政府客户回款缓慢

Our trade receivables increased by RMB1,036.9 million, or by 135.3% from RMB766.5 million as of December 31, 2023 to RMB1,803.4 million as of December 31, 2024, mainly due to the Acquisition of Renhe.

For the years ended December 31, 2023, 2024, and 2025, and the three months ended March 31, 2026, our trade receivable turnover was 137.5 days, 199.2 days, 242.5 days, and 230.3 days respectively.

of our trade receivables aged between one and two years as of December 31, 2023 and 2024, approximately 93.1% and 99.1%, respectively, had been settled by the end of the following financial year, while trade receivables aged over two years accounted for less than 0.2% of our total trade receivables as of each of December 31, 2023, 2024 and 2025 and March 31, 2026

Our trade and bills receivables increased from RMB5.2 million as at 31 December 2023 to RMB11.5 million as at 31 December 2024, mainly due to (i) the increase in revenue generated in the fourth quarter of 2024; and (ii) delay in payment from certain customers due to their slower internal approval process.

Our average trade receivable turnover days increased from 6 days in FY2023 to 10 days in FY2024, 12 days in FY2025 and 14 days in 6M2026, respectively, which was mainly due to the increase in trade receivables balance mentioned above.

Among the unsettled amount of RMB18.7 million as at 31 July 2026, RMB3.4 million represented 20 government related clients, primarily due to payments being scheduled according to fiscal budget plans.

As of December 31, 2023, 2024 and 2025, we had trade and bills receivables, net of impairment losses of RMB123.6 million, RMB167.7 million and RMB248.3 million, respectively, representing 15.3%, 20.5% and 32.9% of our total current assets, respectively.

Our trade receivables turnover days increased from 148 days in 2023 to 178 days in 2024 and further to 200 days in 2025.

As of April 30, 2026, 25.9% of our trade receivables as of December 31, 2025, or RMB68.6 million of our trade receivables had been settled.

Our trade receivables turnover days increased from 73 days in 2024 to 137 days in 2025, primarily due to (i) a lengthening of the collection cycle from certain customers, which was attributable to delays in their receipt of payments from hospitals and other medical institutions as a result of a longer settlement cycle for basic medical insurance reimbursements and (ii) a decrease in revenue in 2025.

Our trade receivables management policy focuses on maintaining prudent credit control and timely collection.

As of March 31, 2026, RMB419.7 million, or 76.0% of our trade receivables as of December 31, 2025, had been settled, indicating an improvement in our collection efficiency.

Our trade receivables increased from RMB188.5 million as of December 31, 2022 to RMB246.9 million as of December 31, 2023, further to RMB285.8 million as of December 31, 2024, primarily in line with the changes in receivables due from public medical insurance programs.

Turnover days increased to 51 days in 2024, mainly due to the deferral of public medical insurance payments at the end of 2024, which were still within the reimbursement pattern and subsequently received in 2025.

As of October 31, 2025, RMB277.2 million or 89.9% of our trade receivables outstanding as of June 30, 2025, was subsequently settled.

Trade receivables from our comprehensive recycling of resources business increased by 8.9% from RMB311.4 million as of December 31, 2021 to RMB339.2 million as of December 31, 2022 and further increased by 17.2% from RMB339.2 million as of December 31, 2022 to RMB397.5 million as of December 31, 2023, resulting from the delayed subsidy disbursements from PRC Government.

As of January 31, 2025, RMB260.3 million or 42.9% of the trade receivables as of September 30, 2024 had been subsequently settled.

We believe that the expected credit losses are limited because the trade receivable balances are due from the Ministry of Ecology and Environment of the PRC, which has high credibility and historically we did not incur any actual loss with this organization.

Our trade receivable turnover days increased to 86 days in 2023, primarily because our customers prolonged payment as a result of delay in their internal review process, which led to higher trade receivables as of December 31, 2023.

Our collection rates during the Track Record Period were lower than the collection rate for Top 100 Property Management Companies, primarily due to the relatively slow settlement of property management fees from Kingfar Holding Group and Independent Third Parties (other than Xi'an ETDZ MC) during the Track Record Period.

Kingfar Holdings Group will settle all overdue trade receivables due to our Group, i.e. those remained due after 30 days from invoice date, prior to Listing.

The decrease in our trade receivables as of December 31, 2022 compared to 2021, was primarily due to an increase in the allowance for impairment of trade receivables as of December 31, 2022, mainly due to the temporary payment delay from government customers of our cloud hospital platform services and smart healthcare products as they prioritized combating COVID-19 in their resource allocation.

Of the RMB155.6 million in trade receivables after impairment allowance as of March 31, 2023, RMB59.0 million, or 37.9%, had been settled as of July 31, 2023.

We have established dedicated teams responsible for monitoring and collecting outstanding trade receivables on an ongoing basis, and hold monthly meetings to review the collection process.

Our trade receivables increased by approximately RMB146.6 million, or 34.9%, from approximately RMB419.6 million as at 31 December 2021 to approximately RMB566.1 million as at 31 December 2022.

However, taking into account the necessity of heat for such customers, we did not suspend our heat services to them and instead entered into negotiations with them in good faith to make settlement for our heat services at a later time.

As at 30 April 2023, approximately RMB147.5 million, or 28.1% of our trade receivables as at 31 December 2022 were subsequently settled.