Our inventories increased from RMB394.2 million as of December 31, 2022 to RMB568.6 million as of December 31, 2023 and further to RMB1,068.1 million as of December 31, 2024, primarily due to the rising sales volume of our beverage products, which was consistent with our business expansion during the same periods, as well as the stockpiling to support our sales around the upcoming Chinese New Year.
Financial Information · p. 287
During the Track Record Period, no material impairment of inventories was identified, and no provision for impairment of inventories was made, as our inventories were subject to rapid turnover and were not exposed to the risk of material obsolescence or accumulation.
Financial Information · p. 287
As of November 30, 2025, RMB441.3 million, or 80.0% of our inventories outstanding as of September 30, 2025 had been sold or utilized.
Our inventories increased by 215.8% from RMB200.2 million as of December 31, 2022 to RMB632.2 million as of December 31, 2023, mainly due to (i) the consolidation of the inventories of Super Ming Group after the completion of the Super Ming Acquisition, and (ii) increased stock levels to support our expanded store network.
Financial Information · p. 296
Our inventories increased from RMB1,674.1 million as of December 31, 2024 to RMB2,490.6 million as of September 30, 2025, mainly due to increased stocking of goods in anticipation of higher sales during the Mid-Autumn Festival and National Day, as well as to support our increased sales demand attributable to our expanded business.
Financial Information · p. 297
As of November 30, 2025, RMB2,488.9 million, or 99.9%, of our inventories as of September 30, 2025, had been sold or utilized.
Our inventories increased from RMB1,144.4 million as of December 31, 2022 to RMB1,714.8 million as of December 31, 2023, and further to RMB1,881.6 million as of December 31, 2024 and RMB2,235.0 million as of September 30, 2025, primarily due to an increase in inventory level of raw materials in anticipation of our manufacturing needs.
Financial Information · p. 350
During the Track Record Period, we made significant provision for impairment loss on inventories, primarily because we prudently made full provision for inventories aged over 180 days, given the relatively short product life cycle of consumer electronics products.
Financial Information · p. 350
As of November 30, 2025, we have utilized 90.1% of our inventories, or RMB2,091.8 million, as of September 30, 2025.
Our inventories increased significantly from RMB182.4 million as of December 31, 2023 to RMB432.1 million as of December 31, 2024, primarily due to the increase in monthly production of copper cathodes at the DR Congo copper smelter I from December 2023 to December 2024, which pushed up the inventory level as of December 31, 2024.
Financial Information · p. 320
Our inventory turnover days increased from 54 days in 2022 to 80 days in 2023, primarily due to the commencement of production at DR Congo copper smelter I in August 2023, which pushed up the inventory level as of December 31, 2023.
Financial Information · p. 321
As of October 31, 2025, RMB375.6 million, or approximately 89.0% of our inventories as of June 30, 2025 had been utilized or sold.
Our inventories decreased from RMB12.4 billion as of December 31, 2022, to RMB6.3 billion as of December 31, 2023, primarily due to our continuous efforts in reducing the inventory level to tackle the cyclical industry downturns that led to a fluctuating market demand in 2023.
Financial Information · p. 323
Our inventory turnover days were 252.1 days, 202.9 days, 131.2 days and 137.4 days in 2022, 2023 and 2024 and in the six months ended June 30, 2025, respectively, primarily due to (i) the gradual recovery in market demands from the second half of 2023, and (ii) our active measures, including optimizing the procurement time and enhanced product promotion activities, to accelerate our inventory turnover, which have proven effective since 2023.
Financial Information · p. 324
We therefore do not consider there to be a material risk of inventory impairment, and consider our existing provisions for inventories are sufficient to cover any potential losses.
As of December 31, 2022, 2023 and 2024 and June 30, 2025, we recognized write-down of inventories of RMB228.7 million, RMB344.2 million, RMB372.8 million and RMB287.4 million, primarily due to the decrease in market price of our products as a result of the destocking by downstream participants following the inventory buildup in 2021 and 2022.
Financial Information · p. 283
However, the increase in inventory balance as of December 31, 2024 was not commensurate with the increase in revenue in 2024, primarily due to the buildup of inventories to a certain extent as affected by the industry cycle.
Financial Information · p. 283
As of October 31, 2025, 84.7% of our total inventories as of June 30, 2025, or RMB2,033.9 million, were utilized or sold.
Our inventories remained stable at RMB45.6 million as of December 31, 2023 and RMB42.7 million as of December 31, 2024, and increased to RMB49.7 million as of June 30, 2025. In 2023, 2024 and the six months ended June 30, 2025, our inventory turnover days were 658 days, 498 days and 789 days, respectively.
