During the Track Record Period, (i) Group A, one of our five largest customers in 2023, 2024, 2025 and the six months ended June 30, 2026, was also one of our suppliers during the same periods and one of our five largest suppliers in 2025 and the six months ended June 30, 2026;
Business · p. 166
Since October 2024, Group B has discontinued its cooperation with our Company, as it had established its own in-house production capacity.
Business · p. 166
According to Frost & Sullivan, given considerations including raw materials quality control, cost management, supply chain security and deepened industrial chain collaboration, it is common for large customers in the electrolyte industry to require suppliers to purchase raw materials from them.
In 2025, one customer of ours was also our supplier (the "customer-supplier"): the sales to this customer-supplier amounted to RMB28.0 million, representing 75.1% of our total revenue in 2025, and the purchase from it amounted to RMB37.7 million, representing 18.8% of our total purchase in 2025.
Business · p. 198
As confirmed by the Frost & Sullivan, our arrangements with the customer-supplier are in line with the industry practice.
During the Track Record Period, certain of our five largest customers in each period also acted as our suppliers, or vice versa.
Summary · p. 7
These overlapping customers and suppliers include Kingdom Sci-Tech, one of our largest customers in each period during the Track Record Period, was also a supplier during the Track Record Period.
Business · p. 165
Our Directors confirm that all of our sales to and purchases from these overlapping customers and suppliers were conducted in the ordinary course of business under normal commercial terms and on arm’s length basis.
For the years ended December 31, 2023, 2024 and 2025 and the six months ended June 30, 2025 and 2026, the revenue generated from sales to Customer-Supplier D amounted to RMB38.5 million, RMB54.0 million, RMB139.3 million, RMB51.4 million and RMB121.4 million, respectively, accounting for approximately 12.0%, 15.2%, 22.3%, 18.1% and 33.3% of our total revenue for the same respective period; and our purchase amounts from Customer-Supplier D for the same periods was RMB56.3 million, RMB45.5 million, RMB7.7 million, RMB6.3 million and RMB4.0 million, respectively, accounting for approximately 41.3%, 35.9%, 2.8%, 5.6% and 2.0% of our total purchase amounts for the same respective period.
Business · p. 149
This reciprocal customer-supplier arrangement is driven by clear commercial rationale and the complementary positioning of both parties within the PV industrial chain, as well as the independent operational nature of Customer-Supplier D’s relevant business segments.
Business · p. 150
During the Track Record Period, the sales and procurement transactions between us and Customer-Supplier D were independent transactions, all conducted in accordance based on commercial terms negotiated on an arm’s length basis.
During the Track Record Period, certain entities were both our customers and our suppliers (and vice versa).
Business · p. 175
Supplier D was among our top five suppliers in 2023. We mainly purchased magnetic core from it. Supplier D also purchased energy storage products from us in 2025.
Business · p. 175
Our Directors confirm that transactions with these overlapping customers and suppliers during the Track Record Period were conducted on normal commercial terms in the ordinary course of business.
During the Track Record Period, certain of our five largest customers in each year during the Track Record Period also acted as our suppliers, or vice versa.
Business · p. 161
The revenue generated from the overlapping customers and suppliers were RMB1,840.0 million, RMB2,363.0 million, RMB2,149.3 million and RMB1,184.2 million in 2023, 2024, 2025 and for the six months ended June 30, 2026, respectively, accounting for 10.5%, 11.9%, 10.6% and 11.2% of our total revenue for the same periods, respectively.
Business · p. 163
Our purchase amount from the overlapping customers and suppliers were RMB2,334.5 million, RMB2,768.5 million, RMB3,116.4 million and RMB1,413.2 million in 2023, 2024, 2025 and for the six months ended June 30, 2026, respectively, accounting for 14.1%, 16.4%, 18.6% and 16.9% of our total purchase amount for the same periods, respectively.
Customer I, one of our five largest customers in 2024, was also our supplier.
Business · p. 179
In 2023, 2024 and 2025 and the six months ended June 30, 2026, the revenue that we generated from Customer I amounted to RMB0.9 million, RMB4.4 million, RMB5.7 million and RMB3.1 million, respectively, accounting for 1.0%, 3.2%, 2.3% and 2.3% of our total revenue, respectively.
