Losses and path to profitability

Loss for the year | (95,794) | (102,311) | (28,567)

Summary · p. 6

We recorded an adjusted net loss of RMB86.6 million in FY2023, a net loss of RMB87.2 million in FY2024, and a net profit of RMB22.3 million in FY2025 under adjustments by the non-HKFRS measure.

Summary · p. 6

In 2023, 2024 and 2025, we had net losses of RMB68.5 million, RMB56.5 million and RMB62.5 million, respectively.

Summary · p. 5

During the Track Record Period, our net losses were primarily attributable to R&D and market expansion of robot lawn mower, which was still in the ramp-up phase.

Business · p. 146

We expect to turn around our net loss position through increase in revenue, improvement in gross profit margin and enhancement in operating efficiency.

Business · p. 147

We recorded a profit of RMB11.5 million in 2024, while we incurred losses of RMB2.2 million and RMB355.6 million in 2023 and 2025, respectively.

Summary · p. 15

Our loss in 2023 was primarily attributable to substantial initial investments in research and development activities necessary to establish our technological foundation and product offerings.

Business · p. 187

Our net loss in 2025 was primarily due to changes in the fair values of financial liabilities on shares with preferential rights.

Business · p. 187

We expect that we will continue to record net losses for the year ending on December 31, 2026, primarily because we expect to incur significant research and development expenses as we continue to advance and expand our pipeline and enhance our TRANDD workflow system.

Summary · p. 13

Share-based payment expenses are non-cash expenses arising from restricted A-Share incentives granted under relevant schemes.

Summary · p. 8

Despite temporary losses, following years of substantial upfront investments in R&D, market education, as our AI inference chips and AI-native products have entered commercialization and begun to drive increasing sales volumes, enabling us to achieve significant economies of scale by spreading operating costs across a broader revenue base and positioning us to break even in the near term.

Business · p. 188

We expect to achieve profitability by driving revenue growth, improving gross profit margins, and optimizing operating expenses.

Business · p. 184

We incurred net losses of RMB110.1 million in 2023, and reached breakeven and recorded net profit of RMB9.7 million in 2024.

Business · p. 157

However, we incurred net loss in 2023, and net cash used in operating activities in 2023 and 2024.

Business · p. 154

We firmly believe that our proven business model, diverse and full solution coverage and R&D capabilities provide a clear and credible path to long-term profitability.

Business · p. 157

In 2023, 2024 and 2025, we incurred net loss of RMB262.2 million, RMB328.9 million and RMB321.2 million, respectively. Moreover, excluding the share of profits of joint ventures and associates, our net loss during the Track Record Period would be RMB675.9 million, RMB817.1 million and RMB763.9 million, respectively.

Summary · p. 4

Given our short operating history in the NEV segment, we have not yet reached a scale at which fixed costs, including depreciation of production facilities and amortization of development expenditures, can be effectively absorbed, which has further contributed to our net loss position.

Business · p. 151

since 2025, we have made substantial upfront investments in technology and solution development for our technology solutions, which remained at the beginning stage of commercialization as of the Latest Practicable Date.

Business · p. 151

We had loss and total comprehensive loss of RMB291.2 million, RMB298.7 million, and RMB235.4 million in 2023, 2024, and 2025, respectively.

Summary · p. 4

We were loss-making during the Track Record Period despite our disciplined level of operating expenses because we began exploring our optimal business model for the emerging modern electricity service market in 2023 and thus recorded relatively low revenue and low gross profit margin.

Summary · p. 4

Our loss-making during the Track Record Period reflects the deliberate strategies that we adopted to validate our business model and achieve leading position in a rapidly expanding market rather than inefficiency in operations.

Summary · p. 5

Loss for the year | (152,872) | (353,052) | (483,523)

Summary · p. 7

We expect to further improve our profitability in the near future through continuous revenue growth.

Financial Information · p. 189

The decreasing adjusted EBITDA (non-IFRS measure) and adjusted net profit (non-IFRS measure) from 2023 to 2024 primarily resulted from increased operating expenses associated with our upfront investment to expand our global operations and sales network.

Financial Information · p. 189

We expect that we will continue to record net losses for the year ending December 31, 2026, primarily because (i) we expect to incur significant research and development expenses as we continue to advance and expand our pipeline and enhance our technology platforms; and (ii) we expect to incur [REDACTED] in connection with our proposed [REDACTED].

Summary · p. 14

(Loss)/profit for the year | (8,747) | 15,765 | 32,180

Summary · p. 9

Adjusted net (loss)/profit (non-IFRS measure) | (4,630) | 28,209 | 38,481

Summary · p. 9

We had a net loss of RMB719.0 million, RMB1,094.1 million and RMB400.9 million for the years ended December 31, 2023, 2024 and 2025, respectively.

