Capacity and utilisation

(4) The utilization rate of our Indonesia factory was relatively low during the Track Record Period mainly because it was built to support our future global expansion strategies. We expect the utilization rate will gradually ramp up in line with our global expansion efforts.

Business · p. 213

During the Track Record Period, our in-house facility in Shanghai, reached an actual production volume of 4.4 million units, 1.5 million units, 2.2 million units, and 1.2 million units, with a design production capacity of 4.9 million, 1.7 million, and 2.6 million units, and 1.4 million units, at a utilization rate or 88.7%, 91.0%, 83.9%, and 85.5%, respectively.

Business · p. 235

The decrease in designed production capacity at our in-house facility in Shanghai reflects our strategic shift aligned with our long-term international growth objectives, and our plans to relocate our production capacity to Shanghai No. 2.

Business · p. 235

Subsequent to the Track Record Period, our in-house Shanghai No. 2 facility, with a total GFA of 100,000 sq.m., located in Jiashan commenced production in July 2025.

Summary · p. 22

In 2024, the designed production capacity of our excavating machinery, concrete machinery and hoisting machinery reached 150,000, 49,000 and 29,400 units, respectively.

Business · p. 211

The utilization rate was generally low during the Track Record Period primarily because (i) the construction machinery industry exhibits distinct cyclical characteristics and we maintain appropriate production capacity reserves to flexibly respond to fluctuations in infrastructure investment and major project demands, and (ii) we are advancing intelligent production line upgrades and optimizing our product mix, such as increasing the proportion of electrified equipment, to capitalize on industry transformation and upgrading opportunities, which have temporarily impacted the traditional utilization rate.

Business · p. 281

As a result of the foregoing, our overall production capacity utilization rate declined from 2022 to 2023, remained relatively stable between 2023 and 2024, and subsequently increased in the four months ended April 30, 2025.

Business · p. 281

In 2022, our utilization rate soared to an extraordinary 128.2% due to an unprecedented surge in demand for our smart home EV chargers.

Business · p. 271

The further decline in utilization rate from 2023 to 2024 was mainly due to the upgrading of manufacturing facilities to accommodate the production requirements of newer project models, while also influenced by the demand fluctuation from our customers.

Business · p. 271

In addition, the current low utilization rate of our Thai factory is due to its initial stage of production.

Business · p. 271

As of March 31, 2025, 61.4% of the total GFA has come into use, and we have a manufacturing team of 114 employees.

Business · p. 290

Following these expansions, our manufacturing facilities will be able to support the manufacturing of 575 million vials of nebulizers in suspension or solution forms, 19 million canisters of nasal sprays, 14 million canisters of MDI products, 24 million doses of DPI products and 600 thousand liposome products per year.

Business · p. 290

During the Track Record Period, our gold hardening facilities had an annual capacity of 4,145,301 grams, 2,544,395 grams, 1,677,697 grams and 690,937 grams of hardened gold, with utilisation rates of 56.5%, 95.2%, 99.0% and 83.2% during FY2022, FY2023, FY2024 and 5M2025, respectively.

Financial Information · p. 531

The decreasing trend of the annual production capacity of our gold hardening facilities during the Track Record Period was primarily attributable to the significant increase in the time required to carry out the CNC machining process, which is the bottleneck process in gold hardening and processing, as a result of the additional technical requirements, precision and quality control necessary for the processing of thinner layers of hardened gold to be utilised in our gold-case watch and gold-bezel watch products as reflected in the decreasing trend in the average of gold contained in relation to our traditional watches during the Track Record Period.

Financial Information · p. 531

The overall utilization rate of our production capacity was 50.8%, 67.0%, 44.8% and 54.1% in 2022, 2023, 2024 and the three months ended March 31, 2025, respectively.

Business · p. 300

The decrease in our overall utilization rate from 2023 to 2024 was due to our capacity expansion in our Maxwell Center and the shut-down of our Jiading factory in 2024.

