As a pioneer of global end-to-end B2B ecommerce solutions for large parcel merchandise, GigaCloud leverages its advanced technology to continually drive transformation across the industry. We have built an open, collaborative, and sustainable ecosystem, integrating compliance and ethical business practices into our core operations. Our commitment to contractual integrity and long-term values informs every business decision.
To assess payment timeliness, our Finance Department conducts a thorough annual review of the prior year’s supplier payments, reconciling each transaction against its contractual due date and sending confirmation requests to suppliers for validation.
By the end of April 2025, we had completed the comprehensive self-assessment for supplier payments made in 2024 against contractual due dates. We issued confirmation letters to 608 suppliers—58% more than the 384 suppliers reviewed last year.
The self-assessment revealed a significant improvement in payment timeliness. The number of suppliers experiencing delayed payments fell by 37% from 62 in 2023 to 39. The percentage of suppliers with delays dropped by 60%, from 16.15% to 6.41% of the total surveyed. Likewise, the unaudited value of late payments dropped 42% to about US $2.25 million (unaudited), representing only 0.64% (unaudited) of 2024 disbursements (down from 1.81% last year, a 64% reduction).
For all payments made after their contractual due date, interest is calculated daily at an annual rate of 5.29%, based on the 1-month U.S. Treasury yield of 4.29% as of December 31, 2024, plus a 1% premium. Accrued interest will be paid in installments, with all payments completed by July 31, 2025.
Beyond the supplier payment timeliness review detailed here, the company has initiated a self-assessment of payment timeliness for 36 logistics-service providers, further strengthening our commitment to sound financial practices.
Suppliers are the backbone of GigaCloud’s operations, and we deeply value integrity and transparency in our partnerships. We remain firmly committed to on-time payments. If you have experienced any delays not listed in the attached schedule, please inform us promptly. We welcome your feedback on our payment performance. For questions or suggestions, email fd@gigacloudtech.com, and we will respond promptly.
Attachment: List of affected suppliers and specific amounts (Currency: USD) (Unaudited)
