Hong Kong IPO disclosure precedents · 26 companies, 27 items
Significant decline in revenue of a business segment, business line or subsidiary, typically driven by industry downturn or capacity oversupply, with continued weakness expected.
PV manufacturing solutions: amid industry downturn, revenue from this business declined by 57.6% from RMB1,021.4 million in 2024 to RMB433.1 million in 2025 and gross profit decreased from RMB286.9 million to RMB123.1 million accordingly.
Business · p. 175
Our revenue from PV manufacturing solutions decreased by 53.9% from RMB180.1 million for the six months ended June 30, 2025 to RMB83.0 million for the six months ended June 30, 2026 amid the industry downturn.
Summary · p. 19
According to CIC, notwithstanding that our peers in the PV equipment industry were similarly affected by the industry-wide downturn and overcapacity during the Track Record Period, our PV manufacturing solutions business recorded a more pronounced decline in revenue than certain of these peers.
Penlon’s revenue decreased from RMB208.3 million in 2024 to RMB174.1 million in 2025, primarily due to selective pricing adjustments as a measure to counter fluctuations in market demand.
Business · p. 164
Its gross profit margin, however, experienced a temporary decline, decreasing from 26.8% in 2023 to 24.2% in 2024, primarily attributable to transitional costs in the post-acquisition integration process, such as the ramp-up of internal quality control, operational and reporting mechanisms, and realignment of supply chain resources across jurisdictions.
Our revenue generated from sales of equipment decreased from RMB519.2 million in 2023 to RMB268.0 million in 2024, and further to RMB150.1 million in 2025, as station investors have generally adopted a more cautious investment approach, particularly with respect to upfront capital spending.
Business · p. 137
Our revenue generated from provision battery-swapping operational services decreased from RMB86.9 million in 2023 to RMB84.7 million in 2024, and further to RMB66.7 million in 2025.
Business · p. 137
As we continued to refine the scale and geographic layout of our self-owned stations, the number of such stations further decreased from 291 as of December 31, 2024 to 214 as of April 30, 2026.
The GMV of digital marketplace business experienced an overall decline during the Track Record Period, primarily due to the combined impact of industry factors and our strategic adjustment.
Summary · p. 3
The decrease in our overall gross profit margin during the Track Record Period was primarily due to the continuously growing contribution from self-operated business, which carries inherently lower gross profit margin due to its business nature and revenue model.
In 2025, our civil aviation segment recorded a decline in revenue contribution, sales volume, selling price range, and average selling price, primarily attributable to a temporary slowdown in the bidding and procurement cycles of domestic airport renovation and expansion projects, resulting in a market trough and project delays during the year.
Business · p. 150
To the best knowledge of our Directors, this was mainly attributable to the consolidation of procurement channels by certain key downstream industry participants as part of their efforts to streamline procurement practices.
Our revenue generated from sale of healthcare products and other products in Zhejiang province decreased from 2024 to 2025, primarily due to the decrease in revenue from sale of healthcare products and other products of SXT Pharmacies, resulting from (i) the restricted wholesale business, as SXT Pharmacies have shifted to exclusively wholesale the Angong Niuhuang Pills series for the avoidance of potential competition with similar business of TRT Group; and (ii) the decline in retail business, which was attributable to more prudent consumer spending behavior consistent with the market conditions during the relevant year.
Business · p. 127
The gross profit margin of sale of healthcare products and other products in Zhejiang province decreased in 2024 and 2025, primarily due to the expanded wholesale business of SXT Pharmacies, the gross profit margin of which was generally lower than that of retail sales in line with industry practice.
Business · p. 127
Our revenue generated from TCM healthcare services in Zhejiang province decreased from 2024 to 2025, primarily due to the decrease in customer visits of SXT Hospital mainly as a result of (i) certain physicians’ suspension of medical consultation services due to personal factors, including poor health, leading to fewer medical resources and lower patient attendance; and (ii) a longer service suspension period in 2025 during the Chinese New Year that compressed effective consultation hours.
In particular, our revenue derived from sales of actuators decreased by RMB36.7 million, or 29.3%, from RMB125.3 million in 2024 to RMB88.6 million in 2025.
