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.
For our MEMS micro- and nanofabrication components, we outsource primarily surface electroplating processing, a surface treatment process for precision micro-components.
Business · p. 157
For the years ended December 31, 2023, 2024 and 2025, our outsourced processing costs amounted to approximately RMB22.4 million, RMB45.5 million and RMB66.6 million, representing approximately 9.9%, 9.5% and 9.4% of our total cost of sales, respectively.
We outsource the production of certain components of our servers, mainly chassis and printed circuit boards, to qualified third-party service providers that fabricate these components based on our design plans and technical specifications.
Business · p. 142
We also conduct regular on-site inspections of our contract manufacturers and, when necessary, assign personnel to oversee critical production stages.
The outsourcing service companies mainly assist us in conducting some of sales and production activities and the outsourced personnel employed by outsourcing service companies primarily undertake roles such as beauty advisors and production line workers in our production bases.
Business · p. 165
Pursuant to the service outsourcing agreements, the outsourcing service companies shall arrange for and manage their own employees to provide services to us, comply with applicable labor laws and regulations, and independently assume all statutory employer responsibilities and obligations, including those arising from non-compliance with relevant laws, while the service companies assume statutory employer responsibilities under applicable laws.
In line with industry practice, we engage experienced and well-qualified third parties to carry out chip tape-out and packaging processes in accordance with our proprietary specifications and process requirements allowing us to maintain strict standards of product consistency and system compatibility, while balancing cost and efficiency, thereby enhancing the overall flexibility and competitiveness of our production.
Business · p. 138
In accordance with industry practice, the chip tape-out process is carried out by qualified third-party.
Business · p. 151
In line with industry practices, we engage qualified and experienced third-party service providers in the semiconductor industry to carry out packaging strictly according to our proprietary standards and process requirements, ensuring product consistency, reliability, and system sustainability.
In 2023, 2024 and 2025, our outsourcing cost amounted to RMB28.8 million, RMB77.7 million and RMB114.1 million, respectively, accounting for 9.6%, 22.0%, and 30.8% of our cost of sales for the same years.
Business · p. 149
As of the Latest Practicable Date, we primarily cooperated with 5 outsourced service providers which can meet our requirements and the demands for our operations.
During the Track Record Period, the revenue from products manufactured by external manufacturers in each year accounted for approximately 0.6%, 0.4% and 0.3% of our total revenue in each respective year.
Business · p. 129
Under very few circumstances, we may outsource the manufacturing of certain products that involve relatively simpler manufacturing processes to external manufacturers due to cost consideration.
Business · p. 129
Subcontracting is generally prohibited without our prior written consent, and suppliers remain responsible for the performance of approved subcontractors.
During the Track Record Period, for portions of our laser chips, we primarily engaged qualified third parties for the packaging process to meet customers' specific requirements, which is in line with the general market practice.
We selectively outsource a limited number of standardized manufacturing processes to rigorously vetted contract manufacturers, such as electroplating and silver plating.
Business · p. 152
These outsourcing contract manufacturers must strictly adhere to our technical specifications and quality standards, with outsourced components undergoing our full inspection protocol before warehouse acceptance.
Business · p. 152
Furthermore, this approach also allows us to reduce reliance on external suppliers and contract manufacturers, optimize resource allocation and maintain competitive pricing while safeguarding product quality.
While we design and manufacture components for our products in-house, we outsource the processing of certain non-standard components to certain subcontractors.
Business · p. 196
We select subcontractors based on a number of factors, including their technical qualifications, their experience in similar projects, their financial strength and management capacity and their standing in the relevant market.
Business · p. 196
During the Track Record Period, all the subcontractors engaged by us are independent third parties.
In line with market practices, according to Frost & Sullivan, we outsource certain auxiliary production processes, such as sewing, hardware processing and silk-screening, to subcontractors, including third-party outdoor equipment manufacturers, Topsun Group and the Service Providers
Business · p. 172
During the Track Record Period, we engaged Topsun Group to procure certain auxiliary production services, such as sewing and hardware processing.
Business · p. 172
When selecting third-party subcontractors, we comprehensively evaluate key factors, including price, quality, production capabilities, location, financial stability and overall reputation.
We engaged certain subcontractors during the Track Record Period, including both (i) whole product manufacturers, to which we outsource the entire manufacturing processes of certain products, and (ii) production partners, to which we outsource certain steps of the manufacturing processes.
Business · p. 275
We engage whole product manufacturers primarily to supplement our production capacities.
