Our cash conversion cycle increased from 156 days in 2023 to 304 days in 2024, 406 days in 2025 and further to 580 days for the four months ended April 30, 2026.
Business · 第 176 页
The cash conversion cycle of our PV business lengthened significantly over the Track Record Period, driven principally by (i) our PV customers generally taking a longer time to settle their outstanding balances, amid the PV industry downturn and the resulting financial and liquidity pressure on our customers, which resulted in a marked lengthening of our trade and bills receivables turnover days; and (ii) the slower pace of customer acceptance during the downturn, which extended the interval between our incurrence of production costs and the recognition of revenue and the collection of payment, thereby further lengthening the cycle.
Business · 第 176 页
Our SiPh business operated with a materially shorter cash conversion cycle than our PV business.
广东微电新能源股份有限公司Guangdong Mic-Power New Energy Co., Ltd.
应收款项周转天数上升及现金错配
Our trade and bills receivables turnover days further increased from 114.2 days in 2024 to 131.0 days in 2025, primarily because the increase in the average balance of our trade and bills receivables outpaced our revenue growth during the year.
Financial Information · 第 258 页
During 2023, 2024 and 2025, our trade and bills receivables turnover days were longer than our trade and bills payable turnover days, resulting in a mismatch between cash inflows and outflows.
Financial Information · 第 259 页
(iii) enhancing our cash flow forecasting and treasury management through rolling cashflow forecasts and centralized fund management, (iv) maintaining sufficient liquidity by maintaining bank facilities and exploring financing tools such as working capital loans, bill discounting and supply chain finance, and (v) optimizing inventory planning and turnover to reduce working capital tied up in inventories.
Our cash conversion cycle, calculated as the sum of inventory turnover days and trade receivables turnover days less trade payables turnover days, was 887 days, 733 days, 271 days and 212 days in 2023, 2024, 2025 and the six months ended June 30, 2026, respectively.
Financial Information · 第 257 页
We have adopted the following measures to manage and further improve our cash conversion cycle: (i) with respect to inventory management, as we transition from CDMO outsourcing to in-house manufacturing, we expect the stock-up period for drug products to be significantly shortened, and as production volumes increase, the unit production cost of APIs is expected to decline and the corresponding inventory cycle to shorten, which we expect will reduce our inventory turnover days over time; (ii) with respect to trade receivables, we actively engage with our customers to negotiate accelerated payment collection within existing credit terms; and (iii) with respect to trade payables, we seek to optimize our payment arrangements with suppliers, including streamlining milestone-based payments, reducing prepayment proportions and consolidating smaller procurement orders under unified credit terms, with a view to maintaining or extending our trade payables turnover days.
Our trade and bills receivables turnover days were 182 days, 179 days, 201 days and 373 days in 2023, 2024, 2025 and the six months ended June 30, 2026.
Financial Information · 第 249 页
The increase from 179 days in 2024 to 201 days in 2025 was primarily due to certain of our customers from the financial services sector temporarily prolonged their internal approval procedures and resulted in longer contract-to-cash cycles.
Financial Information · 第 249 页
Frost & Sullivan further confirmed that our average payment cycle from invoice issuance to collection for customers in the financial services sector is in line with industry practice, and the overall period from acceptance to final collection falls within a reasonable industry range and is generally favourable as compared with the industry average.
Our cash conversion cycle was 253 days, 173 days, 129 days and 169 days in 2023, 2024, 2025 and the three months ended March 31, 2026, respectively.
Financial Information · 第 241 页
The relatively long trade and bills receivables turnover days in 2023 was mainly driven by a higher proportion of sales to an OEM with payment terms involving an initial three-month credit period followed by settlement through six-month bank acceptance bills, resulting in a longer collection cycle.
Financial Information · 第 241 页
Beginning in 2024, we implemented measures to enhance collections and improve inventory management, including defining clearer credit limits and terms, linking collection performance to sales incentives, enhancing monitoring of receivables aging, streamlining billing and milestone processes, and strengthening procurement planning and inventory control to better align purchasing with demand.
Our cash conversion cycle, calculated as inventory turnover days in each period plus the trade receivables turnover days in the respective period minus the trade payables turnover days in the respective period, was 268 days, 222 days 225 days and 229 days in 2023, 2024, 2025 and the three months ended March 31, 2026, respectively, which was largely driven by our inventory turnover days for the same periods.
Financial Information · 第 224 页
We adopt proactive inventory management measures to maintain our inventory at an optimal level, including adjusting our stocking volume in line with anticipated demand, engaging in collaborative planning with our suppliers, adopting a forecasting and replenishment model, and enhancing the visualization of our orders, so as to improve our inventory turnover efficiency.
Financial Information · 第 224 页
As of June 30, 2026, approximately RMB145.5 million, or 99.9% of our trade receivables as of March 31, 2026 had been subsequently settled.
