As of the Latest Practicable Date, the total tariff of our products exported to the U.S. ranged from 10.0% to 16.5%.
Business · p. 182
During the Track Record Period, our direct sales to the U.S. customers amounted to RMB117.0 million, RMB114.4 million, RMB143.7 million and RMB169.5 million, which only accounted for 2.2%, 2.0%, 2.1% and 2.8% of our total revenue for the respective years.
Business · p. 183
During the Track Record Period, our raw materials originated from the U.S. represented less than 2.4% of our total procurement costs.
Our revenue from overseas sales increased by 87.5% from RMB1,195.4 million in 2022 to RMB2,241.6 million in 2023, and increased by 26.3% from RMB2,241.6 million in 2023 to RMB2,831.3 million in 2024, respectively, accounting for 8.6%, 13.6% and 24.0% of our revenue in the same years, respectively.
Financial Information · p. 278
With regard to the impact of the recent U.S. tariff and other trade restriction policies, all the products exported and sold to our customers are exported from China and executed under either Free On Board (“FOB”) or Delivered At Place (“DAP”), whereby the responsibility for customs filing and clearance in the respective destination countries resides with our customers.
Summary · p. 23
Accordingly, while our Directors are of the view that the impacts of the U.S. and EU tariffs on our operation were relatively insignificant during the Track Record Period, we cannot assure that such impacts will remain insignificant in the future.
Starting in February 2025, the U.S. imposed significant tariffs on imports from China, including two sets of tariffs under the International Economic Emergency Powers Act (“IEEPA”).
Summary · p. 20
The materials and components that we produced during the Track Record Period were not imported into the United States and, therefore, were not subject to any enhanced U.S. tariffs.
Business · p. 236
As of the Latest Practicable Date, the indirect impact of the increased tariffs by the U.S. on our business operations and financial performance was minimal.
Based on our export records to the U.S. and the relevant HTSUS codes of our products exported to the U.S., the applicable tariff rates of our the major tent products exported to the U.S. range from approximately 34.5% to 36.3% as of the Latest Practicable Date.
Summary · p. 21
In 2022, 2023, 2024 and the eight months ended August 31, 2025, our revenue from North America was RMB154.1 million, RMB46.2 million, RMB50.0 million and RMB29.7 million, representing 18.8%, 10.0%, 8.7% and 6.5% of our total revenue in the same respective periods.
Summary · p. 21
our Directors are of the view and the Sole Sponsor concurs that the recent U.S. tariff policies do not have any significant direct or indirect impacts on our business operations and financial performance.
Since the implementation of the tariffs imposed by the united states in February 2025, the proportion of our raw material purchases with the U.S. as the shipping origin has remained low.
Business · p. 224
Therefore, our Directors believe that the potential pressure on the pricing of our products resulting from the Additional US Tariffs could be partially passed on to our customers.
Business · p. 224
Since January 1, 2025 and up to the Latest Practicable Date, we had not received any request from our customers which may cause significant pricing pressure as a result of the imposition of the Additional US Tariffs and none of our customers, including major customers, had cancelled their existing orders or request re-negotiation of prices for existing orders as a result of the Additional US Tariffs.
In 2022, 2023, 2024 and the nine months ended September 30, 2024 and 2025, revenue from overseas markets amounted to RMB7,063.5 million, RMB3,792.3 million, RMB14,975.9 million, RMB11,879.1 million and RMB12,266.0 million, respectively, accounting for 24.1%, 13.9%, 32.3%, 34.0% and 39.1% of our total revenue in the respective year/period.
Business · p. 228
Our exports to the U.S., however, only accounted for 1.7% of our total revenue during the Track Record Period, and therefore our business has had limited direct exposure to U.S. tariff measures and cross-broader trade policies.
Business · p. 229
We have adopted a flexible and diversified global production and supply chain strategy, including establishing overseas manufacturing centers and working with local suppliers where appropriate, which enables us to manage logistics and cost efficiency and mitigate potential trade-related risks.
During each period of the Track Record Period, revenue from sales of our products shipped to the United States accounted for less than 5% of our total revenue in each period.
