存货规模大幅上升

Our inventories increased from RMB198.7 million as of December 31, 2023 to RMB360.2 million as of December 31, 2024, primarily due to a significant increase in finished goods because we had completed production according to orders but had not yet delivered the products.

Our average inventory turnover days increased from 77.6 days for 2024 to 89.6 days for 2025 primarily due to the increase in our average inventory balance.

As of April 30, 2026, RMB350.6 million, or 100.0%, of our inventories as of December 31, 2025 had been sold or utilized.

Our inventories increased to RMB7,868.4 million as of December 31, 2025, primarily attributable to increased procurement of raw materials and higher work in progress and finished goods levels in 2025 to support customer orders and production planning amid improving market conditions.

Our inventory turnover days were 274.0 days, 233.6 days and 234.2 days in 2023, 2024 and 2025, respectively.

This approach contributes to longer inventory turnover days but represents a deliberate and controlled operational strategy, enabling us to navigate industry cycles effectively and ensure reliable delivery to customers.

Our inventories further increased to RMB5,003.7 million as of December 31, 2025, primarily due to increased inventory storage in light of ongoing global trade policy uncertainties.

We witnessed an increase in our inventory turnover days in 2025, primarily due to our inventory storage and subsequently increased balances.

As of March 31, 2026, RMB3,148.4 million, or 62.9% of our inventories as of December 31, 2025 had been sold or utilized.

Our inventories increased from RMB85.4 million as of December 31, 2024 to RMB115.3 million as of December 31, 2025, primarily due to the increase of finished goods and finished goods in transit as a result of the increase in our external procurement, which was in line with the sales growth of our integrated digital and intelligent software and hardware solutions by the end of 2025.

Our inventory turnover days further increased from 28.0 days in 2024 to 36.0 days in 2025, primarily due to the increase in our external procurement, which was in line with the sales growth of our integrated digital and intelligent software and hardware solutions by the end of 2025.

As of March 31, 2026, RMB104.2 million, or 90.4%, of our inventories as of December 31, 2025 had been sold or utilized.

Our inventories further increased to RMB205.5 million as of December 31, 2025, primarily due to the increase in raw materials and finished goods, as we continued to scale up our production and were able to capture growing market demands.

As of December 31, 2023, 2024 and 2025, the age of the majority of our inventories was less than three months.

As of March 31, 2026, RMB196.9 million, or 95.8% of our inventories and contract costs as of December 31, 2025 had been utilized.

Our inventories increased significantly from RMB238.2 million as of December 31, 2023 to RMB595.1 million as of December 31, 2024 and further increased to RMB870.0 million as of December 31, 2025, which was primarily due to the increased finished goods in line with our continued business growth.

In 2023, 2024 and 2025, our average inventory turnover days were approximately 189 days, 213 days and 264 days, respectively.

As of March 31, 2026, RMB389.5 million, or 42.5%, of our inventories as of December 31, 2025 had been sold or utilized.

Our inventories increased from RMB148.9 million as of December 31, 2023 to RMB157.7 million as of December 31, 2024 and RMB578.7 million as of December 31, 2025, primarily because our sales increased and we stored more raw materials in anticipation of more orders.

During the Track Record Period, the aging of our inventories was all within one year.

As of March 31, 2026, RMB458.9 million, or 79.3% of our inventories outstanding as of December 31, 2025 had been subsequently sold or utilized.

Our inventories increased from RMB669.9 million as of December 31, 2023 to RMB806.8 million as of December 31, 2024, and further to RMB881.8 million as of December 31, 2025, primarily due to business growth requiring more inventories to match increased transaction volumes.

Our inventory turnover days increased from 47 days in 2023 to 55 days in 2024, primarily due to the decrease in revenue from our export business.

As of March 31, 2026, approximately RMB557.8 million, or 63.3% of our inventories outstanding as of December 31, 2025, had been subsequently settled.

Our inventories increased from RMB4.4 million as of December 31, 2024 to RMB27.0 million as of December 31, 2025, as we obtained the marketing approval of senaparib in 2025 and build up inventory.

As of March 31, 2026, approximately RMB6.6 million, representing 24.4% of our inventories as of December 31, 2025, had been subsequently utilized or sold.

Considering the relatively low subsequent utilization of inventories, we have implemented stringent inventory control system to closely monitor and manage our inventory turnover.

Our inventories increased by 116.0% from RMB64.8 million as at 31 December 2023 to RMB140.0 million as at 31 December 2024, and subsequently slightly decreased by 2.4% to RMB136.7 million as at 31 December 2025.

We significantly increased our entire inventory stock in 2024 due to a substantial growth in business, which related to a significant increase in our sales to our major customers, and the need to maintain sufficient buffer stocks to meet expected sales demands from customers.

Inventory turnover days (Note) | 122 | 106 | 65

Our inventories increased from HK$7.6 million as at 31 December 2023 to HK$21.3 million as at 31 December 2024, primarily due to the increase in bulk purchases to enjoy more favourable terms from our suppliers.

In FY2025, after negotiation with our suppliers, we were able to enjoy more favourable terms without making bulk purchases from them.

