Financial Performance and Revenue - The eCommerce sales channel represented approximately 15% of total net revenue in fiscal year 2025, indicating a significant growth opportunity for the company[144]. - The company’s ability to pay interest on debt obligations depends on future operating performance, which is influenced by economic conditions beyond its control[139]. - The company has approximately $70.7 million in customer deposits as of December 28, 2025, which could be at risk due to potential disruptions in financial markets[165]. - Changes in tax laws, such as the "One Big Beautiful Bill Act" signed on July 4, 2025, may adversely affect the company's effective tax rate and overall financial condition[160]. - The company's estimated total addressable market is subject to significant uncertainty, which could limit future growth opportunities if overestimated[161]. - The company plans to grow its store base by opening new stores in areas with existing home furnishings demand, but profitability will depend on lease rates and retail sales[162]. - The company may incur charges for impairment of long-lived assets if sales or earnings expectations for remodeled or relocated stores are not met[162]. - The company may experience fluctuations in stock price due to various factors, including changes in customer preferences and economic conditions[208]. - The company is engaged in ongoing legal proceedings that could divert management resources and incur additional costs[202]. Marketing and Customer Relations - The company relies on third parties for digital marketing, which may negatively impact business if algorithms or policies change, potentially increasing marketing costs[142]. - The company’s marketing initiatives may become increasingly expensive, and generating a return on these initiatives may be challenging[142]. - The company’s brand may be adversely affected by various incidents, including social and environmental issues, which could diminish customer demand[141]. Compliance and Regulatory Risks - The company must comply with Section 404 of the Sarbanes-Oxley Act, requiring an assessment of internal control effectiveness, which could impact stock value if weaknesses are identified[155]. - The company is in the early stages of establishing internal controls over financial reporting, which may affect investor confidence if not managed effectively[154]. - Compliance with evolving data privacy and security laws, such as the California Consumer Privacy Act, may impose significant costs and operational changes on the company[171]. - The company is subject to various federal and state laws regarding the processing of personal information, which could result in legal actions and financial penalties if not complied with[169]. - Compliance with evolving data protection regulations may result in additional costs and potential fines for the company[185]. - The company incurred significant legal, accounting, and compliance costs as a public entity, which are expected to increase due to regulatory requirements[209]. Operational Risks - The company faces risks related to personal injury and product liability claims, which could harm its reputation and financial condition[146]. - The company maintains a reserve for warranty claims, but there is no assurance that this reserve will be adequate, which could lead to significant costs[148]. - The company must effectively manage inventory levels to avoid excess or shortages, which could materially affect financial performance[152]. - Disruptions in the company's information systems, including its website, could lead to reduced net revenues and reputational damage[177]. - The company relies on its information systems for transaction processing and business management, making their reliability critical for operations[177]. - The successful execution of growth strategies, particularly in online capabilities, depends on the implementation of new information technology systems[178]. - The company experienced a cybersecurity incident in September 2024, resulting in an operating results impact, particularly on comparable sales for Q3 FY 2024[183]. - The company received $5.1 million in insurance recoveries for lost profits and additional costs related to the cybersecurity incident in FY 2025[183]. - The company relies on various payment methods, which expose it to compliance requirements and potential fraud risks, potentially increasing operating costs[180]. - The company faces risks related to the adoption of new technologies, particularly artificial intelligence, which may require substantial resources and could impact financial performance if not integrated effectively[179]. - Unauthorized disclosure of sensitive information could lead to significant financial losses and reputational damage for the company[185]. - The company is exposed to potential legal claims regarding intellectual property rights, which could result in costly litigation and operational disruptions[193]. - The company is exposed to risks from litigation related to product safety and employment matters, which could lead to financial liabilities[200]. Corporate Governance and Ownership - Bain Capital owns approximately 73% of the company's common stock, controlling major corporate decisions and potentially conflicting with other shareholders' interests[212]. - The company is classified as a "controlled company," allowing it to rely on exemptions from certain corporate governance requirements, potentially making its stock less attractive to some investors[216]. - Bain Capital has the right to nominate a varying percentage of directors based on its ownership stake, ranging from 50% to 3% of shares[217]. - Approximately 73% of outstanding common stock holders have rights to require the company to file registration statements for public sale of their shares[226]. Financial Instruments and Market Risks - The company is subject to restrictive covenants under the ABL Credit Agreement, which may limit its ability to incur additional indebtedness or execute business strategies[196]. - The amount of borrowings permitted under the Revolving Credit Facility may fluctuate significantly, affecting the company's financial condition and liquidity[198]. - The company is exposed to foreign currency exchange risk, but the impact was not significant for fiscal years 2025, 2024, and 2023[347]. - Interest rate risk is primarily associated with borrowings under the credit facility, with previous interest rate cap agreements having expired[348]. - Higher inflation periods may reduce discretionary consumer spending and increase costs, impacting profitability, particularly in ocean freight[349].

