We determine our production capacity plans and identify capacity shortfalls based on rolling demand forecasts derived from long-term orders placed by our downstream customers, taking into account our expectations for continued growth in the industry.
Our automation equipment are highly customized and designed according to the customers’ technical requirements, specifications, standards and production processes. Consequently, the materials and labor invested by us differ substantially across different products, and the number of units is therefore not a meaningful or appropriate measure of our production capacity.
The production capacity of our Yizheng Base has steadily increased during the Track Record Period from 360,000 units in 2022 to 760,000 units in 2023 and 910,000 units in 2024, and increased from 670,000 units in the nine months ended September 30, 2024 to 720,000 units in the nine months ended September 30, 2025, with the utilization rate reaching 58.1%, 78.4%, 73.4%, 67.4% and 81.5% in the same respective periods.
Financial Information · p. 365
Our utilization rate for our Yizheng Base generally increased from 58.1% in 2022 to 81.5% in the nine months ended September 30, 2025 in line with our business growth.
Business · p. 287
Conversely, in the event that market demand plummets, we may also face the risks of surplus production capacity if we fail to recalibrate our output in a timely manner, and our initial investment may not bear fruit immediately, particularly taking into account the prospective depreciation and amortization over time.
The utilization rate of our production facilities in the nine months ended September 30, 2025 was lower than the utilization rate of the corresponding period in 2024, because we launched a new production facility in Hubei in June 2024, which was still in the production ramp up stage, adjustments in customers’ procurement schedules, and scheduled major maintenance of the production facilities at Inner Mongolia.
Business · p. 127
While our Hubei production facility has a designed production capacity of 25,000 tons per annum, production began only after June 2024.
We plan to progressively expand the production capacity of (i) Guangxi SZ-A API production line and (ii) Beijing SZ-A tablets production line, to (i) address capacity constraints for the production of SZ-A API and Sangbo'en as our Guangxi SZ-A API production line and Beijing SZ-A tablets production line have been operating at a high utilization rate, (ii) better meet growing demand for Sangbo'en, and (iii) lay the foundation for the commercialization of WH007 and WH006.
Business · p. 188
We expect the gross floor area of the expanded Guangxi SZ-A API production line to be approximately 22,000 square meters, with a designed annual production capacity of approximately 44,000 kilograms, subject to adjustment based on our evolving business needs.
Business · p. 188
We expect to commence the expansion of our Guangxi SZ-A API production line and Beijing SZ-A tablets production line in 2026.
At the same time, the average turnover trips per container recorded a slight decline in 2024 and the eight months ended August 31, 2025, primarily due to demand fluctuations and extended delivery cycles of certain downstream customers, especially new projects in the high-value automotive parts and new energy vehicle sectors.
Business · p. 178
In response, we increased our container reserves and investments.
Business · p. 178
The overall decline in the average turnover trips per container was partially offset by the increase in the average operating price per container per trip.
According to Frost & Sullivan, the average utilization rate of China’s large-scale slaughtering plants was around 30% during the Track Record Period, primarily due to the seasonal fluctuations in the supply of hogs, which may not consistently meet the designed production capacity of those slaughtering plants.
Summary · p. 12
Our slaughter volume increased substantially from 7,972 thousand heads in the nine months ended September 30, 2024 to 19,164 thousand heads in the same period of 2025, primarily due to our continuous effort to expand our sales channels for meat products and improve our operational efficiency, driving the increase in the utilization rate of our slaughtering plants in the same period.
Summary · p. 13
We plan to further increase the utilization of our slaughtering capacity to match the scale of our hog business and expect to generate further synergies between our business segments.
For our frozen food storage services, the total storage capacity purchased by our customers was 149,269 tonnes, 145,550 tonnes, 203,183 tonnes, 204,835 tonnes and 193,258 tonnes, in 2022, 2023, 2024 and the six months ended June 30, 2024 and 2025, respectively, at our southern frozen food storage base and northern frozen food storage base, representing a total storage capacity utilization rate of 96.7%, 94.3%, 88.1%, 94.8% and 83.8% in the same periods, respectively.
