In 2022, 2023 and 2024, our material costs were RMB58.3 million, RMB51.9 million, and RMB69.8 million, respectively, representing 38.9%, 33.2%, and 36.3%, respectively, of our cost of sales during the same year.
Financial Information · p. 328
Our raw materials primarily include protected amino acid, whose price remained relatively stable in 2021 and 2022, and experienced a slight decline in the second half of 2023.
Financial Information · p. 328
During the Track Record Period and up to the Latest Practicable Date, we did not experience any material fluctuations of raw material prices.
Cost of raw materials was the most significant component of our cost of sales during the Track Record Period, amounting to RMB1,500.4 million, RMB3,371.4 million and RMB3,725.1 million, respectively, accounting for approximately 78.9%, 88.8% and 87.9% of our total cost of sales in 2022, 2023 and 2024, respectively.
Financial Information · p. 363
In 2022, 2023 and 2024, our average gold procurement price was RMB347.6/g, RMB401.0/g and RMB487.5/g (exclusive of value-added tax), which was in line with the market prevailing prices.
Financial Information · p. 364
Instead of employing common financial hedging strategies, we manage the volatility of raw material prices through careful management of production and sales cycles.
For the years ended December 31, 2022 and 2023 and 2024, our costs of raw materials and consumables were RMB11,758.4 million, RMB13,115.1 million and RMB14,979.8 million, respectively, accounting for 74.0%, 73.6% and 73.7% of our total cost of revenue during the respective periods.
Business · p. 215
we implement a comprehensive risk management strategy to mitigate the impact of such fluctuations, which primarily involves two independent approaches: (i) incorporating a raw material price linkage mechanism in our contracts with both customers and suppliers, and (ii) employing futures hedging.
Business · p. 215
In addition, we mitigate raw material price risks by utilizing futures hedging to lock in prices for raw materials, thereby offsetting any increases in the bulk commodity costs of copper and aluminium.
For the years ended December 31, 2022, 2023 and 2024, cost of pharmaceuticals represented the largest component of our cost of sales, accounting for 37.3%, 34.7% and 39.1%, respectively, of our revenue for the same years, respectively.
Financial Information · p. 502
We expect that our cost of pharmaceuticals as well as staff cost to continue to be our most significant costs and expenses going forward, particularly in light of the continued expansion and ramping up of certain of our self-owned hospitals.
Financial Information · p. 503
in terms of medical consumables, we have also conducted centralized procurement through (i) collecting the medical consumables demands of our In-network Hospitals first and obtaining lower unit prices subsequently in the negotiation with the corresponding suppliers of such medical consumables when our total quantities are large enough, benefiting from economies of scale
In particular, the prices of key raw materials, such as soybeans and sugar, are subject to volatility due to market supply and demand, climate, environmental conditions, commodity price fluctuations, currency fluctuations, changes in governmental policies and natural disasters.
Financial Information · p. 272
Other measures to mitigate the impact of price fluctuations include maintaining diversified suppliers, adopting a centralized procurement system to leverage our scale of procurement and enhance our bargaining power over suppliers, and leveraging our established brand reputation and market position and advantages from economies of scale, to negotiate more favorable terms.
The cost of raw materials in relation to our production amounted to RMB250.9 million, RMB217.5 million and RMB212.1 million for FY2022, FY2023 and FY2024, respectively, and accounted for 82.7%, 82.6% and 84.6% of our total cost of sales for FY2022, FY2023 and FY2024, respectively.
Financial Information · p. 325
We cannot assure that we can fully pass the cost of increase in raw materials onto our customers.
Financial Information · p. 325
For illustrative purpose only, the following sensitivity analysis illustrates the impact of hypothetical fluctuations of our cost of raw materials in relation to our production on our profit before income tax during the Track Record Period.
During the Track Record Period, the cost of raw materials and goods used accounted for approximately 57.0%, 47.6% and 56.6% of our total cost of sales, respectively.
