In 2023, 2024 and 2025, our utilization rate of production line for sensors was approximately 76.3%, 90.5% and 95.9%, respectively, and for algorithm modules was approximately 80.1%, 88.7% and 98.0%, respectively.
Business · p. 157
In addition, in anticipation of rising order volumes in the future, we have made, and will continue to make, investments in expansion and upgrade of production facilities and equipment to expand our production capacity and improve production efficiency.
In 2024, we established new factories in Jiangmen for both Amos and Biobor products to address the constraints in production capacity and to meet the increasing market demands.
Business · p. 124
Following the opening of our Jiangmen Biobor factory, we underwent a ramp-up period and equipment commissioning process for our new Biobor products, and commenced production at scale in September 2024.
Business · p. 123
Certain production lines at our Shenzhen factory have experienced reduced hourly output due to equipment wear and deterioration.
During the Track Record Period, the construction and commencement of production in our new production bases in Zhuhai and Nantong significantly improved our production capacity, especially for our plating services business line, enabling us to undertake a greater volume of plating service business.
Financial Information · p. 206
As a result, the gross profit and gross profit margin of our plating services were relatively low in 2023 and experienced a ramp-up in 2024 and 2025.
Financial Information · p. 206
We expect that the upfront investments in our production bases will support the realization of economies of scale over time.
In 2023, 2024 and 2025, the production capacity of our manufacturing facilities was approximately 570 thousand units, 650 thousand units and 624 thousand units, respectively.
Financial Information · p. 216
In anticipation of the increase in demand, we plan to further enhance our mass production capability by adding new production equipment and machinery, enhancing automation and efficiency for our existing equipment and machinery and expanding our manufacturing facilities.
Business · p. 151
We have obtained the Investment Project Filing Certificate for establishing a new production base along with warehouses in Tianjin, China, with a proposed total site area of approximately 31,000 square meters, which is expected to increase our annual production capacity of robotic pool cleaners by more than 600,000 units.
Primary factors affecting the utilization rate of our manufacturing facilities include the market demand for certain products, which affects the volume of orders from our customers, and our ability to utilize our newly ramped-up capacity.
Business · p. 99
These utilization levels require us to expand our production capacity to support anticipated growth in demand.
During the Track Record Period, the utilization rate of the Jiangsu Taizhou ADC Manufacturing Facility was approximately 3% and 20%, in 2024 and 2025, respectively.
Business · p. 203
During the Track Record Period, the utilization rate of the Jiangsu Taizhou Manufacturing Facility was approximately 40% and 19%, in 2024 and 2025, respectively.
Business · p. 203
During the Track Record Period, the utilization rate of the Shanghai Jinshan Manufacturing Facility was approximately 15% and 10%, in 2024 and 2025, respectively.
During the two years ended December 31, 2024, our production for innovative business was in its initial ramp-up phase.
Business · p. 160
The India manufacturing base commenced operation in September 2024. As of December 31, 2025, it remained in the initial ramp-up stage.
Business · p. 161
During the Track Record Period, fluctuations in utilization rates primarily resulted from adjustments and transfers of production capacity among different manufacturing centers to meet our business strategies.
Utilization decreased significantly from 42.6% in 2023 to 27.2% in 2024, primarily due to the transfer of infant formula production from our Tieli Facility to other facilities as part of our capacity optimization strategy.
Business · p. 138
Utilization rate decreased to 41.5% in 2025, primarily because: (i) we allocated the production orders to our Ohsung plant that newly commenced operations in 2025; and (ii) we were gradually digesting the inventory accumulated in 2024.
Business · p. 139
Utilization rate for whey powder plan remained relatively stable at 83.8% in 2023 and 83.6% in 2024 before declining to 59.1% in 2025.
During the Track Record Period, the utilization rate of our in-house packaging facility was 18.9%, 69.4% and 95.3%, respectively.
Business · p. 126
Outsourced packaging remains the predominant approach, particularly for our flagship products, as our established production partners offer stable yields and extensive production experience.
Our effective annual production capacity increased from 0.57 GWh in 2023 to 0.60 GWh in 2024 and 2.50 GWh in 2025, while annual production volume decreased from 0.24 GWh in 2023 to 0.15 GWh in 2024 and increased to 1.33 GWh in 2025.
