During the Track Record Period, revenue attributable to exports to the United States accounted for less than 1% of our total revenue.
Business · p. 147
However, there can be no assurance that our business will not be adversely affected by future changes in U.S. tariff policies or other geopolitical developments, including potential indirect impacts on our supply chain, customers, or broader market conditions.
We generate a substantial majority of our revenue from destination management services across Europe, Asia and the Americas.
Financial Information · p. 180
Our business and financial performance depend significantly on travel conditions in our major destinations and source markets.
Financial Information · p. 180
In addition, our results of operations vary with the relative attractiveness of individual destinations, which is influenced by factors such as exchange rates, cost and availability of accommodation and transportation, the ease of obtaining visas, and the overall appeal of a destination to travelers.
Our revenue generated from North America amounted to RMB1,697.9 million, RMB1,989.8 million and RMB2,553.9 million in 2023, 2024 and 2025, respectively, representing 52.3%, 50.7% and 52.9% of our revenue from contracts with customers for the corresponding periods.
Financial Information · p. 157
For example, our sales to the United States amounted to RMB 1,399.8 million, RMB 1,709.5 million and RMB 2,291.6 million in 2023, 2024 and 2025, respectively, accounting for 43.1%, 43.5% and 47.4% of the our total sales revenue in the respective periods.
Business · p. 153
To effectively engage overseas consumers, we will continue to develop both direct sales and distributorship. For direct sales, we intend to collaborate with major global e-commerce platforms such as Amazon.
since the imposition of the Tariffs, none of our customers had canceled their orders with us, nor had we experienced any material adverse changes in our order volume, product price, customer payment or logistics arrangements due to the U.S. Tariffs issue, no tariffs have been passed on to customers and our Directors do not expect the Tariffs to have any direct or indirect material adverse impact on our business operations or financial performance.
Business · p. 142
our raw materials and equipment were primarily sourced from suppliers in China and other countries other than the U.S., with only a small portion of procurements involving U.S.-origin products (including raw materials, equipment and software), collectively accounting for 21.7%, 16.7% and 11.8% of our total cost of sales in 2023, 2024 and 2025;
Business · p. 142
In the event that we are unable to continue sourcing particular U.S.-origin equipment or software due to changes in trade restrictions policies, we have identified alternative suppliers, including non-U.S. sources and domestic suppliers.
During the Track Record Period, the aggregate revenue from our exports to the United States represents only 6.35% of our total revenue.
Business · p. 178
During the Track Record Period and as of the Latest Practicable Date, U.S. Section 301 Tariffs targeted goods of Chinese origin and did not apply to our products manufactured by our production facility in Thailand.
Business · p. 178
Overall, the U.S. tariffs and trade restrictions during the Track Record Period did not cause any material adverse impact on us.
During the Track Record Period and up to the Latest Practicable Date, international trade frictions, including various tariff, international trade policies, sanctions and other export and import restrictions, did not have a material impact on our business operations and financial performance.
Business · p. 160
For the years ended December 31, 2023, 2024 and 2025, our overseas sales accounted for 5.4%, 3.4% and 10.3% of total revenue for the same respective year.
Business · p. 161
In 2025, revenue generated from Europe increased significantly, with its proportion of our total overseas revenue increasing from 5.5% and 5.9% in 2023 and 2024 to 42.0% in 2025.
During the Track Record Period, our overseas revenue increased significantly from RMB46.9 million in 2023 to RMB92.2 million in 2024, and further to RMB192.0 million in 2025, representing 3.6%, 5.9% and 9.2% of our total revenue for each year, respectively.
Financial Information · p. 212
Pursuant to our sales contracts for export sales to external customers, our customers are responsible for import customs clearance and bear the applicable import duties, tariffs and customs charges.
Business · p. 166
Since the U.S. tariff announcement in February 2025 and up to the Latest Practicable Date, we had not experienced any material cancellations of orders or material adverse impact on our revenue, gross profit margin or overall results of operations attributable to such U.S. tariff developments.
As we had not engaged in direct exports to the United States and have no plans to commence such exports in the future, changes in U.S. tariff policies have had minimal direct impact on our business operations and financial performance during the Track Record Period and up to the Latest Practicable Date.
Business · p. 142
Since 2025, the Group has not made any additional procurement of U.S.-origin equipment and therefore has not incurred additional tariff costs or experienced any material adverse impact as a result of the changes in U.S.-China tariff policies.
