The increase in our inventories and inventory turnover days contributed to our net operating cash outflow position in 2025 and the six months ended June 30, 2026.
Financial Information · 第 242 页
We have adopted the following liquidity management measures to manage the foregoing mismatch, improve our net operating cash outflows position in 2025 and the six months ended June 30, 2026, reduce our overall liquidity risk and enhance our working capital efficiency:
Financial Information · 第 253 页
As of July 31, 2026, we had unutilized credit facilities of RMB239.1 million.
We recorded net operating cash outflow of RMB715.4 million, RMB416.0 million and RMB934.7 million in 2024, 2025 and the six months ended June 30, 2026, respectively, while net operating cash inflow of RMB106.2 million in 2023.
Financial Information · 第 242 页
In particular, we have renegotiated with all of our five largest customers in 2025, which collectively accounted for 83.1% of our total revenue in 2025, to reduce their credit periods to 30 days upon receipt of invoice.
Financial Information · 第 243 页
By implementation of the foregoing measures, we expect a material improvement in our operating cash flow position and cash conversion cycle in the next 12 months, achieving industry leading levels.
The decrease in our cash burn rate during the Track Record Period primarily reflected the reduction in net cash used in operating activities.
Financial Information · 第 263 页
To address the cash flow mismatch arising from the longer inventory turnover days and trade receivable turnover days compared to trade payable turnover days and improve our liquidity position moving forward, we also plan to engage with our suppliers to negotiate extended payment terms and flexible payment approaches, reducing the pressure on our working capital, and to further refine our inventory management practices such as improving demand forecasting and enhancing supplier collaboration to ensure optimal stock levels and reduce inventory turnover days.
In 2023, 2024 and 2025 and for the four months ended April 30, 2025 and 2026, we recorded net cash used in operating activities of RMB55.6 million, RMB343.4 million, RMB93.3 million, RMB67.7 million and RMB314.7 million, respectively, primarily due to the working capital requirements of our sale of cold chain agricultural products business model, under which payments to suppliers are generally made prior to receipts from customers.
Summary · 第 10 页
These operating cash outflows were primarily driven by increases in inventory levels, prepayments and operating expenses incurred to support business expansion.
We consider that the net cash flows used in operating activities over the Track Record Period, and the discounting of bills receivables to support our operations, have not imposed any material risk on and have not materially and adversely affected our business operations, as the cash received from the discounting of bills receivables is immediately available for use in our normal business operations and expansion.
Financial Information · 第 232 页
As there remained a risk of recourse by the billholders, the relevant bills had not met the conditions for derecognition, and therefore we continued to recognise the full carrying amount of the relevant bills and the associated other borrowings associated with the cash received or the associated trade payables settled
Financial Information · 第 223 页
We have further implemented a policy of only accepting bank acceptance bills issued by Banks with Good Credit Standing since January 2025 (see ''— Liquidity Management'').
山东省环能设计院股份有限公司Shandong Huanneng Design Institute Company Limited
2025年经营活动现金流出约960万元
In addition to our net current liabilities position, we recorded negative cash flows from operating activities of approximately RMB9.6 million for the year ended 31 December 2025.
Financial Information · 第 234 页
This was primarily due to a temporary timing mismatch between our cash outflows for upfront project expenditures and the subsequent billing and receipt of payments from our customers.
Financial Information · 第 234 页
As at 30 April 2026, being the latest practicable date for the purpose of indebtedness statement, we had unutilised banking facilities of approximately RMB20.0 million available to fund our daily operations.
广州豪特节能环保科技股份有限公司Guangzhou Haote Energy Saving Technology Co., Ltd.
2023及2024年经营现金净流出
We recorded net cash used in operating activities of RMB2.6 million and RMB190.0 million for the years ended December 31, 2023 and 2024, respectively, and net cash flows generated from operating activities of RMB126.1 million in 2025.
Financial Information · 第 223 页
Partially due to the net cash outflow from operating activities in 2024, our cash and cash equivalents decreased significantly from RMB229.1 million as of December 31, 2023 to RMB56.6 million as of December 31, 2024.
Financial Information · 第 223 页
Taking into account the financial resources available to our Group, including the cash flow from operating activities, existing borrowings and the estimated net [REDACTED] from the [REDACTED], our Directors are of the view that, after due and careful inquiry, we have sufficient available working capital for our present requirements for at least the next 12 months from the date of this document.
We recorded net cash used in operating activities of RMB35.2 million, RMB33.7 million and RMB63.4 million in 2023, 2024 and 2025, respectively.
Business · 第 166 页
Against the background of long cash conversion cycle and the mismatch of the cash receipts from trade receivables and payments for trade payables during the Track Record Period, we recorded net operating cash outflows throughout the Track Record Period.
