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Related Party Transactions | 12 Months Ended
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Dec. 31, 2021
Related Party Transactions [Abstract] |
RELATED PARTY TRANSACTIONS |
18. | RELATED PARTY TRANSACTIONS
Name |  | Relationship with the Group
Mr. Chen |  | Founder
Xiaomi |  | Shareholder of the Group
Foshan Wanwuhulian Trade Co., Ltd. (“Foshan Wanwuhulian”) |  | Controlled by the Founder
The Group’s relationship with Xiaomi Xiaomi is the Group’s strategic partner and shareholder. The Group’s sales to Xiaomi are governed by a business cooperation agreement, pursuant to which Xiaomi is responsible for the distribution and sales of such products through their network and sales channels. The Group also sells products through Xiaomi’s online e-commerce channel Xiaomiyoupin.com, and is charged of commissions pursuant to a commission sales agreement. Transaction with Xiaomi Business cooperation agreement The current business corporation agreement entered into in 2019 with Xiaomi governs all the Group’s sales to Xiaomi. It expired in September 2021 and has been renewed up to September 2023. Under the business cooperation agreement, (i) certain products sold to Xiaomi are exclusively designed for and can only be sold to Xiaomi, (ii) Xiaomi shall purchase these products at a price that covers all of the Group’s costs of raw materials, outsourcing manufacture, models, logistics and paid intellectual property licensing fees, in connection with the manufacture and delivery of these products, and (iii) Xiaomi and the Group shall share gross profits, derived from sales of these products, the retail prices of which were set by Xiaomi and the Group together. In 2019, the Group has entered into a service arrangement with Xiaomi for a particular type of product under which the Group acts as the agent of Xiaomi. The Group charges Xiaomi with reference to market price. This service arrangement was terminated at the end of 2020.
18. | RELATED PARTY TRANSACTIONS (Continued)
Youpin commission sales agreement The Group has entered into a commission sales agreement with Xiaomi for the sale of the Group’s own branded products on an E-platform operated by Xiaomi, namely Youpin. The commission sales agreement expired on December 31, 2021. The agreement has been renewed in 2022 and the end date will be determined through further negotiations. Furthermore, this agreement may be terminated by Xiaomi with 30 days’ written notice. Under the commission sales agreement, the Group shall pay a service fee, calculated as certain portion of the sales price excluding customers’ refunds or as otherwise agreed by the parties with respect to specific product lines, as well as a deposit to Xiaomi. The retail prices of the Group’s products on Youpin’s platform shall be no higher than the sales price from any other e-commerce merchants or the Group’s official offline sales channel, including in the event of sales or promotion. Refer to Note 18 (5) to the consolidated financial statements for the commission expenses charged by Youpin for the years ended December 31, 2019, 2020 and 2021.
(1) | Amount due from/to related parties
|  | As of December 31, |
|  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |
Accounts receivable from a related party: |  |  |  |  |  |  |  |
Xiaomi(a) |  |  | 609,094 |  |  | 320,939 |
Other receivables from related parties: |  |  |  |  |  |  |  |
Sales receivable from Xiaomi(b) |  |  | 88,029 |  |  |  | 88,331 |
Other receivables from Xiaomi |  |  | 9 |  |  |  | 36 |
Total |  |  | 88,038 |  |  |  | 88,367 |
Amounts due to related parties: |  |  |  |  |  |  |  |
Purchase payable to Xiaomi(a) |  |  | 2,463 |  |  |  | 3,537 |
Purchase payable to Foshan Wanwuhulian(c) |  |  | 121,321 |  |  |  | - |
Research and development expenses payable to Xiaomi |  |  | 408 |  |  | 715 |
Selling and marketing expenses payable to Xiaomi(d) |  |  | - |  |  | 1,163 |
Total |  |  | 124,192 |  |  | 5,415 |
(2) | Purchase from related parties
|  | Year ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |
Xiaomi(a) |  |  | 43,037 |  |  |  | 50,843 |  |  |  | 33,767 |
Foshan Wanwuhulian(c) |  |  | 15,422 |  |  |  | 469,950 |  |  |  | - |
Total |  |  | 58,459 |  |  |  | 520,793 |  |  |  | 33,767 |
(3) | Revenue from a related party
|  | Year ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |
Xiaomi(a) |  |  | 2,112,170 |  |  |  | 2,889,441 |  |  |  | 2,295,569 |
(4) | Research and development expenses
|  | Year ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |
Xiaomi |  |  | 657 |  |  |  | 1,915 |  |  |  | 3,484 |
1 8. | RELATED PARTY TRANSACTIONS (Continued)
(5) | Selling and marketing expenses
|  | Year ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |
Commission expenses charged by Xiaomi(b) |  |  | 58,874 |  |  |  | 77,163 |  |  |  | 82,617 |
Other expenses charged by Xiaomi(b) |  |  | 22,977 |  |  |  | 20,060 |  |  |  | 24,312 |
Total |  |  | 81,851 |  |  |  | 97,223 |  |  |  | 106,929 |
| (a) | The Group both sells water purifiers and other products to and purchase Xiaomi branded products and certain raw materials from Xiaomi. The amount due from Xiaomi represents receivable arising from sales of water purifiers and other products. The balance due to Xiaomi represents payable arising from purchase of Xiaomi branded products and certain raw materials
| (b) | The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group commission and technical service fees, also Xiaomi provides advertising and promotion service. The amount due from Xiaomi represents sales receivable net of commission, advertising and promotion service.
| (c) | The Group purchases products from Foshan Wanwuhulian for trading during the year ended December 31, 2020. The cooperation with Foshan Wanwuhulian was terminated at the end of 2020.
| (d) | The Group sells its own brand products on the E-platform of Xiaomi, which charges the Group customer service fees.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 + Details
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