Hong Kong IPO disclosure precedents · 85 companies, 85 items
Disclosures highlighting inventory turnover days that are unusually long, rising, or spiking sharply during the track record period, with explanations for the trend.
Our inventories increased from US$38.3 million as of December 31, 2023 to US$41.2 million as of December 31, 2024, then to US$43.4 million as of December 31, 2025, and further to US$46.7 million as of June 30, 2026, primarily attributable to (i) increases in raw materials and work-in-progress inventories driven by continuous increase in customer orders; and (ii) a higher level of in-house manufacturing activities, which resulted in additional inventory being maintained to support production requirements.
Financial Information · p. 230
Our inventory turnover days increased from 85 days in 2023 and 2024 to 89 days in 2025, and further increased to 101 days in the six months ended June 30, 2026, primarily due to (i) the expansion of our in-house production of key components, such as cylinders, for our HRS; (ii) the transitional period associated with the introduction of product design standardization initiatives; and
Financial Information · p. 231
As of July 31, 2026, US$13.2 million, or 28.3%, of our inventory as of June 30, 2026 had been subsequently sold or utilized.
Our inventory turnover days were 218 days, 191 days, 180 days and 186 days in 2023, 2024 and 2025 and the five months ended May 31, 2026, respectively.
Financial Information · p. 244
The relatively higher inventory turnover days in 2023 was primarily because the consumption of our inventories slowed down due to the reduction in our revenue in the year mainly attributable to the softening demand from downstream industries, especially the photovoltaic industry.
Financial Information · p. 244
We recorded write-downs of inventories of RMB36.1 million, RMB46.6 million, RMB53.2 million and RMB57.4 million as of December 31, 2023, 2024 and 2025 and May 31, 2026, respectively, primarily due to the increase in aged inventories as we stocked up to cope with market fluctuations and trial-production needs as our business scale expanded.
Our inventories increased from RMB410.5 million as of December 31, 2025 to RMB512.7 million as of April 30, 2026, primarily due to (i) an increase in work in progress from RMB225.5 million to RMB274.7 million and (ii) an increase in finished goods from RMB111.4 million to RMB157.0 million, reflecting our inventory build-up in response to increasing customer demand for SiPh business.
Financial Information · p. 207
The increase in our inventory turnover days to 411 days for the four months ended April 30, 2026 was mainly due to the build-up of inventory to support in-progress orders on hand, rather than any accumulation of obsolete or slow-moving inventory.
Financial Information · p. 208
During the Track Record Period, we recognized inventory write-downs of RMB18.6 million, RMB50.5 million, RMB16.8 million and RMB3.4 million as expenses in 2023, 2024, 2025 and four months ended April 30, 2026, respectively.
Our inventories increased by 21.5% from RMB652.7 million as of December 31, 2023 to RMB792.7 million as of December 31, 2024, primarily due to an increase in finished goods, mainly resulting from our higher stockpiling in anticipation of increased future sales following the inclusion of more types of our drugs in the VBP program.
Financial Information · p. 229
Our inventory turnover days increased from 123.1 days in 2024 to 135.0 days in 2025, primarily due to an increase in average inventory level to support our sales increment.
Financial Information · p. 229
During the Track Record Period, our inventory write-downs were primarily attributable to (i) certain materials becoming idle or slow-moving, (ii) lower net realizable value of certain products as a result of relatively low gross profit margins or lower selling prices, and (iii) relatively high unit production costs of certain products.
Our inventories then increased to RMB1,703.7 million as of December 31, 2025, and further to RMB2,155.4 million as of June 30, 2026, as we placed more orders with our foundry and OSAT vendors and built up our inventories in preparation for the anticipated growth in customer demand.
Financial Information · p. 208
Our inventory turnover days decreased from 257 days in 2023 to 213 days in 2024 and remained relatively stable at 213 days in 2025, with the decrease in 2024 primarily attributable to our effective inventory management during the year, as we optimized our procurement planning based on accurate forecasts of customer demand, which reduced our raw material and overall inventory levels while our sales continued to grow.
Financial Information · p. 208
As of July 31, 2026, approximately RMB308.9 million, or 13.5%, of our inventories (before provision for impairment) as of June 30, 2026 had been subsequently sold or utilized.
Our inventories increased by 68.7% from RMB714.8 million as of December 31, 2023 to RMB1,206.1 million as of December 31, 2024, further increased by 41.4% to RMB1,705.8 million, primarily due to an increase in finished goods of RMB508.9 million in 2024 and RMB259.2 million in 2025, resulting from preparing stocks in the United States under BTS model and the consolidation of the inventories of Champion Holdings following the Acquisition.
Financial Information · p. 246
Our inventory turnover days were 199 days, 183 days, 232 days and 229 days in 2023, 2024, 2025 and the four months ended April 30, 2026, respectively.
