The following table sets forth a breakdown of Relevant Jurisdictions which imposed tariffs and trade restrictions on our products sold to during the Track Record Period:
Business · p. 175
Taking into account (i) the applicable tariff rates, the non-stacking application of Sections 301 forced labor tariffs and Section 323 tariffs, applicable exemptions, (ii) the fact that our direct exports to the United States accounted for approximately 5.8%, 5.4%, 4.8% and 3.6% of our total revenue in 2023, 2024, 2025 and the three months ended March 31, 2026, respectively, (iii) since the U.S. tariff announcement in February 2025 and up to the Latest Practicable Date, we have not experienced any material order cancellations attributable to the U.S. tariffs, nor has there been any material adverse change in our revenue, gross profit margin or overall results of operations attributable to the U.S. tariffs, our Directors are of the view that the U.S. tariffs have not had, and are not expected to have, any material adverse impact on our business operations or financial performance.
As of March 31, 2026, we operated three major manufacturing bases, comprising 12 manufacturing facilities, of which 11 were located in the PRC and one in Serbia, forming a robust manufacturing network that enables us to efficiently supply key automotive markets in Asia, Europe and the Americas.
Business · p. 132
Outside the PRC, our products are primarily sold to countries and regions including the Czech Republic, Japan, Germany, Spain and Brazil.
Business · p. 140
In addition, our exports to the U.S. accounted for only 0.3%, 0.2%, 0.3% and 0.1% of our total revenue in 2023, 2024, 2025, and the three months ended March 31, 2026, respectively.
In particular, in December 2025, the PRC government announced the imposition of additional tariffs on certain imported products originating from the United States.
Summary · p. 13
In particular, on December 31, 2025, MOFCOM announced safeguard measures on imported beef, effective from January 1, 2026 for a period of three years.
Business · p. 163
In response to such developments, we have been actively adjusting our sourcing strategy by reducing procurement from regions subject to higher tariff exposure and increasing procurement from alternative sourcing regions, including South America, to diversify supply and mitigate potential cost impacts.
In 2023, 2024, 2025 and the four months ended April 30, 2025 and 2026, our revenue from overseas markets accounted for 58.0%, 70.9%, 79.7%, 72.8% and 87.6%, respectively, of our total revenue in the corresponding years/periods.
Financial Information · p. 186
We have established a global sales and service network and will further maintain and expand our global network and enhance our resilience against regional market fluctuations.
As of the Latest Practicable Date, our products were subject to Section 301 Tariffs of 50% imposed in 2018 and Section 301 Tariffs of 0% imposed in December 2025 which would be raised in June 23, 2027.
Business · p. 177
Our revenue generated from direct exports to the U.S. were RMB4.7 million, RMB4.0 million, RMB5.9 million and RMB2.4 million, in 2023, 2024, 2025 and the three months ended March 31, 2026, representing 0.67%, 0.38%, 0.49% and 0.86% of our total revenue in respective year/period.
Business · p. 177
Our Directors, taking into accounts of the views of DLA Piper, are of the view that recent U.S. tariff measures have not had, and are not expected to have, a material impact on our business operations or financial position.
During the Track Record Period, we have exported inverters, energy storage batteries, dehumidifiers and solar air conditioners into the United States. Exports to the United States have accounted for 2.52%, 3.49%, 3.54%, and 1.74% of our total revenue in 2023, 2024, 2025 and the period before April 30, 2026, respectively.
Business · p. 179
However, the tariffs incurred on products exported to the U.S. were borne by the U.S. importers and eventually passed to the U.S. customers, and thus we did not primarily bear the tariff costs.
During the Track Record Period, we derived less than 1% of revenue from products sold to the United States in 2024 and less than 3% in 2025 and for the four months ended April 30, and nil revenue from products sold to the United States in 2023.
Business · p. 195
We have not experienced any cancellation of orders since early 2025 as a result of the increase in U.S. tariffs.
Business · p. 195
We plan to monitor the potential secondary effects on our supply chain, including changes in sourcing costs, lead times, and supplier behaviour, which may arise from broader trade tensions and tariff-related adjustments.
Since commencing our international businesses in 2016 and up to the Latest Practicable Date, we have established six self-operated regional operational centers in the U.S., Belgium, Australia and Singapore.
Business · p. 149
Revenue contribution from these cross-border supply chain services amounted to RMB44.2 million, RMB56.6 million, RMB62.4 million and RMB26.0 million, respectively, in 2023, 2024, 2025 and for the four months ended April 30, 2026.
Business · p. 149
Revenue generated from overseas customers amounted to RMB20.1 million, RMB47.5 million, RMB52.8 million and RMB21.8 million, respectively, in 2023, 2024, 2025 and for the four months ended April 30, 2026.
We have established a global footprint, supported by a network of five production bases, four R&D centers, and multiple branch offices strategically located around the world.
Business · p. 158
As a testament to the ongoing strength and effectiveness of our global expansion strategy, our revenue from overseas markets contributed over 90% of our total revenue in the three months ended March 31, 2026.
As a result, for our typical optical transceiver products, which are generally subject to (iii) a 0% MFN tariff rate, the aggregate applicable U.S. tariff rate was generally 17.5% as of February 24, 2026 and 7.5% from February 25, 2026 onward, subject to the applicable tariff classification and any other applicable duties, fees, exclusions, adjustments or trade remedy measures.
Business · p. 204
Products originating from the Chinese Mainland and subsequently sold to customers in the United States only accounted for approximately 0.3%, 0.9%, 0.2% and 0.0% of our total revenue during the Track Record Period, respectively.
