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.
We collaborate with third-party food processing companies, which prepare semiprocessed food products and bakery products for us based on our proprietary recipes.
Business · p. 190
Currently, we collaborate with 205 third-party food processing companies.
Business · p. 191
The company's explanation, the adviser's view and the page in the filing: see MattersFirst, it will give us direct control over raw material sourcing and production processes.
Business · p. 199
The total revenue generated from hospitals where the Operational Service Provider is involved to provide operational services was RMB0.9 million, RMB2.3 million, RMB11.3 million, RMB4.4 million and RMB8.1 million in 2021, 2022, 2023, and the six months ended June 30, 2023 and 2024, respectively.
Business · p. 331
We have begun to and expect to focus on providing operational services to hospitals by ourselves going forward without third-party service providers such as the Operational Service Provider.
Business · p. 331
The company's explanation, the adviser's view and the page in the filing: see MattersWe expect that the amount of revenue generated from customers involving the Operational Service Provider will decrease in the future, and our reliance on the Operational Service Provider to reach more hospital customers will continue to decline.
Business · p. 335
In 2021, 2022, 2023 and the six months ended June 30, 2023 and 2024, the costs incurred by such third-party packaging, testing and assembly services amounted to RMB10.7 million, RMB65.8 million, RMB189.0 million, RMB137.7 million and RMB103.1 million respectively, which accounted for 4.3%, 12.4%, 19.8%, 25.4% and 22.0% of our total cost of sales for the respective periods.
Business · p. 258
According to Frost & Sullivan, it is a common industry practice for IDM companies to engage third-party packaging, testing and assembly service providers to carry out packaging and testing and module assembly services according to IDM companies’ own designs and specifications.
Business · p. 258
The company's explanation, the adviser's view and the page in the filing: see MattersWe require our service providers to comply with our internal policies and closely monitor their performance.
Business · p. 258
Due to seasonal fluctuation of logistics demand and the imbalanced supply and demand across different regions, we leverage outsourced service providers as a constructive supplement to our resources.
Business · p. 269
According to Frost & Sullivan, outsourcing arrangement is a common market practice in the logistics industry.
Business · p. 269
The company's explanation, the adviser's view and the page in the filing: see MattersWe have established procedures in selecting the third-party transportation service providers we engage with, including reviewing their operating history, fleet condition, and reliability, among other criteria.
Business · p. 255
During the Track Record Period, we engaged certain subcontractors to produce advanced display LED modules.
Business · p. 267
Before placing any purchase orders with our subcontractors, we ensure to seek and obtain our customers' prior approval, as generally required for the engagement of subcontractors.
Business · p. 267
The company's explanation, the adviser's view and the page in the filing: see MattersWe carefully select subcontractors from a pool of reputable candidates.
Business · p. 268
For the years ended 31 December 2021, 2022 and 2023 and the four months ended 30 April 2024, our subcontracting cost amounted to approximately RMB0.2 million, RMB5.4 million, RMB2.5 million and RMB0.2 million, respectively, which accounted for approximately 0.3%, 6.7%, 2.5% and 0.6%, respectively, of our total purchase, for the relevant year.
Business · p. 247
We subcontract such ancillary work to our subcontractors because we consider that (a) the subcontracting allows us to focus on core areas that we are experienced in; and (b) increase our flexibility and capacity in carrying out our insurance agency services, IT and consulting services, thereby enabling us to operate more efficiently and cost-effectively.
Business · p. 247
The company's explanation, the adviser's view and the page in the filing: see MattersOur Group has implemented the following measures to supervise and ensure the quality of the performance of our subcontractors: (i) maintaining relationships with a number of subcontractors so that we do not have to rely on any particular subcontractor and can find alternatives within a short period of time;
Business · p. 248
Given that our sale and marketing team and technicians were not able to travel to other regions of the PRC under travel restrictions due to the COVID-19 pandemic during the Track Record Period, our Directors consider that engaging such consulting services are more cost effective and efficient.
Business · p. 171
For the years ended 31 December 2021, 2022 and 2023, these outsourcing service fees incurred by us amounted to approximately RMB16.2 million, RMB23.1 million and RMB29.9 million which represent approximately 9.2%, 8.1% and 8.5% of our total cost of sales, respectively.
