Our subcontracting charges amounted to US$18.7 million, US$20.9 million, US$19.1 million and US$6.7 million in 2023, 2024 and 2025 and the six months ended June 30, 2026, respectively.
Business · p. 140
We acquired these companies to bring certain processing and manufacturing capabilities in-house, enhance our control over production quality and delivery schedules, and support the continued manufacturing of our HRS.
In 2023, 2024, 2025 and the five months ended May 31, 2026, the costs incurred by such third-party services amounted to RMB57.8 million, RMB66.2 million, RMB66.9 million and RMB37.7 million respectively, which accounted for 11.9%, 11.4%, 10.4% and 12.5% of our total cost of sales for the respective periods.
Business · p. 158
As of the Latest Practicable Date, we primarily cooperated with 17 outsourced service providers which we believe can meet the demands for our operations.
Business · p. 158
Since assembly and packaging are highly standardized and mature processes, we believe partnering with reputable service providers enables specialized expertise and enhances both our cost management and operational efficiency.
We adopt the fabless model, focusing on the design and R&D of our products while outsourcing fabrication and packaging and testing of chip, chipsets and/or circuit boards to trusted manufacturers and packaging, testing and assembly service providers.
Business · p. 185
Collaborating with established manufacturers and packaging, testing and assembly service providers grants us access to manufacturing technologies and economies of scale, ensuring our chip, chipsets and/or circuit boards are fabricated using most suitable processes and materials.
Business · p. 186
We have implemented comprehensive measures to ensure that our suppliers compliance with our product quality requirements.
materials for consigned processing, mainly representing products and related materials sent to third-party service providers for routine ancillary processing, such as packaging, assembly with lids and plastic components, and application of decorative elements or product markings
Financial Information · p. 223
materials for consigned processing of RMB10.6 million, as we outsourced certain non-core processes of household heat-resistant glass due to stronger customer demand and limited in-house personnel capacity
During the Track Record Period, our in-house production was primarily focused on smartphones, while our feature phones, our IoT products and others as well as a portion of our smartphones, were primarily manufactured by ODM and OEM providers, which are generally located in Chinese Mainland.
Business · p. 121
We engage ODM and OEM providers primarily to (i) utilize external capacity to address seasonal order fluctuations and reduce recruitment pressure; (ii) produce certain new products at their initial testing stages and products with smaller volumes that we prefer not to mass-produce in-house; and (iii) benefit from our ODM and OEM providers’ specialized expertise in certain areas.
Business · p. 124
We carefully manage and monitor the performance of our ODM and OEM providers, and require our ODM and OEM providers to comply with our internal guidelines and policies.
Specifically, during the Track Record Period, SMT, casing assembly, protective cover production and certain PCB water proofing were fully outsourced.
Business · p. 142
During the Track Record Period, we engaged an aggregate of 23 independent third-party manufacturers for different processes.
Business · p. 145
We apply process controls over our manufacturing partners to help ensure product quality, including controlled custody of consigned materials, acceptance sampling and visual criteria in line with prevailing national/industry standards, on-site oversight and recordkeeping, and at least a 12-month contractual arrangement for free rework for manufacturing-defect units under our standard processing contracts.
During the Track Record Period, we engaged third-party contract manufacturers for the SMT assembly of ICs on PCBs and the front-end focusing lens assembly processes to complement our in-house production.
Business · p. 174
During the same period, our outsourced processing costs in relation to these contract manufacturers amounted to RMB13.0 million, RMB8.3 million, RMB15.1 million and RMB3.4 million, representing 5.0%, 2.3%, 3.0% and 2.1% of our total cost of sales, respectively.
Business · p. 174
We outsource these sub-processes because they require specialized equipment and technical expertise, and engaging third-party contract manufacturers for these specific processes allows us to optimize our overall production efficiency and focus our in-house resources on core manufacturing processes of our spatial sensing products.
Mining operations (drilling, blasting, loading and haulage) are outsourced to a third-party mining engineering company, an Independent Third Party, under a contractor mining arrangement (the "Mining Contractor").
Due to the intensive competition in the relevant contracting service market, we do not believe that it would be difficult for us to find alternative contractors to provide similar services on terms comparable to those with our existing contractors.
During the Track Record Period, we outsourced a limited portion of our supplementary production processes including PCB surface mounting and cable and tire assembly, to certain third-party manufacturers.
Business · p. 164
During the Track Record Period, we engaged 11, 17, 22 and 21 third-party manufacturers, with the outsourced processing costs amounting to RMB1.0 million, RMB7.0 million, RMB34.3 million, and RMB23.8 million, respectively, accounting for 6.7%, 10.9%, 15.5% and 15.0% of our cost of sales in the same periods, respectively.
