Full outsourcing without own production facilities
Hong Kong IPO disclosure precedents · 91 companies, 91 items
The company owns no or minimal production facilities and outsources all or substantially all manufacturing (e.g. fabless semiconductor models) to third-party foundries, contract manufacturers or OSAT partners, with associated supply and pricing dependence.
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.
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.
In 2023, 2024 and 2025, we had approximately 5,800, 7,200 and 7,500 contract manufacturers, respectively, and the products that we procured from these contract manufacturers accounted for a substantial majority of our products in terms of procurement value in each of these years.
Business · p. 183
Our SRS audits covered contract manufacturers who accounted for approximately 95% of our companybranded products by procurement value in each of 2023, 2024 and 2025.
Under this business model, we do not own or operate wafer fabrication, assembly, packaging, or testing facilities. Instead, we concentrate on high-value activities across the upstream portion of the value chain, including product definition, system architecture, integrated circuit design, and platform-level innovation, while outsourcing manufacturing-related processes to independent third-party foundries and OSAT partners.
Business · p. 135
Because we rely on third-party foundries and OSAT partners for wafer fabrication, assembly, packaging and testing, upstream capacity availability and wafer procurement pricing are primarily driven by our manufacturing partners and broader industry demand-and-supply dynamics, and we generally have limited bargaining power to materially influence such terms.
Business · p. 135
Throughout this process, we retain end-to-end responsibility to customers for product functionality, quality, delivery performance, and after-sales technical support, while our manufacturing partners are responsible to us for executing the relevant manufacturing and testing services in accordance with agreed specifications and service levels.
We operate a fabless model whereby we focus on R&D and design of ICs, while partnering with leading foundries and outsourced semiconductor assembly and test (“OSAT”) companies to ensure scalability.
Summary · p. 1
As a fabless IC design company, we depend entirely on third-party foundries for wafer fabrication and OSAT partners for testing and packaging.
Financial Information · p. 199
Strong relationships with foundries and OSAT partners enable us to secure prioritized capacity and mitigate the risks of supply chain disruptions.
We operate a fabless model focused on the R&D, design, and sale of integrated circuit products.
Business · p. 121
We engaged 4 wafer foundries and 33 OSATs during the Track Record Period and up to the Latest Practicable Date.
Business · p. 155
Suppliers who did not receive satisfactory results in the audit are required to develop an improvement plan based on the audit results and implement it within the given time frame.
With respect to the Assembled Products, we typically provided design blueprint to outsourced manufacturers, and the design blueprint will specify the required integrated circuits ("IC") for the printed circuit board assembly ("PCBA") to be used for the Assembled Products.
Business · p. 191
As such, we only have very few in-house manufacturing equipment.
Business · p. 191
(a) all of our manufacturing activities are conducted in China; (b) our procurements are all made in China from Chinese suppliers (including Chinese agents of US vendors); and (c) all of the technologies used in our production are proprietary technologies developed by our Company.
During the Track Record Period, we outsourced a majority of our power module packaging and PCBA production to third-party manufacturers.
Business · p. 144
Taking into account (i) the availability of a sufficient number of qualified third-party manufacturers in the market with mature production capabilities, (ii) our active role in supplier selection and oversight in production processes and (iii) our ongoing efforts to gradually build up in-house production capacity to supplement external supply, we do not consider ourselves to be materially dependent on any single third-party manufacturer.
We do not operate our own manufacturing facilities but follow a Virtual IDM model by investing in our wafer fabrication partner.
Business · p. 166
We work closely with our supply chain partners to monitor production schedules, manage quality control, and ensure a consistent supply to meet customer demands.
Business · p. 166
As all production is outsourced, we work closely with our outsourcing partners to develop optimized manufacturing processes that minimize quality issues during mass production.
We have engaged a long-established provincial state-owned manufacturer whose manufacturing facilities are GMP-compliant in accordance with both PRC and TGA standards, to manufacture all our own brand CCMG products.
Business · p. 124
Outsourcing therefore enables us to supply such products to the market without the need for significant capital investments in manufacturing facilities and equipment.
Business · p. 124
We have implemented strict quality control procedures to ensure the quality, safety and reliability of our products that are outsourced to third-party manufacturers.
