Our inventories increased significantly from RMB294.0 million as of December 31, 2025 to RMB424.3 million as of March 31, 2026, primarily attributable to (i) a RMB123.0 million increase in raw materials and work in progress, mainly driven by the increased procurement of SLC NAND wafers from our upstream supplier to secure supply ahead of anticipated further capacity reductions; and (ii) a RMB6.2 million increase in finished goods, primarily relating to the replenishment of NAND and NAND MCP finished products to meet market demand.
Financial Information · p. 236
Our inventory turnover days increased from 279 days in 2025 to 330 days in the three months ended March 31, 2026, primarily because we strategically accelerated our procurement of raw materials and wafers during the period to secure production capacity, resulting in a higher average inventory balance relative to the cost of sales for the period.
Our inventories increased from RMB105.1 million as of December 31, 2024 to RMB129.6 million as of December 31, 2025, primarily because we proactively undertook strategic stockpiling, increasing our inventory level of raw materials and finished goods in anticipation of increased market demand during the sales ramp-up phase to support the commercialization and promotion of new products, thereby ensuring stable supply and operational continuity.
Financial Information · p. 194
As of March 31, 2026, the inventory turnover days for the three months increased to 105 days, primarily due to proactive stockpiling ahead of the peak summer sales season and the build-up of strategic inventory reserves.
Financial Information · p. 195
As of May 31, 2026, approximately RMB98.4 million, or 70.0% of our inventories as of March 31, 2026, had been utilized or sold. Therefore, we do not expect any material recoverability issue with respect to our inventories.
Our inventories increased from RMB190.9 million as of December 31, 2024 to RMB280.7 million as of December 31, 2025, primarily due to our increased production volume in response to our customers’ demand.
Financial Information · p. 158
Our inventory turnover days increased from 75 days in 2024 to 81 days in 2025 and further to 86 days in the three months ended March 31, 2026, primarily due to more inventories we stocked in anticipation of the scaling up of our sales in AI chip inductors and alloy soft magnetic powder cores.
Financial Information · p. 158
As of May 31, 2026, RMB262.2 million, or 79.6% of our inventories as of March 31, 2026 had been utilized or sold.
Our inventories increased from RMB2,314.8 million as of December 31, 2024 to RMB4,587.3 million as of December 31, 2025 and further increased to RMB6,496.8 million as of March 31, 2026, reflecting our strategic stocking of key raw materials mainly including memory chips, which experienced price increases.
Financial Information · p. 197
Our inventory turnover days increased from 50 days in 2024 to 67 days in 2025 and further increased to 104 days in the three months ended March 31, 2026, primarily due to our strategic stocking for the increase in raw materials prices.
Financial Information · p. 197
As of May 31, 2026, 67.9% of our total inventories as of March 31, 2026, or RMB4,551.3 million, were utilized or sold.
Our inventories increased from RMB499.1 million as of December 31, 2023 to RMB562.8 million as of December 31, 2024, and further increased to RMB653.7 million as of December 31, 2025, primarily due to the expansion of our production and growth in our sales volume, which required higher levels of raw materials and finished goods.
Financial Information · p. 230
Our inventory increased to 184 days in 2025, primarily due to an increase in inventory balance as we stocked up on raw materials to support our business expansion and the commencement of production of new product lines.
Financial Information · p. 231
As of May 31, 2026, RMB410.7 million, or 69.0%, of our inventories as of April 30, 2026 had been subsequently sold or utilized.
Our inventories further significantly increased to RMB339.4 million as of April 30, 2026, primarily due to business expansion and an increase in inventory levels as we ramped up production and built up inventories ahead of expected higher shipment demand in the following months, resulting in a relatively higher inventory balance as of April 30, 2026.
Financial Information · p. 252
Our inventory turnover days were 47.0 days, 44.8 days, 50.9 days and 61.3 days in 2023, 2024, 2025 and the four months ended April 30, 2026.
Financial Information · p. 253
As of May 31, 2026, RMB172.4 million, or 50.8%, of our inventories as of April 30, 2026 had been subsequently settled or sold.
Our inventories increased by 81.6% from RMB3,949.8 million as of December 31, 2024 to RMB7,172.3 million as of December 31, 2025, primarily due to (i) an increase in raw materials as we maintained a higher level of raw materials to meet the market demand for DRAM and (ii) an increase in finished goods.
Financial Information · p. 247
Our inventory turnover days increased from 231 days in 2025 to 356 days in the four months ended April 30, 2026, primarily because we proactively accumulated inventories to meet the anticipated demand from our major customers.
Financial Information · p. 248
We have assessed the condition and realizable value of our inventories and have not identified material impairment issues.
Our inventories increased by 59.2% from RMB323.7 million as of December 31, 2024 to RMB515.3 million as of December 31, 2025, primarily due to (i) an increase in raw materials and work in progress in line with our increased production scale and sales volume, and (ii) an increase in strategic stockpiling of raw materials in response to tight market supply conditions.
Financial Information · p. 228
Inventory turnover days increased from 51 days in 2024 to 61 days in 2025, and further increased to 73 days in the three months ended March 31, 2026, primarily due to increased raw material and work-in-progress strategic stockpiling in anticipation of future sales growth.
Financial Information · p. 229
As of May 31, 2026, RMB456.9 million, or 65.2% of our inventories as of March 31, 2026 had been utilized or sold.
