Hong Kong IPO disclosure precedents · 295 companies, 295 items
Disclosures of inventories growing substantially across the track record period, driven by demand growth, sales expansion, strategic stockpiling or raw material purchases.
Our inventories increased by 20.7% from RMB770.9 million as of December 31, 2024 to RMB930.3 million as of December 31, 2025, primarily due to increased procurement of memory wafers in anticipation of raw material price increases in the second half of 2025, as well as higher inventory levels of materials consigned for processing and work in progress, driven by increased production arrangements to meet growing orders.
Financial Information · p. 199
For the year of 2023, 2024 and 2025, we made provision for inventory write-down of RMB48.9 million, RMB30.7 million and RMB32.4 million, respectively.
Financial Information · p. 199
Our management believes that sufficient provision has been made for each of the Track Record Period.
Our contract fulfilment costs increased from RMB41.8 million as of December 31, 2023 to RMB122.3 million as of December 31, 2024 as we incurred labor costs and outsourcing fees for a number of projects which were at the development phase and had not yet reached the stage of mass production and sale.
Financial Information · p. 234
The turnover days of our inventories increased from 112 days in 2023 to 137 days in 2024, primarily due to (i) the significant increase in the contract fulfilment costs due to the commencement of and investment into a number of large projects with long lead time from initiation to revenue generation, and (ii) our decreasing cost of sales which was commensurate with our decreasing sales.
Financial Information · p. 236
We have since broken down customer orders into smaller units, scheduled production on a weekly basis instead of monthly basis and adjusted production plans more promptly to react to any changes in customer demand.
Our inventories then decreased by 32.5% to RMB125.0 million as of December 31, 2025, mainly due to the delivery of certain CSP system products.
Financial Information · p. 235
Our inventory turnover days decreased from 50 days in 2023 to 36 days in 2024, as we scaled up the procurement of materials for the delivery of our projects.
Financial Information · p. 236
As of December 31, 2023, 2024 and 2025, write-down of our inventories merely amounted to approximately RMB193,000, RMB357,000 and RMB432,000, respectively.
Our inventories further increased by 70.8% to RMB111.9 million as of December 31, 2024, primarily due to the increases in raw materials, work in process and finished goods, mainly as a result of the overall business growth in 2024 which led to increased production in order to capture market opportunities and meet anticipated customer demand.
Financial Information · p. 230
We recorded provision for inventories during the Track Record Period, primarily in connection with (1) the net realizable value of certain inventories fell below cost and (2) specific provisions for obsolete or unsellable items, such as long-aged products.
Financial Information · p. 230
As of January 31, 2026, RMB81.2 million, or 62.7% of our inventories as of October 31, 2025 had been subsequently sold.
Our inventories increased significantly from RMB57.6 million as of December 31, 2024 to RMB133.4 million as of December 31, 2025, primarily due to (i) increased stocking in advance to ensure delivery following increased sales orders and (ii) higher production volume aligned with growing sales forecast and monthly revenue.
Financial Information · p. 231
We have optimized, and will continue to optimize, demand forecasting and inventory planning using historical data and market trends to maintain appropriate safety stock levels, minimize overstocking, and ensure sufficient supply to meet demand fluctuations.
Our inventory turnover days remained relatively stable at 107 days, 119 days, 119 days and 133 days for the years ended December 31, 2022, 2023, 2024, and nine months ended September 30, 2025, respectively.
Financial Information · p. 224
The balance of inventories aged above one year increased from RMB5.4 million as of December 31, 2022 to RMB16.5 million as of December 31, 2023, further to RMB24.5 million as of December 31, 2024, and further to RMB27.4 million as of September 30, 2025.
Financial Information · p. 225
The increase in inventories aged over one year was primarily due to historical mismatches between sales forecasts and inventory planning.
Our inventories increased from RMB19.5 million as of December 31, 2022 to RMB41.7 million as of December 31, 2023, primarily due to the increase in contract performance costs and increased purchase of raw materials in response to our ramping-up sales activities.
Financial Information · p. 235
Our inventory turnover days increased from 106 days in 2024 to 161 days for the nine months ended September 30, 2025, primarily due to the seasonality nature of our business, which means the mismatch between cost of sales and inventory balance.
Financial Information · p. 236
As of January 31, 2026, RMB23.8 million, or approximately 66.0% of our inventory balance as of September 30, 2025, had been sold or utilized.
Our turnover days increased from 106.7 days in 2022 to 115.8 days in 2023, and further to 170.2 days in 2024, primarily due to our strategic decision to stockpile raw materials at late 2023 in anticipation of future sales volume and customer demand, and the technical calculation of inventory turnover days was affected largely by the opening inventories balance.
