营运资金（应收、预付及现金周期）

应收款项大增并审慎计提减值

During the Track Record Period, our trade and bills receivables grew significantly as our sales increased.

Financial Information · 第 385 页

As of October 31, 2023, 71.2% of our trade and bills receivables as of June 30, 2023, or RMB2,766.0 million, were settled.

Financial Information · 第 387 页

We recorded the net impairment losses of RMB247.1 million in the six months ended June 30, 2023, primarily due to the provision for impairment losses we prudently made in the six months ended June 30, 2023 for certain EV battery products customers in consideration of their operating performance, liquidity position and our communication with them on the payment schedules.

Financial Information · 第 386 页

逾期贷款占比持续上升且90天以上逾期达16.3%

As of December 31, 2020, 2021 and 2022 and May 31, 2023, our total loan receivables that were past due were HK$108.3 million, HK$127.4 million, HK$189.7 million and HK$203.3 million, respectively, accounting for 9.9%, 13.5%, 18.6% and 19.3% of our total loan receivables (excluding loan receivables of the subordinated mortgage loans as of December 31, 2020 and 2021), respectively, as of the same dates, respectively.

Financial Information · 第 277 页

The increase in our loan receivables overdue over 90 days was mainly due to the acquisition of the Transferred Loans from the Excluded Group (among which 125 accounts were over 90 days past due with overdue loan receivables of approximately HK$58.6 million), and the roll-over effect of overdue loan receivables for loan accounts which we have already taken legal proceedings.

Financial Information · 第 278 页

As we were less aggressive in taking enforcement actions during 2022, the repayment pattern of our borrowers were affected, which led to an increase in loan receivable over 90 days past due in 2022.

Financial Information · 第 278 页

贸易应收款上升,周转天数增至144.2天

Our trade receivables increased from approximately RMB135.6 million as at 31 December 2020 to approximately RMB166.5 million as at 31 December 2021 increased to approximately RMB207.5 million as at 31 December 2022 and further increased to approximately RMB233.8 million as at 30 June 2023, which was in line with the growth in our revenue during Track Record Period and mainly attributable to the late settlement from customers and slow economic resurgence after lockdown policy of the PRC government during the year ended 31 December 2022.

Financial Information · 第 323 页

Our trade receivables turnover days were 99.8 days, 103.0 days, 121.7 days and 144.2 days for the years ended 31 December 2020, 2021 and 2022 and the six months ended 30 June 2023, respectively.

Financial Information · 第 325 页

For the years ended 31 December 2020, 2021 and 2022 and the six months ended 30 June 2023, approximately RMB1.9 million, RMB2.4 million, RMB4.2 million and RMB4.9 million had been provided for impairment of trade receivables due from customers, respectively.

Financial Information · 第 325 页

贸易应收款项高企且周转天数达1,478天

Our trade and bills receivables increased by 79.8% from RMB646.8 million as of 31 December 2021 to RMB1,163.2 million as of 31 December 2022 mainly due to (i) the significant increase in our revenue from the increased sales of hydrogen fuel cell systems, and (ii) the prolonged settlement of trade receivables by some of our customers during the Track Record Period.

Financial Information · 第 454 页

We faced prolonged settlement by some of our customers mainly due to the capital restraints placed on them, and generally on the hydrogen fuel cell vehicle industry, as a result of the nature of the current awards policy which usually puts a relatively long time gap, generally over two years as advised by Frost & Sullivan, between when hydrogen fuel cell vehicle manufacturers sell their vehicles and when they may collect their qualified awards in full.

Financial Information · 第 455 页

Our trade receivables turnover days increased from 521 days for the year ended 31 December 2022 to 1,478 days for the five months ended 31 May 2023 mainly due to the increasing balance of trade receivables as a result of (i) from the substantial increase of revenue for the second half of 2022, (ii) the prolonged settlement as discussed above, in addition to (iii) seasonality nature of our business as our revenue base for such period was relatively low and we generally record the majority of our revenue during the second half of the year.

Financial Information · 第 457 页

预付款按金及其他应收款大幅上升

Our prepayments, deposits and other receivables increased by 65.6% from RMB142.1 million as at 31 December 2020 to RMB235.3 million as at 31 December 2021, primarily attributable to increases in (i) prepayments for purchase of feed, veterinary medicine and feed ingredients as a result of our business growth, and (ii) deductible input value-added tax.

