Net operating cash outflows during the Track Record Period were primarily attributable to continued R&D investments and working capital requirements arising from business expansion, including cash expenditures for R&D
Business · p. 188
activities and inventory procurement for new product launches, as well as timing differences between customer collections and supplier payments.
Business · p. 189
The relatively high cash burn rate of RMB32.5 million per month for the four months ended April 30, 2026 was primarily attributable to net cash used in operating activities of RMB100.9 million, which reflected loss before tax of RMB66.6 million and working capital movements, principally the RMB24.0 million increase in trade and bills receivables mainly attributable to prolonged customer settlements resulting from lower sales collection rate during the first four months of the year, as compared to the full-year rate.
We recorded net operating cash outflow of RMB88.6 million, RMB125.6 million, RMB78.1 million and RMB110.1 million in 2023, 2024, 2025 and the six months ended June 30, 2026, respectively.
Financial Information · p. 241
Our net cash outflow from operating activities were primarily due to (i) our losses for the relevant periods, and (ii) the increases in our working capital, in particular our trade and bills receivables, in line with our business growth.
Financial Information · p. 241
By implementation of the foregoing measures, we expect a material improvement in our operating cash flow position and cash conversion cycle in the next 12 months, achieving industry leading levels.
For the six months ended June 30, 2026, our net cash used in operating activities was RMB5,871.3 million, which was primarily due to an increase in inventories, driven by (i) the increase in the prices of memory chips, one of our key raw materials, and (ii) our strategic increase in the volume of memory chips purchased in response to such price increase, in order to secure sufficient supply, maintaining supply chain stability and locking in procurement costs against further price increases.
The increase in our inventories and inventory turnover days contributed to our net operating cash outflow position in 2025 and the six months ended June 30, 2026.
Financial Information · p. 242
We have adopted the following liquidity management measures to manage the foregoing mismatch, improve our net operating cash outflows position in 2025 and the six months ended June 30, 2026, reduce our overall liquidity risk and enhance our working capital efficiency:
Financial Information · p. 253
As of July 31, 2026, we had unutilized credit facilities of RMB239.1 million.
In addition, as a result of the increases in our trade and bills receivables and inventories driven by our business expansion, as well as our net loss positions in 2023 and 2024, we recorded net cash used in operating activities in the amount of RMB34.8 million, and RMB40.0 million, respectively.
Summary · p. 16
As our net loss position continue to improve, we also expect our operating cash outflow position to improve.
In 2023, 2024 and 2025 and for the six months ended June 30, 2026, our net cash used in operating activities amounted to RMB482.2 million, RMB195.7 million, RMB34.3 million and RMB359.8 million, respectively, primarily reflecting our loss before tax of RMB1,008.0 million, RMB1,252.7 million, RMB812.4 million and RMB429.9 million, respectively.
Business · p. 164
Our cash conversion cycle improved from negative 40 days in 2023 to negative 135 days in 2025, and further to negative 148 days for the six months ended June 30, 2026, demonstrating increasingly efficient working capital dynamics.
We recorded accumulated losses as of January 1, 2023, and incurred adjusted net losses and net operating cash outflows during the Track Record Period primarily because we continued to invest heavily in research and development, technical talent and market expansion to build our core AI and big data infrastructure capabilities.
Summary · p. 14
During the Track Record Period, we have implemented a series of stringent cash management measures to improve our net operating cash outflow position.
Financial Information · p. 248
Our historical monthly average cash burn rate was RMB43.5 million, RMB32.2 million, RMB14.2 million and RMB23.6 million in 2023, 2024 and 2025 and for the three months ended March 31, 2026, respectively.
We recorded net cash used in operating activities of RMB77.0 million, RMB94.5 million, RMB65.3 million, RMB46.6 million and RMB32.6 million in 2023, 2024, 2025, and the six months ended June 30, 2025 and 2026, respectively.
Business · p. 158
The improvement in operating cash outflows from RMB94.5 million in 2024 to RMB65.3 million in 2025 and from RMB46.6 million in the six months ended June 30, 2025 to RMB32.6 million in the same period in 2026 reflects the acceleration of project acceptances during the periods, which reduced the working capital locked in contract fulfillment costs.
We recorded net operating cash outflow of RMB715.4 million, RMB416.0 million and RMB934.7 million in 2024, 2025 and the six months ended June 30, 2026, respectively, while net operating cash inflow of RMB106.2 million in 2023.
Financial Information · p. 242
In particular, we have renegotiated with all of our five largest customers in 2025, which collectively accounted for 83.1% of our total revenue in 2025, to reduce their credit periods to 30 days upon receipt of invoice.
Financial Information · p. 243
By implementation of the foregoing measures, we expect a material improvement in our operating cash flow position and cash conversion cycle in the next 12 months, achieving industry leading levels.
The decrease in our cash burn rate during the Track Record Period primarily reflected the reduction in net cash used in operating activities.
