Significant rise in inventory levels

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.

2023-11-07Prospectus
WuXi XDC Cayman Inc.药明合联生物技术有限公司02268.HK

Our inventories decreased to RMB47.4 million as of June 30, 2023, primarily representing inventory consumed for our manufacturing activities and our inventory optimization strategy to lower our inventory level to approximately two to three months’ supply.

Financial Information · p. 333

As of September 30, 2023, approximately RMB17.0 million, or 36.0%, of our inventories as of June 30, 2023 had been consumed.

Financial Information · p. 334

Our Directors concluded that we do not have any material recoverability issue for our inventories and the write-down of inventories was adequate and reasonable for the following reasons.

Financial Information · p. 334
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-10-31Prospectus
FOLANGSI CO., LTD广州佛朗斯股份有限公司02499.HK

Our inventories increased from RMB56.6 million as of December 31, 2020, to RMB69.2 million as of December 31, 2021, to RMB84.5 million as of December 31, 2022, and further to RMB95.2 million as of April 30, 2023.

Financial Information · p. 340

As of August 31, 2023, RMB58.4 million, or 61.4%, of our inventories as of April 30, 2023 had been delivered or consumed.

Financial Information · p. 341

Our Directors believe that there is no recoverability issue for our inventories aged over one year primarily because (i) our inventories aged over one year did not remain static but gradually sold or utilized during the Track Record Period.

Financial Information · p. 341
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-10-30Prospectus
XXF Group Holdings Limited喜相逢集团控股有限公司02473.HK

Our inventories remained relatively stable at RMB141.9 million as at 31 December 2021 as compared to RMB142.0 million as at 31 December 2020, then increased to RMB193.6 million as at 31 December 2022, primarily attributable to the increase in automobiles by RMB49.5 million mainly due to the increase in inventories aged 0–30 days by RMB41.5 million attributable to the increase in automobile purchase in December 2022 as to take advantage of preferential tax benefit, which was set to expire by the end of 2022.

Financial Information · p. 405

Our automobiles aged over 90 days mainly represented repossessed automobiles not yet leased or disposed.

Financial Information · p. 406

As at the Latest Practicable Date, RMB121.9 million or 91.5% of our inventories outstanding as at 30 June 2023 were sold or utilised.

Financial Information · p. 406
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-10-20Prospectus
GUOQUAN FOOD (SHANGHAI) CO., LTD.锅圈食品(上海)股份有限公司02517.HK

Our inventories increased to RMB1,047.4 million as of December 31, 2022, primarily due to an increase in the level of inventories for finished goods, as a result of (i) the growing number of our franchised stores; (ii) our increased purchase of finished goods in preparation of the relatively early spring festival in mid-January 2023; and (iii) our increased level of inventories in the second half of 2022 in preparation of the supply chain disruptions resulted from the COVID-19 pandemic.

Financial Information · p. 319

All of our inventories aged within one year throughout the Track Record Period.

Financial Information · p. 320

Our inventory turnover days subsequently increased from 50.8 days in 2022 to 58.5 in the four months ended April 30, 2023, primarily due to a strategic stock up of raw materials for food production.

Financial Information · p. 320
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-09-28Prospectus
Luyuan Group Holding (Cayman) Limited绿源集团控股(开曼)有限公司02451.HK

Our inventories increased by 86.1% from RMB208.5 million as of December 31, 2020 to RMB388.1 million as of December 31, 2021, primarily because (i) we stocked up our raw materials and finished goods in advance in anticipation of a rise in the price of batteries in the next year, and (ii) our Guangxi Plant commenced operation and enhanced our production capabilities.

Financial Information · p. 374

Our inventory turnover days remained relatively stable in 2021 and 2022.

Financial Information · p. 375

The Directors believe that there was no material recoverability issue for inventories and no provision for inventories had been made during the Track Record Period.

Financial Information · p. 375
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-09-28Prospectus
Shiyue Daotian Group Co., Ltd.十月稻田集团股份有限公司09676.HK

Our inventories increased by 62.2% from RMB647.2 million as of December 31, 2020 to RMB1,049.8 million as of December 31, 2021, and further increased by 30.8% from RMB1,049.8 million as of December 31, 2021 to RMB1,372.7 million as of December 31, 2022, primarily due to (i) the increase in raw materials to satisfy our increasing sales and production needs, taking into account our sales volume growth and our enhanced production capacity; and (ii) the increase in finished products for sale in anticipation of the sales peak before the Chinese New Year, which was also in line with our sales volume growth.

Financial Information · p. 317

Our inventory turnover days increased from 100 days in 2021 to 116 days in 2022, primarily because we actively purchased more raw materials as we have enhanced storage capacity with our warehouses in Aohan and Songyuan completed, so as to satisfy our increasing sales and production needs.

Financial Information · p. 318

As of July 31, 2023, 79.6% of our total inventories as of March 31, 2023, or RMB969.1 million, had been utilized or sold.

Financial Information · p. 319
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-09-18Prospectus
Beijing Fourth Paradigm Technology Co., Ltd.北京第四范式智能技术股份有限公司06682.HK

The significant increase in our inventories from RMB28.2 million as of December 31, 2020 to RMB184.5 million as of December 31, 2021 was primarily due to the increase of contract fulfillment costs, mainly because some of our solution projects’ schedules were extended as affected by the COVID-19 pandemic.

Financial Information · p. 355

As of July 31, 2023, RMB153.7 million, accounting for approximately 37.6% of the RMB408.4 million inventories as of March 31, 2023, had been subsequently settled.

