Hong Kong IPO disclosure precedents · 188 companies, 188 items
Disclosures that raw materials constitute the largest component of cost of sales and that commodity price fluctuations drive results, including quantified cost-share analyses and cases arguing limited exposure due to low purchase share.
In 2023, 2024 and 2025, raw material costs accounted for approximately 68.8%, 76.6%, and 81.9% of our total cost of sales, respectively.
Financial Information · p. 190
During the Track Period and up to the Latest Practicable Date, we occasionally experienced supply shortages of certain key raw materials, such as optical chips.
Financial Information · p. 211
We also track market conditions and pricing trends of major raw materials to support procurement planning and cost control.
Our cost of raw material represents our major component of cost of sales, and accounted for 66.5%, 62.7% and 61.3% of our cost of sales for the years ended 31 December 2023, 2024 and 2025, respectively.
Financial Information · p. 220
Our profit margins and cost of sales may be directly and materially affected by the price fluctuations of the cost of raw materials.
Financial Information · p. 220
During the first quarter of 2026, along with the increase in petroleum price, the market price of unsaturated polyester resin, our key raw material, rose by around 30%, and the market price of glass fiber rolls rose by around 20%.
During the Track Record Period, we incurred gross losses mainly due to our market-centric pricing strategies, high raw material costs and significant initial depreciation from new production lines.
Summary · p. 15
As an outcome of the foregoing measures, the unit material cost of our SiC discrete device products decreased by 34.5% during the Track Record Period, while the unit material cost of our automotive SiC power module products cumulatively declined by 44.0% since the start of their mass production in 2023.
Business · p. 198
according to Frost & Sullivan, the average unit price of key raw materials — 6-inch and 8-inch SiC epitaxial wafers — is expected to decline by approximately 30% from 2025 to 2027, creating further room for cost reduction in our products.
The prices of raw materials and components, may fluctuate from time to time.
Financial Information · p. 193
To address price fluctuations in raw materials, we have established effective cost control mechanisms, including: (i) cost-sharing mechanism, pursuant to which we negotiate with suppliers to jointly shoulder the impact of price volatility; (ii) cost pass-through mechanism, whereby the purchase prices of certain materials are adjusted periodically based on average market prices as agreed with our suppliers; and (iii) internal optimization mechanism, such as continuously refining our production processes and utilizing alternative raw materials to mitigate the impact of rising procurement costs on our gross profit margins.
Business · p. 160
More specifically, we adopt a dual-location supply strategy for major materials, including semiconductors, in Chinese Mainland and around the world, including Thailand and India, enabling us to switch supply regions flexibly to respond to various emergencies.
In 2023, 2024 and 2025, our raw material costs accounted for 86.0%, 82.4% and 90.9% of our cost of sales, respectively, and LFP battery cells accounted for the majority of our raw material costs.
Financial Information · p. 177
The prices of LFP battery cells, which are closely tied to lithium carbonate prices, have historically experienced significant volatility due to changes in global supply and demand dynamics, capacity additions and inventory levels, and fluctuated significantly during the Track Record Period, which had a material impact on our average selling prices and profitability.
Financial Information · p. 177
To mitigate the impact of raw material price volatility and supply risks, we have adopted various measures, including optimizing our procurement planning and inventory management based on market trends and production schedules and incorporating price adjustment mechanisms in our contracts.
As we operate with a fabless model in relation to GNSS chips and modules, we are affected by the fluctuations in the purchase price of wafers.
Business · p. 173
In addition, we have adopted long-term procurement planning and, where practicable, entered into selective fixed-price arrangements with certain suppliers to reduce the impact of raw material price volatility.
Business · p. 173
We also adjust our product portfolio and strengthen our pricing power with customers to partially offset cost-side pressure, leveraging our growing shipment scale and bargaining position in the supply chain.
For the three years ended December 31, 2023, 2024 and 2025, the cost of materials accounted for 60.0%, 61.0% and 55.3% of our total cost of sales, respectively.
