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)
For FY2021, FY2022, FY2023 and 6M2024, the revenue generated from our five largest customers was RMB14.9 million, RMB8.9 million, RMB15.9 million and RMB9.9 million, respectively, representing 37.6%, 44.4%, 38.3% and 43.6% of our revenue for the same periods, respectively, and the revenue generated from our largest customer for respective year/period amounted to RMB5.1 million, RMB3.7 million, RMB4.5 million and RMB2.9 million, respectively, representing 12.8%, 18.4%, 10.8% and 12.6% of our revenue for the same periods, respectively.
Summary · p. 7
Our relationship with our five largest customers for each year/period during the Track Record Period ranges from four months to seven years.
Business · p. 212
Save for Customer J, 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 as at the Latest Practicable Date had any interest in any of the five largest customers of our Company for each year/period during the Track Record Period.
Revenue generated from our five largest customers in each year or period during the Track Record Period accounted for 77.7%, 75.4%, 47.7% and 96.6%, respectively, of our revenue for the respective year or period.
Summary · p. 14
Our sales amount from Customer A was RMB24.6 million and RMB72.0 million in 2021 and 2022, respectively, accounting for 40.7% and 43.5% of our total revenue for the respective year.
Business · p. 272
Our Directors are of the view that our customer concentration during the Track Record Period is mainly due to our early commercialization stage, and we expect to develop a more diverse customer base as we enhance our commercialization efforts with more product lines and upgraded solutions.
Revenue generated from our largest customer accounted for approximately 35.0%, 38.1%, 36.1%, 34.1% and 31.7% of our total revenue for the years ended 31 December 2021, 2022 and 2023 and the four months ended 30 April 2023 and 2024, respectively.
Summary · p. 18
For the years ended 31 December 2021, 2022 and 2023 and the four months ended 30 April 2024, our revenue attributable to Customer A amounted to approximately RMB42.0 million, RMB56.5 million, RMB62.8 million and RMB18.6 million, respectively, which accounted for approximately 35.0%, 38.1%, 36.1% and 31.7% of our total revenue for the corresponding period, respectively.
Business · p. 238
Despite such customer concentration, our Directors are of the view that there is no material reliance on our existing major customers and we are capable of sustaining our services in the future, primarily because:
For the years ended 31 December 2021, 2022 and 2023, revenue from our five largest customers in each respective year during the Track Record Period amounted to approximately RMB116.4 million, RMB318.0 million and RMB400.3 million, representing approximately 46.9%, 75.9% and 73.6% of our total revenue, respectively
Summary · p. 3
Our Directors consider that we are not reliant on any of our five largest customers and Customer A and such customer concentration is not uncommon for the petroleum refinery and petrochemical equipment industry and the business model of our Group is sustainable despite the customer concentration
Business · p. 165
Due to the limitation of our Group’s size and scale of operation, and the fact that some contract amount are very large, it is reasonable to have our Group’s revenue for each year to be overwhelmingly dominated by just a few large contracts
Sales amount generated from our five largest customers in each year of the Track Record Period amounted to RMB197.8 million, RMB192.0 million and RMB287.1 million, respectively, representing 43.0%, 37.2% and 35.4% of our total sales amount for the same years, respectively; sales amount generated from our largest customer in each year of the Track Record Period amounted to RMB58.5 million, RMB63.0 million and RMB80.2 million, respectively, representing 12.7%, 12.2% and 9.9% of our total sales amount for the same years, respectively.
Business · p. 317
Sales amount generated from our five largest customers in each year of the Track Record Period represented 43.0%, 37.2% and 35.4% of our total sales amount for the same years, respectively.
Summary · p. 12
we have also been actively diversifying our own customer portfolio by pursuing direct relationships with enterprise-level users, where appropriate, and reduce any reliance on a limited number of system integrators, which can further help mitigate concentration risk and exposure to specific payment practices.
During the Track Record Period, our five largest customers in each year of the Track Record Period accounted for approximately 52.7%, 38.6% and 33.3% of our total revenue, respectively. During the same periods, our largest customer in each year of the Track Record Period accounted for approximately 31.6%, 21.8% and 19.0% of our total revenue, respectively.
