Our other net income increased from US$0.3 million for the year ended December 31, 2024 to US$0.9 million for the year ended December 31, 2025, primarily due to our gains on disposal of 100% equity interest in Nanping Guduoduo to a third party in 2025 with nil consideration.
Financial Information · 第 220 页
On the date of disposal, Nanping Guduoduo had net liabilities of US$0.3 million and a cash balance of US$36 thousand, resulting in a net gain of US$0.3 million and a cash outflow of US$36 thousand.
Our other income and gains increased by 62.1% from RMB461.8 million in 2024 to RMB748.7 million in 2025, primarily driven by (i) a fair value gain on financial assets at FVTPL of RMB204.1 million in 2025, compared to nil in 2024; (ii) net foreign exchange gains of RMB139.4 million in 2025, compared to nil in 2024 (as net foreign exchange losses of RMB111.9 million in 2024 were recorded as other expenses) as a result of exchange rate fluctuation; and (iii) performance compensation of RMB39.9 million related to prior year acquisitions of subsidiaries and RMB26.6 million related to prior year acquisition of non-controlling interests in a subsidiary because the relevant acquired entities failed to meet their performance targets as stipulated in the acquisition agreements.
Financial Information · 第 209 页
Our other income and gains decreased by 2.8% from RMB475.1 million in 2023 to RMB461.8 million in 2024, primarily driven by the absence of fair value gains on financial assets at FVTPL (which amounted to RMB143.7 million in 2023) and the absence of gain on disposal of a subsidiary (which amounted to RMB51.0 million in 2023), partially offset by an increase of RMB66.2 million in government grants.
深圳市星源材质科技股份有限公司Shenzhen Senior Technology Material Co., Ltd.06067.HK
2025年存货核销损失2,971万元属一次性
Loss on write-off of inventories recognized in other losses and gains related to unforeseeable event outside the ordinary course of our business and was non-recurring in nature.
Financial Information · 第 233 页
Our other gains decreased by 49.0% from RMB36.5 million in 2024 to RMB18.6 million in 2025, primarily due to (i) the recognition of impairment losses on property, plant and equipment relating to the cessation of production in Shenzhen manufacturing base in the last quarter of 2025, and (ii) recognition of loss on write-off of inventories, mainly due to equipment malfunction at certain storage facilities that temporarily compromised the required storage environment, rendering the affected inventories unsaleable, partially offset by an increase in investment income of financial assets at FVTPL, mainly from equity investment.
The gains in 2023 was primarily attributable to the recognition of a gain of RMB14.1 million resulting from a re-measurement of the fair value of redemption liabilities to reflect the non-substantial modification of the redemption rights between our Company and the [REDACTED] Investors in October 2023.
Financial Information · 第 226 页
Represent a non-cash, non-recurring accounting gain recognized in 2023 as a result of the remeasurement of redemption liabilities following the amendment to the redemption period agreed between the Company and the [REDACTED] Investors.
Our other income and other gains and losses decreased by RMB21.1 million, or 71.8%, from RMB29.4 million in 2024 to RMB8.3 million in 2025, primarily due to (i) a decrease of RMB6.3 million gain on dilution of the investment in an associate and (ii) a change from foreign exchange gains of RMB4.0 million in 2024 to foreign exchange losses of RMB4.1 million in 2025 as RMB appreciated against the U.S. dollar in 2025, following a depreciation in 2024.
Financial Information · 第 212 页
Our other income and other gains and losses increased by RMB8.4 million, or 40.3%, from RMB21.0 million in 2023 to RMB29.4 million in 2024, primarily due to (i) a RMB6.3 million gain on dilution of the investment in an associate in 2024 and (ii) an increase of RMB3.9 million in government subsidies as we met relevant technological improvement policy requirements and received the corresponding government support.
In 2023, 2024 and 2025, we recorded income tax credit of RMB114.9 million, RMB25.1 million and RMB32.7 million, respectively, arising from tax losses available for deduction.
