存货规模大幅上升

Our inventories decreased from RMB891.2 million as of December 31, 2023 to RMB714.7 million as of December 31, 2024, primarily due to a decrease in finished goods of RMB106.1 million, which was mainly attributable to the reduction of finished goods in Europe as previously accumulated inventory was gradually sold.

We seek to maintain strict control over inventory turnover days through demand-driven production planning, enhanced inventory lifecycle management and clearance of slow-moving stock, and a multi-layered monitoring and automated early-warning system for real-time control and corrective action.

As of April 30, 2026, RMB656.6 million, or 77.1% of our inventories as of December 31, 2025, had been subsequently utilized or sold.

Our inventories increased by 47.7% from RMB238.1 million as of December 31, 2023 to RMB351.7 million as of December 31, 2024, primarily attributable to (i) an increase in raw materials of RMB25.2 million and work in progress of RMB13.5 million, driven by the expanded production capacity of Phase IV of our domestic production base and the trial production preparations for our Thailand production base; and (ii) an increase in finished goods of RMB74.9 million as we strategically stocked up to meet increased order demand.

Our inventories further increased by 28.5% to RMB452.1 million as of December 31, 2025, primarily attributable to (i) an increase in raw materials of RMB29.1 million as a result of the commencement of commercial production at our Thailand production base, which led to higher PVC procurement in 2025; and (ii) an increase in finished goods of RMB70.5 million due to expanded production capacity from Phase IV of our domestic production base and our Thailand production base.

Our inventory turnover days decreased from 98 days for the year ended December 31, 2023 to 77 days for the year ended December 31, 2024, primarily due to the significant increase in revenue for the year ended December 31, 2024 as a result of the sales increase from current customers and the expansion of customer base, and increased to 101 days for the year ended December 31, 2025, primarily due to PVC stockpiling for the year ended December 31, 2025.

Our inventories and other contract costs further increased to RMB562.3 million as of December 31, 2025, primarily due to (i) an increase in raw materials of RMB80.4 million driven by strategic stockpiling of precious metals in anticipation of price increases and expected growth in future market demand, and (ii) an increase in finished goods of RMB60.2 million in preparation for order deliveries, partially offset by a decrease in contract fulfilment costs of RMB44.3 million due to fluctuations in project progress.

We recorded write-downs of inventories of RMB4.2 million, RMB4.6 million and RMB12.2 million as of December 31, 2023, 2024 and 2025, respectively, which were mainly derived from provisions for inventories identified as obsolete or slow-moving as a result of technological updates, order cancellations and evolving market conditions.

As of March 31, 2026, RMB235.2 million, or 49.5%, of our inventories as of December 31, 2025 had been subsequently sold, consumed or utilized.

Our inventory turnover days increased from 326 days in 2023 to 379 days in 2024, primarily due to lower sales volume in 2024 as compared to the previous year and the acquisition of Spoz, which resulted in higher inventory levels.

We recorded inventory aging of up to one year and relatively long inventory turnover days during the Track Record Period, primarily due to (i) products of our core proprietary brand, HLA, are mainly designed and merchandised based on a selling cycle that typically spans the same selling periods over two consecutive years, which requires advance preparation and stocking of products ahead of each selling season, resulting in inventories being held across multiple seasons;

We recognized inventory impairment of RMB333.1 million, RMB492.8 million and RMB495.0 million in 2023, 2024 and 2025, respectively.

During the Track Record Period, we recognized provision for inventories primarily due to (i) global shortage of semiconductor chips which resulted in heightened procurement costs of such components, (ii) relatively low utilization of our inventories due to the lower sales volume of products than anticipated, and (iii) relatively higher production costs for certain products that had yet reached the mass production stage.

As of March 31, 2026, RMB510.3 million, or 58.3% of our inventories outstanding as of December 31, 2025 had been subsequently sold or utilized.

To minimize the risk of holding obsolete inventory, we adopt a rolling approach to placing orders.

Our inventory increased by approximately 7.9% from approximately RMB140.1 million as at 31 December 2023 to approximately RMB151.1 million as at 31 December 2024, primarily due to the increase in our work-in-progress progress in respect of orders received around the end of FY2024.

Our inventory further increased by approximately 20.3% from approximately RMB151.1 million as at 31 December 2024 to approximately RMB181.8 million as at 31 December 2025, mainly attributable to (i) the increase in our work-in-progress; and (ii) the increase in raw materials held for orders received around the end of FY2025.

