Hong Kong IPO disclosure precedents · 335 companies, 336 items
A single customer accounts for a large share of revenue and the filing discusses reliance on it (mutual dependence, length of relationship, framework agreements).
Our sales to Pingmei Shenma represented 34.4%, 47.0%, 41.1% and 42.3% of our total revenue for FY2020, FY2021, FY2022 and 1H2023, respectively.
Summary · p. 6
(i) the reliance is mutual and complimentary as evidenced by our stable track record with Pingmei Shenma since 2013;
Summary · p. 6
While we will continue to sell hydrogenated benzenebased chemicals to Pingmei Shenma with our increase of production capacity, the proportion of our total revenue attributed to our sales to Pingmei Shenma will decrease.
For each of FY2020, FY2021, FY2022 and 6M2023, sales to our five largest customers in each year/period amounted to approximately RMB346.8 million, RMB432.2 million, RMB357.3 million and RMB304.4 million, representing approximately 22.8%, 31.9%, 28.5% and 45.2% of our total revenue, respectively, and sales to our largest customer in each year/period amounted to approximately RMB106.4 million, RMB218.6 million, RMB153.3 million and RMB150.7 million, representing approximately 7.0%, 16.1%, 12.2% and 22.4% of our total revenue, respectively.
Summary · p. 8
Our Group commenced business relationship with Customer Q in January 2023, which is one of our five largest customers in 6M2023. In 6M2023, the revenue contributed by Customer Q was approximately RMB150.7 million, which amounted to approximately 22.4% of our total revenue for 6M2023.
Summary · p. 27
Our Directors believe that our Group is capable of maintaining and expanding our business relationship with Customer Q, despite intense market competition, in consideration of (i) our flexibility in logistics services, including delivery from the PRC and Hong Kong to five ports located in the east and west coast in the US with customs clearance service and engagement of various last-mile service providers; and (ii) our ability to rapidly adapt to meet Customer Q’s diverse service needs in the PRC and other regions, including the successful implementation of the New Arrangement.
Revenue from our five largest customers for each year during the Track Record Period amounted to approximately RMB119.9 million, RMB137.6 million, RMB152.0 million, RMB74.5 million and RMB67.7 million, representing approximately 25.6%, 24.4%, 25.6%, 25.8% and 22.6% of our total revenue for the years ended 31 December 2020, 2021 and 2022 and the six months ended 30 June 2022 and 2023, respectively.
Summary · p. 5
For the years ended 31 December 2020, 2021 and 2022 and the six months ended 30 June 2023, our single largest customer accounted for approximately 6.1%, 7.1%, 7.3% and 7.2% of our total revenue, respectively, while our five largest customers for each year/period combined accounted for approximately 25.6%, 24.4%, 25.6% and 22.6% of our total revenue, respectively.
Business · p. 187
All of our five largest customers for each year/period during the Track Record Period are Independent Third Parties and none of our Directors, their close associates, or any Shareholders who or which, to the knowledge of our Directors, owned more than 5% of the issued Shares of our Company as at the Latest Practicable Date, had any interest in any of the five largest customers of our Group for each year/period during the Track Record Period.
For the years ended 31 December 2020, 2021, 2022 and the five months ended 31 May 2023, the revenue attributed to our largest customer in each year/period amounted to RMB111.7 million, RMB244.9 million, RMB256.4 million and RMB75.1 million, respectively, accounted for 49.2%, 53.6%, 34.3% and 52.6% of our revenue for the same years/period, respectively, and revenue attributed to our five largest customers in each year/period amounted to RMB217.2 million, RMB402.4 million, RMB634.5 million and RMB135.3 million, respectively, accounted for 95.7%, 88.1%, 84.9% and 94.8% of our revenue for the same years/period, respectively.
Summary · p. 14
However, our customer concentration from the five largest customers decreased from the year ended 31 December 2020 to the year ended 31 December 2022, and we believe that we will reduce our high customer concentration as the industry further matures and more players enter the downstream hydrogen fuel cell vehicles market.
