Persistently low capacity utilisation

Hong Kong IPO disclosure precedents · 52 companies, 52 items

Disclosures of capacity utilisation that is persistently low or very low across lines or plants, including where low output fails to dilute fixed costs and pressures gross margins.

2025-07-31Prospectus
Ab&B Bio-Tech CO., LTD. JS江苏中慧元通生物科技股份有限公司02627.HK

In 2023, 2024 and the three months ended March 31, 2025, we manufactured 1.2 million, 1.8 million and nil doses of quadrivalent subunit influenza vaccine, representing a utilization rate of 30.2%, 45.8% and nil, respectively.

Business · p. 304

The utilization rate of our rabies vaccine production line and pneumococcal vaccine production line was less than 0.1% during each year/period of the Track Record Period, primarily because our rabies vaccine candidate, PPSV23 candidate and PCV24 candidate have not been commercialized and we have not commenced large-scale production of such candidates.

Business · p. 304

Therefore, we expect our First Influenza Vaccine Production Line to reach full capacity during the peak season in 2027, necessitating the use of our Second Influenza Vaccine Production Line.

Business · p. 305
The company's explanation, the adviser's view and the page in the filing: see Matters
2025-05-30Prospectus
Newtrend Group Holding Co., Ltd.新琪安集团股份有限公司02573.HK

Therefore, the production efficiency in our Xizang Plant was hindered during the Track Record Period, and we had a low utilisation rate during the Track Record Period.

Business · p. 198

Considering that the demand of food-grade glycine would increase where industrial-grade glycine is a raw material of food-grade glycine, and that the demand for industrial-grade glycine would also increase, in June 2024, we began to utilise calcium carbonate, which is alkaline in nature, to neutralise hydrochloric acid.

Business · p. 198

In the second and third quarter of 2023, we encountered difficulties in importing raw materials for our production of food-grade glycine due to the delay of the renewal of B2 Import Approval Licence, which was caused by our change of agent whom did not assist us in renewing the licence on time.

Business · p. 199
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-12-31Prospectus
Anhui Conch Material Technology Co., Ltd.安徽海螺材料科技股份有限公司02560.HK

During the Track Record Period, our maximum annual/half-year production capacity gradually increased as we established new production facilities in order to expand our geographical reach in the PRC.

Business · p. 236

Although some of our production facilities have individually exceeded its permitted level of production for certain products, the overall utilisation rate for our production facilities was still relatively low and demonstrated a general decreasing trend throughout the Track Record Period

Business · p. 236
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-12-17Prospectus
Minieye Technology Co., Ltd深圳佑驾创新科技股份有限公司02431.HK

During this initial ramp-up period, the production volume reached approximately 55,000 units, resulting in a utilization rate of 34.2% for 2022.

Business · p. 264

The production utilization rate at our Bao'an Production Base was relatively low, mainly because most of our solutions delivered in the form of hardware were mainly manufactured by our contract manufacturers during the Track Record Period and we were generally not allowed to change the production sites without relevant customers' consents.

Business · p. 264
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-06-28Prospectus
Cirrus Aircraft Limited西锐飞机有限公司02507.HK

While the entire production process for SR2X Series and Vision Jet aircraft is approximately 51 and 98 days, respectively, in 2021, 2022 and 2023, our average production rate for SR2X series was 10.3, 11.4 and 13.0 aircraft per week, and for Vision Jet 1.8, 1.9 and 2.0 aircraft per week, respectively.

Business · p. 242

Our production capacity (weekly output), actual units produced (average weekly output) and utilization rate for the SR2X Series aircraft for the five months ended May 31, 2024 was 14.0, 10.9 and 78%, respectively, as compared to 14.0, 12.1 and 86%, respectively, for the five months ended May 31, 2023.

Summary · p. 23

We expect that our production capacity will increase by approximately 12 to 60 aircraft per year by the end of 2025 and by 37 to 100 aircraft by the end of 2026 compared to 2023 production levels.

Business · p. 243
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-06-21Prospectus
METASURFACE TECHNOLOGIES HOLDINGS LIMITED元续科技控股有限公司08637.HK

For the years ended 31 December 2022 and 2023, the utilisation rates were approximately 52.5% and 40.9% for our precision machining and approximately 78.3% and 118.6% for our precision welding, respectively at our Singapore Factory and the utilisation rates were approximately 46.2% and 48.4%, respectively for our precision machining at our Malaysia Factory.

