable profits arising in
or derived from Hong Kong for the fiscal years ended December 31, 2022, 2021 and 2020, and accordingly no provision for Hong Kong profits
tax has been made in these periods.
(c)
PRC Enterprise Income Tax ("EIT")
On March 16, 2007, the National People's
Congress of the PRC enacted the Enterprise Income Tax Law ("EIT Law"), under which domestic companies would be subject to
Enterprise Income Tax ("EIT") at a uniform rate of
25
%. The EIT Law became effective on January 1, 2008.
Sentage WFOE, Daxin Wealth, Daxin Zhuohui,
Qingdao Buytop and Zhenyi are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws ("EIT Laws")
and are taxed at the statutory income tax rate of
25
%.
Under the EIT Law and its implementation
rules, an enterprise established outside China with a "place of effective management" within China is considered a China resident
enterprise for Chinese enterprise income tax purposes. A China resident enterprise is generally subject to certain Chinese tax reporting
obligations and a uniform
25
% enterprise income tax rate on its worldwide income. The implementation rules to the New EIT Law provide
that non-resident legal entities are considered PRC residents if substantial and overall management and control over the manufacturing
and business operations, personnel, accounting, properties, etc., occur within the PRC. Despite the present uncertainties resulting from
the limited PRC tax guidance on the issue, the Company does not believe that the legal entities organized outside the PRC should be treated
as residents for 2008 EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered
outside the PRC are deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC
income tax at a rate of
25
%.
If the Company were to be non-resident
for PRC tax purposes, dividends paid to it from profits earned by the PRC operating entities after January 1, 2008 would be subject to
a withholding tax. The EIT law and its relevant regulations impose a withholding tax at
10
%, unless reduced by a tax treaty or agreement,
for dividends distributed by a PRC-resident enterprise to its non-PRC-resident corporate investor for earnings generated beginning on
January 1, 2008. Earnings generated prior to January 1, 2008 are exempt from such withholding tax. The Company has not recognized any
deferred tax liability for the undistributed earnings of the PRC-resident enterprise as of December 31, 2022, 2021 and 2020, as the Company
plans to permanently reinvest the earnings generated before December 31, 2022 in the PRC.
Income tax returns of PRC Entities are
filed on an individual entity basis. The PRC Entities have calculated their income tax provision using the separate return method in these
consolidated financial statements.
F-
23
Income taxes provision
Income tax expense consists of the following:
Year ended December 31,
2020
2021
2022
USD
USD
USD
Current income tax expense
$
592,701
$
257,344
$
-
Deferred income tax benefit
-
-
-
Total
$
592,701
$
257,344
$
-
The following
table reconciles the PRC statutory rates to the Company's effective tax rate for the years ended December 31, 2022, 2021 and 2020:
Year ended December 31,
2020
2021
2022
USD
USD
USD
China Income tax statutory rate
25.0
%
25.0
%
(
25
%)
Nondeductible expenses-permanent difference
0.1
%
0.1
%
0.1
%
Change in valuation allowance
2.1
%
6.5
%
24.9
%
Effective tax rate
27.2
%
31.6
%
-
Deferred taxes
The Company's deferred tax assets are comprised of
the following:
As of December 31,
2021
2022
USD
USD
Deferred tax assets
Deferred tax assets derived from net operating loss ("NOL") carry forwards and deferred revenue
$
13,724
$
650,601
Total gross deferred tax assets
13,724
650,601
Valuation allowance on deferred tax assets
-
(
637,915
)
Deferred tax assets, net of valuation allowance
$
13,724
$
12,686
The Company follows ASC 740, "Income
Taxes", 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 or tax returns. Under this method, deferred income taxes are recognized for the tax
consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each
period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect
taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
The Company's deferred tax assets
primarily derived from the net operating loss ("NOL") and deferred revenue that can be carried forward to offset future taxable
income. As the Company ended its offline loan recommendation business in the end of 2017, management concluded that the chances for the
Company's VIEs, Daxin Wealth and Daxin Zhuohui, to utilize their net operating loss carry forwards carry forwards were remote. Accordingly,
a valuation allowance of approximately $
1.2
million has been provided against part of the deferred tax assets associated with the NOL
carryforwards that occurred prior to December 31, 2016 due to expiration of some of loss carryforwards. As of December 31, 2022 and 2021,
the Company had deferred tax assets balance of $
12,686
and $
13,724
, respectively. In connection with the newly added loan recommendation
services and prepaid payment network services, management believes that the Company will continue to generate sufficient taxable income
in the 2023 fiscal year. Therefore, the Company believes that it can utilize the remaining deferred tax asset to offset future taxable
income.