Throughout the Track Record Period, our overseas revenue, which only includes revenue from direct transactions with overseas customers, increased by 14.8% from RMB11.4 million in 2023 to RMB13.0 million in 2024, and further increased to RMB102.7 million in 2025.
Business · p. 165
We have established cooperation or business development engagement with multiple international Tier-1 suppliers such as Schaeffler, with our products being deployed to support overseas programs of global OEMs such as Volkswagen.
Business · p. 164
During the Track Record Period, we did not derive any revenue from direct sales to the U.S.
During the Track Record Period, our overseas sales accounted for 74.1%, 68.1%, 58.0% and 51.5% of our revenue in 2023, 2024 and 2025, and for the four months ended April 30, 2026, respectively.
Summary · p. 7
While various tariffs have created uncertainty in export markets generally, we have not experienced any material adverse impact on our financial performance resulting from U.S., EU or other tariffs to date.
Business · p. 185
During the Track Record Period, we recorded sales to customers in the U.S. of RMB19.4 million in 2023, RMB0.3 million in 2024, RMB0.03 million in 2025, and nil for the four months ended April 30, 2026, representing 1.2%, 0.02%, 0.001% and 0.0% of our total sales, respectively.
During the Track Record Period, our revenue generated from overseas markets amounted to RMB502.7 million, RMB600.6 million, RMB659.8 million, RMB43.2 million and RMB142.9 million in 2023, 2024, 2025 and the three months ended March 31, 2025 and 2026, respectively, representing 11.0%, 20.9%, 26.3%, 11.9% and 26.6% of our total revenue for the respective periods.
Business · p. 153
In addition, we recorded higher gross profit margin for our core businesses in overseas markets, including our industrial robots and automation systems, injection molding equipment and CNC machining centers, which were 42.4%, 45.9%, 46.6%, and 32.4% during the Track Record Period, respectively, reflecting strong profitability.
Financial Information · p. 169
Due to enhanced export control-related procedures in certain jurisdictions, the average customs clearance time for certain of our cross-border shipments increased from approximately 3-4 days to up to 12-16 days, resulting in an extension of the overall order cycle by approximately 9-12 days.
As an initial pilot, we entered into contracts for the sale of two swapping stations to customers in the Philippines with contract values of approximately RMB2.6 million and RMB3.1 million, respectively.
Business · p. 144
We had sold and delivered 11 battery-swapping stations to a Thai customer, and had entered into a sales agreement with a Malaysian customer for the sales of 10 battery-swapping stations subsequent to the Track Record Period and up to the Latest Practicable Date.
We recorded overseas revenue of RMB204.4 million, RMB218.2 million, RMB303.9 million, RMB34.9 million and RMB76.0 million in 2023, 2024, 2025, and the three months ended March 31, 2025 and 2026, respectively, accounting for a relatively limited portion of our total revenue of 2.2%, 2.5%, 3.4%, 2.7% and 5.5% in the same periods, respectively.
Business · p. 152
To the extent that U.S. tariff regimes adversely affect our overseas customers’ operations, leading them to scale back or discontinue their use of our products, our overseas operations may be indirectly impacted.
Notably, revenue from outside of Chinese mainland increased from RMB59.8 million in 2024 to RMB390.8 million in 2025, and from RMB32.2 million in the three months ended March 31, 2025 to RMB168.4 million in the same period in 2026, primarily attributable to the growth in demand from overseas customers.
Summary · p. 8
Consistent with this trend, starting from 2025, we have begun exporting to additional overseas markets, including Singapore and Malaysia, which has further diversified the geographical distribution of our revenue outside of the Chinese mainland.
In contrast, power supply products originating from the PRC generally face a materially higher aggregate U.S. tariff rate at 35%.
Business · p. 163
In 2023, 2024, 2025 and the three months ended March 31, 2026, our revenue directly derived from U.S. customers amounted to RMB1.1 million, RMB8.7 million, RMB12.7 million and RMB0.2 million, which accounted for 0.4%, 1.6%, 1.2% and 0.1% of our total revenue in the respective periods.
Business · p. 163
The responsibility for paying any U.S. tariffs falls on our customers in the U.S. and none of our existing contracts with customers contain provisions that require us to adjust our prices in the event of increased tariff costs.
In 2023, 2024, 2025 and the three months ended March 31, 2026, our revenue generated from the U.S. amounted to RMB1,117.4 million, RMB1,319.5 million, RMB979.9 million and RMB248.2 million, accounting for 5.5%, 5.9%, 4.0% and 4.0% of our total revenue for the respective years/periods.
Business · p. 165
Our products from Vietnam and China are exempted from such reciprocal tariff under the Clarification of Exceptions Under Executive Order 14257 of April 2, 2025 (as amended) and therefore the applicable tariff rate is 0%.
Business · p. 165
Given the global availability of these resources, we are well-positioned to dynamically shift production orders across multiple geographies based on evolving trade conditions and cost considerations.
To a lesser extent, we also sold products to customers in South Korea, Singapore, Thailand and Japan.
Business · p. 187
During the Track Record Period, we incurred tariff costs of RMB0.8 million, RMB0.8 million, RMB1.0 million and RMB0.3 million in 2023, 2024, 2025 and the four months ended April 30, 2026, respectively.
Business · p. 187
During the Track Record Period and up to the Latest Practicable Date, we had not experienced any material adverse change in our revenue or financial condition as a result of the relevant additional tariffs.
The table below sets forth our revenue by the region of the place of registration of counter-parties to our sales contract during the Track Record Period:
Business · p. 163
Within our overseas markets, the majority of our revenue was generated from Hong Kong, as Hong Kong is a popular delivery hub for the semiconductor industry.