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.
During the Track Record Period, we entered into certain labor subcontracting arrangements with independent third-party labor subcontractor agencies to meet the need of our business operations.
Business · p. 149
We are responsible for inspecting and supervising the on-site work quality and verifying the completion status of the tasks performed by the subcontracted personnel.
We design the equipment in-house based on customer's specific requirements and engage third-party manufacturers for production, while our personnel assist with the installation and initial operation of such equipment as needed.
In 2023, 2024 and 2025, the procurement volume from third-party contract manufacturers was approximately 13.4 thousand tons, 19.8 thousand tons and 28.1 thousand tons, respectively.
Business · p. 124
To safeguard our proprietary product designs and formulas, we typically enter into confidentiality agreements with these third-party manufacturers before commencing any collaboration.
Business · p. 124
In addition, to rapidly scale our manufacturing capacity, we leverage qualified third-party OEM partners.
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.
While we primarily rely on our in-house production capacity to manufacture our home care medical devices, we also engage OEM/ODM suppliers to produce select types of our branded medical products, particularly those do not carry sophisticated technology specifications and/or demand advanced manufacturing techniques, including walking aids, elbow crutches and canes under rehabilitation aids products; anti-decubitus mattresses, urine collectors, drainage tubes, drainage bags and irrigation devices under medical care products; mouth-closing orthotic patches under respiratory support products; as well as hot compress eye masks, acupuncture needles and cupping devices under TCM therapy and other products.
The procurement costs of our own-brand products produced by OEM/ODM suppliers continuous decreased from 2023 to 2024, primarily because (i) we progressively transitioned certain product lines, including wheelchairs, the infection control series, wound dressings/bandages, and oral care products, to in-house manufacturing, consistent with our strategic development goal of enhancing quality control and improving delivery efficiency; and (ii) following the adjustments to epidemic prevention and control policies, market demand for health protection products such as antigen rapid test kits, masks, and gloves gradually declined, which allowed us to commensurately reduce the procurement volume of these products.
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.
In line with industry practices, we engage reputable CROs to support various stages of our non-clinical and clinical development.
Business · p. 170
Clinical CROs are selected through a formal tendering and evaluation process to ensure that the chosen partners meet our quality expectations and project needs.
Business · p. 171
We maintain close oversight of our CRO partners through routine communication, progress monitoring and periodic audits to ensure full compliance with our protocols, contractual obligations and applicable regulatory requirements.
Typically, the construction and building of power station projects are carried out by third-party contractors, with the supply chain management center overseeing the external bidding process for project construction.
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.
During the Track Record Period, we engaged subcontractors to carry out EPC service, allowing us to focus our time and resources on our DES asset development.
Business · p. 126
As our model matures and becomes validated gradually, we are pivoting toward a fully outsourced EPC model under which a third party serves as the general contractor.
Business · p. 100
To ensure and maintain the quality of service provided by our subcontractors, we have established internal rules and procedures to monitor our selection of, cooperation with and inspections of the subcontractors, which have the same rules and procedures as selecting suppliers.
Under this cooperation framework, we primarily focus on platform operations, technology development, brand promotion and rider management, while our driver and car partners provide and manage vehicle and/or driver resources.
Business · p. 115
In 2023, 2024 and 2025, we worked with a total of 1,011, 1,163 and 1,666 driver and car partners, respectively.
Business · p. 115
We retain broad supervision rights over the service quality and compliance performance of driver and car partners and may require corrective actions based on operational and compliance performance.
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 primarily rely on OEM/ODM facilities for the production of our smart devices.
Business · p. 147
As of December 31, 2023, 2024 and 2025, we had 23, 25, and 30 third-party manufacturers, respectively, to support our production needs.
Business · p. 147
Our Directors are of the view that, during the Track Record Period and as of the Latest Practicable Date, we have not been reliant on any single, or any group of, specific OEM(s) and ODM(s).
During the Track Record Period, we outsourced manufacturing activities to industryrecognized CDMOs in China for preclinical and clinical supply.
Business · p. 176
We collaborated with six and nine CDMOs in 2024 and 2025, respectively.
Business · p. 176
(ii) Quality control. CDMOs are obliged to ensure that the quality of products meet the quality standards set out in the agreement and requirements of cGMP and other regulations, and to provide Certificate of Analysis.
We engage reputable OEMs for chip packaging and the production of wafers and chips. We also engage ODMs for services such as chip verification.
Business · p. 165
In addition, as a fabless company, we adopt an ODM/OEM model, under which certain chip production is outsourced to major foundries, contract manufacturers and OEMs, while we focus on product design and solution development.
We also collaborate with CDMOs (including CMOs) to conduct and support our preclinical and clinical trials in line with industry practice.
Business · p. 204
Our CDMO partners are responsible for manufacturing our required products in accordance with certain product specifications, in compliance with cGMP requirements (where applicable), our quality standards and other applicable laws and regulations.
Business · p. 204
We did not experience any material product quality issues in respect of the products manufactured by our CDMO partners during the Track Record Period.
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.