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 and other contract costs further increased from RMB81.8 million as of December 31, 2025 to RMB107.9 million as of June 30, 2026, primarily due to (i) increases in raw materials and semi-finished products and work in progress to support growing orders for batteries used in wearable devices, coupled with higher purchase prices of key raw materials, and (ii) the recognition of contract fulfilment costs.
Financial Information · p. 256
Our inventory and other contract cost turnover days increased from 68.6 days in 2025 to 75.7 days in the six months ended June 30, 2026, primarily due to increased inventory stocking in anticipation of customer demand and planned production.
Financial Information · p. 257
As of July 31, 2026, RMB38.3 million or 35.4% of our inventories and other contract costs as of June 30, 2026 had been subsequently 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.
These increases were mainly driven by our strategic inventory buildup to support anticipated sales growth of products, in line with our revenue growth.
Financial Information · p. 236
We recorded higher impairment of inventories in 2024, primarily related to our medical devices as they were still in the phase of sales ramp-up.
Financial Information · p. 236
As of July 31, 2026, RMB110.7 million (before impairment), or 18.7%, of our gross inventories as of June 30, 2026 had been utilized or sold.
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 from RMB621.0 million as of December 31, 2023 to RMB787.6 million as of December 31, 2024 and further increased to RMB1,005.0 million as of December 31, 2025, primarily due to an increase in finished goods to meet increased customers’ order demands.
Financial Information · p. 244
Our inventory turnover days remained relatively stable at 68.8 days, 66.5 days, 67.3 days and 67.9 days in 2023, 2024, 2025 and the six months ended June 30, 2026.
Financial Information · p. 244
As of July 31, 2026, RMB326.3 million, or approximately 32.9% of our inventories as of June 30, 2026 had been subsequently sold or utilized.
Our inventory increased from RMB4.1 million as of December 31, 2025 to RMB4.7 million as of June 30, 2026, primarily due to our procurement of raw materials in preparation for the subsequent commercialization of our PL-5.
Financial Information · p. 233
Therefore, we believe there is no impairment issue for our inventories as of June 30, 2026.
The carrying value of our inventories before provision for impairment losses on inventories increased from RMB527.2 million as of December 31, 2025 to RMB877.5 million as of June 30, 2026, primarily due to (i) our storage of more copper foil products in line with our increased sales, and (ii) the increase in copper prices.
Financial Information · p. 231
Our inventory turnover days remained stable at 48.1 days in both 2023 and 2024, respectively, while decreased to 43.5 days in 2025 and further to 40.5 days in the six months ended June 30, 2026, reflecting strong market demand for our electrolytic copper foil products during the Track Record Period.
Financial Information · p. 231
As of July 31, 2026, approximately RMB730.7 million, or 83.3% of our inventories as of June 30, 2026, had been subsequently consumed or sold.
The increase in the balance of our inventories over time generally aligns with our business growth, and the significant increase from December 31, 2025 to April 30, 2026 was mainly driven by the sharp increase in unit cost of key raw materials during this period.
Financial Information · p. 260
Our inventories turnover days increased significantly to 317.2 in the four months ended April 30, 2026 mainly due to our strategic stockpiling in light of rapid increases in memory product prices, robust market demand and supply chain tensions attributable to the surge in AI infrastructure investments.
Financial Information · p. 261
As of June 30, 2026, RMB3,790.7 million, or 17.8% of our inventories outstanding as of April 30, 2026, had been subsequently sold.
Our inventories increased by 15.1% from RMB1,311.2 million as of December 31, 2023 to RMB1,509.1 million as of December 31, 2024, further increased by 37.7% to RMB2,078.7 million as of December 31, 2025, and further increased by 20.7% to RMB2,510.0 million as of June 30, 2026, primarily as a result of our increased sales which required increased inventory stocking, as well as our increased self-production and sales of power generator sets in 1H2026.
Financial Information · p. 249
Inventories were net of a write-down of RMB17.0 million, RMB16.5 million, RMB37.3 million and RMB37.5 million in our consolidated statement of financial position as of December 31, 2023, 2024 and 2025 and June 30, 2026, respectively.