Financial Information · 第 389 页

Our prepayments, deposits and other receivables increased by 75.7% from RMB235.3 million as at 31 December 2021 to RMB413.4 million as at 31 December 2022, primarily attributable to the expansion of our operations resulted in the increases in (i) prepayments for purchase of feed, veterinary medicine and feed ingredients, and (ii) deposits in connection with guarantees paid to acquire a parcel of land for our feed mill.

Financial Information · 第 389 页

As at 30 September 2023, RMB260.9 million or 61.5% of our total prepayments, deposits and other receivables as at 31 May 2023 had been subsequently settled.

Financial Information · 第 390 页

应收账款上升且账龄恶化

As of December 31, 2020, 2021 and 2022 and June 30, 2023, our trade receivables and bills receivable amounted RMB4,345.0 million, RMB5,549.6 million, RMB6,371.4 million and RMB6,188.4 million, respectively.

Financial Information · 第 532 页

Our trade receivables aged for over two years amounted to approximately RMB662.5 million as of December 31, 2022 and approximately RMB978.9 million as of June 30, 2023.

Financial Information · 第 535 页

In view of the deteriorating aging profile, our Group has enhanced our efforts in collection of trade receivables, including engaging third-party debt collectors, liaising with debtors to settle the receivables by instalments.

Financial Information · 第 535 页

合同资产增至67亿元结算周期长

Our contract assets increased by RMB1,365.3 million from RMB3,310.4 million as of December 31, 2020 to RMB4,675.8 million as of December 31, 2021, increased by RMB1,656.7 million to RMB6,332.5 million as of December 31, 2022 and further increase by RMB342.2 million to RMB6,674.7 million as of June 30, 2023, the increase was primarily due to (i) our revenue recognised from our construction projects; (ii) the cumulative effect of contract asset balances for some of our construction projects that have a longer duration; (iii) the overall economic downturn as a result of the COVID-19 pandemic in the last two years, during which the capital flow of our customer was generally tight, resulting in the certification and billing process lagging behind and (iv) increase in the retention receivable.

Financial Information · 第 545 页

During the Track Record Period, upon completion of the project, the time required for us to complete the settlement review and issue the final settlement value (excluding 3%-10% of the retention money) balance reached approximately one to three years.

Financial Information · 第 545 页

As of the Latest Practicable Date, RMB3,067.8 million representing 57.1% of the current portion of our contract assets for EPC projects as of June 30, 2023 were subsequently certified by and billed to our customers in accordance with the terms of our construction contracts after the settlement review as confirmed by our customers.

Financial Information · 第 552 页

贸易应收账款周转天数升至102.6天

The increases in our trade receivables turnover days in 2022 and the six months ended June 30, 2023 were primarily because (1) we gradually phased out settlements through the Remaining WXB Group, which would occasionally adjust settlement pace according to our capital and liquidity needs, and (2) we were increasingly dealing with third party customers directly, who typically have a longer settlement cycle for trade receivables.

Financial Information · 第 336 页

As of September 30, 2023, approximately RMB530.4 million, or 75.7%, of our trade receivables as of June 30, 2023 had been settled.

Financial Information · 第 337 页

Our Directors concluded that we do not have any material recoverability issue for our trade receivables and the allowance for expected credit losses was adequate and reasonable for the following reasons.

Financial Information · 第 337 页

贸易应收账款大增及周转天数上升

Our trade receivables further increased from approximately RMB32.0 million as at 31 December 2021 to approximately RMB102.6 million as at 31 December 2022, primarily attributable to the increase in our revenue generated near year end as more projects under our provision of advertisement placement services were completed at the end of the year.

Financial Information · 第 415 页

During the Track Record Period, our average turnover days of trade receivables was approximately 65.8 days, 63.7 days, 118.6 days and 211.1 days, respectively.

Financial Information · 第 417 页

The higher average trade receivables turnover days for FY2022 and 4M2023 was mainly attributable to the increase in trade receivables from the provision of advertisement placement services (including rebates from Media Partner) and certain online media advertising services, which were accounted for on a gross basis while the relevant revenue was recognised on a net basis, according to the relevant accounting standards.

Financial Information · 第 417 页

代客户向媒体伙伴垫付保证金致资金错配

As disclosed above, we pay deposits on behalf of our customers to the Media Partner for the advertisement placement costs before our customers settled our fees.

Financial Information · 第 387 页

During FY2022 and 4M2023, our total amount of deposits paid by us on behalf of our customers to the Media Partner and deposits paid to the Media Partner amounted to approximately RMB193.9 million (inclusive of taxes) and RMB113.8 million (inclusive of taxes), respectively.