Business · p. 142
Therefore, our International Sanctions Counsel is of the view that the potential impact of future changes in U.S. tariff policies on our business operations, financial performance and long-term development outlook will remain limited.
Outside the PRC, we are pursuing a measured international development plan, which includes (i) the export of finished products, (ii) the export of bulk substances for local filling and finishing by overseas partners, and (iii) the potential out-licensing of certain product candidates.
Business · p. 132
Subsequently, in January 2026, we officially received the Certificate of GMP Compliance from the Philippine Food and Drug Administration for our Adsorbed Tetanus Vaccine (for both pre-filled syringes and vials formulations).
Business · p. 134
Following product quality verification, we received a commercial order for 500 liters from the same partner in October 2025.
In terms of sales, during the Track Record Period, revenue generated from the U.S. amounted approximately RMB79.0 million, RMB90.0 million and RMB101.2 million, representing 11.8%, 11.6% and 11.3% of our total revenue in 2023, 2024 and 2025, respectively.
Business · p. 170
The total amount of tariffs incurred on sales to the U.S. in 2023, 2024, and 2025 were approximately USD1.5 million, USD1.3 million, and USD1.0 million, respectively.
Business · p. 170
Considering that (i) there are no material sales decline for our U.S. sales since the implementation and revision of rounds of U.S. tariffs starting February 2025; (ii) we had not experienced any material changes in our order volume, product price, customer payment or logistics arrangements attributable to the U.S. tariff measures; (iii) we did not rely on any U.S.-originated technologies or raw materials for our operations and we did not procure any raw materials from the U.S.; (iv) we do not expect our sales to the U.S. to increase significantly and does not have plan to devote significant resources to expand our sales in the U.S.; and (v) our products exported to the U.S. have increasingly been manufactured by our production facility in Penang, our Directors believe that the recent tariffs have had no material or immediate direct or indirect impact on our supply chain, production, operations and financial performance during the Track Record Period and up to the Latest Practicable Date.
Our Directors are of the view that the tariffs have not had any material adverse impact on our business, results of operations or financial condition on the following bases: (i) during the Track Record Period, our revenue from sales of Chinese products to the U.S. was US$1,566 million, US$1,408 million and US$703 million, accounting for 4.78%, 3.77% and 1.49% of our total revenue in 2023, 2024 and 2025, respectively; (ii) with respect to such sales, the U.S. customers buying our products were the importers of record and bore the tariffs; (iii) our major U.S. customers are not entitled to seek reimbursement of U.S. tariffs they paid pursuant to the sales agreements, and during the Track Record Period and up to the Latest Practicable Date, none of our U.S. customers had requested us to reimburse them for the U.S. tariffs they paid; (iv) during the Track Record Period and up to the Latest Practicable Date, none of our U.S. customers had requested a product return as a result of the additional U.S. tariffs; and (v) during the Track Record Period and up to the Latest Practicable Date, none of our customers had requested to cancel orders, suspended delivery, or re-negotiated price, order quantity, payment or other material terms of the transactions as a result of the additional U.S. tariffs.
Summary · p. 9
During the Track Record Period, 78.3% of our sales to the U.S. were from products manufactured in Vietnam.
Summary · p. 9
These tariffs (between 20% and 23.4% depending upon product type) have applied to our Vietnamese products sold to the U.S. from August 7, 2025 to date.
Our AI-led clinic in Saudi Arabia was established in May 2025.
Business · p. 134
We chose to launch this project in Saudi Arabia because of its comparatively favorable social acceptance of AI-driven autonomous solutions and existing local partnerships, which allow rapid product deployment and testing, thereby positioning us for expansion into other markets.
Business · p. 134
However, the commercialization of our L4-stage solution depends on various factors such as the social acceptance, geopolitical developments, and regulatory environment in the markets where we operate.
In 2023, 2024 and 2025, our overseas revenue was RMB38.2 million, RMB29.2 million and RMB46.6 million, respectively, accounting for 14.3%, 9.0% and 8.9% of our revenue for the same years, respectively.
Business · p. 158
Our Directors are of the view that the tariff measures across the U.S., the European Union and China do not have a material adverse impact on our business operations and financial condition, primarily because (1) our business operates through localized manufacturing and production activities in China, which are insulated from tariff-related cost pressures; (2) we had limited revenue generated from overseas markets during the Track Record Period, accounting for 14.3%, 9.0% and 8.9% of our total revenue in 2023, 2024 and 2025, respectively, where our revenue generated from the United States was RMB0.3 million, RMB0.1 million and RMB1.2 million in the same years, respectively, accounting for 0.1%, 0.02% and 0.2% of our total revenue in the same years, respectively; and (3) our supply chain minimizes cross-border exposure as most of our suppliers are China-based suppliers such that we do not rely on overseas supply chains.
