Overall, the fluctuations in our gross profit margin for sales of RVs were primarily affected by the following factors: (i) high degree of customization of our RV owners which typically yields higher gross profit margin, (ii) the proportion of our retail sales of RVs through self-owned stores and JV stores attributable to the relatively higher retail prices compared to the wholesale prices for dealers, and (iii) fluctuations in shipping and handling expenses.
Business · p. 193
Our gross profit margin decreased from 16.7% in 2021 to 16.5% in 2022, primarily because cost of sales grew at a faster pace than revenue, driven by an increase in shipping and handling expenses amid COVID-19.
Summary · p. 17
More specifically, our gross profit margin for the Snowy River RVs decreased from 16.9% in 2021 to 15.8% in 2022, primarily due to an increase in shipping and handling expenses amid COVID-19.
We incurred significant procurement costs of raw materials and consumables under our cost of sales, which were RMB135.7 million, RMB206.3 million, RMB349.7 million, RMB122.7 million and RMB164.4 million in 2021, 2022 and 2023 and the six months ended June 30, 2023 and 2024, respectively, representing 77.5%, 73.8%, 73.4%, 74.9% and 69.5% of our total revenue in the same periods, respectively.
Business · p. 288
For example, the purchase price of the integrated circuits that we used for our intelligent driving solutions decreased by approximately 14% and 10% in 2023 and the first half of 2024, respectively, due to our increasing procurement from the relevant supplier.
Business · p. 299
We also actively monitor the inventory levels of our raw materials and we will adjust our stock quantities accordingly to mitigate potential risks in raw material price fluctuations.
Food ingredient prices have a direct impact on our raw materials and consumables used, which in turn affects our profitability.
Financial Information · p. 261
The table below sets forth the sensitivity analysis of the impact on our results of operations during the Track Record Period arising from fluctuations in the price of raw materials and consumables used.
Business · p. 195
As a result, we plan to continue our price management efforts to control food ingredient procurement costs for our restaurants through the enhancement of our key strategies such as (i) adopting a multi-supplier approach to remain nimble, (ii) negotiating long-term contracts with suppliers, (iii) leveraging our economies of scale and centralized procurement arrangements to strengthen our bargaining power over suppliers, (iv) using data analysis to monitor price fluctuations in public markets and
The material costs of gold for the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024 constituted 99.0%, 99.2%, 99.5% and 99.6% of our material cost during the respective year/period.
Financial Information · p. 438
We use gold loans and Au (T+D) contracts to hedge against the financial impact of gold price fluctuations.
Financial Information · p. 438
For the six months ended June 30, 2024, we recorded an increase in net realised loss on Au (T+D) contracts in the sum of RMB140.5 million, representing a period-to-period increase of approximately 88.9% when compared to the corresponding period in 2023.
The selling price of carbon fiber, which is one of the key raw materials we use to manufacture our vehicle-mounted high-pressure hydrogen supply systems and related products, surged in 2021 due to global supply constraints as a result of export controls implemented by a number of foreign governments.
Financial Information · p. 411
For example, we started to purchase carbon fiber from several domestic suppliers to control costs in 2019 and achieved full localization substitution in 2023.
Business · p. 338
We expect that we are able to ensure the stable supply and effectively control the cost of carbon fiber through the following measures, including (i) improving the winding process of carbon fiber to reduce the amount of carbon fiber used per unit of product; and (ii) launching new products and expanding our product portfolio to include equipment for hydrogen liquefaction and the storage and transportation of liquid hydrogen in order to reduce the proportion of the cost of single raw material in our overall cost of sales.
In 2021, 2022, 2023 and the five months ended May 31, 2023 and 2024, our raw material and consumable costs that constitute the cost of sales represented 83.3%, 80.7%, 77.8%, 78.8% and 81.9% of our total cost of sales, respectively.
Financial Information · p. 363
We generally do not enter into long-term supply agreements with fixed price arrangements, which is in line with the industry norm, according to CIC.
Business · p. 265
(iii) we regularly monitor the market prices of commodities, such as gold, silver and copper, to anticipate and manage the price volatility of raw materials, and timely adjust our procurement bidding and price comparison processes, so as to mitigate the impact of price fluctuations.
