存货规模大幅上升

Our inventories, net of provision, increased by 66.9% from RMB85.5 million as of December 31, 2024 to RMB142.7 million as of December 31, 2025, primarily due to our strategic stockpiling in response to anticipated customer demand and our enlarged business scope.

In 2023, 2024, 2025 and the four months ended April 30, 2025 and 2026, we had inventory write-down of RMB19.3 million, RMB7.5 million, RMB6.3 million, RMB0.3 million and nil, respectively.

The net amount of inventories aged over one year as a proportion to the total net amount of inventories decreased from 69.8% as of December 31, 2023 to 38.6% as of December 31, 2024, and further to 17.9% as of December 31, 2025 and remained relatively stable at 18.1% as of April 30, 2026.

Our inventories increased from RMB204.7 million as of December 31, 2023 to RMB272.7 million as of December 31, 2024, primarily due to an increase in finished goods of RMB75.6 million

Our inventories turnover days increased from 88 days in 2023 to 101 days in 2024, and further increased to 173 days in 2025, consistent with the increase in our inventory balances resulting from production capacity expansion and advance stocking, as well as weaker demand for pharmaceutical glass packaging in 2025.

As of December 31, 2023, 2024 and 2025 and June 30, 2026, our provision for impairment of inventories amounted to RMB8.5 million, RMB11.9 million, RMB13.6 million and RMB15.1 million, respectively.

Our inventories significantly increased to RMB618.8 million as of December 31, 2025 and further to RMB780.1 million as of March 31, 2026, primarily attributable to the increase of finished goods and raw materials as a result of our strategic storage of materials.

As of December 31, 2023, 2024 and 2025 and March 31, 2026, the balance of write down of inventories amounted to RMB207.1 million, RMB283.0 million, RMB279.0 million and RMB256.9 million, respectively.

Our inventory turnover days subsequently increased to 91 days in 2025 and 150 days for the three months ended March 31, 2026, primarily resulted from our strategic accumulation of raw materials and finished goods.

Our inventories, net of impairment increased from RMB54.5 million as of December 31, 2023 to RMB85.3 million as of December 31, 2024 and further to RMB99.7 million as of December 31, 2025, in line with our business growth and as a result of the Acquisition.

Our inventory turnover days decreased from 205.8 days in 2023 to 123.6 days in 2024, to 80.1 days in 2025, and further to 64.1 days in the six months ended June 30, 2026, primarily due to our enhanced inventory management and supply chain management.

As of July 31, 2026, approximately RMB30.5 million, or 32.4% of our inventories as of June 30, 2026, had been subsequently consumed or sold.

Our inventories increased by 79.6% from RMB8,902.9 million as of December 31, 2025 to RMB15,986.5 million as of April 30, 2026, primarily due to an increase in raw materials, driven by our strategic inventory build-up to mitigate fluctuations in raw material prices and the growth in our sales scale.

Our inventory turnover days increased from 62.1 days in 2025 to 84.0 days in the four months ended April 30, 2026, primarily due to the increase in our inventory balance as of April 30, 2026, as we maintained higher inventory levels in anticipation of raw material price fluctuations to support our sales.

As of July 31, 2026, RMB14,816.6 million, or 91.0%, of our inventories as of April 30, 2026 had been sold or utilized.

Our inventories further increased to RMB499.1 million as of December 31, 2025 and RMB748.8 million as of June 30, 2026, primarily due to an increase in raw materials, as we anticipated future sales growth and strategically procured key components, such as screens and chips, to mitigate the impact of price volatility and the risks associated with long lead times.

Our inventory turnover days increased to 209 days in 2025 and 313 days in the six months ended June 30, 2026.

As of July 31, 2026, RMB212.3 million, or 28.4% of our inventories as of June 30, 2026 had been utilized or sold.

As of December 31, 2023, 2024, 2025 and June 30, 2026, our inventories amounted to RMB31.8 million, RMB55.7 million, RMB176.3 million and RMB87.0 million, respectively. The increase from 2023 to 2025 was primarily due to the build-up of finished goods inventory, particularly copper concentrates and sulphur concentrates, in anticipation of a growth of demand.

Our inventory turnover days increased significantly from 17.6 days in 2024 to 46.0 days in 2025, primarily due to a substantial build-up of finished goods inventory, particularly copper concentrates and sulphur concentrates, in anticipation of a growth of demand.

