{"url_path":"/sec/pom/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1877971/0001213900-26-056576-index.html","accession_number":"0001213900-26-056576","cik":"0001877971","ticker":"POM","issuer_name":"POMDOCTOR Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1877971/0001213900-26-056576-index.html","primary_entity_key":"0001877971","primary_entity_name":"POMDOCTOR Ltd"},"word_count":766,"has_tables":true,"body_markdown":"ITEM 11.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK\n\n \n\n**Risks in relation to the VIE structure**\n\n \n\nWe believe that the contractual\narrangements with the VIE and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable.\nHowever, uncertainties in the PRC legal system could cause the relevant regulatory authorities to find the current contractual agreements\nand businesses to be in violation of any existing or future PRC laws or regulations. If we, our WFOE or any of our current or future VIE\nare found in violation of any existing or future laws or regulations, or fail to obtain or maintain any of the required permits or approvals,\nthe relevant PRC regulatory authorities would have broad discretion in dealing with such violations, which may include, but not limited\nto, revocation of business and operating licenses, being required to discontinue or restrict its business operations, restriction of the\nour right to collect revenues, being required to restructure its operations, imposition of additional conditions or requirements with\nwhich we may not be able to comply, or other regulatory or enforcement actions against us that could be harmful to its business. The imposition\nof any of these or other penalties may result in a material and adverse effect on our ability to conduct its business. In addition, if\nthe imposition of any of these penalties causes us to lose the rights to direct the activities of the VIE or the right to receive their\neconomic benefits, we would no longer be able to consolidate the VIE.\n\n \n\nIn addition, if the VIE or\nthe nominee shareholders fail to perform their obligations under the contractual agreements, we may have to incur substantial costs and\nexpend resources to enforce the primary beneficiary’s rights under the contracts. We may have to rely on legal remedies under PRC\nlaws, including seeking specific performance or injunctive relief and claiming damages, which may not be effective. All of the contractual\nagreements are governed by PRC laws and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these\ncontracts would be interpreted in accordance with PRC laws and any disputes would be resolved in accordance with PRC legal procedures.\nThe legal system in PRC is not as developed as in other jurisdictions, such as the United States. As a result, the requirements under\nthe PRC legal system could limit our ability to enforce these contractual arrangements. Under PRC laws, rulings by arbitrators are final,\nparties cannot appeal the arbitration results in courts, and prevailing parties may only enforce the arbitration awards in PRC courts\nthrough arbitration award recognition proceedings, which would incur additional expenses and delay. In the event that we are unable to\nenforce the contractual agreements, the primary beneficiary may not be able to exert effective control over its VIE, and our ability to\nconduct its business may be negatively affected.\n\n \n\n133\n\n \n\n** **\n\n**Concentrations and Credit Risk**\n\n \n\nCertain financial\ninstruments, which subject us to concentration of credit risk, consist of cash and restricted cash. We have cash balances at\nfinancial institutions located in PRC. Since March 31, 2015, balances at financial institutions and state-owned banks\nwithin the PRC are covered by insurance up to RMB500,000 (US$71,499) per bank. As of December 31, 2024 and 2025, we had\ndeposits totaling RMB7,596,724 and RMB9,445,239 (US$1,350,651) that were covered by such limited insurance, respectively. Any\nbalance over RMB500,000 (US$71,499) per bank in PRC will not be covered. To date, we have not experienced any losses in such\naccounts.\n\n \n\nFor years ended December 31,\n2025, there was one customer collectively accounted for 45.8% of the Group’s total revenue; as of December 31, 2025, there were\ntwo customers accounted for 64.9% of the Group’s gross accounts receivable. For the year ended December 31, 2024, there was one\ncustomer accounted for 44.6% of our net revenues; and as of December 31, 2024, there was one customer accounted for 13.6% of our gross’s\naccounts receivable. No other customers account for 10% or more of total revenue or gross account receivable of the Group except as disclosed\nabove.\n\n \n\nFor years ended December\n31, 2025, there was two suppliers accounted for 60.6% of the Group’s total purchases; as of December 31, 2025, there were four suppliers\naccounted for 60.4% of the Group’s accounts payable. For the year ended December 31, 2024, there was one supplier accounted for\n39.1% of our total purchases; as of December 31, 2024, there was one supplier accounted for 22.5% of our accounts payable. No other suppliers\naccount for 10% or more of total purchase or account payable of the Group except as disclosed above."}