During the Track Record Period, our other net gain mainly consisted of (i) net realized and unrealized gain on financial assets measured at FVPL, mainly represented income arising from the investment in structured deposits and short-term wealth management products, (ii) net loss or gain on disposal of property, plant and equipment associated with our laboratory equipment, mainly due to office relocation and (iii) net foreign exchange gain or loss, primarily due to the fluctuation between U.S. dollars and RMB.
Financial Information · p. 226
Our other net gain increased by 62.2% from RMB1.9 million in 2024 to RMB3.0 million in 2025, primarily due to (i) an increase of RMB1.1 million in net realized and unrealized gain on financial assets measured at FVPL, mainly because we purchased more structured deposits to improve the utilization of our cash on hand on a short-term basis; and (ii) we recorded one-off net loss on disposal of property, plant and equipment of RMB190.0 thousand in 2024, primarily related to the optimization of our R&D infrastructure.
The decrease in other income was mainly due to decrease in changes in fair value of financial assets at FVTPL of RMB2.7 million because we reduced the purchase of structured products in FY2025.
Financial Information · p. 213
The decrease in other income was mainly due to (i) decrease in changes in fair value of financial assets at FVTPL from gain of RMB2.2 million in 6M2025 to loss of RMB1.2 million in 6M2026 primarily arising from the fluctuation from our funds investment; and (ii) increase in net exchange losses of RMB1.1 million arising from our bank balances denominated in USD as a result of the depreciation of USD against RMB.
Financial Information · p. 215
Valuation for structured investment products, which is under level 2 in fair value hierarchy, was based on the basic income and the floating income.
Our financial assets at fair value through profit or loss increased from nil in 2023 to RMB220.2 million in 2024, and then increased from RMB220.2 million in 2024 to RMB435.0 million in 2025, as a result of the adjustments in our cash management policy with an increase in short-term, low-risk and highly liquid wealth management products.
Financial Information · p. 228
We have implemented internal policies on purchase and management of wealth management products.
The value of these financial assets grew from RMB644.0 million as of December 31, 2023 to RMB718.5 million as of December 31, 2024, before declining to RMB562.2 million as of December 31, 2025.
Financial Information · p. 243
The wealth management products are classified as Risk Grade II (R2 - Lower to Moderate Risk) under the PRC asset management product risk grading system.
Financial Information · p. 243
Our investment in wealth management products is intended to enhance the utilization of idle funds while prioritizing capital preservation and liquidity.
Our financial assets measured at fair value through profit or loss primarily consist of structured deposits.
Financial Information · p. 266
The fluctuations of financial assets measured at fair value through profit or loss ware primarily due to the fluctuations of recorded structured deposits, which was manly attributable to our strategic cash management.
Financial Information · p. 267
To enhance returns on idle funds while ensuring capital security, we invest in low-risk products like structured deposits with a R1 risk rating, in line with our long-term development goals.
Our other gains and losses shifted from a net loss of RMB0.1 million in 2023 to a net gain of RMB2.0 million in 2024, primarily due to (i) an RMB3.9 million increase in net gains from fair value changes of financial assets at FVTPL.
Financial Information · p. 207
This was primarily attributable to (i) an increase of RMB238.5 million in financial assets at FVTPL, primarily as a result of our investment in certain wealth management products; and (ii) an increase of RMB35.5 million in our trade, bills, other receivables, mainly due to the recognition of trade, bills and other receivables of Zhejiang AITEK upon the completion of our acquisition of such company on December 31, 2024.
Our financial assets at fair value through profit or loss represented wealth management products at fair value and convertible bond.
Financial Information · p. 236
Our financial assets at fair value through profit or loss increased by 38.2% from RMB83.4 million as of December 31, 2025 to RMB115.3 million as of June 30, 2026, primarily due to the purchase of wealth management products.
Financial Information · p. 236
Our wealth management products are primarily structured deposits and investment products of private equity fund.
During the Track Record Period, our current financial assets measured at FVTPL comprised bank wealth management products and structured deposits and forward foreign exchange contracts.
Financial Information · p. 246
In respect of our investment policies and strategies, we generally adopt a prudent approach and primarily invest in short-term wealth management products with relatively low risk and high liquidity, taking into account our cash management needs, expected return, liquidity requirements and funding needs for our principal business operations.
Our total financial assets at FVTPL increased from RMB100.3 million as of December 31, 2023 to RMB200.6 million as of December 31, 2024, and further increased to RMB243.1 million as of December 31, 2025 and RMB516.9 million as of May 31, 2026.
Financial Information · p. 233
In terms of nature and key terms, our financial assets at FVTPL mainly consisted of structured deposits and wealth management products categorized as low-to-medium risk, while our certificates of deposit were fixed-income deposit products.
Financial Information · p. 233
We strictly limit our investments to products rated PR2 (Low-Medium Risk) or below issued by reputable financial institutions and avoid high-risk or speculative financial instruments.
During the Track Record Period, our financial assets at fair value through profit or loss represented the structured deposits that we purchased as part of our cash management measures.
Financial Information · p. 254
Our financial assets at fair value through profit or loss increased from RMB63.2 million as of December 31, 2024 to RMB195.3 million as of December 31, 2025, and subsequently decreased to RMB70.3 million as a result of our purchase and the maturity of the relevant structured deposits prior to the relevant dates.
