Our manufacturing strategy employs in-house production as the primary model, supplemented by outsourced production, allowing us to flexibly adjust based on downstream order demands and production plans.
Business · p. 163
To reduce production costs, we also outsource certain components of our finished products, including electronic parts, silicone parts, plastic parts and packaging parts.
Business · p. 173
All suppliers covering core raw materials, key components and outsourced finished goods must pass an on-site audit by our supplier evaluation team before approval.
We do not materially rely on any individual CDMO, as alternative service providers with comparable capabilities are readily available in the market.
Business · p. 201
We have adopted measures including onsite audit to ensure our CDMOs comply with both the regulatory and our internal requirements.
Business · p. 201
Our research and development costs incurred in relation to our engagement of CDMOs increased by 25.6% from RMB4.3 million in 2024 to RMB5.4 million in 2025, primarily attributable to the preparatory work in relation to the anticipated NDA application, and decreased by 23.3% from RMB3.0 million for the six months ended June 30, 2025 to RMB2.3 million for the six months ended June 30, 2026, primarily attributable to decreasing milestone payments.
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.
During the Track Record Period, we outsourced certain manufacturing activities to CDMOs for preclinical and clinical supply of certain of our drug candidates, such as ZG005, ZG006, ZGGS18, ZGGS15 and ZGGS34, as well as API for Zepsun^®^ and Zepuping.
Business · p. 161
We have adopted regulatory procedures to ensure the production qualifications, facilities and processes of CDMOs comply with the relevant regulatory requirements and our internal quality management system.
Business · p. 161
Intellectual property rights. We own all product-related intellectual property rights •
We generally do not directly carry out the labour works for installation or fitting out works and subcontract the labour works to one or more subcontractors, depending on the size and nature of the project.
Business · p. 108
During the Track Record Period, our purchases from top five subcontractors amounted to S$8.4 million, S$7.4 million, S$8.0 million and S$7.2 million in 2023, 2024, 2025 and the six months ended 30 June 2026, respectively, accounting for 40.8%, 23.8%, 19.7% and 24.5% of our total purchases, respectively.
Business · p. 134
We mitigate our exposure to rectification costs by allocating liability for defects to our subcontractors on a back-to-back basis.
In the years ended 31 December 2024 and 2025, and the five months ended 31 May 2026, we engaged 13, 11 and 4 CDMOs, incurring CDMO service fees of RMB7.2 million, RMB8.4 million and RMB0.6 million, respectively.
Summary · p. 7
Currently, we engage a number of qualified CDMOs for the production of our drug candidates.
Business · p. 201
In line with the practice in the pharmaceutical industry, we engage CROs and third-party research centres to conduct and support our pre-clinical studies and clinical trials.
During the Track Record Period, we outsourced the processing of certain non-core components of our products and installation and set-up process to third-party manufacturing service providers to maintain a flexible production model and respond to changing market demand.
Business · p. 144
We remain responsible for, and maintain overall control over, the outsourced work process.
Business · p. 144
The increase in the use of outsourced processing service in our green shipping equipment and systems in the Track Record Period was mainly due to our expansion into new business lines.
We operate a hybrid production model that focuses primarily on in-house manufacturing, supplemented by selective outsourcing to expand capacity when needed.
Business · p. 135
Depending on the product type and manufacturing arrangement, external contract manufacturers may also participate in certain production steps, such as PCBA processing, assembly and other manufacturing support services.
Business · p. 115
For customized and melded materials, we require our suppliers to undergo periodic process audits.
For our pre-packaged products under Yuen Kee Taste, we also outsource part of production to our connected parties, Huifengyuan, Fanlaizhiwei and Hunan Hufeng, primarily covering frozen dumplings, which represent a key product category under Yuen Kee Taste, as well as certain meat fillings and wrappers used in our pre-packaged products.
Business · p. 138
For goods produced by our outsourcing suppliers, we have also implemented systematic control measures to ensure compliance with our quality and food safety standards, including designating responsible departments to oversee procurement, quality control and compliance, establishing prescribed procurement and replenishment cycles of seven to 20 days, maintaining safety stock levels of four to seven days for most materials and approximately three months for pre-packaged products, imposing stringent qualification and admission requirements, and conducting periodic performance assessments.
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.
As of the Latest Practicable Date, we did not have commercialization-scale manufacturing facility.
Business · p. 181
During the Track Record Period, we collaborated with nine CDMOs (including CMOs) and 18 key CROs for major R&D activities, including certain leading suppliers of CRO and/or CDMO services in the relevant area.
Summary · p. 6
We have entered into quality agreements with our contract manufacturing partners.
During the Track Record Period, we have engaged third party CROs for certain R&D services in relation to our Core Products.
Business · p. 183
During the Track Record Period, we have engaged certain qualified third parties as CMOs to provide manufacture services for our pre-clinical and clinical trials for XJN010 and XJN026.
Business · p. 188
Additionally, all intellectual properties generated from the collaboration shall be solely and exclusively owned by us.
In 2023, 2024, 2025 and for the four months ended April 30, 2026, the procurement costs amounted to RMB107.8 million, RMB122.9 million, RMB134.3 million and RMB52.0 million, respectively, for engaging third-party transportation service providers.
Business · p. 148
According to Frost & Sullivan, outsourcing such long-distance transport is an industry norm, and allows service providers like us to focus our resources on the higher-value, compliance-critical last-mile and site-facing logistics.
Business · p. 148
We maintain rigorous quality control over these outsourced services.
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 engage qualified third-party manufacturers to undertake limited outsourced processing tasks during the Track Record Period, primarily involving component or module assembly, testing and packaging.
Business · p. 137
Approved manufacturers are subject to ongoing tiered management and periodic performance evaluations, jointly conducted by our engineering, planning, quality, logistics and outsourcing management teams.
Business · p. 137
We grant outsourced manufacturers a limited and non-transferable right to use our intellectual property solely for order fulfillment purposes, subject to confidentiality obligations.
Specifically, we outsource the electrophoresis and PVC coating processes for battery boxes to third parties.
Business · p. 149
Accordingly, the subcontracting fees paid to these subcontractors amounted to RMB33.3 million, RMB15.0 million, RMB5.0 million and RMB0.5 million, respectively, in 2023, 2024, 2025 and for the four months ended April 30, 2026, accounting for 2.8%, 1.6%, 0.7% and 0.2% of our total cost of revenue in each of the respective period.
Business · p. 149
We may conduct on-site inspections of our subcontractors’ production facilities to perform quality checks during the subcontracting process.
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.
During the Track Record Period and up to the Latest Practicable Date, most of the manufacturing activities for our product candidates were carried out through CDMO partners.
Business · p. 181
During the Track Record Period, OBiO is our exclusive CDMO engaged for manufacturing our oncolytic immunotherapy candidates in China. Notwithstanding this exclusivity, we do not rely on OBiO for the manufacturing of our product candidates, including the Core Product, primarily because we retain ownership and control of the critical manufacturing inputs, namely our qualified virus seed and proprietary CMC know-how.
Business · p. 182
Since we can transfer the virus seed and the related CMC package to other qualified CDMOs, our production can be maintained without dependence on OBiO.