存货水平及库龄

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 increased from USD20.3 million as of December 31, 2023 to USD43.3 million as of December 31, 2024, primarily due to increased stockpiling of finished goods, particularly pharmaceutical products.

Our inventory turnover days increased from 45 days in 2023 to 88 days in 2024, primarily due to increased stockpiling of finished goods, particularly pharmaceutical products following COVID.

As of April 30, 2026, USD27.3 million, or 81.8% of our inventories as of December 31, 2025 had been used or consumed subsequent to December 31, 2025.

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.

Our inventories increased to RMB195.2 million as of December 31, 2025, primarily due to (1) the increase in our raw materials and consumables, mainly driven by the expanded variety and scale of raw material procurement driven by business growth, product diversification, as well as advance procurement of raw materials to meet production demands, and (2) the increase in our working in progress and finished goods, as we stocked up relevant inventories in light of the increase in demand of our products and projected sales.

In 2023, 2024 and 2025, we recorded write-down of inventories of RMB14.5 million, RMB8.2 million and RMB6.3 million, respectively.

As of December 31, 2023, 2024 and 2025, the write-down provision of inventories was RMB49.3 million, RMB51.9 million and RMB56.3 million, respectively, representing 33.2%, 37.5% and 22.4% of cost of inventories as of the same dates, respectively.

As of 31 December 2023, 2024 and 2025, we had inventories of RMB9.2 million, RMB11.1 million and RMB13.4 million, respectively.

For the years ended 31 December 2023, 2024 and 2025, the average inventory turnover days (divided by cost of sales) are 37.7 days, 44.6 days and 49.7 days, respectively .

The substantial increase in the balance of inventories aged over one year as of 31 December 2025 was primarily attributable to the delayed delivery to Customer A and Customer F.

As of December 31, 2023, 2024 and 2025, our inventories were RMB231.8 million, RMB320.9 million and RMB525.3 million, respectively.

Our inventories increased from RMB320.9 million as of December 31, 2024 to RMB525.3 million as of December 31, 2025, which was mainly due to the increase in raw materials and finished goods, as we increased inventory levels in line with our revenue growth to meet the demands of our growing business.

This reflected a significant increase in overall inventory scale and showing that the changes in provision for impairment was normal and aligned with our strategy for business expansion rather than a deterioration in inventory quality.

Our inventories increased significantly during the Track Record Period, from RMB365.9 million as of December 31, 2023 to RMB539.7 million as of December 31, 2024, and further to RMB961.7 million as of December 31, 2025.

To mitigate the impact of such supply shortages, we strategically maintain appropriate inventory levels of key raw materials.

Inventories turnover days(1) | 262 | 242 | 289

Our inventories increased by 59.6% from RMB46.8 million as of December 31, 2023 to RMB74.7 million as of December 31, 2024, primarily attributable to an increase of RMB30.3 million in finished goods as a result of our increased procurement of certain popular infant formula based on our deepened collaboration with upstream vendors, which was generally in line with the increased scale of our self-operated business.

Having considered (i) the net realizable value of our inventories; (ii) demand and ongoing sales noted for our inventories; (iii) the aging of our inventories during the Track Record Period which are basically within one year; and (iv) our continuous efforts in supply chain management, we believe 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.

As of April 30, 2026, approximately RMB41.3 million, or 74.1% of our inventories as of December 31, 2025 had been utilized or sold.

Our inventories decreased from RMB29.1 million as of December 31, 2024 to RMB10.9 million as of December 31, 2025, primarily due to the completion of certain digitalization projects during the year, resulting in a reduction of work-in-progress inventories of RMB14.8 million.

We do not believe there is material net unrealizable value issue with our inventories and therefore did not record material write-down as (i) a majority of our inventories were procured based on actual arrangements of signed contracts and the contract price is greater than the book cost; (ii) our digitalization and business solutions business has stable long-term customers; and (iii) the net realizable value of most of the inventories at the end of each period during the Track Record Period was greater than the book value.

Over 1 year | 15,708 | 5,875 | 1,993 | 4,269

Based on the above considerations, in 2023, 2024 and 2025, we made inventory write-down of RMB9.0 million, a reversal of inventory write-down RMB18.1 million and an inventory write-down of RMB9.7 million, respectively.

The proportion of inventories with an age of more than two years was less than 9% during the Track Record Period, which generally aligns with our management’s expectations.

As of April 30, 2026, RMB29.4 million, or 35.5%, of inventories as of December 31, 2025, had been used, consumed or sold.

We had inventories of RMB30.2 million, RMB23.9 million and RMB19.3 million as at 31 December 2023, 2024 and 2025, respectively.

However, this proportion increased to approximately 41.2% as at 31 December 2025, primarily due to the natural ageing of existing inventory into the three-years-or-above category.

During the Track Record Period, the Group recorded a write-down of inventories to net realisable value of RMB2.1 million in 2023, a reversal of RMB1.0 million in 2024, and a write-down of RMB2.9 million in 2025, which were recognised in cost of sales.

Our inventories increased to RMB128.0 million as of December 31, 2025, primarily due to the stocking of smart hardware in line with customer orders, as well as our increased reserves of operating materials for several new large-scale projects launched during the year.

Our inventory turnover days increased from 6.7 days in 2023 to 11.9 days in 2024, and further increased to 25.7 days in 2025 primarily due to our decision to store additional raw materials to support the stable performance of contracts amid significant business expansion.