Summary · p. 15
Overall, the geopolitical tension, trade restrictions and tariffs had not had a material impact on our business operations or financial performance, including supply chain, outsourced production and sales to customers, during the Track Record Period and up to the Latest Practicable Date.
Summary · p. 16
We regularly conduct risk planning and identify areas where we can build in supply chain flexibility to ensure we have the ability to quickly pivot if needed to respond to a rapidly changing tariff environment.
Revenue generated outside the Mainland China contributed approximately 73.1% of our total revenue in the nine months ended September 30, 2025.
Financial Information · p. 405
From day one, we have launched all our foundation models and products across international markets with one goal: to make next-generation AI technologies truly broadly accessible at compelling value proposition.
As of the Latest Practicable Date, we have obtained registration approvals for MP1000 in 14 overseas jurisdictions in Europe, Asia Pacific, Middle East, Africa and South America, including the CE Marking of MP1000 in the EU, and commercialized MP1000 in 25 overseas countries.
Summary · p. 35
In terms of contractual sales volume, we have entered into agreements for sales of 118 units of our Core Products globally as of the Latest Practicable Date, including 46 units in China and 72 units in overseas countries.
Summary · p. 35
Leveraging our existing global market entry capabilities, we plan to continue to strategically enter into other overseas markets that present significant market potential, taking into account various factors such as per capita GDP, recognition of CE Marking and NMPA registration, sales volume of da Vinci Surgical Systems and eligibility for one-belt-one-road initiatives.
As a result of our offshore expansion efforts, 5.9% of our revenue was generated from Hong Kong in 2024, growing from only 0.3% in 2022.
Business · p. 169
The tangible growth in revenue from the Hong Kong market, escalating from 0.3% in 2022 to 5.9% in 2024, showcases our feasibility and capabilities in navigating complex global landscapes, regulatory challenges, and competitive environments.
Business · p. 226
Our offshore expansion into Singapore and Japan will follow a disciplined, phased approach.
Based on the best knowledge, information and belief of the Directors as of the Latest Practicable Date, the maximum U.S. tariff rate applicable to our core products was approximately 63%, subject to product classification and any other applicable duties, exclusions and adjustments.
Summary · p. 21
As such, the U.S. market contributed only 5.5% of our total revenue growth during this period, while the remaining 94.5% of our revenue growth was contributed by other countries and regions.
Business · p. 304
As a result of our successful market diversification, for the years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2024 and 2025, revenue generated from the sales in the U.S. amounted to RMB45.1 million, RMB78.5 million, RMB86.9 million, RMB38.7 million and RMB40.9 million, respectively, representing 16.4%, 17.2%, 14.2%, 14.1% and 10.3% of our revenue in the same periods, respectively.
For the years ended December 31, 2022, 2023, 2024 and the six months ended June 30, 2024 and 2025, our revenue from U.S. accounted for approximately 1.6%, 3.6%, 4.4%, 4.5% and 2.0% of our total revenue, respectively.
Summary · p. 21
Under our typical sales agreements, transactions are conducted on a FOB basis.
Business · p. 269
For instance, we plan to establish a production facility in Thailand with an annual production capacity of 15,000 tons of PS building components.
During the Track Record Period, our revenue generated outside of mainland China increased from RMB5.7 million and RMB6.0 million in 2022 and 2023, respectively, to RMB18.2 million in 2024, and amounted to RMB2.3 million and nil for the six months ended June 30, 2024 and 2025.
Business · p. 261
We currently have subsidiaries or offices in Sydney, Australia, Silicon Valley, USA, and Riyadh, Saudi Arabia, and will strategically enter regions with high demand for digital twins and data emulation by participating in international exhibitions, establishing local marketing networks, and optimizing our global marketing team's effectiveness.
For the years ended December 31, 2022, 2023 and 2024 and the six months ended June 30, 2025, our revenue generated from overseas sales amounted to nil, nil, RMB0.1 million, and RMB0.1 million, respectively, representing nil, nil, 0.04%, and 0.02% of our total revenue, respectively.