Financial Information · p. 205
Correspondingly, our average procurement cost of resin fluctuated from approximately RMB4,030 per ton in 2023 to RMB3,820 per ton in 2024 (representing a 5.2% decrease), and further to RMB3,750 per ton in 2025 (representing a 1.8% decrease compared to 2024).
Financial Information · p. 206
However, in periods of sustained or rapid increases in raw-material prices, we may not always be able to fully pass through the increases to customers in a timely manner due to market competition, customer procurement cycles and contractual arrangements.
As raw material constitute a significant portion of our cost of sales, changes in the prices of our raw material, particularly, carbon source materials and solvent, may directly affect our production costs and gross profit margins.
Financial Information · p. 169
We are able to pass through raw material price fluctuations for certain products.
Financial Information · p. 169
To mitigate the impact of price volatility, we employ a dual-pronged procurement strategy.
Fluctuations in raw material and consumables costs and supply chain stability have a material impact on our cost of sales, as raw materials and consumables accounted for 87.8%, 87.9% and 89.4% of our cost of sales for the years ended December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 203
Our prepayments for materials and services increased from RMB1.9 million as of December 31, 2024 to RMB11.7 million as of December 31, 2025, partly due to the shortage of chips and increase in chip prices, in response to which we make advance payments to our suppliers to lock in supply for our three to six months of chip inventory needs amid chip shortages and price volatility.
Financial Information · p. 203
We have implemented several measures to mitigate these risks, including maintaining long-term relationships with multiple qualified suppliers, engaging new qualified suppliers and adopting flexible procurement strategies such as advanced bulk purchasing to secure stable supply and favorable pricing.
Feed represents the most critical procurement category for our aquaculture operations, as its formulation, quality and delivery efficiency have a direct and material impact on sturgeon survival rates and the consistency of our final products.
Business · p. 150
In 2023, 2024 and 2025, our cost of sales before fair value adjustments on biological assets amounted to RMB172.6 million, RMB225.8 million and RMB248.1 million, respectively, representing 29.9%, 33.7% and 32.3% of our total revenue for the corresponding year.
Financial Information · p. 190
We closely monitor price trends of raw materials and proactively manage our procurement costs by maintaining long-term and stable relationships with qualified suppliers, which helps mitigate the impact of raw material price fluctuations.
As a result, both the immunization success rate and plasma antibody titer level used for the production were relatively low in 2023, leading to relatively high costs in relation to horse plasma.
Summary · p. 10
Gross profit margin for Domestic Sales increased from 81.8% in 2023 to 84.3% in 2024, primarily due to the increase in average selling price of Human TAT for Domestic Sales, as well as lower cost of horse plasma driven by the recovery in the antibody titer level of horse plasma used for production in 2024.
Summary · p. 10
During the Track Record Period and up to the Latest Practicable Date, there have been no significant increases in the prices of our major raw materials, nor any fluctuations that materially and adversely affected our operations or gross profit margins.
Certain of the raw materials we procure, such as duck and goose down, are inherently susceptible to price fluctuations.
Business · p. 139
(ii) establishing long-term partnerships with key upstream suppliers, and (iii) negotiating fixed prices or price ranges in advance with certain suppliers to secure stable supplies at reasonable costs.
During the Track Record Period, raw material costs accounted for 80.2%, 79.0% and 79.0% of total cost of sales in 2023, 2024 and 2025, respectively, and 80.5% and 80.1% of total cost of sales in the three months ended March 31, 2025 and 2026, respectively.
Financial Information · p. 166
We also enter into procurement framework agreements when we consider market prices to be favorable, in order to lock in purchase prices and reduce the impact of volatility in the prices of certain raw materials.
Financial Information · p. 166
During the Track Record Period, we did not engage in any hedging activities in respect of raw material prices.
The prices of our principal raw materials, namely, nickel ingots and nickel beads, copper rods and silver sand, move in line with global metal market prices.