Financial Information · p. 175
We have experienced decreased storage capacity utilization rates at our northern frozen food storage base from July to September 2025, as compared to the six months ended June 30, 2025, primarily because certain of our customers exited storage spaces following the cessation of their own businesses which had been underperforming.
Summary · p. 15
The Phase V Expansion Project will strengthen our capabilities to serve the demand from existing and potential customers, capture greater market share, diversify our business opportunities and drive our revenue growth.
For the years ended December 31, 2023 and 2024 and the six months ended June 30, 2025, we produced oligonucleotide drug substance of 3.45 kg, 4.25 kg and 3.17 kg, respectively, representing annual utilization rates of 69.0%, 85.0% and 63.4%, respectively.
Business · p. 344
The fluctuation in annual utilization rates primarily reflects variations in the number and stage of pipeline programs under development in each year/period during the Track Record Period, which result in different production batch requirements and quantities of drug substance needed.
Business · p. 344
Based on the purchase orders we have secured, we had an utilization rate of 35.0% in the Tianjin facility for the six months ended June 30, 2025.
In 2023 and 2024, approximately 39% and 51% of the overall endoscopic robots manufacturing capacity was utilized, respectively, and approximately 10% and 25% of the manufacturing capacity for bronchoscope surgical robots was utilized, respectively.
Business · p. 373
We believe the production capacity of our existing manufacturing facilities can meet our manufacturing needs at the initial stage of commercialization. However, as our business grows, we plan to expand the production capacity by establishing a new manufacturing center in Shenzhen.
Bed occupancy rate exceeded 100% due to the addition of temporary beds to satisfy the increasing market demand, which we believe was in line with our hospital’s social responsibilities.
Business · p. 176
for a Class III hospital, the number of beds in operation as of the end of a given year can deviate up to 15% above or below the number of registered bed as of the same date, and still be considered compliant.
Business · p. 176
In February 2025, we commenced the operation of Phase II of Nanjing BenQ Hospital. As the registration of additional beds was still in progress, the number of registered beds remained unchanged as of June 30, 2025.
The ore processing volume decreased significantly from 374.2 kt in 2023 to 321.8 kt in 2024, which was primarily due to production line upgrades and weather-induced delays.
Business · p. 179
Therefore, we adjusted and allocated our processing capacity to the existing ore inventory together with mineralised waste in 2022 and thus consequentially led to a reduction in our actual ore mining volume in the year.
Business · p. 180
By contrast, the combined impact of all the aforesaid factors was minimal in 2023, and accordingly, we succeeded in reaching an actual ore mining volume of approximately 400.0 kt in 2023.
During the Track Record Period, our overall utilization rate of existing manufacturing facilities was 17.3%, 22.4% and 25.3% in 2023, 2024 and the six months ended June 30, 2025, respectively, for the nine months ended September 30, 2025, our utilization rate was 22.0%.
Business · p. 359
The relatively low utilisation during the Track Record Period reflects that our commercially capable lines were primarily prepared for future commercialisation rather than solely for research and development purposes.
For the five months ended May 31, 2025, the utilization rate of our headquarters production base equaled 58.9%, showing a great improvement from the utilization rate in 2024, primarily attributable to increased purchase orders due to downstream demand.
Summary · p. 29
For the four months ended September 30, 2025, our utilization rate further improved to 77.1%.
Summary · p. 29
Based on the improvement in utilization rate, the growing downstream market demand and our ongoing progress in market expansion, we did not consider there had been any impairment indications for our property, plant and equipment, right of use assets or intangible assets as of May 31, 2025.
The number of daily transaction per massage equipment decreased from 2.95 in 2023 to 2.04 in 2024 as a result of the substantial increase in number of massage equipment as at 31 December 2024 by approximately 90% as compared to that as at 31 December 2023, which led to dilution of the number of transaction per massage equipment and the ramp-up period for newly installed equipment to reach normal utilisation level.
Summary · p. 7
The substantial increase in number of massage cushions led to more significant dilution of the number of transaction per massage equipment and ramp-up period required for newly installed massage cushions, while the revenue recorded from our massage equipment deployed in cinemas increased due to the increase in number of massage equipment.
