For the years ended December 31, 2023 2024, 2025 and the six months ended June 30, 2026, our revenue generated from our project-based business amounted to RMB106.2 million, RMB395.3 million, RMB1,020.5 million, and RMB434.5 million, respectively, which accounted for 100.0%, 99.95%, 92.9%, and 73.9% of our total revenue, respectively.
Business · p. 153
Due to the scale and nature of these infrastructure developments, our customers generally engage us for discrete, one-off projects rather than on a recurring basis, although they may subsequently engage us for expansion phases or operational support.
During the Track Record Period, we secured 25, 46 and 52 design wins in 2023, 2024 and 2025, respectively. Of these design wins, 24, 39 and 42 had been successfully converted into purchase orders during the respective or subsequent periods, respectively, representing conversion rates of 96.0%, 84.8% and 80.8%.
Business · p. 153
The fluctuations in conversion rates were primarily attributable to changes in our customers’ product development priorities and timelines, where certain customers pursued multiple technical solutions in parallel during the R&D stage and selected one solution for mass production based on market feedback, while certain small and medium-sized customers chose not to proceed to commercial sales even after completing product validation which, based on the Company’s understanding, was primarily due to factors such as changes in their product launch schedules, adjustments to product positioning or go-to-market strategies, budgetary or resource constraints, or their reassessment of the expected market demand and commercial viability of the relevant end products.
Business · p. 153
As of the Latest Practicable Date, based on the backlog of design wins as of July 31, 2026, revenue of approximately RMB174.8 million is expected to be recognized from September 2026 to December 2026, subject to product delivery and the relevant revenue recognition requirements.
As of June 30, 2026, backlog of SiPh assembly and testing equipment amounted to RMB2.0 billion.
Summary · p. 20
As of June 30, 2026, we were executing multiple overseas orders for our PV manufacturing solutions from customers primarily in India, with an aggregate contract value of approximately RMB100 million, all of which was expected to be recognized as revenue in 2026.
Summary · p. 19
We believe our existing facilities have established sufficient capacity to support our high-volume delivery schedule for the remainder of the year.
However, our gross profit margin decreased from 41.3% to 30.3%, primarily due to the concurrent completion of certain loss-making projects in the Chinese Mainland, the accumulated costs of which were recognized as cost of sales upon delivery.
Summary · p. 2
We recorded negative gross margin of 5.1% in the three months ended March 31, 2026 for Chinese Mainland market, primarily attributable to certain loss-making projects from Chinese Mainland (primarily from customer B) were completed and delivered during the period, which incurred higher costs of sales than corresponding revenue, and our relatively small Chinese Mainland revenue base magnified the impact of such projects on the segment margin.
Financial Information · p. 220
Our impairment losses on financial assets, contract assets and contract costs, net increased by 57.1% from RMB8.8 million in 2024 to RMB13.8 million in 2025, primarily attributable to (i) an increase in impairment provision for contract costs of RMB3.2 million, recognized for certain project-based contracts mainly from Chinese Mainland, where the estimated delivery costs exceeded the expected revenue; and (ii) a provision for impairment losses on trade receivables of RMB1.4 million in 2025, as compared with a net reversal of RMB0.4 million in 2024, representing an unfavorable change of RMB1.8 million, primarily due to the slower collection pace of certain trade receivables during the year.
Our number of newly awarded projects decreased from 110 for the six months ended June 30, 2025 to 46 for the same period in 2026, while the contract value of such newly awarded projects increased from RMB30.6 million to RMB64.0 million.
Summary · p. 22
Notwithstanding the decrease in our number of newly awarded projects, the contract value of such projects increased, as the newly awarded projects for the six months ended June 30, 2025 included a larger number of smaller-scale projects with relatively lower individual contract values.
During the Track Record Period, our order backlog increased from RMB1,789 million as of December 31, 2023 to RMB2,266 million as of December 31, 2024, and further to RMB3,087 million as of December 31, 2025.
Business · p. 163
At the same time, our order backlog may not necessarily be indicative of our future revenue, as the timing and amount of revenue recognized from backlog are subject to various factors, including delivery schedules, customer acceptance, changes in project implementation plans and other factors beyond our control.
As of June 30, 2026, our order backlog of custom ASIC solutions amounted to over RMB1.5 billion, representing an increase of 416.5% from June 30, 2025.
To the best knowledge of our Directors, among the contracts newly entered in 2024, 49 projects experienced delays, representing approximately 7.0% of the total number of contracts; in terms of the contract value, the delayed projects accounted for approximately 30.1% of the total contract value newly signed in 2024.
Business · p. 130
Among the 49 delayed projects identified for 2024, all commenced revenue recognition in 2025 and substantially all of the corresponding revenue had been recognized as of July 31, 2026; further, as of July 31, 2026, approximately 78.8% of the corresponding trade receivables had been collected.
As of June 30, 2026, our contract value as of the end of the period amounted to RMB504.5 million, which we expect to fulfill within the next two years.