Financial Information · p. 355
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-09-14Prospectus
TUHU Car Inc.途虎养车股份有限公司09690.HK

Our inventory turnover days increased from 45 days in 2019 to 60 days in 2020 and decreased to 59 days in 2021, further changed to 64 days in 2022, and deceased to 56 days in the three months ended 31 March 2023.

Financial Information · p. 423

As of 31 December 2019, 2020, 2021 and 2022 and 31 March 2023, sufficient provision has been made with regard to the inventories aged between 1-2 years, which amounted to RMB11.7 million, RMB21.4 million, RMB41.4 million, RMB62.9 million and RMB61.6 million, respectively.

Financial Information · p. 424

As of 31 July 2023, RMB1,045.9 million, representing 67.2% of our inventories as of 31 March 2023 was subsequently utilized.

Financial Information · p. 424
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-06-30Prospectus
Keep Inc.03650.HK

Our inventories were RMB94.6 million, RMB117.9 million, RMB198.8 million and RMB167.7 million as at December 31, 2019, 2020, 2021 and 2022, respectively.

Financial Information · p. 309

The balance of provision for impairment as at December 31, 2022 was RMB14.2 million. We experienced an increase in the provision for impairment due to the decreased net realizable values of inventory as at December 31, 2022.

Financial Information · p. 310

The decrease of inventories with an age of over one year was primarily due to the disposal of old and excess inventories to optimize our inventory.

Financial Information · p. 309
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-06-19Prospectus
ADICON Holdings Limited艾迪康控股有限公司09860.HK

Our inventory balance increased by 109.7% from RMB109.4 million as of December 31, 2021 to RMB229.4 million as of December 31, 2022, primarily due to an earlier stock-up of reagents, equipment and instruments as a result of early Chinese New Year season in 2023.

Financial Information · p. 290

Our inventory turnover days remained relatively stable during the Track Record Period.

Financial Information · p. 290

As of April 30, 2023, RMB189.2 million, or 82.0% of our inventories outstanding as of December 31, 2022 was sold or utilized.

Financial Information · p. 290
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-06-15Prospectus
YSB Inc.药师帮股份有限公司09885.HK

Our inventories increased by 64.3% from RMB516.1 million as of 31 December 2020 to RMB847.8 million as of 31 December 2021, primarily due to the expansion of our Self-operation Business.

Financial Information · p. 261

As a result, we generally make impairment provision to inventories for products with a remaining shelf life of less than nine months as of the end of each year.

Financial Information · p. 261

As of 30 April 2023, RMB985.7 million, or 95.7%, of our inventories as of 31 December 2022 had been sold or utilised.

Financial Information · p. 262
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-05-12Prospectus
Horizon Construction Development Limited宏信建设发展有限公司09930.HK

Our inventories increased from RMB165.8 million as of December 31, 2020 to RMB291.4 million as of December 31, 2021, primarily due to (i) an increase in work in progress of RMB63.7 million; and (ii) an increase in raw materials of RMB41.9 million mainly attributable to increased manufacturing efforts in relation to the neo-formwork system (equipment volume of which increased from 338.3 thousand tons as of December 31, 2020 to 534.4 thousand tons as of December 31, 2021).

Financial Information · p. 372

As of March 31, 2023, RMB123.5 million or 66.3% of our inventories as of December 31, 2022, were subsequently utilized.

Financial Information · p. 373

As such, the Directors believe that there was no recoverability issue for inventories and sufficient provision has been made.

Financial Information · p. 373
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-04-17Prospectus
ZJLD Group Inc珍酒李渡集团有限公司06979.HK

Our inventories increased from RMB1,736.9 million as of December 31, 2020 to RMB3,649.3 million as of December 31, 2021, and further increased by 40.8%, or RMB1,489.2 million, to RMB5,138.5 million as of December 31, 2022 as we have continued to expand our baijiu production catering to the growing market demand for our products.

Financial Information · p. 293

As a result of the requisite aging procedures in baijiu-making process, our inventory turnover days were relatively long during the Track Record Period, being 517.0 days in 2020, 414.4 days in 2021 and 612.8 days in 2022.

Financial Information · p. 293

Throughout the Track Record Period, we did not experience material recoverability issues with respect to our inventories.

Financial Information · p. 294
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-03-21Prospectus
China Treasures New Materials Group Ltd.中宝新材集团有限公司02439.HK

Our average inventory turnover days were approximately 180 days, 118 days, 58 days and 51 days, respectively, for FY2019, FY2020, FY2021 and 9M2022.

Financial Information · p. 385

Our inventory balance as at 30 September 2022 increased by approximately RMB19.6 million due to increase in raw material level by approximately RMB20.3 million to cope with possible delay in delivery of raw material net off by decrease in finished goods of approximately RMB0.7 million due to fulfilment of orders before month end.

Financial Information · p. 384

Up to the Latest Practicable Date, approximately 99.8% of our inventories as at 30 September 2022, were subsequently utilised.

Financial Information · p. 385
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-03-16Prospectus
DPC Dash Ltd达势股份有限公司01405.HK

Our inventories increased from RMB25.7 million as of December 31, 2020 to RMB36.5 million as of December 31, 2021 and further increased from RMB36.5 million as of December 31, 2021 to RMB66.9 million as of December 31, 2022.

Financial Information · p. 369

For the years ended December 31, 2020, 2021 and 2022, our inventory turnover days were 27.5 days, 26.7 days and 34.3 days.

Financial Information · p. 370

As of the Latest Practicable Date, RMB63.0 million, or 94.2% of our inventories outstanding as of December 31, 2022 had been sold or utilized.

Financial Information · p. 370
The company's explanation, the adviser's view and the page in the filing: see Matters
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