Summary · p. 8
To enhance and improve the number of daily transaction per massage equipment during the course of our business expansion in the future, our Group intends to intensify online marketing activities based on the evolving market conditions, including expanded promotional activities on various social media including Wechat, Douyin, Weibo, Xiaohongshu, Meituan, Kuaishou, to reach a broader spectrum of potential consumers and expand our consumer base.
The utilization rate of precision casting mullite products in 2022 and 2023 and the five months ended May 31, 2024 exceeded 100% because we extended production time beyond the initially planned schedule of 300 days for a fiscal year or 125 days for the five months ended May 31, 2024.
Business · p. 203
The utilization rate of the production line for precision casting mullite products decreased from 102.2% in the five months ended May 31, 2024 to 65.6% in the five months ended May 31, 2025, primarily due to the ramp-up of the new production line and the scheduled maintenance and repair work on the existing production lines.
Business · p. 204
Despite the lower utilization rate in the five months ended May 31, 2025, the actual production volume of precision casting mullite products increased significantly from 46.8 kt in the five months ended May 31, 2024 to 84.8 kt in the same period of 2025.
Our revenue for capacitor base films decreased by 21.3% from RMB300.6 million in 2022 to RMB236.5 million in 2023, to a large extent due to a decrease in the production volume of capacitor base films mainly caused by a decrease in the production capacity in 2023 as compared to 2022.
Financial Information · p. 242
With the addition of new production lines, we expect our annual production capacity of capacitor base films to increase by 16,000 tons by 2027, representing a 134.4% increase from the annualized production capacity of 11,904 tons in 2024.
Business · p. 184
As a result, the delivery time of the manufacturing equipment for our production lines is approximately eight months, which is significantly lower than the industry average of three to five years.
We reallocated the majority of our production capacity to 50ml injection specifications in 2022, resulting in more vials designed to be produced.
Business · p. 442
We meticulously monitor our production capacity in real-time and dynamically make adjustments based on current conditions and future projections.
Business · p. 443
To further support the clinical trials and future commercialization of our innovative drugs, we are rigorously assessing the expansion of our Baili-Bio Base.
The utilization rate of wet wipes production lines remained at a relatively low level of 28.3%, 25.4%, 24.6% and 21.7% in 2022, 2023 and 2024 and the four months ended April 30, 2025, respectively, primarily because we had built one, two, one and two new wet wipes production line(s) in 2022, 2023, 2024 and the four months ended April 30, 2025, respectively, resulting in an increase in the overall designed production capacity of wet wipes production line(s).
Business · p. 236
The utilization rate of baby pants production lines decreased from 56.3% in 2022 to 39.0% in 2023, primarily because a baby pants production line in Ghana was temporarily suspended for relocation to Uganda, resulting in a temporary decrease in actual production volume in 2023.
Business · p. 236
However, after balancing other factors, such as ease of repair and maintenance, per-unit production cost, purchase cost of wet wipes production facilities and our long-term development goal, we are of the view that the purchase of such production facilities under the expansion plan is reasonable.
From 2022 to 2024, our capacity utilization rate of automotive safety solutions experienced a decrease, mainly because (i) the production volume of our automotive safety solutions slightly decreased due to decreased sales volume and certain earlier mass production projects for airbags and seatbelts reaching their end of production (EOP) in the Rest of Asia and the Americas; and (ii) to meet production requirements for new orders, we expanded our production capacity in select regions, particularly in China where demand has been growing rapidly.
Business · p. 256
In addition, we plan to continuously streamlining and consolidating other production lines with relatively lower utilization rates to better control production costs.
Business · p. 260
As a result, our automotive safety capacity utilization rates fluctuated based on regional order volumes during the Track Record Period, and may have occasional mismatches between planned capacity and actual customer demand.
Lianyungang Facility commenced operations in June 2024 with an annual designed manufacturing capacity of 100 million capsules, 600 million tablets (specifically, conventional tablets which are designed to be swallowed and dissolved in the gastrointestinal tract) and 3.36 million dry suspension sachets.
Business · p. 365
The utilization rate of our product lines is relatively low since our products are at the early stage of commercialization. We expect such utilization rate will increase gradually as our currently commercialized products establish and expand their market presence and additional drug candidates enter the commercialization stage in future.