Business · p. 264
In light of the foregoing, our Directors believe that we do not have any undue reliance on any of our five largest customers that would materially and adversely affect our business and operations.
For the years ended December 31, 2020, 2021 and 2022 and the four months ended April 30, 2023, revenue generated from our five largest customers in each year/period during the Track Record Period amounted to RMB166.3 million, RMB184.7 million, RMB166.2 million, and RMB69.7 million, respectively, representing 17.0%, 15.8%, 13.9%, and 16.0% of our total revenue, respectively.
Summary · p. 18
As of the Latest Practicable Date, none of our Directors, their associates or any shareholders which, to the knowledge of our Directors, owned more than 5% of the issued share capital of the Company as of the Latest Practicable Date, had any interest in any of our five largest customers in each year/period during the Track Record Period.
For the years ended 31 December 2020, 2021 and 2022 and the four months ended 30 April 2023, our five largest customers in each year/period during the Track Record Period in aggregate accounted for 53.2%, 47.3%, 53.7% and 87.4%, of our total revenue, respectively; and our largest customer in each year/period during the Track Record Period accounted for 24.4%, 23.2%, 34.4% and 51.3%, of our total revenue, respectively.
Business · p. 215
Our Directors are of the view that we have no material reliance issue on our major customers during the Track Record Period as the ranking and distribution of our five largest customers in each year/period during the Track Record Period were substantially different.
Business · p. 216
Nevertheless, according to the F&S Report, it is not uncommon for education IT solution companies to have relatively higher customer concentration, one of the major reasons for which is that the market players tend to undertake sizeable projects to enhance their reputation in the industry.
Revenue generated from our top five customers in each year or period during the Track Record Period accounted for 74.5%, 57.4%, 55.0% and 57.6% of our total revenue for the respective year or period.
Summary · p. 7
Revenue generated from our largest customer in each year or period during the Track Record Period accounted for 42.3%, 28.1%, 26.9% and 29.5% of our total revenue for the respective year or period.
Business · p. 203
We generate a big portion of our revenue from our cooperation with certain e-commerce platforms.
For the years ended December 31, 2020, 2021 and 2022 and the four months ended April 30, 2023, our five largest clients in each year/period contributed to approximately 92.0%, 95.2%, 80.4% and 78.1% of our total revenue for the same year/period, respectively.
Summary · p. 12
For the years ended December 31, 2020, 2021 and 2022 and the four months ended April 30, 2023, our largest client in each year/period contributed to 48.6%, 43.9%, 31.7% and 32.0% of our total revenue for the same year/period, respectively.
Summary · p. 12
We maintained an average of five years of business relationships with our five largest game developer clients during the Track Record Period.
For the years ended December 31, 2021 and 2022, our revenue generated from our largest customer accounted for 61.6% and 90.8% of our total revenue, and revenue from our five largest customers in the aggregate represented 99.9% of our total revenue in each year.
Business · p. 390
During the Track Record Period, our revenue was primarily derived from (i) our license and collaboration agreements with MSD and other licensing partners, and (ii) provision of research and development services to Kelun Group and other third parties.
Business · p. 390
To the knowledge of our Directors, except for Kelun Group (together with Kelun Medicine & Trade Group) and MSD, none of our Directors, their respective associates or any shareholder who owned more than 5% of our issued share capital as of the Latest Practicable Date has any interest in any of our five largest customers during the Track Record Period.
Revenue generated from our largest customer in the years ended 31 December 2020, 2021 and 2022 amounted to approximately RMB399.9 million, RMB201.1 million and RMB206.5 million, representing approximately 29.1%, 15.6% and 14.3% of our total revenue, respectively.
Summary · p. 5
Revenue generated from our top five customers in the years in aggregate amounted to approximately RMB520.4 million, RMB406.1 million and RMB428.0 million, representing approximately 37.8%, 31.4% and 29.6% of our total revenue, respectively.