Customer Agreements and Revenue - The company signed a long-term agreement with its largest customer for AI-enabled computer racks, with a minimum expected monthly volume[21]. - The long-term agreement includes provisions for pricing updates to reflect increased power demands and capital expenditures[21]. - The company signed a long-term agreement with its largest customer for systems integration services for AI-enabled computer racks, with an expected minimum monthly volume[21]. - Revenues from the primary OEM customer comprised approximately 99%, 99%, and 96% of total revenues for the years ended December 31, 2025, 2024, and 2023, respectively[46]. - The long-term agreement with the largest customer includes updated pricing to reflect increased power demands and capital expenditures, extending the term by an additional two years[22]. Capital Expenditures and Facility Enhancements - Capital expenditures of approximately $40 million were completed in 2025 to enhance the new facility's electrical power and cooling capabilities[21]. - The company has invested over $40 million in a new integration facility in Georgetown, Texas, significantly increasing electrical power and cooling capabilities[47]. - Capital expenditures of approximately $40 million were completed for improvements to the new headquarters and production facility, primarily to increase electrical power and cooling capabilities[21]. Operational Capabilities and Services - The company has integrated over 500 modular data centers (MDCs) and currently maintains over 100, indicating strong operational capabilities[27]. - The company provides 24x7 network operations support, monitoring critical systems to prevent outages and ensure operational efficiency[31]. - The company’s systems integration services are designed to accelerate the assembly and delivery of complex IT solutions, enhancing competitive advantage[25]. - The company continues to adapt its systems integration business to support new power and cooling technologies, including direct liquid-cooled IT solutions[17]. - The company aims to expand its service offerings and maximize market opportunities through selective strategic partnerships and acquisitions[47]. Market Demand and Strategic Focus - The strategic procurement services volume grew significantly in 2024 and 2025, reflecting increased customer demand for integrated IT solutions[23]. - The company anticipates increased demand for MDCs as enterprises seek efficient deployment of AI-enabled servers without the costs of traditional data center construction[27]. - The company is pursuing diversification of its customer base through expanded procurement services and AI rack integration for additional OEMs and value-added resellers[49]. - The company’s operational focus is to maintain strong relationships with key OEM customers to mitigate risks associated with volume declines[17]. - The company is focused on enhancing customer relationships and increasing net sales, operating performance, and market share through cost-effective systems integration and lifecycle management[47]. Labor and Employment Challenges - The company’s relationship with employees is considered satisfactory, with 286 full-time employees and approximately 64 temporary workers as of December 31, 2025[44]. - The company faces challenges in hiring and retaining qualified personnel, which could increase costs and limit growth opportunities[57]. - Labor market conditions have led to increased labor costs, and the company is investing in HR automation tools to manage these challenges[58]. - From 2023 to 2025, the company plans changes to its executive leadership team and has faced increased wage pressure in the Austin, Texas market, necessitating higher wages and improved employee benefits[58]. Financial and Operational Risks - Supply chain challenges could negatively affect the integration business by delaying the supply of parts needed for services, impacting revenue recognition and profitability[56]. - The procurement business requires significant working capital, and disruptions in vendor credit could materially affect liquidity and operating results[62]. - A prolonged U.S. federal government shutdown could materially impact revenues and cash flows from the procurement segment, affecting overall business operations[54]. - The competitive landscape in the mission-critical IT industry is intensifying, leading to price pressure and