Business · p. 233
As of the Latest Practicable Date, the export of our home security devices exported to the U.S. is subject to a tariff rate of 45%.
Business · p. 233
Based on the above, the Sole Sponsor also concurs with the Directors’ view that the imposition of U.S. tariffs on our products would not have a material adverse impact on the Group.
As of December 31, 2022, 2023 and 2024 and June 30, 2025, total client equity from our overseas futures, securities, and leveraged foreign exchange brokerage services stood at approximately HK$11.9 billion, HK$12.5 billion, HK$13.8 billion, and HK$17.8 billion, respectively, while our overseas asset management business had an AUM of approximately HK$2.0 billion, HK$2.3 billion, HK$2.5 billion, and HK$3.4 billion, respectively.
Summary · p. 2
As of the Latest Practicable Date, we held memberships on 16 overseas exchanges and maintained 14 clearing seats, including those at CME, LME, SGX, and ICE-US.
Business · p. 201
Operating profit growth during the Track Record Period was driven by our continued international expansion, which resulted in increases in our client base, trading activities and client equity, particularly in the overseas market.
Recent tariff changes and geopolitical tensions have a multi-dimensional impact on our business, affecting our PRC futures brokerage, PRC risk management services, and overseas financial services.
Summary · p. 24
We address rising demand for risk hedging and customized risk management solutions, such as OTC derivatives and basis trading, leading to growth in our notional principal in OTC derivatives business since the new US tariff policies in April 2025.
Summary · p. 24
In the short term, we do not anticipate tariffs or geopolitical tensions to have a material adverse impact on our performance.
During the Track Record Period, we have successfully established market presence in both the PRC market and overseas markets, which primarily included Europe and Africa.
Summary · p. 4
Our Directors confirm that despite the intensifying trade war between China and the US, there was no material impact on our business operations or financial performance during the Track Record Period.
Summary · p. 7
To the best knowledge of our Directors, there were no tariffs or trade restrictions affecting our export sales in Europe and Africa as of the Latest Practicable Date.
As we gradually expanded overseas, our revenue from sales to customers outside mainland China amounted to RMB169.5 million, RMB161.9 million, RMB305.4 million, RMB130.8 million and RMB170.4 million in 2022, 2023, 2024 and the six months ended June 30, 2024 and 2025, respectively, accounting for 10.1%, 12.3%, 15.6%, 15.4% and 11.2% of our total revenue for the respective years/periods.
Business · p. 207
In 2025, the United States government announced a series of tariff increases on imports from China.
Summary · p. 29
As of June 30, 2025, we had established local sales offices in Japan, South Korea and Germany to directly address the needs of customers in these key international markets.
Our revenue generated from countries and regions outside Chinese Mainland amounted to RMB54.9 million, RMB518.2 million and RMB44.8 million, respectively, in 2022, 2023 and 2024, accounting for 12.6%, 44.2% and 8.6% of our total revenue for the respective year.
Financial Information · p. 368
Our sales volume (including self-manufactured epitaxial wafers and epitaxial wafers sold under foundry services) grew from 44,515 pieces in 2022 to 130,702 pieces in 2023, but decreased to 78,928 pieces in 2024, mainly due to the change of market condition attributable to a decrease in our overseas sales which resulted from global trade tensions.
Summary · p. 2
Our Directors confirm that our Group has not engaged in any direct exports of goods or products from China to the U.S. during the Track Record Period and up to the Latest Practicable Date.
In 2025, we commenced to establish our overseas POS presence in Thailand, Indonesia and Hong Kong, which remained in the early exploratory stage and of very limited scale.
Business · p. 189
Since July 2025, we have been exploring the establishment of POS in Hong Kong.
Business · p. 190
Taking into account that (i) our existing business operation has been conducted and our revenue has been derived substantially in the PRC; (ii) our suppliers and customers are substantially located within the PRC and/or PRC entities; and (iii) we do not expect to expand into the US market or engage in any trade activities with US entities in the foreseeable future, we consider that such tariff increases implemented by the U.S. government would not have any material adverse impact on our business operation and financial conditions.