We expect to sell our tungsten products primarily to the PRC in the near term.
Business · p. 282
In addition, while risks due to potential issues with exporting and shipping may have substantial impact on our operations given that we expect to export and ship our products mainly to customers outside Kazakhstan, it is unlikely that such issues will arise as advised by the Independent Technical Consultant, especially taking into account favorable exportation policies of Kazakhstan, the trend of encouraging importation of certain resources in China and our transportation channel and conditions.
Business · p. 273
By processing the concentrate domestically, mining companies can potentially bypass export restrictions and access higher-value markets for processed tungsten products.
During the Track Record Period, we have expanded our oversea markets and our overseas sales accounted for 16.6%, 21.8%, 19.8%, 26.0% and 17.1% of our total revenues in 2022, 2023, and 2024 and for the five months ended May 31, 2024 and 2025, respectively.
Business · p. 220
Our revenue generated from our oversea sales decreased from RMB928.9 million in 2023 to RMB889.5 million in 2024, mainly due to the decrease in revenue generated from EMEA as our customer demand in EMEA was gradually stabilized.
In 2022, 2023 and 2024, our revenue from sales outside Mainland China continued to increase and amounted to RMB52.4 million, RMB414.4 million and RMB845.5 million, respectively, accounting for 12.6%, 33.1% and 47.8% of our total revenue, respectively, during the same years.
Business · p. 211
Our globalization strategy primarily focuses on building stable business relationships with international leading power semiconductor device companies, improving overseas customer service through our overseas subsidiaries and expanding our production capacity in Southeast Asia to meet the growing international demand for our SiC substrates.
(i) during the Track Record Period, we had only exported six and a hundred pieces of SiC substrates to the U.S. in 2022 and 2024, respectively; (ii) our products were not included on the lists of products that are subject to the Section 301 Tariffs as maintained by the USTR as of the Latest Practicable Date;
Business · p. 241
our Directors do not expect the Section 301 Investigation or the Tariffs to have any direct material adverse impact on our business operations, financial performance and plans to construct overseas production plants.
Business · p. 241
According to our estimation, approximately 3.2%, 9.0% and 10.5% of our SiC substrates in terms of revenue were indirectly exported to the U.S. as part of end products in 2022, 2023 and 2024, respectively.
We strategically targeted the global market early on. This global mindset has enabled us to establish a strong international presence with over 70% of total revenue generated from non-domestic markets outside Chinese mainland in 2024.
Summary · p. 6
As of December 31, 2024, we have shipped approximately 56,000 AMRs across over 40 countries and regions worldwide.
On June 10 and 11, 2025, the U.S. government reaffirmed that tariffs on Chinese imports would remain at a combined rate of 55%, comprising three existing components: a 25% Section 301 tariff imposed since 2018, a 20% tariff introduced in February 2025, and a 10% reciprocal tariff imposed on April 2, 2025.
Summary · p. 30
Although certain low-value shipments may qualify for the de minimis exemption under U.S. customs regulations, the exemption threshold does not cover most of our shipments, and thus has limited mitigating effect.
In 2024, we generated 58.6% of our revenue offshore, including 39.3% in special supervision territory in China, 8.7% in Asia (excluding mainland China and Vietnam), 7.0% in Vietnam and 2.9% in North America (within which, 2.7% was from the United States).
Summary · p. 19
In 2022, 2023 and 2024, our direct sales to the United States amounted to RMB1,468.9 million, RMB1,896.1 million and RMB1,908.0 million, which only accounted for 3.1%, 3.5% and 2.7% of our total revenue for the respective years.
Summary · p. 20
We believe that the Additional US Tariffs, including the corresponding tariff policies introduced by other countries, assuming they are enforced as proposed, will not have a material and adverse impact on our business and results of operations, on the bases that (i) we make very limited direct exports to the United States, and therefore has insignificant direct exposure to the tariffs imposed by the United States; (ii) brand companies, including our customers, who import the end products incorporating our products in the United States, are responsible for the tariffs; (iii) changing industry landscape mitigate the risk exposure of leading industry players regarding the Additional US Tariffs; and (iv) we have also taken active measures to mitigate our risks (the ''Directors' Views on the Additional US Tariffs'').