Financial Information · p. 298
We did not adopt hedging policies or other alternative price controls in respect of the fluctuations in the prices of raw materials, sucralose or glycine we procured from our suppliers during the Track Record Period and up to the Latest Practicable Date, as we have adopted a series of measures to improve our resilience to such price fluctuations.
For each year of the Track Record Period, raw material costs associated with our paper packaging business amounted to RMB1,309.9 million, RMB1,326.4 million and RMB1,312.5 million, representing 77.9%, 77.9% and 76.1% of our total cost of sales of our paper packaging business, respectively.
Financial Information · p. 331
During the Track Record Period, in general, we were able to pass on most of the changes in raw paper prices to our enterprise customers and our gross profit margins had not been materially adversely affected by the fluctuation of raw paper prices during the Track Record Period.
Financial Information · p. 331
A sensitivity analysis on the fluctuation of the raw paper costs included in our cost of sales during the Track Record Period is set forth below, which illustrates the hypothetical effects on our gross profit with 5%, 10% and 15% increase or decrease in raw paper costs:
In 2022, 2023 and 2024, our direct material costs were RMB226.7 billion, RMB255.7 billion and RMB202.7 billion, respectively, accounting for 83.8%, 78.9% and 74.1% of cost of sales in the same period, respectively.
Business · p. 198
Due to factors such as fluctuations in material prices, changes in market supply and demand dynamics, and technological advancements, our procurement prices and quantities may vary.
Business · p. 203
To mitigate risks related to raw material prices and supply, we have established a monitoring system to promptly track supply and demand as well as price changes of key raw materials.
In 2022, 2023 and 2024, our raw materials and consumables used amounted to RMB862.3 million, RMB1,205.2 million and RMB1,192.9 million, respectively, representing 36.3%, 33.6% and 31.1% of our revenue for the respective periods.
Financial Information · p. 265
We also implement certain measures to control our purchase costs, such as (i) integrating multiple supply sources in local, domestic and global markets to achieve cost optimization, (ii) entering into framework agreements with certain suppliers to secure sufficient supplies at agreed price and (iii) stocking certain ingredients according to market conditions and sales records.
Business · p. 195
We have conducted sensitivity analysis of the impact on our results of operations during the Track Record Period from hypothetical fluctuations in the food ingredient prices.
In particular, the procurement costs for ingredients and other raw materials consists of the largest component of our cost of sales, accounting for 79.0%, 79.9% and 82.0% of our total cost of sales in 2022, 2023 and 2024, respectively.
Financial Information · p. 251
The market prices of raw materials we mainly use, including tea, fruit and dairy products, fluctuated in the past and may fluctuate in the future.
Financial Information · p. 251
The following sensitivity analysis illustrates the effects of hypothetical fluctuation in our average procurement price of ingredients and other raw materials on our gross profit for the periods indicated, assuming all other factors affecting our profitability had remained unchanged.
The cost of raw materials amounted to RMB8,904.6 million, RMB13,640.3 million and RMB7,952.1 million in 2022, 2023 and 2024, respectively, accounting for 90.2%, 80.6% and 79.4% of our total cost of sales in the respective years.
Financial Information · p. 371
Among various types of PV cell components, silicon wafers are the largest cost component, typically accounting for around 60% of the total cost, and silver paste is the second largest component.
Business · p. 273
We have managed the impact of raw material price fluctuations and maintained our margins by diversifying our supplier base and negotiating long-term contracts with fixed prices or ceilings.
We pre-stocked LFP batteries as their price surged in 2022, resulting in a relatively higher average procurement cost of LFP batteries during the Track Record Period.
Summary · p. 21
Our cost of LFP batteries increased from RMB141.3 million in 2022 to RMB163.2 million in 2023 and RMB229.8 million in 2024.
Summary · p. 21
In 2022, 2023 and 2024, our costs of raw materials and components were RMB307.1 million, RMB399.1 million and RMB536.5 million, respectively, representing 87.3%, 87.8% and 89.6% of the total cost of sales in the corresponding periods.