Financial Information · 第 183 页
Our income tax credit decreased from RMB114.9 million in 2023 to RMB25.1 million in 2024, primarily because we recognized deferred tax assets of RMB114.3 million in 2023 in connection with our accumulated losses as of December 31, 2023, while the deferred tax assets of RMB24.6 million recognized in 2024 were only related to tax losses incurred in 2024.
Our other income and gains increased by 113.0% from RMB7.5 million in 2024 to RMB15.9 million in 2025, primarily because we recorded gains on disposal of property, plant and equipment of RMB4.5 million in 2025 as we disposed of certain equipments relating to our edge cloud computing services in order to optimize our asset portfolio and improve overall asset utilization.
Our other net income increased from RMB6.4 million in 2024 to RMB20.4 million in 2025, primarily due to an increase of RMB17.0 million in government grants in relation with our research and development activities.
Financial Information · 第 235 页
We recorded other net income of RMB10.1 million in the three months ended March 31, 2025, while we recorded other net loss of RMB1.0 million in the three months ended March 31, 2026, primarily due to (i) a decrease of RMB8.7 million in government grants, and (ii) a net exchange loss of RMB3.0 million recorded in the three months ended March 31, 2026, which was mainly attributable to fluctuations in the exchange rate between the U.S. dollar and Renminbi.
We recorded net other gains in the three months ended March 31, 2025 while we recorded net other losses in the three months ended March 31, 2026, primarily due to net foreign exchange losses of RMB147.1 million recognized in the three months ended March 31, 2026 as compared to net foreign exchange gains in the same period in 2025, driven by exchange losses on our USD-denominated assets resulting from the depreciation of USD against RMB in the same periods.
Financial Information · 第 197 页
The fluctuations of our net other gains/(losses) during the Track Record Period was in line with changes in net foreign exchange gains or losses as a result of exchange rate fluctuations.
During the Track Record Period, we received government grants other than deferred income of RMB20.7 million, RMB10.1 million and RMB9.8 million in 2023, 2024 and 2025, respectively. The decrease from 2023 to 2024 was primarily due to the single large grant made by the Chengdu government based on a "one project, one decision" policy in an amount of RMB10.5 million, as a means to support major local companies.
Financial Information · 第 225 页
Our other income and gains decreased by 38.1% from RMB26.7 million in 2023 to RMB16.5 million in 2024, mainly due to a decrease in government grants recognized during the year of RMB10.5 million.
During the Track Record Period, our other income and gains primarily consisted of (i) government grants, (ii) bank interest income, (iii) gains on disposal of an investment measured at FVTPL, which primarily related to our disposal of shares in a solid-state battery company in 2023, and (iv) others.
Financial Information · 第 201 页
This decrease was primarily due to (i) a decrease of RMB6.6 million in gains on disposal of an investment measured at FVTPL, as we disposed of shares in a solid-state battery company in 2023; (ii) a decrease of RMB6.4 million in government grants, and (iii) a decrease of RMB2.7 million in bank interest income, as a result of lower prevailing bank interest rates and a reduction in time deposit activities as we redirected funds to support our operating activities.
In 2023, the government demolished the Binwang Market and revoked the land use rights, in consideration of which it provided demolition compensation to our Company.
Financial Information · 第 221 页
Other gains, net decreased by 44.7% from RMB221.3 million in 2023 to RMB122.5 million in 2024, primarily due to (i) the absence of provisions reversed in 2024, and (ii) a decrease in net gains/ (losses) on disposal of property, plant and equipment and other long-term assets.
In 2018, after our Company and the Trading Company were sued, the provision was adjusted to RMB110,620,000 based on the claim amount asserted in the lawsuit.
Financial Information · 第 221 页
Accordingly, the provision for contingent liabilities previously recognized by our Company was reversed in 2023.