In 2023, 2024, 2025 and the six months ended June 30, 2025 and 2026, our new EPC contract value was RMB2,184.2 million, RMB2,647.0 million, RMB830.0 million, RMB775.8 million and RMB538.6 million, respectively.
Business · p. 125
The decreases in our new EPC contract value in 2025 and the six months ended June 30, 2026 were primarily attributable to decreased market demand.
Business · p. 125
As of December 31, 2023, 2024 and 2025 and June 30, 2026, the backlog of our ongoing EPC projects was RMB7,589.4 million, RMB3,808.9 million, RMB2,918.1 million and RMB3,218.3 million, respectively.
The following tables set out the movement of our project backlog in relation to our (i) consulting services and (ii) technology and platform development services under our digital intelligence services, which are the only parts of our business operations which adopted a project-based revenue model, during the Track Record Period in terms of number of projects and contract value:
Business · p. 125
The number of new projects for FY2025 includes the number of projects of Wuxi Chulei as at and since March 2025 incorporated into the Group’s project backlog after the completion of the acquisition of Wuxi Chulei in February 2025.
Business · p. 125
During the Track Record Period, there were no loss-making projects in relation to our (i) consulting services and (ii) technology and platform development services under our digital intelligence services.
Our order backlog was approximately RMB201.0 million as of the Latest Practicable Date.
Business · p. 171
Our tender success rate has also grown from 67% in 2023 to 69% in 2024, further to 73% in 2025 and increased from 70% for the six months ended June 30, 2025 to 71% for the same period ended June 30, 2026, reflecting the enhanced competitiveness and industry recognition of our solutions.
We have recorded 13 loss-making projects in total during the Track Record Period.
Business · p. 144
The losses on these projects were primarily attributable to cost overruns on certain legacy contracts entered into during the early stage of our transition towards innovative drug clinical development services, where subsequent increases in labor and delivery costs exceeded the original pricing assumptions.
Business · p. 144
In order to minimize future exposure to loss-making projects, we have adopted enhanced internal control mechanisms.
Our contracted future revenue as of June 30, 2026 was RMB578.3 million.
Business · p. 146
The future revenue associated with a contract may not be realized as initially expected, including as a result of adjustments to contract value arising from supplemental agreements entered into during project execution, as well as changes resulting from project termination or completion settlement.
Business · p. 146
As such, our FSP business does not generate backlog in the sense of unrecognized contract value.
The ending value of overall backlog of our projects increased from S$104.1 million in 2023 to S$107.4 million in 2024, and further increased to S$723.9 million in 2025, primarily due to backlog obtained through the acquisition of Guthrie Engineering and new contracts awarded as we continued to expand our business in ELECT and ACMV services.
Business · p. 112
As at 30 June 2026, our total outstanding order book amounted to S$838.2 million and further exceeded S$1.0 billion as at the Latest Practicable Date.
Summary · p. 1
As at 30 June 2026, we had 170 projects on hand which represents projects that have commenced but not completed as well as projects that have been awarded to us but not yet commenced.
During the Track Record Period, our tender success rate increased from 4.3% in 2023 to 18.2% in 2024, mainly because we obtained BCA Grade L6 workhead registrations which allowed us to tender and obtain more projects.
Business · p. 113
Our tender success rate decreased from 21.0% in 2025 to 16.7% in the six months ended 30 June 2026, as 20 projects we tendered for in 2025 and the six months ended 30 June 2026 were still pending outcome.
For the projects conducted through public tendering and competitive negotiation processes in China, our success rate was nil out of nine in 2023, four out of 13 in 2024, nine out of 11 in 2025 and nil out of six in the four months ended April 30, 2026.
Business · p. 165
We did not win any such projects in the four months ended April 30, 2026 primarily because the projects we targeted are expected to be launched in the second half of the year, and the relevant proposals were in the process of being prepared.
The total contract sum for these projects was approximately RMB58.9 million and the total net loss recorded for these projects was approximately RMB3.3 million during the Track Record Period.
Business · p. 141
The losses incurred in each of such projects were primarily attributable to the use of a batch of battery cells we procured in 2023 in anticipation of future demand when the market prices were relatively high.
Business · p. 141
As of the Latest Practicable Date, such batch of battery cells procured in 2023 had been fully utilized.
The following table sets forth our project backlog movement in terms of contract value during the Track Record Period.
Business · p. 170
In addition, from June 1, 2026 to June 30, 2026, we entered into 592 contracts with an aggregate contract value of RMB287.1 million, as compared with 288 contracts with an aggregate contract value of RMB223.7 million for the corresponding period in 2025.
During the Track Record Period, there were nil, three, 14, 11, and five loss-making projects in 2023, 2024, and 2025 and for the five months ended May 31, 2025 and 2026, respectively.
Business · p. 170
Majority of the customers of the loss-making projects during the Track Record Period subsequently entered into new contracts with us.
Business · p. 170
Therefore, the occurrence of these loss-making projects did not have a material adverse effect on our overall business operations.