存货水平及库龄

We had inventories of RMB70.9 million, RMB131.8 million, RMB141.5 million and RMB155.3 million as of December 31, 2021, 2022 and 2023 and June 30, 2024, respectively.

Our inventory turnover days further increased to 395 days for the six months ended June 30, 2024 primarily due to an increase in finished products of our latest CR series products in anticipation of increased demand from overseas markets, as well as the impact of low season for revenue recognition due to seasonality factors, which further prolonged the turnover days for the six months ended June 30, 2024.

Bases on the above considerations, as of December 31, 2021, 2022 and 2023 and June 30, 2024, the write down provision of inventory was RMB8.5 million, RMB13.1 million, RMB21.7 million and RMB26.8 million respectively, representing 11%, 9%, 13% and 15% of costs of inventories.

Our inventories increased by 45.9% from RMB58.1 million as of December 31, 2021, to RMB84.8 million as of December 31, 2022, primarily due to an increase in food ingredients and condiment product as a result of the expansion of our restaurant network as we opened 48 new restaurants in 2022, requiring us to maintain inventories at these restaurants.

Our inventory turnover days increased from 18.9 days in 2021 to 24.0 days in 2022, primarily due to (i) an increase in the amount of raw materials and consumables stored in warehouses as a result of further expansion of our centralized procurement of food ingredients and (ii) increased storage capacity as a result of the extended service radius of our warehouses supported by our own transportation fleet.

As of October 31, 2024, RMB81.9 million, or 83.3% of inventories as of August 31, 2024, had been used, consumed or sold subsequent to August 31, 2024.

Our inventories increased from approximately HK$27.1 million as at 31 December 2021 to approximately HK$31.6 million as at 31 December 2022 and further increased to approximately HK$38.0 million as at 31 December 2023, primarily due to the increase in number of our health supplements and cosmetics and skincare products, which was in line with (i) the increase in number of our self-operated stores; and (ii) our growth in online sales channels.

Our inventory turnover days increased from 158 days for FY2021 to 183 days for FY2022, and further to 193 days for FY2023, mainly attributable to the increase in inventories of our health supplements and cosmetics and skincare products in preparation for our future sales, which was in line with (i) the increase in number of our self-operated stores; and (ii) our growth in online sales channels.

As at 31 October 2024, approximately HK$20.2 million or 58.4% of our inventories as at 30 June 2024 had been used, consumed or sold.

In 2021, 2022, 2023 and the six months ended June 30, 2024, our inventory turnover days were 232.6 days, 320.6 days, 273.5 days and 202.4 days respectively.

Our inventory turnover days are within the range of industry average, primarily because we increased our safety inventory level to accommodate our increasing sales volume.

Accordingly, the provisions in relation to our inventories amounted to RMB4.1 million, RMB6.3 million, RMB7.9 million and RMB7.3 million as of December 31, 2021, 2022 and 2023 and June 30, 2024, respectively.

Our provision for impairment losses on inventories increased by 70.3% from RMB73.6 million as of December 31, 2021 to RMB125.4 million as of December 31, 2022, mainly due to the rapid product iterations towards high-output fuel cell systems and the decline in market prices.

In 2021, 2022, 2023 and five months ended May 31, 2024, our average inventory turnover days were 210 days, 242 days, 193 days and 1,622 days, respectively.

As of December 31, 2022, we further made a full provision based on the net realizable value of these models, considering that no orders were received for these inventories in 2022.

Our inventory turnover days increased from 232 days in 2021 to 251 days in 2022, and then decreased to 210 days in 2023. Our inventory turnover days decreased from 210 days in 2023 to 183 days for the six months ended June 30, 2024.

As of December 31, 2021, 2022 and 2023 and as of June 30, 2024, sufficient provision has been made with regard to the inventories, which amounted to RMB1.6 million, RMB2.6 million, RMB2.5 million and RMB7.7 million, respectively.

As of September 30, 2024, approximately RMB45.8 million or approximately 29.0% of our inventories as of June 30, 2024, were subsequently consumed.

Our average inventory turnover days increased from 161 days in 2021 to 261 days in 2022, mainly because we proactively stocked raw materials in 2022 in anticipation of increased customer demand and a shortage of carbon fiber.