In our SiPh business, we engaged a third-party contract manufacturer (Supplier G, see “— Supply Chain — Major Suppliers”) to perform assembly and manufacturing work at their production facilities in 2025 and four months ended April 30, 2026.
Business · p. 157
In 2025 and for the four months ended April 30, 2026, outsourced manufacturing service costs accounted for approximately 20.3% and 24.3% of our purchase for the year/period, respectively.
Business · p. 158
We did not have such outsourced arrangement in 2023 and 2024.
We may from time to time engage contract manufacturers to manufacture certain components (i.e., raw materials) and certain optical network terminal products (i.e., finished products).
Business · p. 150
Finished products manufactured by our contract manufacturers were zero in 2023 and accounted for approximately 3%, 5% and 7% of our total revenue in 2024, 2025 and the six months ended June 30, 2026, respectively.
In 2023, 2024 and 2025 and for the six months ended June 30, 2026, we cooperated with four, six, nine and eight OEM/ODM partners, respectively, and fees paid to our OEM/ODM partners accounted for 1.2%, 2.8%, 3.4% and 4.2% of our total purchase amounts for the same years, respectively.
Business · p. 171
Leveraging OEM/ODM partners’ manufacturing expertise, cost advantages, and scalability, such collaboration enables us to optimize production efficiency and reduce capital investment, while ensuring the quality and performance standards of our products.
Most of construction activities for our facilities are carried out by independent contractors.
Business · p. 165
If a contractor fails to meet the agreed timeline or quality standards, resulting in project delays or deficiencies, they may be liable for penalties as stipulated in the contract.
Business · p. 165
In cases of material breach, we reserve the right to terminate the agreement and seek compensation for any resulting economic losses.
As a fabless semiconductor company, we do not own wafer fabrication, packaging or testing facilities, and our suppliers consist principally of foundries and OSAT vendors, which together account for a substantial majority of our purchases.
Financial Information · p. 186
For each year/period of the Track Record Period, foundry services accounted for approximately 65% to 70% of our total purchases.
Business · p. 148
We also enter into separate quality agreements with our packaging and testing partners, which set out the yield rates and other quality standards they must meet.
During the Track Record Period, we engaged with (i) five, six and three CROs in 2024, 2025 and the six months ended June 30, 2026, respectively; and (ii) one, two and one SMOs in 2024, 2025 and the six months ended June 30, 2026, respectively.
Business · p. 193
Therefore, our Directors are of the view that we do not have any reliance on any individual CRO or SMO for our research and development activities.
Business · p. 193
During the Track Record Period, we cooperated with two, three and two CDMOs in 2024, 2025 and the six months ended June 30, 2026, respectively, with corresponding expenses of approximately RMB2.9 million, RMB3.5 million and RMB3.0 million.
Given the scale of our business, the diversity of our product portfolio and our broad customer base, we selectively perform packaging, testing, SMT and assembly in house at our facilities in China and Brazil while outsourcing the remainder to third-party OSAT service providers, which enhances the scalability and flexibility of our operations.
Business · p. 173
We believe it is generally feasible to identify and qualify additional providers if needed. In addition, we have built our own back-end manufacturing capacities in the Chinese mainland and Brazil, which give us internal flexibility to handle packaging, testing and assembly processes in-house.
Before we transitioned to substantial in-house production, we engaged manufacturing partners to support part of our production needs.
Business · p. 155
Since the commencement of operation of our own production facilities, we no longer engaged Supplier D for assembly services from FY2025 onwards.
Business · p. 164
We engaged this supplier to provide such labour support in order to complement the operation of our robots and ensure the overall completeness and service quality of our RaaS solutions.
During the Track Record Period, we procured 14 series of finished engines from two contract manufacturers, including seven series of medium- to light-duty engines and six series of marine engines from a GY Entity and one series of marine engines from GYMCL, under such contract manufacturing arrangements.
Business · p. 124
Throughout this process, we retain all intellectual property rights, which represent the core value of our products.
Business · p. 124
In terms of quality control, we have the right to conduct on-site quality inspections at the contract manufacturers' facilities to ensure compliance with our quality control standards, including compliance with our engine designs and specifications, production processes and product quality standards.
At present, we do not own or operate manufacturing facilities and primarily rely on reputable CDMOs for the production of our clinical-stage products.
Business · p. 181
During the Track Record Period, we outsourced the manufacture of active pharmaceutical ingredients (APIs) and drug products to industry-recognized CDMOs in China to support the preclinical studies and clinical trials of our drug candidates.
Business · p. 181
For GMP production of clinical-stage products, we adopt the MAH model, under which qualified CDMOs with GMP certification manufacture clinical samples pursuant to production service agreements.