During the Track Record Period, the U.S. Tariffs paid by our Group amounted to RMB4.9 million, RMB8.4 million, RMB12.3 million and RMB1.7 million in 2023, 2024, 2025 and the four months ended April 30, 2026, respectively, accounting for less than 0.1% of our total revenue for each of the respective year/period.
Business · p. 224
Our procurement of goods of U.S. origin imported into the Chinese mainland only comprised a small portion of controller chips, amounting to approximately RMB3.0 million, RMB61.8 million, RMB225.8 million and RMB177.2 million for 2023, 2024, 2025 and the first half of 2026, respectively, representing approximately 0.03%, 0.4%, 1.0% and 0.7% of our total procurement for the same periods.
Business · p. 224
Production Relocation: We have been progressively shifting the production for our exports to the U.S. from factories in Chinese mainland to manufacturing facilities outside Chinese mainland, to reduce its exposure to tariffs applicable to China-origin products exported to the United States.
As of the Latest Practicable Date, as advised by our International Trade Legal Advisor, the following U.S. tariffs apply to our products exported from China: (a) Section 301 Tariffs of 7.5% on our projection light modules and 25% on our LiDAR cases, lens modules, lens sets, vehicle camera modules, optical lenses, lens assemblies (but, under an exclusion mechanism administered by the United States Trade Representative, Section 301 Tariffs do not apply to our lens sets classified under HTS code 8424.90.9080), and (b) Section 301 Forced Labor Tariffs of 12.5% on all products.
Business · p. 148
During the Track Record Period, all U.S. tariffs were borne by our customers and we did not pay any U.S. tariffs.
Business · p. 148
We have not experienced any material order cancellations, customer losses, or margin compression following the tariff announcement in February 2025 and up to the Latest Practicable Date.
The applicable Product-specific Section 301 Tariff rate on our products imposed by the U.S. government is 25% (in addition to any of the applicable most favored nation rate and Section 301 Forced Labor Tariffs).
Business · p. 189
Our revenue attributable to export to the United States was approximately RMB96 thousand, nil, nil, and RMB461 thousand in 2023, 2024, 2025 and six months ended June 30, 2026, respectively, representing roughly 0.13%, nil, nil, and 0.27% of our total revenue in the same year/period.
We have been exploring overseas market since 2021 and have established relationship with potential customers and agents in Japan, South Korea and Southeast Asia, and conduct some pilot collaborations.
Business · p. 178
In FY2025, we secured orders of 37 robots with a total contract value of approximately RMB1.4 million, and some products have completed the Korean KC certification.
Business · p. 179
During the Track Record Period, we did not derive any revenue from products sold to the United States.
Such revenue accounted for approximately 2.4%, 3.0%, 3.2%, 4.0% and 1.9% of our total revenue in 2023, 2024, 2025 and the five months ended May 31, 2025 and 2026, respectively, representing an immaterial proportion.
Business · p. 183
Taking all applicable tariff regimes into account, our copper product exports to the United States are subject to combined U.S. tariff rates ranging from approximately 51% to 137.35% as of the Latest Practicable Date.
Business · p. 184
Notwithstanding these headline tariff rates, according to our Sanctions Legal Advisors, and our Directors believe, which is concurred by the Joint Sponsors, the U.S. tariff regime does not present a material risk to our business, as the overall financial impact of the applicable U.S. tariff measures on our business is de minimis.
In addition, we generated 38.4%, 45.0%, 48.3% and 46.4% of our revenue from overseas sales in 2023, 2024, 2025 and the three months ended March 31, 2026, respectively.
Summary · p. 4
As of March 31, 2026, we had 497 active overseas distributors across EMEA, APAC and AMER regions, covering over 140 countries and regions worldwide.
Summary · p. 4
We serve over 6,000 hospitals in China and export to over 140 countries and regions. Our international footprint is supported by local representatives in key markets and a growing overseas distribution network.
Revenue from overseas markets increased from RMB8,267.5 million in 2023 to RMB10,047.9 million in 2024 and remained broadly stable at RMB9,950.8 million in 2025, and increased from RMB3,986.7 million in the six months ended June 30, 2025 to RMB4,748.5 million in the six months ended June 30, 2026.