The finished goods stocked as our inventory over one year mainly included vehicle-mounted high-pressure hydrogen supply systems produced for a customer, which is mainly engaged in the production of hydrogen fuel cell vehicles, hydrogen fuel cell stacks, engines, among others, in Guangdong Province.

As of May 31, 2024, the provision of finished goods aged over one year was RMB1.8 million.

During the Track Record Period and especially in 2021 and 2022, our write-down of inventories was relatively large, primarily because (i) we conducted discounted sales of the relevant inventory to ensure working capital sufficiency, which resulted in the decrease of net realizable value of the inventory; and (ii) we scrapped some of the inventories to reduce additional costs, which resulted in the decrease of net realizable value of the inventory.

Our finished goods turnover days increased from 118.5 in 2021 to 170.5 in 2022 because of the affected inventories and the slowdown in sales of our products following the closure of our seller stores on Amazon after the Amazon Incident.

We also made a post-period review of the provision of inventory impairment, and no impact of large-scale inventory impairment similar to the one as a result of the Amazon Incident has been identified.

Our inventories increased by 16.1% from RMB216.0 million as of December 31, 2023 to RMB250.7 million as of May 31, 2024, primarily due to the expanded production to fulfill the increased customer orders in our high-end lighting and advanced display businesses.

Our inventory turnover days decreased from 61 in 2022 to 51 in 2023, primarily because (i) we had slower inventory turnover in 2022 as our customers prioritized depleting their existing inventory and (ii) we strengthened our inventory management and optimized inbound warehousing standards subsequently in 2022 and 2023, which effectively reduced the stock of our finished goods.

As of August 31, 2024, RMB172.1 million, or approximately 68.7%, of our inventories as of May 31, 2024 had been delivered or consumed.

Our inventory turnover days decreased from 1,098 days for the year ended December 31, 2022 to 538 days for the year ended December 31, 2023, which was primarily due to an increase in consumption of inventories in accordance with increase in our revenue.

Our inventories with an age over two years as at December 31, 2023, which mainly comprised raw materials within shelf-life, increased by RMB3.7 million compared to December 31, 2022, primarily because sales of 2022 were below expectations due to the COVID-19 pandemic in 2022.

97.0% of inventories as at May 31, 2024 were within their shelf-life and full provisions amounting to RMB0.9 million were made against inventories that expired or would expire in six months;

Our inventories increased significantly by 173.2% from RMB1,100.6 million as of December 31, 2021 to RMB3,007.3 million as of December 31, 2022.

The provision for impairment loss recognized of inventories amounted to RMB2.2 million, RMB72.6 million, RMB554.5 million, RMB222.3 million and RMB69.5 million in 2021, 2022 and 2023 and the six months ended June 30, 2023 and 2024, respectively.

Despite decreases in both revenue and cost of sales of LFP cathode materials in 2023, the inventory level of LFP cathode materials increased, primary due to (i) production volume outpacing actual orders received as our production plans factored in indicative orders that were higher than the binding actual orders received; (ii) major customers' increased use of transit warehouses before they formally conduct acceptance inspection and utilize our products; and (iii) necessary production of our new production plants, Heze Plant and Xiangyang Plant, to pass customers' verification procedures.

Our inventories increased from RMB113.9 million as of December 31, 2021 to RMB363.5 million as of December 31, 2022 and further to RMB790.9 million as of December 31, 2023 primarily driven by (i) our strategic decision to increase our inventory level to meet the growing downstream demands for processing hardware from customers and (ii) our strategy to further accumulate and store a secure supply of inventory to counteract the cyclical nature of the automotive industry, especially the global auto-part supply shortage in 2021 and 2022.

Substantially all of our inventories are aged within two years.

we are of the view that we have made sufficient impairment provision for inventories during the Track Record Period and there is no material risk that our existing inventories cannot be recovered or will become obsolete.

Our inventories further increased by 41.3% to RMB153.0 million as of March 31, 2024, primarily because we stocked more finished goods to meet the demand of our growing branded business, in particular in overseas markets where we experienced strong sales growth, including the United States, Western Europe, and Japan.