Business · p. 182
approximately 99% of our overseas revenue are conducted under trade terms where customers bear the responsibility for transportation, customs clearance and applicable tariffs and duties, including commonly used Incoterms such as EXW (Ex Works) or FOB (Free on Board) and other similar arrangements, with only approximately 1% of our export transactions conducted under DDP (Delivered Duty Paid) terms, under which we are responsible for tariffs and duties.
Revenue generated from sales to overseas markets accounted for 1.5% and 5.5% of our total revenue in 2024 and 2025, respectively.
Summary · p. 3
Overseas revenue increased from RMB222.5 million in 2024 to RMB1,397.8 million in 2025.
Business · p. 152
We expect the rapid growth in demand for new energy vehicles in overseas markets, together with their relatively higher margin profile, to contribute incremental sales volume and enhance the quality of our revenue while improving our gross margin.
During the Track Record Period, the aggregate contract value of our solutions adopted by overseas users amounted to RMB93.8 million.
Summary · p. 3
In addition, backed by the proven track record of our domestic landmark projects and our competitive cost-performance advantage, we are confident that we are well-positioned to rapidly expand into markets along the Belt and Road Initiative, as well as regions including South America and Africa.
Summary · p. 3
During the Track Record Period, our products were also successfully deployed in overseas countries, yet no overseas revenue was recognized during the same period.
Beyond the PRC, we have established a core operational base in Iraq and expanded our business to key oil and gas producing regions along the Belt and Road Initiative, including the Middle East, Africa and Central Asia.
Summary · p. 1
In 2023, 2024 and 2025, our revenue generated from the PRC represents 84.0%, 83.6% and 79.7% of our total revenue for the same periods, respectively.
Business · p. 101
We are also expanding our business operations overseas, with a particular focus on Iraq and other countries in Africa.
To efficiently serve our global customers, we have established four production and R&D bases, being the largest number among industry players worldwide as of the Latest Practicable Date according to CIC, together with multiple offices across China and overseas, which provide comprehensive customer service targeting markets in Europe, America, Asia, among others.
Summary · p. 4
For the years ended December 31, 2023, 2024 and 2025, our revenue generated from Vietnam amounted to RMB519.7 million, RMB417.3 million and RMB546.4 million, respectively, representing 50.7%, 36.2% and 31.9% of our total revenue, respectively; and gross profit margin for sales to Vietnam was 15.0%, 18.8% and 16.1%, respectively.
Business · p. 158
Furthermore, products manufactured at our Vietnam production base are primarily sold to the local Vietnamese market, with only a negligible portion sold to China.
As an export-oriented business, we derived a significant majority of our revenue from overseas markets, which amounted to RMB483.6 million, RMB793.7 million, and RMB1,120.3 million in 2023, 2024 and 2025, respectively, accounting for 79.8%, 89.2%, and 89.4% of our total revenue during the same periods.
Financial Information · p. 191
To meet the needs of our global customers, we operate dual-country production facilities in the PRC and Malaysia.
Summary · p. 1
In addition, our global manufacturing setup enables us to achieve flexible capacity allocation, enhance supply chain resilience and respond effectively to evolving global trade dynamics.
For the years ended December 31, 2023, 2024 and 2025, our revenue generated from Hong Kong and overseas accounted for 5.6%, 5.2% and 5.5% of our total revenue, respectively.
Business · p. 167
We also directly procure infant formula products from brand owners in Hong Kong, New Zealand and Australia under our general self-operated business, where the relevant import tariffs are paid by us and ultimately passed on to our downstream buyers.
During the Track Record Period, the cost of US-origin Components accounted for only approximately 0.7%, 0.4% and 0.3% of our total cost of sales for 2023, 2024 and 2025, respectively.
Business · p. 185
In 2023, the Group sold multimodal authentication modules to Japan, and in 2024, entered the Singapore market with in-vehicle driving safety products.
Business · p. 148
Furthermore, as we do not export and have no plans to export any goods from China to the United States, our U.S. legal counsel has advised that the tariffs imposed by the U.S. government on goods imported from China have minimal to no practical impact on our business operations.