Financial Information · p. 248
Based on the foregoing, our Directors are of the view that the carrying amounts of our inventories as of April 30, 2026 were recoverable and that sufficient and appropriate provision for impairment of inventories had been made, taking into account the provision for impairment of inventories of RMB13.0 million, RMB13.5 million, RMB14.3 million and RMB14.8 million as of December 31, 2023, 2024 and 2025, and April 30, 2026, respectively.
Our inventories increased by 43.3% from RMB179.2 million as of December 31, 2023 to RMB256.7 million as of December 31, 2024, primarily attributable to an increase in contract fulfillment costs, which increased from RMB154.3 million to RMB227.4 million, reflecting a higher number of projects under implementation but not yet accepted by customers as of the end of 2024.
Financial Information · p. 246
In 2023, 2024, 2025, and the six months ended June 30, 2026, our inventory turnover days were 989 days, 964 days, 487 days, and 317 days, respectively.
Financial Information · p. 247
Our Directors are of the view that the inventory write-downs made during the Track Record Period were sufficient, taking into account (i) the fact that a significant portion of our inventories, particularly contract fulfillment costs, are supported by confirmed sales orders and ongoing project implementation; and (ii) the relatively low subsequent utilization rate of certain inventories is primarily due to alignment with customers’ specific project installation and deployment schedules rather than any fundamental impairment issues.
Our inventories increased by 17.4% from RMB37,943.6 million as of December 31, 2023 to RMB44,560.8 million as of December 31, 2024, and further increased by 28.4% to RMB57,204.0 million as of December 31, 2025, primarily due to the increase in finished goods, which was mainly attributable to the growth in closing reserves of photovoltaic installed capacity from 14,069 MW as of December 31, 2023 to 26,686 MW as of December 31, 2025.
Financial Information · p. 188
Our inventory turnover days increased from 246 days in 2023 to 304 days in 2024 and further to 423 days in 2025, primarily due to the increase in closing reserves of photovoltaic installed capacity.
Financial Information · p. 189
Our inventory turnover days decreased from 423 days in 2025 to 349 days in the six months ended June 30, 2026, primarily reflecting the acceleration of residential PV station sales.
Our inventories increased from RMB11.5 million as of December 31, 2024 to RMB14.7 million as of December 31, 2025 and RMB18.7 million as of June 30, 2026, primarily due to an increase in raw materials and consumables and work in progress which were in line with the growing demand of our products.
Financial Information · p. 247
Our inventory turnover days decreased from 204 days in 2024 to 172 days in 2025, and further to 129 days for the six months ended June 30, 2026, primarily due to (i) improved inventory management efficiency, including negotiating with suppliers to provide requested materials in batches and shorten the supply cycle and (ii) refined manufacturing processes which improve production efficiency and optimize our demands for inventory.
Financial Information · p. 248
(ii) enhance supplier delivery cycle management and optimize safety stock levels according to actual needs, ensuring stable supply while reducing excessive inventory buildup; (iii) optimize inventory structure, improve the utilization efficiency of shareable raw materials and components across different product lines, and strengthen the management of stagnant and low-turnover inventory;
Our inventories increased to RMB7.3 million as of June 30, 2026, primarily due to the increase in raw materials, work-in-progress and finished goods for GBS in line with the continued growth in sales volume and expanded production scale.
Financial Information · p. 248
We had relatively high level of inventory turnover days in 2024 as we started commercialization of our Core Product in the same year and built up inventory in anticipation of upcoming sales.
Financial Information · p. 249
As of July 31, 2026, RMB1.4 million, or 18.7%, of our inventories as of June 30, 2026, had been used, consumed or sold.
Our inventory increased from RMB290.1 million as of December 31, 2024 to RMB381.2 million as of December 31, 2025 driven by an increase in the semi-finished goods, raw materials and finished goods, primarily resulting from rising sales demand for icotinib and ensartinib.
Financial Information · p. 230
Our inventory turnover days decreased from 301 days in 2023 to 200 days in 2024 and further to 156 days in 2025 and 135 days in the six months ended June 30, 2026, primarily due to our improved inventory management.
Financial Information · p. 231
During the Track Record Period, we did not identify any impairment issues relating to our inventories.
Our inventories then increased to RMB263.4 million as of December 31, 2025, primarily due to inventory build-up in line with our production and sales plans.
Financial Information · p. 234
Our inventory turnover days were 128 days, 121 days, 120 days and 121 days in 2023, 2024 and 2025 and for the three months ended March 31, 2026, respectively, reflecting moderate fluctuations in our inventory turnover over the periods.
Financial Information · p. 235
As of June 30, 2026, approximately RMB180.6 million, or 62.6% of our inventories as of March 31, 2026, had been subsequently used or sold.
Our inventory turnover days decreased from 1,620 days in 2023 to 1,324 days in 2024, 432 days in 2025 and 344 days in the six months ended June 30, 2026, primarily due to continued increases in product sales and enhanced inventory management.