Financial Information · p. 445
We consider that there is no material recoverability issue in respect of our inventories, including those aged over one year.
Financial Information · p. 445
As of October 31, 2025, no material impairment indicators had been identified, and we have not recorded any significant inventory write-downs.
Our inventories and contract costs increased by 109.0% from RMB32.5 million as of December 31, 2024 to RMB67.9 million as of June 30, 2025, primarily due to an increase in contract fulfillment cost of RMB37.1 million primarily due to the completion and acceptance of certain ongoing on-premise services.
Financial Information · p. 273
Our average inventory and contract costs turnover days increased from 124 days in 2022 to 162 days in 2023, primarily due to the complexity and diversification of our services, and decreased to 82 days in 2024, primarily due to the enhanced delivery efficiency of our services and the increased volume of cloud-based deployment with relatively quick service delivery.
Financial Information · p. 273
Our Directors are of the view that impairment for inventories and contract costs was assessed appropriately and that sufficient provision was made based on the impairment assessment mentioned above.
Our inventories slightly decreased from RMB77.2 million as of December 31, 2023 to RMB73.7 million as of December 31, 2024, and further increased to RMB79.5 million as of June 30, 2025.
Financial Information · p. 472
As of the Latest Practicable Date, RMB53.5 million, or 67.3%, of our inventories as of June 30, 2025, had been utilized or sold.
Financial Information · p. 472
We do not foresee any significant recoverability issue with our inventories, and do not believe further provision for impairment is necessary, considering that: (i) most of our inventories can be purchased in advance for more cost effective procurement, (ii) raw materials may also be re-purposed for R&D pipeline and prototype generation.
Our inventories increased to RMB494.9 million as of June 30, 2025, primarily due to an increase of RMB274.9 million in raw materials, as a result of the stockpiling of raw materials to support product sales in the second half of 2025, partially offset by a decrease of RMB64.0 million in finished goods, as a result of sales of inventory products and a decrease of RMB58.6 million in work in progress, as a result of consumption of work in progress that were transferred into finished goods upon completion and subsequently delivered to customers.
Financial Information · p. 314
Furthermore, our inventory turnover days increased to 465.8 days for the six months ended June 30, 2025, primarily due to our raw material stockpiling to ensure stable product supply, in anticipation of a significant rise in customer demand in the second half of 2025.
Financial Information · p. 315
As of October 31, 2025, RMB106.9 million, or approximately 21.6% of our inventories as of June 30, 2025 had been subsequently consumed or used.
Our inventories increased from RMB152.9 million as of December 31, 2024 to RMB599.8 million as of June 30, 2025, primarily due to we increased our inventories in preparation in anticipation of increased sales in the second half of 2025, which was generally aligned with our business growth.
Financial Information · p. 388
Our inventory turnover days decreased from 2,992 days in the six months ended June 30, 2024 to 1,725 days in the six months ended June 30, 2025, primarily because we recognized significantly increased cost of sales in the six months ended June 30, 2025 due to our increased sales volume, which was in line with our business expansion.
Financial Information · p. 389
As of October 31, 2025, RMB412.8 million, or 68.4% of our inventories outstanding as of June 30, 2025 had been sold or utilized.
Our inventories increased by 74.0% from RMB141.2 million as of December 31, 2024 to RMB245.7 million as of June 30, 2025, primarily due to stockpiling raw materials and finished goods to meet the anticipated growing purchasing demand as a result of our projected sales growth.
Financial Information · p. 334
As of October 31, 2025, RMB143.1 million, or 58.2% of inventories as of June 30, 2025, had been used, consumed or sold.
Financial Information · p. 334
Our inventory turnover days increased from 173 days in 2024 to 189 days in the six months ended June 30, 2025, primarily due to stockpiling raw materials and finished goods to meet the anticipated growing purchasing demand due to our projected sales growth.
As of December 31, 2022, 2023 and 2024 and June 30, 2025, our inventory amounted to RMB83.6 million, RMB82.4 million, RMB163.6 million, and RMB202.7 million respectively, representing 28.4%, 27.5%, 44.5% and 35.8% of our total current assets as of the respective dates.
Financial Information · p. 426
Our inventory turnover days increased from 82.0 days for the year ended December 31, 2024 to 90.5 days for the six months ended June 30, 2025, primarily due to our strategic decision to increase our inventory level in preparation for major sales events including Amazon Prime Day in July 2025.
Financial Information · p. 427
The Directors believe that there is no material recoverability issue for inventories for the years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2025.
As of June 30, 2025, our inventories amounted to RMB134.4 million, reflecting an increase of 39.2% from RMB96.6 million as of December 31, 2024, reflecting the increased procurement of materials in line with the increased construction activities.
