Hong Kong IPO disclosure precedents · 45 companies, 45 items
Margin or cost pressure from newly commissioned bases in initial ramp-up (low yields, undiluted fixed costs), coupled with announced capacity expansion plans.
As new facilities take time to become fully operational, initial inefficiencies, and incremental overhead absorption can temporarily depress margins and elevate unit costs until volumes scale to targeted levels.
Financial Information · p. 204
For example, in August 2025, we announced that we planned to invest additional RMB5.0 billion in the high-end production capacity expansion and upgrade of our Jinwan production base (Zhuhai City, Guangdong Province), our core hub for high-end manufacturing in HDI, SLP, and HLC products, to better serve end markets of our products.
Financial Information · p. 204
Our gross profit margin decreased slightly from 21.4% for the six months ended June 30, 2025 to 20.2% for the six months ended June 30, 2026, primarily due to (i) the continued increase in prices of key raw materials, in particular the sustained elevation of prices of copper clad laminates; (ii) intensified price competition in the downstream automotive electronics sector; (iii) the initial ramp-up of our new production bases, where fixed costs were absorbed over lower initial output volumes; and (iv) the relatively low initial yields of our high-end production capacity, particularly for HDI PCB products.
During the Track Record Period, we had one manufacturing facility in operation – Suzhou facility. As of the Latest Practicable Date, our current production facility remains in the clinical sample production stage and has not yet commenced large-scale commercial manufacturing.
Business · p. 200
While our Suzhou facility is expected to reach a maximum full production capacity of 500 batches per year, which is sufficient to meet the demands of the early stage of commercialization, it has limited physical space for further material expansion.
Business · p. 201
Our rationale for this capacity expansion is based on the significant anticipated market demand for solid tumor treatments.
Our existing three factories operate with relatively aging production lines, and upgrading or refurbishing them would involve higher costs, while their current designed capacity is not expected to fully meet our near-term growth in shipment volume.
Financial Information · p. 211
To support anticipated shipment growth and further enhance our production capacity, we plan to establish a factory in Wuzhen, Zhejiang Province and incorporate automated production lines in such factory.
During the Track Record Period, our production capacity utilization rate for our ESC solutions was 41.0%, 63.2%, 70.8% and 64.2% respectively in 2023, 2024, 2025 and March 31, 2026.
Business · p. 165
As our production volume and production utilization capacity increase, and we optimize our manufacturing processes, we expect to realize significant economies of scale that will improve our gross margins and overall profitability.
The utilization rate of our production bases amounted to 37.3%, 68.3%, 76.3% and 67.8% in 2023, 2024, 2025 and the five months ended May 31, 2026.
Financial Information · p. 203
As production expansion involves substantial capital investment and ongoing costs, our profitability depends in part on our ability to effectively manage capacity utilization as we scale up production.
Expansion of production capacity requires significant capital investment and may temporarily increase depreciation and other fixed costs before utilization reaches optimal levels.
Financial Information · p. 190
Our manufacturing overhead increased in 2024 primarily due to the continued ramp-up of commercial production at our Zhejiang dairy production facility and our acquisition of a 60% controlling interest in Saishang Baifei in Ningxia.
Financial Information · p. 190
As production volume increased and capacity utilization improved, manufacturing overhead as a percentage of cost of sales subsequently declined, reflecting enhanced operating leverage and more efficient absorption of fixed costs.
We have established a smart manufacturing facility in Guangdong, China primarily dedicated to IFPDs, which became operational in 2024.
Business · p. 148
Accounting for the facility’s actual start of operations, its annual production capacity in 2024 was 431,500 units of IFPDs, with a utilization rate of 66.3% as we were in the process of ramping-up production.
Business · p. 148
Based on the same calculation method, its annual utilization rate in 2025 was 56.9% and 59.3% on a prorated production capacity of 127,867 units in the three months ended March 31, 2026.
During the Track Record Period, we continued to ramp up the actual output of our FCBGA substrates and FCCSP, WBCSP and module substrates, and our actual output utilization rates increased from 3.5% for FCBGA substrates and 43.8% for FCCSP, WBCSP and module substrates in 2023, to 33.3% and 83.5%, respectively, in the three months ended March 31, 2026.
Financial Information · p. 211
As a result, our future revenue and gross profit margin will be affected by our future capital expenditures, depreciation, and production capacity utilization rates.
The Mexico Production Base is still in the ramp-up stage of production capacity.
Business · p. 122
Fluctuations of our utilization rate of production capacity during the Track Record Period were primarily due to the expansion, planning and optimization of our production capacity as well as the intelligent upgrading and transformation of our production bases.