Bunker expenses represent a significant portion of our operating expenses.
Financial Information · p. 394
For the years ended December 31, 2021, 2022 and 2023 and the four months ended April 30, 2023 and 2024, our bunker expenses accounted for US$164.0 million, US$312.9 million, US$187.7 million, US$67.9 million and US$61.2 million, respectively, representing 18.1%, 23.1%, 20.7%, 21.2% and 19.7% of our cost of sales for the same periods, respectively.
Financial Information · p. 394
We currently have not entered into agreements to hedge fluctuations in bunkers prices.
The price of lithium carbonate experienced a significant increase from 2021 to 2022, escalating from RMB119.8 thousand per ton in 2021 to RMB482.4 thousand per ton in 2022, and then dropped to RMB272.3 thousand per ton in 2023 and RMB103.5 thousand per ton in the first half of 2024.
Financial Information · p. 391
As a result, we recorded gross loss of RMB57.5 million as well as provision for impairment loss of inventories of RMB554.5 million in 2023, which largely contributed to our net loss of RMB1,514.2 million in the year.
Financial Information · p. 391
The following sensitivity analysis illustrates the impact of hypothetical fluctuations of cost of principal raw materials, namely lithium carbonate and iron phosphate, on our gross profit during the Track Record Period, assuming all other variables remained constant.
As a result, our procurement prices of automotive semiconductors hiked approximately 19.5%, 14.5% and 10.5% in 2021, 2022 and 2023, respectively.
Business · p. 293
However, we were still able to maintain our gross profit margin at 70.9%, 69.3%, 70.5% and 79.0% in 2021, 2022, 2023 and for the six months ended June 30, 2024.
Business · p. 293
For the six months ended June 30, 2024, our procurement prices of automotive semiconductors decreased by 12.7% compared to 2023.
In 2021, 2022 and 2023 and the four months ended April 30, 2024, purchases of PET (VAT exclusive) amounted to RMB1,665.2 million, RMB2,165.6 million, RMB1,992.7 million and RMB526.3 million, respectively, accounting for approximately 21.8%, 25.2%, 23.6% and 22.0% of our total purchases during the same periods, respectively.
Business · p. 228
In 2021, 2022 and 2023 and the four months ended April 30, 2024, our average procurement price (VAT exclusive) per ton for bottle-grade PET was RMB5,556.8, RMB6,822.5, RMB6,420.1 and RMB6,196.7, respectively.
Business · p. 228
For key packaging materials such as cardboard, bottle caps and labels, we adopt a procurement pricing adjustment mechanism based on annual procurement amount to mitigate the impact of significant price fluctuations on us or our suppliers.
During the Track Record Period, network and bandwidth costs accounted for 52.8%, 61.4%, 61.3% and 64.6% of our total cost of sales in 2021, 2022, 2023 and the three months ended March 31, 2024, respectively.
Financial Information · p. 379
Since a significant portion of our costs relates to distribution and storage services from third parties, our cost of sales largely depends on the price of such services in the market.
For illustrative purpose only, the following sensitivity analysis illustrates the impact of hypothetical fluctuations of our cost of materials on our profit before income tax assuming all other variables remain unchanged for the dates indicated.
Financial Information · p. 314
For illustrative purpose only, the following sensitivity analysis illustrates the impact of hypothetical fluctuations of the subcontracting fees on our profit before income tax assuming other variables remain unchanged for the dates indicated.
Financial Information · p. 313
For illustrative purpose only, the following sensitivity analysis illustrates the impact of hypothetical fluctuations of the employee expenses on our profit before income tax assuming other variables remain unchanged for the dates indicated.
While we have developed stable partnerships with certain contract manufacturers who consistently demonstrate well-managed production and delivery, we have limited control over the operations of our contract manufacturers, and thus have limited control over their cost management and production efficiency.
Financial Information · p. 332
The cost of inventory, which includes the cost of inventories sold and the costs for raw materials and consumables for the finished products sourced from contract manufacturers, is subject to market forces.