Financial Information · p. 256
Currently, golidocitinib has a three-year shelf life, and we believe the current inventory turnover days will not impact their efficacy.
Financial Information · p. 256
As of July 31, 2026, RMB5.0 million, or 11.6%, of our inventories as of June 30, 2026 had been utilized or sold.
Our inventories further increased to RMB16.8 million as of June 30, 2026, primarily due to a higher level of inventory maintained in line with the growing demand of sebaloxavir marboxil tablets.
Financial Information · p. 235
We recorded write-downs of inventories of RMB561 thousand as of June 30, 2026, primarily in respect of certain pre-commercialization inspection batches produced for the NDA dynamic inspection process that were expected to expire before being fully consumed in commercial production.
Financial Information · p. 235
Our inventory turnover days were relatively high throughout the Track Record Period, primarily because our Core Product, sebaloxavir marboxil tablets, was only approved in July 2025 and commercially launched in October 2025, and accordingly cost of sales was only recognized over a limited portion of the Track Record Period, while we maintained inventory levels to support the scale-up of our commercial sales.
Our inventories and other contract costs then increased to RMB63.2 million as of December 31, 2025, primarily due to (i) an increase in raw materials, mainly because we advanced our procurement forecasting in light of the production needs primarily for major customers newly secured in 2025; and (ii) an increase in finished goods, mainly as a result of increased production in line with our revenue growth.
Financial Information · p. 265
Our inventory turnover days increased from 109 days in 2024 to 133 days in 2025, primarily due to the increased inventory stocking in the second half of 2025 in anticipation of our expected business growth in 2026.
Financial Information · p. 265
Based on the foregoing, our inventory provision amounts were RMB18.2 million, RMB12.3 million, RMB12.1 million and RMB13.5 million as of December 31, 2023, 2024 and 2025 and March 31, 2026, respectively, and our Directors consider such provisions to be sufficient.
Our inventory and other contract costs increased from RMB630.1 million as of December 31, 2024 to RMB918.2 million as of December 31, 2025, primarily due to an increase in other contract costs caused by the increase in the number of automation systems in delivery progress as of December 31, 2025 that had not yet been accepted by customers, for which the accumulated contract costs were recognized on our balance sheet and will be subsequently recognized and as revenue upon customer acceptance.
Financial Information · p. 189
Our inventory turnover days increased from 155 days in 2025 to 230 days in the three months ended March 31, 2026, primarily attributable to our high inventory level as of March 31, 2026, as we maintained inventories to support the fulfillment of our orders on hand.
Financial Information · p. 191
As of May 31, 2026, RMB23.4 million of our other contract costs had been outstanding for more than three years, primarily due to delays in customer acceptance arising from factors such as changes in customers’ production processes, and incomplete acceptance procedures.
Our inventories increased from RMB37.5 million as of December 31, 2023 to RMB48.4 million as of December 31, 2024, and further increased to RMB62.9 million as of December 31, 2025.
Financial Information · p. 200
The increases were primarily driven by a strategic buildup of raw materials inventory.
Financial Information · p. 200
Our inventory turnover days were 47 days, 59 days, and 65 days in 2023, 2024 and 2025, respectively.
Our average inventory turnover days increased from 524 days in 2023 to 606 days in 2024, primarily due to the continued buildup of our semi-finished goods inventory for future production.
Financial Information · p. 242
Our average inventory turnover days remained at a relatively high level during the Track Record Period.
Financial Information · p. 242
During the Track Record Period, we recorded write-downs of inventories in respect of inventory obsolescence of approximately RMB10.8 million, RMB7.8 million, and RMB21.4 million as of December 31, 2023, 2024, and 2025, respectively.
Our inventories mainly include raw materials and consumables, finished goods and work in progress, with work in progress being the largest component which accounted for 67.0%, 65.1% and 74.1% of the inventory as at 31 December 2023, 2024 and 2025 respectively.
Financial Information · p. 228
Our inventory turnover days increased to 134 days in FY2025, primarily because the 2026 Chinese New Year fell in February and in anticipation of a surging sales demand during the holiday, we proactively increased inventory reserves, in particular the semi-processed products in our production process, in the fourth quarter of FY2025, combined with the effect of our slightly reduced sales performance in FY2025, which led to a decrease in inventory turnover rate.
Financial Information · p. 229
During the Track Record Period, all of our inventory aged within six months and we consider the risk of inventory recovery within such a period to be relatively low.
Our inventories continued to increase to RMB321.6 million as of December 31, 2025.
Financial Information · p. 192
As of December 31, 2023, 2024 and 2025, we recorded impairment for our inventories aged over one year of RMB12.1 million, RMB16.0 million and RMB17.3 million, respectively, representing 37.6%, 20.4% and 15.9% of our inventories aged over one year as of the respective dates, which percentages continuously decreased due to our improved inventory management.
Financial Information · p. 192
Our inventory turnover days increased from 219 days in 2023 to 248 days in 2024.