Financial Information · p. 165
In our intelligent electrical product business, we have maintained the No. 1 export position among Chinese low-voltage electrical product brands from 2023 to 2025, according to the F&S Report, and have achieved strong penetration in Europe and rapid growth in key markets.
Financial Information · p. 165
In addition, we operate an overseas manufacturing facility in Rayong, Thailand.
In 2023, 2024, 2025, and for the six months ended June 30, 2026, overseas markets contributed 50.4%, 57.5%, 61.4%, and 66.9% of our revenue, respectively.
Summary · p. 4
We incurred custom duties of RMB30.3 million, RMB27.7 million, RMB110.3 million, and RMB9.0 million in 2023, 2024, 2025, and for the six months ended June 30, 2026, respectively, accounted for as our cost of sales and amounting to 0.6%, 0.4%, 1.2% and 0.2% of our revenue of the corresponding year/period.
Business · p. 186
Our Directors confirmed that, during the Track Record Period and up to the Latest Practicable Date, we had not experienced any material adverse changes in our order volume or pricing in the U.S., nor had we received any material request from our customers (including both U.S. and non-U.S. customers) to cancel or renegotiate orders as a result of the imposition of U.S. tariffs.
In 2025, products stored in our central warehouses in the Chinese mainland represented over 90% of our net revenues.
Business · p. 192
Currently, the China-origin products purchased from us or through our marketplace and shipped to the United States have become subject to tax rates ranging from 10% to 87.5% (increased from 0-62.5% during the Track Record Period prior to the removal of the de minimis exemption and the Trump Administration’s recent imposition of additional tariffs).
Summary · p. 22
In addition, in February 2026, the EU formally approved a regulation that terminated the EUR 150 customs duty exemption for low-value consignments, which became effective on 1 July 2026.
During the Track Record Period, our revenue derived from exports to customers located in the United States amounted to approximately RMB97.9 million, RMB139.0 million, RMB144.4 million, RMB64.1 million and RMB69.0 million in 2023, 2024, 2025 and the six months ended June 30, 2026, respectively, representing approximately 12.2%, 12.2%, 10.5%, 11.2% and 7.7% of our total revenue for the corresponding years/periods, primarily relating to mica sheets, mica tubes, related products and key precision structural components.
Business · p. 163
As advised by our legal advisor as to international sanctions laws, during the Track Record Period and as of the Latest Practicable Date, the additional cumulative U.S. tariffs applicable to our products generally ranged from 20% to 37.5%.
Business · p. 163
To effectively manage and mitigate potential tariff and trade-related risks, we have established a trade compliance monitoring mechanism.
As a result, the applicable Section 301 Tariff rates on our products imposed by the U.S. government has been 37.5% since July 24, 2026.
Business · p. 202
During the Track Record Period, revenue generated from exports to the United States represented 2.9%, 4.1%, 18.4% and 4.6% of our total revenue for the years ended December 31, 2023, 2024 and 2025 and the three months ended March 31, 2026, respectively.
Business · p. 202
Revenue generated from overseas markets excluding the United states increased significantly from RMB53.4 million in 2023 to RMB86.7 million in 2024, and further to RMB124.2 million in 2025, representing a CAGR of 53% from 2023 to 2025, and further increased from RMB24.6 million for the three months ended March 31, 2025 to RMB42.2 million for the same period in 2026.
In 2023, 2024, 2025 and for the six months ended June 30, 2026, the revenue generated from countries and regions outside Chinese Mainland accounted for 27.1%, 29.5%, 36.6% and 48.6% of our total revenue, respectively.
Financial Information · p. 218
On the other hand, during the Track Record Period, revenue from U.S.-based customers only accounted for approximately 7% to 17% of the Group’s total consolidated revenue for each of the financial years of 2023, 2024 and 2025 and the six months ended June 30, 2026, compared to the proportion of sales to PRC-based customers.
Business · p. 184
We confirm that the customers would bear the relevant tariffs under the FOB shipping terms.
Since February 2025, the U.S. administration has cumulatively imposed additional 145% tariffs on Chinese imports.
Business · p. 178
On the one hand, we generated revenue from markets of other countries and regions, including the United States, and those revenue from other countries and regions accounted for 7.6%, 6.1%, 12.0% and 13.0% of our total revenue for the years ended December 31, 2023, 2024, 2025 and for the five months ended May 31, 2026, respectively.
