During the Track Record Period, there was overlapping of our customers and suppliers, which was essentially the overlapping of distributors and CSOs.
Business · p. 363
Consequently, we terminated the promotion collaboration with it in October 2022 and deducted a deposit of RMB4.0 million in accordance with the promotion service agreement.
Business · p. 363
In addition, CSO C is a subsidiary of Company B, which was one of our five largest customers during the Track Record Period, holding an interest of approximately 39.3% in CSO C.
Additionally, during the Track Record Period, some of our major customers directly provided us with raw materials, primarily lithium carbonate, to produce LFP cathode materials particularly during times of raw material scarcity, to ensure adequate supply.
Business · p. 256
In 2022, 2023 and the first half of 2024, the volume of lithium carbonate received under such arrangements amounted to 1,346.0 tons, 6,781.1 tons and 1,731.1 tons, respectively.
Business · p. 256
Costs of such lithium carbonate were deducted directly upon the recognition of corresponding revenue from sales of LFP cathode material to customers who supplied such lithium carbonate.
Company T, one of our top five suppliers in each year of 2021, 2022 and 2023, was also our largest customer in each period during the Track Record Period.
Business · p. 233
Negotiations of the terms of our sales to and purchases from these overlapping customers and suppliers were conducted on an individual basis and the sales and purchases were neither inter-connected nor inter-conditional with each other.
Business · p. 233
The revenue from Company T in 2021, 2022 and 2023 and the four months ended April 30, 2024 was RMB948.8 million, RMB922.7 million, RMB957.5 million and RMB253.7 million, respectively, accounting for approximately 8.4%, 7.3%, 7.1% and 6.1% of our total revenue, respectively, for the same periods.
Certain of our top five customers during the Track Record Period (Customer-Supplier Group D, Customer-Supplier Group I, Customer-Supplier Group J and Customer-Supplier Group O) were also our suppliers during the Track Record Period, of which Customer-Supplier Group D and Customer-Supplier Group I were top five suppliers in one or more periods during the Track Record Period.
Business · p. 309
At the same time, as Customer-Supplier Group I is a cloud service provider, we purchased network and bandwidth services from it for our business to enhance our cross-regional cloud technical capabilities and efficiency.
Business · p. 310
Our Directors confirm that our sales to and our purchases from all overlapping customer-suppliers were conducted in the ordinary course of business under normal commercial terms and on an arm's length basis.
For FY2021/22, FY2022/23 and FY2023/24, we incurred approximately HK$18.3 million, HK$17.1 million, and HK$0.8 million, respectively, for the procurement of materials and other services from our customers, representing approximately 4.3%, 6.0% and 0.2% of our total cost of services for the corresponding years, respectively.
Business · p. 210
Based on the Industry Report, main contractors adopted the aforesaid arrangements mainly for the purpose of (i) improving cost effectiveness as main contractors could generally negotiate a more favourable pricing for placing bulk purchase orders with suppliers; and (ii) facilitating procurement efficiency by centralising the procurement of materials used for performing different types of construction works under the same construction project.
Business · p. 210
Our contra-charge arrangement under our Third Runways Project was for the purposes of (i) improving cost effectiveness as the main contractor could negotiate a more favourable pricing for fuel for placing bulk purchase orders; and (ii) expediting the work progress.
Specifically, two of our top five suppliers in certain years/periods in the Track Record Period (being Tigermed Group (泰格醫藥集團) and Supplier C) providing us with SMO service, specifically, clinical research on-site management and operation, that enable us to provide digital SMO business management service, were also our customers procuring pharmaceutical and medical device R&D software from us.
Business · p. 279
In addition, the transactions that we entered into with the overlapping supplier-customers were on an arm’s-length, mutually independent basis under normal commercial terms.
Business · p. 280
Therefore, and given the small percentage of supplier-customer overlap during the Track Record Period, we believe that the supplier-customer overlap during the Track Record Period during certain years in the Track Record Period would not hinder our business prospects.
In the said project, we also leased our machinery to Chit Tat Electrical and earned rental income.
Business · p. 212
Separately, during the Track Record Period, Chit Tat Electrical subcontracted certain electrical engineering works projects (with total contract sum of approximately HK$4.8 million) to us and paid us subcontracting fees.
Business · p. 212
Ms. Tse confirmed that she is not involved in the operation of Accel Group.
Supplier A purchased kitchenware products from us for resale to the end-use customers through its online marketplace for the European market under the B2B sales model. We entered this sales arrangement in 2022 as a supplement to our DTC sales. Our revenue from sales through this arrangement was RMB2.4 million and RMB6.9 million in 2022 and 2023, respectively.
Business · p. 215
Our revenue from sales through this consignment arrangement was RMB6.0 million and RMB1.1 million in 2021 and 2022, respectively.
Business · p. 215
In contrast, under the B2B sales model, we supply products to online marketplaces at negotiated prices, shipping directly to their warehouses.
During the Track Record Period, among our top five customers and suppliers, we had two overlapping customers and suppliers.
Business · p. 249
Our Directors confirmed that negotiations of the terms of our sales to and purchases from the above overlapping customer-supplier were conducted independently, and these sales and purchases were independent from one another.
During the Track Record Period, three of our five largest customers in 2023, three of our five largest customers in 2022 and two of our five largest customers in 2021, each of whom acted as our CSAs, were also our suppliers.
Summary · p. 8
From such customers, we received revenue of US$25.5 million, US$43.4 million and US$38.2 million for years ended December 31, 2021, 2022 and 2023, respectively, representing 3.5%, 4.9% and 3.6% of total revenue for the respective years.
Business · p. 250
The CSAs also receive commissions from us pursuant to the CSA agreements, making them our suppliers.
