Our inventories increased by 69.3% from RMB2,261.3 million as of December 31, 2023 to RMB3,827.3 million as of December 31, 2024, primarily due to the increased orders for camera modules.
Financial Information · p. 235
Our inventories increased by 21.0% from RMB3,318.8 million as of December 31, 2025 to RMB4,015.5 million as of May 31, 2026, primarily due to increased orders from customers.
Financial Information · p. 235
As of June 30, 2026, RMB2,670.6 million, or approximately 63.3% of our inventories as of May 31, 2026 had been utilized or sold.
The impairment allowance significantly increased from RMB0.5 million as of December 31, 2023 to RMB6.3 million as of December 31, 2024, primarily because we decreased the sales price of our products to franchisees at the end of 2024 to a level lower than our costs of sales in order to support our franchisees.
Financial Information · p. 216
Our inventory turnover days decreased from 15.5 days in 2023 to 12.1 days in 2024, primarily because (i) the prices of pork increased in 2024, leading to a significant increase in cost of sales that outpaced the growth of average inventory balances; and (ii) we recognized an inventory write-down of RMB6.2 million in 2024 as discussed above.
Our inventories increased to RMB123.3 million as of December 31, 2025, primarily due to (i) an increase in finished goods, primarily comprising NBS, ESC and NBC products, driven by customer order demand and production planning; and (ii) an increase in raw materials, driven by higher inventory levels maintained to support production needs associated with business growth.
Financial Information · p. 239
Our inventories turnover days decreased from 128 days in 2023 to 85 days in 2024 and subsequently decreased to 69 days in 2025, primarily due to more efficient procurement planning, optimized inventory control processes and increased market demand for our products, which accelerated sales and shortened the inventory turnover cycle and generally in line with our business growth.
Financial Information · p. 239
As of May 31, 2026, RMB85.3 million, or 61.3% of our gross inventories as of March 31, 2026, had been used, consumed or sold.
Our inventories increased by 36.5% from RMB916.8 million as of December 31, 2024 to RMB1,251.3 million as of December 31, 2025, primarily due to (i) an increase in contract fulfillment costs, arising from higher number of outstanding contracts, in line with the expansion of our business and (ii) an increase in raw materials, as a result of our production expansion to meet growing customer demand.
Financial Information · p. 249
Our inventory turnover days decreased from 90 days in 2023 to 81 days in 2024, and further decreased to 75 days in 2025, primarily because (i) several data intelligence solution projects were finally accepted in 2024 and 2025 and (ii) we continued to improve our inventory management, resulting in higher inventory turnover efficiency.
Financial Information · p. 250
As of May 31, 2026, RMB564.5 million, or 43.5% of inventories as of March 31, 2026, had been used, consumed or sold subsequent to March 31, 2026.
Our inventories increased by 17.1% from RMB2,245.4 million as of December 31, 2023, to RMB2,629.3 million as of December 31, 2024, primarily due to an inventory increase in finished goods resulting from our production volume increase during the business growth in 2024.
Financial Information · p. 222
Our inventory turnover days decreased from 101 days in 2023 to 82 days in 2024 and to 76 days in 2025, and slightly increased to 80 days as of March 31, 2026, primarily because we have implemented and carried out inventory optimization management measures through the digitalization and standardization of our management processes, achieved by integrating ERP, MES and WMS systems.
Financial Information · p. 223
For inventories aging more than 1 year, approximately 73% are toolings, which are designed for customers’ products purpose and covered under sales contracts.
Our inventories decreased from RMB297.2 million as of December 31, 2023 to RMB220.6 million as of December 31, 2024, primarily due to a decrease of RMB58.6 million in work in progress as of December 31, 2024 as a result of our optimization of project management and goods-in-transit relating to equipment to be delivered in an amount of RMB32.8 million as of December 31, 2023.
Financial Information · p. 208
During the Track Record Period, our inventory impairment primarily arose where actual project costs exceeded initial estimates, mainly due to higher-than-expected manpower input resulting from project complexity or lower-than-planned execution efficiency.
Financial Information · p. 208
We manage our inventories by monitoring projects on a monthly basis and analyze variances for projects falling behind schedule, with timely adjustments to team structure and resource allocation where necessary.