Financial Information · p. 208

The net losses were incurred during the Track Record Period because we have been engaged in promoting customer engagement and enhancing our brand recognition, rather than seeking immediate financial returns or profitability, in order to lay a solid foundation for our long-term success, and to a lesser extent, our continuous investment of resources to strengthen our research and development for medical knowledge.

Financial Information · p. 208

In 2024, while we saw an increase in our business, as we incurred impairment losses on intangible assets of RMB175.8 million and impairment losses on disposal group of RMB19.2 million, our net loss increased.

Summary · p. 7

(Loss)/profit for the year | (1,967,631) | (690,343) | 7,440

Summary · p. 5

Through AI-driven scheduling and enhanced operational management, we have achieved both revenue growth and profitability improvement, making us the fastest large scale mobility platform to achieve profitability in China, according to CIC.

Financial Information · p. 150

Since our inception in 2019, we have achieved significant growth in order volume, reaching 797.2 million in 2025.

Financial Information · p. 150

Loss for the year | (184,619) | (255,954)

Summary · p. 11

We have invested a significant portion of our efforts and financial resources in the development of our existing product candidates, and we expect to continue to incur substantial and increasing expenditures for the development and commercialization of our product candidates.

Financial Information · p. 218

As the pre-clinical studies and clinical trials of our product candidates continue to progress and as we gradually bring our pipeline products to commercialization, we expect to incur additional costs in relation to research and development, manufacturing, regulatory affairs, and sales and marketing efforts, among other things.

Financial Information · p. 219

The loss-making position of our Group as of December 31, 2024 was primarily due to the net losses on financial assets carried at fair value through profit or loss, amounting to RMB253.0 million.

Financial Information · p. 228

The losses arose mainly from the investment of equity securities listed in the PRC which generate a return individually and are largely independent of the Group’s other resources (for example, property, plant and equipment, right-of-use assets and intangible assets).

Financial Information · p. 228

We recorded income tax credit of RMB17.2 million for the year ended December 31, 2024 while we recorded income tax expense of RMB13.4 million for the year ended December 31, 2025, primarily due to our turnaround from loss to profit before taxation during the period.

Financial Information · p. 217

Although we experienced revenue growth during the Track Record Period, we incurred net losses of RMB149.6 million, RMB193.1 million and RMB290.1 million.

Summary · p. 13

Nevertheless, as of January 1, 2023, we had accumulated losses of RMB1,697.0 million.

Summary · p. 13

While we expect our net loss to decrease, we do not expect to be profitable in 2026 before adjusting non-recurring items.

Summary · p. 19

We incurred net losses of RMB413.5 million, RMB735.3 million and RMB1,342.4 million in 2023, 2024 and 2025, respectively, due to significant initial investment in R&D of our Specialist Technology Products.

Business · p. 183

Our net loss further increased from 2024 to 2025 primarily due to a further increase in the fair value changes of financial instruments issued to investors, which rose to RMB843.5 million in 2025, as well as increases in R&D expenses, selling and marketing expenses, general and administrative expenses and share-based payment expenses in line with the expansion of our business and continued investment in commercialization and corporate development.

Summary · p. 18

In 2026, however, we expect to record a significant increase in net losses, primarily due to our continued substantial investment in R&D and the fact that the commercialization of our products and solutions will continue to take time to materially contribute to our revenue.

Summary · p. 25

We had losses in the alternative investment business in 2024 as we experienced declines in the fair value of our listed holdings and associated losses which were mainly attributable to a sharp correction in the Beijing Stock Exchange, slower-than-expected share transfers to other boards, and tighter IPO pathways.

Business · p. 128

Our performance recovered in 2025, which were supported by policy tailwinds, market improvements, and strategic realignment.

Business · p. 128

Profit/(loss) for the year | (15,695) | 24,191 | (120,419)

Financial Information · p. 176

The increase in selling and distribution expenses directly affected our overall operating results in 2025.

Financial Information · p. 173

As a result, we recorded net loss of RMB33.9 million, RMB188.6 million and RMB2.6 million in 2023, 2024 and 2025, respectively.

Business · p. 134

According to CIC, most of the global lithium-ion battery electrolyte additive suppliers was loss-making 2023 to 2025.

Business · p. 134

Our cost of sales to revenue ratio decreased from 122.9% in 2024 to 90.3% in 2025, contributing to a successful transition from gross loss to gross profit.

Financial Information · p. 172