减值亏损及拨备上升

Our trade and bills receivables increased by approximately RMB260.1 million from RMB1,073.0 million as at 31 December 2025 to RMB1,333.1 million as at 30 June 2026, which was basically commensurate with the annualised rate of increase in our sales determined based on the increase in sales from 6M2025 to 6M2026.

During the Track Record Period, a large majority of our trade and bills receivables were outstanding for not more than six months, which was in line with the credit periods we granted to our customers that typically ranged from 30 days to 180 days.

As at 31 July 2026, approximately 57.2% of our trade and bills receivables (before impairment loss) as at 30 June 2026, amounting to RMB769.9 million, had been settled.

Our trade receivables increased by 30.9% from RMB571.5 million as of December 31, 2023 to RMB747.8 million as of December 31, 2024, and further increased by 5.0% to RMB785.2 million as of December 31, 2025, primarily due to the increase in our sales and an extension of customer credit terms in line with PRC pharmaceutical industry procurement practices.

Our trade receivables turnover days increased from 47.7 days in 2023 to 57.9 days in 2024, and further increased to 68.8 days in 2025, primarily due to an extension in customers' payment cycles, which was in line with PRC pharmaceutical industry procurement practices.

As of July 31, 2026, RMB337.3 million, or 42.8% of our trade receivables as of June 30, 2026, had been settled.

Our trade and bills receivables increased from RMB157.5 million as of December 31, 2023 to RMB209.6 million as of December 31, 2024 and further to RMB269.2 million as of December 31, 2025, and amounted to RMB290.2 million as of June 30, 2026, generally in line with our revenue growth.

Our management believes that the impairment allowances made for trade receivables are adequate and sufficient to cover the expected credit risks.

As of July 31, 2026, approximately RMB100.0 million, or 33.1% of our trade receivables outstanding as of June 30, 2026, had been subsequently settled.

Our trade receivables turnover days increased from 229 days in 2023 to 350 days in 2024, mainly due to a decrease in our revenue in 2024.

The relatively long trade receivables turnover days during the Track Record Period were primarily due to the nature of our customer base, mainly government and large enterprise clients, which typically follow milestone-based procurement, inspection and acceptance processes.

We recorded credit loss allowance of RMB36.4 million, RMB47.0 million, RMB83.0 million, and RMB80.3 million as of December 31, 2023, 2024, 2025 and March 31, 2026, accounting for approximately 8.8%, 12.2%, 23.8% and 23.7% of our trade and bills receivables at the same dates, respectively, primarily reflecting the growth in our revenue in the corresponding periods.

Our trade receivables increased by 18.7% from RMB588.1 million as of December 31, 2023 to RMB698.2 million as of December 31, 2024, then increased by 34.5% to RMB939.2 million as of December 31, 2025, further increased by 15.2% to RMB1,081.9 million as of April 30, 2026, which was in line with the growth of our revenue.

Our trade receivables turnover days remained relatively stable at 79 days, 83 days, 80 days and 80 days in 2023, 2024, 2025 and the four months ended April 30, 2026, respectively.

As of July 31, 2026, RMB1,064.5 million or 98.4% of the trade receivables as of April 30, 2026 had been subsequently settled.

Our trade receivables increased from RMB19.8 million as of December 31, 2023 to RMB31.1 million as of December 31, 2024, to RMB64.8 million as of December 31, 2025 and further to RMB105.9 million as of June 30, 2026, primarily due to the growth of our business scale and revenue during the corresponding periods and the resulting increase in outstanding receivables under our customer payment terms, which typically involve staged payments and a processing period after the relevant collection milestones are met.

Our trade receivables turnover days were 118 days, 108 days, 81 days, and 106 days in 2023, 2024, 2025, and the six months ended June 30, 2026, respectively.

As of July 31, 2026, RMB13.9 million, or 11.6% of our gross trade receivables outstanding as of June 30, 2026, had been subsequently settled.

