Hong Kong IPO disclosure precedents · 550 companies, 554 items
a large share of revenue from the largest or five largest customers, discussed as reliance or concentration (why it is mutual, sustainable, how it will be reduced)
In each period during the Track Record Period, the revenue generated from our five largest customers amounted to RMB114.1 million, RMB141.5 million, RMB180.3 million and RMB135.7 million, respectively, accounting for 21.0%, 21.9%, 21.5% and 22.4% of our total revenue in the respective period.
Summary · p. 6
During the Track Record Period, all of our five largest customers were Independent Third Parties, and none of our Directors, their respective close associates, or any Shareholder who, to the knowledge of our Directors, owns more than 5% of our issued capital, had any interest in these customers during the Track Record Period and up to the Latest Practicable Date.
Business · p. 139
We enjoy customer stickiness, evidenced by a 100% repurchase rate among our top 20 customers in terms of revenue during the Track Record Period.
In 2023, 2024, 2025 and the four months ended April 30, 2026, the revenue generated from our five largest customers in each year/ period during the Track Record Period was RMB139.8 million, RMB157.4 million, RMB181.2 million and RMB73.9 million, respectively, representing 67.9%, 55.1%, 44.6% and 57.0% of our total revenue, respectively.
Summary · p. 7
(ii) our revenue was generated from mainstream brand customers from various downstream application scenarios, including cleaning robots, service robots, companion robots and other intelligent mobile robotic applications, and was not concentrated on demand from any single brand company or a limited number of brand companies, reflecting the diversity of our customer structure and downstream demand sources.
Business · p. 173
According to Frost & Sullivan, fluctuations in customer procurement volumes arising from project implementation schedules and end-customer procurement allocation adjustments are common in the industry.
In 2023, 2024, 2025, and for the six months ended June 30, 2026, our five largest customers in each year/period during the Track Record Period together generated RMB58.3 million, RMB339.0 million, RMB966.5 million, and RMB475.6 million of revenues, respectively, accounting for 54.8%, 85.7%, 88.0%, and 80.8% of our total revenue, respectively.
Business · p. 166
Further, during the Track Record Period, the largest customer in each year/ period generated revenue accounting for 21.5%, 43.6%, 48.0%, and 29.4% of our total revenue in 2023, 2024, 2025 and for the six months ended June 30, 2026, respectively.
Business · p. 171
Based on the foregoing, the Directors believe that our customer concentration is a reflection of the project-driven nature of the AI Computing Infrastructure Solution and our business transformation and development process, and is expected to decrease progressively as our AI Computing Cloud Services scale and our customer base diversifies.
The revenue attributable to our five largest customers for each period during the Track Record Period was US$24.1 million, US$22.4 million, US$25.1 million and US$12.7 million, respectively, accounting for 6.6%, 6.0%, 6.6% and 7.0% of our total revenue, respectively.
Summary · p. 5
We served over 10,000 customers across a diverse range of industries, including automotive, electronics and home appliances, packaging and others, and from diverse geographic regions, including all major countries around the world as of the Latest Practicable Date.
Summary · p. 5
We expect to further expand our customer base as we expand our business lines, which will help further diversify our revenue streams and improve our resilience.
In 2023, 2024, 2025 and the six months ended June 30, 2026, our revenue generated from the five largest customers in each period during the Track Record Period amounted to RMB193.6 million, RMB226.8 million, RMB181.0 million and RMB159.7 million, representing 20.4%, 21.0%, 18.4% and 23.7% of our total revenue for the corresponding period, respectively
Business · p. 144
Our consistent product quality, stringent physical and chemical performance standards, customized product development capabilities and large-scale delivery capacity have enabled us to establish stable and long-term relationships with customers across the industries we serve.
Business · p. 112
All of our five largest customers during the Track Record Period were Independent Third Parties.
In 2023, 2024, 2025 and the five months ended May 31, 2026, revenue generated from our five largest customers in each year/period during the Track Record Period accounted for 62.4%, 62.5%, 57.8% and 56.9%, respectively, of our total revenue during those years/periods.
Business · p. 165
The stability of our relationships with our major customers is primarily attributable to (i) we possess self-developed core technologies and adopt a design-in cooperation model with our major customers, under which we conduct in-depth customized development based on their specific requirements, which increases switching costs and strengthens customer stickiness; (ii) we have built long-term, stable cooperation relationships with our major customers over the years, which has fostered a deep foundation of mutual trust and has contributed to the continuity of these relationships; and (iii) our sales arrangements with distributors are typically governed by framework agreements with a term of one year, which automatically renew for successive one-year terms unless either party gives notice of termination prior to expiry, while our direct sales customers are not subject to long-term framework agreements but instead purchase on a purchase order basis.
Business · p. 165
As revenue from our five largest customers represented a meaningful portion of our total revenue during the Track Record Period, our ongoing efforts to diversify our customer base and expand into new application scenarios would help support the resilience of our revenue base and we believe these efforts could mitigate, to a certain extent, the potential risk to our revenue and profitability that could arise from the loss of, reduction in orders from, or other material changes in our business with our major customers.
