Our financial assets at fair value through profit or loss increased by 86.5% from RMB1,476.5 million as of December 31, 2022 to RMB2,754.1 million as of December 31, 2023, while decreased by 28.5% to RMB1,968.1 million as of December 31, 2024, reflecting our liquidity management decisions.
Financial Information · 第 389 页
Our investment strategy related to such products focuses on minimizing the financial risks by reasonably and conservatively matching the maturities of the portfolio to anticipated operating cash needs, while generating desirable investment returns.
Financial Information · 第 389 页
In respect of the valuation of level 3 financial instruments of wealth management products, equity instrument investments, derivatives, hedged items and etc., with reference to the guidance under the "Guidance note on directors' duties in the context of valuations in corporate transactions" issued by the SFC in May 2017 applicable to directors of companies listed on the Stock Exchange, our Directors adopted the following procedures:
Our financial assets at FVTPL decreased from approximately RMB100.4 million as at 31 December 2022 to approximately RMB30.8 million as at 31 December 2023, representing a decrease of approximately RMB69.6 million, mainly due to our payments for land use right and construction fees for tailings pond by using the bank balances and cash redeemed from the financial products we invested in 2023.
Financial Information · 第 324 页
With regards to the purchase and redemption of financial products, we have formulated an investment policy of diversifying risks and generating steady returns on the premise of ensuring the safety of fund.
Financial Information · 第 324 页
Investments in financial products could be made when we have surplus cash that is not required for our short-term working capital purposes.
Our financial assets at fair value through profit or loss including current and non-current components, represent our investment in funds and a U.S. licensed digital asset company.
Financial Information · 第 446 页
Our non-current financial assets at fair value through profit or loss decreased from HK$447.6 million as of December 31, 2023 to HK$388.4 million as of December 31, 2024, attributed to the decrease of unlisted investment — common share from HK$447.6 million as of December 31, 2023 to HK$388.4 million as of December 31, 2024, mainly due to the fair value change driven by the portfolio's subsequent financing activities.
Financial Information · 第 447 页
No more than 50% of the portfolio may be invested in any single instrument type in general, excluding government securities and bank deposits.
Our fair value losses on equity investments in unlisted entities were RMB46.1 million, RMB78.4 million, RMB159.3 million, RMB134.8 million and RMB26.2 million in 2022, 2023 and 2024 and in the six months ended June 30, 2024 and 2025, respectively.
Financial Information · 第 321 页
We invested in these unlisted companies that are complementary to our existing business in order to enhance our competitive position and improve our long-term profitability.
上海卓越睿新数码科技股份有限公司SHANGHAI ABLE DIGITAL SCIENCE&TECH CO., LTD.02687.HK
银行理财产品投资及其公允价值变动
Our financial assets at fair value through profit or loss comprised of investments in wealth management products issued by banks.
Financial Information · 第 283 页
Our financial assets at fair value through profit or loss decreased from RMB48.0 million as of December 31, 2024 to nil as of June 30, 2025, primarily because we had redeemed all of our wealth management products to fund our working capital.
Financial Information · 第 283 页
With regards to the purchase and redemption of wealth management products, we have formulated the investment policy of diversifying risks and generating steady returns on the premise of ensuring the safety of fund.
Our financial assets measured at fair value through profit or loss (current) primarily consists of structured deposits with low risks, primarily to generate additional returns on cash reserves, while ensuring liquidity and capital preservation.
Financial Information · 第 293 页
We primarily invest in financial products issued by major commercial banks in mainland China with low risks and a short-to-mid-term.
Financial Information · 第 293 页
After Listing, our investments in financial products will be subject to compliance with Chapter 14 of the Listing Rules.
Our financial assets at fair value through profit or loss represent our investments in wealth management products with maturity less than three months, all of which were liquid structured deposits issued by reputable commercial banks in China with guaranteed principal and variable returns tied to the performance of certain underlying financial assets.
As at 31 December 2022, 2023, 2024 and 31 August 2025, our financial assets measured at fair value through profit or loss amounted to RMB20.52 million, RMB15.75 million, nil and RMB60.10 million, respectively.
Financial Information · 第 353 页
As at 31 December 2022, 2023, 2024 and 31 August 2025, our financial assets measured at fair value through other comprehensive income amounted to nil, RMB10.01 million, RMB10.17 million and nil, respectively.
Financial Information · 第 342 页
In general, we only permit investments in low-risk and refundable wealth management products issued by qualified financial institutions.
Our financial assets at fair value through profit or loss (“FVTPL”) consisted of wealth management products.
Financial Information · 第 384 页
Our financial assets at FVTPL increased from nil as of December 31, 2024 to RMB699.8 million as of May 31, 2025, primarily due to the purchase of new wealth management products in the five months ended May 31, 2025.
Financial Information · 第 384 页
We primarily invest in short-term and low-risk wealth management products issued by reputable financial institutions to ensure controllable risk exposure from our investments.
中伟新材料股份有限公司CNGR Advanced Material Co., Ltd.02579.HK
结构性存款等金融资产投资
As of December 31, 2024, we had current portion of financial assets at fair value through profit or loss, which consisted of structured deposits of RMB2,012.2 million.
Financial Information · 第 322 页
We have also established internal policy to safeguard our exposure to investment risks in connection with the purchase of cash management products.
Our financial assets at FVTPL primarily represent our investments in wealth management products and a listed company.
Financial Information · 第 461 页
Our fair value changes of financial assets at FVTPL were gain of RMB43.0 million in 2023 and loss of RMB61.8 million (US$8.6 million) in 2024, primarily as a result of the share price fluctuation of equity investments held by us in 2024.