Financial Information · 第 236 页
Going forward, we will continue to implement inventory management measures to enhance inventory turnover and working capital status.
Meanwhile, the cash conversion cycle, which reflects how efficiently a company turns inventory into sales and then into cash relative to how long it defers payment to suppliers, increased to 161 days in 2024 from 124 days in 2023, further contributing to operating cash outflows.
Business · 第 257 页
We recorded net cash generated from operating activities of RMB300.1 million for the first nine months of 2025, as compared to net cash used in operating activities of RMB531.1 million in the same period of 2024, attributable to our net profit of RMB29.7 million for the nine months ended September 30, 2025 and our improved cash conversion cycle.
We had cash outflows from our operating activities during the Track Record Period.
Financial Information · 第 325 页
Specifically, our trade and bills receivables turnover days and inventory turnover days were substantially longer than our trade payable turnover days, which contributed to our net operating cash outflows during the Track Record Period.
Financial Information · 第 325 页
Considering our internal resources, our cash flow from operations and the estimated net proceeds from the Global Offering, our Directors confirm that the working capital available to us is sufficient at present and for at least the next 12 months from the date of this prospectus.
During the Track Record Period, we recorded net cash outflows from operating activities of RMB30.3 million, RMB72.9 million, RMB51.9 million and RMB204.9 million for the years ended December 31, 2022 and 2023 and for the six months ended June 30, 2024 and 2025, respectively.
Summary · 第 6 页
Such increases were primarily attributable to the rapid scaling of the large-scale ESS business in the PRC, which involves significantly larger contract values and longer payment cycles compared with the residential ESS segment.
江苏宏信超市连锁股份有限公司JIANGSU HORIZON CHAIN SUPERMARKET COMPANY LIMITED02625.HK
FY2021、9M2023及9M2024经营现金净流出
With a thin profit margin, we would record net cash used in operating activities when we have negative movement in our working capital (including inventories, trade and bills receivables and trade and bills payables) outweighing our operating profit.
Summary · 第 7 页
For instance, we had net cash used in operating activities of approximately RMB45.8 million, RMB11.1 million and RMB10.6 million for FY2021, 9M2023 and 9M2024, respectively, which were mainly driven by negative working capital movement outweighing our operating profit.
During the Track Record Period, we normally incurred net operating cash outflows during the first half of our financial year.
Financial Information · 第 336 页
The average percentage of initial project costs (excluding staff cost) to awarded contract value for our ICT integration projects which required initial project costs was approximately 58.9%, 55.7%, 70.6% and 64.0% for FY2020, FY2021, FY2022 and 6M2023, respectively.
Business · 第 225 页
In view of the liquidity requirement, especially in our ICT integration projects, we had to adopt a cautious approach in considering potential ICT integration projects which had a contract sum exceeding RMB20 million and involved significant initial project costs, and had to decline business opportunities in relation to projects with larger contract sum due to concerns in liquidity management.
Although we recorded a net cash outflow used in operating activities of approximately RMB29.3 million for FY2022, we will adopt the following measures with a view to improving our cash flow from operating activities:
Financial Information · 第 407 页
Our net cash used in operating activities of approximately RMB29.3 million for FY2022 was primarily attributable to the increase in our trade receivables by approximately RMB75.6 million and the increase in deposits, prepayments and other receivables by approximately RMB15.9 million, which were partially offset by other working capital changes.
As project execution starts from the third quarter of the year and the user acceptance tests are carried out in the fourth quarter of the corresponding year, we normally record net cash outflow from operating activities during the first three quarters of the year.
Business · 第 198 页
For the four months ended 30 April 2022 and 2023, we had net cash outflow from operating activities of RMB24.4 million and RMB31.6 million, respectively.
We recorded net cash used in operating activities of US$5.4 million and US$28.1 million for the year ended December 31, 2019 and 2021, respectively.
Financial Information · 第 340 页
This was primarily due to (i) the relatively longer credit terms we granted to our marketers during the Track Record Period (being generally 30 to 90 days from date of invoice) than those granted by media publishers to us (being generally 30 to 60 days from date of invoice); and (ii) an increase in trade receivables, primarily reflecting our business expansion and the extended credit term we granted in 2021 to Marketer A, one of our major customers, from 60 days to 90 days from date of invoice.
Financial Information · 第 340 页
We recorded net cash generated from operating activities of US$23.7 million for the nine months ended September 30, 2022 as compared to an operating cash outflow in 2021, which was primarily due to a decrease in gross spending with media publishers over the same period together with our accelerated collection of payments from customers as we implemented the aforementioned measures to improve our operating cash flow position.