Our inventories increased by 44.2% from RMB136.7 million as of December 31, 2023 to RMB197.1 million as of December 31, 2024, and further increased by 33.8% to RMB263.7 million as of December 31, 2025, primarily due to increases in work in progress and finished goods because we added products manufactured under the GMP standard to our product portfolio in 2024.
Financial Information · p. 223
In addition, our overall inventory turnover days were relatively high, primarily due to our overseas direct sales model.
Financial Information · p. 224
Nevertheless, the majority of our products, including recombinant proteins, antibodies and functional cell lines, generally have a shelf life of five years, and 93.3%, 88.1%, 82.5% and 80.6% of our inventories as of December 31, 2023, 2024 and 2025 and July 31, 2026 had an inventory age of within two years, respectively, reflecting that our overall inventory conditions remained manageable.
These increases were mainly driven by our strategic inventory buildup to support anticipated sales growth of products, in line with our revenue growth.
Financial Information · p. 236
We recorded higher impairment of inventories in 2024, primarily related to our medical devices as they were still in the phase of sales ramp-up.
Financial Information · p. 236
As of July 31, 2026, RMB110.7 million (before impairment), or 18.7%, of our gross inventories as of June 30, 2026 had been utilized or sold.
Bases on the above considerations, as at 31 December 2023, 2024 and 2025 and 31 March 2026, the write down of inventory was RMB4.9 million, RMB4.3 million, RMB4.3 million and RMB4.6 million, respectively.
Financial Information · p. 256
As at 30 June 2026, RMB28.3 million or approximately 66.0% of our inventories as at 31 March 2026 had been subsequently consumed or sold.
Financial Information · p. 256
Despite the relatively low subsequent utilization/sales of the inventories, in determining the write down provision of the inventories, we have considered (i) no significant recoverability issue for inventories given that the raw materials generally have no expiration date; and (ii) the NRV tests performed at the end of each Track Record Period in accordance with IAS 2.
The impairment allowance significantly increased from RMB0.5 million as of December 31, 2023 to RMB6.3 million as of December 31, 2024, primarily because we decreased the sales price of our products to franchisees at the end of 2024 to a level lower than our costs of sales in order to support our franchisees.
Financial Information · p. 216
Our inventory turnover days decreased from 15.5 days in 2023 to 12.1 days in 2024, primarily because (i) the prices of pork increased in 2024, leading to a significant increase in cost of sales that outpaced the growth of average inventory balances; and (ii) we recognized an inventory write-down of RMB6.2 million in 2024 as discussed above.
Our inventories decreased from RMB297.2 million as of December 31, 2023 to RMB220.6 million as of December 31, 2024, primarily due to a decrease of RMB58.6 million in work in progress as of December 31, 2024 as a result of our optimization of project management and goods-in-transit relating to equipment to be delivered in an amount of RMB32.8 million as of December 31, 2023.
Financial Information · p. 208
During the Track Record Period, our inventory impairment primarily arose where actual project costs exceeded initial estimates, mainly due to higher-than-expected manpower input resulting from project complexity or lower-than-planned execution efficiency.
Financial Information · p. 208
We manage our inventories by monitoring projects on a monthly basis and analyze variances for projects falling behind schedule, with timely adjustments to team structure and resource allocation where necessary.
During the Track Record Period, we recorded a substantial inventory write-down, primarily due to the rapid product iteration characteristic of the robotics industry.
Financial Information · p. 222
For example, we made a 100% provision for inventories older than two years.
Financial Information · p. 222
We believe the relatively long inventory turnover days reflect our project-based business model rather than any issues with inventory recoverability.
We believe the risk associated with our inventory utilization is relatively low, given that (i) most of our inventories are aged within one year; and (ii) our inventories, primarily consisting of production-grade silicon wafers, chemicals, gases, sputtering targets, photoresists and components, as well as work in progress and finished goods, which are, in nature, less likely to deteriorate in the short run and can be gradually utilized or sold through ongoing contracts.
