Hong Kong IPO disclosure precedents · 101 companies, 101 items
Companies mainly producing in-house but outsourcing secondary or auxiliary processes and components (e.g. SMT mounting, lens or cable assembly, accessories) to third-party manufacturers, including outsourcing costs and historical transition to self-production.
In line with market practices, according to Frost & Sullivan, we outsource certain production processes, such as production of Extruded Pet Food, to one subcontractor during the Track Record Period, which was an Independent Third Party.
Business · p. 139
Our subcontracting fees amounted to RMB11.0 million, RMB7.6 million and RMB7.7 million for 2023, 2024 and 2025, respectively.
Business · p. 139
Since February 2026, we terminated the subcontracting agreement with the subcontractor and strategically turned to use our own production base instead.
While we self-develop all core components of our L2-L2+ and L4 driving solutions based on our CalmVolution platform, we outsource the development of ancillary components of our solutions to third party software service providers to increase efficiency and reduce overall development costs.
Business · p. 149
To effectively manage our supply chain, we have adopted the Procurement Management Policy to regulate the processes of supplier screening, selection and evaluation.
Except for the sterilization step described above, which we engage third parties to conduct, we perform all other key steps such as stent processing, balloon forming and assembling in-house.
Business · p. 142
We select third party service providers based on their qualifications and sterilization capabilities, and we only enter into agreements with service providers that meet our standards.
During the Track Record Period, we primarily outsourced our (i) drilling; (ii) mining and tunneling; and (iii) ore transportation within our mines and ore processing plants to third-party contractors in accordance with our design and plan and the applicable production-safety requirements.
Business · p. 172
We have implemented strict rules and standards to ensure the quality and safety of our contractors, including but not limited to on-site inspections by our Group.
Business · p. 173
For the fiscal years ended March 31, 2024, 2025 and the nine months ended December 31, 2025 our total sub-contracting fees during our operations amounted to approximately USD73.9 million, USD91.1 million and USD79.6 million, respectively.
We typically engage qualified third-party outsourced service providers in China to perform certain non-core services.
Business · p. 151
In 2023, 2024 and 2025, our outsourced service expenses amounted to RMB184.8 million, RMB257.5 million and RMB239.2 million, respectively.
Business · p. 152
We monitor fluctuations in outsourced service fees and conduct periodic sensitivity analyses to evaluate the impact of labor cost changes on project profitability.
In order to supplement our in-house production capacity when our customers' demand temporarily exceeded our production capacity, we outsourced the "mass shredding" process to third-party manufacturers, who were all Independent Third Parties, in 2023 and 2024.
Business · p. 165
We have strict quality control measures with these third-party manufacturers to maintain our product standards, including requiring them to satisfy our technical specifications and comply with all applicable industrial and national quality standards.
Consistent with industry practice, reliance on third-party launch service providers is inherent and inevitable for satellite industry participants that do not operate proprietary launch vehicles.
Business · p. 161
We have experienced such situations in the past.
Business · p. 161
While the risk of launch delays or failures cannot be entirely eliminated, we seek to manage and mitigate such risks through structured launch procurement, project execution and customer communication processes, including the following measures:
During the Track Record Period, all of our products were produced in-house to ensure stringent quality control and knowhow protection. To enhance production flexibility and resource efficiency, we selectively outsource certain standardized and non-core production processes, such as certain non-core machinery and wire embedding, to rigorously vetted contract manufacturers.
Business · p. 135
These outsourcing contract manufacturers must strictly adhere to our technical specifications and quality standards, with all outsourced components undergoing our full inspection protocol before warehouse acceptance to guarantee performance parity with in-house productions.
For raw materials that are not core to manufacturing and can be sourced from mature industrial supply chains, we may outsource production to qualified suppliers based on cost-efficiency considerations and industry practices.
Business · p. 196
In this model, we provide detailed design drawings and technical specifications to approved subcontractors, who are subject to strict qualification reviews and continuous quality monitoring.
Business · p. 196
During the Track Record Period, we manufactured substantially all our products, including those for our emerging business, through in-house production, leveraging our established manufacturing facilities.
During the Track Record Period, we engaged over 480 contract manufacturers. The outsourced manufacturing fees amounted to RMB1,224.0 million, RMB1,550.2 million and RMB1,779.7 million in 2023, 2024 and 2025, respectively, representing 10.9%, 11.1% and 11.5% of our cost of sales in the same years.
Business · p. 147
Meanwhile, to optimize capacity and enhance efficiency while safeguarding our core technologies, we selectively entrust certain non-core manufacturing procedures to qualified third party contract manufacturers.
Business · p. 146
We implement contract manufacturer management measures, including qualification reviews and periodic performance assessments, and provide relevant process documentation and technical guidance to ensure compliance with our specifications and quality standards.
During the Track Record Period, our procurement primarily comprised (i) third-party software products such as technology platform software and ancillary value-added hardware products such as AGV and automated storage and retrieval systems, as well as (ii) technology services provided by third parties related to the provision of digital and intelligent technology services.
Business · p. 129
For specialized products required by customers, we conduct supplier selection procedures among more than three qualified suppliers in accordance with our internal procurement policies.
Business · p. 129
We conduct annual performance evaluations for our suppliers covering product quality, service standards, delivery timeliness and overall cooperation, and the results form the basis for continued engagement or elimination.
During the Track Record Period, we outsourced certain machined casting processes to suppliers on an as-needed basis to manage demand peaks.
Business · p. 93
Subcontractors are independent third parties required to hold ISO 9001:2015 Quality Management Systems certification, pass audits under the Carraro Supplier Quality Manual, and meet contractual terms covering price, quality, lead times, and payment.
We currently use reputable third-party logistics providers for line haul transportation of our pharmacies’ products, and we use our own staff in our nationwide pharmacy network for last-mile delivery to hospitals and clinics.
Business · p. 115
In addition, as drug logistics requires better temperature control during storage and delivery process, we pay particular attention to cold chain logistics partner selection to ensure a smooth drug supply.
Business · p. 115
For long distance delivery, we work with reputable third-party cold chain logistics providers to leverage their warehouses and vehicles designated for pharmaceuticals and medical instruments and equipped with control and monitoring systems to comply with specific environmental parameters.
During the Track Record Period, we outsourced a small portion of non-core manufacturing procedures to third-party manufacturers, mainly including surface mounting and surface spraying processes.
Business · p. 115
During the Track Record Period, all these outsourced manufactures are independent third parties form us, and procurement amounts from these outsourced manufacturers accounted for less than 1% of our total cost of sales.
While we design and manufacture components for our products in-house, we outsource the processing of certain non-core and relatively simple components such as PCBs to our suppliers for custom production.
Business · p. 141
Fee we incurred for labour subcontracting arrangement for our production amounted to RMB14.6 million, RMB24.7 million and RMB50.3 million for FY2023, FY2024 and FY2025, respectively.
Business · p. 141
Our Directors consider that outsourcing non-core production processes to subcontractors is beneficial for us to focus our business efforts on cultivating and enhancing our R&D capabilities, which we have core competitiveness.
To meet delivery schedules and enhance overall manufacturing efficiency, we also engage qualified third-party manufacturers to perform certain processing tasks mainly including SMT processing, final assembly and packaging.
Business · p. 158
In 2023, 2024 and 2025, we engaged nine, seven and eight outsourced manufacturers, respectively, to support our production activities.
Business · p. 158
We have established a comprehensive management system to ensure the quality and reliability of outsourced operations.
We outsource the development of certain software products to optimize our use of resources.
Business · p. 153
To ensure the software's compatibility with our products and solutions, we rigorously select software suppliers based on their industry-specific expertise, reputation and their technical capabilities.
As of December 31, 2025, we employed 476 sales personnel and 8,881 flexibly recruited sales personnel placed by Contract Sales Organizations (“CSOs”).
Business · p. 157
We implement strict internal procedures to select the CSOs based on factors such as the quality of talent pools, industry experience, credibility, and reputation.
During the Track Record Period, our outsourcing expenses were RMB18.0 million, RMB15.7 million and RMB18.2 million in 2023, 2024 and 2025, respectively, only accounting for 2.7%, 2.1% and 2.2% of our total revenue in the respective years.
Business · p. 161
Under these circumstances, the outsourced service providers were responsible for executing the work according to our specifications, while we retained oversight of their performance and progress.