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
Notwithstanding the above progress and the improvement in our gross margin performance, we expect to record a net loss for the year ending December 31, 2026.
Summary · p. 15
This is primarily because the gross profit contribution from our equipment sales, operational services and emerging application scenarios is expected to remain insufficient to fully cover our operating expenses, including selling and marketing expenses, administrative expenses and R&D expenses, as we continue to support technology development, customer expansion and overseas market exploration.
At the same time, we had a decrease in sales to smartphone manufacturers, automotive electronics sector and in wafer sales.
Summary · p. 11
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 May 31, 2026, being the end date of our latest consolidated financial statements, and there has been no event since May 31, 2026 that would materially affect the information shown in the Accountants' Report set out in Appendix I to this document.
The net loss for four months ended April 30, 2026 increased compared to four months ended April 30, 2025, primarily due to (i) increased finance costs arising from imputed interest on redemption right liabilities associated with our [REDACTED] financing, and (ii) increased administrative expenses arising from employee compensations and depreciation and amortization.
Summary · p. 13
We expect to record a net loss for the year ending 31 December 2026, primarily driven by continued investment in research and development activities.
Since February 2026, the price of LPG (primarily propane and butane), one of our key raw materials, has been on a continuous upward trend, which is largely correlated with crude oil prices.
Summary · p. 12
Comparing the April 2026 Contract Price (CP) with the same period of last year, the price of propane increased by USD135.0 per ton, representing a year-on-year rise of 22.0%, while butane rose by USD195.0 per ton, equivalent to a year-on-year increase of 32.2%.
Business · p. 154
Taking the above factors into comprehensive consideration, our Company is of the view that the volatility in LPG prices will not cause any material adverse impact on our overall gross profit margin.
While our overall business operations remained relatively stable, we expect to record a slight decrease of our net profit in 2026 compared to 2025, primarily attributable to an expected increase in depreciation costs from our newly constructed production facility.
We expect to record an increase in net loss in 2026, primarily due to (i) the plan to implement a new employee equity incentive plan to align the interests of employees and appeal to skilled professionals, encouraging employees to focus on sustainable financial growth and long-term gains, and (ii) the increase in [REDACTED].
Summary · p. 20
Nevertheless, we are working on gradually decreasing the net losses through management on various expenses.
In 2026, we expect to record increasing net loss, primarily as a result of (1) the share-based compensation expenses recognized prior to the Listing, as the vesting condition of the shares awarded is contingent on the Listing, and therefore no share-based compensation expenses is recognized until the Listing is concluded highly probable in 2026; and (2) the further accrual of interest expense on redemption liabilities in connection with our Pre-IPO Investments, which is expected to adversely affect our financial performance in 2026.
Summary · p. 10
Upon Listing, the redemption rights will be terminated and the related redemption liabilities will be derecognised, and we will no longer recognise such interest expense thereafter.
Based on the management accounts of our Company, we recorded a decline in our financial performance for the three months ended March 31, 2026, primarily due to (i) temporary production interruptions and the deferral of certain customer order deliveries resulting from adjustments to our manufacturing facilities and production arrangements during the first quarter of 2026, including certain manufacturing lines reconfigured from Wuhan, the PRC to Penang, Malaysia and among our production facilities in Malaysia; (ii) supply constraints affecting certain key raw materials, particularly optical chips, which adversely affected our ability to fulfill certain customer orders on schedule; (iii) increased foreign exchange losses arising from exchange rate fluctuations; and
Summary · p. 11
(iv) higher operating expenses associated with our business expansion, including the continued expansion of our workforce and increased depreciation and amortization expenses.
Summary · p. 12
Our Directors have confirmed that there has been no material adverse change in our financial or trading position or prospects since December 31, 2025, which is the end date of our latest consolidated financial statements as set out in “Appendix I — Accountants’ Report” to this document, and up to the date of this document.
We expect that there may be a decrease in net profit for the year ending 31 December 2026, primarily due to (i) an increase in our selling and distribution expenses in 2026 resulting from the planned expansion of sales channels and enhancement of marketing capabilities; (ii) the incurrence of non-recurring Listing expenses recognized in administrative expenses; and (iii) upward pressure on raw material costs driven by fluctuations in market prices.
Financial Information · p. 262
Our Directors confirm that, up to the date of this prospectus, save as disclosed above, there has been no material adverse change in our financial condition, results of operations and operating cash flow, nor has there been any material adverse change in our revenue, cost of sales, gross profit, and gross profit margin since 31 December 2025 (being the date on which the latest audited consolidated financial information of our Company was prepared) and there is no event since 31 December 2025 which would materially affect the information shown in our consolidated financial statements included in the Accountants' Report in Appendix I to this prospectus.