It further surged by 107.9% to RMB2,158.5 million as of December 31, 2025, primarily attributable to (i) the continued expansion of our sales scale, which necessitated higher inventory levels to support the increased transaction volumes and fulfilment requirements, and (ii) longer customs inspection and clearance cycles for certain imported beef products following the implementation of new inspection and quarantine policies in 2025, which resulted in such products remaining in inventory for a longer period before release.
Financial Information · p. 233
Our average inventory turnover days increased from 58 days in 2023 to 82 days in 2024, and further to 101 days in 2025.
Financial Information · p. 234
Based on the foregoing, Frost & Sullivan is of the view that our inventory turnover days recorded during the Track Record Period are consistent with the operational characteristics of our business model.
Our inventories further increased to RMB282.4 million as of December 31, 2025 and to RMB303.4 million as of March 31, 2026.
Financial Information · p. 223
While we proactively raised our inventory level to meet the rising market demand during the Track Record Period, we provided for impairment when inventory reached predetermined age thresholds and when net realizable value, determined by reference to order prices or prevailing market prices, fell below cost, resulting in increased write-down of inventories.
Financial Information · p. 223
Our inventory turnover days decreased from 252 days in 2023 to 226 days in 2024, reflecting the increased market demand.
Our inventories increased by 80.4% from RMB754.0 million as of December 31, 2023 to RMB1,360.5 million as of December 31, 2024, then increased by 31.2% to RMB1,785.4 million as of December 31, 2025, and further increased by 72.5% to RMB3,079.4 million as of April 30, 2026, primarily attributable to the increase in raw materials and finished goods, which generally align with our business growth.
Financial Information · p. 210
We have not identified any impairment issue for inventories given that (i) our inventories are generally backed by existing or anticipated orders from our customers and the market demand for our products is generally growing, (ii) our inventories primarily comprised our strategic stock of raw materials and finished goods with clear commercial value, (iii) our inventories were generally aged within three months during the Track Record Period, and (iv) we have implemented stringent inventory management measures.
Financial Information · p. 210
Our inventories turnover days were 68 days, 59 days, 79 days and 80 days in 2023, 2024, 2025 and the four months ended April 30, 2026, respectively.
During the Track Record Period, we recorded a substantial inventory write-down, primarily due to the rapid product iteration characteristic of the robotics industry.
Financial Information · p. 222
For example, we made a 100% provision for inventories older than two years.
Financial Information · p. 222
We believe the relatively long inventory turnover days reflect our project-based business model rather than any issues with inventory recoverability.
During the Track Record Period, a portion of our inventories had an aging of over one year, amounting to RMB13.9 million, RMB11.8 million, RMB9.2 million and RMB9.6 million
Financial Information · p. 223
Such reusable thermometers are generally not held primarily for direct sale, do not usually have a shelf life and are repeatedly deployed in our day-to-day service operations.
Financial Information · p. 223
Taking into account the foregoing, together with our regular stocktakes and inventory review procedures, our Directors are of the view that there is no material recoverability issue for our inventories and no inventory provision was required as of December 31, 2023, 2024, 2025 and April 30, 2026.
As customer demand and expected future deliveries continued to grow during the Track Record Period, we increased our inventory of key raw materials, work in progress and semi-finished goods to support our future production and delivery requirements, resulting in the growth of our inventory exceeding the growth of our revenue during the same period.
Financial Information · p. 257
Our inventory turnover days decreased from 218 days in 2023 to 137 days in 2024, primarily due to the increased revenue and sales volume, leading to improved inventory turnover efficiency.
Financial Information · p. 258
As of May 31, 2026, RMB7,242.7 million, or 45.4% of inventories outstanding as of March 31, 2026 had been subsequently utilized or sold.
Our inventories further increased by 53.3% from RMB110.8 million as of December 31, 2024 to RMB169.9 million as of December 31, 2025, primarily driven by a significant increase in raw materials to support business expansion.
Financial Information · p. 219
Our inventory turnover days remained generally stable at 46.8 days in 2023, 36.5 days in 2025 and 41.5 days in the three months ended March 31, 2026.
Financial Information · p. 220
As of May 31, 2026, RMB103.3 million, or 69.6%, of our inventories as of March 31, 2026 had been subsequently sold or utilized.