Financial Information · p. 238
Our turnover days slightly increased from 170.2 days in 2024 to 178.4 days for the nine months ended September 30, 2025, primarily because our cost of sales for the nine months ended September 30, 2025 experienced a relatively significant decline as compared to 2024, in line with the fluctuations in our revenue, and an increase in the closing balance of our inventories as of September 30, 2025, leading to higher turnover days.
Financial Information · p. 238
As of January 31, 2026, RMB85.5 million, or approximately 30.6%, of our inventory balance as of September 30, 2025, had been sold or utilized.
In 2022, 2023, 2024 and the nine months ended September 30, 2024 and 2025, we had inventory write-down of RMB14.1 million, RMB0.6 million, RMB4.3 million RMB5.7 million and RMB3.5 million, respectively.
Financial Information · p. 256
We had a relatively higher level of inventory write-down in 2022, primarily due to write-down of inventories related to cobots developed for specific tasks and application scenarios, such as moxibustion physiotherapy.
Financial Information · p. 256
These factors led to the increase in the proportion of inventories with an age of more than one year to the gross inventory balance increased from 7.0% as of December 31, 2022 to 19.3% as of September 30, 2025.
Our inventories increased by 31.0% from RMB89.3 million as of December 31, 2024 to RMB117.0 million as of September 30, 2025, primarily due to (i) an increase in raw materials in anticipation of higher product demand, (ii) an increase in contract costs driven by new orders for our testing solutions, partially offset by a decrease in finished goods in line with our increased sales volume.
Financial Information · p. 397
Our inventory turnover days slightly increased from 66.7 days in 2023 to 75.0 days in 2024 and 79.0 days in the nine months ended September 30, 2025, primarily due to the increase in the inventory in anticipation of higher product demand, generally in line with our business growth.
Financial Information · p. 397
As of January 31, 2026, RMB87.4 million, or 72.4% of inventories as of September 30, 2025, had been utilized or sold subsequent to September 30, 2025.
Our inventories increased by 35.5% from RMB458.6 million as of December 31, 2024 to RMB621.2 million as of September 30, 2025, primarily due to (i) the increase in work-in-progress inventories resulting from higher order volume and the corresponding expansion of our production scale as our revenue grew during the period; (ii) the increase in inventory levels of raw materials and consumables in response to stronger market demand; and (iii) the increase in inventories at both our domestic production facilities and our Thai Base as the latter transitioned from its preparation stage to the commencement of mass production.
Financial Information · p. 204
Our inventories turnover days decreased from 89 days in 2023 to 72 days in 2024, and further deceased to 66 days in the nine months ended September 30, 2025, primarily due to faster inventories turnover driven by increased market demand and the expansion of our sales scale.
Financial Information · p. 205
As of January 31, 2026, RMB524.6 million, or 75.7% of our inventories as of September 30, 2025 had been utilized or sold.
Our inventories further increased to RMB386.8 million as of December 31, 2025, primarily due to (i) an increase of RMB19.1 million in work in progress, (ii) an increase of RMB8.2 million in finished goods, and (iii) an increase of RMB5.2 million in raw materials, all of which were mainly in response to the anticipated increase in customer demand for our products, in particular in the overseas market, to ensure timely delivery of our products.
Financial Information · p. 230
In 2023, 2024 and 2025, our inventory turnover days were 122 days, 103 days and 121 days, respectively.
Financial Information · p. 231
During the Track Record Period, we recorded impairment losses on inventories of RMB1.5 million, RMB4.3 million and RMB6.5 million in 2023, 2024 and 2025, respectively.
Our inventories increased from RMB6.2 million as of December 31, 2023 to RMB21.4 million as of December 31, 2024, and further increased to RMB66.6 million as of September 30, 2025, primarily due to an increase in IP accessories from non-core IP derivatives.
Financial Information · p. 219
Our inventory turnover days increased from 2.2 days in 2023 to 6.5 days in 2024 and further to 18.1 days for the nine months ended September 30, 2025, primarily due to an increase in IP accessories from non-core IP derivatives.
Financial Information · p. 220
As of January 31, 2026, RMB58.9 million, or 81.9% of our inventories as of September 30, 2025, had been used, consumed or sold.
Our inventories increased by 4.2% from RMB3,267.7 million as of December 31, 2022 to RMB3,405.0 million as of December 31, 2023, and further increased by 6.2% to RMB3,617.0 million as of December 31, 2024, primarily due to an increase in finished goods resulting from our expansion of production capacity and logistics arrangements in response to growing customer demand and delivery timelines.
