Discontinued or strategically contracted business lines
Hong Kong IPO disclosure precedents · 103 companies, 111 items
Deliberate discontinuation, restructuring or strategic retrenchment of production lines or non-core business segments, including workforce consultation and effects on revenue and margin comparability.
Pursuant to this agreement, we shall transfer our 40% equity interest in Taizhou Hanzhong to Lepu for (i) an aggregate amount of RMB350.0 million (“One-off Cash Payment”) to be paid and equity interest to be transferred in instalments as set out in the payment schedule with no other pre-conditions attached thereto; and (ii) an annual payment of 4.375% of the net sales revenue of HX008 after its commercialization (“Annual Fee”).
Summary · p. 14
Upon completion of the supplemental equity transfer on August 28, 2024, we ceased to hold any equity interests in Taizhou Hanzhong.
Business · p. 362
Through transferring the exclusive rights for manufacturing, development and commercialization of HX008, it is evident that we are capable to transferring our products to market-leading business partners for further development manufacturing and commercialization.
In September 2022, to optimize our service offerings, we terminated the irrevocable deed of voting proxy and power of attorney and accordingly deconsolidated ICMALL.
Financial Information · p. 340
As a result of the deconsolidation, the results of operations of ICMALL are presented as discontinued operations for the years ended December 31, 2022.
As of January 1, 2022 and 2023, we authorized the Independent Third Party to operate twelve and nine franchised restaurants, respectively.
Business · p. 199
Given the limited number of restaurants under the authorized operation model which contributed to a relatively small portion of our revenue during the Track Record Period, the gradual cessation of authorized operation model did not have any material impact on the profitability of our restaurant operations.
As of September 12, 2024, we have ceased all then existing agreements with the financial institutions in connection with matching service and since then no longer generate any revenue thereunder.
Summary · p. 2
On January 16, 2025, we discontinued H5 redirections embedded on Yangxiaomie such that potential end customers cannot initiate or manage transactions with financial institutions through Yangxiaomie.
Summary · p. 2
To a much smaller extent, we also generated revenue from other businesses by (i) advertisement placement for our business partners, (ii) providing matching services for financial institutions, which was terminated in September 2024.
However, we terminated the purchase of power generation facilities since we decided not to proceed with the aluminum smelting project in Indonesia due to our change in overseas expansion strategy as we want to focus our first globalization attempt on the Saudi Project.
Financial Information · p. 383
We invested in an integrated electrolytic aluminum industry chain project in Saudi Arabia, with a designed annual production capacity of 500.0 kt of electrolytic aluminum.
Business · p. 176
In light of the production capacity cap set by the MIIT and a growing global demand for electrolytic aluminum, we actively pursue a globalization strategy, aiming to construct an integrated electrolytic aluminum industry chain project in Saudi Arabia to capture market opportunities.
The sales volume of our ICE vehicles decreased from 132.2 thousand units in 2022 to 101.4 thousand units in 2023, and further to 70.1 thousand units in 2024, and decreased from
Business · p. 209
34.9 thousand units in the six months ended June 30, 2024 units to 26.5 thousand units in the six months ended June 30, 2025, primarily due to our strategic shift toward NEVs, in line with industry trends in China and globally.
Business · p. 210
The decrease in 2024 was mainly because we strategically pivoted our focus to our AITO brand.
Based on the result of the assessment, the management of our Group is of the view that the carrying amounts of such other non-financial assets do not exceed the recoverable amounts and thus no provision for impairment is required for these non-financial assets as at the end of each of the Track Record Period, except for the decision to phase out the industry solution services business in 2022, which caused the carrying amounts of intangible assets of the industry solution services CGU to exceed its recoverable amounts, resulting in a record of impairment losses of RMB39.2 million for intangible assets.
Financial Information · p. 353
Prior to 2022, an impairment loss of RMB1,417.1 million was recognized for the goodwill of industry solution services CGU due to the expected decrease in growth rate.
Financial Information · p. 399
The decrease in inventory turnover days from 2022 to 2024 was in connection with the phasing out of industry solutions.
As of December 31, 2022, 2023 and 2024, June 30, 2025 and the Latest Practicable Date, the number of our self-operated offline stores amounted to 352, 316, 249, 244 and 235, respectively.
Financial Information · p. 398
For the years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2025, revenue generated from sales of products to consumers through our self-operated offline stores accounted for 22.0%, 19.8%, 16.5% and 15.1%, respectively, of our total revenue.
Financial Information · p. 398
Our other net income increased from RMB1.5 million for the year ended December 31, 2023 to RMB2.5 million for the year ended December 31, 2024, primarily due to (i) the gains on disposal of property, plant and equipment and right-of-use assets with the amount of RMB2.6 million, primarily due to the increase in the number of self-operated offline stores closed by us during the year ended December 31, 2024, which resulted in an increase of gains from disposal of relevant right-of-use assets; (ii) an increase of RMB2.0 million in others, primarily reflecting the increase of compensation we received from logistics service providers for their damages to the products during the delivery, and the gains from the reversal of payables in connection with construction of certain properties, as partially offset by RMB4.4 million in termination cost of purchase contract for land use right, primarily due to the termination of our involvement in the joint development of a building on a parcel of land.
Our total revenue experienced a slight decline of 10.0%, decreasing from RMB161.3 million for the year ended December 31, 2022 to RMB145.2 million for the year ended December 31, 2023, primarily due to our strategic adjustments on our product strategy to adapt to economic challenges and market changes, and temporary fluctuations in our AI agent applications during its initial development phase.
Summary · p. 16
However, with the introduction of the more advanced Gogo and UP Series, the Run Series has been gradually phased out, and its current availability is limited to existing inventory.