Our trade and bills receivable increased from RMB626.0 million as of December 31, 2023 to RMB970.6 million as of December 31, 2024, and further to RMB1,039.3 million as of December 31, 2025, primarily due to the increase in trade receivables and bills receivable, which was in line with our revenue growth and business expansion.
Financial Information · 第 159 页
Our trade and bills receivable turnover days increased from 175 days in 2024 to 204 days in 2025 in line with our business expansion and the continued use of bank acceptance bills and commercial bills by certain customers.
Financial Information · 第 160 页
Our trade and bills receivable turnover days were longer than the credit terms generally granted to our customers, primarily due to (i) the time required for us and our customers to complete customer reconciliation, which resulted in a time lag between the date of revenue recognition and the invoice date, and (ii) the use of bills for settlement.
山东省环能设计院股份有限公司Shandong Huanneng Design Institute Company Limited
EPC合同3%-5%质保金留存12-24个月
Most of our EPC contracts include payment schedules which require progressive milestone payments to be made over the project execution period.
Financial Information · 第 190 页
Under these agreements, our clients generally retain 3% to 5% of the contract value as a warranty for the completed EPC works for a period of 12 to 24 months.
Financial Information · 第 190 页
This retained amount is recognised within our contract assets and is only released and collected upon the expiration of the defect liability or retention period.
Our trade and bills receivables and contract assets gradually increased from RMB117.4 million as of December 31, 2023 to RMB168.3 million as of December 31, 2024, and further increased to RMB208.1 million as of December 31, 2025, which was in line with our growing revenues.
Financial Information · 第 234 页
Our trade and bills receivables turnover days (including contract assets) were 249 days, 209 days and 229 days as of December 31, 2023, 2024 and 2025, which are calculated as the average of beginning and ending balance of trade and bills receivables and contract assets for the period divided by revenue for that period and multiplied by the number of days (i.e. 365 days) during such period.
Financial Information · 第 235 页
As our customers, including those which are large-scale state-owned enterprises and industry leaders, adopt centralized procurement and internal approval chains that could extend the payment process beyond standard contractual terms.
上海悦普数智科技股份有限公司Shanghai Yuepu Digital Intelligence Technology Co., Ltd.
应收款项周转145至166天及平台预付压力
We generally incur costs for platform media resources, influencer collaboration and project execution before receiving full payment from customers.
Financial Information · 第 203 页
Our trade and notes receivables turnover days remained relatively stable at 166 days in 2023 and 159 days in 2024, and then decreased to 145 days in 2025, primarily due to our business growth and increased revenue, improved customer mix, enhanced receivables collection management and improved customer credit profile in 2025.
Financial Information · 第 219 页
As of April 30, 2026, RMB411.5 million, or 69.4%, of our trade receivables outstanding as of December 31, 2025 had been subsequently settled.
Our cash conversion cycle, calculated as inventory turnover days in each year plus the trade receivable turnover days in the respective period minus the trade payables turnover days in the respective period, was 528 days, 538 days and 325 days in 2023, 2024 and 2025, respectively
Financial Information · 第 235 页
Our trade receivables turnover days increased from 201 days in 2023 to 246 days in 2024, primarily due to our decision to extend the credit term for customers with long-term relationship with us and good credit profile.
Financial Information · 第 235 页
Our trade receivables turnover days decreased from 246 days in 2024 to 207 days in 2025, mainly as a result of our enhanced management of trade receivables and collection effort.
Our cash conversion cycle, calculated as inventory turnover days in each period plus the trade receivable turnover days in the respective period minus the trade payables turnover days in the respective period, was 314 days, 217 days and 260 days in 2023, 2024 and 2025, respectively, which was largely driven by our inventory turnover days for the same periods.
Financial Information · 第 237 页
Our trade receivables turnover days increased to 92 days in 2025, primarily due to the higher trade receivables balance as of December 31, 2025 as discussed above.
Financial Information · 第 238 页
As of April 30, 2026, RMB133.2 million, or 83.2%, of our trade receivables as of December 31, 2025 had been settled.
Our trade receivable turnover days increased significantly from 20 days in 2024 to 285 days in 2025, which was affected by the smaller revenue recorded in 2025 and the trade receivables due from Fosun Pharmaceutical Industrial.
Financial Information · 第 258 页
Our trade receivable decreased from RMB26.4 million as of December 31, 2024 to RMB12.1 million as of December 31, 2025, primarily attributable to settlement from Fosun Pharmaceutical Industrial.
Financial Information · 第 258 页
Our senior management regularly review the balances of our trade receivable and overdue amount, and we follow up with customers with overdue trade receivables.
Our trade and other receivables and prepayment increased by 227.4% from RMB110.8 million as of December 31, 2023 to RMB362.7 million as of December 31, 2024, primarily due to an increase in trade receivables, net of allowance for credit losses from RMB88.7 million to RMB340.8 million.
Financial Information · 第 213 页
Our trade receivable turnover days exceeded our trade payable turnover days of 197 days in 2025, resulting in a cash conversion cycle gap of 103 days.
