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 2022, 2023, 2024 and the three months ended March 31, 2025, our revenue from our five largest customers in each year/period in the aggregate accounted for 18.3%, 17.5%, 18.9% and 18.1% of our total revenue during the corresponding years/periods, respectively.
Summary · p. 4
Our revenue from the largest customer in each year/period during the Track Record Period accounted for 9.6%, 7.9%, 7.5% and 6.3% of the total revenue for the respective periods.
Business · p. 215
To the best of our knowledge, none of our Directors, their respective associates or any shareholder who owned more than 5% of our issued share capital of our 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.
During the Track Record Period, we only generated revenue from one customer, Jiangxi Tungsten Corporation Limited, since we just commenced commercial production for phase I in April 2025 and only made sales to this customer pursuant to our sales agreements with them.
Business · p. 282
We only had one customer during the Track Record Period, and none of our Directors or their associates, and none of our existing Shareholders who (to the knowledge of our Directors) own more than five percent of our issued share capital, had any interest in this customer.
Business · p. 283
To mitigate the risk of deriving our revenue from a very limited number of customers, we had implemented and intend to implement the following measures:
In 2022, 2023 and 2024, and the five months ended May 31, 2025, our five largest customers in each period during the Track Record Period contributed 54.2%, 46.1%, 38.4% and 34.0%, respectively, to our total revenues in the same year.
Summary · p. 5
As confirmed by Frost & Sullivan, having such a level of concentration is common in the energy storage batteries market due to the high concentration of market players in the telecommunication industry and data center industry.
Business · p. 231
Our Directors are of the view that despite the concentration of revenues from Customer A and Customer C, the sustainable growth of our business will not be materially affected as our relationship with the relevant customers is unlikely to experience a material adverse change or termination.
Revenue generated from our five largest customers in each year of 2022, 2023, 2024 and the three months ended March 31, 2025, amounted to RMB270.8 million, RMB639.9 million, RMB1,011.8 million and RMB215.6 million, respectively, accounting for 65.0%, 51.3%, 57.2% and 52.9% of our total revenue, respectively in the same periods.
Summary · p. 10
Our five largest customers in each year and period during the Track Record Period contributed to over half of our revenue, primarily because the SiC power semiconductor device market is relatively concentrated with few prominent market players holding a combined market share of over 95%, according to Frost & Sullivan.
Business · p. 214
(i) our business relationships with our major customers are mutually beneficial and complementary, given that our long-term cooperation with our major customers have led to our familiarity with their standards and requirements, which enable us to reduce communication costs and build mutual trust; and (iii) we had entered into long-term strategic agreements with renowned customers and suppliers.
Revenue from our single largest customer amounted to RMB25.9 million, accounting for 68.0%, of our total revenue in the five months ended May 31, 2025.
Business · p. 331
In the five months ended May 31, 2025, sales of Efsubaglutide Alfa to distributors in China accounted for 100% of our revenue from sales of Efsubaglutide Alfa during that period of RMB38.1 million.
Business · p. 326
All of our five largest customers in each year/period during the Track Record Period are independent third parties.
For the three months ended March 31, 2025, the revenue from our five largest customers in aggregate accounted for 45.3% of our total revenue, and our largest customer contributed 23.5% of our total revenue.
Summary · p. 12
Our five largest customers during the Track Record period are CDCs in first and second-tier cities in China.
During the Track Record Period, we had only one customer, BeiGene.
Summary · p. 18
In 2023, we received reimbursement totaling RMB8.9 million (US$1.3 million) from BeiGene for our performance of a specified bridging study under the BeiGene Agreement.
Summary · p. 18
Our customer during the Track Record Period was an Independent Third Party.
In 2022, 2023 and 2024, our five largest customers in each year during the Track Record Period together generated RMB182.7 million, RMB208.3 million, and RMB281.2 million of revenues, respectively, accounting for 56.6%, 50.6%, and 46.8% of our total revenue, respectively.
Summary · p. 3
Revenue from our largest customer in each year of the Track Record Period accounted for 20.9%, 17.5% and 15.0% of our total revenue, respectively.