Business · p. 119
In circumstances where the processing fee per unit remains relatively stable, an increase in raw material prices may increase both revenue and cost of sales, and may result in a lower gross profit margin in percentage terms due to the higher revenue base.
Financial Information · p. 170
We have established a rigorous procurement process and supplier selection system for the materials required in our production.
During the Track Record Period, raw material costs was the largest component of our cost of sales with battery cells representing the largest single cost component.
Financial Information · p. 169
Because we adjust our selling prices taking into account our costs, our revenue is affected by fluctuations in raw material costs.
Financial Information · p. 169
We have implemented comprehensive supply chain management measures and maintained a diversified base of suppliers, which we believe will continue to enable us to maintain a stable supply chain to mitigate the risk of price fluctuations of key raw materials.
For the years ended December 31, 2023, 2024 and 2025, our cost of raw materials and consumables was RMB4,108.0 million, RMB3,209.3 million and RMB3,222.4 million, respectively, representing 80.9%, 72.3% and 71.1% of our total cost of sales for the same periods, respectively.
Business · p. 149
For example, our NdFeB product average selling price decreased from RMB432 thousand per ton in 2023 to RMB353 thousand per ton in 2024 mainly due to the rare earth market price declines in the same periods.
Financial Information · p. 200
We mitigate these risks through a number of measures including (i) cost-plus pricing with adjustment mechanisms (annual, semi-annual, quarterly, or monthly, varying by sector, e.g., more frequent in consumer electronics), enabling pass-through of cost changes, (ii) advanced technologies (e.g., grain boundary diffusion, targeted area diffusion, grain refinement) to reduce heavy rare earth usage, lowering exposure to scarcer, more volatile elements, (iii) safety inventory management to buffer drastic short-term raw material market price fluctuations, and (iv) supplier diversification (maintaining relationships with multiple rare earth providers to avoid concentration risks).
During the same periods, the market price of three-to-five-year-old cynomolgus monkeys decreased from RMB112,500 per head as of December 31, 2023 to RMB81,500 per head as of December 31, 2024, and then increased to RMB102,000 per head as of December 31, 2025.
Summary · p. 9
The fluctuation in such costs during the Track Record Period was largely in line with the number and market price of the NHPs used in our nonclinical study business.
Financial Information · p. 197
We have managed to control our cost of supplies by signing framework procurement agreements with our NHP research model suppliers to ensure a stable procurement price range for such research models as well as expanding our own NHP research model population.
Several factors beyond our control have a substantial impact on the prices of these materials, including fluctuations in market supply and demand, international trade policies and tariffs, transportation costs, and variations in currency exchange rates.
Financial Information · p. 199
We manage our costs through hedging measures, centralized procurement and supplier management.
Financial Information · p. 199
(iii) incorporating price adjustment clauses linked to market indices in supplier agreements to share price volatility risks; and (iv) exploring new technologies, processes, and alternative materials to achieve cost optimization through technical innovation.
During the Track Record Period, our raw materials cost, which was mainly attributable to copper, accounted for 83.5%, 86.0% and 87.5% of our total cost of sales in 2023, 2024 and 2025, respectively.
Financial Information · p. 188
Under our pricing mechanism, benchmark copper prices can be effectively passed through to our customers, which allows us to mitigate the direct impact of copper price fluctuations on our gross profit.
Financial Information · p. 188
As a result, price fluctuations did not have a significant impact on our operations during the Track Record Period.
Our contract price is based on our estimated project costs plus a profit margin at the time when we submit our tender for projects, but the actual costs of metal-based raw materials are determined when we make purchases from our suppliers, which are subject to market fluctuation.
Financial Information · p. 217
As our cost of sales primarily consists of raw material cost, any fluctuation in the cost of raw material, including any fluctuation in the cost of metal-based raw material, will affect our profitability.
Financial Information · p. 217
We also mitigate the impact of potential price increases by building long-term relationships with our suppliers, maintaining close communication and conducting secondary source evaluations.