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.
At current stage, as all our manufactured products are investigational drugs for clinical trial use, we arrange production schedules in accordance with clinical development plans and outsource the manufacturing of both APIs and drug products to third-party CDMOs.
Business · p. 202
We intend to maintain collaboration with the CDMOs after the Taizhou formulation plant is in use, as the production capacity of the Taizhou formulation plant may not fully satisfy the expected commercial production demand for MT1013, and external CDMOs may also provide additional production capacity and manufacturing flexibility for our pipeline products.
Business · p. 202
We did not experience any product quality issues in respect of the products manufactured by our CDMO partners during the Track Record Period.
We primarily rely on ground transportation, supported by a network of trusted third-party transportation providers, to manage line-haul, short-haul and last-mile deliveries with flexibility and scale.
Business · p. 146
We adopt a resource integration model, under which we procure transportation capacity, ranging from individual drivers and fleets to logistics companies, while retaining direct control over key operational processes, including order dispatch, route planning, and in-transit monitoring.
Business · p. 146
We own selected infrastructure assets while relying on third-party providers for the remainder of our operational needs.
We engage contract manufacturers to produce certain autonomous driving-related hardware and components in accordance with our technical specifications, which primarily include domain controllers, sensor integration modules, and communication and edge computing devices related to our cloud control system.
Business · p. 165
Certain of such domain controllers and sensors constitute key hardware components of our solutions.
Business · p. 165
We cooperated with one major contract manufacturer during the Track Record Period.
These expenses amounted to RMB0.3 million in FY2023, RMB29.8 million in FY2024, and RMB60.2 million in FY2025, representing 0.9%, 53.9%, and 57.2%, of total R&D expenses for the respective years.
Business · p. 141
As the development of AI algorithms for use in our Multispectral AI Large Model Services commencing from FY2024 relies heavily on labour-intensive tasks, we outsource such tasks to optimise resource allocation, enhance efficiency, and control overall project cost-effectiveness, thereby allowing the Company to concentrate its internal resources on core technological research and development revolving around large model algorithms.
Business · p. 141
By leveraging external expertise for non-core tasks, we optimise resource allocation, accelerate development timelines, and maintain control over critical intellectual property, ensuring our solutions meet the diverse needs of industries.
We operate under the fabless model and focus on the design of SoCs.
Business · p. 152
We outsource wafer fabrication and chip packaging and testing activities to third-party business partners.
Business · p. 152
We have established long collaborations with a number of leading foundries and packaging and testing service providers with rich experience in automotive-grade products, to ensure the integrity and stability of our supply chain, which are pivotal to our proven record of mass production and successful delivery.
We outsource all manufacturing processes, including wafer fabrication and chip packaging and testing, to our third-party business partners.
Business · p. 132
As of the Latest Practicable Date, we had established stable relationships with eight major wafer foundries and 13 packaging and testing suppliers, enabling production capacity stability and cost competitiveness and advancing localization of our chip supply chain.
We do not own or lease manufacturing facilities. Instead, we outsource the manufacture process and maintain strict control over design, core material procurement, and quality assurance.
Business · p. 149
We engage top-tier contract manufacturers to integrate our software into hardware components and assemble our integrated domain control solutions.
Summary · p. 7
Our arrangement with contract manufacturers provides us with flexibility and scalability, enabling us to expand our business efficiently while avoiding large capital expenditures that would be required to build and operate our own manufacturing facilities.
We operate under a fabless model, where we collaborate with third-party semiconductor foundries with manufacturing capabilities, which handle the fabrication, testing, and packaging of semiconductor components based on our design specifications and requirements.
Summary · p. 2
We provide order forecasts three months in advance on a monthly basis to OSAT companies for them to purchase the necessary materials.
Business · p. 154
During the Track Record Period, we entered into framework agreements with OSAT companies and then placed orders under the framework agreement to procure testing and packaging services.
During the Track Record Period and in line with industry practice, we collaborated with contract assembly partners, C&C Trucks, Hubei Tri-Ring and Shenhe Automobile, to assemble our new energy intelligent heavy-duty trucks.
Business · p. 145
Under such collaboration arrangements, our contract assembly partners provide contract assembly services based on the vehicle design, engineering specifications and technical standards developed and provided by us, using our supply of parts and components used in vehicle assembly to ensure consistency and quality of our vehicles.
Business · p. 145
Our Directors are of the view that we do not place undue reliance on any individual contract assembly partner, and that any existing concentration is commercially manageable and does not pose a material adverse risk to our business, operations or financial performance, considering that we retain control over our vehicle design, core vehicle systems and relevant intellectual properties, while our contract assembly partners perform the assembly functions under our technical specifications and quality requirements.