Business · p. 160
Our capacity utilization rate was 43%, 26% and 53% in 2023, 2024 and 2025, respectively.
Business · p. 160
The relatively low utilization rates in 2023 and 2024 were largely attributable to production lines operating at reduced throughput during process and material optimization, equipment commissioning and line qualification, and pilot production.
(5) The decline in the utilization rate in 2025 was primarily due to the expansion of designed production capacity outpacing the growth in actual output.
Business · p. 128
We plan to gradually activate this reserved capacity between May and June 2026, primarily to support the anticipated growth in our AIoT-related product lines.
Business · p. 128
The phased commissioning of this base allows us to align capacity expansion with customer demand and product development progress while maintaining operational and capital utilization efficiency.
We plan to construct a production line for MEMS products used in high-end smartphone optical components, with a designed annual capacity of 240 million units and an expected start of commercial production in 2026.
Business · p. 154
As utilization rates improve alongside recovery in our key downstream markets, particularly the semiconductor and consumer electronics sectors, our expanded capacity will enable us to respond promptly to customer demand.
The fluctuations in the utilization rates during the Track Record Period were primarily associated with the changes in customer demand, delivery schedule, and the inventory levels of the relevant products.
Business · p. 157
We routinely update our production plan based on six-month forecasts of market demand from our sales team, as well as our R&D manufacturing needs.
Business · p. 157
To support our innovative drug development and future commercialization, we are building a new manufacturing site in Zhijiang, Hubei.
During the Track Record Period, our production utilization rate were 76.1%, 80.0%, and 86.1%, in 2023, 2024 and 2025, respectively.
Financial Information · p. 207
During the Track Record Period, we outsourced some standardized and labor intensive manufacturing process of power inductors under consumer electronics sector to outsourced service providers, primarily to (i) address our high production utilization rate, being 76.1%, 80.0% and 86.1% in 2023, 2024 and 2025, and (ii) optimize our cost efficiency.
Business · p. 149
As of the Latest Practicable Date, the planned production base in Thailand was in trial operation phase. We expect to commence commercial production in the second half of 2026.
In FY2024, the utilisation rate of our baby diapers production line reached approximately 90.1%, almost reaching its designed capacity, while that of our disposable period underwears production lines reached approximately 94.7%, respectively.
Business · p. 145
These elevated utilisation rates reflect that our baby diapers products and disposable period underwear products production lines have been operating near full capacity, thereby constraining our ability to fulfil additional orders and accommodate future growth.
Business · p. 145
We believe that the addition of five new production lines is necessary to relieve capacity constraints, fulfil rising market demand and capture further growth opportunities in these strategic segments.
To support this shift, the Dongtai facility played an increasingly important role in our production system, and capacity utilization at Dongtai had a more direct impact on our sales volume and revenue composition.
Financial Information · p. 185
These expansion activities involved capital expenditure, equipment installation and process ramp-up, which affected depreciation expenses and operating costs during the Track Record Period.
Financial Information · p. 185
In addition, we are in the process of finalizing an investment agreement to acquire additional land and construct new facilities dedicated to expanding our HDI PCB production capacity, which will further strengthen our ability to serve higher-end application segments, improve delivery stability under complex production mixes, and reinforce our long-term manufacturing competitiveness.
The utilization rate of our manufacturing facilities in 2023, 2024 and 2025 was 74.2%, 68.1%, and 90.1%, respectively.
Financial Information · p. 201
Our capacity utilization rate decreased from 74.2% in 2023 to 68.1% in 2024, primarily reflecting the temporary capacity fluctuation during production line upgrades to support SiPh applications, including the establishment of CW laser production lines.
Business · p. 147
In addition, one of these production bases in is currently undergoing production expansion to accommodate additional production facilities in response to the growing demand.
As of the Latest Practicable Date, our annual designed production capacity was approximately 15.0 million units.
Business · p. 172
Shenzhen Production Base commenced phased production during the first half of the year. In 2025, the facility achieved an actual production capacity of 9,354,240 units, with an actual capacity utilization rate of 73.20%.
Business · p. 172
There had been extra workers and operation hours had been extended to cater to the production needs as part of our strategic intention to maximize our in-house production efficiency.