In the medium term, we will collaborate with WuXi Biologics for the commercial production of lonapegsomatropin.
Business · p. 330
As advised by Frost & Sullivan, in the context of rapidly growing new drug development costs, increasingly complex development processes, and even more intense competition, multinational pharmaceutical and biotechnology companies have continued to increase outsourcing to CDMOs, and the reliance on CDMO services is in line with the industry norm.
Business · p. 330
In the long term, we will build internal capabilities for manufacturing our products in-house to reduce our reliance on CDMO.
In the PRC, we outsource a portion of our exploration and shaft construction/engineering work to qualified contractors.
Summary · p. 32
In Laos, we outsource third-party contractors, especially mining and processing work in our projects in Laos.
Summary · p. 32
During the Track Record Period and up to the Latest Practicable Date, we did not encounter any material disputes with our contractors in PRC, Laos and Ghana or experience any suspension or delay in our operations as a result of misconduct of our contractors.
As of June 30, 2024, we had six specialized partner factories in our network dedicated to the production of our products.
Business · p. 199
We reserve the right to take necessary measures to supervise the overall production process at the partner factories, including designation or approval of raw material procurement, production, quality control and logistics.
Business · p. 200
The partner factories are required not to compete with us directly or indirectly, including through cooperation with third parties.
We have third-party vendors who manufacture the hardware on which our products run.
Business · p. 353
We do not own or operate any manufacturing facilities.
Business · p. 353
We enter into purchase agreements which fix the pricing of the hardware (typically tablet computers) within the agreement period, and provide for payment terms and timetable, quality and warranty provisions, delivery and confidentiality, among other standard terms.
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
We 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.
Our suppliers adopt an OEM model to manufacture and/or affix labels of our brands on our nutritional products.
Summary · p. 1
During the Track Record Period, we procured our algal oil DHA and probiotics products from our direct suppliers that are established in the PRC, Hong Kong and the U.S., and we require our suppliers for our algal oil DHA and probiotics products to use the principal raw materials supplied by DSM Group and the Probiotics Raw Material Supplier, respectively.
Business · p. 207
As such, Frost & Sullivan is of the view that our Group’s procurement and production arrangement aligns with established industry norms, leveraging external processing expertise to ensure product quality and efficiency.
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
We require our service providers to comply with our internal policies and closely monitor their performance.
We subcontract some parts of our development modules or assignments to such software development companies, which are Independent Third Parties, because of (i) the flexibility of engaging software development companies on an as-needed basis; (ii) the relatively lower cost compared to our own research and development team and (iii) the convenience of simultaneously developing multiple software development projects as supported by these software development companies.
Business · p. 286
We primarily engage third-party agencies and, to a lesser extent, collaborate with physicians to collect clinical data for real-world study.
Business · p. 285
We set out strict credentials for selecting third parties who would like to participate in our real-world data collection, including the national or regional service scope, responsiveness, professional know-how, and registered capital.
The proportion of our products manufactured in-house was nil, 13.5%, 24.4% and 21.0% in 2021, 2022, 2023 and the six months ended June 30, 2024, respectively.
Business · p. 266
In 2021, 2022 and 2023 and the six months ended June 30, 2024, we engaged two, five, four and four contract manufacturers, respectively.
Business · p. 267
Our dedicated personnel are stationed at the production sites, generally conducting inspections every four hours and ensuring all production processes and staff are in compliance with our standards.
Prior to the establishment of our first production facility in Rizhao, Shandong Province in 2022, we had engaged manufacturing partners for the production of all of our cobot products. Since 2022, we had gradually transferred from contract manufacturing to self-production.
Business · p. 234
In 2021, 2022, 2023 and the six months ended June 30, 2023 and 2024, the outsourced production costs was RMB6.1 million, RMB2.1 million, RMB1.2 million, RMB0.4 million and RMB0.4 million, respectively, accounting for 7.1%, 1.5%, 0.7%, 0.5% and 0.6% of our total cost of sales in the same years/periods, respectively.
We engage Independent Third Party manufacturers to produce semi-finished products under our own brands on an OEM basis whilst we source third-party brand products from brand owners or trading companies from time to time.
Business · p. 152
We engage service providers based in Hong Kong to carry out services such as powder mixing, encapsulation, bottling, packaging, labelling and ink jetting services as well as logistic services.