Based on our unaudited consolidated management accounts for the four months ended April 30, 2026 as compared to the same period in 2025, (a) our total revenue increased which was primarily attributable to (i) the gradual materialization of additional production capacity resulting from capital investments in equipment, production lines and intelligent manufacturing upgrades completed during the second half of 2025; (ii) continued growth in downstream customer demand driven by the business expansion of our core customers; and
Summary · p. 17
(iii) a steady improvement in our delivery capabilities, with our sales volume of e-paper display modules increasing from approximately 34.4 million units for the four months ended April 30, 2025 to approximately 56.9 million units for the same period in 2026; and (b) our gross profit and gross profit margin decreased, which was primarily due to the continued depreciation of USD against RMB and the addition of production capacity in the second half of 2025 being in its initial ramp-up phase, during which we adjusted our sales strategy by accepting a relatively larger proportion of orders for products with lower gross profit margins.
We expect to record a significant increase in net loss for the year ending December 31, 2026, primarily due to (i) a significant loss arising from changes in the fair value of preferred shares and other financial liabilities, and (ii) continued investment in research and development as we advance our R&D activities.
Summary · p. 16
Our preferred shares will be re-designated from liabilities to equity upon the automatic conversion of preferred shares into ordinary shares in connection with the completion of the Global Offering.
We expect to record a net loss in 2026, primarily because of the selling and distribution expenses, administrative expenses, research and development costs and finance costs are expected to offset our gross profit.
Summary · p. 18
Our gross margin in the four months ended April 30, 2026 improved compared to the gross margin for the same period in 2025 and for the year ended December 31, 2025.
The rapid growth of our emerging businesses requires significant upfront investments in R&D, manufacturing processes, and product validation, which affected our gross profit margin and net profit margin.
Summary · p. 18
In addition, we also experienced foreign exchange fluctuations in some overseas markets in the first quarter of 2026.
Summary · p. 18
We have implemented various measures to support the resilience of our profitability, including (i) optimizing our product mix and continuing to expand and deepen our overseas markets; (ii) proactively optimizing our cost management and initiating negotiation with our customers in response to the increasing costs pressure; and (iii) scale-up cost-efficiency of our production bases and vertical integration of key components to lower unit manufacturing costs.
Pursuant to MOF & STA Announcement No. 10 (2026), vaccine products are no longer subject to the simplified VAT calculation method at 3% with effect from January 1, 2026. Instead, they are subject to the standard VAT rate of 13%, with input VAT creditable accordingly.
Summary · p. 14
Our Directors confirmed that, up to the Latest Practicable Date, there has been no material adverse change in our financial position since December 31, 2025, and there has been no event since December 31, 2025 that would materially affect the information as set out in "Appendix I — Accountants' Report."
We expect to record a net loss in 2026, primarily due to continued investment in research and development, expansion of our sales and distribution network and ongoing product iteration.
Notwithstanding the foregoing, our Group expects to record a significant increase in net loss for the year ended December 31, 2026.
Summary · p. 22
The expected increase in net loss does not reflect any deterioration in the underlying business performance of our Group, and we expect continued growth in revenue and operating profit for the year ended December 31, 2026.
We recorded net losses during the Track Record Period and expect to continue to incur losses after the Track Record Period in the short term, as we are in the stage of expanding our business and operations in the rapidly growing pan-semiconductor IMSS market and are continuously investing in R&D.
Summary · p. 14
We expect to record an increase in net loss in 2026 primarily due to (i) the increase in R&D and sales expenses to accelerate market penetration; (ii) the non-recurring [REDACTED] expenses; (iii) an increase in expected credit loss provision which is consistent with our expanded revenue base; and (iv) an increase in finance cost.
As a result of the foregoing, our profit for the period decreased by 10.2% from RMB524.3 million for the three months ended March 31, 2025 to RMB470.9 million for the same period of 2026.
Financial Information · p. 239
Our other income and losses, net decreased from a gain of RMB122.6 million for the three months ended March 31, 2025 to a loss of RMB118.1 million for the three months ended March 31, 2026, primarily attributable to the decrease in the fair value of our other financial assets and increase in foreign exchange losses.
Financial Information · p. 238
Our Directors have confirmed that, up to the date of the Prospectus, there had been no material adverse change in our financial, operational or trading position, indebtedness, contingent liabilities or prospects since December 31, 2025, being the end date of the periods reported on in the Accountants’ Report set out in Appendix I to this Prospectus, and there had been no event since December 31, 2025, that would materially affect the information shown in the Accountants’ Report set out in Appendix I to this Prospectus.
We expect a significant increase in loss position for the year ending December 31, 2026, primarily because (i) we anticipate continuing to incur substantial costs and expenses in relation to our R&D activities and sales and marketing initiatives as we proceed with on-going clinical trials or evaluations and further enhance our commercialization capabilities, and (ii) we have incurred, and expect to continue to incur, costs and expenses relating to the Global Offering.
However, we expect our net profit for the year ending December 31, 2026 to substantially decrease as compared to 2025.
Summary · p. 1
The sales volume of our Human TAT for Export Sales was 3.7 million units in the first four month of 2025 and 1.4 million units in the first four month of 2026.
Summary · p. 15
In addition, we expect to begin generating revenue from our newly launched products, including PMSG and veterinary tetanus antitoxin, in 2026, which is expected to partially offset the adverse impact of the foregoing factors on our net profit.