Our inventory turnover days decreased from 98 days in FY2023 to 86 days in FY2024, primarily due to the relatively higher opening balance of our inventory of RMB172.8 million as at 1 January 2023.

Our inventories increased from RMB292.5 million as of December 31, 2024 to RMB605.0 million as of December 31, 2025, primarily due to our inventory buildup to support sales growth and the additional stock maintained by our newly established subsidiaries.

Our inventory turnover days increased from 35 days in 2023 to 40 days in 2024 and further to 52 days in 2025.

As of April 30, 2026, RMB310.4 million, or 51.2%, of our inventories as of December 31, 2025 had been subsequently sold.

Our inventories subsequently increased to RMB39.2 million as of December 31, 2025, primarily driven by a large purchase order of medical equipment.

Our inventories turnover days increased to 30 days in 2025, primarily due to higher inventory levels attributable to a large purchase order of medical equipment.

As of April 30, 2026, RMB14.2 million, or 36.4% of our inventories outstanding as of December 31, 2025 had been subsequently utilized or sold.

Our inventories increased by 36.9% from RMB1,037.1 million as of December 31, 2023 to RMB1,420.0 million as of December 31, 2024, and further by 27.3% to RMB1,807.4 million as of December 31, 2025, primarily due to increases in our raw materials, finished goods and work in progress as a result of our business expansion.

Our inventory turnover days decreased from 63.5 days in 2023 to 59.7 days in 2024, and then increased to 63.4 days in 2025.

As of March 31, 2026, RMB1,257.5 million or 67.5% of our inventories as of December 31, 2025 had been subsequently sold or utilized.

Our inventories continued to increase during the Track Record Period due to the gradual rise in our contract fulfillment cost, which was generally in line with the business expansion of GJ AI workforce solutions.

As all of our inventories are expected to be recovered within one year, we did not record any provision for write-down of inventories during the Track Record Period.

Our inventory turnover days increased during the Track Record Period, primarily attributable to our increased inventories balances, which was generally in line with our business expansion.

As of December 31, 2023, 2024 and 2025, our inventories amounted to RMB356.3 million, RMB438.2 million and RMB634.3 million, respectively.

Our Directors are of the view that the provisions made are adequate and that there are no material impairment issues in respect of our inventories.

Our inventory turnover days increased from 81.4 days in 2023 to 98.2 days in 2024 and further to 98.3 days in 2025, primarily due to the increased inventories in transit and stored in our overseas warehouses resulting from the expansion of our overseas sales.

Our inventories increased by 74.5% from RMB53.1 million as of December 31, 2023 to RMB92.6 million as of December 31, 2024, primarily due to (i) the increase in procurement of raw materials, including building up inventory in advance to ensure timely project delivery and supply; and (ii) an increase in projects under execution but not yet reaching revenue recognition milestones, resulting in the accumulation of related project implementation costs within inventories.

Our inventory turnover days increased from 94.4 days in 2023 to 148.6 days in 2024, primarily due to (i) advance procurement of certain raw materials to support the delivery of large-scale autonomous driving projects for open-pit mines amid business expansion, and (ii) longer on-site implementation and acceptance cycles for certain projects which involved a high degree of experimentation and customization, resulting in a higher inventory balance at year end.

We have made proper inventory provision in the Track Record Period and fully considered the subsequent sales.

Our inventories increased by 27.2% from RMB77.0 million as of December 31, 2023 to RMB98.0 million as of December 31, 2024, and further increased by 40.0% to RMB137.2 million as of December 31, 2025.

Our inventory turnover days (calculated as the average balance of the opening and closing net value of inventories in a period divided by cost of sales for the same period multiplied by 365 days) were 101, 110 and 135 days, respectively, for 2023, 2024 and 2025.

As of March 31, 2026, RMB28.4 million or 20.7% of the outstanding balance of our inventories as of December 31, 2025 had been recognized as costs of sales.

Our inventories significantly increased from RMB2,816.6 million as of December 31, 2023 to RMB3,415.4 million as of December 31, 2024 and to RMB3,890.8 million as of December 31, 2025.