As of 31 December 2025, 17 of our domestic warehouses are outsourced, most of which were located in Shanghai, Tianjin, Guangdong, Hubei and Sichuan.
Business · p. 146
The operations of these outsourced bonded and overseas warehouses rely on the management system of third-party logistic providers and we are not directly involved in the daily operations of these warehouses.
Business · p. 146
We periodically evaluate the performance of outsourced warehouses to confirm they meet stringent standards for safety and operational efficiency.
We procure project implementation services for system integration and technical support from specialized suppliers with technical expertise.
Business · p. 158
Such suppliers implement projects based on our proprietary technologies, without introducing any third-party technologies or algorithms.
Business · p. 158
The largest component of our cost of sales was project fulfillment costs, which accounted for 56.3%, 77.7% and 77.0% of our total cost of sales in 2023, 2024 and 2025, respectively.
For manufacturing of our product candidates, we currently outsource such production to a limited number of highly reputable CDMOs.
Business · p. 184
We do not have in-house manufacturing facilities and capabilities, and we have no concrete plan to establish the same.
Business · p. 184
We engaged two CDMOs in the year ended December 31, 2024, namely CDMO A and CDMO B, for which we incurred expenses of RMB5.1 million. And we engaged three CDMOs in the year ended December 31, 2025, namely CDMO A, CDMO B and CDMO C, for which we incurred expenses of RMB3.2 million.
We outsource production and manufacturing of our products to specialized original equipment manufacturer (OEM) to secure stable production capacity, guarantee timely delivery, and achieve our sustainability goals.
Business · p. 176
As of December 31, 2025, we engaged 16 OEM vendors, the majority of which were located in China and some were located in Thailand, Vietnam and Poland.
Business · p. 176
In addition, we station quality control personnel at OEM vendors' sites to supervise production and inspect the quality of finished products.
During the Track Record Period, we operated an asset-light business model without owning production facilities, instead partnering with selected OEMs, or contractual manufacturers, which produce our designed products according to our specifications and quality standards.
Business · p. 134
During the Track Record Period, all of our revenue was generated from the sales of products manufactured by third-party contractual manufacturers.
Business · p. 135
In 2023, 2024 and 2025, we collaborated with 129, 171 and 155 contractual manufacturers, respectively, consistent with our manufacturing needs and demonstrating the breadth of our manufacturing partner network.
We adopt a fabless business model, focusing on integrated circuit design and outsourcing wafer fabrication to third-party foundries, thereby optimizing design efficiency and capital utilization.
Business · p. 132
The cost of wafers and outsourced packaging and testing services constitutes the vast majority of our cost of sales.
Financial Information · p. 178
Meanwhile, we have collaborated closely with major chip packaging and testing partners and developed mature and stable packaging and testing processes.
As of the Latest Practicable Date, we did not have any in-house manufacturing facility. To date, all of our manufacturing activities have been conducted through our partners (including but not limited to CDMOs) to support our drug development programs.
Business · p. 209
In addition to our in-house R&D activities, we also collaborate with reputable CROs to support our preclinical research and clinical trials.
Business · p. 208
We did not experience any material product quality issues in respect of the products manufactured by our partners during the Track Record Period.
Unlike the IDM model where companies perform design, manufacturing, packaging and testing of IC products, companies operating with a fabless model focus on the design process, and outsource the IC manufacturing to foundries.
Business · p. 173
We outsourced 100% of the chip packaging and testing to qualified third-party suppliers.
Business · p. 173
We have implemented a comprehensive supplier management system that defines the admission of suppliers, management of qualified suppliers and termination of unqualified suppliers to ensure the efficiency of our supplier management.
As a multi-scenario general materials digital procurement solution provider, we do not engage in manufacturing activities or operate production facilities.
Business · p. 110
We operate a nationwide warehousing network designed for speed and reliability without the burden of heavy capital investment, and have established long-term strategic cooperation with leading professional warehousing and logistics service providers.
We outsource the entire production processes of our products to OEMs. In 2023, 2024 and 2025, we had maintained collaborations with 13, 26 and 30 OEMs to support our production needs, respectively, all of which are independent third parties.
Business · p. 153
Following engagement, we conduct ongoing quality control and performance monitoring, which includes setting stringent quality standards, inspection of key raw materials and packaging, in-process checks and finished goods testing.
Business · p. 154
To safeguard our intellectual property rights, we enter into written agreements with each OEM that contain explicit provisions stating that all intellectual property rights, including but not limited to trademarks, packaging designs, proprietary formulas, and product specifications, used or generated in connection with the production process shall be owned solely by us.