While we previously relied on a combination of outsourced manufacturing by qualified contract manufacturers and in-house production, we transitioned to a fully outsourced, asset-light model from February 2022 to meet the rising demands for greater production capacity and efficiency.
Summary · p. 1
Under this outsourcing model, our contract manufacturers produce products for us primarily on an OEM basis.
Business · p. 205
We have also entered into tripartite agreements with suppliers of our molds and contract manufacturers.
During the course of provision of our foundation testing service, we would outsource certain physically demanding works such as extracting core samples during the foundation and geotechnical drilling process for the core drilling and standard penetration testing method to third party drilling companies specialising in these types of labour works.
Business · p. 220
During the Track Record Period, purchases from our subcontractors accounted for 75.3%, 66.3%, 43.4% and 29.2% of our total purchases, respectively, for each of FY2021, FY2022, FY2023 and 6M2024.
Business · p. 220
Our Company maintains an approved list of subcontractors which could provide similar services at similar costs as the existing subcontractors we engaged during the Track Record Period, and are selected based on service quality, timeliness of service delivery, after-sales services and qualification.
In addition to conducting our core R&D activities in-house, we also engage reputable CROs to manage, conduct, and support our preclinical research and clinical trials.
Business · p. 362
During the Track Record Period and up to the Latest Practicable Date, we had worked with qualified CDMOs to manufacture and test drug candidates for preclinical and clinical supply.
Business · p. 363
After the commencement of manufacturing by the end of 2025, we may continue to rely on CDMOs to manufacture drug candidates or a portion of the approved drugs when necessary.
We currently engage TSMC to manufacture all of our SoCs.
Business · p. 273
Though we do not have any supply commitment from TSMC directly or indirectly, there was no indications that our cooperation with TSMC might be disrupted as of the Latest Practicable Date.
Business · p. 273
We also engage contract manufacturers to produce our devices such as driver fatigue alert system, in order to focus our resources on technology innovation, product design, sales and customer support.
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
Our 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;
During the Track Record Period, we entered into various outsourcing arrangements with third-party OEM suppliers for production of certain components of our in-vehicle hardware products and up to complete in-vehicle hardware products under OEM arrangements.
Summary · p. 8
Through outsourcing the production and/or assembly of certain components of in-vehicle hardware products and in-vehicle hardware products, we believe we are able to avoid direct exposure to the risks and expenses associated with operating our own production facilities.
Summary · p. 8
We generally engage service providers to provide warehouse management services including managing daily purchase orders, receiving and delivering products, managing inventory, etc.
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
We also purchase some components processed by third parties based on our design and technical specifications.
Such technology service fees represented outsourcing costs for certain non-core and less sophisticated research and development programs.
Summary · p. 2
As certain customers may have specific demand on functionalities that are incidental to our technologies, we from time to time externally purchased software and/or services on developing project-specific software to enable offering total solutions on a one-stop basis during the Track Record Period.
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
In 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.
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
We formally review and evaluate our subcontractors at least once per year.
The Group’s labour procurement costs represented the largest component of the its cost of sales for the years ended 31 December 2021, 2022 and 2023 accounting for approximately 78.4%, 91.5% and 89.5% respectively.
Financial Information · p. 319
As advised by the PRC Legal Advisers, the engagement of labour suppliers by the Group does not constitute subcontracting in nature, and the labour suppliers are not considered as the Group’s subcontractors.
Business · p. 235
As at the Latest Practicable Date, the Group maintained a list which contained over 60 approved labour suppliers whom the Group would engage from time to time.
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
If 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.
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
Our 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.
services which were handled by our own staff at our self-operated warehouses, all components of our supply chain solutions were provided by third-party services providers.
Business · p. 188
During the Track Record Period, our Group/Shenzhen EDA Group had a large portfolio of carefully selected third-party logistics service providers, comprising over 60 third-party warehouse providers, 300 international freight forwarding service providers, ocean carriers and air carriers and 80 local “last mile” fulfillment service providers.
Summary · p. 3
We also carefully select our service providers based on a variety of factors, including industry experience, geographic location, financial condition, management skills and risk control procedures.
As is customary in the pharmaceutical industry, we use CROs and other contract service providers to support our preclinical studies and/or clinical trials under our close supervision and overall management.
Summary · p. 20
We take the lead in preclinical research, and design the clinical trials and protocols by ourselves.
Business · p. 383
We closely supervise the activities of these third-party collaborators.
We outsource certain services, mainly including labor services and specialized services subcontracting.
Business · p. 261
We keep a list of qualified subcontractors based on our series of evaluation requirements, including the period of existence, the scope of overall activities, industry credentials, and technical capabilities, in order to assure the general quality of our subcontractors.
Business · p. 261
In the event that our subcontractors fail to adhere to our performance standards, we reserve the right to claim the rescission right, impose liquidated damages or deduct subcontracting fees.
In line with industry practice, we engage Independent Third Party contract manufacturers to assemble and manufacture our products. This approach allows us to focus our resources on technologies innovation, sales and marketing, and customer service.
Business · p. 329
Although we engage contract manufacturers to assemble and manufacture our products, we typically purchase raw materials, key hardware components and customized parts from suppliers in the market directly, thereby ensuring the quality of our products.
Business · p. 328
All intellectual property rights arising from the assembly, manufacture and supply of products, including the intellectual property rights of customized tooling and finished products, will be owned by us.
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
Our 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.
We engaged 28, 37 and 31 CROs in 2021, 2022 and the nine months ended September 30, 2023, respectively, all of which were Independent Third Parties to the best of our knowledge.
Business · p. 362
We have set in place various procedures regarding the management and monitoring of the performance by CROs.
Business · p. 362
Pursuant to the Tigermed Framework Agreement, we will treat Tigermed as a preferred CRO service provider and Tigermed will set up a strategic service group responsible for future coordination.