Business · p. 275
For the years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2024 and 2025, our subcontracting costs amounted to RMB11.0 million, RMB25.5 million, RMB19.3 million, RMB7.1 million and RMB20.3 million, respectively, which accounted for 6.1%, 11.3%, 6.5%, 5.2% and 11.2%, respectively, of our total cost of sales during the same periods.
As a result, we adopt a practical and project-driven approach when deciding between external procurement and in-house development, where applicable.
Financial Information · p. 319
(iv) the increase in research and development expenses of RMB1.6 million, primarily attributable to an increase in technology service fees mainly related to outsourced R&D of several supportive and noncore software development tasks to third-party IT companies, partially offset by an improvement in gross profit of RMB5.5 million in line with the growth of our revenue.
For the years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2025, our data-related service fees amounted to RMB26.0 million, RMB30.3 million, RMB23.7 million, and RMB2.9 million, respectively, which were mainly in relation to service fees paid for outsourced data collection, cleaning, rendering and annotation.
Business · p. 293
While we have the experience and capability to conduct the relevant services ourselves without engaging such data-related service providers, we found it more cost-efficient to outsource such non-core services when and as needed to third parties so that we could focus our resources on our key R&D activities.
Business · p. 292
According to CIC, there were more than 4,000 such data related services providers in the PRC as of December 31, 2024.
Mount Wuyi Chatang Resort, our operating subsidiary in charge of our Chatang hotel, entered into an entrusted management arrangement with Fuzhou Thai Natural Wellbeing Management Group Ltd. (福州泰自然健康管理集團有限公司), an independent third party, according to which we entrusted the duties of management and operation of our Chatang hotel to Thai Natural.
Summary · p. 10
We entrusted Thai Natural to manage our Chatang hotel so that we can concentrate our labour resources on our signature Impression — Dahongpao Scenery Show and explore other business opportunities.
To supplement our production capacity of refractory mullite products, since October 2023, we have engaged Shandong Yonganda, an external processing service provider, to supply processing service related to the production of refractory mullite products to us, which is in line with industry practice.
Business · p. 221
We incurred outsourced processing costs of approximately RMB1.3 million, RMB15.0 million and RMB2.1 million for such service for 2023, 2024 and the five months ended May 31, 2025, respectively.
Business · p. 221
We believe that the services that we outsourced to our supplier of processing service are generally common in the market, and it would not be difficult for us to find alternative suppliers of processing service to provide similar services on terms similar with our existing contracting arrangement.
While we are capable of performing such services by ourselves, for less complex deployments that require relatively little customization for the customer, we may engage outsourced providers for on-site deployment since such process is relatively standardized and labor intensive.
Business · p. 266
During the on-site deployment process, we would have our own staff members on-site for supervision and management, regardless of whether we engage outsourced providers for the on-site deployment services.
Business · p. 266
labeling and solutions testing services, transitioning these functions from in-house personnel to third-party service providers to improve operational efficiency
Such service offerings are provided through third-party service providers connected through our digital platform.
Summary · p. 2
Our digital platform connected over 104 third-party installation and after-sales service providers serving over 360 cities in China as of March 31, 2025.
Business · p. 239
In 2022, 2023 and 2024 and the three months ended March 31, 2025, we have imposed fines on our installation and after-sales service suppliers due to installation quality issues or complaints at a total amount of RMB193.4 thousand, RMB226.3 thousand, RMB436.0 thousand and RMB113.7 thousand, respectively.
As of December 31, 2024, we also engaged 46 third party contractors to undertake construction and engineering work, 15 third-party contractors for exploration work and 52 third-party contractors for mining and processing work.
Summary · p. 20
For example, we engaged contractors for part of the mining activities in Tajikistan Jilau/Taror Gold Mines, Kyrgyzstan Taldybulak Levoberezhny Gold Mine, Australia Norton Gold Mine and Colombia Buritica´ Gold Mine during the Track Record Period.
Business · p. 355
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.
In 2022, we outsourced to Supplier B the research and development of multiple modules for our virtual goods management system, including modules for marketing management, virtual goods procurement, and user management, among others.
Business · p. 227
The contracts generally specify that after the development is completed, we have ownership over the work developed and the right to apply for patents and software copyrights for such work.
To improve R&D efficiency and allow our R&D staff to focus on the development of core AI models and technologies, we outsourced certain non-essential R&D tasks to third-party contractors, which typically include development of support modules for UniBrain, data annotation, testing and packaging.
Business · p. 255
Additionally, we engage thirdparty service providers to annotate the vast amount of data we use to train our models and improve our technologies.
Business · p. 256
Nevertheless, for the development of noncore modules that are highly generic and easily substitutable, we opt for outsourcing to reduce research and development expenses.