6-K/A Q&A
Investors Q&As regarding Form 6-K/A Furnished on May 15, 2026
May 18, 2026
The line items that have been adjusted to the 2025 interim and annual periods include revenues and accounts receivable, net, and the corresponding financial statement line items, including contract liabilities, accrued expenses and other liabilities, cost of revenues and prepayments and other current assets, the expected credit losses on accounts receivable, warranty costs and related balance, and relevant accounts for value-added tax and income tax. All these line items adjustments are related to revenues recognitions in the relevant periods. Please refer to the Form 6-K/A for more details: https://www.sec.gov/Archives/edgar/data/1759783/000119312526226594/d140313d6ka.htm
Yes. The relevant transactions involve products that have been delivered to customers. The adjustments were not caused by product delivery or order validity. The reassessment is associated with the probability to collect the substantially all of the consideration under U.S. GAAP for certain transactions with new customers.
During the year-end financial reporting process, the Company further evaluated the collectibility profile of certain transactions. Based on the facts and circumstances available at the time, including customer payment patterns and the probability of collectibility, the Company reassessed the revenue recognition for these transactions, including the timing in accordance with US GAAP.
No. This was the accounting reassessment of these contracts with customers. There are no material impacts on the fulfillment of remaining obligations from customers.
As of the date of this investors Q&A, a majority of the aggregate relevant contract considerations have been collected. As the Company continues to collect the remaining consideration related to certain impacted orders, the Company expects that the related revenues are expected to be recognized in the subsequent reporting periods, subject to satisfaction of all applicable revenue recognition criteria.
In regards to the optimization of internal control, the Company will enhance its customer credit assessment and collection monitoring processes for new customers, including differentiated evaluation standards, cross-functional reviews, and ongoing monitoring of collectibility, to support prudent and consistent revenue recognition in accordance with U.S. GAAP. The Company is in the process of designing and implementing the applicable remedial controls, and will continue to monitor their operating effectiveness.