Webus International Limited's Business Segments

Webus International Limited is an exempted holding company incorporated in the Cayman Islands with no significant operations of its own. Its business activities are primarily conducted through its wholly-owned subsidiary Wetour in the United States, its direct investment in Zhejiang Youba Technology Co., Ltd. (Youba Tech), and its subsidiary, as well as through Variable Interest Entity (VIE) agreements with Youba Tech. Youba Tech, organized under the laws of the People's Republic of China (PRC), and its subsidiary Hangzhou Webus Travel Agency Co., Ltd. conduct a substantial portion of the business in China using Chinese yuan (RMB). Webus consolidates Youba Tech's financial results in its financial statements under U.S. GAAP, despite holding only a 50% equity interest and 50% VIE interests through contractual agreements. The VIE structure provides contractual exposure to foreign investment in China-based companies without representing full equity ownership. The company's operations encompass technology and travel-related services through its subsidiaries and VIE entities. Consolidated financial statements are presented in RMB, with U.S. dollar amounts provided for convenience. Webus's corporate structure includes subsidiaries formed under the laws of the Cayman Islands, British Virgin Islands, Hong Kong, PRC, and the United States.

The Group operates as a single segment, as identified by the Chief Executive Officer, who serves as the Chief Operating Decision Maker (CODM). The Group does not differentiate between markets or segments for internal reporting purposes. The CODM evaluates consolidated results to allocate resources and assess overall Group performance. Asset management is conducted on a consolidated basis, with consolidated net loss used as the measure of segment profit or loss. Major segment expenses include cost of revenues, sales and marketing expenses, general and administrative expenses, and research and development expenses, consistent with the consolidated statements of operations and comprehensive loss.