As we progress with the commercialization of our products and anticipate increasing customer demand, we expect the utilization rate of our production facilities to rise.
Financial Information · p. 231
As a result, our ability to achieve profitability depends in part on our ability to effectively manage production utilization as we expand our production activities.
Financial Information · p. 231
Our relatively high burn rate in 2023 and 2025 was primarily due to significant cash expenditure on purchasing property, plant and equipment for the construction of Guangming production base and upgrading of our existing production bases.
We have significantly increased our production capacity and output during the Track Record Period to meet growing customer demand.
Financial Information · p. 179
If actual demand or customer orders fall short of our expectations, capacity that has been added in advance, or that we are planning to add in the future, may remain underutilized for a prolonged period, driving up per-unit fixed costs and weighing on our gross margins and overall profitability.
Financial Information · p. 179
We also seek to continuously improve manufacturing efficiency, delivery capabilities and capacity utilization through strengthening demand planning and supply chain management, advancing digital operations and leveraging our platform-based product R&D and smart manufacturing capabilities.
During the Track Record Period, our average utilization rate for our production facilities was approximately 77.3%, 88.9% and 69.0%, respectively.
Financial Information · p. 207
Our utilization rate subsequently decreased to 69.0% in 2025, primarily because we substantially expanded our production capacity during the year.
Business · p. 155
As of the Latest Practicable Date, the Cambodia Facility remained in the ramp-up stage and accounted for less than 10% of our total production capacity.
in anticipation of the growing market demand, we made early investments in production capacity, resulting in higher costs such as depreciation and manufacturing overhead costs;
Summary · p. 5
The total designed production capacity of our harmonic reducers increased from 161.3 thousand units in 2023 to 322.3 thousand units in 2025, reflecting our forward-looking capacity planning.
Business · p. 163
As our order volume continues to grow we aim to further improve our capacity utilization.
In light of our relatively high production capacity utilization rates and the increase in market demand, we are in the process of constructing a new production facility in Xiamen, Fujian province, which is primarily intended for the manufacturing of larger-scaled products.
Business · p. 162
The facility, once fully put into operations, is expected to have an aggregate annual production capacity of approximately 200,000 units of parking products under our current production configuration.
Business · p. 162
We expect to incur a total capital expenditure of approximately RMB211 million based on our initial planning for the construction of the above-mentioned new facility, which will be funded primarily through cash flows generated from operating activities and financing activities.
During the Track Record Period, we adopted a staged commencement model to optimize resource allocation and capacity planning.
Business · p. 183
Of the total site area of over 16,000 m^2^, approximately 8,000 m^2^ has been fully commissioned and is currently in active use, comprising production workshops, quality control laboratories, material warehouses, and administrative zones.
Business · p. 183
In particular, prior to the commencement of potential registrational clinical trials for future indications, including NSCLC, we expect to further increase manufacturing capacity to support anticipated clinical and commercial supply requirements.
Based on this assessment, we believe that our facilities are operating close to their maximum capacity in respect of the deployment of staff, research animal hosting and breeding space and available floor space.
Business · p. 158
We plan to fund the equipment and laboratory facilities for such facility with net proceeds from the [REDACTED].
As of December 31, 2025, the total designed production capacity of these three production bases has reached 152,000 tonnes per annum, and our production utilization rate increased from 53.0% in 2023 to 55.7% in 2024 and further to 66.1% in 2025.
Financial Information · p. 189
We believe that our long-term growth is partly dependent on our ability to continuously expand production capacity to meet the increasing demand for our products.
Our impairment losses increased by 49.2% from RMB17.7 million in 2024 to RMB26.4 million in 2025, primarily due to higher provisions for inventories, which were mainly attributable to the ramp-up of our newly expanded capacity.
Financial Information · p. 135
During this ramp-up period, relatively lower utilization rates led to higher unit production costs, thereby reducing the net realizable value of certain inventories and resulting in increased impairment provisions.
Financial Information · p. 135
Since then, gold price fluctuations moderated and our utilization rates also improved.
For example, International Trade Mart Districts 1–5 recorded booth occupancy rates of 98.1%, 98.7% and 99.1% in 2023, 2024 and 2025, respectively, while Huangyuan Market recorded 96.9%, 97.0% and 96.9% in the same years.
Financial Information · p. 212
The Global Digital Trade Center came into operation in October 2025 and recorded a booth occupancy rate of 72.8% as of December 31, 2025.
Financial Information · p. 212
Our ability to recruit merchants into targeted sectors, build product category clusters and generate buyer traffic affects the pace at which The Global Digital Trade Center achieves desired utilization and contributes to our results of operation.