Financial Information · p. 419
Inventories are measured at cost, and provisions are made for impairment based on expected net realizable value.
Financial Information · p. 419
Overall, our inventory aged over one year primarily comprise special-specification raw materials that we retain for utilization in future projects.
Inventories aged over three years increased from RMB2.7 million as of December 31, 2022 to RMB7.4 million as of December 31, 2023 and from RMB3.3 million as of December 31, 2024 to RMB4.3 million as of June 30, 2025, primarily due to certain projects experiencing delayed acceptance from customers due to their internal approval processes, project complexity and/or their financial constraints.
Financial Information · p. 320
Our provision for impairment of inventories amounted to RMB1.4 million, RMB2.5 million, RMB2.9 million and RMB3.1 million as of December 31, 2022, 2023 and 2024 and as of June 30, 2025, respectively.
Financial Information · p. 320
We implement a project-based procurement strategy where hardware and software are purchased based on specific project requirements and contractual milestones.
Our average inventory turnover days increased to approximately 106.3 days in 2024 as we procured additional ores from an independent third party ore supplier in the fourth quarter of 2024, which led to a higher balance of inventories at the end of 2024, while our cost of sales decreased in the same year.
Financial Information · p. 322
Our management confirmed that, after performing the abovementioned analysis, there is no recoverability issue regarding inventories and no provision for impairment of inventories was required during the Track Record Period.
Financial Information · p. 322
As at 31 October 2025, RMB7.8 million (unaudited) or 100%, of finished goods in our inventories as at 31 July 2025 had been utilised.
Our inventories increased from RMB96.5 million as of December 31, 2024 to RMB170.5 million as of June 30, 2025, primarily due to an increase in contract costs in progress resulting from an increase in the number of ongoing orders and larger order sizes for autonomous mining products and solutions.
Financial Information · p. 425
As of June 30, 2025, our inventories aged over three years primarily consist of raw materials for autonomous logistics truck solution, with a balance of approximately RMB9.3 million, including vehicle computers and chips.
Financial Information · p. 427
However, in accordance with the principle of prudence, we conducted a comprehensive impairment assessment and recognized sufficient impairment provision for the inventories aged over three years with total impairment charge of RMB6.6 million to ensure the financial statements reflect our economic value accurately.
Our inventories increased by 39.3% from RMB896.9 million as of December 31, 2024 to RMB1.2 billion as of June 30, 2025, primarily due to the increase in product inventories, as a result of our strategic initiative to increase the amount of orders shipped from our own warehouses for certain product categories in order to enhance the experience for certain customers.
Financial Information · p. 334
Our turnover days of inventories attributable to continuing operations were 17.9 days in 2022, 13.8 days in 2023, 14.8 days in 2024, and 23.1 days in the six months ended June 30, 2025.
Financial Information · p. 334
As of October 31, 2025, RMB1.1 billion, or 90.8%, of our inventory balance as of June 30, 2025 had been sold or utilized.
Our inventories increased from RMB27.9 million as of December 31, 2024 to RMB44.3 million as of June 30, 2025, primarily due to (i) an increase in work in progress by 43.3% from RMB24.7 million as of December 31, 2024 to RMB35.4 million as of June 30, 2025, mainly arising from the growth in knowledge graph business and in line with the seasonal delivery cycle typical in our industry customers generally settle payments in the second half of a year; and (ii) an increase in purchased goods from RMB3.2 million as of December 31, 2024 to RMB9.0 million as of June 30, 2025, primarily due to raw materials purchased to support the production and delivery of our digital classrooms over the period.
Financial Information · p. 274
Our inventory turnover days increased from 24.3 days in 2024 to 45.1 days in the six months ended June 30, 2025 in line with the seasonal delivery cycle typical in our industry.
Financial Information · p. 276
As of September 30, 2025, RMB26.7 million, or 60.3% of inventories as of June 30, 2025, had been used, consumed or sold.
In 2022, 2023, 2024 and the six months ended June 30, 2024 and 2025, we recorded impairment loss of inventories of RMB25.1 million, RMB61.8 million, RMB91.6 million, RMB36.0 million and RMB35.9 million, respectively.
Summary · p. 10
The impairment losses related to long-aged inventory, particularly in 2023, was primarily because, prior the first half of 2022, amid strong market conditions and in anticipation of continued customer demand, we proactively increased our procurement and production levels.
Summary · p. 10
Our inventory turnover days increased from 172 days in 2022 to 294 days in 2023, primarily due to a period of inventory adjustment among our end customers, which resulted in decreased demand for our products and consequently slower inventory turnover.