Our average inventory turnover days increased to 40.1 days for the three months ended March 31, 2024, primarily because we stocked more finished goods in overseas markets to meet the demand of our rapidly growing branded business, as international shipping is generally lengthier in duration.

As of July 31, 2024, RMB153.0 million, or 100.0%, of our inventories as of March 31, 2024 had been sold or utilized.

Our inventories remained stable at RMB45.9 billion as at 31 December 2021, RMB46.0 billion as at 31 December 2022 and RMB47.3 billion as at 31 December 2023.

Our inventory turnover days were 53 days, 64 days, 62 days and 50 days in 2021, 2022 and 2023 and the four months ended 30 April 2024, respectively, which are meaningfully below industry averages.

As at 31 July 2024, we had used or sold approximately RMB30.8 billion, or 73.4% of our balance of inventories as at 30 April 2024.

Our inventories increased from RMB3.2 million as of December 31, 2021 to RMB72.8 million as of December 31, 2022, then to RMB71.4 million as of December 31, 2023 and further to RMB81.8 million as of March 31, 2024, primarily affected by our expanded operations and scaled production of SoCs.

Our inventory provision amounted to RMB18.2 million and RMB19.5 million as of December 31, 2023 and March 31, 2024, respectively, primarily in relation to our A1000 series SoCs.

As a result, certain orders of the SoC-based solutions were priced below the cost in expectation of broader commercial opportunities of our SoC-based solutions on more vehicle models in the future, and we made inventory provision in line with the decreased net realizable value.

Our inventories turnover days decreased from 128 days for 2021 to 121 days for 2022, which mainly reflected the continuous integration of the hardware components anticipatorily prepared in 2021 into our solutions.

Our Directors confirmed that we had not experienced any material recoverability issues for our inventories during the Track Record Period as all inventories are expected to be recovered within one year.

As of the Latest Practicable Date, RMB6.0 million, accounting for approximately 97.0% of our inventories as of December 31, 2023, had been subsequently utilized.

Our inventories increased to US$134.6 million as of December 31, 2023, primarily due to the higher levels of raw materials and preflown inventory as of December 31, 2023, which are attributable to increases in production rates and output.

The increase in our inventory turnover days from 2021 to 2022 was primarily attributable to increased inventory attributed to global supply chain issues which drove us to hold higher levels of raw materials to mitigate against unexpected delays or shortages from suppliers and in anticipation of increased production.

As of April 30, 2024, US$131.7 million or 97.9% of our inventories as of December 31, 2023 had been subsequently utilized.

During the Track Record Period, we recorded impairment losses in relation to our inventory of RMB0.9 million, RMB0.7 million and RMB1.6 million, primarily due to implementation of digital invoice reform in 2023, which has rendered some of the inventories obsolete.

As of April 30, 2024, approximately RMB0.2 million, or 5.1%, of our inventories as of December 31, 2023 had been delivered.

We consider our provision of impairment sufficient and we do not believe we have any material recoverability issue for our inventories, as our inventories are typically delivered together with the delivery of our on-premises financial & tax digitalization solutions and during the Track Record Period, we had not encountered any material impairment loss in relation to inventories.

As at 31 December 2022 and 2023, we had inventories of approximately S$7.9 million and S$6.6 million, respectively.

As at 30 April 2024, approximately S$4.2 million, accounting for approximately 63.4%, of our inventories as at 31 December 2023 was subsequently consumed or sold.

Our average inventory turnover days increased from approximately 91 days for the year ended 31 December 2022 to 109 days for the year ended 31 December 2023 due to postponed delivery of certain parts and components as requested by our customers.

Our inventory level was relatively high during the Track Record Period, accounting for 83.5%, 80.3% and 71.4% of our total current assets as of December 31, 2021, 2022 and 2023, respectively, mainly as (i) we need to maintain sufficient inventories of finished goods and raw materials to meet the growing demands for sales and production and to decorate our boutiques' scenery settings;

Our inventories turnover days were 357 days, 383 days and 205 days in 2021, 2022 and 2023, respectively.

To promote the sales of our long-aged gold jewelry products, we may transfer them internally to our other boutiques with higher sales turnover.