F-
24
Uncertain tax positions
The Company evaluates each uncertain
tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized
benefits associated with the tax positions. As of December 31, 2022 and 2021, the Company did not have any significant unrecognized uncertain
tax positions. The Company did not incur any interest or penalties tax for the years ended December 31, 2022, 2021 and 2020. The Company
does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months from December 31, 2022.
As of December 31, 2022, all the tax returns of the Company's PRC subsidiary and VIEs remain available for statutory examination
by PRC tax authorities.
11.
Accrued expenses and other current liabilities
Accrued expenses and other payables
consist of the following:
As of December 31,
2021
2022
USD
USD
Accrued expenses and other current liabilities
Deposits received from customers
$
27,615
$
20,592
Accrued expenses
90,491
36,883
VAT and other taxes payable
216,516
200,342
Payroll payable
45,369
51,184
Total
$
379,991
$
309,001
12.
Related party transactions
Due to related party
Due to a related party consists of the following:
As of December 31,
Name
Related party relationship
2021
2022
USD
USD
Qiaoling Lu
CEO and controlling shareholder of the Company
$
161,020
$
4,709
Total due to a related party
$
161,020
$
4,709
As of December 31, 2022 and 2021, the
balance due to a related party in the amount of $
4,709
and $
161,020
, respectively, was loan advance from the Company's controlling
shareholder and was used as working capital during the Company's normal course of business.
13.
Concentrations
A majority
of the Company's revenue and expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries'
assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange
transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People's
Bank of China ("PBOC"). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC
or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.
As of December 31, 2022 and 2021, $
3,805,103
and $
10,753,049
of the Company's cash was on deposit at financial institutions in the PRC where there currently is no rule or regulation
requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. For the years ended December
31, 2022, 2021 and 2020, the Company's substantial assets were located in the PRC and the Company's substantial revenues were
derived from its subsidiaries and VIEs located in the PRC.
F-
25
For the year
ended December 31, 2022, one customer accounted for more than
52.2
% of the Company's total revenue..
For the years ended December2021 and
2020, no single customer accounted for more than
10
% of the Company's total revenue.
As of December 31, 2022, one customer
accounted for
63.2
% of the total accounts receivable balance. As of December 31, 2021, one customer accounted for
73.8
% of the total accounts
receivable balance.
14.
Shareholders' equity
Ordinary shares
Sentage Holdings was incorporated as
an exempted company with limited liability under the laws of the Cayman Islands on September 16, 2019. The original authorized number
of Ordinary Shares was
50,000
shares with par value of $
1.00
per share and
10,000
shares were issued and outstanding. On September 2,
2020, the Company amended its Memorandum of Association to subdivide the authorized shares from
50,000
shares at par value of $
1.00
per
share to
50,000,000
shares of Ordinary Shares with par value of $
0.001
per share, and subdivide the already issued
10,000
shares to
10,000,000
shares at par value of $
0.001
per share As a result of this forward split, there is a total of
10,000,000
Ordinary Shares issued and outstanding.
The issuance of these
10,000,000
shares is considered as a part of the Reorganization of the Company, which was retroactively applied
as if the transaction occurred at the beginning of the period presented (see Note 1).
On August 10, 2022, the Company's authorized
ordinary shares was consolidated at the ratio of five-for-one and the Company's authorized capital stock became $
50,000
divided into
10,000,000
ordinary shares of $
0.005
per share.
From the legal perspective, the Reverse
Split applied to the issued shares of the Company on the date of the Reverse Split and does not have any retroactive effect on the Company's
shares prior that date. However, for accounting purposes only, references to our ordinary shares in this annual report are stated as having
been retroactively adjusted and restated to give effect to the Reverse Split, as if the Reverse Split had occurred by the relevant earlier
date.
Restricted net assets
Relevant PRC laws and regulations restrict
the Company's PRC subsidiary and VIEs from transferring a portion of their net assets, equivalent to their statutory reserves and
their share capital, to the Company in the form of loans, advances or cash dividends. Only PRC entities' accumulated profits may
be distributed as dividends to the Company without the consent of a third party.