During the Track Record Period, to the best knowledge and belief of our Directors, among our five largest suppliers and customers in each year during the Track Record Period, Supplier A was our major overlapping customer and supplier.
Business · p. 175
For the Track Record Period, we principally purchased components, such as coolers and water sealed tanks from Supplier A with purchase amounts of approximately RMB5.8 million, RMB7.4 million and nil, respectively; and we provided it with spare parts such as nozzles and hex steel with aggregate transaction amounts of approximately RMB0.4 million, RMB0.2 million and RMB0.4 million for the years ended 31 December 2021, 2022 and 2023, respectively
Business · p. 176
Our Directors confirmed that negotiations of the terms of our sales to and purchases from Supplier A were conducted separately and the sales and purchases were not inter-conditional with each other.
During the Track Record Period, certain of our customers were also our suppliers. We sold certain types of pharmaceutical products to these companies as part of our inventory management strategy, and procured certain other types of pharmaceutical products, medical devices, healthcare and nutritional supplements and other wellness products from them.
Summary · p. 18
Our aggregate sales to these two customers amounted to RMB30.6 million in 2023, accounting for less than 2.0% of our total revenue for the same year.
Business · p. 280
Our Directors confirm that all of our sales to and purchases from these companies were conducted in the ordinary course of business under normal commercial terms, and none of our sales to and purchases from these overlapping entities were the same or back-to-back sales during the Track Record Period.
GAIG was among both our five largest customers and our five largest suppliers in each year of the Track Record Period.
Summary · p. 8
In 2021, 2022 and 2023, revenue from GAIG amounted to RMB5.2 million, RMB20.0 million and RMB113.5 million, respectively, representing 0.5%, 1.5% and 5.3%, respectively, of our total revenue for the respective periods.
Business · p. 339
Negotiations of the terms of our sales to and purchases from these entities were conducted on an individual basis and the sales and purchases were neither inter-connected or inter-conditional with each other.
In each year of the Track Record Period, among our five largest suppliers, Supplier B is our overlapping customer and supplier.
Business · p. 303
At Supplier B’s request, we sold one of our electronic components that Supplier B could assemble and incorporate into Supplier B’s own product into in-vehicle devices and sell to their own customers.
Business · p. 303
Our Directors confirm that all of our purchases from and sales to Supplier B were not inter-conditional, inter-related or otherwise considered as one transaction.
In 2021, 2022 and 2023, Supplier C was also our customer for cloud financial & tax digitalization solutions and on-premises financial & tax digitalization solutions, with revenue contribution of RMB10.2 million, RMB3.1 million and RMB2.3 million, respectively.
Business · p. 257
Negotiations of the terms of our sales to and purchase from Supplier C and Supplier A were conducted on an individual basis and the sales and purchases were neither connected with nor conditional upon each other.
During the Track Record Period, purchase amount from Supplier A in each year amounted to RMB152.6 million, RMB136.7 million and RMB148.4 million, respectively, representing 39.7%, 26.8% and 30.4% of our total purchase amount for the same years, respectively; sales amount generated from Supplier A in each year amounted to RMB3.1 million, RMB23.4 million and RMB10.3 million, respectively, representing 0.7%, 4.5% and 1.3% of our total sales amount for the same years, respectively.
Business · p. 333
Our Directors confirm that each of our sales to and our purchases from the aforementioned overlapping customers-supplier were negotiated and conducted separately under normal commercial terms.
In 2021, 2022 and 2023, we recorded revenue from provision of city services, residential property management services and commercial property management services to Kingfar Holdings Group in the amount of RMB45.7 million, RMB52.9 million and RMB54.0 million, respectively.
Financial Information · p. 380
In 2021, 2022 and 2023, we recorded purchase of services in the amount of RMB4.4 million, RMB5.4 million and RMB14.8 million.
Financial Information · p. 380
Our Directors confirm that the related party transactions were conducted on normal commercial terms at arm's length and were fair and reasonable as a whole.
Due to the nature of the Group’s Telecommunications Infrastructure Services projects, the Group may on a few occasions be required to pay for the service fees for certain telecommunications services (such as mobile telecommunications services and Internet network resources) provided by Customer D to enable the Group to perform the services required under such projects.
Business · p. 234
During the Track Record Period, (i) the revenue generated from provision of services to Customer D, who is also one of the Group’s suppliers, amounted to approximately RMB24.2 million, RMB89.4 million and RMB132.1 million, respectively, representing approximately 5.1%, 21.6% and 21.7% of the total revenue, respectively
Business · p. 234
The Group’s purchases from Customer D during the Track Record Period amounted to approximately RMB77,000, nil and nil, respectively, which the Directors believe to be insignificant.
We may, from time to time, have overlapping suppliers and customers, which, according to the CIC Report, is a common practice for contract manufacturers and service providers in the precision engineering industry as raw material suppliers may also require precision engineering services for their own manufacturing equipment and/or products.
Business · p. 217
The revenue generated from Mega Valve and Fitting Pte Ltd amounted to approximately S$21,000 and S$1,300 for the years ended 31 December 2022 and 2023, respectively.
Business · p. 218
Our Directors confirmed that all of such transactions with Mega Valve and Fitting Pte Ltd during the Track Record Period were conducted in the ordinary course of business under normal commercial terms and on arm’s length basis.
During the Track Record Period, certain of our top five customers procured mainly OEM parts from their approved suppliers on our behalf.
Business · p. 218
Customer A, one of our major customers: approximately S$1,900 and S$9,000 for the years ended 31 December 2022 and 2023, respectively
Business · p. 218
Such customers procured parts from their suppliers on our behalf to speed up the procurement process, which we then used for manufacturing for such customers.