Financial Information · p. 263
To address the cash flow mismatch arising from the longer inventory turnover days and trade receivable turnover days compared to trade payable turnover days and improve our liquidity position moving forward, we also plan to engage with our suppliers to negotiate extended payment terms and flexible payment approaches, reducing the pressure on our working capital, and to further refine our inventory management practices such as improving demand forecasting and enhancing supplier collaboration to ensure optimal stock levels and reduce inventory turnover days.
During the Track Record Period, we incurred negative cash flows from our operations.
Financial Information · p. 252
Our operating cash outflows resulted from investments in research and development of our cardiopulmonary diagnostic and therapeutic devices, selling activities for commercialization of our products, and administrative activities, which are essential for our business development.
Our cash burn rate refers to our average monthly (i) net cash used in operating activities, which includes research and development expenses; and (ii) capital expenditures.
Financial Information · p. 261
Our Directors and our management team will continue to monitor our working capital, cash flows and our business development status.
Our net cash used in operating activities amounted to RMB106.0 million, RMB129.8 million, RMB67.6 million and RMB52.6 million in 2024, 2025 and the six months ended June 30, 2025 and 2026, respectively.
Financial Information · p. 239
We expect to generate more cash flow from our operating activities, through income from launching and commercializing our Core Product, sebaloxavir marboxil tablets, advancing the development and eventually commercializing other pipeline products, and enhancing our cost containment capacity and operating efficiency.
Financial Information · p. 239
We relied on equity financing as the major sources of liquidity during the Track Record Period.
We recorded operating cash outflow of RMB70.0 million for the six months ended June 30, 2026, primarily attributable to (i) our proactive inventory stocking in line with our business expansion and sales growth, causing increases in inventories as well as trade receivables; (ii) increased receivables from overseas offline distributors as their sales continued to grow under the credit terms introduced in 2025, as reflected by the 68.6% increase in revenue generated from overseas offline distribution from the six months ended June 30, 2025 to the six months ended June 30, 2026; and (iii) an increase in trade receivables from Amazon, as most of our major promotional campaigns in 2026 took place in June, compared with July in 2025.
Financial Information · p. 239
Therefore, our Directors are of the view that the net cash outflow from operating activities is a structural byproduct of our hyper-growth phase rather than a reflection of underlying profitability issues.
Financial Information · p. 239
To improve our net operating cash outflow position, we have continued to implement liquidity management measures, including prudent cash flow operations and budgeting, collaboration with the sales team, adoption of rolling budgets and active follow-up on customer payments.
The gradual decline in cash burn rate from 2023 to 2025 was mainly driven by a reduction in our net cash used in operating activities from RMB274.1 million in 2023 to RMB205.8 million in 2024 and further to RMB107.4 million in 2025, which constituted the largest component of our total cash burn.
Financial Information · p. 273
Such reduction primarily reflected (i) the increase in our revenue from RMB180.8 million in 2023 to RMB388.8 million in 2025; (ii) the increase in our gross profit from RMB70.6 million to RMB251.1 million and the improvement in our gross profit margin from 39.1% to 64.6% during the same period; and (iii) improved operating leverage, as our research and development and selling expenses remained broadly stable in absolute terms while decreasing significantly as percentages of revenue.
For the year ended December 31, 2025, we recorded negative cash flows from operating activities, reflecting the impact of increased working capital needs, primarily driven by higher inventory levels.
Financial Information · p. 234
We remain committed to maintaining sufficient liquidity to support our operations and growth strategy, and we will continue to monitor cash flow closely to ensure adequate funding for our business needs.
Financial Information · p. 234
Our Directors confirm that taking into account the financial resources presently available to our Group, including our internal resources and the estimated [REDACTED] of the [REDACTED], our Group has sufficient working capital for our present requirements for at least the next 12 months from the date of this document.
We recorded net cash used in operating activities of RMB77.4 million, RMB127.5 million, RMB53.4 million and RMB80.1 million for the years/periods ended December 31, 2024, 2025, and for the six months ended June 30, 2025 and 2026, respectively.
Financial Information · p. 254
During the Track Record Period, we funded our operations primarily through equity financing and revenue from the provision of research and development services and joint development arrangements.
Our historical cash burn rate increased during the Track Record Period primarily because our net cash used in operating activities increased in line with our business growth.
Summary · p. 11
In addition, we expect to record a shift from net operating cash outflows in 2025 to net operating cash inflows in 2026.
Guthrie Engineering had net cash used in operating activities amounted to S$12.4 million, S$14.7 million and S$3.9 million for the year ended 31 December 2023, 2024 and the six months ended 30 June 2025.
Financial Information · p. 223
It was mainly resulted from its profit/loss during the respective year and period, and the changes in working capital, mainly being increase in trade and other receivables, increase in contract assets, and decrease in trade payables, and decrease in other payables and accrued liabilities.
Our net cash used in operating activities was RMB39.4 million in 2023, which turned to net cash generated from operating activities of RMB23.4 million in 2024 and RMB47.6 million in 2025.
Financial Information · p. 202
This illustrates that, even where industry demand is improving and revenue is growing, the timing of collections, inventory build-up and customer acceptance can materially affect our operating cash flow.