Hong Kong IPO disclosure precedents · 70 companies, 70 items
Decline in revenue, gross margin or sales volume in the recent/unaudited period after the track record (latest quarter or months), e.g. from loss-making project deliveries, price increases deterring customers, or reduced orders.
Our sales volume across all product lines decreased from the four months ended April 30, 2025 to the four months ended April 30, 2026, primarily due to (i) the rapid increase in prices during this period, which reduced certain price-sensitive customers’ ability and willingness to procure our products, with some customers deferring purchases or downgrading specifications in response to changing demand patterns, and (ii) given that the supply of key memory raw materials, including DRAM and NAND Flash wafers, remained tight, and the average prices of DRAM and NAND Flash wafers continued to increase in the first half of 2026, the average selling prices of certain products did not rise as quickly as wafer prices because certain customers were not able to afford higher memory product costs.
Summary · p. 15
(iii) our overall financial performance benefited from the price increase which offset the impact of lower sales volume, our Directors are of the view that the decrease in sales volume does not have a material adverse impact on our business operations and financial performance.
Our income tax expense decreased by 90.5% from RMB46.1 million in 2024 to RMB4.4 million in 2025, primarily due to a decrease in profit before tax from RMB346.3 million in 2024 to RMB219.3 million in 2025 and the corresponding decrease in current income tax expense from RMB46.4 million in 2024 to RMB28.9 million in 2025.
Financial Information · p. 237
The decrease in profit before tax was mainly attributable to higher shipping and tariff costs and increases in cost of major raw materials.
The gradual decline from 2023 to 2025 was driven primarily by changes in our clinical trial technical services business line, including (i) the non-renewal of engagements by certain customers in the vaccine segment following the completion of their projects; and (ii) the non-recurring nature of certain small-value project engagements.
Summary · p. 6
According to F&S, total primary-market financing raised by China’s biopharmaceutical companies decreased by approximately 19% in 2024 as compared with 2023, which led certain existing customers to reduce, delay or terminate their research and development programs and scale back engagements with us.
Summary · p. 6
The recovery in 2025 was driven by an increase in new projects or orders placed by existing customers across both our clinical trial technical services and FSP services business lines, resulting in higher revenue recognized from customers that contributed revenue to us in both the prior and the current year.
Hence, the fluctuation in inventory turnover days during the Track Record Period was due to the combined effect of (i) the timing of Chinese New Year holiday and, to a lesser extent, (ii) variations in the order volume from Customer F.
Financial Information · p. 229
Our net current assets increased by 21.9% from RMB127.1 million as at 31 December 2024 to RMB154.8 million as at 31 December 2025 primarily due to (i) decrease of contract liabilities from RMB38.5 million as at 31 December 2024 to RMB7.7 million as at 31 December 2025 as a result of a reduction of sales order from Customer F and delayed sales peak season to January 2026 due to the timing of the 2026 Chinese New Year, and (ii) an increase in inventories from RMB48.4 million as at 31 December 2024 to RMB63.4 million as at 31 December 2025 in preparation for the sales peak season in January 2026.
Financial Information · p. 226
Our Directors confirmed that after the Track Record Period, and up to the date of this prospectus, there has been no material adverse change in our financial or trading position and prospects, and there has been no event since 31 December 2025 which would materially affect the information shown in the Accountants’ Report as set out in Appendix I to this prospectus.
During the Track Record Period, our revenue was affected by external factors: it rose in 2023 amid heightened demand during COVID-19, but declined in 2024 as post-pandemic demand weakened and downstream inventory levels remained high.
Financial Information · p. 174
As a result of the foregoing, our profit before taxation decreased by 9.4% from USD44.7 million in 2023 to USD40.5 million in 2024.
Financial Information · p. 193
Our other income decreased by 47.1% from USD34.0 million in 2023 to USD18.0 million in 2024, primarily due to (i) a decrease of USD14.6 million in consulting fee income and (ii) a decrease of USD3.8 million in government grants.
Our revenue decreased from RMB590.5 million in the four months ended April 30, 2025 to RMB556.7 million in the same period of 2026, primarily because we optimized the drivers' service fee of our ride-hailing services business to improve profitability.
Financial Information · p. 229
The gross loss margin in 2024 was primarily attributable to the increased drivers' service fees in that year to rapidly build up driver supply and increase order volume, which caused the adjusted net loss to increase.