In 2023, 2024, 2025 and for the three months ended March 31, 2026, the aggregate revenues generated from our five largest customers in each year/period during the Track Record Period were RMB1,588.7 million, RMB1,792.2 million, RMB2,175.0 million and RMB410.6 million, representing 90.7%, 88.5%, 89.5% and 83.1% of our revenue for the respective years/periods.
Summary · p. 3
Customer A was our largest customer from 2023 to 2025 and our second largest customer for the three months ended March 31, 2026.
Summary · p. 4
Our Directors are of the view that our Group’s business model is sustainable despite our customer concentration.
Revenue generated from our five largest customers in 2023, 2024, 2025 and the six months ended June 30, 2026 accounted for 93.2%, 60.1%, 51.7% and 54.7% of our total revenue in the same periods, respectively, and revenue generated from our single largest customer in each period of the Track Record Period accounted for 47.5%, 17.0%, 16.4% and 14.8% of our total revenue in the same periods, respectively.
Summary · p. 5
Revenue generated from our five largest customers in each period of the Track Record Period accounted for 93.2%, 60.1%, 51.7% and 54.7% of our total revenue in 2023, 2024, 2025 and the six months ended June 30, 2026, respectively, and revenue generated from our single largest customer in each period of the Track Record Period accounted for 47.5%, 17.0%, 16.4% and 14.8% of our total revenue in the same periods, respectively.
Business · p. 154
We have maintained close and sustainable business relationships with our five largest customers in each period during the Track Record Period.
Revenue generated from our five largest customers in each period during the Track Record Period accounted for 12.7%, 14.5%, 13.4% and 16.6% of our total revenue for the respective periods.
Summary · p. 9
In 2023, 2024, 2025 and the four months ended April 30, 2026, revenue generated from our five largest customers amounted to RMB7,919.6 million, RMB9,997.0 million, RMB8,786.9 million and RMB3,856.5 million, respectively, accounting for 12.7%, 14.5%, 13.4% and 16.6% of our total revenue in the same periods, respectively.
Business · p. 131
During the Track Record Period and up to the Latest Practicable Date, none of our Directors, their associates or any of our shareholders (who owned or, to the knowledge of our Directors, had owned more than 5% of our issued share capital) had any interest in any of our five largest customers.
During the Track Record Period, revenue derived from our top five customers in each period during the Track Record Period amounted to RMB271.0 million, RMB268.9 million, RMB287.7 million and RMB151.4 million in 2023, 2024, 2025 and the six months ended June 30, 2026, respectively, representing 33.8%, 26.3%, 25.5% and 26.4% of our total revenue for the respective period.
Summary · p. 7
Although we have a network of distributors, the sales contribution from our five largest distributors is relatively concentrated, which is consistent with the economic scale, market maturity, and consumer demand within the geographic regions in which these distributors operate.
Business · p. 150
We have cultivated long-term and stable relationships with our major distributors, which we believe indicates strong market recognition of our products’ competitiveness and our brand’s value.
For the years ended December 31, 2023, 2024 and 2025 and the six months ended June 30, 2026, our five largest customers accounted for 56.9%, 50.9%, 47.5% and 58.5% of our total revenue, respectively, while our largest customer accounted for 23.7%, 19.7%, 17.1% and 17.8%, respectively.
Business · p. 126
To the best of our knowledge, during the Track Record Period and up to the Latest Practicable Date, except for Guangdong Rising Holdings and Guangsheng Nonferrous Metals Import & Export Co., Ltd., all of our major customers were Independent Third Parties.
Revenue generated from our largest customer in each period during the Track Record Period accounted for 37.1%, 36.1%, 29.0% and 37.3% of our total revenue for the respective periods, while revenue generated from our five largest customers in each period during the Track Record Period accounted for 93.6%, 89.2%, 80.4% and 85.6% of our total revenue for the respective periods.
Summary · p. 5
Given our long-term cooperation with these major customers and our integration into their product development and supply chain processes, and the fact that replacing a trusted spatial sensing sensor supplier would generally require technical evaluation, product validation, supply chain requalification and production coordination, which may involve additional time, cost and execution risk, our Directors believe that our relationships with such customers are unlikely to be terminated or materially adversely affected in the ordinary course of business.
Summary · p. 5
As such, we believe that the relatively high revenue contribution from our five largest customers in each year during the Track Record Period would not give rise to material reliance risk.
In 2023, 2024, 2025 and the six months ended June 30, 2026, revenue from our five largest customers in each period was RMB1,823.7 million, RMB1,775.1 million, RMB1,814.1 million and RMB1,009.5 million, respectively, accounting for 49.9%, 43.0%, 38.2% and 34.7% of our total revenue for the respective periods.
Summary · p. 5
To the best of our knowledge, all of our five largest customers in each period during the Track Record Period were independent third parties.
In each of 2023, 2024 and 2025 and the four months ended April 30, 2026, revenue contributed from our five largest customers amounted to RMB1,943.4 million, RMB2,769.8 million, RMB3,605.6 million and RMB1,394.0 million, respectively, accounting for 18.0%, 22.0%, 23.6% and 26.1% of our total revenue, respectively, for each of the same periods, while the largest customer contributed RMB583.2 million, RMB626.2 million, RMB1,024.5 million and RMB371.7 million, respectively, accounting for 5.4%, 4.9%, 6.7% and 7.0% of our total revenue, respectively, for each of the same periods.