Business · p. 172
The company's explanation, the adviser's view and the page in the filing: see MattersWe also purchase some components processed by third parties based on our design and technical specifications.
Business · p. 170
During the Track Record Period, we collaborated with third-party outsourcing companies to carry out business operations in regions that our employees did not readily cover.
Business · p. 262
During the Track Record Period, our outsourcing expenses were RMB7.9 million, RMB16.0 million and RMB16.5 million in 2021, 2022 and 2023, respectively, accounting for 1.7%, 3.0% and 2.3% of our total revenue in the same periods, respectively.
Business · p. 262
The company's explanation, the adviser's view and the page in the filing: see MattersIn this case, the outsourced service providers are responsible for performing the relevant work according to our specifications, and we are responsible for supervising their work performance and progress.
Business · p. 262
We hire qualified subcontractors primarily to provide cleaning, security and common area facility repair and maintenance services on our behalf in order to optimize our cost of sales.
Business · p. 237
In 2021, 2022 and 2023, our labor costs and subcontracting costs recorded under our cost of sales were RMB391.8 million, RMB472.9 million and RMB564.5 million, respectively, accounting for 77.2%, 78.1% and 75.9% of our cost of sales in the same years, respectively.
Financial Information · p. 324
The company's explanation, the adviser's view and the page in the filing: see MattersWe formally review and evaluate our subcontractors at least once per year.
Business · p. 238
To better manage our production cost and complement our production capability and capacity, we engage third-party processing service providers for some of our non-core manufacturing processes during the Track Record Period.
Business · p. 213
For precision machining, we may send the parts and components to third-party processing service providers for surface treatment and cleaning, as the surface treatment and cleaning process require specific licence and special equipment to operate and such arrangement could minimise our capital expenditures, control our production costs and hence achieve cost-effectiveness of our manufacturing process.
Business · p. 213
The company's explanation, the adviser's view and the page in the filing: see MattersIf there is any identified issue with the product quality, we will issue a non-compliance report and return the product to the third-party processing service provider for repair or reproduction.
Business · p. 213
During the Track Record Period, we outsourced certain research and development in relation to (i) certain ICT projects where our Group’s research team does not have capacity to develop certain specific type of technology on our own and it was not commercially efficient to hire an extra employee for the research work solely for the purpose of handling such an one-off project; and (ii) CDN technology where extra research capacity is needed in addition to our existing research capacity of our Edge Computing Services.
Business · p. 249
The company's explanation, the adviser's view and the page in the filing: see MattersOur Directors are of the view that it is a common practice in the industry and it is more commercially efficient to outsource to third-party research professionals for the research of certain specific technology which we do not possess.
Business · p. 249
In FY2020, FY2021, FY2022 and 9M2023, we have engaged seven, five, five and four subcontractors and our subcontracting labour cost amounted to approximately RMB28.3 million, RMB37.2 million, RMB30.3 million and RMB29.0 million, which represents approximately 41.6%, 41.7%, 40.9% and 41.8% of our total cost of sales for the same period, respectively.
Summary · p. 6
The company's explanation, the adviser's view and the page in the filing: see MattersOur Directors consider that there is no over-reliance on any individual subcontractor and no material risk of disruption to our normal operations since (i) we maintain a list of qualified subcontractors which is updated by us periodically, and (ii) there are many subcontracting companies of comparable size and quality available in the market.
Business · p. 228
Since February 2021 and up to the Latest Practicable Date, we carry out substantially all of our mining works comprising demolition, drilling, blasting and excavation works ourselves seeking to reduce the costs of mining but outsource all the refining and logistics works to qualified third-party subcontractors.
Summary · p. 2
Engagement of subcontractors enables us to achieve better cost controls, reduce our capital expenditures and operating cash costs and minimise our exposure to operational risks associated with labour and safety.
Business · p. 233
The company's explanation, the adviser's view and the page in the filing: see Mattersthe percentage of direct labour costs and subcontracting costs to sales (excluding the effect of increase in average selling price of gold bullion) decreased from approximately 11.5% for FY2020 to approximately 9.5% for FY2021, representing an increase in gross profit margin of approximately 2.0% and net profit margin of approximately 1.5%.
