其他

Our inventories and other contract costs decreased from RMB109.4 million as of December 31, 2023 to RMB99.7 million as of December 31, 2024, and further to RMB44.9 million as of December 31, 2025, respectively, primarily due to the continued delivery and acceptance of customer projects, particularly in the second half of 2025, which resulted in the corresponding contract fulfillment costs being recognized in cost of sales.

As of December 31, 2023, 2024 and 2025, we recorded provision for impairment of inventories of RMB4.3 million, RMB3.7 million and RMB9.0 million, respectively.

(ii) the down payment received from certain projects; and (iii) the continuous efforts to improve and deliver the projects, our Directors are of the view that the impairment provision for inventories made during the Track Record Period was adequate and we were not aware of any material risk that the existing inventories cannot be utilized.

Our inventories decreased from RMB2,426.7 million as of December 31, 2024 to RMB2,124.1 million as of December 31, 2025, due to a decrease of RMB821.6 million of finished goods resulting from our efforts to improve the turnover of finished goods.

During the Track Record Period, our inventory turnover days have generally decreased, primarily due to improved demand forecasting through big data analytics, seasonal index modeling, and flexible production and procurement planning aligned with actual order trends.

Our inventory turnover improved from 96.1 days in 2023 to 63.3 days in 2024 and 35.8 days in 2025, and as of April 30, 2026, RMB1,554.4 million, or approximately 73.2% of our inventory balance as of December 31, 2025, had been sold or utilized.

In particular, a relatively large portion of our inventories consisted of goods in transit, representing smart parking hardware products that had been delivered in stages but not yet recognized as revenue.

Specifically, we generally maintain finished goods inventory equivalent to approximately one to one and a half months of sales, and raw materials inventory sufficient for three to six months of production.

As of April 30, 2026, RMB9.3 million, or 17.6% of our inventories as of December 31, 2025, had been subsequently utilized or sold.

In 2024, our inventory turnover days decreased as we improved our operating efficiency, and as a result we had less inventories as of the end of such year. In 2025, due to the growth of our business, we had more inventories as of the end of such year.

As of February 28, 2026, RMB514.6 million, or 65.0% of our inventory balance as of December 31, 2025 had been sold or utilized.

We assess periodically if cost of inventories may not be recoverable based on an assessment of the net realizable value of inventories.