Business · p. 155
Our gross profit margin for our sensors was 40.3%, 36.2% and 36.6% in 2023, 2024 and 2025, respectively, while the gross profit margin for our actuators was 28.0%, 25.0% and 18.4% for the same periods.
During the Track Record Period, our average project value for intelligent cockpit domain controller products decreased, primarily because the number of our new SoC platforms increased, which in turn led to an increase in the number of new projects.
Business · p. 152
As a result, a higher proportion of our projects were at an early research and development stage and generated relatively low revenue, which diluted our average project value.
Revenue in respect of our e-commerce customers decreased over the Track Record Period, primarily attributable to a decrease in delivery volume for a major customer due to its change in advertisement strategy.
Business · p. 144
The gross profit margin for our automotive industry customers decreased in 2025, primarily attributable to intensified pricing competition in the industry and the increased bargaining power of new energy vehicle customers, as well as the loss of certain high-margin projects.
Business · p. 144
During the Track Record Period, gross profit margin in respect of our direct sales decreased as a result of intensified competition in the domestic industrial pumps market, while gross profit margin from our sales through distributors increased as our proportion of overseas distributors, which enable us to obtain better profit margins, grew.
In 2024, revenue and gross profit of our integrated intelligent sensing solutions segment amounted to RMB542.0 million and RMB124.2 million, representing a year-on-year decrease of 19.7% and 31.9%, respectively, and its gross profit margin decreased from 27.0% in 2023 to 22.9% in 2024.
Financial Information · p. 166
As a result, the number of integrated intelligent solution projects decreased from 1,052 in 2023 to 825 in 2024.
Financial Information · p. 166
The relatively higher operating expenses incurred in 2024 also contributed to the decreases in profit from continuing operations in the year.
In FY2024, the units shipped to our customers decreased by approximately 60.4% as compared to FY2023 was primarily attributed to the fact that there was a reduction in sales order for our lithium-ion battery manufacturing equipment in general resulting from the temporary slowdown in the lithium-ion battery intelligent equipment industry during that year.
Business · p. 122
Despite a temporary slowdown in the lithium-ion battery intelligent equipment industry in China and globally in FY2024 due to a cyclical inventory destocking across the battery industry and a slowdown in capacity expansion investments during that year, we had maintained solid sales performance during the Track Record Period, with annual revenue of approximately RMB1.2 billion for each of FY2023, FY2024 and FY2025, reflecting our capability and reliability as a crucial industry player.
In several months of 2025, an industry-wide control on telecom service capacity temporarily reduced the efficiency of Jiangsu Daotai’s AI-driven outbound calls, which constrained our service capacity.
Summary · p. 13
Revenue generated from Customer A subsequently decreased from RMB189.8 million in 2024 to RMB62.8 million in 2025, primarily we mainly provided customer engagement to Customer A, and an industry-wide control on telecom service capacity in several months in 2025, which temporarily reduced the efficiency of Daotai’s AI-driven outbound calls and constrained our service capacity for Customer A.
Business · p. 154
Notably, we entered into 17 new agreements to provide our solutions to insurance companies, among which 3 are agreements with life insurance companies subsequent to December 31, 2025 and as of the Latest Practicable Date.
Within such market trend, the selling volume of our smart terminal products, for example, increased from 8.1 million units in 2023 to 13.0 million units in 2024, and slightly decreased to 12.0 million units in 2025.
Financial Information · p. 186
The decrease in transaction amount in 2025 was mainly because of shortage of memory supply in the industry, resulting in a decrease in shipping volume.
Business · p. 144
Our Directors have confirmed 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 end date of the years reported in the Accountants’ Report in Appendix I to this document
Yidui’s average DAUs decreased from 1.8 million in 2023 to 1.5 million in 2025, and its average MAUs declined from 5.5 million in 2023 to 4.8 million in 2025.
Business · p. 156
The decreases primarily reflected our strategic shift in 2023 from user base expansion to balanced focus on user growth, quality and value.
Business · p. 156
Yidui’s seven-day retention rate remained relatively stable at 68.6%, 72.4%, and 71.9% during the Track Record Period despite the fluctuations in its DAU and MAU, which demonstrates the stability of our core user base and stickiness.