Our trade receivables further increased by 41.1% to RMB5,245.1 million as of June 30, 2026, primarily due to the substantial expansion of our sales scale during the six months ended June 30, 2026, which resulted in a corresponding increase in outstanding receivables from customers.

We do not consider this trend to reflect any deterioration in the credit quality of our customer base.

As of July 31, 2026, RMB1,476.0 million, or 23.2% of our trade and bills receivables as of June 30, 2026, had been settled subsequent to June 30, 2026. The Directors confirm that the above subsequent settlement ratio does not indicate any material recoverability concern in respect of the trade and bills receivables balance.

Our trade receivables increased significantly from RMB1,156.4 million as of December 31, 2024 to RMB1,661.0 million as of December 31, 2025, and further to RMB1,821.8 million as of March 31, 2026, primarily due to the increase in trade receivables within one year, which was in line with our business expansion and revenue growth.

Our trade receivable turnover days increased from 61.4 days in 2025 to 68.0 days in the three months ended March 31, 2026, primarily due to the longer credit periods granted to certain customers during the period.

As of June 30, 2026, RMB1,026.6 million, or 55.2%, of our trade receivables as of March 31, 2026, had been settled.

This increase was mainly due to higher sales in the second half of 2024, including an overdue amount from a large state-owned enterprise, where the internal payment approval process caused a delay.

The increase was primarily due to higher outstanding receivables from one customer.

The majority of our trade receivables are within one month, reflecting the strong payment discipline of our customers.

In 2024, the expected credit losses on trade receivables and contract assets increased to RMB10.5 million, reflecting an increase in the risk of credit defaults, which was primarily driven by a higher volume of receivables and a challenging operating environment for a certain customer.

During the Track Record Period, we recorded a loss allowance of trade receivables as one customer experienced financial distress, and the relevant amount has been provided for in full.

We primarily provide credit terms of 30 to 120 days for major customers, with whom we have stable, long-term relationships.

Our trade receivables turnover days increased from 180 days in 2023 to 240 days in 2024 due to (i) a decrease in our revenue in 2024 in line with our strategy to progressively scale down our business in intelligent energy and environmental projects and (ii) the adverse impact on project settlement resulted from the operating challenges faced by certain of our intelligent energy and environmental projects customers in the photovoltaic and lithium battery industries.

We made provision for ECL of RMB65.7 million, RMB86.9 million, RMB59.1 million and RMB7.4 million in 2023, 2024, 2025, and the three months ended March 31, 2025, respectively.

According to Frost & Sullivan, our trade and bills receivables turnover days were generally in line with the industry norm.

Our trade and other receivables further increased to RMB264.2 million as of April 30, 2026, primarily due to the increase in trade receivables arising from new equipment sales during the four months ended April 30, 2026.

We recorded a reversal of impairment on trade and other receivables and contract assets of RMB4.4 million in 2024, compared with impairment losses of RMB16.4 million in 2025, primarily due to impairment losses recognized on certain other receivables in 2025 as a result of the increased credit risk of a third party.

As of May 31, 2026, approximately RMB28.4 million, or 14.0%, of our trade receivables as of April 30, 2026, had been settled.

Our trade and bills receivables turnover days (calculated by dividing the average of the beginning and ending balance of trade and bills receivables for that period by the revenue for the relevant period and multiplied by 365/90 days) increased from 95.0 days in 2023 to 108.6 days in 2024, primarily due to the prolonged settlement process with our large enterprise customers.

As of December 31, 2023, 2024 and 2025 and March 31, 2026, impairment allowance for trade and bills receivables was RMB1,093.1 million, RMB927.9 million, RMB1,082.2 million, and RMB1,124.2 million, respectively.

As of May 31, 2026, RMB290.7 million, or approximately 12.3% of our trade and bills receivables as of March 31, 2026 had been subsequently settled.

