Our net liabilities increased from RMB2,524.3 million as of December 31, 2023 to RMB3,348.2 million as of December 31, 2024, mainly attributable to (i) a significant increase in contract liabilities of RMB358.4 million, reflecting upfront customer payments as our order intake and project volume expanded; and (ii) an increase in trade and bills payables of RMB196.9 million, generally in line with our increased procurement scale and business growth.
Business · 第 164 页
We operate under a “make-to-order” production model with customer prepayments.
The validity period of prepaid packages is generally 1 to 2 years.
Business · 第 93 页
We have internal control measures to prevent health advisors from selling excessive prepaid packages.
Business · 第 94 页
For FY2024, FY2025 and FY2026, the refund amounts to our customers for their requested refunds were HK$3.7 million, HK$2.7 million and HK$3.9 million, representing 1.4%, 0.9% and 0.9% of our contracted sales in FY2024, FY2025 and FY2026 respectively.
In particular, our contract liabilities, which primarily represent the advances received from customers to deliver our products, increased from RMB354.6 million as of December 31, 2025 to RMB1,736.7 million as of April 30, 2026
Financial Information · 第 261 页
In the four months ended April 30, 2026, our trade and bills receivables turnover days decreased to 23.2 days, primarily as more customers made prepayments to ensure supply in light of the robust market demand driven by AI-related investments.
When consumers top up credits in their membership accounts, such credits become stored value in their membership accounts, and the corresponding amount is deposited into a designated escrow account which we maintain for our franchisees.
Business · 第 141 页
Remaining value in members’ accounts represented the prepaid but not yet consumed amounts, which will never expire or be forfeited and is refundable upon application by consumers and our approval.
Business · 第 141 页
In 2023, 2024, 2025 and the six months ended June 30, 2026, the amount settled through stored value was RMB577.8 million, RMB585.4 million, RMB501.6 million and RMB218.0 million, respectively, accounting for 4.9%, 5.0%, 4.4% and 4.3% of the total revenue for the same periods.
哈尔滨誉研堂中医门诊集团股份有限公司Harbin Yuyantang Traditional Chinese Medicine Outpatient Group Co., Ltd.
预售套餐形成合同负债
Notwithstanding the prepayment nature of such packages, before each medication is consumed, a patient needs to visit the physicians for prescription, and the corresponding contract liabilities are recognized as revenue accordingly.
Business · 第 152 页
Patients are entitled to full refund on unused medications, without time limitations. As a result, there is no forfeiture arrangement between the patients and us.
Business · 第 152 页
This decrease was primarily attributable to a decrease of RMB48.9 million in cash and cash equivalent generated from our operating activities as a result of dividend payments and upfront investments for new medical institutions, as partially offset by a decrease of RMB21.5 million in other payables and accruals relating primarily to payroll and welfare payables and contract liabilities.
These positions were primarily attributable to (i) financial liabilities designated at FVTPL arising from redemption obligations and other special rights attached to Shares with preferred rights, and (ii) the growth of contract liabilities associated with our demand-led sales model, which reflects customer advance payments rather than operating stress.
Business · 第 182 页
This was partially offset by (i) an increase of RMB1,388.1 million in contract liabilities, and (ii) an increase of RMB164.3 million in bank and other borrowings.
Our net current assets increased by 30.3% from RMB97.5 million as at 31 December 2023 to RMB127.1 million as at 31 December 2024 primarily due to (i) the increase in cash and cash equivalents of RMB60.9 million from approximately RMB70.4 million as at 31 December 2023 to approximately RMB131.4 million as at 31 December 2024, and (ii) partially offset by the increase in contract liabilities of RMB15.5 million from approximately RMB23.0 million as at 31 December 2023 to approximately RMB38.5 million as at 31 December 2024.
Financial Information · 第 226 页
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.
山东省环能设计院股份有限公司Shandong Huanneng Design Institute Company Limited
合同负债约2.5亿至3.2亿元
This was primarily driven by our recording of relatively high contract liabilities throughout the Track Record Period, which amounted to approximately RMB283.2 million, RMB317.5 million and RMB251.3 million as at those respective dates.
Financial Information · 第 234 页
These balances will be progressively recognised as revenue over time upon the fulfilment of our performance obligations, and will be settled through the delivery of our services and project milestones rather than through future cash outflows.