reduced growth opportunities[66]. - Most contracts are cancelable on short notice, which could prevent the company from recognizing potential revenue and profit[67]. - The majority of revenue comes from fixed-price contracts, and inaccurate cost estimates could impair financial performance[70]. - A material weakness in internal controls over financial reporting has been identified, which could lead to misstatements in financial statements[80]. - The company continues to face cybersecurity threats that could disrupt operations and require public disclosure under SEC rules[79]. Strategic Partnerships and Market Positioning - The company aims to expand its services portfolio penetration with new and existing customers through direct selling resources and co-selling with partners[47]. - The company has a selective hiring strategy in sales and marketing to align skill sets with evolving service offerings and increase consultative capabilities[40]. - The company is focused on maintaining key alliances and creating new partnerships with various technology and engineering firms to expand service offerings[41]. - The company’s operational excellence and cost competitiveness are critical for enhancing manufacturing capabilities and optimizing production capacity[47].

Casino Operations - Casinos Poland operates six casino licenses in Poland, with a 66.6% ownership by the subsidiary CRM[30]. - The company is exploring additional gaming projects and acquisition opportunities, acknowledging various risks that could affect project feasibility[32]. - A comprehensive strategic review was initiated in August 2025 to explore alternatives for enhancing shareholder value, including potential mergers and divestments[33]. Partnerships and New Ventures - In May 2025, the company partnered with BetMGM to operate a sports book in Cape Girardeau, with online betting starting on December 1, 2025, including a guaranteed minimum percentage of net gaming revenue[31]. Financial Performance - Earnings from operations in 2025 were reported at $51.3 million[287]. - As of December 31, 2025, the company has a total debt of $337.7 million, with the majority being variable-rate debt[283]. - A 1% change in the variable-rate debt would result in a $3.4 million change in annual cash interest expenses[283]. Competition and Market Dynamics - The company faces intense competition from larger casinos, utilizing targeted marketing efforts and a proprietary database to enhance customer loyalty[34]. - The company anticipates increased competition from online gaming in Alberta following the passage of Bill 48, which will create an open market for online sports betting and iGaming[42]. - The company operates in highly competitive markets, with specific competitors identified in various regions, including 11 competitors within a half mile of Cripple Creek and Central City casinos[38]. Employee and Operational Insights - As of December 31, 2025, the company employed 2,911 full-time and 845 part-time employees, with a focus on employee development and training programs[55][57]. - Seasonal trends affect customer influx, with winter weather impacting business levels and specific months attracting more visitors due to events and outdoor activities[45][46]. Currency and Financial Risks - The company is exposed to foreign currency exchange risk, particularly with the US dollar against the Canadian dollar and the Polish zloty[285]. - In 2025, the change in the relative value of the US dollar resulted in a $1.3 million decrease in accumulated other comprehensive loss, while in 2024, it resulted in a $2.4 million increase[285]. - A 10% depreciation of the US dollar relative to the Canadian dollar and Polish zloty would have increased earnings from operations by $1.6 million[287]. - The company has not hedged against foreign currency exchange rate changes related to its international operations[284]. - Foreign subsidiaries hold the majority of their assets and liabilities in their local currencies, leading to volatility in earnings[284]. - Revenue and expenses are translated at each period's average exchange rate, affecting the results of operations[286]. - As of December 31, 2025, the company's debt is primarily held in US dollars[288].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-40608 ESTRELLA IMMUNOPHARMA, INC. (Exact name of Registrant as specified in its Charter) | Delaware | | 86-1314502 | | --- | --- | -- ...