Business · p. 172
We have maintained long-term and stable collaboration relationships with our five largest customers in each year of the Track Record Period for five to nine years.
For each year during the Track Record Period, revenue generated from our five largest customers accounted for 30.8%, 45.3% and 42.1%, respectively, of our total revenue during each period.
Summary · p. 7
Geekplus JP, one of our five largest customers in 2024, is a Japanese company in which we own approximately 39.6% equity shares.
Summary · p. 7
For each period during the Track Record Period, revenue generated from our single largest customer accounted for 9.3%, 15.4% and 15.5%, respectively, of our total revenue.
Our revenue generated from our top five customers during each year of the Track Record Period combined accounted for approximately 41.8%, 36.7%, and 35.3% of our total revenue, respectively.
Summary · p. 4
These key customers, numbering 24, 32, and 32 in 2022, 2023, and 2024, respectively, contributed 80%, 86%, and 89% of the Company's total revenue for those corresponding years.
Business · p. 181
Their retention rates were 78%, 100%, and 72% for the years ended December 31, 2022, 2023, and 2024, respectively, surpassing those of customers contributing lower threshold of RMB1 million or more, with rates of 71%, 72%, and 68% for the same corresponding years and contributing higher at least RMB15 million, with rates of 88%, 100% and 70% for the same corresponding years.
In 2022, 2023 and 2024, sales to our five largest customers amounted to RMB38,878.3 million, RMB45,282.2 million and RMB56,707.4 million, accounting for 83.3%, 83.1% and 81.1% of our total revenue in the respective periods.
Summary · p. 4
We believe that the likelihood of any material adverse change in or termination of our business relationship with our five largest customers in each year during the Track Record Period customers is low, considering that (i) we have partnered with all of these customers for long periods of time and have established mutually beneficial relationships with them; and (ii) we are involved in the very beginning of their product development process to develop the end products together, 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. 167
While we expect Customer/Supplier A to remain as our largest customer in at least 2025 and as an important customer going forward, we expect the revenue contribution from Customer/Supplier A to account for less than 50% of our total revenue in 2025.
In 2022, 2023 and 2024, the total revenue generated from our five largest customers in each year during the Track Record Period amounted to RMB157.3 million, RMB162.6 million and RMB222.3 million, respectively, representing 44.8%, 48.3% and 50.3% of our revenue in the same year, respectively, and revenue generated from our largest customer in each year during the Track Record Period accounted for 15.4%, 20.9% and 26.8% of our revenue in the same year, respectively.
Summary · p. 7
The average length of our relationships with our five largest customers in each year during the Track Record Period is approximately 10 years; many customers choose to retain us for multiple stages as their peptide products progress toward commercialization and large-scale production as proved by the high average CDMO customer retention rate of over 90% during the Track Record Period.
Business · p. 245
Our revenue increased by 31.3% from RMB336.8 million in 2023 to RMB442.2 million in 2024, primarily due to an increase in revenue from one customer in the U.S. focusing on development of GLP-1 drugs, driven by its respective drug development progress and increased demand for our services.
We have a large customer base and we do not rely on any single customer.
Summary · p. 6
In 2022, 2023 and 2024 revenue from our five largest customers in each year during the Track Record Period accounted for 30.8%, 27.4% and 26.7% respectively, of our total revenues during the same years.
Summary · p. 6
In 2022, 2023 and 2024, revenue from our largest customer in each year during the Track Record Period accounted for 13.1%, 9.3% and 7.0%, respectively, of our total revenues during those years.
In 2022, 2023 and 2024, our five largest customers together generated RMB431.5 million, RMB675.2 million and RMB876.0 million of revenue, respectively, accounting for 13.9%, 13.1% and 15.3% of our total revenue, respectively.
Summary · p. 2
In addition, revenue generated from our largest customer accounted for RMB283.2 million, RMB461.2 million and RMB637.7 million, respectively, representing 9.1%, 9.0% and 11.2% of our total revenue in 2022, 2023 and 2024, respectively.