Business · p. 369
We discontinued the production of these robots in 2021, and the sales of those robots designed for food delivery in 2022 were limited to inventories.
In March 2025, we begun to downsize our Russian operations and in April, we entered into agreements to dispose a portion of our local assets and distribution channels.
Business · p. 302
The disposal was completed by July 31, 2025.
Business · p. 302
It is expected that we will gradually reduce existing brands and distribution channels in Russia by 2027.
Apart from dental institutions in Hubei and Hunan provinces, historically, we operated two dental institutions in Anhui province, which were voluntarily disposed in May 2022 following our thorough evaluation of market conditions and alignment with our future business strategies.
Business · p. 195
We voluntarily terminated the operations of eight, one and two dental institutions in 2022, 2024 and during the period subsequent to December 31, 2024 and up to the Latest Practicable Date, respectively, based on our evaluation on the market condition and future business strategies.
Business · p. 198
As a result of such disposal, we recognized gains on disposal of subsidiaries of RMB1.6 million in total in 2022.
As our products matured and full-scale deployments became the norm, we have since scaled down this business to focus on more scalable, higher-margin AMR solution sales.
Summary · p. 9
As our products matured and full-scale deployments became the norm, we have since scaled down this business to focus on more scalable, higher-margin AMR solution sales, and revenue from RaaS has been decreasing in both absolute terms and as a percentage of our total revenue over the Track Record Period.
Business · p. 266
Accordingly, we incurred impairment loss of property, plant, and equipment of nil, RMB6.1 million and nil in 2022, 2023 and 2024 due to the write-down of certain fixed assets associated with decreasing our RaaS business.
Given the fierce competition and low profitability, we have been strategically scaling down this business segment.
Summary · p. 2
In addition, we have been gradually scaling down some existing services, such as contact center outsourcing since 2021, sale of virtual goods since 2022, mobile data services since 2021 and video conference solutions since 2022 as we anticipated more intense competition or low profitability in the future.
As we gradually scaled down GuangHeTang's offline postpartum meal business during the Track Record Period and eventually disposed of GuangHeTang Catering which operated such business, our food products are now primarily sold on e-commerce platforms, where we directly sell our products to end consumers through our self-operated online stores.
Business · p. 256
Our net other gains and expenses increased from RMB0.8 million for the year ended December 31, 2022 to RMB1.0 million for the year ended December 31, 2023, primarily because we had a gain on disposal of a subsidiary, namely GuangHeTang Catering, of RMB0.2 million.
Financial Information · p. 391
an increase in other receivables from RMB2.9 million as of December 31, 2023 to RMB17.9 million as of December 31, 2024, primarily due to the recognition of consideration receivables relating to the disposal of our entire interests in Chengdu Wenjiang BekZene Internet Hospital Co., Ltd and Chengdu Wenjiang Beikang Enhu Outpatient Department Co., Ltd
In 2022, we made significant investments to achieve a substantial scale in major tier-one and tier-two cities across China and to build up a fleet of approximately 50,000 vehicles that we hold directly.
Summary · p. 8
In 2024, our vehicle sales increased significantly as we dedicated a greater proportion of our purpose-built vehicles for external sales.
Business · p. 187
We had vehicle sales revenue of RMB114.6 million and RMB866.8 million in 2023 and 2024, respectively.
In early 2024, in view of our business development and corporate strategy, we began streamlining our corporate structure and began unwinding and terminating the Historical Contractual Arrangements, which was completed in April 2024.
Summary · p. 30
During the years ended December 31, 2022, 2023 and 2024, Miyin Prohibited Business, Mirui Prohibited Business, Hangzhou Mian, 30% equity interest in Jianian and Linuokang Lab contributed an aggregate revenue of RMB13.00 million, RMB6.27 million and RMB4.96 million to our Group respectively, representing 10.27%, 3.64% and 3.40% of the aggregate revenue of our Group for the respective year.
In March 2024, we completed the production of our final batch of Fortitude™ and have since discontinued its manufacturing.
Business · p. 397
In addition, as the COVID-19 pandemic had gradually eased, certain distributors terminated or did not renew their distribution agreements with us for the distributions of Fortitude™ due to the significantly reduced demand.
After evaluating the costs and benefits associated with the potential upgrading of the Shangrao Plant for N-type TOPCon cell production, we have concluded that such a upgrade would not be commercially viable.
Business · p. 246
Our management has closely monitored the development of market trend and recognized impairment loss of RMB894.2 million on certain P-type PERC cell production line and production facilities in Shangrao Plant in 2023.
Business · p. 248
We are implementing strategic measures to streamline human resource management to relocate our production staff in Shangrao Plant to other production plants upon mutual agreement, and facilitate the orderly transition of our workforce to other plants specializing in N-type TOPCon cell production where applicable, which is designed to optimize our operational efficiency and preserve the value of our human capital during this transitional period.
Nanjing Zenergy ceased substantial production in December 2022, and Dongguan Zenergy ceased production activities in February 2023.
Business · p. 279
The production line in Nanjing Zenergy was designed to accommodate only battery cells with a width of under 200 millimeters, while a majority of new battery cell products on the market in the past two years had width over 200 millimeters, such as 220-millimeter width prismatic battery cells and 300-millimeter width battery cells.
We initiated exploration of opportunities in RTD drinks production and sales in June 2021. Subsequently, in September 2023, we decided to suspend this business.
Financial Information · p. 333
Throughout the duration of operations, revenue from the sales of RTD drinks was minimal, accounting for less than 0.1% of our total revenue in each of the years ended December 31, 2021, 2022 and 2023.
Financial Information · p. 333
We recorded impairment of property, plant and equipment in the amount of nil in 2022, compared to RMB65.5 million in 2023.