Financial Performance - The net loss for the year ended December 31, 2025, was approximately $13.1 million, up from a net loss of $8.8 million for the twelve months ended December 31, 2024, representing a 49% increase [468]. - The company reported net cash used in operating activities of approximately $1.8 million for the year ended December 31, 2025 [474]. - The company expects significant increases in expenses and operating losses as it advances its product candidates through clinical development, raising concerns about its ability to continue as a going concern [470]. Research and Development - The company incurred approximately $10.2 million in research and development expenses for the year ended December 31, 2025, compared to $6.4 million for the twelve months ended December 31, 2024, reflecting a 59% increase [465]. - The total fees agreed upon with Eureka for the STARLIGHT-1 clinical trial amount to $33.0 million, with approximately $16.4 million already incurred as of December 31, 2025 [472]. - The company has accrued approximately $12.4 million in related-party liabilities for milestones associated with the STARLIGHT-1 clinical trial as of December 31, 2025 [460]. Cash and Capital - As of December 31, 2025, the company had cash and cash equivalents of approximately $1.4 million and a working capital deficit of approximately $11.9 million [469]. - The company completed a private placement between May and September 2025, raising gross proceeds of approximately $2.4 million [471]. General and Administrative Expenses - General and administrative expenses increased to approximately $2.8 million for the year ended December 31, 2025, compared to $2.4 million for the twelve months ended December 31, 2024, a 17% increase [467]. Stock-Based Compensation - The fair value of stock-based compensation is estimated using the Black-Scholes-Merton option-pricing model, which includes assumptions about the fair market value of stock, expected life, volatility, and risk-free interest rate [489]. - Stock-based compensation expense could be materially impacted if different assumptions were used for future grants [490]. - The company accounts for the fair value of equity instruments issued to non-employees using the more reliable measure between the fair value of services received or the equity instrument [491]. - Compensation expense for awards with graded vesting is recognized over the requisite service period, generally equal to the vesting term [492]. Accounting Standards - The company has elected to use the extended transition period for complying with new or revised accounting standards as permitted by the JOBS Act [493]. Derivative Liability - As of December 31, 2025, the fair value of the derivative liability related to the True-Up Shares was valued at $356,505, with a volatility of 107% to 115% and a risk-free rate of 3.5% to 3.6% [488].

Financial Performance - The company incurred a net loss of approximately $17.8 million for the year ended December 31, 2025, which included $4.4 million in general and administrative expenses and $14.3 million in losses from changes in fair value of derivative warrant liabilities [295]. - The company had a working capital deficit of approximately $8.2 million as of December 31, 2025, indicating liquidity challenges [286]. - The company recognizes non-operating income from investment income in the Trust Account, but will not generate operating revenues until after completing the initial business combination [294]. Initial Public Offering - The Initial Public Offering raised gross proceeds of $60.0 million from the sale of 6,000,000 Units at $10.00 per Unit, with offering costs of approximately $3.7 million [256]. - The underwriter received an underwriting discount of $0.14 per Unit, totaling approximately $0.8 million, paid at the closing of the Initial Public Offering [301]. - An additional deferred fee of $0.35 per Unit, amounting to $2.1 million, will be payable to the underwriter upon completion of a business combination [301]. Trust Account and Investments - The company placed approximately $64.1 million in the Trust Account, invested in U.S. government securities with a maturity of 185 days or less [259]. - The company withdrew approximately $1.9 million from the Trust Account for tax liabilities, with $0.89 million paid for 2023 taxes [268]. - The Sponsor extended Overfunding Loans totaling $947,850 to be deposited in the Trust Account, with repayment or conversion options upon the initial