In 2023, 2024, 2025 and the three months ended March 31, 2025 and 2026, our gross profit margin was 49.3%, 46.0%, 48.2%, 36.5% and 42.2%, respectively.
Business · p. 178
Our historical gross profit margin decline was primarily due to the delivery complexity of top-tier customers, particularly during the initial rollout of our advanced cloud-based services.
Business · p. 178
Our cost of sales as a percentage of our total revenue decreased in 2025 and in the three months ended March 31, 2026, as compared to the same period in 2025, primarily attributable to enhanced delivery efficiency and product maturity.
During the Track Record Period, the gross margin for electronic and ceramic materials continued to decrease while its average selling price continued to increase, due to a shift in product mix toward higher-priced but also higher-cost items and the timing of cost pass-throughs.
Financial Information · p. 198
In addition, increases in key raw material costs and consumables were not fully reflected in customer pricing within the same period due to qualification and contract cycles, resulting in temporary pressure on gross margin.
Financial Information · p. 198
Average selling price and gross margin for electronic components was relatively low in 2023 as a result of product mix changes and weak industry demand during the 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.
During the Track Record Period, we experienced fluctuations in our gross profit margin, which was approximately 14.9%, 17.9% and 12.3% in 2023, 2024 and 2025, respectively.
Financial Information · p. 221
Our ability to estimate project costs accurately, manage project execution efficiently, control costs, and minimize delays is crucial to maintaining healthy profit margins.
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.
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.
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.
Partly as a response to our gross loss attributable to certain legacy inventory as detailed in “Financial Information — Our Gross Loss in 2024,” we began formalizing these arrangements by entering into standard distribution agreements with our distributors starting in 2025.
Business · p. 149
This arrangement is similar to the price concession we granted in connection with certain Legacy Inventory in 2023 and 2024.
Business · p. 151
As of the Latest Practicable Date, we had entered into agreements containing price protection terms with 26 distributors.
Net profit for the same periods was HK$79.7 million, HK$126.0 million and HK$81.8 million, respectively.
Summary · p. 2
Our adjusted net profit subsequently decreased to HK$101.6 million in 2025, primarily due to (i) the increase in selling and distribution expenses and administrative expenses associated with the expansion of our business operations; (ii) an increase in net other losses during the year; and (iii) the expansion of our production capacity, including the ramp-up of our Cambodia Facility, which resulted in additional operating costs being incurred ahead of the full utilization of such capacity.
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 overall gross margin was 12.0%, 11.4% and 10.8% in 2023, 2024 and 2025, respectively.
Financial Information · p. 203
we invested in proprietary technology, in particular our YP T-Engine, to enhance operational efficiency, embed structured controls into our workflows and strengthen our service delivery capabilities
Our same-store sales decline rate from 2023 to 2024 was 9.9%, primarily because consumer spending surged in 2023 as foot traffic in malls and commercial areas rebounded after the lifting of COVID-19 restrictions in late 2022.
Business · p. 130
Our same-store sales growth rate from 2024 to 2025 was 10.9%, primarily because we implemented a comprehensive store optimization strategy by closing a number of underperforming self-operated offline stores and reallocating resources to those with stronger operational efficiency in 2024.
Our gross profit margin was 57.2%, 52.2%, 42.1%, 51.3% and 39.9% in 2023, 2024, 2025 and for the three months ended March 31, 2025 and 2026, respectively.
Financial Information · p. 200
The decline in our gross profit margin during the Track Record Period was primarily driven by the increase in revenue from our solutions and their growing proportion in our revenue mix.
Financial Information · p. 200
Accordingly, changes in our revenue mix will affect our future gross profit margin.
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.