Business · p. 179
As a result, it is common for upstream and downstream enterprises within the industry to engage in transactions with each other as both suppliers and customers.
Company A, Company B, Company C and Company D each were among our five largest customers and five largest suppliers in 2023, 2024 and 2025 and the three months ended March 31, 2026.
Business · p. 139
The overlapping of these major customers and suppliers was primarily attributable to the following reasons: (i) our five largest customers are all leading lithium-ion battery manufacturers, which are the key target customers of us and other cathode material producers; and (ii) lithium sources are critical upstream raw materials in the lithium-ion battery industry value chain.
Business · p. 139
The negotiations of the sales and purchase terms with the overlapping customers and suppliers were conducted separately and on an individual basis, and the relevant sales and purchases were entered into on normal commercial terms following arm’s length negotiations with reference to the then prevailing market prices.
During the Track Record Period, there were two entities, namely Customer C and Customer D, which were among our five largest customers and also our suppliers.
Business · p. 180
During the Track Record Period, we made only one purchase from Customer C, amounting to RMB25,800, schooling which occurred during the six months ended June 30, 2026.
The aggregate purchase amounts from Customer D were nil, RMB2.2 million, RMB7.2 million and RMB3.0 million, in 2023, 2024, 2025 and the six months ended June 30, 2026 respectively, representing approximately nil, 0.4%, 1.0% and 0.6% of our total purchases during the same periods.
During the Track Record Period, certain of our top five customers were also among our suppliers, while certain of our top five suppliers were also among our customers.
Business · p. 127
According to Frost & Sullivan, it is common in our industry for market participants to act as both buyers and sellers under such circumstances.
Business · p. 127
All sales to and purchases from these customers and suppliers were negotiated through separate processes, conducted in the ordinary course of business, and carried out on commercial terms that were negotiated at arm’s length.
Our sales to Supplier/Customer A accounted for less than 3.5% of our total revenue in 2023, 2024, 2025 and the four months ended April 30, 2026.
Business · p. 168
Accordingly, the sales and procurement transactions were independent of each other, conducted on normal commercial terms and in line with our ordinary business practices.
Business · p. 169
Our sales and purchases with the Supplier/Customer A and the Customer/Supplier B were not inter-conditional with each other.
During the Track Record Period, we purchased raw materials and retrofit services from Supplier H.
Business · p. 169
In 2023, 2024 and 2025 and for the five months ended May 31, 2025 and 2026, revenue generated from the purchases from Supplier H accounted for 0.04%, 0.3%, 1.1%, 0.9%, and 1.9% of our total revenue for the same periods, respectively.
Business · p. 169
Negotiations of the terms of our sales to and purchases from such 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.
In 2023, 2024 and 2025 and for the five months ended May 31, 2026, three, four, four and three of our five largest customers during the Track Record Period were also our suppliers, generating revenue of RMB10.6 billion, RMB23.2 billion, RMB30.5 billion and RMB11.8 billion, respectively, which represented 69.6%, 83.3%, 87.7% and 86.6% of our total revenue in the same years/period, respectively.
Business · p. 156
Certain of our Overlapping Customers and Suppliers require their suppliers, including us, to purchase certain raw materials and components manufactured or procured from themselves to exert overall control over the procurement process, and to better control the cost and quality of raw materials.
Business · p. 156
Our purchases from and sales to such Overlapping Customers and Suppliers were separate processes and took place at different stages of the industry value chain, and were conducted in the ordinary course of business and on commercial terms negotiated on an arm’s length basis.
Haier Group, our largest customer in each year/period during the Track Record Period, was also our largest supplier during the respective year/period, providing us primarily raw materials and intelligent hardware.
Business · p. 158
In 2023, 2024, 2025 and the three months ended March 31, 2026, our purchase amounts from entities in the Haier Group who were both our customer and supplier in the respective year/period were RMB846.7 million, RMB804.1 million, RMB852.9 million and RMB186.9 million, respectively, representing approximately 21.5%, 20.7%, 18.8% and 15.6% of our total purchase amounts in the same years/periods.
Business · p. 158
Our Directors are of the view that the transactions with the overlapping supplier customers were conducted at arm’s length, mutually independent and under normal commercial terms.