business combination [303]. - As of December 31, 2025, the outstanding amount under the Convertible Note was $1,191,667, with all proceeds contributed into the Trust Account [305]. Business Combination and Extensions - Shareholders approved an extension of the deadline for completing the initial business combination from January 4, 2024, to January 29, 2024, with the option for up to twenty-three additional one-month extensions [263]. - Shareholders approved a further amendment to extend the deadline for the initial business combination to January 29, 2026, with the option for five additional one-month extensions [265]. - The Proposed Business Combination with Horizon is expected to close in March 2026, subject to shareholder approvals and other customary closing conditions, including a minimum cash condition of $45 million [278]. - The PIPE Subscription Agreements related to the Proposed Business Combination involve an aggregate investment of approximately $110.4 million, which may increase to approximately $111.9 million due to additional investors [280]. Stock and Trading Information - The trading of the company's Class A common stock was suspended on September 29, 2025, due to failure to complete the initial business combination within the required timeframe [273]. - The company transitioned to trading on the OTCQB Market and OTCID Market effective September 30, 2025, under new symbols [274]. Tax and Regulatory Matters - The Inflation Reduction Act of 2022 introduced a 1% federal excise tax on certain stock repurchases by publicly traded corporations, effective January 1, 2023 [269]. - The company filed its excise tax return related to the January 2024 Redemption, paying approximately $570,000, which included $420,000 in Excise Tax and $150,000 in penalties and interest [271]. Convertible Notes and Warrants - The company issued a non-interest bearing Convertible Note to Harry You with a principal amount of up to $1.75 million, which may be converted into warrants upon the consummation of the initial business combination [264]. - A Convertible Note was issued with a principal amount of up to $1.75 million, which may be converted into warrants at a price of $1.00 per warrant upon the initial business combination [304]. - The fair value of the embedded conversion option of the Convertible Note was de minimis as of December 31, 2025 [306]. - The warrants issued were recognized as derivative liabilities and will be adjusted to fair value at each reporting period [308]. - The fair value of Public Warrants is measured based on the listed market price, while Private Placement Warrants are valued using the Monte Carlo simulation method [308]. Company Status and Growth - As of December 31, 2025, there were no off-balance sheet arrangements or contractual obligations [309]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [310].

Lithium Refinery Development - Stardust Power's Muskogee lithium refinery is expected to produce up to 25,000 metric tons per year of battery-grade lithium carbonate in Phase I, with a planned total capacity of 50,000 metric tons per year[2] - The estimated capital expenditure (CapEx) for Phase I of the refinery is approximately $500 million[2] - The company raised $13.2 million in equity capital and secured up to $10.0 million in debt financing to support the development of the lithium refinery[3] - The company completed an independent third-party review confirming low technical and design risk for the Muskogee lithium refinery project[3] - Stardust Power entered into non-binding feedstock supply agreements totaling up to 13,500 metric tons per year of lithium carbonate equivalent[3] Financial Performance - The net loss for the year ended December 31, 2025, was $15.7 million, an improvement from a net loss of $23.8 million in 2024[6] - Loss per share decreased to $2.13 for 2025, compared to $5.55 for the previous year[6] - Net cash used in operating activities decreased to $8.3 million in 2025 from $9.7 million in 2024[6] - As of December 31, 2025, the company had cash and cash equivalents of approximately $3.5 million[6] - The company has established a $10.0 million synthetic ATM equity facility to provide flexible access to capital for project advancement[6]