Summary · p. 15
Our independent third party processing partners primarily provide processing services for our flavored tea products, such as Little Green Mandarin, while we are responsible to provide adequate tea leaves and packaging materials.
Business · p. 225
Our cost of sales increased by 3.3% from RMB89.3 million in the six months ended June 30, 2022 to RMB92.2 million in the six months ended June 30, 2023, primarily due to the increase in revenue generated from Tea Mama products, resulting in increases in consigned processing expenses and packaging expenses for such products.
Summary · p. 11
The company's explanation, the adviser's view and the page in the filing: see MattersPrior to being admitted to our qualified supplier list, supplier candidates shall provide us with nationally recognized third-party test reports for their products and pass our internal sampling tests.
Business · p. 226
We employ subcontracting arrangements and use various third party service providers in our operations mainly given that (i) cleaning and maintenance services are labour intensive; (ii) we may have a number of ongoing projects from time to time, some of them may be in different provincial-level regions in the PRC; and (iii) we do not own a sufficient number of specialised vehicles to complete certain projects.
Business · p. 200
For the years ended 31 December 2020, 2021 and 2022 and the six months ended 30 June 2022 and 2023, our subcontracting labour costs amounted to approximately RMB149.9 million, RMB188.9 million, RMB172.9 million, RMB84.4 million and RMB85.9 million, respectively.
Business · p. 201
The company's explanation, the adviser's view and the page in the filing: see MattersFor the years ended 31 December 2020, 2021 and 2022 and the six months ended 30 June 2022 and 2023, our subcontracting labour cost largely remained stable, amounting to 38.9%, 39.8%, 34.6%, 34.7% and 34.2% of our costs of services, respectively.
Business · p. 201
During the Track Record Period, we exclusively engaged Modern Creative, which is our connected person as our debt collection agent.
Business · p. 189
We also conduct phone interviews with our debt collection agent and site visits for quality control purpose to monitor its activities thereby ensuring that they are in compliance with rules and regulations with respect to their collection activities on our behalf.
Business · p. 190
The company's explanation, the adviser's view and the page in the filing: see MattersWe pay a fixed minimum quarterly fee plus an extra service fee (if applicable) to Modern Creative.
Business · p. 190
However, we engage third party transportation service providers to complete a portion of the transportation to supplement our capacity.
Business · p. 238
We also contract for air and sea shipping for our cross-border services as well as shipping across Indonesia and the Philippines.
Business · p. 227
The company's explanation, the adviser's view and the page in the filing: see MattersWe maintain direct control over parcels going through our network.
Business · p. 238
In 2020, 2021 and 2022, subcontracting costs amounted to RMB14.2 million, RMB20.7 million and RMB20.1 million, respectively, which accounted for approximately 9.9%, 11.2% and 9.9%, respectively, of our total cost of sales.
Business · p. 277
To ensure the overall quality of our subcontractors, we maintain a list of subcontractors based on our series of assessment standards, including, among others, the amount of registered capital, qualifications, size of overall operations, track record performance, management style and operational procedures.
Business · p. 278
The company's explanation, the adviser's view and the page in the filing: see MattersWe also conduct annual surveys among property owners and residents regarding the quality of services provided by our subcontractors.
Business · p. 280
The company's explanation, the adviser's view and the page in the filing: see MattersTo balance efficiency, service quality and scalability, and in order to satisfy our customers' nationwide, diverse and complete technical support demand, we also collaborate with third-party technical companies for their engineers to support our managed IT services in geographical areas where we have less presence.
Business · p. 201
Our suppliers during the Track Record Period were mainly providers for services including server, research and development, cloud computing, storage capacity and telecommunications.
Business · p. 245
During the Track Record Period, we engaged third-party research and development service providers mainly for the upgrade of our CRM system, as well as the development of certain module components of our Powershopy platform.
Business · p. 245
The company's explanation, the adviser's view and the page in the filing: see MattersWe select suppliers based on a variety of factors, including their qualification, reputation, pricing and overall services.
Business · p. 245