The payment of dividends by entities
organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends
only out of accumulated profits as determined in accordance with accounting standards and regulations in China. The results of operations
reflected in the consolidated financial statements prepared in accordance with U.S GAAP differ from those in the statutory financial statements
of the WFOE and VIEs. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated
by State Administration of Foreign Exchange.
In light of
the foregoing restrictions, Sentage WFOE and the VIEs are restricted in their ability to transfer their net assets to the Company. Foreign
exchange and other regulations in the PRC may further restrict Sentage WFOE and VIEs from transferring funds to the Company in the form
of dividends, loans and advances. As of December 31, 2022 and 2021, restricted net assets of Sentage WFOE and VIEs amounted to $
846,905
and $
538,177
, respectively.
F-
26
15.
Commitment and Contingencies
(a)
Contingencies
From time to
time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated
with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss
contingencies are expensed as incurred. The Company's management does not expect any liability from the disposition of such claims
and litigation individually or in the aggregate to have a material adverse impact on the Company's consolidated financial position,
results of operations and cash flows.
(b)
Lease commitments
The Company's VIEs Daxin Wealth,
Daxin Zhuohui, and Qingdao Buytop, entered into operating lease agreements with landlords to lease office space in Shanghai and Qingdao.
The following table sets forth our contractual
obligations as of December 31, 2022：
Year ended December 31,
Total
2023
2024
USD
USD
USD
Operating lease commitments for Lease expense under lease agreements
$
178,392
102,560
75,832
Operating lease commitments for property management expenses under lease agreements
22,980
13,581
9,399
16.
Segment reporting
An operating segment is a component
of the Company 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 Company's chief operating decision maker in
order to allocate resources and assess performance of the segment.
In accordance with ASC 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 Company uses the "management approach" in determining reportable operating segments.
The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for
making operating decisions and assessing performance as the source for determining the Company's reportable segments. Management,
including the chief operating decision maker, reviews operation results by the revenue of different services. Based on management's
assessment, the Company has determined that it has three operating segments as defined by ASC 280, including Consumer Loan Repayment and
Collection Management Services, Loan Recommendation Services and Prepaid Payment Network Services.
The following tables present summary
information by segment for the years ended December 31, 2022, 2021 and 2020, respectively:
Year ended December 31, 2020
Consumer loan
repayment
and collection
management
services
Loan
recommendation
services
Prepaid
payment
network
services
Others
Total
Revenue
1,074,734
2,087,717
432,958
-
3,595,409
Operating expenses
422,963
821,624
170,392
-
1,414,979
Income from operations
651,771
1,266,093
262,566
-
2,180,430
Income tax expense
177,169
344,159
71,373
-
592,701
Net income
474,496
921,728
191,151
-
1,587,375
Depreciation and amortization
6,836
11,521
35,163
-
53,520
Capital expenditure
-
-
-
-
-
Total assets
694,874
1,174,137
915,577
-
2,784,588
F-
27
Year ended December 31, 2021
Consumer loan
repayment
and collection
management
services
Loan
recommendation
services
Prepaid
payment
network
services
Others
Total
Revenue
156,062
928,565
1,177,822
-
2,262,449
Operating expenses
508,772
20,717
236,039
2,275,887
3,041,415
Income (loss) from operations
(
352,710
)
907,848
941,783
(
2,275,887
)
(
778,966
)
Income tax expense
14,783
109,732
132,827
-
257,342
Net income (loss)
(
367,692
)
798,054
754,814
(
2,278,417
)
(
1,093,241
)
Depreciation and amortization
1,347
9,997
51,627
-
62,971
Capital expenditure
-
-
6,722
-
6,722
Total assets
(
3,715,787
)
4,011,568
1,629,846
$
15,441,081
17,366,708
Year ended December 31, 2022
Consumer loan
repayment
and collection
management
services
Loan
recommendation
services
Prepaid
payment
network
services
Others
Total
Revenue
-
-
161,372
-
161,372
Operating expenses
-
244,629
297,550
2,190,200
2,732,379
Income (loss) from operations
-
(
244,629
)
(
136,178
)
(
2,190,200
)
(
2,571,007
)
Net income (loss)
112
(
244,799
)
(
144,833
)
(
2,172,387
)
(
2,561,907
)
Depreciation and amortization
-
-
42,676
14,752
57,428
Capital expenditure
-
-
34,346
-
34,346
Total assets
8,328
51,321
1,536,973
13,062,212
14,658,834
17.
Subsequent events
No subsequent event which had a material
impact on the Company was identified through the date of issuance of the financial statements.
F-28