Business · p. 300

To further expand our manufacturing capacity to meet the growing market demand for our LiDAR products, we are currently expanding Hertz Center to accommodate more production lines.

Business · p. 300

In 2023, 2024 and the three months ended March 31, 2025, we manufactured 1.2 million, 1.8 million and nil doses of quadrivalent subunit influenza vaccine, representing a utilization rate of 30.2%, 45.8% and nil, respectively.

Business · p. 304

The utilization rate of our rabies vaccine production line and pneumococcal vaccine production line was less than 0.1% during each year/period of the Track Record Period, primarily because our rabies vaccine candidate, PPSV23 candidate and PCV24 candidate have not been commercialized and we have not commenced large-scale production of such candidates.

Business · p. 304

Therefore, we expect our First Influenza Vaccine Production Line to reach full capacity during the peak season in 2027, necessitating the use of our Second Influenza Vaccine Production Line.

Business · p. 305

The average monthly utilization rates for these 14 key lines reached 73%, 73.3% and 89.6% in 2022, 2023 and 2024, respectively.

Business · p. 227

We commenced the expansion of Qiantang Site in October 2024 and expect to complete the expansion by the end of 2025, achieving an additional annual productivity of 500kg.

Business · p. 229

This expansion plan is in response to growing existing and potential customer demand for GLP-1 products, which are approaching advanced stages of clinical and commercial production.

Business · p. 229

Our total production capacity utilization rate was 83.8%, 92.2% and 91.2%, respectively, for 2022, 2023 and 2024.

Business · p. 207

In order to grow our business, meet the increasing demand from our customers and capture the potential growth opportunities in the refrigeration and air-conditioning product components, automotive components and the electromechanical actuators for bionic robot in China and globally, we plan to use the net proceeds of the Global Offering and our internal funds to expand our production capacity and upgrade our factories in China and overseas.

Business · p. 210

Therefore, the production efficiency in our Xizang Plant was hindered during the Track Record Period, and we had a low utilisation rate during the Track Record Period.

Business · p. 198

Considering that the demand of food-grade glycine would increase where industrial-grade glycine is a raw material of food-grade glycine, and that the demand for industrial-grade glycine would also increase, in June 2024, we began to utilise calcium carbonate, which is alkaline in nature, to neutralise hydrochloric acid.

Business · p. 198

In the second and third quarter of 2023, we encountered difficulties in importing raw materials for our production of food-grade glycine due to the delay of the renewal of B2 Import Approval Licence, which was caused by our change of agent whom did not assist us in renewing the licence on time.

Business · p. 199

The following table sets forth our designed production capacity, actual production volume and utilization rate for production lines that are used in the production of injectables and oral solids as of the dates and for the years indicated.

Business · p. 312

The designed production capacity for a production line is calculated based on 255 effective production days a year on a triple shift basis (i.e., 24 hours) for oral solids, and a double shift basis (i.e., 16 hours) for other products.

Business · p. 312

In particular, we believe the following factors indicate sufficient market demand to support the planned increase in our production capacity: historical growth rates of our sales of commercialized innovative drugs; our robust pipeline of late-stage innovative product candidates, including those with significant market potential; and our strategy to deepen our market penetration and expand our coverage of hospitals and other medical institutions through efficient sales and marketing efforts.

Business · p. 313

The utilization rate of the facility in Singapore for GASTROClear™ increased significantly from 34.8% in 2023 to 86.6% in 2024 mainly driven by the increase of the actual testing volume of GASTROClear™ of 12,287 in 2024 as compared to 4,989 tests in 2023, attributable to an increase in the sales of GASTROClear™.

During the Track Record Period, our allocated production capacity and actual production volume for GASTROClear™ fluctuated because of the adjustment based on (i) our expectation of the corresponding market demand, and (ii) our production strategy shift from a build-to-stock model to a build-to-order model.

Business · p. 399

For the same reason, the actual production volume decreased to 23,400 tests in 2024, and our utilization rate therefore decreased to 29.0% in 2024.