Financial Information · p. 203
As of April 30, 2026, RMB1,387.5 million, or 76.2%, of inventories as of December 31, 2025 had been used, consumed or sold.
Based on the above considerations, in 2023, 2024 and 2025, we made inventory write-down of RMB9.0 million, a reversal of inventory write-down RMB18.1 million and an inventory write-down of RMB9.7 million, respectively.
Financial Information · p. 247
The proportion of inventories with an age of more than two years was less than 9% during the Track Record Period, which generally aligns with our management’s expectations.
Financial Information · p. 247
As of April 30, 2026, RMB29.4 million, or 35.5%, of inventories as of December 31, 2025, had been used, consumed or sold.
Our inventories increased from RMB511.1 million as of December 31, 2024 to RMB781.1 million as of December 31, 2025, primarily due to (i) an increase in finished goods from RMB482.4 million as of December 31, 2024 to RMB520.8 million as of December 31, 2025, (ii) an increase in raw materials from RMB104.1 million as of December 31, 2024 to RMB173.8 million as of December 31, 2025, (iii) an increase in work in progress from RMB4.4 million as of December 31, 2024 to RMB36.0 million as of December 31, 2025 and (iv) an increase in goods in transit from RMB27.6 million as of December 31, 2024 to RMB56.8 million as of December 31, 2025, mainly reflecting the expansion of our production activities in line with our sales growth and broader customer base.
Financial Information · p. 204
Our inventory turnover days further decreased to 120 days in 2025, primarily due to further sell-down of the Legacy Inventory and our active measures to align production more closely with sales demand.
Financial Information · p. 204
As of April 30, 2026, 70.6% of our total inventories as of December 31, 2025, or RMB551.1 million, had been utilized or sold.
Our inventories and other contract cost decreased from RMB160.7 million as of December 31, 2023 to RMB109.0 million as of December 31, 2024, and further decreased to RMB47.1 million as of December 31, 2025.
Financial Information · p. 231
Our inventories turnover days decreased from 465 days in 2023 to 257 days in 2024 and further decreased to 115 days in 2025, which are calculated as the average of beginning and ending balance of inventories for the period divided by cost of sales of goods and services for that period and multiplied by the number of days (i.e., 365 days for 2023, 2024 and 2025) during such period.
Financial Information · p. 232
Based on the foregoing, our Directors are of the view that sufficient provision has been made based on the net realizable value test.
Our inventories increased from RMB1,739.1 million as of December 31, 2024 to RMB2,092.4 million as of December 31, 2025, primarily due to the increased procurement of raw materials in line with the expansion of our business scale.
Financial Information · p. 158
As of April 30, 2026, 38.1% of our inventories as of December 31, 2025, or RMB796.8 million, were utilized or sold.
Our inventories amounted to RMB2,173.1 million, RMB1,486.0 million and RMB1,537.2 million as of December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 213
Our provisions for impairment of inventories decreased from RMB151.4 million as of December 31, 2023 to RMB136.0 million as of December 31, 2024, and further decreased to RMB77.9 million as of December 31, 2025.
Financial Information · p. 213
Our inventory turnover days decreased from 217 days in 2023 to 187 days in 2024 and further to 136 days in 2025.
Our inventories and contract costs decreased from RMB172.0 million as of December 31, 2023 to RMB161.6 million as of December 31, 2024, primarily due to a write-down of inventories and contract costs resulted from intensified market competition.
Financial Information · p. 215
We believe that there is no material impairment issue for our inventories and contract costs.
Financial Information · p. 216
As of April 30, 2026, approximately RMB146.6 million, or 68.1%, of our inventories and contract costs as of December 31, 2025 had been subsequently consumed.
Our inventories increased by 28.1% from RMB80.1 million as of 31 December 2023 to RMB102.6 million as of 31 December 2024, primarily due to increased procurement and production to meet our increased customer orders.
Financial Information · p. 218
We recognised provision of impairment for inventories, net of RMB0.7 million, RMB1.2 million and RMB3.1 million during 2023, 2024 and 2025, respectively.