Our most significant foreign currency exposure is to the Thai Baht, the Hong Kong dollar and the Japanese Yen, details of which are set out in Note 29 to the Accountants’ Report included in Appendix I.
Financial Information · p. 364
We do not currently hedge our revenues or our net equity position in any of our operating subsidiaries.
Financial Information · p. 364
We seek to limit our exposure to foreign exchange rate risk by ensuring that our financial assets are predominantly denominated in the same currencies (or in the case of Hong Kong, US dollars) as our insurance liabilities in each of our geographic markets.
Revenue contribution from the U.S. accounted for 37.7%, 34.1%, 55.0% for the year ended December 31, 2022, 2023 and 2024, respectively.
Summary · p. 25
Substantially all of these tariffs are borne by our customers.
Summary · p. 23
As of the Latest Practicable Date, we have not experienced any attempts by our U.S. customers to renegotiate pricing or cancel orders in response to the tariffs.
We source significant quantity of advanced semiconductors from third party suppliers for our AI products, especially our AI chips.
Business · p. 232
We observed that certain trade restrictions and geopolitical tensions in the recent years had limited impact on our business operation as our business operations are not subject to US trade restrictions and we did not experience any material supply shortage or suspension due to trade restrictions.
Business · p. 232
Going forward, we plan to further diversify our supplier base, and we do not foresee any significant challenges in sourcing semiconductors used in our AI products.
During the Track Record Period, sales of our products with the U.S. as the shipping destination accounted for 68.8%, 80.6% and 76.5% of our total revenue, respectively.
Business · p. 206
When we sell our products as an exporter, as our products are sold and delivered to the U.S. on a FOB Chinese ports arrangement, we are not responsible for customs clearance within the jurisdiction of the U.S. and we are not responsible for the payment of any such tariffs for products imported into the U.S.
Business · p. 207
Furthermore, since the imposition of the New Tariff on China, we have been closely communicating with our customers, including major customers, and our customers had expressed interest in relocating production of some of their orders to our Indonesia Factory which is expected to commence operation in the second quarter of 2025.
North America | 5,703,859 | 26.7 | 6,301,569 | 25.7 | 7,094,512 | 25.4
Business · p. 219
Consequently, during the Track Record Period, our products exported from China to the U.S. were subject to tariffs ranging from 8.9% to 29.2%.
Summary · p. 16
Our products exported from China to the U.S. were subject to tariffs ranging from 38.9% to 99.2%; products exported from Mexico to the U.S. were subject to tariffs ranging from 0.0% to 53.0%; and products exported from Vietnam to the U.S. were subject to tariffs ranging from 11.4% to 14.0%.
Subsequent to the Track Record Period and as at the Latest Practicable Date, the US government introduced (i) the US 2025 IEEPA Tariff on goods from various countries including the PRC, where all goods exported from the PRC to the US would be subject to an additional 20% tariff in total, with a few exceptions; and (ii) the US Reciprocal Tariff on goods from various countries including the PRC, Indonesia and Thailand, where all goods exported to the US from (a) the PRC would be subject to an additional 34% tariff (paused for 90 days and subject to a 10% tariff instead from 14 May 2025); (b) Indonesia would be subject to an additional 32% tariff (paused for 90 days and subject to a 10% tariff instead from 10 April 2025); and (c) Thailand would be subject to an additional 36% tariff (paused for 90 days and subject to a 10% tariff instead from 10 April 2025), with a few exceptions (including sucralose, which is not subject to any reciprocal tariff as it falls under the exemption under Annex II to the reciprocal tariff pursuant to President Trump’s Executive Order of 2 April 2025).