In 2021, 2022, 2023 and 2024, cost of raw materials accounted for 77.7%, 71.7%, 73.8% and 74.6% of our total cost of sales, respectively, and 76.1%, 78.0%, 70.1%, and 63.7% of our revenue, respectively.
Business · p. 327
To the extent we cannot pass along the changes in raw material cost to our customers, our profit margin would also be affected by the changes in raw material price.
Financial Information · p. 405
We also typically include price adjustment mechanisms, which allow us to adjust pricing within a pre-agreed range under certain circumstances, such as drastic fluctuations in raw material prices.
Direct materials costs represent the largest portion of our cost of sales, accounting for approximately 86.4%, 88.1%, 89.2%, 88.1% and 89.4% during the Track Record Period, respectively.
Financial Information · p. 275
Meanwhile, the average purchase cost per tonne of fluff pulp fluctuated by approximately, 40.4%, 26.7% and 1.8% for the same periods.
Financial Information · p. 275
The table below presents a sensitivity analysis illustrating the impact of changes in the costs of two key raw materials, nonwoven fabrics and fluff pulp on our profit before tax during the Track Record Period.
The cost of raw materials amounted to US$93.0 million, US$279.1 million, US$390.6 million and US$297.7 million for FY2021, FY2022, FY2023 and 9M2024, respectively, and accounted for 72.6%, 78.7%, 81.4% and 81.1% of our total cost of sales for FY2021, FY2022, FY2023 and 9M2024, respectively.
Financial Information · p. 318
Therefore, we can manage the fluctuations in raw material prices by adjusting our pricing and passing the costs to our customers.
Historically, international gold prices have experienced significant volatility.
Financial Information · p. 471
During the Track Record Period, we obtained short-term financing via gold leasing contracts. Meanwhile, we entered into futures contracts to hedge the risk of gold price fluctuations.
Financial Information · p. 472
Furthermore, during the Track Record Period, we entered into hedging transactions, such as gold forward sales contracts and forward exchange contracts, to secure our revenue in view of the volatility in gold prices.
Some of the raw materials we procure, such as sugar and coffee beans, are inherently susceptible to price fluctuations. However, we do not expect such price fluctuations to have a material and adverse impact on our and our franchisees’ operations with the above measures adopted.
Business · p. 227
To control our procurement costs, we primarily employ the following measures: (i) integrating a variety of supply resources from both domestic and global suppliers, (ii) extending our global procurement network to the origins of raw materials to eliminate intermediary costs, (iii) establishing long-term partnerships with upstream suppliers, and (iv) arranging agreed-upon prices or price ranges with certain suppliers in advance to secure sufficient supplies at reasonable costs.
Business · p. 227
While the franchise agreements do not have terms in relation to guarantee of franchisees’ profits in the event of increase in raw material prices, we generally do not pass short-term increase in costs onto our franchisees.
They amounted to approximately RMB1,084.9 million, RMB1,339.6 million, RMB1,759.1 million and RMB807.8 million, representing approximately 90.5%, 90.8%, 90.8% and 90.3% of our total cost of sales for FY2021, FY2022, FY2023 and 6M2024, respectively.
Financial Information · p. 402
Since our main raw materials are products of crude oil, the market prices of our main raw materials may be affected by fluctuations in crude oil prices.
Business · p. 263
For demonstration purposes, the following sensitivity analysis illustrates the impacts of hypothetical fluctuations in our cost of raw materials on our profit before tax during the Track Record Period, holding all other variables constant.
Materials expense is the largest component of our cost of sales, which represented 89.5%, 88.2%, 82.4%, 80.3% and 86.6% of our total cost of sales for the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2023 and 2024, respectively.
Financial Information · p. 313
commencing commercial production in June 2021, which enabled us to produce certain products in-house, which is more cost-effective compared to procuring them from OEMs,