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)
Our five largest customers in each year/period during the Track Record Period accounted for 90.6%, 94.1%, 94.4% and 86.2% of our total revenues, respectively.
Summary · p. 14
Our largest customer accounted for 56.6%, 76.2%, 60.6% and 66.3% of our total revenues in each year/period during the Track Record Period, respectively.
Summary · p. 14
To the best of our knowledge, all of our five largest customers in each year/period during the Track Record Period are Independent Third Parties.
For the years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2025, our revenue generated from the five largest customers in each year/period during the Track Record Period amounted to RMB164.0 million, RMB229.3 million, RMB289.1 million and RMB211.8 million, accounted for 59.6%, 50.2%, 47.4% and 53.5% of our total revenue for the respective periods.
Summary · p. 10
Our Directors consider that the interests of our Group and Amazon align.
Business · p. 289
Having considered the factors mentioned above, our Directors are of the view that the likelihood that our relationship with Amazon will materially adversely change or terminate is remote.
In each of 2022, 2023 and 2024 and for the six months ended June 30, 2025, revenue generated from our five largest customers for each of the respective year/period amounted to RMB40.1 million, RMB98.1 million, RMB133.5 million and RMB27.7 million, respectively, accounting for 23.6%, 38.3%, 46.4% and 51.5%, respectively, of our revenue.
Summary · p. 4
The composition of our five largest customers was evolving each year/period throughout the Track Record Period primarily due to our business model and the nature of digital twin products and solutions deployment.
Sales to our five largest customers in each year or period of the Track Record Period amounted to RMB154.3 million, RMB312.5 million, RMB268.3 million, and RMB171.8 million, respectively, representing 61.1%, 85.9%, 66.6%, and 74.2% of our total revenue for the years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2025, respectively; sales to our largest customer in each year or period of the Track Record Period amounted to RMB70.3 million, RMB111.0 million, RMB113.4 million, and RMB116.2 million, respectively, representing 27.8%, 30.5%, 28.2% and 50.1% of our total revenue, respectively.
Summary · p. 16
Such concentration of top five customers in each year or period of the Track Record Period was mainly attributable to: (i) for our transportation solution business, the steady revenue contribution from some of our major distributors, and (ii) for our energy solution business and urban management solution business which are generally project-based and may have projects of varying sizes, the revenue contribution from the larger projects of our customers.
Business · p. 268
We intend to further diversify our customers going forward by ways of developing and commercializing our newer businesses, such as those targeting areas of city transportation, airport and chemical engineering, as we replicate the successful industry experience and knowhow from our more established businesses.
Revenue generated from our top five customers accounted for 75.4%, 71.7%, 65.6% and 65.9% of our total revenue in each year/period during the Track Record Period, respectively, and revenue generated from our largest customer accounted for 35.1%, 25.3%, 22.9% and 25.0% of our total revenue in the same periods, respectively.
Summary · p. 7
All of our top five customers in each year/period during the Track Record Period are independent third parties, and as of the Latest Practicable Date, none of our Directors, their close associates or any shareholders which, to the best knowledge of our Directors, owned more than 5% of our issued share capital, had any interest in any of our top five customers in each year/period during the Track Record Period.
Business · p. 194
We expect to diversify and introduce more business partners to reduce our concentration risk.
For the years ended 31 December 2022, 2023, 2024 and the seven months ended 31 July 2025, revenue from our top five customers in each year/period accounted for approximately 93.9%, 90.1%, 88.1% and 81.7% of our total revenue for the relevant year.
Summary · p. 8
Our largest customer in each year/period accounted for approximately 41.0%, 24.2%, 31.2% and 40.8% of our revenue for the years ended 31 December 2022 and 2023, 2024 and the seven months ended 31 July 2025, respectively.
Business · p. 200
We have a high concentration of customers during the Track Record Period.
Revenue generated from our largest customer of each of the year/period during the Track Record Period for the years ended December 31, 2022, 2023, 2024 and the six months ended June 30, 2025 accounted for 78.4%, 31.2%, 37.4% and 46.7%, respectively, of our revenue during those periods.
Summary · p. 12
Revenue generated from our five largest customers of each of the year/period during the Track Record Period for the years ended December 31, 2022, 2023, 2024 and the six months ended June 30, 2025 accounted for 96.7%, 64.1%, 80.0% and 94.1%, respectively, of our revenue during those periods.
Summary · p. 12
Despite this concentration, we maintained a broad customer base, serving over 100 customers during the Track Record Period.
In 2022, 2023, 2024 and the six months ended June 30, 2025, revenue generated from our five largest customers in each period was HK$102.7 million, HK$116.5 million, HK$134.1 million and HK$64.7 million, respectively, accounting for 79.6%, 56.0%, 18.5% and 22.8% of our total revenue for the same periods, respectively.
