Hong Kong IPO disclosure precedents · 11 companies, 11 items
Adverse impact on post-track-record performance caused by external events such as wars, geopolitical tension, or deterioration in specific overseas markets, affecting revenue, costs and margins.
Since May 2025, we observed a negative impact on our net revenues from the U.S. market in the remainder of 2025.
Summary · p. 22
Specifically, we experienced a year-over-year decline in business activity in the Middle East, particularly during the initial few months, which is expected to result in a low single-digit percentage point impact on our net revenues in 2026.
Summary · p. 24
The year-over-year growth rate of our net revenues for the first half of 2026 is expected to be generally in line with that of the first quarter of 2026, while our operating margin for the first half of 2026 is expected to be slightly lower than that of the first quarter of 2026.
Since February 2026, the price of LPG (primarily propane and butane), one of our key raw materials, has been on a continuous upward trend, which is largely correlated with crude oil prices.
Summary · p. 12
Comparing the April 2026 Contract Price (CP) with the same period of last year, the price of propane increased by USD135.0 per ton, representing a year-on-year rise of 22.0%, while butane rose by USD195.0 per ton, equivalent to a year-on-year increase of 32.2%.
Business · p. 154
Taking the above factors into comprehensive consideration, our Company is of the view that the volatility in LPG prices will not cause any material adverse impact on our overall gross profit margin.
At the same time, we do not expect recent reports concerning Customer B, regarding, among other things, its plan to reduce its workforce in certain overseas markets and dispose of certain production lines, to have a material adverse impact on the Group.
Business · p. 153
Based on the Company's assessment, our sales to Customer B are driven primarily by Customer B's demand for our products and our ability to meet its specifications and delivery requirements, rather than Customer B's internal headcount or the continued operation of any particular production line.
Business · p. 153
Furthermore, revenue from Customer B amounted to RMB2,521.1 million, RMB3,262.3 million and RMB2,809.0 million in 2023, 2024 and 2025, respectively, and we did not experience material disruption in fulfilling Customer B's orders.
In January 2026, a rocket carrying two of our experimental satellites experienced a launch failure due to rocket technical issues, resulting in the loss of both satellites.
Summary · p. 14
As a result, the loss of the two satellites was not covered by insurance and we do not expect to receive compensation from the launch service provider in connection with this incident.
Summary · p. 14
As (i) both satellites were experimental in nature and the launch was conducted as a joint experimental verification, (ii) the costs and contract value of the satellites involved were relatively limited, and (iii) our maximum payment obligation in respect of the delivery failure is contractually capped at a fixed amount, our Directors are of the view that this incident is not considered to have had a material adverse impact on our customer relationship, business, financial condition or results of operations.
Over the same period, the industry average selling price of pigs decreased by 15.9%, from RMB13.8 per kilogram in 2025 to an average selling price of RMB11.6 per kilogram for the three months ended March 31, 2026, primarily due to expanded production capacity in the industry.
Summary · p. 13
According to Frost & Sullivan, the industry average selling price of yellow-feather broilers increased by 2.3%, from RMB12.8 per kilogram in 2025 to an average selling price of RMB13.1 per kilogram for the three months ended March 31, 2026, mainly driven by increased demand for chicken.
According to Frost & Sullivan, China’s automobile industry experienced a decline in production and sales in the early 2026, and growth in the new energy vehicle market also slowed.
Summary · p. 12
As a result, our operating results for the early part of 2026 were subject to temporary fluctuations.
The increase in gold price had a short-term impact on end consumer sentiment, leading to a wait-and-see attitude among certain end consumers.
Summary · p. 14
Despite the continued increase in the price of gold, our business operations remained relatively stable primarily because (i) gold jewelry consumption has become increasingly popular, with end consumers increasingly recognizing the investment value of gold products; (ii) we have continued to experience growth in online sales channels, driven by the growing popularity of online jewelry shopping; and (iii) we continue to introduce new products catering to evolving consumer demands.
Summary · p. 14
Our Directors have confirmed that, up to the date of this prospectus, there has been no material adverse change in our financial or trading position or prospects since December 31, 2024, being the end date of our latest consolidated financial statements, and there has been no event since December 31, 2024 that would materially affect the information shown in the Accountants’ Report set out in Appendix I to this prospectus.
As at the Latest Practicable Date, as advised by our Indonesia Legal Advisers, the Government of Indonesia has issued Government Regulation No. 8 of 2025, which requires exporters in certain sectors, including non-oil and gas mining, plantations, forestry, and fisheries, to retain 100% of their foreign exchange earnings (DHE) in Indonesia for at least one year.
Summary · p. 15
If alumina is later confirmed to be included in the forthcoming Ministry of Finance regulations, it may likely impact our liquidity, foreign exchange exposure, and financial flexibility of our Group. We will assess and implement appropriate measures in response to any confirmed regulatory changes.
Since late September 2024, our lithium-mica concentrate provider has suspended its supply to us considering lithium carbonate market conditions.
Summary · p. 29
In the first half of 2024, we processed approximately 220,000 tons of lithium-mica concentrate from the lithium-mica concentrate provider, representing approximately RMB162.2 million in value with which our facility produced 6,495.0 tons of lithium carbonate.
Summary · p. 29
These agreements also provide that if the supplier cannot meet our full production needs and does not allow us to source from third parties, or if an alternative cooperation model cannot be agreed upon, the supplier shall compensate us for economic losses due to idle capacity.
In 2022 and the six months ended June 30, 2023, our revenue from social e-commerce platforms in Indonesia represented approximately 4% and 6% of our Group’s revenue, respectively, which remained immaterial to the Group.
Summary · p. 24
For example, according to a public statement by TikTok, TikTok has halted its facilitation of e-commerce transactions in Indonesia since early October 2023 and would seek to cooperate with the local government authorities on a path forward.
Summary · p. 24
We believe that although MoTR 31/2023 may have an impact on our customer composition in Indonesia in the near term, this new regulation will not have a material adverse effect on our business operations and financial performance in the long term.