Hong Kong IPO disclosure precedents · 30 companies, 30 items
Disclosures on the age profile of inventories, including balances aged over one, two or three years, and post-period utilisation or movement of aged stock.
Our inventories decreased from RMB320.7 million as of December 31, 2022 to RMB254.1 million as of December 31, 2023, primarily due to the transfer of inventories to cost of sales in connection with our revenue growth.
Financial Information · p. 405
In most cases, these inventories have a relatively long delivery circle (sometimes more than one year), and we receive milestone payment in progress with these projects.
Financial Information · p. 405
As of August 31, 2025, RMB20.1 million, or approximately 18.9% of our inventories as of June 30, 2025 had been subsequently consumed or sold.
The balances of our inventories remained relatively stable during the Track Record Period.
Financial Information · p. 441
Our average inventory turnover days increased from 158 days for the year ended December 31, 2023 to 166 days for the year ended December 31, 2024, and further to 168 days for the six months ended June 30, 2025, mainly because the balance of inventories slightly increased, while the cost of sales decreased as we took effective measures to enhance our supply chain management and lower our cost of inventories, such as securing additional volume discounts through centralized procurement arrangement and using cost-effective materials in product packaging.
Financial Information · p. 442
The balances of inventories aged over 36 months increased during the Track Record Period mainly because we procured large amount of Pu’er tea leaves in 2020 and 2021, and we preserved a portion of them for aging to improve their value and/or facilitate future sales.
Our inventories aged over one year primarily consisted of raw materials, mainly electronic components.
Financial Information · p. 377
We believe this approach enables a more prudent and comprehensive assessment of inventory recoverability and ensures that appropriate provisions for write-downs are made in accordance with our accounting policies.
Financial Information · p. 378
Inventory write-down is recorded as cost of revenues, and we recorded inventory write-offs of RMB39.4 million, RMB9.3 million, RMB2.2 million, RMB14.0 million and RMB2.0 million (US$0.3 million) in 2022, 2023, 2024 and the three months ended March 31, 2024 and 2025, respectively.
As at 31 December 2022, 2023 and 2024, our inventories aged over one year amounted to RMB50.4 million, RMB44.4 million and RMB42.0 million, representing 25.0%, 21.1% and 17.3% of our inventories during the respective years.
Our Directors consider that there is no recoverability issue for the inventories aged over one year and the provision for inventories are sufficient, considering (i) our historical sales performance, in particular, during the Track Record Period, we had not encountered any material impairment loss that have materially and adversely affected our business operations caused by slow-moving inventories; (ii) for inventories in stock as at 31 December 2022, 2023 and 2024, we have made provision account for over 55%, 70% and 70% of our inventories aged over 1 year, stated at the lower of cost and net realisable value and (iii) we may sell slow moving inventories at a discount.
Our inventories increased by 9.5% from RMB2,391.6 million as of December 31, 2022 to RMB2,618.8 million as of December 31, 2023, primarily due to an increase in the stock up of finished goods in preparation for the peak sales season during the Chinese New Year, partially offset by a decrease in raw materials and work in progress.
Financial Information · p. 302
Our inventory turnover days increased from 49.8 days in 2022 to 55.6 days in 2023, primarily due to (i) a decrease in sales volume of our products in 2023 and (ii) an increased year-end stock up of products in anticipation of Chinese New Year.
Financial Information · p. 303
As of April 30, 2025, RMB2,257.3 million, or 89.3% of inventories as of December 31, 2024, had been used, consumed or sold.
For each year of the Track Record Period, the impairment of inventories recognized in cost of sales amounted to RMB8.5 million, RMB19.5 million and RMB9.5 million, respectively.
Financial Information · p. 373
As of December 31, 2024, 81.6% of the net value of the inventories aged over 12 months were liquor inventories, which had a net value of RMB69.5 million.
Financial Information · p. 375
Since the liquor inventories are characterized by a long shelf life and suitability for long-term storage, their extended aging will not lead to a decrease in the selling prices.
The inventory turnover days decreased from 364 days in 2022 to 262 days in 2023, which was primarily due to the gradual consumption of existing COVID-19 diagnostic kits and writing-off existing inventories.
Financial Information · p. 536
The inventories with aging balance over 90 days, including aging balance over 120 days, were mainly related to Fortitude™ and precision multi-omics.
Financial Information · p. 537
Therefore, our Directors are of the view that there is no material recoverability issue as to our inventories with aging balance over 90 days, including aging balance over 120 days.
Our inventories increased from RMB1,251.9 million as of December 31, 2021 to
RMB1,541.2 million as of December 31, 2022, RMB2,231.7 million as of December 31, 2023, which was generally in line with | our business | expansion | over time.
Financial Information · p. 339
Our provision for impairment of inventories increased from RMB2.8 million as of December 31, 2022 to RMB35.3 million as of December 31, 2023, and further to RMB63.8 million as of September 30, 2024. This was primarily because we recorded additional provisions based on the lower of cost or net realizable value for certain slow-moving inventories that are not our core products.
Financial Information · p. 339
In response to the increase in aging of inventories mentioned above, our management has made adequate impairment provisions, which increased from RMB35.3 million as of December 31, 2023 to RMB63.8 million as of September 30, 2024.
Our inventory turnover days decreased from 1,098 days for the year ended December 31, 2022 to 538 days for the year ended December 31, 2023, which was primarily due to an increase in consumption of inventories in accordance with increase in our revenue.
Financial Information · p. 465
Our inventories with an age over two years as at December 31, 2023, which mainly comprised raw materials within shelf-life, increased by RMB3.7 million compared to December 31, 2022, primarily because sales of 2022 were below expectations due to the COVID-19 pandemic in 2022.
Financial Information · p. 464
97.0% of inventories as at May 31, 2024 were within their shelf-life and full provisions amounting to RMB0.9 million were made against inventories that expired or would expire in six months;