Our revenue was RMB394.5 million and RMB352.4 million for the years ended December 31, 2023 and 2024, respectively, and increased to RMB475.6 million for the year ended December 31, 2025, representing a CAGR of approximately 9.8%, from 2023 to 2025.
Financial Information · p. 202
Notwithstanding these adjustments, in line with the intensified competition and the resulting contraction of our market share in the Chinese mainland market during the Track Record Period, the total number of our Chinese mainland distributors exhibited a general downward trend.
Business · p. 146
Our trade receivables decreased by 45.2% from RMB34.3 million as of December 31, 2023 to RMB18.8 million as of December 31, 2024, and further decreased by 13.1% to RMB16.3 million as of December 31, 2025, primarily due to reduced sales to domestic automobile manufacturers, which generally require longer credit terms.
Our cost of sales as a percentage of revenue was 54.4%, 58.2% and 61.8% in 2023, 2024 and 2025, respectively.
Business · p. 192
Our operating expenses as a percentage of revenue was 39.9%, 56.1% and 68.2% in 2023, 2024 and 2025, respectively.
Business · p. 192
This change was primarily due to a significant decrease in revenue from this segment, as demand in the consumer discretionary sector has weakened since 2023.
Our same store sales decreased by 9.9% from 2023 to 2024, primarily due to a decline in our average spending per customer from RMB150 to RMB142, which reflected our strategic adjustment of product mix and pricing to attract a broader customer base and enhance competitiveness amid evolving market trends, and the decreased average daily customer traffic per restaurant.
Business · p. 138
Same store sales increased by 4.8% from 2024 to 2025, mainly due to an increase in our same store overall table turnover rate from 3.3 to 3.7, although the average spending per customer declined from RMB142 to RMB139 over the same period.
According to Frost & Sullivan, China's analog IC industry experienced a cyclical downturn in 2023, primarily due to macroeconomic challenges and weak overall semiconductor demand. Our revenue in 2023 declined compared to the prior year.
Financial Information · p. 176
Notably, the industry began to show signs of recovery in 2024 and we have achieved growth and outperformed industry cycles by delivering high-performance solutions that meet specific industry and customer demands.
We recorded revenue of RMB767.2 million, RMB712.6 million and RMB750.0 million for the years ended December 31, 2023, 2024 and 2025, respectively.
Summary · p. 7
During the Track Record Period, our overall gross profit margin fluctuated, primarily due to (i) fluctuations in the gross profit margin of our nonclinical study services, and (ii) an increased revenue contribution from clinical trial service, which generally has a lower profit margin.
Our revenue from content licensing services decreased by 14.1% from RMB609.6 million in 2024 to RMB523.7 million in 2025, primarily due to customers’ marketing budgets control, which resulted in reduced spending on our content licensing services.
Financial Information · p. 159
Our gross profit margin decreased from 51.2% in 2023 to 46.8% in 2024 and further to 41.7% in 2025, primarily due to changes in revenue mix and margin dynamics within our service offerings.
Financial Information · p. 160
The customer retention rate and net dollar retention rate of our KA customers were 77.6% and 81.7% in 2025, respectively.
Our year-on-year same-store sales growth amounted to 64.2% from FY2023 to FY2024, while a same-store sales drop of 6.0% was recorded from FY2024 to FY2025.
Summary · p. 1
Sales generated from our Group's Comparable Stores located in the New Territories accounted for approximately HK$556.5 million and HK$548.6 million for 8MFY2025 and 8MFY2026, respectively, while sales generated from our Group's Comparable Stores located in major tourist and shopping areas in Kowloon and Hong Kong Island, namely stores located in Mong Kok, Tsim Sha Tsui and Central, accounted for approximately HK$796.1 million and HK$804.1 million for 8MFY2025 and 8MFY2026, respectively.
Business · p. 120
We believe the decrease in sales recorded by our retail shops located in the New Territories for 8MFY2026 was mainly due to cross-border customers gradually shifting to online shopping for their purchase of health, pharmaceutical and daily consumable products instead of physically visiting Hong Kong to purchase such products, as well as the implementation of more stringent cross-border measures for eligible items which can be brought back to Chinese Mainland.