As of April 30, 2026, RMB102.2 million of inventories, accounting for 78.3% of inventories as of December 31, 2025, had been subsequently utilized.

These increases were primarily due to the commencement of the commercial sales of our metal 3D printing equipment, resulting in the increased production and inventory stocking for relevant metal printing products.

Our inventory turnover days decreased from 98.9 days in 2023 to 86.6 days in 2024, and further to 84.2 days in 2025, primarily due to enhanced procurement planning and efficient supply chain management, including procurement based on monthly production scheduling, staggered supplier deliveries, supplier-managed inventory arrangements where appropriate, and just-in-time procurement for certain high-value core materials, such as sheet metal parts, lasers and industrial computers, which helped ensure timely component availability for production while reducing excess inventory buildup.

As of April 30, 2026, RMB32.5 million, or approximately 32.3%, of our inventories as of December 31, 2025 had been sold or utilized.

Our inventories increased from RMB34.5 million as of December 31, 2023 to RMB103.7 million as of December 31, 2024

This increase was partially offset by an increase in provision of RMB37.5 million primarily due to our recognition of impairment provisions for trivalent split influenza vaccine and human rabies vaccine (Vero cell).

Our inventories increased from RMB103.7 million as of December 31, 2024 to RMB115.4 million as of December 31, 2025, primarily due to a decrease in provisions of RMB33.4 million

Our inventories and other contract costs increased from RMB1,917.7 million as of December 31, 2023 to RMB2,416.0 million as of December 31, 2024, and further increased to RMB2,774.7 million as of December 31, 2025, in line with the expansion of our business scale across multiple segments.

Our inventories and other contract costs turnover days were 137 days, 129 days and 129 days in 2023, 2024 and 2025.

The decrease during the Track Record Period was primarily due to optimization of our inventory management.

Our inventories increased from RMB511.1 million as of December 31, 2024 to RMB781.1 million as of December 31, 2025, primarily due to (i) an increase in finished goods from RMB482.4 million as of December 31, 2024 to RMB520.8 million as of December 31, 2025, (ii) an increase in raw materials from RMB104.1 million as of December 31, 2024 to RMB173.8 million as of December 31, 2025, (iii) an increase in work in progress from RMB4.4 million as of December 31, 2024 to RMB36.0 million as of December 31, 2025 and (iv) an increase in goods in transit from RMB27.6 million as of December 31, 2024 to RMB56.8 million as of December 31, 2025, mainly reflecting the expansion of our production activities in line with our sales growth and broader customer base.

Our inventory turnover days further decreased to 120 days in 2025, primarily due to further sell-down of the Legacy Inventory and our active measures to align production more closely with sales demand.

As of April 30, 2026, 70.6% of our total inventories as of December 31, 2025, or RMB551.1 million, had been utilized or sold.

Our inventories and contract costs increased from RMB70.9 million as of December 31, 2024 to RMB89.4 million as of December 31, 2025, primarily attributable to (i) an increase of RMB5.7 million in raw materials; (ii) an increase of RMB9.0 million in work in progress and (iii) an increase of RMB9.5 million in contract cost, as we built up inventory at the end 2025 to address expected increasing demand in the foreseeable future, partially offset by a decrease of RMB5.7 million in finished goods as a result of increased sales volume realized during the fourth quarter of 2025.

Our inventory turnover days decreased from 60 days in 2023 to 40 days in 2024, and further decreased to 32 days in 2025, primarily because we strengthened our inventory management through adoption of a sale-based production strategy to keep an appropriate inventory level.

As of April 30, 2026, RMB67.2 million, or 75.3% of our gross inventories (before provision) as of December 31, 2025 had been subsequently consumed or sold.

The inventory turnover days of NeuroGen Zhuhai decreased from 206.3 days in 2023 to 180.9 days in 2024, and further to 139.9 days in 2025.

The inventory turnover days remained relatively high in 2023 as we maintained a higher level of inventory before starting the local manufacturing of Keppra tablets at our own facilities to ensure a smooth manufacturing transition.

The inventories of our Group decreased from RMB289.9 million as of December 31, 2024 to RMB135.7 million as of December 31, 2025, primarily due to a significant decrease of RMB161.6 million in finished goods associated with post-Acquisition integration and transition at the end of 2024 to meet the expected sales demand in 2025 and our subsequent inventory management.

Subsequently, our inventory balance increased to HK$80.5 million as of December 31, 2025 primarily due to the increased on our finished goods and work-in-progress.

Our inventory turnover days increased to 100 days as of December 31, 2025, primarily due to higher inventory levels held at year end in preparation for scheduled shipments in early 2026.

As of April 30, 2026, approximately HK$68.9 million, or 85.6% of our inventories as of December 31, 2025 had been subsequently utilized.

Our inventories increased by 23.3% to RMB180.7 million as of December 31, 2024, primarily due to the growth of our business and the Kyowa Kirin China Acquisition in September 2024, and further increased by 67.2% to RMB302.0 million as of December 31, 2025, primarily reflecting the growth and expansion of our business.

Inventory turnover days decreased from 228 days in 2023 and 239 days in 2024 to 137 days.

As of April 30, 2026, approximately RMB122.4 million or 40.5% of the outstanding inventories had been subsequently sold. We have made adequate provision for inventory write-downs in accordance with its impairment policy. Our Directors are of the view that there is no impairment issue for inventories.