Business · p. 218
In order to diversify the risk brought by extra tariff imposed by the United States, we produce food-grade glycine in our Indonesia Plant and export our food-grade glycine to our customers in the United States from Indonesia.
Business · p. 218
during the Track Record Period and up to the Latest Practicable Date, we only exported our food-grade glycine that was produced at our Indonesia Plant to our customers in the US.
For FY2022, FY2023 and FY2024, our sales to the United States amounted to RMB48.4 million, RMB38.1 million and RMB36.5 million, accounting for 12.3%, 10.9% and 10.4% of our total revenue, respectively.
Summary · p. 22
As at the Latest Practicable Date, imports from China, including our printing equipment, scales, POS terminals and PDAs, to the United States were subject to a tariff rate of 30% on top of any other tariff and duties which had already been implemented before February 2025, and it remained uncertain how the Sino-U.S. and global trade tension will develop.
Summary · p. 22
It is expected that the new production centre in Malaysia will commence operation in the second quarter of 2025.
In early 2025, the U.S. government issued multiple executive orders implementing additional tariff on imports from various jurisdictions, including additional tariff amounting to an aggregate of 145% on imports from the PRC that took effect on April 10, 2025, and the repeal of duty-free treatment under the U.S. Tariff Act of 1930 for products imported from the PRC to the U.S. with the aggregated fair retail value under US$800 per person per day (the "De Minimis Exemption") which took effect from May 2, 2025.
Summary · p. 23
For each year of the Track Record Period, our revenue generated from exports to the U.S. accounted for 3.2%, 1.8% and 2.3% of our total revenue, respectively, and our gross profit generated from exports to the U.S. accounted for 1.1%, 0.8% and 1.3% of our total gross profit, respectively.
Summary · p. 23
We have not considered the U.S. market as our primary focus and we do not expect the changes in U.S. tariff regulations would result in a material adverse effect on our business and financial conditions.
As of the Latest Practicable Date, the United States imposed a total tariff rate of up to 245% on goods imported from China, and China imposed a retaliatory 125% tariff on goods imported from the United States.
Summary · p. 35
Despite that we currently do not plan to launch GASTROClear™ nor any other product candidates as LDT services in the U.S., such enhanced regulations in the U.S. may potentially impact our provision of LDT services in other jurisdictions if such jurisdictions adopt similar regulations on LDT services.
Our revenue from sales outside China increased from RMB31.2 million in 2022 to RMB874.6 million in 2023, and further to RMB2,373.2 million in 2024. The proportion of our overseas revenue increased from 0.3% in 2022 to 4.7% in 2023, and further to 23.9% in 2024, marking the initial success of our global strategy.
Business · p. 225
Firstly, for our domestic production capacity, apart from a single one-off export of samples to the U.S. in the amount of approximately RMB60 thousand in 2022, we did not, are not currently, and do not intend to export from China to the U.S., rendering the U.S. market immaterial to us.
Summary · p. 35
In addition, to our knowledge, none of our top five overseas customers during the Track Record Period was a U.S. company.
We have entered into a number of out-license and collaboration agreements with certain overseas customers.
Financial Information · p. 452
During the Track Record Period, U.S. dollar-denominated balances consistently represented approximately 50% or more of our cash and cash equivalents.
Financial Information · p. 454
Such political tensions and policy changes could have an adverse effect on global economic conditions, the stability of global financial markets, and international trade policies.
During the Track Record Period, due to the Russo- Ukrainian War, our Directors observed that Russian customers’ demand shifted from international brands to private label brands.
Revenue from Russia declined 36.7% to RMB206.2 million from RMB325.7 million in 9M2023, primarily due to a 22.9% decrease in Contract Manufacturing babycare products sales volume and an 8.9% decrease in average selling price as a result of the continuous depreciation of the Ruble against RMB since early 2024. This currency weakness has reduced Russian importers’ purchasing power for Chinese goods.