Our financial assets at fair value through profit or loss increased from RMB784.3 million as of December 31, 2023 to RMB1,033.0 million as of December 31, 2024, primarily attributable to (i) an increase in investment in private equity funds of RMB178.8 million and
Financial Information · p. 256
We adopt a prudent investment policy with capital preservation and liquidity as our primary objectives, and only invest in wealth management products with high safety, strong liquidity, controllable risks and principal protection features.
Our current financial assets at fair value through profit or loss decreased significantly from RMB180.9 million as of December 31, 2023 to nil as of December 31, 2024, primarily due to the maturity of wealth management products.
Financial Information · p. 226
We have established internal policies on the purchase and management of wealth management products.
Financial Information · p. 226
Our non-current financial assets at fair value through profit or loss increased significantly from RMB6.7 million as of December 31, 2023 to RMB14.8 million as of December 31, 2024, and then increased by 38.2% to RMB20.5 million as of December 31, 2025, primarily due to the fair value appreciation of our equity investments, resulted from subsequent financing rounds of the investees at higher valuation levels.
Our current portion of financial assets at fair value through profit or loss primarily consists of other financial instruments at fair value, including structured deposits and wealth management products.
Financial Information · p. 197
Our investment policy is to invest in low-risk, principal-protected and highly liquid wealth management products, including structured deposits, agreement deposits, large-denomination certificates of deposit and bank wealth management products, with the goal to enhancing returns on our temporarily idle funds while preserving capital.
These mainly reflect our long-term equity investments in Fullsemi Semiconductor, which decreased from RMB1,500.3 million as of December 31, 2024 to RMB1,499.4 million as of December 31, 2025, reflecting the fair value change in long-term equity investments.
Financial Information · p. 244
Other gains decreased from a net gain of RMB51.4 million in 2024 to a net gain of RMB8.4 million in 2025, primarily due to net foreign exchange losses and fair value changes of unlisted investments.
Financial Information · p. 239
For private equity valuation volatility, we diversify our investments across industries, geographies and stages to reduce concentration risk.
Our financial assets at FVTPL then increased to RMB1,824.4 million as of March 31, 2026, primarily due to an increase of RMB988.9 million in wealth management products, as we purchased more wealth management products to better utilize our cash on hand.
Financial Information · p. 234
Unlisted equity investments are valued using Level 3 inputs, which require us to identify comparable public companies, select appropriate price multiples and estimate discounts for illiquidity and size differences.
Financial Information · p. 235
Each purchase of wealth management products is reviewed by our legal department and approved by our chief financial officer.
We invest idle funds in low-risk and principal-protected wealth management products, primarily structured deposits issued by reputable banks, to enhance the efficiency of cash utilization and increase investment returns without affecting our working capital requirements and business operations.
Financial Information · p. 202
The maximum investment amount and types of permitted financial products are approved at shareholders' meetings, with investments limited to financial products characterized by relatively high capital security and liquidity, such as structured bank deposits issued by large, reputable commercial banks and other established financial institutions.
Our financial assets measured at fair value through profit or loss represent wealth management products issued by banks, which primarily consisted of structured deposits.
Financial Information · p. 161
Our financial assets measured at fair value through profit or loss increased from RMB41.4 million as of December 31, 2024 to RMB120.5 million as of December 31, 2025, primarily due to subscription of additional wealth management products as part of our cash management.
Financial Information · p. 161
We have established investment policies and strategies with respect to financial products, to manage risks and safeguard assets.
We make investment decisions primarily based on our estimated capital requirements and annual budgets and take into account the duration, expected returns and risks of financial products;
Business · p. 163
Our audit department closely monitors our investments in financial products and reports to our management when any unusual circumstances or material adverse changes regarding the expected returns and principal of our wealth management products occurs.
Business · p. 164
Our net gains increased by 18.4% from RMB10.2 million in the three months ended March 31, 2025 to RMB12.1 million in the three months ended March 31, 2026, primarily due to (i) an increase of RMB14.4 million in change in fair value of structured deposits, (ii) an increase of RMB9.5 million in change in fair value of unlisted equity interest and (iii) an increase of RMB5.8 million of net foreign exchange gain, partially offset by (i) loss on deemed disposal of an associate of RMB14.8 million and (ii) a decrease of RMB12.9 million in change in fair value of derivative financial instruments.
Our financial assets at fair value through profit or loss recorded nil as of December 31, 2023, RMB20.0 million as of December 31, 2024, nil as of December 31, 2025, primarily due to our purchase of structured deposits in 2024, which matured and were fully redeemed in 2025.
Financial Information · p. 254
We obtain annual authorisation from the Board for the purchase of structured deposits.
Our investment income of structured deposits, transferable large-denomination certificates of deposits and income certificates decreased from RMB72.3 million in 2023 to RMB43.4 million in 2024, and further decreased to RMB28.6 million in 2025, primarily due to the continued utilization of proceeds from the listing on the STAR Market of the Shanghai Stock Exchange and increased capital expenditure on production equipment, resulting in reduced funds available for such investments, as well as a continuous decline in product yields offered by financial institutions.
Financial Information · p. 190
We strategically prioritize to invest idle funds in low-risk, short-term wealth management products offered by banks.
We recorded financial assets measured at FVTPL of RMB5.2 million and RMB14.1 million as of December 31, 2024 and 2025, respectively, primarily because we entered into certain commodity futures or options to mitigate the risk associated with the prices of our sodium hydroxide, LPG and related chemical products purchased or sold.
Financial Information · p. 247
To ensure the safety of our funds, we only invest in low-risk wealth management products, primarily including structured deposits.
