We enter into long-term supply agreements with our suppliers in connection with our promotion and distribution of their products nationwide or across broader geographic regions, and to secure stable procurement of finished pharmaceutical products within our core product portfolio.
Business · p. 147
These agreements, typically spanning three to five years, focus on products with strong market competitiveness, such as those in high demand with limited competition or those that are imported and original.
Business · p. 147
Generally, each agreement sets out annual purchase volumes, pricing, delivery schedules and incentives for excess purchases. Payment terms generally require a 50% advance payment upon order placement, with the remaining 50% due upon completion of production and delivery.
We have maintained such contractual arrangements since July 2021 for each of our mass-produced vehicle models, which can be extended by both parties in writing.
Business · p. 149
We enjoy the exclusive supplies of contract products and components.
In June 2026, we entered into a 60-month computing power service agreement, pursuant to which we lease computing resources with related networking, deployment, operation and maintenance and support services, enhancing the stability and flexibility of our access to computing resources.
Partly as a response to our gross loss attributable to certain legacy inventory as detailed in “Financial Information — Our Gross Loss in 2024,” we began formalizing these arrangements by entering into standard distribution agreements with our distributors starting in 2025.
Business · p. 149
As of December 31, 2025, we had entered into distribution agreements with 68 distributors in aggregate whose sales in aggregate generated approximately RMB1,199.1 million, representing approximately 47.5% of our total revenue in 2025, and we are continuing to enter into such agreements with more distributors.
Business · p. 151
For certain distributors, the Company may adjust purchase prices with at least one month’s prior notice in response to changes in raw material costs, market conditions or prevailing market price trends.
We have maintained a strong and successful partnership with Customer A for approximately 12 years since 2013 and with Customer B for approximately 14 years since 2011.
Business · p. 141
Our collaborations with Customer A and Customer B are both governed by long-term framework agreements. These framework contracts establish the foundational scope, terms, and quality standards for our contract manufacturing services.
Business · p. 141
These agreements are generally non-exclusive with no minimum purchase obligations.
In recognition of the strategic importance of our products to its supply chain and future technology roadmap, Customer A entered into an cooperation agreement with us in 2025 to secure a stable supply of our high-performance conductive carbon material products.
Business · p. 132
- Term: The agreement is valid for a period of three years unless either party provides written notice of termination.
Business · p. 132
- Pricing: Customer A may request quotations from time to time, and we are generally required to provide quotations within the timeframe specified by Customer A.
To secure stable diesel supply, subsidiaries of the Company have entered into various forward purchase agreements for high speed diesel (HSD) with PT AKR Corporindo Tbk starting from 1 November 2022 to 31 October 2027 or 31 May 2032, as applicable, for the Group’s mining operations.
Business · p. 204
To further enhance supply security, the Company is in the process of constructing an additional fuel storage tank, expected to be completed in 2H2026.
Business · p. 205
Given that diesel cost accounts for approximately 2-4% of total AISC over LOM, the recent fluctuation in diesel price is not expected to have significant negative impact on the Company’s financial performance and profitability.
To ensure a stable supply of certain critical raw materials, we have entered into a long-term supply agreement with one core supplier.
Business · p. 147
If we fail to purchase the agreed quantities, we may be required to pay for the agreed quantities that are not purchased, provided that the supplier has made such products available for purchase.
Business · p. 147
In return, the supplier agrees to reserve certain production capacity and maintain agreed pricing during the term of the agreement.
- minimum service fee or guaranteed payment arrangements, pursuant to which our local partner is required to pay a minimum agreed amount during specified periods regardless of actual service usage, subject to contractual conditions;
Business · p. 140
- long-term technical support or cooperation commitments, which may include ongoing system maintenance, product upgrades and collaborative development efforts during the agreed cooperation term.
Business · p. 140
Given the strategic and long-term nature of such projects, the contractual terms are negotiated on a case-by-case basis.
During the Track Record Period, we entered into a three-year partnership agreement with a Europe-based customer for exclusive and non-exclusive sales of BESS products and solutions in specified European countries, which includes annual minimum purchase commitments of the customer.
Business · p. 135
The agreement permits price adjustments upon at least 30 days’ prior written notice, subject to good faith discussions between the parties.
If we obtain the marketing authorization of LNK01001 for AS as scheduled, we will receive a reward of up to RMB7.5 million from Simcere. If we fail to obtain the marketing authorization of LNK01001 for AS as scheduled, we will pay Simcere compensation of up to RMB7.5 million.
Business · p. 191
Prolonged delays in any indication may require renegotiation of commercial rights, including possible reallocation of sales and promotion rights to other indications.
Business · p. 191
This collaboration shall continue unless one party breaches the terms of the agreement and fails to remedy the breach or obtain the other party’s understanding within 90 days.