Financial Information · 第 421 页

We would discuss with the customers to lower the amount of deposits paid by us on behalf of them at the relevant time.

Financial Information · 第 388 页

贸易应收款项增至3.22亿元且周转约78天

This was primarily due to our decision to temporarily extend credit terms to certain customers to ease their financial burden during the COVID-19.

Financial Information · 第 342 页

However, our trade receivables turnover days increased from 72.3 days in 2021 to 78.1 days in 2022, primarily due to the temporary extension of credit terms to certain customers to help them cope with the negative impact due to COVID-19.

Financial Information · 第 343 页

As of August 31, 2023, RMB244.5 million, or 80.7%, of our trade receivables as of April 30, 2023 had been settled.

Financial Information · 第 343 页

应收融资租赁款增至15.2亿元及逾期

Our finance lease receivables increased from RMB1,001.7 million as at 31 December 2020 to RMB1,297.0 million as at 31 December 2021, primarily attributable to the increase in the total number of finance lease agreements that were in effect which was mainly caused by the recovery of our sales of automobile under finance lease from the impact of the outbreak of COVID-19 in the PRC in 2020.

Financial Information · 第 407 页

As at 31 December 2020, 2021, 2022 and 30 June 2023, our non-performing asset ratios, were 0.7%, 0.7%, 0.7% and 0.8%, respectively.

Financial Information · 第 410 页

As at the Latest Practicable Date, RMB332.3 million or 17.2% of our finance lease receivables as at 30 June 2023 had been settled.

Financial Information · 第 412 页

应收账款周转天数高企及减值拨备

Our trade receivable turnover days increased from 108 days in 2019 to 183 days in 2020, primarily due to the impact of the COVID-19 outbreak, especially the impact on trade receivables due from customers of our advertising and system support services, whose businesses were negatively affected, which accounted for a larger portion of our trade receivables in 2020.

Financial Information · 第 454 页

During the Track Record Period, a portion of our trade receivables were longer than the credit terms we typically offered to customers, which were mainly receivables due from our customers from vending machine sales and leases.

Financial Information · 第 455 页

As of June 30, 2023, RMB16.7 million, or 64.7%, of our trade receivables aged over one year as of December 31, 2022 had been subsequently settled.

Financial Information · 第 455 页

购机预付款大幅上升

Our prepayments, deposits and other receivables slightly increased by 1.3% from RMB365.6 million as of December 31, 2022 to RMB370.4 million as of June 30, 2023, primarily due to (i) an increase in prepayments for purchase of machines of RMB29.0 million, as we made prepayments for new machines and upgrading of old machines during the six month ended June 30, 2023, (ii) an increase in advances to and receivables from business partners of RMB9.5 million, partially offset by (iii) a decrease in prepayments for purchase of inventories of RMB12.3 million, (iv) a decrease in others prepayments of RMB11.0 million, and (v) a decrease in amount due from POS partners of RMB10.0 million.

Financial Information · 第 457 页

Prepayments for purchase of machines arise from the contractual obligation with our suppliers when we procure new machines from them.

Financial Information · 第 459 页

前附属公司北京友阳应收款全额减值

Advances to and receivables from business partners primarily relate to (i) other receivables from Beijing Youyang, a former subsidiary of the Company, which amounted to nil, RMB78.3 million, RMB59.4 million, RMB59.3 million and RMB59.3 million as of December 31, 2019, 2020, 2021, 2022 and June 30, 2023, respectively, (ii) other receivables from Hangzhou Penguin Technology Co., Ltd., which amounted to RMB9.5 million as of June 30, 2023, for further details, see “— Related Party Transactions”, and (iii) other advances to or receivables from five potential vendors, each an Independent Third Party in relation to four potential acquisitions of equity interests, machines and/or operating rights with a view to support our business expansion, which amounted to RMB78.9 million, RMB23.5 million, RMB18.0 million, nil and nil as of December 31, 2019, 2020, 2021, 2022 and June 30, 2023, respectively.

Financial Information · 第 460 页

We recorded allowance for impairment of such receivables of RMB38.5 million, RMB59.4 million, RMB59.3 million and RMB59.3 million in view of the recoverability as business of Beijing Youyang deteriorated in 2020, 2021, 2022 and the six months ended June 30, 2023, respectively, due to the COVID-19 outbreak.