As of August 31, 2026, RMB57.7 million, or 65.9%, of our inventory as of June 30, 2026 had been utilized or sold.

Our inventories increased from RMB27.2 million as of December 31, 2023 to RMB52.9 million as of December 31, 2024 and further to RMB59.1 million as of December 31, 2025, primarily driven by our strategic inventory buildup to support continued business expansion.

Our inventory turnover days increased from 33 days in 2023 to 40 days in 2024, primarily because we maintained a higher level of inventories for the production ramp-up of our new products.

As of July 31, 2026, RMB82.8 million, or approximately 96.1% of our inventories as of March 31, 2026 had been subsequently consumed or sold.

Our inventories increased by 33.5% from RMB529.2 million as of December 31, 2023 to RMB706.2 million as of December 31, 2024.

Our inventories increased by 19.4% from RMB980.9 million as of December 31, 2025 to RMB1,171.4 million as of June 30, 2026, primarily attributable to (1) an increase of RMB101.7 million in raw materials; and (2) an increase of RMB100.3 million in work in progress, mainly to support our expanded production activities.

We manage our inventories by aligning procurement and production plans with sales forecasts and confirmed customer orders, adopting supplier consignment arrangements for selected key raw materials, monitoring inventory aging and turnover on an ongoing basis and periodically reviewing and clearing slow-moving inventories.

Our inventories increased by 157.1% from RMB32.1 million as of December 31, 2025 to RMB82.6 million as of June 30, 2026, primarily due to (i) an increase in raw materials of RMB30.5 million, and (ii) an increase in finished goods of RMB17.9 million, reflecting our strategic inventory buildup to support our rapid business expansion and ensure production continuity in preparation for the planned relocation of our production facilities in July and August.

Our inventory turnover days increased from 47 days in 2025 to 65 days in the six months ended June 30, 2026, primarily due to our strategic inventory buildup to support our rapid business expansion and ensure production continuity in preparation for the planned relocation of our production facilities in July and August.

As of July 31, 2026, RMB42.7 million, or 50.4%, of our inventories as of June 30, 2026 had been sold or utilized.

Our inventories further increased by approximately RMB95.2 million from RMB486.2 million as at 31 December 2024 to RMB581.4 million as at 31 December 2025, as we sought to build up our inventories in view of the expansion of our operating scale as reflected in our continuous revenue growth.

our Directors are of the view that sufficient provision for inventories had been made as at the end of each financial year/period during the Track Record Period, and that there exists no material recoverability or impairment issue in respect of our inventories.

As at 31 July 2026, approximately 41.8% of our inventories (before provision) as at 30 June 2026, amounting to RMB246.6 million, had been used or sold.

Our inventories further increased to RMB3,216.6 million as of April 30, 2026, primarily due to the higher levels of raw materials and consumables held by us, driven by increased production volume and rising raw material price.

Our inventory turnover days were 79 days for the four months ended April 30, 2026, primarily due to the increase in inventories from RMB2,515.6 million as of December 31, 2025 to RMB3,216.6 million as of April 30, 2026.

As of July 31, 2026, RMB2,732.8 million, or 83.4%, of our inventories as of April 30, 2026 had been utilized or sold.

Our inventories increased by 64.6% from RMB1,060.6 million as of December 31, 2023 to RMB1,746.0 million as of December 31, 2024, primarily due to an increase of RMB251.1 million in work in progress and an RMB248.9 million increase in raw materials, which were in turn primarily because we strategically increased the procurement of certain raw materials to support our business growth.

Our inventory turnover days were 126.5 days, 127.2 days, 118.9 days and 130.3 days in 2023, 2024, 2025 and the six months ended June 30, 2026, respectively.

As of July 31, 2026, RMB742.4 million, or 23.4%, of our inventories outstanding as of June 30, 2026 had subsequently been consumed or sold.

Our inventories increased from RMB688.6 million as of December 31, 2023 to RMB928.4 million as of December 31, 2024, primarily due to the increase in customer orders during the year and the higher proportion of large projects requiring more materials and longer delivery cycles.

We have conducted an assessment of the net realizable value of our inventories in accordance with applicable accounting standards and did not identify any material inventory impairment during the Track Record Period.