Summary · p. 8
The revenue from our single largest customer during the same periods was HK$68.1 million, HK$83.4 million, HK$76.6 million and HK$34.8 million, respectively, representing 52.8%, 40.1%, 10.6% and 12.3% of our total revenue for those periods, respectively.
Revenue generated from our top five customers for each year/period during the Track Record Period accounted for 98.9%, 84.5%, 66.5% and 77.7% of our total revenue for the respective years/periods.
Summary · p. 20
(i) we have partnered with all of these customers for relatively long periods of time since our inception and have established mutually beneficial relationships with them; and (ii) we are highly involved in their market development and business promotion in the corresponding market process to advance the business expansion together, which enables us to gain a unique and deep understanding of their demands and preference, providing us competitive advantages as compared to our competitors.
We had only four customers in 2023 and all of our revenue in 2023 were generated from these four customers.
Summary · p. 21
For the year ended December 31, 2024 and the six months ended June 30, 2025, revenue generated from our five largest customers, calculated on the group level with entities controlled by the same group combined together, were RMB5.8 million and RMB41.7 million, respectively, representing 94.8% and 99.4% of our total revenue for the same year/period.
Business · p. 380
Revenue generated from our single largest customer in each year/period during the Track Record Period were RMB2.8 million, RMB2.8 million and RMB40.0 million, respectively, representing 40.9%, 45.9% and 95.3% of our total revenue for the same years/period.
During the Track Record Period, our five largest customers in each year/period together generated RMB730.8 million, RMB563.5 million, RMB722.5 million and RMB439.3 million of revenues, respectively, accounting for 43.8%, 43.0%, 36.9% and 28.8% of our total revenue, respectively.
Summary · p. 3
To the best of our knowledge and as of the Latest Practicable Date, we were not aware of any information or arrangement that would lead to the termination of our relationships with any of our five largest customers.
Business · p. 213
We intend to continue to diversify our customer base.
In 2022, 2023 and 2024 and for the five months ended May 31, 2025, revenue from our five largest customers in each year/period comprising the Track Record Period amounted to RMB268.5 million, RMB904.1 million, RMB391.0 million and RMB158.8 million, representing 61.5%, 77.2%, 75.2% and 61.8% of our total revenue for the respective years/period, while the largest customer in each year/period contributed 21.1%, 42.0%, 43.5% and 16.6% of our total revenue, respectively, for the same years/period.
Summary · p. 7
Although there appeared to be a substantial contribution of revenue from a limited number of customers during the Track Record Period, we believe there is no material reliance risk between each of the customers and us considering the composition of our top five customers varied each year/period during the Track Record Period due to shifts in downstream demand and project cycles, which is typical in the SiC epitaxial wafer industry.
Summary · p. 7
For example, we intend to deepen customer relationships by focusing on customer needs and enhancing customer stickiness. We also aim to acquire new customers domestically and internationally to further expand our customer base.
Revenue from our five largest customers for the years ended December 31, 2022, 2023, 2024 and for the five months ended May 31, 2025 accounted for 18.6%, 23.7%, 23.8% and 24.5%, respectively, of our total revenue during the same periods.
Business · p. 214
We developed business relationships with all of our five largest customers through introductions facilitated by industry associations, interactions at industry exhibitions, and proactive visits initiated by both parties in response to market demand.
Business · p. 218
As of the Latest Practicable Date, none of our Directors, their respective associates or any of our shareholders (who owned more than 5% of our issued share capital) had any interest in any of our five largest customers.
In 2022, 2023, 2024 and the five months ended May 31, 2025, our five largest customers in each period of the Track Record Period together generated RMB119.2 million, RMB115.1 million, RMB158.4 million and RMB157.1 million of revenues, respectively, accounting for 36.4%, 34.9%, 37.6% and 42.1% of our total revenue for the respective years or periods, respectively.
Summary · p. 7
To the best of our knowledge and as of the Latest Practicable Date, we were not aware of any information or arrangement that would lead to the termination of our relationships with any of our major customers.
Business · p. 202
None of our Directors and their respective associates, or Shareholders who owned 5% or more of the total issued Shares as of the Latest Practicable Date had any interest in any of our five largest customers during the Track Record Period.
Revenue from our five largest customers in each year/period during the Track Record Period amounted to RMB5,507.5 million, RMB12,018.8 million, RMB13,132.6 million and RMB5,751.4 million, respectively, and accounted for 40.8%, 87.0%, 86.6% and 79.7% of our total revenue for the same respective periods.
Summary · p. 11
Revenue from Innovation New Material in 2022, 2023, 2024 and the five months ended May 31, 2025 amounted to RMB0.2 million, RMB10,891.8 million, RMB11,608.9 million and RMB4,315.9 million, respectively, and accounted for 0.0%, 78.8%, 76.6% and 59.8% of our total revenue for the same respective periods.