We operate an asset-light model under which we primarily outsource wafer processing, packaging and testing to third-party foundries and OSAT service providers, rather than making substantial capital investments in in-house packaging and testing facilities like certain peers, i.e., independent memory product enterprises.
Business · p. 139
At the same time, compared with peers that conduct packaging and testing in-house, our asset-light model may provide us with less direct control over certain packaging and testing processes, and we may be more exposed to third-party capacity allocation, lead-time fluctuations, quality control coordination and supply chain disruptions.
Business · p. 139
We operate under a fabless business model and do not directly engage in wafer fabrication or packaging activities, and only undertake partial testing work internally.
The production of our chips is carried out through outsourcing to wafer foundries and assembly and testing companies.
Business · p. 115
We manage and monitor outsourced chip production through the following measures: optimizing production parameters and monitoring yield data to continuously improve product yield, requiring foundries to follow standard control plans for comprehensive quality management, and marking each chip for traceability to wafer fabrication and assembly and testing information.
Business · p. 115
During the Track Record Period and up to the Latest Practicable Date, we did not experience quality issues or shortages with our procurement that materially affected our operations.
Changan Automobile acts as contract manufacturer for us.
Business · p. 149
We maintain oversight of all outsourced manufacturing activities and conduct final acceptance inspections to ensure compliance with our product, process and quality standards.
With respect to our GNSS chips and modules, we primarily focus on R&D, market expansion, and product sales, with all production processes outsourced.
Business · p. 172
In relation to our GNSS modules, we utilize an OEM collaboration model.
Business · p. 172
Although we currently do not operate any manufacturing facilities, we have a number of policies in place to select and continuously evaluate the foundries and ensure compliance with the relevant requirements.
We employ a fabless business model, hiring third-party foundries and contractors to manufacture, assemble, and test our perceptual interaction solutions.
Business · p. 145
While the assembly and testing are handled externally, we set testing protocols, quality standards and target yield rates.
Business · p. 145
We have established a comprehensive supplier management system to ensure the quality and reliability of externally provided processes, products and services.
We primarily adopt an asset-light business model by partnering with carefully selected third-party contractual manufacturers who manufacture our products according to our designs and specifications.
Business · p. 143
During the Track Record Period, over 90.0% of our products were manufactured under this model.
Business · p. 143
To mitigate the inherent risks associated with this business model, we maintain strategic relationships with multiple qualified contractual manufacturers, implement comprehensive quality assurance systems, establish explicit contractual safeguards, and conduct regular performance evaluations of our contractual manufacturers.
We outsource our major manufacturing processes, including wafer fabrication, packaging, and testing, to third-party suppliers.
Business · p. 150
To further enhance our quality control and oversight, we station our quality management personnel on-site at our key suppliers to conduct regular quality audits and oversee the manufacturing process.
Business · p. 151
Since we operate under a fabless model, the quality of our products is dependent on the performance of our third-party supply chain partners.
During the Track Record Period, we outsourced primarily the following three service areas to contractors: (i) equipment rental and field operations; (ii) logistics, transportation and site support; and (iii) professional and technical services.
While we do not maintain a standalone formal audit procedure specifically dedicated to contractor workforce compliance, compliance is monitored through contractual review prior to engagement and periodic administrative checks during the course of cooperation.
With respect to the manufacturing capabilities, we did not have any in-house manufacturing facility as of the Latest Practicable Date, and have no plan to establish manufacturing facility.
Business · p. 199
To ensure our CDMOs meet regulatory requirements and our internal standards, we have implemented procedures to assess their production qualifications, facilities and processes.
Business · p. 198
Given our strong relationships with current partners and the availability of alternative qualified CDMOs, we do not anticipate difficulties in securing suitable manufacturing partners in the future.
During the Track Record Period, we outsourced the entire manufacturing process of our robotic controllers and robots to third-party manufacturers.
Summary · p. 3
As of December 31, 2023, 2024 and 2025, we had cooperated with 28, 34 and 42 third-party manufacturers, respectively.
Business · p. 162
We mainly evaluate and select these manufacturers through a comprehensive process focused on six key dimensions: technical capabilities, quality control, supply chain and delivery capability, commercial terms, service support and financial stability.