Financial Information · p. 248
Our average inventory turnover days decreased from 185 days in FY2023 to 168 days in FY2024, further decreased to 142 days in FY2025, and further decreased to 127 days in 1H2026, primarily due to the expanding market demand and higher order volumes, as well as our ongoing enhancements to inventory management based on order forecasts and production plans.
Bases on the above considerations, as at 31 December 2023, 2024 and 2025 and 31 March 2026, the write down of inventory was RMB4.9 million, RMB4.3 million, RMB4.3 million and RMB4.6 million, respectively.
Financial Information · p. 256
As at 30 June 2026, RMB28.3 million or approximately 66.0% of our inventories as at 31 March 2026 had been subsequently consumed or sold.
Financial Information · p. 256
Despite the relatively low subsequent utilization/sales of the inventories, in determining the write down provision of the inventories, we have considered (i) no significant recoverability issue for inventories given that the raw materials generally have no expiration date; and (ii) the NRV tests performed at the end of each Track Record Period in accordance with IAS 2.
Our inventories further increased by 26.3% from RMB11,791.9 million as of December 31, 2025 to RMB14,897.9 million as of May 31, 2026, primarily attributable to an increase in raw materials, finished goods and work in progress in anticipation of the peak selling season typically occurring in the second quarter of the year, as well as an increased procurement demand from our overseas production bases, including the Texas Base, in line with the expansion of our overseas operations.
Financial Information · p. 244
Our inventory turnover days remained relatively stable at 34.6 days in 2023 and 33.7 days in 2024, and increased to 46.1 days in 2025.
Financial Information · p. 245
As of June 30, 2026, approximately RMB12,391.8 million or 82.9% of our inventories as of May 31, 2026 had been consumed.
Our inventories increased significantly from RMB24.1 million as of December 31, 2025 to RMB55.1 million as of June 30, 2026, primarily attributable to an increase in raw materials, as we strategically built up inventory during periods of relatively favorable prices to mitigate the impact of anticipated raw material price increases; this increase was partially offset by a decrease in goods in transit, as certain customers accelerated product acceptance and settlement processes to secure available supply and lock in lower prices amid expectations of rising hardware component costs.
Financial Information · p. 246
Specifically, we adopt a series of inventory management measures that contributed to the decrease in our inventory level during the Track Record Period, including (i) enhanced collection supervision through stricter performance assessments for distributors, with caps on the volume and value of overdue orders and the potential reduction or termination of cooperation upon breach of such thresholds; (ii) inventory policy to maintain lower stock levels, primarily in response to frequent changes in hardware specifications resulting from ongoing technology architecture iterations; and (iii) rolling demand forecasting, under which we maintain frequent communication with suppliers on delivery schedules and pricing trends and coordinate internally between sales and operations to improve inventory turnover efficiency.
Financial Information · p. 247
As of July 31, 2026, approximately RMB3.7 million, or 6.6% of our inventories as of June 30, 2026 had been utilized or sold.
Our inventories decreased from US$1.4 million as of December 31, 2024 to US$1.2 million as of December 31, 2025, and further decreased to US$0.8 million as of June 30, 2026, primarily because we maintained excess inventories during COVID-19 and gradually consumed the excess inventories.
Financial Information · p. 232
While this led to most of our inventory being over two years old, this was a one-off event and does not reflect our long-term procurement and inventory management strategy.
Financial Information · p. 232
Our inventory turnover days increased from 334 days in 2024 to 623 days in 2025.
Our inventories further increased by 48.8% to RMB1,807.3 million as of June 30, 2026, primarily due to an increase in raw materials and finished goods as we increased procurement and production activities to support the substantial growth in sales and meet expected customer demand, as well as the increase in raw material prices during the period, which further increased the carrying amount of our inventories.
Financial Information · p. 230
As of June 30, 2026, our provision for inventory allowances amounted to RMB12.8 million, remaining broadly stable in absolute terms as compared with December 31, 2025 and decreasing as a proportion of our gross inventories from 1.1% to 0.7%, which primarily reflected the continued stabilisation and recovery in the market prices of our principal products.
Financial Information · p. 231
As of July 31, 2026, RMB952.8 million, or 52.4% of inventories as of June 30, 2026, had been used, consumed or sold subsequent to June 30, 2026.
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.