Business · p. 237
None of our Directors and their respective associates, or Shareholders who owns 5% or more of the total issued Shares had any interest in any of our five largest customers during each year of the Track Record Period.
Our five largest customers in each year during the Track Record Period accounted for 62.4%, 72.4% and 77.9% of our total revenue for FY2022, FY2023 and FY2024, respectively; and our largest customer in each year during the Track Record Period accounted for 21.3%, 28.5% and 24.1% of our total revenue for FY2022, FY2023 and FY2024, respectively.
Business · p. 198
Our Directors are of view that our reliance on our customers, in particular, Walmart and Telebrands (being the single largest customer of different year during the Track Record Period), would not have a material adverse impact on our business sustainability, given that (i) we have maintained long-term and stable collaboration relationships with them, (ii) our framework agreements remains effective until either party intends to terminate or is automatically renewed at expiration, (iii) during the Track Record Period and up to the Latest Practicable Date, we did not have any material disputes with them, and (iv) we have maintained good business relationships, and currently, there is no indication or sign from them that our existing relationship will materially adversely change in the near future.
In each year during the Track Record Period, our five largest customers accounted for approximately 35.9%, 35.9%, 32.9% of our total revenue, respectively, and sales to the largest customer accounted for approximately 13.1%, 14.6% and 12.6% of our total revenue, respectively.
Business · p. 221
As of the Latest Practicable Date, none of our Directors, their associates or any of our Shareholders (who owned or to the knowledge of Directors had owned more than 5% of our issued share capital) had any interest in any of our five largest customers in each year during the Track Record Period.
Business · p. 224
During the Track Record Period and up to the Latest Practicable Date, none of our customers requested to terminate their agreements with us.
For each year during the Track Record Period, revenue from our five largest customers collectively accounted for 18.1%, 20.4% and 15.8% of our total revenue, respectively, and for each year during the Track Record Period, revenue from our largest customer accounted for 12.9%, 16.5% and 12.5% of our total revenue, respectively.
Summary · p. 14
During the Track Record Period, substantially all of our patients and/or customers for our hospital business consisted of individuals, and none of the five largest individual patients in each year and/or customers contributed more than 1.0% of our total revenue in each year.
Business · p. 388
As of the Latest Practicable Date, all of our five largest customers in each year during the Track Record Period were Independent Third Parties, and to the best of the knowledge of our Directors, none of our Directors, their respective associates or any shareholder who owned more than 5% of our issued share capital had any interest in any of our five largest customers in each year during the Track Record Period.
During the Track Record Period, we derived revenue primarily from milestone payments from LG Chem in connection with the out-licensed TT-01025.
Summary · p. 17
During the Track Record Period, we derived revenue primarily from milestone payments from LG Chem in connection with the out-licensed TT-01025.
Business · p. 393
To the knowledge of our Directors, none of our Directors, their respective associates or any of our Shareholders holding more than 5% of our issued share capital as of the Latest Practicable Date had an interest in LG Chem.
The revenue attributable to our five largest customers in each year during the Track Record Period was RMB100.7 million, RMB126.4 million and RMB140.7 million in 2022, 2023 and 2024, respectively, accounting for 74.4%, 72.4% and 68.2% of our total revenue for the corresponding years.
Summary · p. 7
According to CIC, such customer concentration is not uncommon for companies providing mobile advertising services in the PRC.
Business · p. 221
We have agreements with each of these programmatic platforms under similar terms and have not encountered difficulties in renewing them. Additionally, we are not required to enter into exclusive agreements with any of these platforms.
Sale to our five largest customers in each year during the Track Record Period accounted for approximately 56.2%, 53.9% and 55.6% of our total revenue respectively, and sale to our largest customer in each year during the Track Record Period accounted for approximately 22.9%, 16.5% and 17.3% of our total revenue, respectively.
Summary · p. 4
Our Directors believe that we have successfully established a solid and stable customer base with high customers’ stickiness due to our commitment to provide high-quality products with excellent services in a sustainable production environment.