Summary · p. 3
Short-distance transportation of liquid aluminum benefits both us, as an upstream electrolytic aluminum manufacturer, and Innovation New Material, as a downstream aluminum alloy processor.
In 2022, 2023 and 2024 and the six months ended June 30, 2025, revenue from our five largest customers in each year during the Track Record Period amounted to RMB17,589.7 million, RMB14,984.2 million, RMB11,734.9 million and RMB7,245.9 million respectively, accounting for 58.0%, 43.7%, 29.2% and 34.0% of our total revenue in the respective periods.
Summary · p. 8
We believe that the likelihood of any material adverse change in or termination of our business relationship with our top five customers is low, considering that (i) we have partnered with all of these customers for long periods of time and have established mutually beneficially relationships with them; and (ii) we are involved in the very beginning of their product development process, which enables us to gain a unique and deep understanding of their demands and preferences, giving us competitive advantages as compared to our competitors.
Business · p. 217
The decrease in revenue from Customer A from RMB5,513.0 million in 2022 to RMB3,548.0 million in 2024 and further to RMB1,841.8 million in the six months ended June 30, 2025, primarily due to the decrease in prices of nickel-based materials.
Our revenue from our five largest customers in each period during the Track Record Period, calculated on the group level with entities controlled by the same group combined together, were RMB266.8 million, RMB199.1 million, RMB5,537.8 million and RMB85.0 million in 2022, 2023 and 2024 and the six months ended June 30, 2025, respectively, representing 38.0%, 35.5%, 95.1% and 49.9% of our total revenue for the corresponding periods.
Summary · p. 12
Our revenue from our largest customer in each period during the Track Record Period were RMB110.1 million, RMB83.6 million, RMB5,334.3 million and RMB31.1 million, respectively, representing 15.7%, 14.9%, 91.6% and 18.2% of our total revenue for the corresponding periods.
Business · p. 468
To the best of our knowledge, (i) all of our five largest customers for each year/period during the Track Record Period are independent third parties, and (ii) 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 for each year/period during the Track Record Period.
In 2022, 2023, 2024 and the four months ended April 30, 2025, revenue generated from our five largest customers in each year or period of the Track Record Period in aggregate was RMB24,191 million, RMB27,927 million, RMB26,614 million and RMB21,303 million, representing 48.6%, 50.1%, 47.6% and 47.1% of our total revenue, respectively.
Summary · p. 9
In 2022, 2023, 2024 and the four months ended April 30, 2025, revenue generated from our largest customer during the Track Record Period was RMB10,985 million, RMB13,578 million, RMB13,174 million and RMB4,577.7 million, representing 22.1%, 24.4%, 23.6% and 23.2% of our total revenue, respectively.
Business · p. 267
To the best of our knowledge, none of our Directors, their respective close associates or any Shareholder who owned more than 5% of our issued share capital as of the Latest Practicable Date, had any interest in any of our five largest customers during the Track Record Period.
The revenue attributable to our five largest customers in each year/period during the Track Record Period was RMB415.7 million, RMB307.6 million, RMB169.3 million (US$23.6 million) and RMB96.4 million (US$13.5 million) for 2022, 2023, 2024 and the six months ended June 30, 2025, respectively, representing 78.8%, 76.6%, 46.8% and 48.4% of our total revenue for the corresponding year/period.
Summary · p. 14
The revenue attributable to our largest customer in each year/period during the Track Record Period was RMB155.9 million, RMB222.3 million, RMB88.2 million (US$12.3 million) and RMB33.1 million (US$4.6 million) for 2022, 2023, 2024 and the six months ended June 30, 2025, respectively, representing 29.6%, 55.3%, 24.4% and 16.6% of our total revenue for the corresponding year/period.
Summary · p. 14
In 2022, 2023 and 2024, we offered services and products to 21, 36 and 91 business customers, respectively.
In each of 2022, 2023, 2024 and for the six months ended June 30, 2025, the aggregate revenue generated from our five largest customers in each year/period during the Track Record Period were US$51.7 million, US$56.1 million, US$51.4 million and US$25.9 million, representing 75.7%, 77.9%, 68.5% and 73.1% of our revenues, respectively.
Summary · p. 14
Revenues generated from our largest customer in each year/period during the Track Record Period were US$21.2 million, US$22.5 million, US$30.7 million and US$11.1 million, representing 31.0%, 31.3%, 40.9% and 31.4% of our revenues, respectively.
Summary · p. 14
As we continue to commercialize our Level 4 autonomous driving technology through executing our go-to-market strategies, our customer base and profile are expected to constantly change, and we expect to further reduce our customer concentration.