Business · p. 278
Our Directors confirm that none of our Directors, their respective associates or any shareholder (who to the knowledge of our Directors owned 5% or more of our Shares) held any interest in any of our top five customers during the Track Record Period.
For each year during the Track Record Period, the revenue derived from our top five customers contributed to RMB269.2 million, RMB250.4 million and RMB438.7 million, representing 65.2%, 60.2% and 71.0% of our total revenue, respectively.
Business · p. 249
Our Directors consider that the entering of such framework or long-term agreements demonstrated the mutual and well established relationship with our major customers, most of which are multinational FMCG brand owners.
Business · p. 249
Based on the aforementioned and the industry experience of our executive Directors, our Directors consider that customer concentration is not uncommon in our industry and the risk of customer reliance is not specific to us.
For the years ended 30 June 2020, 2021 and 2022 and the four months ended 31 October 2022, our largest customer in each year/period accounted for approximately 21.9%, 27.3%, 22.1% and 51.3% of our total revenue, respectively, while our five largest customers in each year/period accounted for approximately 69.3%, 67.4%, 60.3% and 86.9% of our total revenue, respectively.
Summary · p. 4
Due to the above, we experienced a certain degree of customer concentration during the Track Record Period.
Business · p. 153
However, our executive Directors believe that the identities of our largest customers change depending on the identity and status of our sizeable projects from time to time and we did not significantly rely on any individual customer.
Our top five customers for the Track Record Period, which were primarily marketers in the e-commerce industry, accounted for 59.2%, 65.2%, 57.4% and 47.9% of our total revenue for the years ended December 31, 2019, 2020 and 2021 and the nine months ended September 30, 2022, respectively.
Summary · p. 10
We have established ongoing business relationships with our five largest customers for more than three years on average.
Business · p. 236
All of our five largest customers for the Track Record Period are Independent Third Parties.
For each of FY2019, FY2020, FY2021 and 3Q2022, revenue from our top five customers amounted to approximately RMB841.7 million, RMB796.6 million, RMB846.0 million and RMB579.7 million, respectively, accounting for 46.2%, 45.0%, 46.4% and 42.4% of our total revenue, respectively.
Summary · p. 4
According to F&S, it is an industry norm that the construction companies usually have relatively short business relationship with their customers as most of the construction project(s) are obtained through tendering and the contractors are engaged on a project-by-project basis.
For the years ended December 31, 2019, 2020 and 2021 and the nine months ended September 30, 2022, revenue derived from the provision of services to our five largest customers represented approximately 20.9%, 18.7%, 25.6% and 19.7% of our total revenue for each year/period of the Track Record Period, respectively, and revenue derived from our largest customer represented approximately 7.7%, 5.0%,
Summary · p. 3
All of our top five customers during the Track Record Period are Independent Third Parties.
Business · p. 278
To the best of the knowledge of our Directors, none of our Directors, their respective close associates or any of the Shareholders who owned more than 5% of the issued share capital of our Company as at the Latest Practicable Date had any direct or indirect interest in any of our five largest customers during the Track Record Period.
In 2019, 2020, 2021 and the nine months ended September 30, 2022, revenue generated from our top five customers, accounted for 25.5%, 18.2%, 19.4% and 26.2% of our total revenue in the same period, respectively.
Summary · p. 8
In 2019, 2020, 2021 and the nine months ended September 30, 2022, revenue generated from our top five customers in each year or period amounted to RMB909.5 million, RMB848.8 million, RMB1,218.4 million and RMB1,232.4 million, representing 25.5%, 18.2%, 19.4% and 26.2% of our total revenue for the respective year or period.
Business · p. 257
Our customers operate in a broad range of industry sectors, and during the Track Record Period, shipping orders from each of the industry sectors where our customers operate generally accounted for less than 20% of our total Online GTV during the same period.