Financial Information · 第 440 页
Our fair value changes of financial assets at FVTPL increased from RMB4.5 million for the six months ended June 30, 2024 to RMB23.2 million (US$3.2 million) for the six months ended June 30, 2025, primarily as an increase in our balance of wealth management products.
We recorded other expense — net, of US$15.5 million in 2024, as compared to other income — net of US$1.4 million in 2023, primarily attributable to fair value changes of our equity securities investments.
Financial Information · 第 512 页
We recorded other expense — net, of US$2.0 million for the six months ended June 30, 2025, as compared to other income — net of US$3.0 million for the six months ended June 30, 2024, primarily attributable to fair value changes of our equity securities investments and foreign exchange gains (losses).
Financial Information · 第 512 页
Accordingly, the reconciliation includes an expense recognition difference in the consolidated statements of profit or loss and other comprehensive income of US$3.2 million, US$8.1 million, US$16.1 million, US$5.2 million and US$13.8 million for the years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2024 and 2025, respectively.
Our financial assets measured at fair value through profit or loss increased from RMB1,133.6 million as of December 31, 2023 to RMB4,048.7 million as of December 31, 2024, primarily due to the increase in structure deposits.
Financial Information · 第 349 页
Our investment strategy prioritizes liquidity, safety and returns to ensure the availability of funds while maintaining a conservative risk profile.
Our financial assets at fair value through profit or loss consist primarily of wealth management products and preferred shares investments in unlisted entities.
Financial Information · 第 402 页
The decrease from RMB144.9 million as of December 31, 2023 to RMB127.2 million as of December 31, 2024 was mainly due to the fair value change of RMB13.8 million of our investment in an unlisted company, which was attributable to its operating results not meeting expectations.
Financial Information · 第 402 页
We have a comprehensive internal control system for investments, and the investment decision-making process is cautious and prudent.
We recorded net realized and unrealized gains on financial assets at FVPL and amortized cost of RMB677.9 million in 2022 and net realized and unrealized losses on financial assets at FVPL and amortized cost of RMB270.3 million in 2023, primarily due to (i) an increase in investment losses from the settlement of US dollar and Euro forward currency contracts in 2023 and (ii) a decrease in interest income, primarily because certain investment funds matured in 2023.
Financial Information · 第 412 页
We recorded fair value gains on financial assets at FVPL and derivatives financial instruments, net of RMB263.5 million in the four months ended April 30, 2024 and fair value losses on financial assets at FVPL and derivatives financial instruments, net of RMB503.6 million in the same period in 2025, primarily due to the fair value changes in Euro, Japanese Yen and Brazilian Real forward currency contracts.
Our total current assets increased from RMB781.3 million as of December 31, 2022 to RMB1,003.0 million as of December 31, 2023, primarily due to (i) an increase of RMB140.2 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; and (ii) an increase of RMB90.0 million in deposits with a bank with original maturity date over three months, because we purchased large certificates of deposits with a term of three years to enjoy their relatively high interest rates; and (iii) an increase of RMB28.1 million in our trade and other receivables due to increases in trade receivables, deposits and value-added tax recoverable in line with the increase in our sales and growth of our business.
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.
Financial Information · 第 437 页
Other net loss and income primarily includes (i) investment income from financial assets measured at FVPL, which represents income from our structured deposits; (ii) the loss and gains on the disposal of property, plant and equipment and right-of-use assets; (iii) net fair value changes of financial assets measured at FVPL; and (iv) termination cost of purchase contract for land use right.
Our current financial assets at fair value through profit or loss represent wealth management product.
Financial Information · 第 330 页
We primarily invest in wealth management products with relatively low risks and the proposed investment must not interfere with our daily operation and business prospects.
Financial Information · 第 330 页
Based on the aforesaid procedures, the Directors are of the view that the valuation analysis is fair and reasonable, and our financial statements are properly prepared.
Our financial assets at FVTPL increased to RMB235.0 million as of December 31, 2024, and further increased to RMB261.6 million as of May 31, 2025, because we increased our investments in financial instruments with a diversified portfolio.
Financial Information · 第 412 页
The purchase of wealth management products by us was primarily intended to optimize returns on our idle cash balances.
Financial Information · 第 412 页
We believe we have a minimized risk exposure from our investments and primarily invest in relatively low-risk wealth management products.
Our other net income primarily consists of (i) government grants; (ii) investment income rising from the fair value changes of our wealth management products; (iii) VAT and other tax refund, which mainly represent additional deduction of input VAT; (iv) interest income on bank balances and time deposits; and (v) net gains on disposal of property and equipment in relation to the disposal of obsolete products.
Financial Information · 第 431 页
The fluctuation in our time deposits with banks during the Track Record Period was primarily due to our investment management strategy, where we continuously monitor our investment portfolio of wealth management products and time deposits with banks to fully utilize our spare funds.
Financial Information · 第 450 页
Our other net income decreased by 18.2% from RMB6.5 million for the five months ended May 31, 2024 to RMB5.3 million for the five months ended May 31, 2025, mainly due to a decrease of RMB2.3 million in investment income from our investments in wealth management products, as we redeemed part of our wealth management products upon maturity in January 2025.
During the Track Record Period, our financial assets at fair value through profit or loss represented wealth management products that we purchased from creditworthy commercial banks in mainland China.
Financial Information · 第 465 页
Our financial assets at fair value through profit or loss decreased by 64.0% from RMB306.8 million as of December 31, 2023 to RMB110.6 million as of December 31, 2024, primarily due to the maturity and redemption of some of our wealth management products.
Financial Information · 第 466 页
In practice, we generally limit our purchases to low-risk and short-term products which are redeemable on demand from reputable commercial banks.