Financial Information · 第 214 页
As of March 31, 2026, RMB46.2 million, or 8.4% of our trade receivables as of December 31, 2025 had been subsequently settled.
In addition, we faced a structural mismatch in working capital, as our trade receivable turnover days significantly exceeded our trade payable turnover days.
Business · 第 203 页
Our trade receivables turnover days were 142 days, 159 days and 136 days in 2023, 2024 and 2025, respectively.
Financial Information · 第 251 页
Our trade receivables aging over one year increased to RMB9.8 million as of December 31, 2024, and further increased to RMB16.9 million as of December 31, 2025, primarily due to the outstanding amounts due from certain customers.
As of December 31, 2023, 2024 and 2025, our trade and notes receivables were RMB492.0 million, RMB636.5 million and RMB621.6 million, respectively.
Financial Information · 第 245 页
During the Track Record Period, our trade and notes receivables turnover days were relatively high. This was primarily because certain bank acceptance notes that we received from our customers and subsequently endorsed to our suppliers, cannot be derecognized at the time of endorsement under the relevant accounting standards.
Financial Information · 第 246 页
As of March 31, 2026, approximately RMB492.2 million, or 79.2%, of our trade and notes receivables (net of impairment of trade receivables) as of December 31, 2025 had been subsequently settled.
Our inventory turnover days were 302.1 days, 138.6 days and 119.2 days, respectively, in 2023, 2024 and 2025; our trade and bills receivables turnover days were 295.1 days, 263.6 days and 310.8 days, respectively, in 2023, 2024 and 2025; while our trade and bills payables turnover days were 125.2 days, 122.7 days and 194.6 days, respectively, in 2023, 2024 and 2025.
Financial Information · 第 261 页
Our trade and bills receivables turnover days were relatively longer than the general credit terms as agreed in our contracts with customers during the Track Record Period primarily because some of our customers did not strictly follow the payment schedule after invoices are issued.
Financial Information · 第 269 页
As of March 31, 2026, approximately RMB73.1 million of our trade and bills receivables (or approximately 23.2% of our trade and bills receivables as of December 31, 2025) had been subsequently settled.
上海拓璞数控科技股份有限公司Shanghai Top Numerical Control Technology Co., Ltd.07688.HK
现金转换周期长引致流动性风险
During the Track Record Period, we are exposed to liquidity risk due to a long cash conversion cycle, as a result of our Group’s high inventory turnover days which were substantially higher than the trade payable turnover days.
Financial Information · 第 267 页
In FY2023, FY2024 and FY2025, our trade receivables turnover days for SOEs was 108 days, 72 days and 127 days, respectively, which was longer than our overall trade receivables turnover days for each of the year during the Track Record Period.
Summary · 第 14 页
To mitigate the risks associated with the cashflow cycle, our Group will implement the measures including: (i) to require advanced payment prior to final acceptance approval if delays in final acceptance approval are not attributable to our Company; (ii) to provide trial production validation as an after-sale service rather than a prerequisite in final acceptance testing; (iii) to more prudent scheduling of final acceptance timelines in collaboration with customers to ensure smooth on-site installation and final acceptance testing; and (iv) to establish collection task forces which comprises cross-functional personnel from the product development, operations and sales team to resolve project-specific issue and accelerate outstanding payments.
Our trade receivables increased from Rp1,118,103 million as of December 31, 2023 to Rp1,409,549 million as of December 31, 2024, primarily attributable to increased receivables from fellow subsidiaries, driven by sales growth and expanded business with fellow subsidiaries. Our trade receivables then increased slightly to Rp1,424,525 million as of December 31, 2025, primarily due to increased receivables from third parties, resulting from sales growth and the addition of new customers.
Financial Information · 第 215 页
During the Track Record Period, our trade receivables turnover days was longer than the typical credit terms we granted to our customers, primarily due to the nature of certain bundled advertising arrangements with FTAs, where collections are processed through a chain of advertisers to advertising agencies, then to FTAs, and subsequently to us.
Financial Information · 第 215 页
Our trade receivables turnover days increased from 136 days for 2023 to 153 days for 2024, primarily due to the collection structure of certain bundled advertising and subscription arrangements, where payments are received through intermediaries such as advertising agencies, FTA and Pay TV subsidiaries of MNC Group before being remitted to us, which extended the overall collection cycle.
Our trade and other receivables, and prepayments further increased by 11.0% to RMB7,061.6 million as of December 31, 2025, primarily due to an increase in trade receivables due from third parties of RMB514.3 million, mainly driven by an increase in trade receivables of RMB1,323.4 million arising from the gradual implementation of 13th Five-Year Plan Project in Guangzhou* (廣州十三五項目), for which the collection milestones have not been met as of the end of 2025.
Financial Information · 第 224 页
We had certain long-standing balance of trade receivables, primarily due to payment patterns of our government and institutional clients, who typically undergo complicated payment approval processes.
Financial Information · 第 224 页
Our trade and bills receivables turnover days were 224 days, 213 days and 206 days as of December 31, 2023, 2024 and 2025, respectively.