In 2023, 2024, 2025 and the seven months ended July 31, 2026, the revenue from sales to customers outside the Chinese Mainland accounted for 65.9%, 66.5%, 63.8% and 60.8% of our total revenue, respectively.
Business · p. 158
In 2023, 2024, 2025 and the seven months ended July 31, 2026, our revenue from sales to customers in the U.S. accounted for 43.6%, 42.6%, 40.1% and 38.2% of our total revenue, respectively, and our revenue from sales to customers in Europe accounted for 14.4%, 13.9%, 14.2% and 14.1% of our total revenue, respectively.
Business · p. 158
As of the Latest Practicable Date, the applicable tariff rates for our exports to the U.S. and the European Union were 12.5% and 0%, respectively.
Leveraging the sales and service networks of our business partners, our products have been deployed in Asia, Europe, South America and North America.
Business · p. 171
We adopt a partner-led, asset-light approach to expanding our exposure to overseas end markets.
Business · p. 195
As we primarily supply solutions to domestic system integrators and brand customers, which in turn export end products, we are generally not the exporter of record and do not directly bear tariff obligations, although changes in tariffs may indirectly affect market demand.
In 2023, 2024, 2025 and the five months ended May 31, 2025 and 2026, our revenue generated from sales outside the PRC accounted for approximately 18.6%, 15.3%, 13.5%, 14.9% and 13.7%, respectively.
Business · p. 187
Pursuant to our agreements with customers, import tariffs imposed by the United States are borne by our customers.
Business · p. 187
Further, our Directors are of the view, and the Sole Sponsor (based on independent due diligence works conducted) concurs, that the U.S. export control laws, the U.S. outbound investment policies, and the U.S. tariffs would not have any material adverse impact on our business operations or financial performance.
Our overseas sales increased by 12.5% from RMB185.2 million in 2023 to RMB208.3 million in 2024 and further increased by 16.6% to RMB242.9 million in 2025, representing 19.6%, 19.3% and 24.7% of our total revenue, respectively.
Business · p. 113
In the six months ended June 30, 2026, our overseas sales increased by 115.1% from RMB100.1 million in the corresponding period of 2025 to RMB215.3 million, and their contribution to our total revenue increased from 20.1% to 32.0%
Business · p. 113
Our overseas sales and profitability may be affected by international trade tensions, changes in trade policies, including tariffs and export tax refund policies, and fluctuations in foreign exchange rates.
During the Track Record Period, we sold our products and services to over 100 countries and regions worldwide.
Business · p. 126
During the Track Record Period, we provided products and services in over 100 countries and regions.
Financial Information · p. 209
Our large scale, decades of experience and successful track record in overseas markets bring us considerable competitive advantages that will continue to serve us well in new markets.
Our revenue attributable to sales in the U.S. was RMB147.0 million, RMB195.3 million and RMB198.6 million in 2023, 2024 and 2025, and RMB97.1 million and RMB101.7 million for the six months ended June 30, 2025 and 2026 respectively, demonstrating stable growth.
Business · p. 180
In early 2025, we expanded our overseas alternative supply chain capabilities by engaging a manufacturing partner in Vietnam and obtaining a Vietnamese Certificate of Origin.
Business · p. 180
As advised by our International Sanctions Legal Advisor, during the Track Record Period and up to the Latest Practicable Date, the impact of the changes in U.S. tariff regulations on our business operations is limited.
Our overseas sales amounted to nil, RMB1.1 million, RMB6.9 million and nil in 2023, 2024, 2025 and the three months ended March 31, 2026, respectively, representing nil, 0.2%, 1.1% and nil of our total revenue for the respective periods.
Business · p. 200
Nevertheless, certain of our customers sell robotic vacuums and other end products incorporating our spatial sensing products to overseas markets, including the United States.
Business · p. 200
During the Track Record Period and up to the Latest Practicable Date, we did not experience any material cancellation of orders or material reduction in procurement from our customers that was directly attributable to tariffs or other changes in international trade policies.