Financial Information · p. 219
As of 30 April 2026, RMB58.9 million, or 68.6%, of our inventories as of 31 December 2025 had been subsequently sold or utilised.
Our inventories increased from RMB97.5 million as of December 31, 2023 to RMB122.1 million as of December 31, 2024, primarily due to increases in work in progress and finished goods, reflecting the advancement of certain ongoing CDMO projects.
Financial Information · p. 193
We recorded write-down of inventories of RMB7.5 million, RMB9.4 million and RMB12.6 million in 2023, 2024 and 2025, respectively.
Financial Information · p. 193
Our inventory turnover days increased from 80.4 in 2024 to 92.5 in 2025, primarily attributable to advance procurement of raw materials for large-scale commercial campaigns scheduled for early 2026.
Our impairment losses, net of reversal, increased by 6.6% from a loss of RMB16.6 million in 2023 to a loss of RMB17.7 million in 2024, primarily due to higher provisions for inventories attributable to our capacity expansion.
Financial Information · p. 139
Our inventories turnover days decreased from 89 days in 2023 to 82 days in 2024, and further decreased to 77 days in 2025, primarily due to faster inventory turnover driven by more active shipments to customers.
Financial Information · p. 141
As of March 31, 2026, 59.0% of our total inventories as of December 31, 2025, or RMB187.5 million, were utilized or sold.
Our inventories decreased by 86.1% from RMB105.6 million as of December 31, 2024 to RMB14.7 million as of December 31, 2025, primarily due to (i) the write-down of our raw materials considering our future consumption; and (ii) the return of certain aged raw materials to a supplier pursuant to an exchange arrangement of raw materials.
Financial Information · p. 257
As of the effective date of the arrangement, the carrying amount of the said inventories was RMB61.2 million and was destroyed, leading to the decrease of raw materials as of December 31, 2025.
Financial Information · p. 257
In June 2025, we have entered into an arrangement with a raw material supplier, pursuant to which the supplier agreed to supply new azvudine raw materials with equivalent weight and quantity to a batch of raw materials previously stored in the supplier’s warehouse over a period of five years from the effective date, to be delivered in batches based on our orders, with no additional consideration payable by us.
In accordance with the relevant accounting standards, we recorded provision for impairment losses on inventories of RMB8.0 million and RMB16.1 million as of December 31, 2023 and 2024, respectively, primarily because of a decrease in the average selling price of ethanol.
Financial Information · p. 255
As of March 31, 2026, approximately RMB57.9 million, or 100.0%, of our inventories as of December 31, 2025 had been utilized or sold.
Our inventories decreased by 63.6% from RMB293.6 million as of December 31, 2024 to RMB106.8 million as of December 31, 2025, primarily due to (i) our progressive transition to a produce-on-demand model, and (ii) the expansion of processing services in the fourth quarter of 2025, under which certain inventories were not recognized at cost and therefore excluded from our owned inventories.
Financial Information · p. 224
Our inventory turnover days were 66 days, 48 days and 36 days in 2023, 2024 and 2025, respectively.
Financial Information · p. 224
Our Directors considered the accumulated provision for our inventories in the amount of RMB11.2 million, representing 9.5% of gross amount of our inventories as of December 31, 2025 is appropriate and sufficient.
During the Track Record Period, we had substantial inventories, principally work in progress, due to our accounting policy which stipulates revenue and costs from smart intralogistics solutions are recognized only upon customer acceptance of on-site delivery.
Financial Information · p. 216
Our inventory turnover days were 601 days, 482 days and 327 days in 2023, 2024 and 2025, respectively.
Financial Information · p. 217
Provisions for impairment of inventories surged from RMB9.7 million as of December 31, 2023 to RMB46.9 million as of December 31, 2024 mainly because we incurred higher labor costs than we budgeted on a large-value, strategic solution project in Europe. Provisions for impairment of inventories further increased into RMB56.2 million, primarily driven by a RMB10.8 million provision for a project in Southeast Asia in 2025, as we incurred additional costs to accommodate unexpected site conditions and uphold our service standards.