17.RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party 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. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. The following entities are considered to be related parties to the Group. The related parties mainly act as service providers and service recipients to the Group. The Group is not obligated to provide any type of financial support to these related parties. | | | | | Related Party | | Nature of the Party | | Relationship with the Group | Trip.com Group Limited (“Trip.com”) | | Online travel services provider | | Mr. Qi Ji is a director;
Shareholder of the Group | China Cjia Group Limited (“Cjia Group”) | | Apartment Management Group | | Equity method investee of the Group | Shanghai Zhuchuang Enterprise Management Co., Ltd. (“Zhuchuang”) | | Staged office space company | | Equity method investee of the Group | Shanghai Lianquan Hotel Management Co., Ltd. (“Lianquan”) | | Hotel management company | | Equity method investee of the Group | Huamai (Guangzhou) Hotel Management Co., Ltd. (“Huamai”) | | Hotel management company | | Equity method investee of the Group | AZURE Hospitality Fund I Limited Partnership (“Azure”) | | Fund | | Equity method investee of the Group |
(a) Related party balances Amounts due from related parties consist of the following: | | | | | | | As of | | | December 31, | | June 30, | | | 2024 | | 2025 | Trip.com | | 284 | | 246 | Lianquan | | 49 | | 46 | Huamai | | 26 | | 27 | Zhuchuang | | 14 | | 14 | Cjia Group | | 15 | | 14 | Others | | 24 | | 23 | Allowance for expected credit losses | | (64) | | (64) | Total | | 348 | | 306 |
Amounts due to related parties consist of the following:
| | | | | | | As of | | | December 31, | | June 30, | | | 2024 | | 2025 | Trip.com | | 41 | | 52 | Cjia Group | | 14 | | 15 | Others | | 19 | | 19 | Total | | 74 | | 86 |
(b) Related party transactions During the six months ended June 30, 2024 and June 30, 2025, significant related party transactions were as follows: | | | | | | | Six Months Ended June 30, | | | 2024 | | 2025 | Commission expenses to Trip.com | | 150 | | 148 | Lease expenses to Trip.com | | 10 | | 10 | Lease expenses to Cjia Group | | 18 | | 18 | Goods sold and service provided to Cjia Group | | 11 | | 15 | Service fee from Trip.com | | 68 | | 61 | Service fee from Azure | | 11 | | 10 | Sublease income from Lianquan | | 6 | | — | Sublease income from Cjia Group | | 3 | | 3 |
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