| LEASES |
7. LEASES The Group has operating leases for office space, land use right, warehouses and vehicles and finance leases for vehicles as a lessee. The Group’s lease agreements include lease payments that are fixed, do not contain material residual value guarantees or variable lease payments. The leases have terms ranging from one to five years. Certain lease agreements include terms with options to extend the lease, however none of these have been recognized in the Group’s operating lease ROU assets or operating lease liabilities since those options were not reasonably certain to be exercised. The Group’s leases do not contain restrictions or covenants that restrict the Group from incurring other financial obligations. The Group’s lease agreements may contain lease and non-lease components. Non-lease components primarily include payments for maintenance. The components of lease costs were as follows: | | | | | | | | | | | | Years ended December 31, | | | 2023 | | 2024 | | 2025 | Operating lease costs | | | 5,359 | | | 5,050 | | | 4,142 | Short-term lease costs | | | 309 | | | 218 | | | 196 | Financing lease costs: | | | | | | | | | | Amortization of ROU assets | | | 28 | | | 24 | | | — | Interests | | | 4 | | | — | | | — | Sublease income (1) | | | — | | | (1,351) | | | (1,965) | Total lease costs | | | 5,700 | | | 3,941 | | | 2,373 |
| | | | | | | December 31, | | | 2024 | | 2025 | Operating Leases | | | | | Land use right, net | | 1,449 | | 1,482 | Operating lease right-of-use assets (excluding land use right) | | 8,481 | | 4,586 | Total operating lease right-of-use assets | | 9,930 | | 6,068 | Operating lease liabilities, current | | 4,047 | | 2,818 | Operating lease liabilities, non-current | | 4,780 | | 1,886 | Total operating lease liabilities | | 8,827 | | 4,704 |
| | | | | | | | December 31, | | | | 2024 | | 2025 | | Weighted-average remaining lease term | | | | | | Land use right | | 49.25 | | 48.25 | | Operating leases | | 2.53 | | 1.82 | | Weighted-average discount rate | | | | | | Land use right | | — | | — | | Operating leases | | 3.23 | % | 3.31 | % |
| | | | | | | | | | | | Years ended December 31, | Other information | | 2023 | | 2024 | | 2025 | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | Operating cash flows from operating leases | | | 5,707 | | | 5,152 | | | 4,272 | Operating cash flows from financing leases | | | 44 | | | 34 | | | — | Financing cash flows from financing leases | | | 4 | | | — | | | — |
(1) For the year ended December 31, 2025, the Group recognized sublease income of $1,965 (2024: $1,351), and incurred sublease cost of $1,291 (2024: $727). For the years ended December 31, 2023, 2024 and 2025, the Group incurred total operating lease and short-term lease costs of $5,668, $5,268 and $4,338, respectively. Future minimum lease payments for operating leases as of December 31, 2025 are as follows: | | | | | Operating Leases | 2026 | | 2,914 | 2027 | | 1,513 | 2028 | | 312 | 2029 | | 90 | 2030 and thereafter | | — | Total minimum lease payments | | 4,829 | Less: Imputed interest | | (125) | Total lease liability balance | | 4,704 | Minimum payments related to leases not yet commenced as of December 31, 2025 | | — |
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