Summary · p. 5
Our five largest customers in each period of the Track Record Period were direct sales customers.
Business · p. 140
To the best of our knowledge, for each period during the Track Record Period and up to the Latest Practicable Date, all of our five largest customers in each period were Independent Third Parties, and to the best of our Directors’ knowledge, none of our Directors or their respective close associates or any person who, to the knowledge of the Directors, owned more than 5% of our issued share capital, had any interest in any of our five largest customers.
Sales to our five largest customers in each year/period during the Track Record Period amounted to RMB1,003.0 million, RMB759.9 million, RMB599.7 million and RMB127.5 million, accounting for 63.9%, 68.8%, 63.2% and 64.2% of our total revenue in the respective year/period.
Summary · p. 5
The composition of our five largest customers has changed over the Track Record Period, consistent with changes in our revenue mix from PV manufacturing solutions towards SiPh assembly and testing equipment.
Summary · p. 6
We believe that we do not unduly rely on our major customers because the products we supply to Customer J and Customer N have high technical barriers and customized features and are integrated into its supply chain.
Revenue from our five largest customers in each year/period during the Track Record Period amounted to RMB11.7 million, RMB66.5 million, RMB241.4 million and RMB162.9 million, representing 67.0%, 83.4%, 85.7% and 81.3% of our total revenue in the same periods, respectively.
Summary · p. 10
According to Frost & Sullivan, given that the global robotic direct drive actuator module industry is in an early stage of penetration, similar to other upstream robotic component supply chain sectors such as micro-controller unit design, or analog chip companies, where suppliers at an early commercialization stage typically rely on a small number of anchor customers, it is an industry norm for robotic technology companies to maintain a concentrated customer base in order to secure stable order volumes and establish deep technical collaboration with longterm customers.
Business · p. 171
Accordingly, we consider that the reliance on Customer C primarily reflects the stage of our product commercialization and Customer C’s increased demands, rather than structural dependence on a single customer.
Revenue from our five largest customers in each year/period during the Track Record Period amounted to RMB829.4 million, RMB926.6 million, RMB1,020.9 million and RMB619.9 million, representing approximately 28.1%, 28.4%, 29.8% and 29.1% of our total revenue for the respective year/period, while the largest customer in each year/period during the Track Record Period contributed 11.3%, 11.7%, 10.8% and 10.6% of our total revenue, respectively, for the same year/period.
Summary · p. 3
Revenue from our five largest customers in each year during the Track Record Period amounted to RMB829.4 million, RMB926.6 million, RMB1,020.9 million and RMB619.9 million, representing approximately 28.1%, 28.4%, 29.8% and 29.1% of our total revenue for the respective year/period, while the largest customer in each year during the Track Record Period contributed 11.3%, 11.7%, 10.8% and 10.6% of our total revenue, respectively, for the same years/period.
Business · p. 131
Our business dealings with a number of our top five customers during the Track Record Period have been long-standing.
Our revenue from our five largest customers in each period during the Track Record Period, calculated on the group basis, was RMB1,163.2 million, RMB1,394.7 million, RMB1,404.9 million and RMB678.0 million in 2023, 2024, 2025 and the six months ended June 30, 2026, respectively, representing approximately 29.1%, 33.5%, 34.5% and 34.2% of our total revenue for the respective periods.
Business · p. 142
We sell a substantial portion of our products to third-party distributors, who are our direct customers and are responsible for subsequently selling and delivering our products to hospitals, other medical institutions and pharmacies.
Business · p. 142
According to Frost & Sullivan, our sales strategy is consistent with industry practice in the pharmaceutical industry.
In each year and period during the Track Record Period, our revenue generated from our five largest customers accounted for 90.1%, 93.7%, 89.1% and 86.5% of our total revenue in 2023, 2024, 2025 and the three months ended March 31, 2026, respectively, while our revenue generated from the largest customer accounted for 41.1%, 42.4%, 52.7% and 51.8% of our total revenue, respectively, for the same periods.
Summary · p. 6
According to CIC, such concentration lies in a reasonable range in the market of fintech services in the banking industry in Chinese Mainland and Hong Kong.
Business · p. 157
Nevertheless, we recognize the importance of customer diversification and have implemented a series of measures to mitigate our exposure to customer concentration.
In each year ended December 31, 2023, 2024 and 2025 and the six months ended June 30, 2026, sales to our five largest customers contributed 55.8%, 66.9%, 70.2% and 71.8% of our total revenue, and sales to our largest customer contributed 32.1%, 23.5%, 21.8% and 21.0% of our total revenue, respectively.
Summary · p. 3
Our performance depends on our ability to maintain robust relationships with existing key customers while continuously broadening our customer base globally.
Financial Information · p. 185
We believe that maintaining long-term relationship with our key customers and further broadening our customer base will help us to win market share in the rapidly expanding optical communication market and further enhance our competitive position.