Our revenue from PS building subcontracting services decreased to RMB1,293.9 million for the year ended December 31, 2023 from RMB1,770.7 million for the year ended December 31, 2022, primarily attributable to the completion of substantial construction work for certain large projects in 2022.
Summary · p. 3
For the six months ended June 30, 2025, our gross profit margin decreased slightly to 10.7% primarily because we undertook certain large-scale projects with our major customer with relatively low gross profit margins to gain market share.
Our revenue from V2X products and solutions decreased from RMB74.2 million in the six months ended June 30, 2024 to RMB9.2 million in the same period of 2025, primarily because (i) the prior period recorded revenue from a national-level V2X pilot zones project, the Chongqing V2X Project, which contributed a substantial share of revenue and did not recur in the same period of 2025, and (ii) uncertainty regarding the implementation of industry policies and standards, which affected potential customers' procurement decisions and led to temporary softening of market demand.
Summary · p. 3
Our revenue from intelligent perception solutions decreased from RMB28.2 million in the six months ended June 30, 2024 to RMB20.5 million in the same period of 2025, primarily because we did not record revenue from sales of our TAPS in the six months ended June 30, 2025, mainly due to temporary fluctuations in demand from certain customers and the impact of project acceptance cycles.
Our Directors consider that the revenue derived from transportation hubs including airports and high-speed rail stations decreased in the first eight months of 2025 as compared to the corresponding period in the previous year, mainly because (i) there were more flight and high-speed rail delays caused by adverse weather conditions especially in the first quarter of 2024, which led to increased usage frequency of the mechanical massage service at airports and high-speed rail stations, while there was no similar incident occurred in the same period of 2025; and (ii) there was a decrease in the number of mechanical massage equipment deployed in the high-speed rail stations in the first eight months of 2025 due to restrictive policies imposed by National Railway Administration and prevailing market conditions.
Summary · p. 6
The site occupancy agreement of this POS was not renewed after the expiry date taking into account the restrictive policies imposed by the National Railway Administration.
In 2023 and 2024 and the first four months of 2024 and 2025, we generated revenue from the royalty payments in connection with the sales of VV116 in the PRC of RMB11.8 million and RMB5.1 million, RMB1.0 million and RMB0.3 million, respectively, and from our sales of pharmaceutical products of RMB0.7 million, RMB1.5 million, RMB4.0 thousand and RMB2.6 million, respectively.
Financial Information · p. 444
At the time of such transfer, the market outlook for COVID-19 therapeutics had shifted significantly, transitioning from a pandemic-driven surge in demand to a state of normalization.
Business · p. 385
We expect that our revenue will continue to grow along with our enhanced marketing and promotion efforts for our commercialized products, our ongoing investments in research and development to advance clinical-stage drug candidates and expand therapeutic indications, as well as our endeavors to develop and commercialize additional drug candidates in the future.
Our revenue grew from RMB1,269.3 million for the year ended December 31, 2022 to RMB1,462.0 million for the year ended December 31, 2023, albeit a decline to RMB1,381.4 million for the year ended December 31, 2024 driven by our goal to achieve a balanced revenue structure and sustainable growth in the long term.
Summary · p. 27
The decrease in gross profit margin of 53.2% in 2022 to 50.1% in 2023 is the natural result of our rapid expansion of the operational intelligence business, which typically has a lower profit margin than our marketing intelligence business.
Financial Information · p. 345
The slight increase in gross profit margin of 50.1% in 2023 to 51.6% in 2024 was mainly due to enhanced standardization of our products.
The decrease in our revenue from insurance transaction services from RMB1,628.6 million in 2023 to RMB1,377.8 million in 2024 was mainly attributable to the decrease in revenue from Niubao 100 platform from RMB1,101.1 million in 2023 to RMB864.6 million in 2024, which was further attributable to (i) the decrease in revenue generated from self-media traffic channels from RMB599.5 million in 2023 to RMB404.6 million in 2024 and (ii) to a lesser extent the decrease in revenue generated from licensed brokerages and agencies from RMB501.7 million in 2023 to RMB459.9 million in 2024.
Summary · p. 4
Furthermore, we enhanced cooperation with large licensed brokerages and agencies, for example Supplier E and Supplier H in 2024.