Financial Information · p. 254
We adopt a prudent approach in selecting financial assets. Our investment decisions are made on a case-by-case basis and after due and careful consideration of a number of factors, such as the duration of the investment, the expected returns and our working capital conditions.
Our financial assets at fair value through profit or loss increased during the Track Record Period, primarily due to our increased investment in wealth management products.
Financial Information · p. 183
Our investment strategy in relation to wealth management products aims to minimize financial risks by prudently and conservatively aligning the maturities of our investment portfolio with our anticipated operating cash requirements, while generating reasonable investment returns for our shareholders.
Financial Information · p. 184
During the Track Record Period, we had certain financial assets categorized within Level 3 of fair value measurement (“Level 3 Financial Assets”).
Our financial assets at FVTFL (current portion) mainly consist of wealth management products at fair value.
Financial Information · p. 241
We deploy surplus short-term funds in low-risk and/or highly-rated wealth management products issued by reputable financial institutions to optimize returns while safeguarding liquidity and principal.
Financial Information · p. 242
The authority to approve securities investments, entrusted wealth management, or derivative transactions is vested exclusively in the Board or the shareholders’ general meeting.
Our financial investments at fair value through profit or loss (non-current) increased by 51.4% from RMB33.3 million as of December 31, 2024 to RMB50.4 million as of December 31, 2025 and further by 47.0% to RMB74.1 million as of May 31, 2026, primarily because of the increase in the fair value of our investments.
Financial Information · p. 212
We had a balance of RMB400.3 million of financial investments at fair value through profit or loss (current), representing wealth management products we purchased in 2026 and were holding as of the date indicated.
Financial Information · p. 218
Specifically, we are only allowed by our internal policies and guidelines to invest in structured deposits or certificates of deposit that carry low risk labels, with a term of no more than three months.
Our financial investments at fair value through profit or loss increased from RMB170.5 million as of December 31, 2023 to RMB394.6 million as of December 31, 2024, primarily due to purchase of additional structured deposits.
Financial Information · p. 242
To monitor and control investment risks associated with our financial product portfolio, we have adopted a comprehensive investment policy and internal control procedures. We apply a low-risk strategy that ensures compliance with applicable laws, regulations, and our Articles of Association.
Financial Information · p. 242
After the Listing, our investments in financial assets will be subject to compliance with Chapter 14 of the Listing Rules.
Our current portion of financial assets at fair value through profit or loss represents (i) structured deposits with low risks and (ii) investment in unlisted equity expected to be recovered within one year, primarily to generate additional returns on cash reserves, while ensuring liquidity and capital preservation.
Financial Information · p. 246
Our current portion of financial assets at fair value through profit or loss increased significantly from RMB126.1 million as of December 31, 2024 to RMB370.6 million as of December 31, 2025, primarily due to an increase in our investments in short-term structured deposits.
Financial Information · p. 246
We primarily invest in financial products issued by major commercial banks in Chinese Mainland with low risks and a short-to-mid-term.
Our financial assets at fair value through profit or loss mainly represent our investments in the structured deposits, listed securities and private equity fund.
Financial Information · p. 227
Our financial assets at fair value through profit or loss increased from RMB750.5 million as of December 31, 2023 to RMB923.0 million as of December 31, 2024, primarily attributable to an increase in acquisition of structured deposits in 2024.
Financial Information · p. 227
The Group will comply with Chapter 14 of the Rules when making such investments after the [REDACTED].
Our financial assets at fair value through profit or loss primarily represent wealth management products and derivative financial instruments.
Financial Information · p. 214
Our financial assets at fair value through profit or loss increased from RMB1,854.8 million as of December 31, 2023 to RMB3,077.7 million as of December 31, 2024, mainly due to our strategic use of idle funds to purchase wealth management products for improved asset management and the increase of our derivative financial instruments to mitigate the risk caused by foreign exchange rate fluctuations.
Financial Information · p. 214
We follow a prudent investment approach for wealth management products, focusing on capital preservation and stable returns.
Our financial assets measured at fair value through profit or loss represent structured deposits purchased from banks in the PRC with variable interest that we purchased as part of our cash management efforts.
Financial Information · p. 248
Our financial assets measured at fair value through profit or loss decreased from RMB50.2 million as of December 31, 2024 to nil as of December 31, 2025 due to the maturity and redemption of such financial products.
Financial Information · p. 248
Such assets increased to RMB43.1 million as of April 30, 2026 as a result of our purchase of structured deposits with cash on hand during the four months ended April 30, 2026.
Our financial assets at fair value through profit or loss represent structured deposit products issued by a commercial bank in the PRC.
Financial Information · p. 254
Our financial assets at fair value through profit or loss increased from nil as at December 31, 2024 to approximately RMB1.4 million as at December 31, 2025 and further increased to approximately RMB8.2 million as a May 31, 2026, primarily due to subscription of new structured deposit products.
Financial Information · p. 254
The scope of these investments are strictly limited to short-to-medium term, highly secured, liquid and low risk products issued by licensed financial institutions in the PRC, including but not limited to structured deposits, money market funds, treasury bonds, and investment in derivatives products is prohibited.