As of December 31, 2023, 2024 and 2025, trade receivables (gross balance) due from Customer A amounted to RMB15.3 million, RMB209.8 million and RMB231.5 million, and trade receivables (net balance) due from Customer A amounted to RMB14.6 million, RMB204.5 million and RMB217.1 million.

As of the Latest Practicable Date, RMB215.1 million, or 92.9% of our trade receivables due from Customer A as of December 31, 2025 had been subsequently settled.

We consider the financial position of Customer A will not have material impact on or material risk to our business going forward, as (i) our Group has successfully diversified its customer base in 2025.

Subsequently, our trade receivables increased to approximately RMB152.2 million as at 31 December 2025, which was mainly driven by our growth in revenue resulting in an increase in trade receivables.

As at Latest Practicable Date, approximately RMB39.2 million or 14.7% of our gross trade receivables as at 31 December 2025 had been subsequently settled.

Our trade receivables turnover days decreased from approximately 97.3 days for FY2023 to approximately 68.3 days for FY2024, which was primarily due to our accelerated collection efforts and a higher proportion of prompt payments from our customers during the year.

Our trade and bills receivables increased by 34.5% from RMB121.7 million as of December 31, 2023 to RMB163.6 million as of December 31, 2024, primarily due to our growing sales during the Track Record Period.

Our trade and bills receivables turnover days increased from 174.1 days in 2024 to 198.6 days in 2025, primarily because we allowed some customers to pay at a slightly longer cycle based on our long-term, stable relationship with them.

As of April 30, 2026, RMB70.5 million, or 37.0%, of our trade and bills receivables as of December 31, 2025, had been settled.

Our trade and other receivables increased from RMB99.4 million as of December 31, 2023 to RMB245.5 million as of December 31, 2024, and further increased to RMB551.0 million as of December 31, 2025, in line with our revenue growth.

Our impairment on trade and other receivables increased from RMB4.3 million in 2024 to RMB46.4 million in 2025, primarily due to an increase in the balance of our trade and other receivables as of December 31, 2025 compared with December 31, 2024, which resulted in a higher impairment provision.

Our trade and bills receivables turnover days decreased from 77 days in 2024 to 50 days in 2025, primarily due to our proactive collection efforts and stricter credit control.

We recorded net impairment losses on financial assets of RMB17.3 million, RMB40.1 million and RMB12.7 million in 2023, 2024 and 2025, respectively.

Our net impairment losses on financial assets increased by 131.8% from RMB17.3 million in 2023 to RMB40.1 million in 2024, primarily due to increased losses related to other receivables.

Our net impairment losses on financial assets decreased by 68.2% from RMB40.1 million in 2024 to RMB12.7 million in 2025, primarily due to our enhanced collection efforts related to trade receivables.

Our trade and bills receivables increased from RMB1,137.4 million as of December 31, 2023 to RMB1,288.0 million as of December 31, 2024, and further to RMB1,522.4 million as of December 31, 2025, primarily due to our continuous business growth.

Our impairment loss on trade and other receivables and contract assets increased from RMB66.6 million in 2024 to RMB106.6 million in 2025, primarily due to increases in expected credit loss provisions recognized against trade receivables and contract assets in line with our business growth.

As of April 30, 2026, 64.4% of our trade and bills receivables as of December 31, 2025, or RMB980.0 million, were settled.

Our trade receivables turnover days decreased from 167 days for the year ended December 31, 2023 to 111 days for the year December 31, 2024, and further decreased to 90 days for the year ended December 31, 2025.

As of December 31, 2023, 2024 and 2025, our credit loss allowance for trade receivables amounted to RMB2.7 million, RMB4.3 million and RMB9.3 million, respectively, representing approximately 4.2%, 10.8% and 15.9% of our trade receivables as of the respective dates.

Our trade receivables and note receivables increased to RMB49.5 million as of December 31, 2025, primarily due to the revenue growth in 2025, as payments of certain major customers were not yet due under their contracts as at the end of 2025.