Financial Information · p. 221
Our inventories decreased by 6.1% from RMB3,617.0 million as of December 31, 2024 to RMB3,397.7 million as of September 30, 2025, reflecting the improvement in our inventory management policies that boosted inventory conversion efficiency.
Our inventories increased by 24.8% from RMB650.6 million as of December 31, 2024 to RMB812.2 million as of September 30, 2025, primarily due to an increase in raw materials as we increased the inventory of memory chips.
Financial Information · p. 326
Our inventory turnover days increased from 85.1 days in 2022 to 106.0 days in 2023, primarily due to an increase in the inventory of memory chips in 2023.
Financial Information · p. 327
By procuring a sufficient volume of chips before the full effect of the price increases, we were able to secure supply for future product deliveries and partially mitigate the impact of rising costs on our gross profit margin.
Our inventories further increased by 28.4% to RMB1,721.0 million as of December 31, 2024, primarily reflecting (i) an increase of RMB173.5 million in finished goods, as we stocked certain general-purpose models to ensure a rapid response to needs of our key account customers; and (ii) an increase of RMB147.7 million in work in progress, mainly due to our increased orders for intelligent manufacturing systems in 2024, which are characterized by extended production cycles, leading to a temporary buildup of work-in-progress inventory.
Financial Information · p. 358
Our inventory turnover days further increased to 194 days in 2024, primarily driven by our proactive strategy of maintaining higher inventory levels of certain general-purpose models to promptly meet the needs of our key account customers and ensure operational readiness.
Financial Information · p. 359
As of December 31, 2022, 2023, and 2024 and September 30, 2025, our write-down of inventories amounted to RMB58.1 million, RMB74.3 million, RMB112.5 million and RMB104.5 million, respectively.
Our inventories increased by 42.5% from RMB1,205.6 million as of December 31, 2024 to RMB1,718.0 million as of October 31, 2025, primarily due to increases in goods in transit and finished goods as a result of increased sales, reflecting the seasonality of our business.
Financial Information · p. 238
Our inventory turnover days increased to 53.6 days for the ten months ended October 31, 2025, which were higher than the turnover days in the full year of 2024, primarily due to the seasonal fluctuations.
Financial Information · p. 238
As of January 31, 2026, approximately RMB1,028.5 million, or 57.8% of inventories as of October 31, 2025, have been used, consumed or sold.
Our inventories increased from RMB865.3 million as of December 31, 2024 to RMB1,139.1 million as of September 30, 2025, primarily attributable to (i) an increase in raw materials and consumables, due to the enhancement of raw material reserves to meet growing market demand and mitigate the potential impact of fluctuations in raw materials supply; and (ii) an increase in finished goods due to increased production to support the expansion of our business.
Financial Information · p. 252
Our inventories turnover days were 63.6 days, 65.5 days, 59.9 days and 65.2 days in 2022, 2023, 2024 and the nine months ended September 30, 2025, respectively.
Financial Information · p. 253
As of December 31, 2025, RMB741.1 million, or 62.3% of our inventories outstanding as of September 30, 2025, was subsequently utilized.
Our turnover days remained stable at 419.9 days in 2022 and 421.5 days in 2023, increased to 593.6 days in 2024 and then decreased to 540.5 days in the nine months ended September 30, 2025.
Financial Information · p. 318
During the Track Record Period, we have experienced extended acceptance period, being the time gap between delivery and revenue recognition, as we recognize revenue from sales of intelligent equipment upon the receipt of customer acceptance, which is formally acknowledged through signed customer confirmation verifying that the equipment meets the specified requirements and is fully operational to the customer’s satisfaction.
Financial Information · p. 319
For the years ended December 31, 2022, 2023, 2024 and the nine months ended September 30, 2024 and 2025, the write-down of inventories was approximately RMB114.9 million, RMB411.5 million, RMB548.7 million, RMB84.9 million and RMB170.4 million, respectively, which was recorded under the cost of sales.
Our inventories increased by 39.8% from RMB87.3 million as of December 31, 2023 to RMB122.0 million as of December 31, 2024 primarily due to the increase in semi-finished products and work in process and finished products.
Financial Information · p. 294
Our inventory turnover days increased from 90.9 days in 2022 to 115.2 days in 2023, and then decreased to 90.1 days in 2024.
Financial Information · p. 295
As of November 30, 2025, approximately RMB83.6 million, or 73.3% of our inventories as of August 31, 2025 had been utilized or sold.