Our inventories subsequently increased by 13.7% to RMB510.9 million as of December 31, 2025, primarily because we recorded more inventory of raw materials and finished goods at the year end amid the rapid growth of our sales of internal-rotor PM motors.
Financial Information · p. 221
The moderate rise in our inventory turnover days during the Track Record Period was primarily due to our deliberate build-up of buffer inventory to ensure high order fulfillment rates as we scaled.
Financial Information · p. 221
As of April 30, 2026, RMB216.0 million, or 42.3%, of our inventory as of December 31, 2025, had been subsequently sold or utilized.
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 increased by 24.4% from RMB1,753.6 million as of December 31, 2023 to RMB2,180.7 million as of December 31, 2024, and further increased to RMB2,391.7 million as of December 31, 2025, primarily due to the continued growth of our revenue.
Financial Information · p. 218
As of December 31, 2025, we recognized a provision for inventory impairment of RMB69.8 million, representing 2.8% of our inventory.
Financial Information · p. 219
Such storage conditions do not affect product quality, and performance testing is re-conducted prior to shipment to ensure product quality upon delivery.
We believe the risk associated with our inventory utilization is relatively low, given that (i) most of our inventories are aged within one year; and (ii) our inventories, primarily consisting of production-grade silicon wafers, chemicals, gases, sputtering targets, photoresists and components, as well as work in progress and finished goods, which are, in nature, less likely to deteriorate in the short run and can be gradually utilized or sold through ongoing contracts.
Financial Information · p. 203
As of April 30, 2026, RMB1,387.5 million, or 76.2%, of inventories as of December 31, 2025 had been used, consumed or sold.
Our inventory increased from RMB73.1 million as of December 31, 2023 to RMB114.8 million as of December 31, 2024, and further increased to RMB161.3 million as of December 31, 2025, as we strategically increased our inventory levels to meet the rising market demand and growing order volume from our major customers.
Financial Information · p. 161
(ii) as of December 31, 2025, RMB106.0 million, or 92.3% of inventories as of December 31, 2024, had been used, consumed or sold
Financial Information · p. 161
Our inventory turnover days increased from 160.8 days in 2024 to 188.4 days in 2025, primarily because we proactively increased our inventory level in anticipation of increased market demand and future sales growth.
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.
From December 31, 2024 to December 31, 2025, our inventories increased significantly to RMB1,668.2 million, primarily due to (i) an increase of RMB388.3 million in finished goods, as a result of stock-up ahead of delivery cycle in 2025, (ii) an increase of RMB78.9 million in raw materials, in order to meet growing demand for our products, and (iii) an increase of RMB42.7 million in work-in-progress, from RMB198.2 million to RMB240.9 million, primarily driven by an increase in demand for our products.
Financial Information · p. 174
Our inventory turnover days increased from 221 days in 2024 to 237 days in 2025, primarily due to proactive inventory build-up undertaken in response to changes in tariff policies, resulting in higher levels of raw materials, work-in-progress and finished goods during the period.
Financial Information · p. 175
As of April 30, 2026, RMB679.1 million, or 40.7%, of our inventories as of December 31, 2025 had been sold or utilized.
Our inventories increased from RMB21.6 million as of December 31, 2023 to RMB159.7 million as of December 31, 2024, primarily reflecting an increase in construction materials and consumables for energy management projects, primarily because we entered into a number of new contracts in the fourth quarter of 2024 and made respective procurement and the customers accepted the equipment in 2025, while the procurement and acceptance of contract in 2023 were conducted in 2023, partially offset by a decrease in the sales of temperature control products and ICT equipment, mainly attributable to our overall strategy of maintaining a cautious approach to this business.
Financial Information · p. 241
Our average inventory turnover days increased from 14 days in 2023 to 39 days in 2024, primarily because we entered into a number of new contracts in the fourth quarter of 2024 and made respective procurement, and the customers accepted the equipment in 2025, while the procurement and acceptance of contracts in 2023 were both conducted in 2023.
Financial Information · p. 241
As of April 30, 2026, approximately RMB14.2 million, or 53.1%, of our inventories as of December 31, 2025 had been sold or utilized.
Our inventories increased by 33.4% from RMB31.5 billion as of December 31, 2024 to RMB42.0 billion as of December 31, 2025, primarily driven by business growth, which led to higher levels of raw materials, finished goods and work in progress, including increased procurement of raw materials to meet customer orders.
Financial Information · p. 235
Our inventory turnover days decreased from 59 days in 2023 to 46 days in 2024, mainly due to our improved inventory management and adjustment of customers’ stocking pattern.
Financial Information · p. 236
As of April 30, 2026, RMB37.0 billion, or approximately 85.3% of our inventories as of December 31, 2025 had been utilized or sold.
RMB389.1 million as of December 31, 2024, and further increased by 49.1% to RMB580.0 million as of December 31, 2025, primarily attributable to increases in raw materials, work in progress and finished goods to support our increased production and sales volume in line with our business growth.
Financial Information · p. 230
Our inventory turnover days increased from 131.2 days in 2024 to 142.5 days in 2025, primarily due to our strategic inventory buildup in anticipation of raw material price fluctuations.
Financial Information · p. 231
Based on the above considerations, our Directors are of the view that there was no material impairment issue for our inventories and that sufficient provision had been made at the end of each reporting period during the Track Record Period.
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.