Before submitting the NDA, (i) Junze Chuangyao has the option to pay 50% of the actual expenses incurred in Phase I, Phase II and Phase III clinical trials, thereby maintaining 50% rights and interests in HJ197 in the Collaboration Area.
Business · p. 209
Junze Chuangyao may also terminate the HJ197 Agreements if HJ197 is rejected for marketing approval or the sales of HJ197 are terminated.
Business · p. 209
After a comprehensive assessment, we chose to out license HJ191 to maximize its value with a partner and to concentrate internal resources on HJ891.
On March 21, 2023, we entered into a development and license agreement with Biohaven Therapeutics Ltd., a wholly owned subsidiary of Biohaven Ltd. (NYSE: BHVN) (“Biohaven”), where we granted Biohaven exclusive rights to research, develop, manufacture and commercialize our brain penetrant dual TYK2/JAK1 inhibitor program, known as TLL-041 to us, for the treatment of diseases, disorders or conditions in humans in all territories worldwide excluding mainland China, Hong Kong, Macau and Taiwan.
Summary · p. 6
On July 3, 2023, we entered into a license and development agreement with Shanghai Tenovation Biopharmaceutical Co., Ltd. (上海建毅騰創生物醫藥科技有限公司) (“Tenovation”) where we granted Tenovation an exclusive, royalty-bearing license worldwide for Tenovation to research, develop, manufacture, and commercialize TLL-009 and any veterinary drug product comprising TLL-009 for the diagnosis, treatment and/or prevention of diseases in animals, excluding any applications for human use.
In addition, some of our key customers have entered into production capacity commitment agreements with us whereby they will pay us deposit in advance to reserve our production capacity to mitigate their potential material supply shortages.
Summary · p. 1
As demand for FCBGA Substrates exceeded available supply, certain downstream customers have entered into production capacity commitment agreements with us to secure our production capacity.
Business · p. 123
Our assigned personnel would monitor the respective refundable capacity commitment deposits and promptly analyse the changes in its valuation, and report and take measures immediately upon identifying any risk factors.
Under the framework agreements, we shall provide the relevant products exclusively to the corresponding customers, provided that certain purchase volume thresholds are met.
Business · p. 143
Customer A has exclusive distribution rights for the customized AI Scaler if it met certain purchase volume thresholds.
Business · p. 149
The term of our framework agreements, particularly for wafers and services like packaging and testing, is typically around three to eight years.
We have entered into a Master Evaluation Agreement with Supplier A, which serves as the overarching contract, along with a Master Software Agreement and a Components Supply Agreement executed under it.
Business · p. 168
The agreements have an initial term of five years and automatically renew on a year-to-year basis under the same terms, unless either party provides written notice of termination at least 60 days prior to the applicable anniversary of the initial effective date of the agreements.
Business · p. 168
Since our cooperation, we have not experienced any interruption or restriction of renewing our agreements with Supplier A or use of Supplier A’s chips.
Pursuant to the Production Capacity Reservation Agreement, PSMC committed to supplying and we committed to purchasing certain number of wafers according to an agreed schedule.
Business · p. 153
We believed maintaining operational agility through normal procurement arrangements better serves our business strategies than making rigid purchase commitments with PSMC.
In addition, we have secured a long-term capacity reservation agreement with an overseas offshore wind customer, scheduling to 2030 and covering 400,000 tonnes of dedicated production capacity.
Business · p. 108
The first supply contract under this agreement has been signed, with subsequent projects to be executed progressively.
Business · p. 108
For example, we have signed long-term strategic cooperation framework agreements with leading domestic steel mills, which are accepted by our customers, to secure favorable commercial terms and ensure a stable supply chain;
Our prepayments, other receivables, and other assets decreased from RMB124.9 million as of December 31, 2023 to RMB88.5 million as of December 31, 2024, primarily due to an increase in impairment losses on prepayments made under a long-term supply agreement that we entered into to prevent potential temporary shortages in supply for certain parts in 2023.
Financial Information · p. 184
As of April 30, 2026, RMB92.0 million, or 65.9% of our prepayments, other receivables, and other assets as of December 31, 2025 had been settled.
On January 10, 2024, we entered into a long-term industrial off-gas sales and purchase agreement with Jiyuan Metallurgical to regulate the provision of industrial off-gas by Jiyuan Metallurgical to Shoulang Jiyuan, pursuant to which Jiyuan Metallurgical undertook to provide Shoulang Jiyuan with a continuous and stable supply of the industrial off-gas required for the operation of Shoulang Jiyuan.
Summary · p. 12
As advised by our PRC Legal Advisor, under the industrial off-gas procurement agreement, if Jiyuan Metallurgical suspended or insufficiently supplied industrial off-gas without proper reason and caused losses to Shoulang Jiyuan, Jiyuan Metallurgical may be liable for damages for breach of contract.