The increase in our goods in transit was because, as of 31 December 2025, we were delivering our Multispectral AI Large Model Services of approximately RMB48.8 million to one of our customers.
Financial Information · 第 226 页
The customer has already made a prepayment of an equivalent amount, which has been recorded in our books as one of our contract liabilities.
Financial Information · 第 226 页
As at 30 April 2026, RMB36.7 million, or 41.8% of our inventory balance as at 31 December 2025, had been consumed.
The value of actual products returned to us was RMB324.9 million, RMB831.4 million and RMB1,683.0 million in 2023, 2024 and 2025, respectively, and the increase during the Track Record Period was in line with our fast business and sales growth.
Business · 第 160 页
As of December 31, 2023, 2024 and 2025, the estimated amount of refund liability in relation to product return was RMB19.0 million, RMB44.3 million and RMB99.2 million, respectively, representing 2.1%, 2.5% and 3.6% of our total revenue, respectively.
Business · 第 160 页
During the Track Record Period, differences between estimated and actual returns were not material and were recognised in the same period without retrospective adjustment.
As of the Latest Practicable Date, we had received milestone payments of RMB160.0 million from Zhongmei Huadong under the Huadong Agreement. In aggregate, the total payment received from Zhongmei Huadong was RMB260.0 million as of the Latest Practicable Date.
Business · 第 207 页
The payments from Zhongmei Huadong do not meet the definition of revenue under HKFRS 15 and are recognized as advances for services.
We recorded cash held on behalf of other parties of RMB16.2 million, RMB11.2 million and RMB7.1 million as of December 31, 2023, 2024 and 2025, respectively, mainly due to fluctuations in the volume of related projects.
Financial Information · 第 224 页
Any unremitted amounts are held in a custodial capacity.
Payments made by users for the purchase of user coins and membership subscriptions are initially recorded as contract liabilities.
Business · 第 159 页
As of December 31, 2023, 2024 and 2025, we recorded contract liabilities of RMB65.4 million, RMB87.5 million and RMB95.6 million, respectively, while we recorded revenue of RMB1,033.8 million, RMB2,372.5 million and RMB4,121.7 million in 2023, 2024 and 2025, respectively.
Business · 第 159 页
The contract liabilities as of each period end during the Track Record Period was immaterial compared to the revenue recognized during the same period, and most user coins purchased during each year were consumed within the same year, indicating a rapid turnover of prepaid balances and active user spending behavior.
The membership card balance primarily represents deposits received from consumers on behalf of franchisees. We keep a portion of deposits in a designated escrow account based on relevant regulations, which is subject to regulatory supervision and cannot be used for other purposes.
Business · 第 165 页
When consumers use their prepaid card balances, the corresponding amount is applied to settle future purchases made by the franchisee from us. There is no redemption period for the deposit in our membership cards or prepaid gift cards. We did not record any forfeited income during the Track Record Period.
Specifically, such decrease was mainly driven by (i) an increase in bank loans and other borrowings of RMB524.8 million to support our working capital needs; (ii) an increase in trade and other payables of RMB256.1 million, primarily because we successfully secured more favorable payment terms with certain suppliers by leveraging our economies of scale; and (iii) an increase in contract liabilities of RMB207.5 million, because of increased prepayments from customers, partially offset by an increase in inventories of RMB380.8 million.
As of December 31, 2022, 2023 and 2024 and August 31, 2025, we recorded contract liabilities of RMB46.4 million, RMB78.3 million, RMB117.9 million and RMB143.5 million, respectively, in connection with prepaid packages.
Business · 第 275 页
We have been implementing various measures to manage and control the forfeiture rate, such as proactively reminding customers to use remaining visits and launching a WeChat mini program to allow customers to track their prepaid package entitlements.
In order to provide a convenient settlement method for our members, we allow our members to store a balance of no more than RMB100,000 in their membership accounts.
Business · 第 276 页
We conduct regular reviews of our fund structure to ensure that we have sufficient funds to satisfy patient's requests for settlement or refunds of the stored-value.
an increase of RMB189.6 million in contract liabilities, mainly attributable to the increase in our copper cathode sales
Financial Information · 第 329 页
Our sales of products are usually settled by wire transfer, and we generally require our customers to make 95% payment before the products leave our production facilities and 5% payment within one to two months after shipment.