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.
During the Track Record Period, our utilization rates remained stable, reflecting our ongoing efforts to maintain a prudent capacity buffer to accommodate demand fluctuations and preserve operational flexibility.
Business · p. 176
The decrease in the utilization rate for automotive optoelectronics in 2025 was primarily attributable to adjustments made to our product development plan in response to our customers’ ongoing upgrades of their product offerings.
Business · p. 176
In 2025, as industry inventory levels gradually normalized and telecom operators’ procurement activities became more stable, together with the our continued efforts to optimize our product mix and production capacity allocation, the utilization rate for others has significantly improved compared to 2024.
During the Track Record Period, the decrease in the utilization rates of our production lines was primarily due to lower production output in response to decreased customer demand for battery-swapping stations and battery-swapping modules.
Business · p. 148
In response to such market conditions, we adopted a measured and disciplined production approach by calibrating production output with actual customer demand and delivery schedules, rather than building inventory or scaling production ahead of confirmed orders.
We have maintained utilization rates between 61% and 75% during the Track Record Period, which we believe would provide us with a reasonable buffer in production capacity to cater for further business growth.
Business · p. 123
For the year ended March 31, 2024, our utilization rate was relatively high at 75% as we increased our output due to relatively low inventory as of the beginning of the year ended March 31, 2024.
Business · p. 123
We have since completed the installation works, and have resumed full operations of the facility from May 2026.
During the Track Record Period, our utilization rate for our semi-solid formulations was relatively lower in 2024, primarily because we proactively commissioned additional production lines in anticipation of our advancing product pipeline, and these newly established lines were still in the early stages of capacity ramp-up.
Business · p. 143
The utilization rate for solid dosage forms was relatively lower in 2023 and 2024, as the relevant products were either pending approval or had recently received approval.
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.
Overall drug substance line utilization rate | 36.6% | 32.9% | 39.1%
Business · p. 195
The output of Chengdu facility shown in the table represents sample production for preclinical and clinical trials.
Business · p. 195
Following JZB30’s NDA approval in April 2025, we are preparing the Chengdu lines for dedicated-line commercial production of high-activity products to enable in-house commercial manufacturing of JZB30.
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.
During the Track Record Period, we had production utilization rates of 72.5%, 94.0% and 100.8% in 2023, 2024 and 2025, respectively.
Financial Information · p. 184
We regularly review production utilization, optimize processes and upgrade equipment to unlock additional capacity and respond swiftly to evolving customer needs.
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.
This margin contraction was primarily driven by substantial costs incurred from leasing computing resources as we continued to improve our products and services, while utilization of such computing resources was gradually ramping up.
Business · p. 140
We plan to maximize the productivity of our computing infrastructure through a combination of technology-driven improvements and intelligent scheduling strategies:
Business · p. 143
This approach improves our around-the-clock cluster utilization rate and spreads our fixed computing resource costs across a larger volume of billable activity, directly compressing per-unit costs.
Our manufacturing center has an annual aggregate production capacity of approximately 8,000 tonnes, covering a wide range of product categories such as infant formula milk powder, general dairy products, nutritional supplements, specialty dietary foods and probiotics.
Business · p. 145
The actual production volume of our production facilities amounted to approximately 2,274, 4,081 and 4,155 tonnes in 2023, 2024 and 2025, respectively, with an utilization rate^(1)^ of 29.3%, 52.5% and 53.5% during the same years.
Business · p. 145
We employ a flexible manufacturing strategy that combines in-house production with third-party contract manufacturing as well as procurement of finished products to optimize capacity utilization, ensure product quality, and allow us to respond efficiently to market demand.
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.
In 2023, 2024 and 2025, our utilization rate was 60%, 85% and 83%, respectively.
Financial Information · p. 179
To improve the utilization of our production capacity and reduce impairment, we have taken various measures, including formulating our manufacturing plans in reference to WHO guidance, historical and seasonal demand, regulatory communication and requirements.
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.
The in-patient visits to Beijing TRT TCM Hospital increased throughout the Track Record Period, mainly attributable to our initiatives to develop its in-patient services.
Business · p. 153
Such medical institution ceased to provide in-patient healthcare services since 2023 to concentrate its medical resources on serving customers through out-patient healthcare services.
The following table sets forth our designed production capacity, actual production volume and utilization rate of our manufacturing facilities for the local manufacturing of Keppra by production lines for the years indicated.
Due to the sales of existing inventory prior to production and a transition in our manufacturing model into local manufacturing, utilization rates for the manufacturing of Keppra tablets in 2023 and Keppra oral solutions in 2025 were low.
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.
Our manufacturing capacity utilization rate decreased in 2025 as compared to 2024, primarily as (i) we were still at an early stage of commercialization and market development, resulting in relatively limited demand, and (ii) we took a prudent approach to prioritize the digestion of surplus inventory of surgical robots manufactured in 2024.
Business · p. 191
During the Track Record Period and up to the Latest Practicable Date, the Zhuhai manufacturing base operated two production lines for robotic products, one of which was used for commercial mass production, while the other was used for product validation, process optimization, trial production of new products and support of quality control activities and did not participate in routine mass production.
Business · p. 191
We plan to expand our production capacity by temporarily deploying the second production line into mass production and adding additional production lines as needed.