Financial Information · 第 221 页
Other gains, net decreased by 44.7% from RMB221.3 million in 2023 to RMB122.5 million in 2024, primarily due to (i) the absence of provisions reversed in 2024, and (ii) a decrease in net gains/ (losses) on disposal of property, plant and equipment and other long-term assets.
In December 2024, we exchanged equity interest in an associate for shares of an equity investment, resulting in investment income of RMB101.0 million in 2024.
Financial Information · 第 197 页
The decrease was primarily due to a decrease in the gain on disposal of associates and joint ventures attributable to the one-off gain on the associate disposal in 2024, which was not recurring in 2025, and such decrease was partially offset by an increase in gains from fair value changes of financial assets at FVTPL.
Our other income and gains decreased significantly from RMB146.7 million in 2024 to RMB6.2 million in 2025, primarily attributable to (i) a decrease in subsidy for production costs.
Financial Information · 第 251 页
We recorded one-off subsidy for production costs of RMB121.1 million in 2024, representing the compensation of production costs from Fosun Pharmaceutical Industrial in respect of a significant amount of azvudine produced in early 2023 in light of the then COVID situation and expected demands of our products.
Financial Information · 第 251 页
No such amount was recorded in 2025; and (ii) the decrease in government grants from RMB21.7 million in 2024 to RMB5.8 million in 2025.
Our other gains, net decreased from RMB1,302.1 million in 2023 to RMB303.1 million in 2024, primarily due to the decrease in the number of shares in Li Auto we disposed in 2024, resulting in the decreased gain on disposal of financial assets at FVTPL.
Financial Information · 第 243 页
Our other gains, net decreased from RMB303.1 million in 2024 to RMB156.0 million in 2025, primarily due to (i) a reduction of RMB120.6 million in gains on disposal of financial assets at FVTPL, resulting from a lower disposal volume of Li Auto shares, bonds, and notes in 2025 compared to 2024; and (ii) an increase of RMB18.6 million in net losses on disposal of property, plant and equipment and other long-term assets, primarily related to the disposal of certain investments accounted for using the equity method that no longer aligned with our long-term holding strategy.
During the Track Record Period, the decrease in additional deduction for VAT was primarily due to the policy adjustment on taxpayers engaged in productive service industries.
Our other income decreased by 44.9% from RMB258.4 million in 2024 to RMB142.4 million in 2025, primarily due to a decrease of RMB140.1 million in government grants, as we received certain one-off government subsidies in 2024 which decreased in 2025.
Financial Information · 第 232 页
Our other income primarily consisted of (i) government grants, mainly represented one-off incentives provided by local government to support our daily business operations; (ii) investment income from financial assets at FVTPL and debt securities at amortized cost; (iii) income from wealth management products; and (iv) others, primarily comprise refund of handling fees for individual income tax.
Our other income and gains decreased by 45.4% from RMB35.3 million in 2024 to RMB19.3 million in 2025, primarily due to a decrease in bank interest income resulting from lower average bank deposit balances, and a reduction in net foreign exchange gains attributable to fluctuations in foreign exchange rates.
Our foreign exchange gains remained relatively stable at RMB30.6 million 2023 and at RMB35.4 million in 2025 resulting from the appreciation of the Euros against Renminbi, while our foreign exchange gains were nil in 2024 resulting from the depreciation of the Euros against Renminbi.
Financial Information · 第 173 页
Our other income and gains increased significantly from RMB29.9 million in 2024 to RMB81.7 million in 2025, primarily due to foreign exchange gains of RMB35.4 million in 2025 attributable to the appreciation of Euros against Renminbi, whereas no such foreign exchange gains were recognized in 2024.
Financial Information · 第 177 页
Our other income and gains decreased by 47.0% from RMB56.4 million in 2023 to RMB29.9 million in 2024, primarily due to foreign exchange gains of RMB30.6 million in 2023 attributable to the appreciation of Euros against Renminbi, whereas no such foreign exchange gains were recognized in 2024.