We experienced a continuous decrease in same-store revenue growth during the Track Record Period, which was primarily because we continued to expand our retail network by opening new stores, which resulted in a diversion of customer traffic from existing stores and a temporary impact on same-store sales performance.
Business · p. 113
For HLA, the decrease in GMV and the fluctuations in sales volume during the Track Record Period was primarily attributable to our continuous efforts to optimize our store network.
Our net profit decreased by 23.9% to RMB33.4 million in 2025, primarily due to (1) a decrease in our revenue from RMB500.4 million in 2024 to RMB471.4 million in 2025, primarily due to declined revenue from certain self-owned medical institutions as well as the disposal of Tangshan Weikang Hospital (唐山維康醫院), along with its wholly-owned subsidiary, Tangshan Puxiang Traditional Chinese Medicine Hospital (唐山 普祥中醫醫院) (“Tangshan TCM Hospital,” together with Tangshan Weikang Hospital, “Tangshan Hospitals”), and (2) an increase in general and administrative expenses of RMB17.1 million, primarily due to our recognition of [REDACTED] expenses of RMB[REDACTED] million and increased employee compensation mainly attributable to increased headcount of our administrative staff, partially offset by a decrease in income tax of RMB14.9 million primarily as a result of the tax effects of our recognition of [REDACTED] expenses and the disposal of Tangshan Hospitals.
Summary · p. 7
After adjustment of equity-settled share-based payment and [REDACTED] expenses, our adjusted net profit (non-IFRS measure) continued to improve during the Track Record Period, amounting to RMB39.2 million, RMB59.2 million and RMB63.3 million in 2023, 2024 and 2025, respectively.
Our revenue subsequently decreased to RMB1,560.2 million in 2025, and we recorded a loss of RMB566.2 million in 2025, compared to a profit of RMB112.3 million in 2024.
Business · p. 179
After performing sufficient due diligence work which our Directors consider appropriate and after due and careful consideration, the Directors confirm that, up to the date of this document, there has been no material adverse change in our financial or trading position or prospects since December 31, 2025, being the latest date of our consolidated financial statements as set out in Appendix IA to this document, and there is no event since December 31, 2025 that would materially affect the information as set out in the Accountants’ Report included in Appendix IA to this document.
Our revenue decreased by 12.0% from 2023 to 2024, primarily due to the decrease in revenue from domestic customers in the FMCG and traditional automotive sectors, driven by macro headwinds in consumption-related sectors.
Summary · p. 13
Our gross profit decreased by 23.0% from RMB190.5 million in 2023 to RMB146.6 million in 2024, with gross profit margin declining from 31.2% to 27.3%.
Summary · p. 15
The decrease in net profit in 2024 as compared to 2023 was primarily driven by lower revenue, which weakened the economies of scale of our operations.
Our gross profit margin increased from 1.2% for the three months ended March 31, 2025 to 53.4% for the same period in 2026, primarily due to a substantial increase in average selling prices of our products amid the industry upcycle, a greater revenue contribution from higher-margin product categories, in particular intelligent automotive and other applications, and operating leverage from the significant increase in revenue scale.
Summary · p. 14
As a result of the foregoing, we recorded profit for the period of RMB2,877.5 million for the three months ended March 31, 2026, compared with loss for the period of RMB205.5 million for the same period in 2025.
In 2025, our gross profit declined, mainly due to a decrease in the average selling price of pigs, from RMB2,281.6 per head in 2024 to RMB1,897.8 per head in 2025, whereas Qingyuan Chicken and other native chickens remained a positive contributor to our gross profit.
Summary · p. 9
The decrease was mainly due to downward market conditions in both chicken and pig prices.
Financial Information · p. 230
As a result of the foregoing, our profit before taxation of RMB890.1 million for 2024 changed to a loss before taxation of RMB101.3 million for 2025.
Our adjusted net profit margin (non-HKFRS measure) decreased from 17.2% in 2024 to 14.6% in 2025, mainly because we opened more offline retail stores which typically have higher store operation expenses.
Summary · p. 12
In 2023, 2024 and 2025, our selling and distribution expenses amounted to RMB277.2 million, RMB586.5 million and RMB1,058.7 million, respectively, representing 30.5%, 33.2% and 37.9% in terms of our total revenue, respectively.