Hong Kong IPO disclosure precedents · 192 companies, 193 items
deterioration after the track record period (lower revenue or margin, loss of a major customer or supplier, regulatory change), or an expected loss for the current year
As a result of the foregoing, our profit for the period decreased by 6.5% from RMB653.5 million for the six months ended June 30, 2025 to RMB610.8 million for the six months ended June 30, 2026.
Summary · p. 20
These factors were partially offset by (a) an improvement in the gross profit margin of our telecommunication and data infrastructure business from 13.5% for the six months ended June 30, 2025 to 19.0% for the six months ended June 30, 2026, as certain high-margin AI-related orders began to ramp up; and (b) our efforts to optimize our product order mix and increase the proportion of high value-added products.
Summary · p. 20
Our other expenses increased significantly from RMB55.0 million for the six months ended June 30, 2025 to RMB194.5 million for the six months ended June 30, 2026, primarily due to net losses on foreign exchange differences, increased impairment losses on financial assets, and write-down of inventories to net realizable value.
We expect to record a net loss in 2026, primarily due to share-based payment expenses and continued investment in research and development as we further expand our business operations, and listing expenses.
Summary · p. 21
We also expect our financial performance in 2026 to continue to be affected by non-cash changes in the carrying amount of our redemption liabilities.
Our overall gross profit margin decreased from 39.3% for the six months ended June 30, 2025 to 34.3% for the same period in 2026, primarily due to the recognition, upon delivery, of cumulative costs relating to certain loss-making projects during the period, most of which were delivered in the first quarter of 2026.
Financial Information · p. 215
As a result of the foregoing, our profit for the period decreased by 15.1% from RMB44.0 million for the six months ended June 30, 2025 to RMB37.3 million in the six months ended June 30, 2026.
Financial Information · p. 215
Our Directors have confirmed that, up to the date of this Prospectus, there has been no material adverse change in our financial, operational or trading position, indebtedness, contingent liabilities or prospects since March 31, 2026, being the end date of our latest audited financial statements, and there has been no event since March 31, 2026 that would materially affect the information shown in the Accountant’s Report set out in Appendix I.
We expect a net loss in 2026 primarily due to expected increases in (i) R&D expenses in relation to our pipeline drugs; and (ii) expenses in connection with the [REDACTED] incurred in 2026.
Our loss for FY2026 is expected to continue, mainly due to (i) an increase in our general and administrative expenses, driven by our Listing expenses; and (ii) an increase in our research and development expenses.
Summary · p. 12
Our Directors confirm that, up to the date of this prospectus, there has been no material changes to our business model and the general economic and regulatory environment in which we operate, there has been no material adverse change in our financial or trading position or prospects since 31 March 2026, being the date of the latest audited consolidated financial position of our Group as set out in the Accountants' Report in Appendix I to this document.
We expect that there will be a significant increase in our net loss in 2026, primarily due to (i) an increase in research and development expenses including professional services expenses to be paid to clinical service providers, and costs of purchasing materials and consumables to be used in clinical trials in preparation for the planned commencements of multiple Phase III clinical trials, and (ii) an increase in staff costs, mainly driven by an increase in share-based compensation expenses arising from the share-based compensation granted in November 2025.
Our Directors confirm that up to the date of this prospectus, there had been no material adverse change in our financial, operational or prospects since March 31, 2026, being the latest balance sheet date of our consolidated financial statements as set out in the Accountants’ Report in Appendix I to this prospectus.
Summary · p. 13
Nevertheless, we expect our net profit for 2026 to decrease as compared with 2025, primarily due to equity-settled share-based payments and listing expenses.
Based on the unaudited management accounts of our Group, (i) our revenue for the month ended 31 July 2026 moderately decreased as compared with the corresponding period in 2025, which was primarily due to a decrease in the contribution of revenue from our digital intelligence services;
Summary · p. 10
Based on the unaudited management accounts of our Group, (ii) for the month ended 31 July 2026, our number of customers slightly decreased compared to the month ended 31 July 2025; and (iii) our average spending sum of each spending customer remained relatively stable in the month ended 31 July 2026 compared to the corresponding period in 2025.
Summary · p. 10
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 30 June 2026, being the end date of our latest consolidated financial statements, and there has been no event since 30 June 2026 that would materially affect the information shown in the Accountants’ Report set out in Appendix I to this document.
Since May 2025, we observed a negative impact on our net revenues from the U.S. market in the remainder of 2025.
Summary · p. 22
Specifically, we experienced a year-over-year decline in business activity in the Middle East, particularly during the initial few months, which is expected to result in a low single-digit percentage point impact on our net revenues in 2026.
Summary · p. 24
The year-over-year growth rate of our net revenues for the first half of 2026 is expected to be generally in line with that of the first quarter of 2026, while our operating margin for the first half of 2026 is expected to be slightly lower than that of the first quarter of 2026.