In FY2023, FY2024, FY2025 and 6M2026, our overseas sale accounted for approximately 18.7%, 19.0%, 18.5% and 17.8% of our total revenue, respectively.
Business · p. 127
Any change in global trade policies, such as tightening of import and export restrictions, or any economic recession in the global market or our targeted geographic markets could materially affect our overseas sales and operations.
The Group’s products imported into the U.S. are subject to a 25% Section 301 tariff, which are borne by our customers.
Business · p. 145
As advised by our U.S. export control and sanctions counsel, considering that (i) in each year/period during the Track Record Period, we only had limited sales to U.S. customers, which accounted for approximately 3% of our total revenue; and (ii) since the imposition of the various U.S. tariffs, although some affected customers reduced orders, we have not experienced any material adverse changes in our order volume, product price, customer payment or logistics arrangements due to the U.S. tariffs issue, our Directors are of the view that the U.S. tariffs during the Track Record Period did not, and going forward will not, have any material adverse impact on our business operations or financial performance.
Business · p. 146
Diversified Customer and Market Base: Expanding sales across multiple regions to reduce exposure to any single market and mitigate the potential impact of countryspecific tariffs;
Our sales subject to U.S. tariffs represented nil, 2.8%, 3.2%, and 2.1% for 2023, 2024, 2025, and the four months ended April 30, 2026, respectively.
Business · p. 140
Accordingly, our Directors are of the view that our exposure to U.S. tariffs, whether direct or indirect, has not been, and is not expected to be, material to our business, financial condition and results of operations.
Business · p. 140
As of June 30, 2026, we were executing multiple overseas orders for our PV manufacturing solutions from customers primarily in India, with an aggregate contract value of approximately RMB100 million, all of which was expected to be recognized as revenue in 2026.
During the Track Record Period, a substantial portion of our revenue was generated from customers located outside Chinese Mainland.
Business · p. 134
During the Track Record Period, additional tariffs imposed by the U.S. on imports from China reached a peak rate of 145%, while additional tariffs imposed by China on imports from the U.S. reached a peak rate of 125%.
Business · p. 144
During the Track Record Period and up to the Latest Practicable Date, we had not experienced any material adverse changes in our order volume, pricing, customer payment arrangements or logistics arrangements as a result of U.S. tariff measures, nor had we received any requests from customers to renegotiate sales agreements, cancel orders or suspend product deliveries due to such tariffs.
Our total sales amounted to approximately RMB71.7 million in 2023, RMB83.8 million in 2024, RMB107.3 million in 2025 and RMB62.2 million in the six months ended June 30, 2026, representing 1.8%, 2.0%, 2.6% and 3.1% of the total revenues of the respective years.
Business · p. 152
the Group did not experience any order cancellations, loss of customers or material margin compression as a result of U.S. tariff policies during the Track Record Period and up to the Latest Practicable Date.
Business · p. 153
In light of the recent market and regulatory developments, U.S. tariffs applicable to our products and the International Sanctions Legal Advisor's view above, our Directors are of the view, and the Sole Sponsor concurs, that the applicable U.S. tariffs did not have any material impact on our business and financial performance.
Our international customers are located in Asia, North America, Europe and other regions.
Business · p. 163
despite robust U.S. market demand, our industry has been facing geopolitical tensions and uncertainties surrounding the U.S. and China, which may also result in increasing operational challenges and compliance costs.
Business · p. 155
The table below sets forth the expected timeframe for key stages of our new or expanded production facilities, subject to factors out of our control, including time for premises acquisition/leasing, regulatory approvals, construction progress, customer demand and geopolitical relationships, such as any unanticipated changes in U.S. tariff policies.
The recent growth in our revenue and the improvement in our profit margins were primarily attributable to the execution of our overseas expansion strategy, pursuant to which we have actively broadened our footprint in overseas markets, particularly in Hong Kong.