Financial Information · 第 460 页

Save as the other receivables from Beijing Youyang, for which impairment provisions has been made in full for the six months ended June 30, 2023, and the RMB9.5 million other receivables from Hangzhou Penguin Technology Co., Ltd. as of June 30, 2023, all other advances and receivables from business partners as of June 30, 2023 had been subsequently settled.

Financial Information · 第 460 页

贸易应收款大幅上升且逾期款项增加

Our impairment losses on financial assets increased from RMB0.4 million in 2021 to RMB4.6 million in 2022, primarily due to the increase in our impairment losses on trade receivables, as our trade receivables increased from RMB14.9 million as of December 31, 2021 to RMB134.3 million as of December 31, 2022.

Financial Information · 第 307 页

The overall increase throughout the Track Record Period was primarily due to the increase in the trade receivables as we expanded sales channels, where we grant credit terms to eligible customers up to 180 days.

Financial Information · 第 323 页

As of the Latest Practicable Date, the five customers with the largest trade receivables balance aging over 90 days as of April 30, 2023 had fully settled their respective outstanding trade receivables as of April 30, 2023.

Financial Information · 第 321 页

预付款项规模较大且有所波动上升

Our prepayments, other receivables and other assets increased from RMB294.1 million as of December 31, 2020 to RMB479.3 million as of December 31, 2021, primarily representing an increase in the prepayments to our major suppliers.

Financial Information · 第 324 页

Our prepayments, other receivables and other assets increased from RMB440.1 million as of December 31, 2022 to RMB511.9 million as of April 30, 2023, primarily due to an increase in prepayments in relation to the inventories for sales of home meal products, including certain imported food ingredients, which was partially offset by a decrease in receivables due from online payment platforms as we settled with such platforms.

Financial Information · 第 324 页

As of August 31, 2023, RMB257.0 million, or approximately 50.2% of our prepayments, other receivables and other assets as of April 30, 2023 had been subsequently settled.

Financial Information · 第 324 页

应收账款持续增长及减值拨备

Our trade receivables increased by 85.3% from US$180.8 million as of December 31, 2020 to US$334.9 million as of December 31, 2021, and further increased by 53.5% to US$514.0 million as of December 31, 2022, and continued to increase by 18.8% to US$622.6 million as of June 30, 2023, primarily due to the growth of the express delivery services provided directly to e-commerce platforms during the Track Record Period and the growth of our cross-border business in 2021, 2022 and the six months ended June 30, 2023.

Financial Information · 第 377 页

Our trade receivables turnover days further increased to 25.5 in the six months ended June 30, 2023, primarily because of the continuous growth of our cross-border operations, which typically have longer credit terms due to the nature of the operation, and the credit terms we granted to new e-commerce platform partners.

Financial Information · 第 378 页

Our provisions as of December 31, 2021 and 2022 and June 30, 2023 were primarily related to receivables from terminated network partners of BEST Express China after the acquisition and during the subsequent integration of BEST Express China.

Financial Information · 第 378 页

预付款项及其他应收款项规模较大

Our prepayments, other receivables and other assets increased from US$703.0 million as of December 31, 2022 to US$801.8 million as of June 30, 2023, primarily due to (i) an increase in prepaid VAT and other taxes from US$482.7 million to US$512.0 million, driven by the VAT we paid in connection with our purchase of materials, goods equipments and professional services to support our expansion, (ii) an increase in deposits of US$21.3 million as performance security deposits in relation to the construction of certain facilities in China and our performance of express delivery services during the June promotional season, (iii) an increase in prepaid expenses of US$21.1 million mainly attributable to the increasing operating cost and expenses and (iv) an increase in others, attributable to the advance payments to Fengwang network partners who decided to exit the network.

Financial Information · 第 380 页

As of August 31, 2023, we had settled approximately US$329.0 million, or 41.0%, of our prepayments, other receivables and other assets outstanding as of June 30, 2023, and approximately US$309.6 million, or 69.1%, of our prepaid VAT as of June 30, 2023.

Financial Information · 第 380 页

向经销商授出信贷额度及贷款并出现违约

During the Track Record Period, we did not offer credit terms (defined as a specified number of days after which full payment becomes due) to our offline distributors in mainland China.

Business · 第 252 页

In 2020, 2021 and 2022 and the four months ended April 30, 2023, we provided loans to a total of 31 distributors and sub-distributors, with an aggregate loan amount of approximately RMB6.8 million, RMB15.9 million, nil and nil, respectively.

Business · 第 257 页

Full provision has been made with respect to Distributor II as of April 30, 2023.

Business · 第 257 页