Business · p. 153
We enforce a series of quality control measures with our manufacturers, encompassing product inspections, adherence to industry-specific quality standards, continuous monitoring of production processes, and prompt resolution of any quality-related issues that may arise.
We primarily procure raw materials for color cosmetics and skincare products, packaging materials and outsourced finished products including certain makeup tools such as brushes, eyebrow pencils and sponges.
Business · p. 237
We maintain stable cooperation with a number of raw material suppliers to ensure the adequate supply of raw materials, such as color cosmetics materials, skincare materials and packaging materials, and with reliable ODM/OEM providers to ensure the timely production of high-quality products that meet our quality control requirements.
Financial Information · p. 327
As we engaged ODM/OEM providers for the production of our products throughout the Track Record Period, the production lead time is generally three to four months, resulting in long inventory turnover days.
However, for certain jewellery products which we believe is not commercial for us to produce on our own, we outsource the production to external manufacturers.
Business · p. 285
For the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024, our outsourcing rates for gold products by weight were 3.2%, 2.2%, 10.1%, and 7.2%, respectively.
Business · p. 297
During the Track Record Period, the cost of sales incurred for products produced by external manufacturers constituted a de minimis amount of total cost of sales.
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
We 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.
The majority of our suppliers include manufacturing partners who primarily provide OEM services based in the PRC and logistics services providers.
Business · p. 239
Our cost of sales for sales of goods primarily consists of (i) procurement costs paid for OEM manufacturing services; (ii) logistics costs, mainly including costs of last-mile fulfillment services for delivering from overseas warehouses to individual consumers and costs of first-mile international freight services for transport of goods from vendors to ports of entry of imports; and (iii) write-down of inventories, reflecting the difference between the net realizable value and the book value of inventories not sold by the end of the year/period.
Financial Information · p. 332
We regularly evaluate our suppliers' performance to guarantee the consistency and quality of our supplies, and we replace any suppliers who do not meet our standards and requirements.
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
We carefully select subcontractors from a pool of reputable candidates.
To supplement our in-house production capacity when our customers' demand temporarily exceeded our production capacity, we outsourced production of a portion of LFP cathode material products to third-party manufacturers in 2021 and 2022.
Business · p. 246
For the years ended December 31, 2021 and 2022, the production of approximately 5,839.7 tons and 13,052.5 tons of LFP cathode materials were subcontracted, respectively, representing approximately 19.1% and 13.7% of our total sales volume of LFP cathode material products for the respective years.
Business · p. 246
For the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024, the amount of diesel exhaust fluid products produced by third-party manufacturers was approximately 86,899 tons, 18,481 tons, 15,169 tons and 6,406 tons, respectively, representing approximately 19.3%, 4.9%, 4.6% and 3.7% of the sales volume of our diesel exhaust fluid products for the respective periods.
We engage an industry-leading multinational semiconductor manufacturer (“Supplier A”) as the manufacturer of our processing hardware.
Business · p. 286
Our Group operates the business as a whole, focusing on research and development of proprietary software and hardware and providing automotive solutions for passenger vehicles and non-automotive solutions, and does not maintain manufacturing facilities or develop manufacturing capacity by ourselves.
Financial Information · p. 383
Our suppliers are only entitled to use underlying intellectual properties for the purpose of manufacturing, assembling and testing the processing hardware we have requested.
As of April 30, 2024, we had 13 self-owned factories in operation and 31 Cooperative Manufacturing Partners in China, producing packaged drinking water and beverage products.
Business · p. 209
We collaborate with our Cooperative Manufacturing Partners primarily to expand into new regional markets quickly and cost-effectively with less costs and shorter set-up time.
Business · p. 216
We have generally established exclusive cooperation with our Cooperative Manufacturing Partners for our packaged drinking water production, which facilitates the improvement of our production efficiency.
Depending on our capability, resources level, cost effectiveness and the complexity of the project, we may subcontract specific parts of the project, such as jointing and trenching, to our subcontractors when the availability of our own labour resources is limited or the subcontracted works require specialised skills or expertise.
Business · p. 225
We remain accountable to our customers for the performance and quality of work rendered by our subcontractors.
Business · p. 226
We have implemented the following measures to monitor the quality and progress of works outsourced to our subcontractors so as to ensure compliance with our contract specifications: