Our financial assets at fair value through profit or loss decreased from RMB25.1 million as of December 31, 2024 to RMB10.2 million as of December 31, 2025, primarily due to decreased investments in wealth management products.
Financial Information · p. 202
Specifically, our treasury management policies include, but not limited to that (i) we insist on investing in low-risk wealth management products such as structured deposits as our fundamental investment guideline;
Financial Information · p. 202
Our other gains consist primarily of (i) investment income from financial assets at fair value through profit or loss, which represents gains related to wealth management products that we purchased, and (ii) fair value gains on financial assets at fair value through profit or loss, which represents changes in fair value of our wealth management products.
For example, in 2025, our intelligent sensing business recorded a gross margin of 24.5% and our intelligent manufacturing business recorded a gross margin of 29.4%, while our optical interconnect business recorded a gross margin of 13.3% in the same period, which is below our overall gross margin due to product mix and iteration of our optical interconnect products.
Financial Information · p. 216
We aim to optimize our product mix. As we strengthen relationships with existing customers and solidify our position in target markets, we seek to increase the proportion of higher-margin products supplied to them.
In anticipation of these changes, we undertook substantial pre-2023 inventory preparations, including the early procurement of raw materials and packaging to meet transitional demand and avoid supply chain disruptions.
Financial Information · p. 228
However, the implementation of the new standards led to a short-term disruption in our production and sales schedules, particularly for the year ended December 31, 2023 and the first half of 2024.
Financial Information · p. 228
Additionally, once the new standards were enforced, we experienced a shift in product lines, leading to changes in our revenue recognition, gross margins, and inventory turnover rates.
Our overall customer retention rates were 64.9%, 56.1% and 49.3% in 2023, 2024, and 2025, respectively, calculated as customers that made revenue contribution in the current year minus new customers added during the year, divided by customers that had revenue contribution in the immediately preceding year.
Business · p. 166
This long-tail churn has minimal revenue impact given our revenue concentration among strategic customers, who have demonstrated exceptional stability and significant volume growth throughout the Track Record Period.
Our Company previously considered the possibility of seeking an initial public offering on the Shenzhen Stock Exchange in the PRC (the “A Share Listing Attempt”).
Summary · p. 12
Our Directors confirm that the tutoring reports filings did not contain any material information identified by the Tutoring Agency which has to be brought to the attention of the Stock Exchange and potential investors, the Shenzhen Stock Exchange and the Shenzhen office of the CSRC did not raise any comments in respect of the tutoring reports and the A Share Listing Attempt, and there were no disputes or disagreements between the Tutoring Agency and the Company.
As demand from downstream industries evolved and customers increasingly required PCB products with higher technical complexity and reliability, we progressively adjusted our product structure to prioritize PCB products with greater value contribution, such as multilayer PCBs, HDI boards and other special-process PCB products.
Financial Information · p. 186
During the Track Record Period, revenue generated from multilayer PCBs increased at a greater pace among our products.
Financial Information · p. 186
Overall, the ongoing optimization of our product mix toward higher-value-added PCB products played an important role in shaping our revenue growth, gross profit margin and overall profitability during the Track Record Period.
Since November 2018, Customer A has adopted an electronic settlement method known as "A Chain," under which the relevant procurement entity within the Customer A group issues electronic accounts receivable certificates to its suppliers.
Business · p. 164
During the Track Record Period, the amount of A Chain certificates we factored to the banks was RMB11.5 million in aggregate.
Business · p. 164
To avoid concentration, we have set up liquidity buffer arrangement by using A Chain certificates to settle the payment of our suppliers so as to utilize the A Chain certificates we receive from Customer A to the most extent and deal with the risk of potential shocks.
Our largest customer in 2024 was an Israel-based company.
Summary · p. 16
While the ongoing regional conflict involving Israel had caused some delays in acceptance testing, the project implementation for this customer continues to advance.
Summary · p. 16
Based on the current status of the project and the information available to us, our Directors believe that the regional conflict has not, and is not expected to, result in any material disruption to the implementation of this project or to our overall business operations and financial performance.
Our net income from cross-border fund arrangements amounted to approximately RMB104.0 million, RMB111.9 million and RMB110.8 million in FY2023, FY2024 and FY2025, respectively, representing approximately 47.2%, 47.6% and 41.4% of our Income from Ordinary Course of Business during the same periods.
Financial Information · p. 267
If the business volume of our supply chain solutions significantly declines due to factors such as economic downturns, geopolitical and trade tensions, or supply chain disruptions, we will not be able to sustain income from these arrangements, adversely impacting our financial condition and operational results.
Financial Information · p. 268
Our success in generating income from our operation of cross-border fund arrangements is also dependent on our ability to secure favourable exchange rates and appropriate trade finance products from commercial banks.
Our notes receivable represent the balance of discounted but unmatured notes receivable from our customers who settle their payments with us by bank acceptance notes, which were originally issued by banks not with the list of low-risk banks.
Financial Information · p. 297
As confirmed by Frost & Sullivan, it is common in the industry for supply chain solutions providers to accept bank acceptance notes as settlement of the balance due from customers, with such note receivable having a maturity date of up to six months.
Financial Information · p. 297
Considering that all of our notes receivable were issued by commercial banks, our management determined that the credit risk associated with the Group’s notes receivable was not material.
Our contingent liabilities amounted to RMB25.5 million, RMB25.5 million, RMB35.5 million and RMB45.5 million as of December 31, 2022, 2023, 2024 and October 31, 2025, respectively, which was in relation to our undertaking to make available a part of our facilities under construction for public use per requirement of the local government in accordance with government policies.
Financial Information · p. 391
A guarantee has been issued in respect of these undertakings.
For FY2023, FY2024 and 6M2025, the amount under these contra-charge arrangements with our subcontractors was approximately RM22.2 million, RM13.7 million and RM5.0 million, respectively.
Business · p. 176
According to CIC, our Group’s adoption of contra-charge arrangements in certain projects is consistent with common industry practice in Malaysia’s civil engineering sector.
Business · p. 176
Therefore, the contra-charge arrangements did not have any material effect on our Group’s cashflow position during the Track Record Period.
In relation to our machinery that is already aged 15 years or above (totalling 11 units as at 30 June 2025), based on our Group’s internal maintenance records and technical assessments, the expected remaining useful life of such machinery, in practice, varies depending on its type, usage intensity and maintenance history.
Business · p. 187
As most of our aging machinery are well-maintained, they are expected to remain operational for approximately five to ten more years, subject to periodic servicing and parts replacements.
Business · p. 187
In view of the above, our executive Directors believe that the presence of aging machinery in our Group’s fleet does not pose any material risk to our ability to deliver ongoing and future projects effectively.
Although the project was completed in 2021, we recognised revenue in FY2023 and FY2024 which was related to post-completion adjustment and certification of work done finalised due to variation orders in these two financial years.
Business · p. 140
In particular, based on the negotiation between our Group and Bridgex, the letter of award for Project JB15 was entered into on a re-measurement basis, pursuant to which an estimated contract sum was determined based on the agreed unit rates and the estimated quantities of work items.
Business · p. 140
According to CIC, (i) in the Malaysian civil engineering industry, it is not uncommon for additional revenue to arise from post-completion adjustments resulting from re-measurement of quantities and variation orders.
In 2022, 2023, and 2024 and for the six months ended June 30, 2024 and 2025, our interest income from client funds amounted to RMB313.0 million, RMB537.0 million, RMB644.1 million, RMB333.6 million and RMB243.8 million, respectively, our interest income from client funds in the PRC amounted to RMB194.4 million, RMB164.2 million, RMB195.5 million, RMB100.7 million and RMB81.1 million, respectively, and our interest income from client funds overseas amounted to RMB118.6 million, RMB372.8 million, RMB448.7 million, RMB232.9 million and RMB162.7 million, respectively.
Summary · p. 23
However, interest rate movements are entirely outside our control and remain subject to frequent policy shifts.
Summary · p. 23
By offering diversified services and leveraging our expertise in both the PRC and overseas markets, we help clients to navigate the challenges posed by interest rate fluctuations while supporting their derivatives trading, wealth management, and risk management needs.
However, since the Institute of Bioengineering of AMMS has not registered a change of ownership for the Relevant Patents, both the Company and the Institute of Bioengineering of AMMS remain co-owners of the Relevant Patents.
Business · p. 286
In particular, the Institute of Bioengineering of AMMS acknowledged that the rights to commercialize and use the two PDGF-related patents, which include patents of a recombinant human platelet-derived growth factor and its encoding gene and expression method (expired on July 14, 2024) and a recombinant human platelet-derived growth factor gel (together, the “Relevant Patents”), belong exclusively to the Company.
Business · p. 355
Therefore, the Institute of Bioengineering of AMMS did not registered a change of ownership for the Relevant Patents and both the Company and the Institute of Bioengineering of AMMS remained co-owners of the Relevant Patents.
Accordingly, we had adopted such treatment when preparing the financial statements as at and for years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2024 and 2025 included in this prospectus.
Summary · p. 18
The change resulted in a reclassification of amounts previously reported as sales revenue to investment income, and a reclassification of period-end holdings from inventory to other current assets.
Summary · p. 18
Accordingly, we adopted a net recognition method for reporting operating income associated with certain trading businesses based on the New RM Rules when preparing the financial statements as at and for years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2024 and 2025 included in this prospectus.
We procured 20.0 kt of ores from an independent third party (which is Supplier B. See “Business — Our Supplier, Contractors and Subcontractors — Our Top Five Suppliers” in this prospectus for details), with the amount of RMB17.0 million in aggregate in 2024.
Business · p. 169
Diversifying our ore resources through external procurement is a strategic initiative aimed at inherently facilitating cost reduction and enhancing our mining efficiency.
Business · p. 169
Based on the above, our Directors are of the view that diversifying our ore resources through external procurement is a strategic move that will enhance our mining operational efficiency, ensure consistent product quality, and enhance the position of our Company to meet the increasing market demand for our zinc, lead and copper concentrates.
However, during periods of market stagnation or declining volatility, trading volumes contract, which results in lower transaction-based revenue and reduced contributions from other services such as custody, staking and asset management.
Financial Information · p. 404
For example, in 2022, we recorded a fair value loss of HK$20.3 million on our digital asset holdings, primarily driven by a sharp decline in global digital asset prices.
Financial Information · p. 405
In order to mitigate such market volatility, we have been further diversifying customer base, product offerings, geographic market coverage and monetization channels.