Our inventory turnover days increased from 103 days in 2023 to 118 days in 2024 and to 172 days in 2025, primarily due to (i) our establishment of overseas manufacturing facility which resulted in a temporary build-up of finished goods during the ramp-up period; and (ii) our strategic decision to increase the availability of local inventories as we expand our overseas sales and establish self-operated sales channels to improve the promptness of our product delivery, improve our customer service capabilities and gain competitive advantages in overseas markets.

As of March 31, 2026, RMB1,370.5 million, or 34.5% of our inventories as of December 31, 2025, had been used, consumed or sold subsequent to December 31, 2025.

These increases were primarily driven by higher production resulting from the acquisition of Source Photonics and GMD, partially offset by an increase in provision for impairment from RMB1,010.7 million as of December 31, 2024 to RMB1,249.6 million as of December 31, 2025.

During the Track Record Period, our inventory turnover days decreased from 2023 to 2024, in line with our growth. Our inventory turnover days relatively stable from 69 to 70 from 2024 to 2025.

As of March 31, 2026, 84.0% of our total inventories as of December 31, 2025, or RMB8,545.1 million, were utilized or sold. Based on our assessments during the Track Record Period, we have made adequate provisions for our inventories to account for potential uncertainties.

Our inventories increased by 34.8% from RMB645.0 million as of December 31, 2024 to RMB869.4 million as of December 31, 2025, primarily due to an increase in raw materials driven by the increased market prices and our strategic stockpiling, partially offset by the decrease of goods in transit and finished goods as the fulfillment of orders on hand.

In 2023, 2024 and 2025, we recorded write-down of inventories to net realizable value amounting to RMB30.4 million, RMB40.7 million and RMB49.8 million, respectively.

As of March 31, 2026, RMB429.7 million, or approximately 46.7% of our inventories as of December 31, 2025 had been utilized or sold.

Such increase was primarily attributable to the rapid expansion of our business scale and production capacity in response to the strong market demand. In particular, we increased our procurement of raw materials and maintained higher inventory levels to support anticipated sales growth and ensure timely delivery to customers.

Our inventories turnover days increased from 36 days in 2023 to 71 days in 2024, and further increased to 104 days in 2025, mainly reflecting the significant increase in our inventory levels in preparation for growing customer demand, expansion of production capacity, and strategic stocking of raw materials to ensure timely delivery and supply chain stability.

As of March 31, 2026, RMB265.2 million, or 46.9% of our inventories outstanding as of December 31, 2025, had been sold or utilized.

Our inventories increased by 10.9% from RMB175.6 million as of December 31, 2024 to RMB194.7 million as of December 31, 2025, primarily due to (i) higher raw materials and goods in transit to support production expansion, and (ii) advance stocking of electronic yarn in preparation for scheduled furnace maintenance in 2026, partially offset by lower finished goods inventory due to strong sales demand.

Our inventory turnover days continued to decrease from 119 days in 2023 to 106 days in 2024, then to 89 days in 2025, primarily due to strong market demand, which led to increased sales volume and faster inventory turnover.

Our management regularly reviews inventory to identify slow-moving items, obsolescence or declines in market value, and makes write-downs when net realizable value falls below cost.

Our inventories further increased to RMB137.5 million as of December 31, 2025, primarily attributable to our acquisition of Shanghai Celludye completed on August 31, 2025, which contributed substantial inventories of ink and colorants related to its principal business.

Our inventory turnover days significantly increased to 120.7 days in 2025, primarily due to acquisition of Shanghai Celludye, which substantially increased our inventory level at the year end.

As of March 31, 2026, RMB95.8 million, or 69.4% of our inventories as of December 31, 2025, had been used, consumed or sold.

December 2024, primarily due to (i) an increase of approximately RMB3.2 million in raw materials, and (ii) an increase of approximately RMB19.4 million in finished goods as we stocked more finished goods to meet the demand of our rapidly growing branded business, where we experienced strong sales growth in FY2024.

Our inventory turnover days increased from approximately 62.5 days in FY2023 to approximately 68.0 days in FY2024, and further increased to approximately 73.0 days in FY2025, primarily due to our increased sales throughout the Track Record Period, in particular, we stocked more finished goods to meet the demand of our rapidly growing branded business.

In FY2023, FY2024 and FY2025, we had inventory write-down of approximately RMB0.8 million, RMB0.2 million and RMB0.6 million, respectively.