H2 peak, Q1 CNY dip

As a result of the foregoing, our production volume and sales volume in the first quarter of each financial year were lower than that in other quarters.

Business · p. 154

Therefore, a substantial portion of our sales of robots is recognized as our revenue in the second half of each year.

Financial Information · p. 217

According to CIC, such seasonality is common across the industrial robotics industry and is primarily attributable to the procurement and budget cycles of downstream industrial customers and integration lead times commonly observed in industrial automation procurement behavior.

Financial Information · p. 217

During the Track Record Period, we generally record higher revenue in the second half of the year.

Financial Information · p. 224

Such changes in EV sales may impact customers' manufacturing and battery procurement plan, resulting in the concentration of customers' stocking demand for our lithium-ion battery separators in the second half of the year.

Financial Information · p. 224

Our major customers (such as port operators, logistics parks and large logistics enterprises) generally follow annual budget approval processes and tend to conduct final acceptance and settlement of projects in the second half of the year, particularly in the fourth quarter.

Business · p. 146

As a result, our revenue recognition typically shows a pattern of being higher in the second half of the year and lower in the first half, and we normally have a higher level of inventory in the first half of the year before our products and solutions sold are accepted.

Business · p. 146

Due to this project-centric approach, the timing of revenue recognition can vary significantly across different reporting periods, as revenue is often recognized upon meeting specific project milestones or upon final acceptance by the client.

Business · p. 146

Our business is subject to seasonal fluctuations.

Business · p. 163

Our domestic smart power distribution and utilization business generally sees lower activity in the first quarter.

Business · p. 163

As a result, we expect our revenue and profitability to be slightly lower in the first quarter of each financial year during the Track Record Period.

Business · p. 163

During the Track Record Period, we typically recorded higher revenue and cost of sales in the second half, primarily due to the impact of our customers’ annual budgeting and procurement cycles, as well as holidays in the first quarter.

Financial Information · p. 201

Such fluctuations are seasonal in nature and are not necessarily indicative of our results of operations for the full year.

Financial Information · p. 201

During the Track Record Period, we generally recorded lower revenues for our products and solutions in the first quarter of the year, primarily because certain customers in the PRC and overseas markets may reduce production and operations, or defer procurement and project implementation, during Chinese New Year and Christmas holidays.

Business · p. 143

Typically, demand tends to decline over the first quarter of a calendar year, and gradually pick up over the second quarter of a calendar year.

Business · p. 182

Consequently, the entire process from delivery to acceptance of our electrical switchgear is highly concentrated in the second half of a calendar year, demonstrating strong seasonality.

Business · p. 182

During the Track Record Period, we generally recorded higher revenue in the third and fourth quarters than in the first and second quarters, and our highest revenue were generally recorded in the fourth quarter of the year.

Financial Information · p. 218

During the Track Record Period, we experienced stronger sales during the second half of the financial year, particularly near the end of year, which we believe was due to a substantial portion of our customers who tend to heighten buying activities at certain times of the year, particularly near the end of year.

Financial Information · p. 195

For example, for the year ended December 31, 2025, the Group recorded approximately 36.3% and 63.7% of its total revenue in the first half and second half of the year, respectively.

Financial Information · p. 195

This pattern results in a concentration of recognized revenue in the latter part of the financial year, giving rise to uneven cash flows and period-to-period variability in our operating results.

Business · p. 162

Our financial performance is subject to seasonal fluctuations, primarily driven by the cyclicality of the delivery services.

Financial Information · p. 212

Consequently, the demand for our solutions is higher in the third quarter of the year and lower in the first quarter of the year.

Financial Information · p. 212

Our financial performance is subject to seasonal fluctuations that align with automotive production and sales cycles.

Business · p. 173

This seasonality also affects working capital dynamics, as higher production levels in the second half of the year often lead to increased inventory and trade receivables balances, which may temporarily impact our cash flow and liquidity.

Financial Information · p. 200

Our lithium battery recycling and material recovery business has a stockpiling peak in the fourth quarter with rising demand for used batteries and production scraps prices as upstream suppliers release large volumes of waste materials and downstream enterprises stock up for raw material requirements for the production in the following year.

Business · p. 144

As a result of the foregoing, our production and sales volume in the first quarter of each financial year was lower than that in other quarters.

Business · p. 145

We observed that during the Track Record Period, we experienced peak seasons in terms of sales revenue during the Chinese New Year holiday period, Christmas festive period and Chinese ''Golden Week'' holiday periods in May and October.

Business · p. 159

Our Directors believe that this seasonality pattern is consistent with the overall retail industry in Hong Kong.

Business · p. 159

Our results of operations are affected by seasonal fluctuations in demand for our L2-L2+ and L4 driving solutions, which are primarily driven by the seasonal nature of the automotive industry.

Financial Information · p. 197

As the proportion of revenue from such integrated solutions increases, the revenue concentration in the fourth quarter is expected to be further moderated.

Financial Information · p. 197

Our business is subject to mild seasonality. The first quarters generally account for lower proportion of our annual revenue.

Business · p. 108

In 2023, 2024, and 2025, our revenue for the first quarter accounted for 20.1%, 20.8%, and 24.7% of our total revenue, respectively.

Business · p. 108

We have standing measures to mitigate the impact of seasonality on our sales by timely adjusting inventories and shifting sales and marketing focuses during these periods to compensate for such impact.

Business · p. 108

In general, demand for our driving assistance solutions intensifies during the latter half of the calendar year, surpassing the first half, which aligns with the broader automobile industry patterns, according to CIC.

Business · p. 192

Our results of operations are affected by seasonal fluctuations in demand for our solutions, which are primarily driven by the seasonal nature of the automotive industry.

Financial Information · p. 237

Our trade and notes receivables turnover days increased from 145 days in 2023 to 173 days in 2024, which was primarily due to our overall strong business growth and a stronger seasonality effect in 2024 compared to 2023.

Financial Information · p. 254

Typically, the period from October to January of the following year represents the global peak season for cross-border e-commerce, encompassing major shopping festivals such as "Black Friday" and "Cyber Monday" in the United States, the Christmas shopping season in Europe and pre-Chinese New Year stock replenishment by Chinese merchants.

Business · p. 149

The resulting supply-demand imbalance often drives up air freight rates and leads to a temporary rise in our fulfillment costs.

Business · p. 149

We proactively manage these seasonal and external impacts by securing transportation capacity in advance, flexibly reallocating network resources and optimizing operational scheduling to ensure service stability during peak periods and to mitigate potential disruptions.

Business · p. 150

For instance, our GTV in the first quarter of 2025 accounted for only about 19.1% of total GTV for the year.

Business · p. 138

Historically, we have experienced a decline in both demand and driver availability during the first quarter of each year, particularly around the Chinese New Year holiday, as many people return to their hometowns and there is less overall mobility activities.

Financial Information · p. 223

Accordingly, we typically record higher revenue from our solutions in the second half of the fiscal year, which is in line with the industry norm, according to CIC.

Business · p. 168

The historical seasonality of our business has been relatively mild, but the seasonal trends that we have experienced in the past may not be indicative of our future operating results.

Business · p. 168

As we typically recognize revenue upon acceptance by the customer, we had higher revenue from our solutions in the second half of the fiscal year, which is in line with the industry norm, according to CIC.

Financial Information · p. 204