Summary · p. 8
During the Track Record Period, our revenue contributed by Customer A represented 31.6%, 21.8% and 19.0% of our total revenue, respectively.
Business · p. 293
As advised by Customer A, as its major business focus is on the core business of 4S stores and have limited in-house technology infrastructure, data operation, dedicated research and development capacities, marketing tools and manufacturing resources, it would rely on third-party suppliers to provide products and relevant value-added solutions.
For each year during the Track Record Period, revenue generated from our five largest customers in 2021, 2022 and 2023 accounted for 21.6%, 34.5% and 35.4%, respectively, of our total revenue in the same periods.
Summary · p. 11
Revenue from Customer A accounted for 15.1%, 55.5% and 51.2% of our revenue from digital precision marketing services in 2021, 2022 and 2023, respectively.
Business · p. 252
Therefore, we believe our collaboration with Customer A is mutually beneficial to each other’s business, as Customer A’s sales of such financial product were dependent on our precision marketing capabilities to promote such financial product to suitable financial product users on a large scale, and we grew our digital precision marketing services business through facilitating the sales of such financial product to potential financial product users.
In 2021, 2022 and 2023, revenue derived from services provided to our single largest customer, Xi'an ETDZ MC, amounted to RMB201.5 million, RMB224.5 million and RMB233.4 million, respectively, accounting for 33.9%, 31.8% and 27.1% of our total revenue, respectively.
Summary · p. 14
our Directors are of the view, and the Sole Sponsor concurs after due and careful inquiry, that it is unlikely that our relationship with Xi'an ETDZ MC would be terminated in the foreseeable future.
Summary · p. 14
Throughout the Track Record Period, we had made continuous efforts to enlarge our customer base by including more Independent Third Parties and to diversify our source of revenue.
The Group’s revenue attributable to its five largest customers in each year during the Track Record Period amounted to approximately RMB476.3 million, RMB409.9 million and RMB592.3 million, representing approximately 99.4%, 99.2% and 97.2% of its total revenue, respectively, while the revenue attributable to the largest customer of the Group in each year during the Track Record Period, namely Customer A, accounted for approximately 69.5%, 57.5% and 48.8% of its total revenue, respectively.
Summary · p. 6
The Directors consider that the Group’s concentration in revenue is largely attributable to the limited number of telecommunications network operators in the PRC’s telecommunications industry as mentioned above, essentially taken up almost all of the market share.
Business · p. 232
The Directors believe that the high revenue contribution from Customer A is largely due to the fact that (i) the Group is based and the majority of its projects are located in Jiangxi Province where Customer A enjoys a dominant market position; and (ii) the Group had established a relatively long business relationship with Customer A compared with other telecommunications network operators.
In each year during the Track Record Period, revenue contributed from our five largest customers was approximately S$29.8 million and S$31.0 million, respectively, representing approximately 76.0% and 80.0%, respectively, of our total revenue.
Summary · p. 3
As a result, a significant portion of our revenue during the Track Record Period was derived directly and indirectly from Customer A.
Business · p. 195
Our Directors consider that the business model of our Group is sustainable despite the customer concentration during the Track Record Period due to the following factors:
For each of the years ended December 31, 2021, 2022 and 2023, revenue from our five largest customers accounted for 41.1%, 43.7% and 62.3% of our total revenue, respectively, and revenue from our largest customer accounted for 11.7%, 12.4% and 20.1% of our total revenue, respectively.
Summary · p. 7
The percentage of our five largest customers’ revenue contribution increased substantially for the year ended December 31, 2023 as compared to the revenue contribution for the years ended December 31, 2021 and 2022, primarily due to the commencement of our cooperation with Customer L, who mainly used mobile number-related three-factor authentication API.
Business · p. 215
For example, in 2023, while we had approximately 10,700 active registered paying customers, the top 1% of our active registered paying customers accounted for 97.3% of our revenue.
For the years ended December 31, 2021, 2022 and 2023, sales to our five largest customers in each year were RMB731.5 million, RMB583.2 million and RMB581.2 million, representing 26.3%, 18.6% and 21.8% of our total revenue for the same periods, respectively, and sales to our single largest customer in each year accounted for 13.6%, 6.3% and 8.1% of our total revenue for the same periods, respectively.