In light of the above, we expect to record a loss for the year ending December 31, 2026.
Summary · p. 14
In 2026, we expect the ASP of our existing chip products to further decrease as compared with 2025, primarily due to continued price competition in mature cellular IoT chip categories, customers’ cost optimization requirements and the continuing commercialization cycle of NB-IoT and Cat.1bis products.
Summary · p. 13
Commencing in August 2026, we received formal purchase orders for the EC800L, with orders reaching 120,000 units in the first month of order receipt, laying a solid foundation for volume scaling in the second half of 2026.
We expect to incur net losses for the year ending December 31, 2026, mainly because we expect to continually incur (i) significant research and development expenses, as we will continue to devote resources to develop and enhance our intelligent robotic technologies; (ii) substantial selling expenses, as we continue allocate significant resources in expanding and strengthening our sales network to prepare for global commercial deployment of our products, despite our efforts to drive revenue growth, improve gross profit margin and enhance operating leverage in the year ending December 31, 2026.
Summary · p. 13
Our net losses for the year ending December 31, 2026 will also be affected by changes in the carrying amount of redemption liabilities.
We expect to record a net loss for the year ending December 31, 2026, which is primarily due to our expectation that significant research and development costs and administrative expenses will be further incurred.
We anticipate that our net profit may decline for the year ending December 31, 2026 compared with 2025, primarily attributable to an expected decrease in revenue contribution from our acoustic enhancement materials as well as an expected increase in share-based payments and [REDACTED] expenses, partially offset by growth in other product categories.
Summary · p. 13
According to Frost & Sullivan, the potential decline in revenue contribution from acoustic enhancement materials is primarily attributable to expected lower shipments of certain Android smartphone brands, reflecting cyclical changes in downstream industries.
Summary · p. 13
The slowdown of consumer electronics industry in 2026 may adversely affect our revenue and profitability in the short term.
We expect to record a net loss for the year ending December 31, 2026, primarily due to
Summary · p. 17
(i) our continued investment in research and development to advance the development and enhancement of our AI-related technologies and solutions, which resulted in increased research and development expenses; and (ii) increased sales and marketing expenses as we continued to expand our business and market presence.
Summary · p. 17
For the six months ended June 30, 2025 and 2026, our adjusted net loss (non-IFRS measures) increased by 34.9% from RMB42.1 million to RMB56.8 million, primarily reflecting our increased investment in research and development and selling and distribution activities as we continued to expand our business.
our Directors expect to record net loss of approximately RMB21.4 million in 2026, primarily due to the increased [REDACTED] in 2026.
Financial Information · p. 260
After excluding the [REDACTED], we expected to record an adjusted net profit of approximately RMB6.9 million in 2026.
Financial Information · p. 260
Therefore, our Directors are of the view, and nothing has come to the attention of the Sole Sponsor to cast doubt on such Directors’ view, that the Company’s business is sustainable notwithstanding the forecast net loss in 2026.
In April 2026, we invested in certain listed securities and recorded a significant fair value gain as of the Latest Practicable Date.
Summary · p. 11
As a result, even if our revenue continues to grow in 2026, our net profit and net profit margin might decline in 2026.
Summary · p. 11
Our Directors confirm that, up to the date of this document, except for the foregoing, there has been no material adverse change in our business, financial condition and results of operations since March 31, 2026, which is the end date of the period reported on in the Accountants’ Report in Appendix I to this document, and there is no event since March 31, 2026 which would materially affect the information as set out in the Accountants’ Report in Appendix I to this document.
We expect to incur an increase in net loss for the year ending December 31, 2026, which is primarily due to our expectations that we will continue to incur significant research and development expenses, administrative expenses, including increase in expenses incurred in relation to the [REDACTED], and other expenses in relation to our ongoing operations.
Summary · p. 17
After performing due diligence work which our Directors consider appropriate and sufficient and after due and careful consideration, our Directors confirm that there has been no material adverse change in our business, financial condition and results of operations since May 31, 2026, being the latest balance sheet date of our consolidated financial statements in the Accountants’ Report set out in Appendix I to this Document, and up to the date of this Document.
We expect to continue to record net losses in 2026, primarily due to our ongoing investments in research and development, administrative expenses associated with business expansion and organizational build-out, customer program ramp-up and other initiatives to support long-term growth and scale-up of our business.
Summary · p. 19
We have maintained robust growth in business operations and financial results since May 31, 2026 and up to the Latest Practicable Date.
Notwithstanding the expected improvement in our operating performance, our net profit/loss position for 2026 will be affected by non-cash share-based compensation expenses, the amount of which may fluctuate depending on the fair value of the underlying equity interests, continued investment in research and development expenses and [REDACTED] expenses.
Summary · p. 19
Accordingly, we anticipate to record a net loss for the year ending December 31, 2026.