Business · p. 400

Capacity utilization rate (%) | 83.4 | 70.5 | 76.3

Business · p. 196

Currently, the majority of our production capacity is enabled domestically, while our overseas production capacity remains relatively small and is still in the ramp-up phase of mass production.

For 2022, 2023 and 2024, the utilization rates of our manufacturing facilities were 94.8%, 96.2% and 81.6%, respectively.

Financial Information · p. 370

Our Chuzhou Plant and Huai'an Plant recorded lower utilization rates in 2024 primarily because we proactively adjusted the production volume to strategically prioritize orders with higher profitability to improve our margin.

Business · p. 247

It subsequently decreased to 66.0% in the first quarter of 2025, as we deemed it financially prudent to not book overtime shifts in January and February 2025 in view of the average selling price of PV cells, and as such the holiday season and cold weather's effects on our production volume became more pronounced and consequently reduced our utilization rate, though after holiday season, it increased to 78.8% in March 2025 given the increase in the average selling price.

Business · p. 298

This fluctuation of the capacity utilization rate of our Zaozhuang plant during the Track Record Period was due to adjustments in our manufacturing plans based on anticipated market demand and our inventory levels.

Business · p. 225

The capacity utilization rate of our Yuyao plant in December 31, 2024 exceeded 100% as we optimized the shift arrangements of manufacturing staff during this year to meet production targets and fulfill the market demand for our dump trucks, resulting in the production output exceeding the designed capacity.

Business · p. 226

In anticipation of increasing demand for battery-electric loaders in the next five years, we constructed our second loader manufacturing plant in Wuhan, Hubei, which commenced operations in August 2024, with an annual design capacity of 5,000 units of loaders.

Business · p. 225

In 2021, 2022, 2023 and 2024, our total manufacturing capacity (including battery cells, modules and packs) reached 6.4 GWh, 8.5 GWh, 17.3 GWh and 23.9 GWh, respectively.

Business · p. 324

Thus, our expanding manufacturing capacity negatively affects our gross margin, especially at the early ramp-up stage when the fixed depreciation and amortization is allocated to a relatively small amount of product output.

Business · p. 324

In the second half of 2023, our overall utilization rate for the relevant manufacturing lines has recovered to 82.3%.

Business · p. 326

The utilisation rate of our feminine care product production lines increased from approximately 1.5% for FY2021 and 34.9% for FY2022 to approximately 138.3% for FY2023 and 100.7% for 9M2024, respectively, mainly due to an explosive growth of our D2C feminine care product sales since FY2023.

Business · p. 203

In this regard, we entered into a contract to acquire full-servo machine for setting up three additional feminine care production lines at a consideration of approximately RMB12.0 million, of which approximately RMB3.6 million as capital commitment has been committed.

Business · p. 203

During the Track Record Period, our average utilisation rate for our babycare product production lines were approximately 51.0%, 68.8%, 84.1%, and 60.0%, respectively; our average utilisation rate for our feminine care production lines were approximately 1.5%, 34.9%, 138.2%, and 100.7%, and our average utilisation rate for our adult incontinence production lines were approximately 13.7%, 7.4%, 14.7%, and 27.2%, respectively, for the same periods.

Financial Information · p. 276

As at the Latest Practicable Date, our production base, comprised our Phase I Alumina Production Project and Phase II Alumina Production Project, had an aggregate designed annual production capacity of two million tons of alumina, and we maintained a utilisation rate of over 90% during the Track Record Period.

Financial Information · p. 317

Going forward, we are also expanding our production capacity by engaging in our New Alumina Production Project at our production base, which is expected to have a designed annual production capacity of two million tons of alumina.

Financial Information · p. 318

During the Track Record Period, our maximum annual/half-year production capacity gradually increased as we established new production facilities in order to expand our geographical reach in the PRC.

Business · p. 236

Although some of our production facilities have individually exceeded its permitted level of production for certain products, the overall utilisation rate for our production facilities was still relatively low and demonstrated a general decreasing trend throughout the Track Record Period

Business · p. 236