Business · p. 168
We do not rely on any particular customers to purchase our products under our self-produced products and product trading segments, and the overall market demand for our products is not materially affected by any particular customers' business decision to increase or decrease their purchases from us during a particular period.
Business · p. 170
None of our Directors or their respective associates or any Shareholder, who to the knowledge of our Directors, owns more than 5% of the issued Shares immediately after completion of the Global Offering, had any interest in any of our five largest customers during the Track Record Period.
For each year during the Track Record Period, our revenue generated from our five largest clients accounted for 74.6%, 77.5% and 67.3%, respectively, of our revenue in the same year.
Summary · p. 6
Our revenue generated from our largest client for the years ended 31 December 2021, 2022 and 2023 accounted for 28.7%, 20.5% and 20.9%, respectively, of our revenue during those years.
Business · p. 229
As at 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 clients.
The revenue generated from our five largest customers in 2021, 2022 and 2023 was RMB38.8 million, RMB66.1 million and RMB63.3 million, respectively, representing approximately 61.8%, 49.6% and 36.3% of our total revenue in the same years, respectively.
Summary · p. 18
During the Track Record Period, our customers consisted primarily of China- and U.S.-based biotechnology and pharmaceutical companies.
Business · p. 463
Our customer retention rate was approximately 67.5%, 51.4% and 64.9%, respectively, in 2021, 2022 and 2023.
In each year of the Track Record Period, revenue from our five largest customers amounted to RMB143.3 million, RMB133.5 million and RMB129.6 million, respectively, accounting for 33.1%, 29.2% and 23.2%, respectively, of our total revenue.
Summary · p. 8
We have a broad base of individual customers and we believe we do not have individual customer concentration risks.
Business · p. 285
Our five largest customers, including advertising customers under our online reading platform services business and our digital marketing services business and a game operator under our online games publishing services, accounted for approximately for 33.1%, 29.2% and 23.2% of our total revenue for the years ended December 31, 2021, 2022 and 2023, respectively.
During the Track Record Period, our five largest customers in each year accounted for approximately 60.9%, 58.4% and 54.9% of our total revenue for the years ended 31 December 2021, 2022 and 2023, respectively, while our largest customer in each year accounted for approximately 20.6%, 18.9% and 16.7% of our total revenue for the respective year.
Summary · p. 9
Given (i) our Group’s extensive sales network; (ii) the market recognition and the proven track record with a long established history, our Directors believe that our Group has no major obstacles in expanding our customers base.
Our aggregate revenue from our five largest customers in each year of the Track Record Period amounted to RMB181.0 million, RMB120.2 million and RMB124.5 million, accounting for 26.8%, 25.7% and 25.3% of our total revenue in the respective periods
Summary · p. 8
our revenue from our largest customer in each year of the Track Record Period amounted to RMB71.0 million, RMB65.1 million and RMB78.9 million, representing 10.5%, 13.9% and 16.0% of our total revenue in the respective periods.
Summary · p. 8
During the Track Record Period and as of the Latest Practicable Date, our transactions and collaboration with China Grand Automotive Services Group Co., Ltd. were conducted on normal commercial terms.
For FY2021, the total revenue attributable to Shenzhen EDA Group’s five largest customers amounted to RMB228.5 million, representing 36.2% of total revenue.
Summary · p. 8
For FY2022 and FY2023, total revenue attributable to our five largest customers in each year amounted to RMB242.1 million and RMB447.5 million, respectively, representing 34.2% and 37.0% of our total revenue, respectively.
Business · p. 223
We have maintained long-standing and stable business relationships of, on average, around four years of business relationships with our five largest customers in each year during the Track Record Period.
For FY2021, FY2022 and FY2023, the total revenue contributed by our core customers amounted to RMB507.6 million, RMB568.6 million and RMB1,075.8 million, representing 80.3%, 80.2% and 90.0% of the total revenue, respectively.
Summary · p. 5
During the Track Record Period, the number of the core customers, (with which we dedicate specialized sales effort owing to the fact that they are customers which contributed more than RMB3 million of the revenue for the respective years), increased from 40 in 2021 to 49 in 2022 and further to 58 in 2023.