Financial Information · p. 332
The increase in the gross profit margin of our branded business from 2021 to 2022 was primarily due to a decrease in the average cost of sales of our cookware, mainly attributable to our increased bargaining power against suppliers as our purchase volume increased.
The majority of our cost of revenue in 2021, 2022, 2023 and the four months ended 30 April 2023 and 2024 consisted of raw materials and consumables that we used in product manufacturing, such as copper, steel, plastic and aluminum.
Financial Information · p. 245
We manage our raw material costs through hedging measures and centralized procurement.
Financial Information · p. 245
For each important material or component for which we rely on external sourcing, we make sure that we have at least two suppliers so as to mitigate the concentration risks and maintain our pricing competitiveness.
Since we usually make material procurement arrangements with suppliers after we have entered into the relevant contracts with our customers, in which the price of the materials are usually set out, we generally would not be able to pass on any increase in material costs to our customers when we experience an unexpected increase in material costs
Business · p. 170
The price index of overall steel plate in China fluctuated during the Track Record Period and recorded a sharp increase since October 2020 with lowest price index hit at 107.3 in October 2020 and highest price index hit at 157.7 in September 2021, representing a change of approximately 47.0%.
Business · p. 171
We did not conduct any hedging activities with respect to the price fluctuation in the material during the Track Record Period.
Since 2021, there has been a global shortage in the supply of semiconductor chips which negatively affected our sales of in-vehicle hardware products business in ways such as production schedules and lead times, resulting in delayed orders and/or failure to meet demands of our customers, and leading to the increase in selling price of semiconductors, which accounted for approximately 10% of the total cost of our core board products in FY2021, while they have less than a 3% cost impact on our in-vehicle infotainment system and vehicle safety system products since we purchase in-vehicle infotainment system products and in-vehicle safety system products as finished products and semiconductor chips constituted only a small part of their bill of materials.
For the years ended 31 December 2022 and 2023, our direct material cost accounted for approximately 64.6% and 61.6% of our total cost of sales, respectively.
Financial Information · p. 286
The table below sets forth a sensitivity analysis which is hypothetical in nature and is for illustration purpose only of our direct material cost, illustrating its impact on our profit before income tax if the price of our raw materials had been 3%, 6% and 9% higher or lower during the Track Record Period, assuming all other variables being held constant:
Financial Information · p. 286
There are approximately 50 to 100 alternative suppliers supplying metal material (e.g., aluminium) based in Singapore who can provide metal material to us with comparable prices, terms and quality, and the Group could also import metal materials from abroad.
The Group’s labour procurement costs represented the largest component of the its cost of sales for the years ended 31 December 2021, 2022 and 2023 accounting for approximately 78.4%, 91.5% and 89.5% respectively.
Financial Information · p. 319
Accordingly, fluctuations in the Group’s labour procurement costs directly impact the Group’s operational and financial results.
Financial Information · p. 319
The following sensitivity analysis illustrates the impact of hypothetical fluctuations in the Group’s labour procurement costs on its profit before tax during the Track Record Period, assuming all other variables, including the Group’s revenue remains constant.
Gold is our primary raw material used in the production of our products, accounting for 94.4%, 93.6% and 92.5% of our raw material costs in 2021, 2022 and 2023, respectively.
Financial Information · p. 292
The following table demonstrates the sensitivity to a reasonably possible change in the gold price, with all other variables held constant, of our profit before tax during the Track Record Period:
Financial Information · p. 293
We are susceptible to the fluctuation in gold prices, as we do not have any hedging instruments to manage such fluctuation.
For the years ended December 31, 2021, 2022 and 2023, our cost of consumed raw materials were RMB1,175.6 million, RMB1,569.5 million and RMB1,384.2 million, which accounted for 54.7%, 64.5% and 59.0% of our total cost of sales, respectively.
Financial Information · p. 260
Fluctuations in raw material prices, especially the market prices of petroleum toluene primarily affected by the international crude oil prices, may increase our costs of sales.
Financial Information · p. 260
We did not adopt hedging policy against fluctuations in foreign currencies in relation to our overseas sales or hedging policy against fluctuations in the prices of raw materials and products during the Track Record Period and up to the Latest Practicable Date.