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.
Our Honghualing factory has a monthly designed production capacity of approximately 46,800 units, with a utilization rate of approximately 24.8% in June 2023.
Business · p. 209
We are still in the ramp up period of our production and expect to increase our utilization rate in the future for potential incoming orders.
Business · p. 209
For example, the utilization rate of our Honghualing factory improved from 24.8% in June 2023 to 67.1% in October 2023.
The utilisation rate of our in-house LNG production is high, we will therefore procure LNG from third-party suppliers when the demand exceeds the supply of LNG produced in-house or when the price spread is considered favourable to us.
Business · p. 227
The sales volume of our products was primarily capped by our production capacity during the Track Record Period.
Financial Information · p. 339
Upon commencement of commercial operation in October 2023, the total production capacity has been doubled from our production capacity per annum since 2020 and reached a total of 400,000 tonnes (measured in terms of the processing capacity of crude benzene) per annum.
The utilization rate of our facilities at Wuxi site for bioconjugate drug substance manufacturing was 51%, 73% and 85% in 2020, 2021 and 2022, respectively.
Business · p. 195
We will continue to assess our manufacturing capacity from time to time based on the projects in our pipeline and the utilization rate of our manufacturing facilities in operation.
Business · p. 197
We seek to expand our manufacturing capabilities and capacity at the Wuxi site, so that our capabilities encompass the full-spectrum from antibody intermediates to drug products to achieve self-sufficient operations, and our capacity meets the needs of multiple late-stage bioconjugate development and manufacturing projects.
There is no direct correlation between the trend of the increase in our OEM production volume and the trend of the decrease in our production utilization rate from 2020 to 2022, which was primarily attributable to our continuous expansion of designed capacity.
Business · p. 192
As expanding in-house production capabilities is crucial for us in the long run to manage our production and supply chain, better meet growing customer demands and control costs, we plan to continuously expand our internal production capacities as the primary approach to meet the market demands for our products.
The estimated utilisation of Huizhou Production Base in FY2023 will be low as we assumed trial production will commence 1st quarter of 2024 after we apply proceeds for the development. Also, we need time to produce sample with our customers before mass production.
Business · p. 246
In any event, despite the expected annual maximum production capacity of biodegradable plastic products after expansion will increase from 6,440 tonnes to 46,368 tonnes (i.e., Changchun: 28,840 tonnes and Huizhou: 17,528 tonnes), the expansion plans are commercially justifiable given we expected there will be a potential increase in market demand, in terms of sales revenue of (i) biodegradable produce bag rolls and (ii) biodegradable shopping bags in China.
Business · p. 268
Lastly, we have considered that the maximum capacity should be able to support its expansion not only for 2-3 years as the useful life of these production machines, if properly maintained, could be 10 years or longer.