Business · p. 179
To address potential tariff risks, we plan to further diversify our procurement sources, optimize logistics and customs processes, and, where appropriate, negotiate with suppliers and customers to share tariff impacts.
Notably, our overseas operation has already demonstrated strong momentum, with revenue from overseas markets growing from RMB3.4 million in 2023 to RMB26.5 million in 2025, and from RMB2.3 million in the six months ended June 30, 2025 to RMB8.6 million in the six months ended June 30, 2026, providing a solid foundation for further expansion.
Business · p. 199
The policies and legal systems across these regions vary significantly, exposing us to potential risks such as trade barriers, tariff adjustments, foreign exchange controls and changes in industry regulatory policies.
During the Track Record Period, substantially all our revenue was derived from Chinese Mainland. The proportion of our overseas revenue continued to increase during the Track Record Period, mainly due to the increasing demand for LFP cathode materials in overseas markets.
Business · p. 129
We have started to supply products in volume to the overseas production facilities of domestic battery manufacturers and are conducting product qualification and validation with a number of leading overseas battery manufacturers.
Business · p. 110
We are also accelerating our global manufacturing footprint, with our production base in Spain currently under construction, which is expected to further strengthen our overseas production capacity and support our long-term international expansion.
The latest effective tariff rate for our products sold to the United States from Chinese Mainland is therefore 60%.
Summary · p. 17
Such sales accounted for less than 2% of our total revenue in each period comprising the Track Record Period.
Business · p. 189
We plan to mitigate these potential tariff impacts through diversified manufacturing and logistics footprints, selective price adjustments, and closer engagement with distributors to redesign bills of materials where needed to reduce tariff exposure.
We are subject to risks associated with changes in international trade policies, tariffs, trade restrictions, import controls, customs compliance requirements and product certification requirements.
Business · p. 206
Following the implementation of the ACFTA and the RCEP, a number of our product categories have become eligible for preferential tariff treatment, including reduced or nil tariff rates, compared with the corresponding MFN tariff rates that would otherwise have applied in the absence of such trade agreements.
Business · p. 207
Taking into account the foregoing, our Directors are of the view that international trade policies, including applicable tariffs, trade restrictions and import controls, did not have any material adverse effect on our business, financial condition or results of operations during the Track Record Period.
During the Track Record Period, we generated most of our revenue from commodity distribution in China. We also expanded our sales and distribution network globally, including to the Middle East, Europe, and North and South America.
Business · p. 117
As of the Latest Practicable Date, we had 17 overseas subsidiaries and offices, with business activities spanning over 80 countries and regions worldwide during the Track Record Period.
Financial Information · p. 156
We employ foreign exchange forward contracts based on the expected settlement and/or sale timing and amount of the underlying transactions to lock in exchange rates and reduce the impact of future exchange rate fluctuations.
As of the Latest Practicable Date, the aggregate U.S. import duty rate applicable to our principal ESS products was approximately 40.9%, subject to product-specific classification, exclusions and future adjustments.
Business · p. 171
For the year ended December 31, 2025, revenue generated from the U.S. market represented approximately 0.5% of our total revenue, and U.S. tariff measures did not have a material adverse impact on our results of operations.
Business · p. 172
However, we have entered into a contract to supply integrated ESS products for multiple energy storage projects in Texas, which are expected to be delivered in 2026. If the U.S. market becomes a more material component of our business, changes in U.S. tariff policy could increase costs and affect margins.
As of May 31, 2026, we operated 41 overseas stores, including 36 in Singapore, three in Thailand, one in Malaysia and one in the United Kingdom, taking Chinese dumplings and wontons to new segments of consumers.
Business · p. 108
Specifically, as of the Latest Practicable Date, we had 43 Yuen Kee Dumpling stores in Singapore, eight in Thailand, one in Malaysia and one in the United Kingdom, as a further step of our overseas expansion.
Summary · p. 15
Compared with our operations within Chinese Mainland, our overseas stores generally achieve higher gross profit margins due to higher selling prices, while raw materials procurement costs account for a relatively low percentage of sales revenue as procurement costs are maintained at reasonable levels through our centralized supplier selection and pricing arrangements with approved local suppliers.