Lithium Refinery Development - Stardust Power's Muskogee lithium refinery is expected to produce up to 25,000 metric tons per year of battery-grade lithium carbonate in Phase I, with a planned total capacity of 50,000 metric tons per year[2] - The estimated capital expenditure (CapEx) for Phase I of the refinery is approximately $500 million[2] - The company raised $13.2 million in equity capital and secured up to $10.0 million in debt financing to support the development of the lithium refinery[3] - The company completed an independent third-party review confirming low technical and design risk for the Muskogee lithium refinery project[3] - Stardust Power entered into non-binding feedstock supply agreements totaling up to 13,500 metric tons per year of lithium carbonate equivalent[3] Financial Performance - The net loss for the year ended December 31, 2025, was $15.7 million, an improvement from a net loss of $23.8 million in 2024[6] - Loss per share decreased to $2.13 for 2025, compared to $5.55 for the previous year[6] - Net cash used in operating activities decreased to $8.3 million in 2025 from $9.7 million in 2024[6] - As of December 31, 2025, the company had cash and cash equivalents of approximately $3.5 million[6] - The company has established a $10.0 million synthetic ATM equity facility to provide flexible access to capital for project advancement[6]

Financial Performance - Fourth quarter revenues were $39.9 million, down 15.4% from $47.1 million in Q4 2024[6] - Net income for Q4 2025 was $2.2 million, or $0.30 per share, compared to a net loss of $2.4 million, or $0.33 per share, in the prior year[8] - Full year revenues in 2025 were $159.6 million, down 13.9% from $185.2 million in 2024[9] - Operating income for 2025 was $0.4 million, an 81.6% decrease from $2.1 million in 2024[9] - Positive EBITDA of $1.0 million in Q4 2025 compared to negative EBITDA of $0.3 million in Q4 2024[7] - Adjusted EBITDA for the year ended December 31, 2025 was $6,898,000, down from $13,987,000 in 2024, representing a decrease of about 50.7%[23] - Revenue for the year ended December 31, 2025 was $159,570,000, a decline of approximately 13.8% from $185,242,000 in 2024[24] - The adjusted operating margin for Q4 2025 was 0.2%, down from 4.6% in Q4 2024[23] - Contribution margin for the year ended December 31, 2025 was $4,858,000, compared to $9,646,000 in 2024, indicating a decrease of about 49.7%[24] Segment Performance - Customer Care segment revenue was $13.7 million, accounting for 34% of total revenue, down 9% year-over-year[7] - Fulfillment & Logistics Services segment revenue was $17.3 million, representing 44% of total revenue, down 17% year-over-year[7] - Revenue Solutions segment revenue was $8.9 million, a decrease of 22% compared to the prior year quarter[7] Cash and Assets - The company ended 2025 with a cash balance of $5.6 million, down from $9.9 million at the end of 2024, with zero debt[10] - Total assets decreased from $101,782,000 in 2024 to $91,826,000 in 2025, a decline of approximately 9.3%[22] - Cash and cash equivalents decreased from $9,934,000 in 2024 to $5,587,000 in 2025, a decline of approximately 43.5%[22] - The company’s pension liabilities for qualified plans decreased from $5,445,000 in 2024 to $4,106,000 in 2025, a reduction of about 24.6%[22] Liabilities and Expenses - Total current liabilities decreased from $26,734,000 in 2024 to $24,249,000 in 2025, a reduction of approximately 9.2%[22] - The company reported restructuring expenses of $1,782,000 for the year ended December 31, 2025, compared to $2,402,000 in 2024[24] Future Outlook - The company aims to deepen customer relationships to drive profitable growth and long-term value for shareholders in 2026[3]

Financial Performance - For the full year 2025, ZTO's adjusted net income reached RMB9.5 billion (US$1.36 billion) with a net cash generated from operating activities of RMB11,968.4 million (US$1.71 billion) [4][12] - In Q4 2025, revenues were RMB14,510.7 million (US$2,075.0 million), an increase of 12.3% from RMB12,919.7 million in Q4 2024 [7][14] - Total revenues increased by 10.9% to RMB49,098.7 million (US$7,021.0 million) from RMB44,280.7 million last year, driven by an 11.3% growth in express delivery services [32] - Net income rose by 3.9% to RMB9,235.7 million (US$1,320.7 million) compared to RMB8,887.6 million last year, primarily due to a lower provision for impairment charges [46] - Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB11.38 (US$1.63), an increase from RMB10.95 last year [47] - Adjusted EBITDA was RMB15,045.6 million (US$2,151.5 million), down from RMB16,354.9 million in the same period last year [48] - Net income for Q4 2025 was RMB2,693,217, representing a year-over-year