As of June 30, 2026, our contract liabilities of RMB1,127.0 million exceeded our dispatched goods and contract costs of RMB867.3 million, indicating that such fulfillment costs can be funded by customer advances rather than our own working capital.

Our inventories and other contract costs further increased from RMB81.8 million as of December 31, 2025 to RMB107.9 million as of June 30, 2026, primarily due to (i) increases in raw materials and semi-finished products and work in progress to support growing orders for batteries used in wearable devices, coupled with higher purchase prices of key raw materials, and (ii) the recognition of contract fulfilment costs.

Our inventory and other contract cost turnover days increased from 68.6 days in 2025 to 75.7 days in the six months ended June 30, 2026, primarily due to increased inventory stocking in anticipation of customer demand and planned production.

As of July 31, 2026, RMB38.3 million or 35.4% of our inventories and other contract costs as of June 30, 2026 had been subsequently utilized.

Our inventories increased from RMB621.0 million as of December 31, 2023 to RMB787.6 million as of December 31, 2024 and further increased to RMB1,005.0 million as of December 31, 2025, primarily due to an increase in finished goods to meet increased customers’ order demands.

Our inventory turnover days remained relatively stable at 68.8 days, 66.5 days, 67.3 days and 67.9 days in 2023, 2024, 2025 and the six months ended June 30, 2026.

As of July 31, 2026, RMB326.3 million, or approximately 32.9% of our inventories as of June 30, 2026 had been subsequently sold or utilized.

The carrying value of our inventories before provision for impairment losses on inventories increased from RMB527.2 million as of December 31, 2025 to RMB877.5 million as of June 30, 2026, primarily due to (i) our storage of more copper foil products in line with our increased sales, and (ii) the increase in copper prices.

Our inventory turnover days remained stable at 48.1 days in both 2023 and 2024, respectively, while decreased to 43.5 days in 2025 and further to 40.5 days in the six months ended June 30, 2026, reflecting strong market demand for our electrolytic copper foil products during the Track Record Period.

As of July 31, 2026, approximately RMB730.7 million, or 83.3% of our inventories as of June 30, 2026, had been subsequently consumed or sold.

The increase in the balance of our inventories over time generally aligns with our business growth, and the significant increase from December 31, 2025 to April 30, 2026 was mainly driven by the sharp increase in unit cost of key raw materials during this period.

Our inventories turnover days increased significantly to 317.2 in the four months ended April 30, 2026 mainly due to our strategic stockpiling in light of rapid increases in memory product prices, robust market demand and supply chain tensions attributable to the surge in AI infrastructure investments.

As of June 30, 2026, RMB3,790.7 million, or 17.8% of our inventories outstanding as of April 30, 2026, had been subsequently sold.

Our inventories increased by 15.1% from RMB1,311.2 million as of December 31, 2023 to RMB1,509.1 million as of December 31, 2024, further increased by 37.7% to RMB2,078.7 million as of December 31, 2025, and further increased by 20.7% to RMB2,510.0 million as of June 30, 2026, primarily as a result of our increased sales which required increased inventory stocking, as well as our increased self-production and sales of power generator sets in 1H2026.

Inventories were net of a write-down of RMB17.0 million, RMB16.5 million, RMB37.3 million and RMB37.5 million in our consolidated statement of financial position as of December 31, 2023, 2024 and 2025 and June 30, 2026, respectively.

Our average inventory turnover days decreased from 185 days in FY2023 to 168 days in FY2024, further decreased to 142 days in FY2025, and further decreased to 127 days in 1H2026, primarily due to the expanding market demand and higher order volumes, as well as our ongoing enhancements to inventory management based on order forecasts and production plans.

Our inventories further increased by 26.3% from RMB11,791.9 million as of December 31, 2025 to RMB14,897.9 million as of May 31, 2026, primarily attributable to an increase in raw materials, finished goods and work in progress in anticipation of the peak selling season typically occurring in the second quarter of the year, as well as an increased procurement demand from our overseas production bases, including the Texas Base, in line with the expansion of our overseas operations.

Our inventory turnover days remained relatively stable at 34.6 days in 2023 and 33.7 days in 2024, and increased to 46.1 days in 2025.

As of June 30, 2026, approximately RMB12,391.8 million or 82.9% of our inventories as of May 31, 2026 had been consumed.