Our financial assets at FVTPL mainly representing investment in structured deposits and wealth management products (''WMPs'').
Financial Information · p. 235
Our financial assets at FVTPL decreased by 34.1% from RMB604.9 million as of December 31, 2024 to RMB398.6 million as of December 31, 2025, primarily due to a decrease in structured deposits we purchased.
Financial Information · p. 235
The fund management department formulates annual investment plans and quotas for the cash management of our surplus funds, including idle proceeds, after considering our overall funding position and financing environment.
Our financial investments at fair value through profit or loss decreased from RMB1,158.2 million as of December 31, 2023 to RMB867.9 million as of December 31, 2024, and further to RMB764.0 million as of December 31, 2025, primarily due to the decrease in structured deposits, mainly attributable to our redemption of structured deposits to support our business expansion.
Financial Information · p. 164
Our investment strategy includes, in particular: (i) only deploying surplus funds for cash management to generate reasonable returns, (ii) being confined to low-risk, highly liquid and capital-secure short-term products, mainly including structured deposits and certificates of deposit, and (iii) ensuring that the products offer guaranteed returns and are issued by reputable banks.
Financial Information · p. 165
After our finance department formulates investment plans, which set out, among others, the types of investment products, the maximum investment limits and the manner of implementation, such investment plans are approved by our Board, and are further executed by our general manager, including selecting qualified issuers, determining investment amounts, choosing products and signing relevant agreements.
Our financial assets measured at FVPL consist of (i) wealth management products (WMPs) issued by commercial banks and securities companies in the PRC, and (ii) an investment in a private equity fund in which our Company serves as a limited partner.
Financial Information · p. 245
As of December 31, 2023, 2024 and 2025, our investment in wealth management products was nil, RMB15.0 million and nil, respectively.
Financial Information · p. 245
The investment in private equity fund was RMB2.5 million as of December 31, 2024 and RMB2.6 million as of December 31, 2025.
During the Track Record Period, our other gains and losses primarily consisted of fair value changes of financial assets at FVTPL, net foreign exchange gains (losses), fair value changes of derivative financial liabilities and loss on disposal of property, plant and equipment.
Financial Information · p. 183
During the Track Record Period, we entered into foreign currency forward contracts with banks to manage our currency risk.
Financial Information · p. 183
Our other gains decreased from RMB53.7 million in 2023 to RMB48.0 million in 2024, primarily due to the net foreign exchange losses attributable to the fluctuation of Renminbi against United States dollar and euros which were our main settlement currencies for overseas business, partially offset by increase in fair value changes of financial assets at FVTPL attributable to the higher fair value of our large-denominated bank deposits and structured deposits.
During the Track Record Period, we recorded financial assets at fair value through profit or loss of RMB2.5 million, RMB17.0 million and nil as of 31 December 2023, 2024 and 2025, respectively.
Financial Information · p. 231
As part of our treasury management policy, we have purchased wealth management products as a means to better utilise our cash on hand on a short-term basis.
Financial Information · p. 231
– the types of investment shall generally be low-risk wealth management products including fixed deposits and investments with fixed investment amounts and/or guaranteed returns;
Our investments in financial assets at fair value through profit or loss primarily consist of wealth management products purchased from financial institutions for short-term liquidity management and enhancement of returns on surplus cash, rather than for speculative trading.
Financial Information · p. 184
Under such policies, we adopt a prudent and conservative investment strategy, and our investments are generally limited to low-risk and highly liquid financial products, such as structured deposits and wealth management products issued by reputable financial institutions.
Financial Information · p. 184
These include, among others: (i) clearly defined approval authorities and segregation of duties among investment decision-making, execution and settlement functions; (ii) internal limits on investment size, tenor and exposure to individual financial institutions (including position limits), to ensure that no excessive concentration risk is assumed; and (iii) regular monitoring and reporting of investment performance and fair value changes to senior management and (iv) dedicated internal control policies and procedures governing foreign exchange derivatives transactions, under which all such transactions are subject to strict approval, execution and monitoring requirements, and we will strictly comply with such internal control measures.
Our other gains and losses primarily consist of (1) fair value changes of financial assets at FVTPL in connection with our wealth management products and structured deposits, (2) net foreign exchange gains, and (3) modification of redemption liabilities in connection with the share transfer of certain investors with redemption rights.
Financial Information · p. 231
Our other gains decreased by 67.9% from RMB9.1 million in 2024 to RMB2.9 million in 2025, primarily due to decrease of RMB5.9 million of fair value changes of financial assets at FVTPL, mainly resulting from the higher yields of wealth management products purchased in 2024 compared to those in 2025.
Financial Information · p. 236
As of December 31, 2025, we had cash and cash equivalents of RMB14.8 million, current portion of term deposits of RMB134.6 million, and bank-issued short-term wealth management products and bank deposits, which were classified as financial assets at FVTPL of RMB232.5 million, and which primarily consist of instruments with short tenors and high liquidity.
The valuation of our funds and portfolio companies involves exercise of professional judgement and the use of certain bases, assumptions and unobservable inputs.
Financial Information · p. 205
Changes in these unobservable inputs caused by the capital market conditions and trends will affect the estimated fair value of our financial assets at fair value through profit or loss, which leads to uncertainty in our financial results.
Our financial assets at fair value through profit or loss amounted to RMB292.8 million, RMB387.7 million and RMB282.2 million as of December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 214
These balances primarily consisted of wealth management products with risk ratings of Level 2 or below, and did not include any Level 3 financial instruments.
Financial Information · p. 214
We manage our cash and treasury resources in accordance with our internal cash management policies, with a focus on liquidity, capital preservation and reasonable returns.