Our average turnover days of inventories increased from 38 days in FY2023 to 53 days in FY2024, and decreased to 42 days in FY2025, primarily fluctuated with the balances as at each year end.

Our inventories increased by 16.6% from RMB2,745.5 million as of December 31, 2023 to RMB3,200.1 million as of December 31, 2024, primarily due to the increase in finished goods, generally in line with the increase in revenue.

Our inventory turnover days increased from 94.6 days in 2024 to 101.5 days in 2025, mainly attributable to our strategic increase in construction machinery inventories in response to the expansion of our overseas operations.

As of March 31, 2026, approximately RMB2,412.1 million, or 71.1% of our inventories as of December 31, 2025 had been utilized or sold.

Our inventories increased from RMB44.9 million as of December 31, 2024 to RMB97.4 million as of December 31, 2025, primarily due to increased demand for our robot lawn mowers in overseas markets.

Our inventory turnover days increased from 37 days in 2024 to 47 days in 2025, primarily due to increased demand for our robot lawn mowers in overseas markets.

As of February 28, 2026, RMB58.0 million, or approximately 59.6%, of our inventories as of December 31, 2025 had been subsequently sold or utilized.

Our inventories further increased to RMB233.6 million as of December 31, 2025, primarily due to (i) the increase of RMB158.8 million in contract fulfillment costs, in relation to certain equipment, which had been delivered to customers for the relevant projects pending customer acceptance; and (ii) the increase of RMB15.2 million in materials and equipment, as a result of equipment stockpiling in anticipation of customer demand.

Our inventory turnover days increased from 59.5 days in 2024 to 131.7 days in 2025.

This was mainly due to certain hardware having already been shipped for the relevant projects, while the related projects had not yet been delivered or accepted, and therefore the corresponding costs had not yet been transferred to cost of sales and remained recorded as contract fulfillment costs.

Our inventories further increased to RMB72.2 million as of December 31, 2025, primarily due to our procurement of a large quantity of goods from certain brand owners that we served in 2025 for future sales and our engagement with new brand owners, which led to a corresponding increase in goods procurement under our sale of goods business model.

As of February 28, 2026, 12.6% of our total inventories as of December 31, 2025, or RMB9.1 million, were sold.

We have established and implemented a prudent and systematic inventory impairment policy in accordance with IAS 2.

This growth was primarily attributable to the low pricing environment for our major procurement raw material, Known Good Die (KGD), which enabled our Group to strategically pre-stock certain long-term used models.

Our average inventory turnover days slightly increased to 157 days in 2025, primarily attributable to our strategic pre-stocking of KGD for certain long-term used models, which was facilitated by the prevailing low pricing of these principal raw materials in 2024.

We believe that we have made sufficient provision for inventory impairment during the Track Record Period.

Our inventories increased from RMB55.8 million as of December 31, 2023 to RMB84.1 million as of December 31, 2024, and further increased to RMB89.1 million as of December 31, 2025, primarily due to increases in finished goods and raw materials to support our business expansion and anticipated customer demand.

In 2023, 2024 and 2025, our inventory turnover days were 84 days, 91 days and 86 days, respectively.

We have adopted strict and effective procurement policies, together with a demand-based production model, to ensure that our inventory levels remain healthy and stable.

Inventories increased from RMB135.9 million as of December 31, 2023 to RMB249.4 million as of December 31, 2024, primarily due to (1) the increase in finished goods, driven by the acquisition of D-infuture Tech and consolidation of relevant balances and our procurement for undertaking a major customer contract for the enterprise-class scenario; (2) the increase in contract fulfilment cost in line with the delivery progress of various projects; and (3) the increase in work in progress, mainly by the acquisition of D-infuture Tech.

We recorded write-down of inventories of RMB3.7 million, RMB12.4 million and RMB12.4 million in 2023, 2024 and 2025, respectively.

Our management has conducted an impairment assessment and made appropriate write-downs to reflect net realizable value and no further impairment appears necessary at this stage.

Our inventories and contract costs further increased from RMB6,955.5 million as of December 31, 2024 to RMB8,079.0 million as of December 31, 2025, primarily due to (i) an increase of RMB425.4 million in raw materials and consumables as a result of our strategic build-up of raw material reserves which is in line with our business growth, (ii) an increase of RMB328.0 million in goods in transit as a result of higher customer order volumes, particularly for our NEV powertrain system products, and (iii) an increase of RMB320.2 million in finished goods as we maintained higher inventory levels of NEV powertrain system, servo system, industrial robot and AC drive products in line with market demand and our business expansion.

Our inventory turnover days decreased from 100 days in 2023 to 87 days in 2024, primarily because we reduced our raw material reserves in response to market conditions as discussed above.

As of February 28, 2026, RMB4,015.2 million, or 49.7%, of our inventories and contract costs as of December 31, 2025 had been subsequently sold or utilized.

Our inventories increased from RMB54.4 million as of December 31, 2023, to RMB90.3 million as of December 31, 2024, and further to RMB120.2 million as of December 31, 2025

Our inventory turnover days were 140 days, 113 days and 100 days in 2023, 2024 and 2025, respectively.

As of February 28, 2026, RMB105.9 million or 88.2% of our inventories outstanding as of December 31, 2025, was subsequently utilized.