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.
Therefore, with respect to the production of AKK AM06™, the utilization rates of our production facilities calculated following the conventional method was approximately 4.9% and 2.3% for 2024 and 2025, respectively.
Business · p. 184
In view of the foregoing, for such businesses, the utilization rates of our production facilities were calculated following the method set forth in note 1 above, which we believe can more appropriately and comparably reflect our actual use of the production facility at the current stage.
Business · p. 184
The utilization rate increased during the Track Record Period, primarily due to the advancement of our LBP pipeline projects and the increase in clinical-batch production, as well as the increase in the number of CRO/CDMO projects undertaken, which correspondingly increased the number of operating days of the production facility.
In preparation for the upcoming launch of more drug candidates, we are in the process of building a GMP-compliant workshop dedicated to ADC production.
Business · p. 168
Our estimated total capital expenditure for this expansion plan is RMB400 million.
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.
The production capacity is calculated assuming the operation of 20 hours per day for six days a week. The utilization rate exceeded 100% as we increased the shift arrangements of manufacturing staff to meet production targets and fulfill the market demand for products, resulting in the production volume exceeding the production capacity.
Business · p. 157
Our profitability also depends on the economies of scale achieved through maintaining a reasonable level of capacity utilization.
Financial Information · p. 228
We are currently constructing two manufacturing plants in Shenzhen and Dongguan, Guangdong Province, as part of our strategy to increase the proportion of manufacturing capacity at our self-owned plants, thereby enhancing our ability to manage and control manufacturing and operating costs.
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].
During the Track Record Period, our total warehouse GFA increased from approximately 8.7 million sq.m. as of December 31, 2023 to exceeded 11.0 million sq.m. as of December 31, 2025, primarily driven by the expansion of our Shared Inventory Distribution Centers to support business growth.
Business · p. 145
Our utilization rates for both self-owned and leased facilities remained at high levels throughout the Track Record Period, reflecting efficient capacity management.
First, each of our production facilities in Chinese Mainland has reached a relatively high level of utilisation, with annual utilisation rates consistently reaching or exceeding 80% during the Track Record Period, one of the highest among battery separator manufacturers, according to Forest and Sullivan.
Business · p. 154
Our continued expansion of production capacity during the Track Record Period is a strategic response to rising customer demand and intense market competition, as demonstrated by similar capacity increases among our competitors in recent years, according to Frost & Sullivan.
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.
The utilization rates of DS7 and DP4 in 2023 were 72.1% and 49.3%, respectively; DS7 and DP4 in 2024 were 100.0% and 79.2%, respectively; and DS7, DS11, DS12 and DP4 in 2025 were 94.2%, 75.8%, 76.2% and 91.8%, respectively.
Business · p. 143
The deployment rates are materially lower than the utilization rates.
Business · p. 143
The financial consequence is that fixed manufacturing overheads associated with the reserved but undeployed capacity are charged directly to cost of sales, which suppressed our reported gross margin during such periods.
During the Track Record Period, our Shanghai manufacturing base maintained relatively high utilization rates over 80.0% in 2023, 2024 and 2025, while our Haining manufacturing base and Malaysia manufacturing base recorded fluctuating utilization rates during the Track Record Period.
Financial Information · p. 197
We plan to enhance our production capacity layout in Chinese mainland to keep pace with the growing market demands.
The utilization rate of the three production lines was approximately 0.4% in 2024 and 0.2% in 2025.
Business · p. 201
With the ease of the COVID-19 pandemic and the normalization of national pandemic control, sales of azvudine have decreased significantly, resulting in lower market demand and consequently, lower capacity utilization.
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.
During the Track Record Period, the utilization rate of our manufacturing facilities in China was 69.7%, 70.1% and 71.9% in 2023, 2024 and 2025, respectively, and 23.1%, 54.0% and 72.6% in Vietnam, respectively.
Financial Information · p. 159
Conversely, if our production utilization rate decreases due to weaker demand, production disruptions or other operational factors, our unit production costs may increase, which may adversely affect our profitability.
Our DRAM IC testing capacity utilization rate was approximately 20%, while our DRAM module testing capacity utilisation rate was approximately 30%, as of the Latest Practicable Date.
Business · p. 197
For the three years ended December 31, 2025, our Jinhua testing facility was primarily used for internal R&D testing and was not engaged in large-scale commercial testing.
In 2024, our production volume and utilization rate at Wenling base was higher due to an increase in international order demand, supported by many of our customers adopting a stockpiling strategy to mitigate the impact of tariff fluctuations.
Business · p. 162
Our manufacturing bases in Fehérgyarmat, Hungary and Tangerang, Indonesia primarily serve as assembly centers, where components are manufactured at our other three manufacturing bases.