Our mining activities need to be conducted considering the unique weather conditions of Xizang to optimise operational efficiency and production scheduling.
Business · p. 198
Winter, spanning from November to March or April, presents extreme cold, with ground freezing or being covered in snow, which increases extraction difficulties and costs, making it generally unsuitable for large-scale mining operations.
Business · p. 198
In particular, we customarily resume operations in April; however, adverse weather conditions delayed the 2024 resumption until May.
In general, the fourth quarter is the peak season, mainly driven by (i) the year-end rush for grid connection of energy storage projects in the PRC; and (ii) higher electricity demand during the winter season in overseas markets, which increases the demand for household energy storage.
We experience seasonality in our business, primarily because of seasonal fluctuations in customer procurement demand.
Business · p. 175
Given seasonal concentration of industrial activities and Chinese industrial enterprises’ general procurement pattern, our customers’ demand in the procurement of industrial products is typically the highest in the fourth quarter of each calendar year and the lowest in the first quarter.
Our results of operations are exposed to seasonal fluctuations.
Business · p. 195
Specifically, our digital educational content services and products are more affected by seasonality, primarily due to (i) this segment accounting for the majority of our revenue and profit, with revenue typically recognised in the second half of the year, and (ii) its cost structure mainly comprising fixed staff salaries, which are incurred evenly throughout the year regardless of revenue recognition, which collectively lead to more noticeable fluctuations in gross profit margin across different periods.
Business · p. 195
For example, from July to September 2025, we delivered an aggregate of 1,908 digital courses and 1,833 knowledge graphs, respectively, in line with the seasonal delivery cycle typical in our industry.
We experience seasonal fluctuations in our revenue and results of operations.
Business · p. 293
We have historically experienced, and expect to continue to experience, accelerated revenue generation, especially our sales of self-manufactured SiC epitaxial wafers which accounted for a majority of our revenue, in the second half of a particular year as compared to the first half of that year, except in 2024 in view of the relatively intensive global trade tensions.
Business · p. 293
The accelerated revenue generation in the second half of a year is mainly attributable to the more intensive close-to-year-end promotional activities for sales of products held in the industries and sectors to which our SiC epitaxial wafers are ultimately applied, which leads to a larger purchase volume in the second half of a year.
Our business performance can be affected by seasonality.
Business · p. 226
According to F&S report, the third quarter is a typical peak season for the mechanical massage services market, as various consumption scenarios such as commercial complexes and airports experience increased foot traffic due to the summer vacation.
Business · p. 226
Conversely, the fourth quarter represents a typical off-peak season for the mechanical massage services market, as the heavy clothing worn in winter affects the massage experience, and some consumers would find it inconvenient to remove coats in public, which would lead to a decrease in demand for mechanical massage services.
Generally, our business partners spend more on performance-based marketing in the fourth quarter of the year, as retail companies conduct most sales in the fourth quarter.
Business · p. 200
For instance, our revenue from Yangxiaomie was RMB45.4 million for the first three months ended March 31, 2023 and RMB60.1 million for the last three months ended December 31, 2023.
We generally experience higher sales of baby diapers and baby pants during the rainy season in Africa, which usually occurs in around May to October, as consumers tend to use these products more frequently to maintain hygiene and dryness in humid weather and tend to stock up these products due to the inconvenience of transportation during the rainy season.
In general, our vehicle sales typically peak in the fourth quarter, which is a traditional peak season for the automotive industry, mainly due to nationwide auto shows and increasing vehicle purchases near year end.
Historically, we have consistently recorded higher revenue in the second half of the year compared to the first half of the year.
Business · p. 323
We expect that the impact of seasonality on our business to remain in the future.
Business · p. 323
The increase in trade and bills receivable turnover days from 2024 to the six months ended June 30, 2025 was mainly due to seasonal effects, as revenue in the first half of the year is less than in the second half of the year, resulting in a shorter accounts receivable turnover period in the first half of the year than in the full year.
During the Track Record Period, we typically recorded higher revenue and cost of sales in the second half of each year.
Financial Information · p. 333
These customers generally initiate projects in the first three quarters of the year and complete contracts in the second half, based on their business plans and the progress of our solution development and deployment, which, according to Frost & Sullivan, aligns with industry practice.
Our financial condition and results of operations are subject to fluctuations during holiday and festival seasons.
Business · p. 313
We typically have increased sales before and during the holiday seasons, festivals and events. As a result, we generally record higher revenue during these periods.
Financial Information · p. 400
Our total current assets increased from RMB1,154.4 million as of June 30, 2025 to RMB1,189.5 million as of August 31, 2025, mainly due to (i) an increase of RMB210.5 million in financial assets measured at FVPL, primarily because we invested in structured deposits issued by banks in the PRC, which had no fixed or determinable returns; (ii) an increase of RMB73.3 million in inventories, mainly due to the procurement in preparation for the sales during the mid-autumn festival; and (iii) an increase of RMB70.9 million in trade and other receivables, primarily due to the increase of trade receivables from franchisees.
Sales in winter tend to be lower, mainly due to the impact of cold weather and the Spring Festival holidays, when construction activities decrease.
Business · p. 291
However, with the arrival of spring and the rise in temperature, construction activities gradually increased, and many projects were either restarted or accelerated, typically resulting in an increase in sales.
Specifically, we generally experience an increased revenue during special promotional events on major e-commerce platforms in the fourth quarter of a year.
Business · p. 246
For example, our revenue and SaaS billings were RMB421.0 million and RMB599.0 million, respectively, in the first half of 2024, accounting for 46.3% and 46.0% of our total revenue and SaaS billings in the full year 2024.
Business · p. 246
In addition, we recorded operating cash inflow of RMB1.9 million in the first half of 2024, as compared to operating cash inflow of RMB279.2 million in the full year 2024.
We typically record higher revenue in the second half of the year attributable to increased purchases from hotel customers in preparation for the National Day holiday, Christmas and New Year, which is in line with the peak period of the hotel industry.
Business · p. 336
If seasonal demand is lower than our expectation, we could be left with excess inventory, higher working capital and liquidity requirements, as well as the risk of impairment losses on our inventory.
Our delivery of solutions typically increase in the second half of the year, which is generally in line with the trend of sales volume of passenger vehicles in China according to CIC.
Business · p. 297
We recorded revenue of RMB466.4 million in the fourth quarter of 2022 and RMB755.4 million in the fourth quarter of 2023, representing 38.3% and 50.5% of the total revenue of 2022 and 2023, respectively.
Financial Information · p. 405
Our adjusted net loss margin (non-IFRS measure) was 21.8% for the five months ended May 31, 2025, which is higher than the adjusted net loss margin for the full year of 2024, primarily due to the seasonal fluctuations in demand for our solutions.
We generally record higher sales revenue from ceremonial and festival events such as Mid-Autumn Festival, Chinese New Year, PRC National Day holiday, Valentine’s Day and other national holidays, which are typically associated with Chinese tradition of gift-giving.
Business · p. 383
As a result of these fluctuations, comparison of sales and operating results from different periods in different financial years may not be relied on as indicators of our performance.
Our passenger vehicles sales generally decline over January and February, particularly around the Chinese New Year, and gradually pick up over spring and summer. Passenger vehicles sales generally culminate in the last quarter of a calendar year, which is traditionally an important sales season for the automotive industry, mainly due to nationwide auto shows and increasing vehicle purchases near year end.
Consequently, during the Track Record Period, we typically recorded higher sales in the second and fourth quarters of the calendar year.
Business · p. 280
As a result, comparisons of our sales and results of operations across different periods within a financial year may not provide a reliable basis for assessing our performance.