Our inventories increased by 146.3% from RMB191.0 million as of December 31, 2023 to RMB470.5 million as of December 31, 2024, and then increased by 19.5% to RMB562.2 million as of December 31, 2025, as we built up inventory to meet anticipated sales order demand, especially raw materials, which is in line with our business expansion.
Financial Information · p. 221
Our inventory turnover days were 317 days in 2023, which is higher than that in 2024, primarily because we built up inventory in advance during 2023 to support ramped-up production in 2024, which extended the turnover days.
Financial Information · p. 222
For goods dispatched as of May 31, 2026, as of June 30, 2026, subsequently accepted goods amounted to RMB90.0 million, representing an acceptance rate of 72.8% of the total goods dispatched of RMB123.6 million.
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 inventory turnover days increased from 81 days for 2024 to 88 days in 2025, primarily due to the decrease in cost of revenue as a result of lower sales in 2025.
Financial Information · p. 208
As of May 31, 2026, approximately RMB14.4 million, or 11.0%, of our inventories as of April 30, 2026, had been subsequently used or sold.
Financial Information · p. 209
Based on such assessment and taking into account, among others, subsequent utilization and sales, expected project deployment schedules and operational needs, our Directors are of the view that no material impairment indicators were identified in respect of our inventories during the Track Record Period, and the provisions made for inventory write-down were sufficient and adequate.
Average inventory turnover days increased from 83 days for the year ended March 31, 2024 to 98 days for the year ended March 31, 2025.
Financial Information · p. 229
As of May 31, 2026, HK$16.4 million, or 32.7% of our inventories as of March 31, 2026 had been sold or used.
Financial Information · p. 229
As described in note 15 to our consolidated financial statements included in the Accountants’ Report set forth in Appendix I to this document, there has been no material write down for inventories historically.
Our inventories decreased from RMB551.6 million as of December 31, 2023 to RMB410.9 million as of December 31, 2024 and further to RMB379.3 million as of December 31, 2025, primarily because we completed and delivered certain implementation and development services to customers, and the relevant work in progress was reclassified into cost of sales.
Financial Information · p. 236
Our inventory aging three years and above mainly represented contract fulfillment costs pending customer acceptance as a result of project suspension or changes in customer requirements.
Financial Information · p. 236
Based on the foregoing, our Directors are of the view that the related contract fulfilment costs are recoverable, and that there is no significant impairment risk associated with these contract fulfilment costs.
Our inventories increased by 40.0% from RMB134.4 million as of December 31, 2024 to RMB188.2 million as of December 31, 2025, primarily due to the increase in outsourced processing materials as a result of increased outsourced orders in anticipation of sales growth, and the increase in work in progress as a result of expanding production volume in our Zhuhai factory.
Financial Information · p. 212
Our inventory turnover days decreased from 151 days in 2023 to 108 days in 2024, further to 93 days in 2025, primarily due to our increased sales and enhanced inventory management. Our inventory turnover days increased to 102 days in the five months ended May 31, 2026, primarily due to an increase in inventories.
Financial Information · p. 213
We believe our inventory turnover remained at a reasonable level, with approximately 78.4% of inventories as of 31 December 2025 utilized or sold within the first five months of 2026.
Our inventories increased from RMB103.5 million as of December 31, 2024 to RMB166.4 million as of December 31, 2025, primarily due to (i) an increase in finished goods from RMB8.3 million as of December 31, 2024 to RMB53.6 million as of December 31, 2025, and (ii) an increase in raw materials from RMB74.3 million as of December 31, 2024 to RMB99.8 million as of December 31, 2025, reflecting our expansion in raw material procurement and production in line with increase in sales volume and our business growth, partially offset by a decrease in work-in-progress from RMB20.9 million as of December 31, 2024 to RMB12.9 million as of December 31, 2025.
Financial Information · p. 188
In the three months ended March 31, 2026, inventory turnover days increased to 84.1 days, primarily due to our advance stockpiling during the period to hedge against the risk of raw material price fluctuations.
Financial Information · p. 189
As of May 31, 2026, 56.3% of our total inventories as of March 31, 2026, or RMB91.3 million, were utilized or sold.