increase of 10.1% from RMB2,446,809 in Q4 2024 [83] - Adjusted net income attributable to ordinary shareholders for the year ended December 31, 2025, was RMB9,357,678, a 9.1% increase compared to RMB8,816,835 in 2024 [86] Operational Metrics - The parcel volume for Q4 2025 was 10.6 billion, representing a 9.2% increase from 9.7 billion in Q4 2024 [13] - ZTO's gross profit for Q4 2025 was RMB3,681.9 million (US$526.5 million), a decrease of 2.1% from RMB3,759.7 million in Q4 2024, resulting in a gross margin of 25.4% [20] - Total cost of revenues for Q4 2025 was RMB10,828.8 million, an increase of 18.2% from RMB9,160.0 million in Q4 2024 [17] - The company reported an income from operations of RMB10,474,861 (US$1,497,886) for the year ended December 31, 2025 [74] - The company reported share-based compensation expenses of RMB2,993 for Q4 2025, down from RMB6,768 in Q4 2024 [86] - The company handled 10.6 billion parcels in Q4 2025, achieving a market share of 19.6% in China's express delivery industry [100] Shareholder Returns and Dividends - The company announced a US$1.5 billion new share repurchase program and a semi-annual dividend of US$0.39 per share [3][12] - The board approved a cash dividend of US$0.39 per ADS and ordinary share for the six months ended December 31, 2025, representing a 40% dividend payout ratio [53] - The company completed the existing share repurchase program, repurchasing 59,839,819 ADSs for US$1.39765 million, with total repurchases reaching 85,467,295 Class A ordinary shares by February 28, 2026 [54] - A new share repurchase program was approved, authorizing up to US$1.5 billion in share repurchases over the next 24 months, effective from March 20, 2026 [55] - The company targets an aggregate annual shareholder return ratio of no less than 50% of its adjusted net income for the prior fiscal year, starting from 2026 [56] Assets and Liabilities - Total current assets as of December 31, 2025, amounted to RMB33,964.70 million, a decrease of 11.5% from RMB30,353.72 million in 2024 [76] - Total assets as of December 31, 2025, were RMB91,023.99 million, a decrease of 1.4% from RMB92,340.33 million in 2024 [79] - Total liabilities as of December 31, 2025, were RMB23,887.58 million, a decrease of 19.6% from RMB29,665.50 million in 2024 [79] - Cash and cash equivalents as of December 31, 2025, were RMB10,046.72 million, down from RMB13,530.95 million in 2024, representing a decrease of 25.8% [80] - The company’s retained earnings as of December 31, 2025, were RMB42,918.86 million, a decrease of 9.1% from RMB39,098.55 million in 2024 [79] Market Position and Strategy - The company has maintained the 1 market share by parcel volume in China's express delivery industry since 2016 and is recognized as the most profitable among its peers [100] - The company is focused on expanding its network partner model, which has increased its market share from 34% in 2011 to 72% in 2025 [108] - The express delivery market in China is projected to see a stable and healthy volume growth, with a market share concentration increasing from 71.4% in 2011 to 80.5% in 2025 for the top six companies [130] - The company anticipates an incremental parcel volume of over 100 billion from 2021 to 2026, driven by continued economic growth and higher e-commerce penetration [133] - The company is exploring new e-commerce formats and cross-border opportunities to capture diversified service demands [128] Technology and Innovation - The company has a strong in-house R&D capability, with approximately 1,100 tech talents and 279 patents, enhancing its competitive edge [166] - The company is testing next-generation automation technologies, including unmanned vehicles and hybrid drones, to improve operational efficiency [167] - The company aims to optimize routing planning based on data insights, enhancing overall operational performance [168] - The company has been certified as a "High and New Technology Enterprise" since 2017, benefiting from significant tax advantages [166] Sustainability and Corporate Responsibility - The company is committed to sustainability through continuous ESG practices, enhancing its operational capabilities and cost efficiencies [111] - The company emphasizes a "shared-success" philosophy in its partner network, which is expected to drive growth and operational efficiencies [94] - The fee-sharing mechanism implemented across the network continues to balance profitability among outlets, ensuring operational efficiency [138]