Financial Information · p. 220
Revenue derived from overseas markets represented 60.9%, 60.3%, 80.6%, 87.1% and 81.5% of our total revenue for the years ended December 31, 2023, 2024, 2025 and the three months ended March 31, 2025 and 2026, respectively.
Financial Information · p. 220
Generally, our projects delivered in overseas markets command higher gross profit margins as compared to our Chinese Mainland projects, a trend that became increasingly pronounced during the Track Record Period.
Revenue contribution from non-domestic markets increased from 24.2% in 2023 to 50.2% for the six months ended June 30, 2026, reflecting our continued expansion in overseas markets and increasing penetration among global customers.
Business · p. 166
For the six months ended June 30, 2026, gross profit margin of non-domestic projects was 40.1%, as compared with an overall gross profit margin of 34.4%.
Subsequent to the Track Record Period up to the Latest Practicable Date, we had continued our business growth, with the continued ramping up of operational output and efficiencies of our clean waste-to-energy incineration project in Bishkek, Kyrgyzstan.
Summary · p. 13
Phase I of the Bishkek Project is a waste-to-energy facility developed under an agreement with a concession period from 2024 to 2059, which was signed in 2024 with the Bishkek City Government.
Business · p. 134
Customer H is a state-owned company in the Kyrgyz Republic, primarily engaged in the supply and sale of electricity.
During the Track Record Period, the Group’s direct revenue exposure to the United States and other non Asian markets remains minimal, accounting for only approximately 2.0%, 1.5%, 3.1%, and 12.5% of our total revenue in 2023, 2024, 2025, and in the six months ended June 30, 2026, respectively, and U.S. revenue representing merely 0,23%, 0.55%, 1.14%, and 1.50% of our total revenue for the same years/period.
Business · p. 174
In late 2025, three overseas customers temporarily reduced purchase volumes citing tariff-related uncertainty, which we accommodated through flexible production scheduling.
Business · p. 174
Such adjustments were short-term in nature and did not result in permanent order cancellations or customer losses, and the relevant customers have subsequently resumed normal ordering levels.
The United States is our largest market, accounting for 71.2%, 76.9%, 82.8%, 80.9% and 84.9% of our revenue in 2023, 2024, 2025 and the four months ended April 30, 2025 and 2026, respectively.
Business · p. 168
During the Track Record Period, our revenue generated from all PRC-origin products that were subject to U.S. tariffs amounted to RMB1,529.3 million, RMB2,275.3 million, RMB1,988.1 million and RMB389.8 million in 2023, 2024, 2025 and the four months ended April 30, 2026, respectively, representing 71.3%, 76.4%, 50.4% and 24.5% of our total revenue, respectively.
Business · p. 168
Our Tariff Legal Advisor is of the view that recent tariffs and trade regulations did not have any material impact on our operations and financial performance.
Although most of our customers are cross-border e-commerce retailers based in Chinese Mainland, our services are used locally across different countries and regions to satisfy local compliance requirements.
Summary · p. 9
As of the Latest Practicable Date, we had provided compliance services in 121 countries and regions worldwide.
Business · p. 133
These customers sell across a wide range of categories and operate on multiple platforms, which helps diversify our exposure to individual industries or platforms.
Our overseas sales, which accounted for 55.1%, 48.2%, 40.8%, 44.3% and 42.8% of total revenue in the years ended December 31, 2023, 2024, 2025 and the six months ended June 30, 2025 and 2026, respectively, are conducted predominantly through Tier-1 suppliers, reflecting the more entrenched Tier-1-supplier-led supply chain structures in overseas automotive markets, which are characterized by a traditional automotive industry system with a more clearly defined division of labor.
Business · p. 144
As of the Latest Practicable Date, we operated two manufacturing bases in Yuyao, Zhejiang province, primarily focused on production of vehicle camera products and other vehicle optical products, and two manufacturing bases in Vietnam, which are located in Phu Tho and Nghe An provinces, respectively, dedicated to production of vehicle camera products, mainly serving our overseas customers.