Business · p. 204

Our production facilities for precision machining were not fully utilised during the Track Record Period, primarily due to limited resources for procurement of raw materials and recruitment of skilled workers to maximise the machine hours in operation.

Business · p. 204

Therefore, our Directors believe that we have spare capacity to serve other existing customers or new customers subject to the availability of working capital and skilled workers.

Business · p. 204
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-06-05Prospectus
Cloud Factory Technology Holdings Limited云工场科技控股有限公司02512.HK

This lump-sum and all-or-nothing basis of charging requires our Group to allocate and schedule the traffic flow in order to avoid idling capacity.

Summary · p. 1

Thus, we may run the risk of idling bandwidth capacity if our clients’ demand falls short of our fixed capacity.

Business · p. 194

In order to improve bandwidth utilisation efficiency for the purpose of reducing our Group’s overall cost, we installed a sophisticated traffic-scheduling equipment in the fourth quarter of 2021, which has improved our packet port bandwidth utilisation rate.

Business · p. 243
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-03-12Prospectus
Qyuns Therapeutics Co., Ltd.江苏荃信生物医药股份有限公司02509.HK

With production of 15 batches in 2023, the utilization rate of our Taizhou Manufacturing Facility was 37.5%, including the manufacturing of our own drug candidates under development (11 batches, or 27.5% of our manufacturing capacity), the commercial scale production of QX001S (2 batches, or 5.0% of our manufacturing capacity) and CDMO services provided to Zhongmei Huadong (2 batches, or 5.0% of our manufacturing capacity) pursuant to relevant service contract.

Business · p. 365

Additionally, we have successfully developed a new drug substance upstream process, which starts a production run with high cell-density and large volume working cell bank, and therefore could significantly shorten the production time required for each batch, improve capacity utilization and lower unit manufacturing costs.

Business · p. 365

With the utilization rate of our manufacturing facility for 2023 at 37.5% (taking into account the manufacturing of our own drug candidates under development, the commercial scale production of QX001S and CDMO services provided to Zhongmei Huadong pursuant to relevant service contract), we are able to provide CDMO services to external parties as a measure to improve the utilization rate of our spare manufacturing capacity on the premise of ensuring the production plans of our own products.

Business · p. 365
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-12-08Prospectus
REPT BATTERO Energy Co., Ltd.瑞浦兰钧能源股份有限公司00666.HK

Separately, as we expand our production capacity, we typically experience a production ramp-up period before we can reach the optimal utilization rate. During ramp-up period, we would record higher unit manufacturing and direct labor costs.

Financial Information · p. 328

The higher unit labor and manufacturing costs also contributed to our net loss in the third quarter of 2023, which was primarily due to (i) the lower overall utilization rate as the customers were more prudent and reluctant to place orders in consideration of the fluctuation in raw material prices, while the fixed costs did not decrease to the same extent, and (ii) the higher costs associated with the new production facility, Liuzhou facility, which was put into trial production in July 2023.

Summary · p. 30

Our goal is to have a production capacity of over 150GWh by the end of 2025.

Business · p. 297
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-11-27Prospectus
Sino-Synergy Hydrogen Energy Technology (Jiaxing) Co., Ltd.国鸿氢能科技(嘉兴)股份有限公司09663.HK

The utilization rates for the first quarter of 2023 and the five months ended 31 May 2023 were generally lower as we carried out improvement and renovation works on our production facilities that began in December 2022 and into the first half of 2023.

Business · p. 306

With the development and further commercialization of our industry, and the effects of seasonality to be alleviated as a result, the high level of production capabilities that we maintain throughout the year to cope with the relatively concentrated production demand during the second half of the year, including equipment, machinery, production line staff, and management personnel, will be more evenly and efficiently utilized and our average production cost are expected to be reduced.

Business · p. 307
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-11-27Prospectus
DEKON FOOD AND AGRICULTURE GROUP四川德康农牧食品集团股份有限公司02419.HK

During the Track Record Period, we had a relatively low utilisation rate primarily because

Business · p. 251

(i) six feed mills were only established in 2021 with three of them commencing operations in the second and third quarter of the year, which lowered the utilisation rate in the same year;

Business · p. 251

(ii) the feed mills are designed to meet the demand from nearby farms in the long run, with a buffer in capacity to meet future operational needs in the area; and (iii) we chose to procure feed from external suppliers if, after taking into account factors including production and transportation costs, we consider that it is more cost efficient.

Business · p. 251
The company's explanation, the adviser's view and the page in the filing: see Matters

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