In accordance with Customer A’s technological and procurement requirements, we purchased customer-designated controllers from Customer A and integrated them into the corresponding lighting products sold to Customer A.
Business · p. 146
In 2023, 2024, 2025, and the three months ended March 31, 2026, our procurement from Customer A accounted for less than 1% of our total purchases for each year/period. The average gross profit margin of products sold to Customer A is 20.8% during the Track Record Period. All procurement arrangements with Customer A were negotiated on an arm’s length basis.
During the Track Record Period, we sold cold chain agricultural products to certain customers who also acted as our suppliers.
Summary · p. 4
In 2023, 2024 and 2025 and for the four months ended April 30, 2026, our revenue from such overlapping customers and suppliers, which were among our five largest customers during each year/period of the Track Record Period, was RMB433.6 million, RMB459.9 million, RMB466.1 million and RMB165.1 million, respectively, accounting for 34.6%, 15.4%, 7.9% and 5.9% of our total revenue for the corresponding periods.
Business · p. 164
In particular, for certain strategic customers, we adopted more competitive pricing, including in limited cases pricing below cost on specific transactions, to support long-term cooperation and business development, resulting in negative or lower margins in the relevant periods.
During the Track Record Period, Customer B, one of our five largest customers in each of 2023, 2024 and 2025, was also one of our five largest suppliers in the same periods, which is Supplier A.
Business · p. 149
For this reason, we sold heat exchangers of RMB1,346.0 million, RMB1,954.8 million, RMB937.4 million and RMB25.0 million to Customer B in 2023, 2024, 2025 and four months ended April 30, 2026, and purchased copper tube and aluminum foil of RMB1,111.1 million, RMB1,645.6 million, RMB759.4 million and RMB9.9 million from it during the same periods.
Business · p. 149
During the Track Record Period, Supplier G, one of our five largest suppliers in each of 2023 and 2024, was also one of our customers in 2023, 2024 and 2025, because we require our supplier to purchase the designated connectors from us to be used in their cable products to better control quality and ensure the materials meet our specifications and integrate with our manufacturing processes.
Customer E, being our fifth largest customer in 2023, was also our supplier in 2023 and 2025.
Business · p. 164
In 2023, 2024, 2025 and four months ended April 30, 2026, our sales to Customer E amounted to RMB7.3 million, RMB2.6 million, RMB1.7 million and RMB13.9 thousand, accounting for 4.5%, 1.1%, 0.6% and 0.01% of our total revenue, respectively.
Business · p. 164
Negotiations of the terms of our sales to and purchases from the overlapping customers and suppliers were conducted on a project-by-project/standalone basis and purchases were neither interconnected nor inter-conditional with each other.
During the Track Record Period, our overlapping customers and suppliers mainly included (i) ZhongAn Group, which was one of our five largest customers in 2023 and 2024 and our five largest suppliers in 2024 and (ii) Supplier F which was a telecommunication service provider and one of our five largest suppliers in 2024 and our customer in the same period.
Business · p. 153
Our transactions with overlapping customers-suppliers primarily reflect the mutually beneficial relationships with our business partners, where they provide us with high-quality telecommunication services at reasonable prices while procuring our solutions.
Business · p. 154
Our Directors confirm that our sales to and our purchases from the Overlapping Customers-Suppliers were (i) entered into after due consideration taking into account the prevailing purchase and selling prices at the relevant times and (ii) conducted on an arm’s length basis.
(ii) our purchases of Customer D’s products, primarily including motor controller for production line testing, was nil, nil, RMB1.0 million and nil in 2023, 2024, 2025 and the five months ended May 31, 2026, accounting for nil, nil, 0.0% and nil of our total purchase amounts for the respective year/period.
Business · p. 154
(ii) our purchases of Customer H’s products, primarily including motor subcomponents, amounted to RMB41.5 thousand, RMB72.0 thousand, nil and nil in 2023, 2024, 2025 and the five months ended May 31, 2026, respectively, accounting for 0.0%, 0.0%, nil and nil of our total purchase amounts for the respective year/period.
Business · p. 154
All of our sales to and purchases from these supplier-customers were conducted in the ordinary course of business under normal commercial terms and on an arm’s-length basis.