Some of the raw materials we use in the production of alloy soft magnetic powders are subject to price fluctuation.
Business · p. 123
To mitigate the impact of such price fluctuations, we have established a price transmission mechanism under which, when raw material prices fluctuate beyond a certain range, the selling prices of our affected products may be adjusted accordingly following discussions with our customers.
Business · p. 123
Minor raw material price fluctuations are generally absorbed by us in the ordinary course of business to maintain price stability.
Raw materials are an important component of our cost of sales.
Financial Information · p. 208
in respect of CMP Pads business, raw materials such as cushion pads, microspheres and prepolymers, which act as core raw materials, have been gradually transitioned from external procurement to in-house manufacturing, resulting in a significant decrease in unit cost of sales.
Financial Information · p. 208
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.
For instance, according to Frost & Sullivan, the price of copper showed a relatively steady upward trend from 2020 to 2025 at CAGR of 10.4%, while the price of aluminum alloy witness an increase at CAGR of 6.8% from 2020 to 2025.
Financial Information · p. 232
If we are unable to pass on such increase in raw material prices to our customers, our profitability may be adversely affected.
Financial Information · p. 232
During the Track Record Period, we did not experience material fluctuations of raw material prices.
In particular, the pricing of our products is closely tied to the cost of memory wafers, which are our primary raw materials.
Business · p. 166
To mitigate these risks, we have strengthened our business relationship with key customers who regularly place large orders.
Business · p. 166
Furthermore, our results of operations are subject to industry cycles in the global memory product market, which directly influence our pricing, margins, and revenue through recurring periods of price volatility and supply-demand imbalances.
During the Track Record Period, raw material costs accounted for 27.5%, 22.4%, 24.9%, 23.2% and 25.9% of our revenue in 2023, 2024, 2025 and the three months ended March 31, 2025 and 2026, respectively.
Financial Information · p. 211
For example, in response to fluctuations in gold prices, we have negotiated a price adjustment mechanism with certain customers.
For 2025, the Board has approved that the margin to be deployed for the proposed futures hedging activities would not exceed RMB80.0 million, and the maximum contract value held on any single trading day would not exceed RMB400.0 million.
Business · p. 179
For the years ended December 31, 2024 and 2025, we recorded gains of approximately RMB17.4 million and RMB90.7 million from hedging activities, respectively.
Business · p. 180
Our engagement in futures hedging activities is solely for the purpose of mitigating risks associated with price fluctuations of underlying commodities, and not for arbitrage or speculation purpose.
Fuel, consisting largely of diesel fuel for locomotives, and lubricants accounted for 14.7%, 12.1% and 13.8% of the Group’s total cost of sales in the years ended 31 December 2023, 2024 and 2025, respectively.
Financial Information · p. 175
Electrical power accounted for 4.3%, 5.6% and 7.2% of the Group’s total cost of sales in the years ended 31 December 2023, 2024 and 2025, respectively.
Financial Information · p. 175
To manage price risk, the Group usually conducts procurement tenders at the beginning of each calendar year on fixed-price terms, with flexibility to decrease the initially fixed price if market prices for the relevant commodity or service decline.
In FY2023, FY2024 and FY2025, the cost of raw materials accounted for 64.6%, 67.2% and 65.8% of our total cost of sales, respectively.
Financial Information · p. 206
The price of the hog plum fruits is subject to adjustments based on the yield of the relevant year whereas the price of other auxiliary materials and packaging materials generally fluctuates according to the market conditions.
Financial Information · p. 206
We have not entered into any hedging activities in relation to their prices.
Our raw material costs were RMB190.2 million, RMB213.4 million and RMB347.2 million in 2023, 2024 and 2025, respectively, representing 80.4%, 84.0% and 85.2% of our total cost of revenue for the same periods, respectively.
Financial Information · p. 222
Our raw material costs may fluctuate due to a number of factors beyond our control, such as supply chain disruptions and inflation, and we are susceptible to significant changes in the availability, price and standard of key raw materials.
Financial Information · p. 222
Through commercial negotiations with suppliers, we have reduced procurement costs for major materials from our major supplier by approximately 10% for the first quarter of 2026 compared to December 2025, while extending payment terms to 90 days.
Our largest cost component is raw materials costs, which amounted to RMB5,059.5 million, RMB12,761.4 million and RMB20,804.2 million, accounting for 87.0%, 89.7% and 89.6% of our total cost of sales in 2023, 2024 and 2025, respectively.
Financial Information · p. 234
The prices of these materials are subject to significant volatility due to supply-demand dynamics, geopolitical factors and fluctuations in commodity markets.
The largest component of our cost of sales is raw materials consumed, which consist mainly of tungsten carbide, stainless steel wire, film substrates, brush plates and ceramic strips, accounting for 62.3%, 63.8% and 67.2% of our cost of sales in 2023, 2024 and 2025, respectively.
Financial Information · p. 212
We generally adopt a one-time pricing model.
Business · p. 159
During the Track Record Period, we did not enter into any long-term supply agreements with our suppliers that included fixed-price arrangements.
In FY2023, FY2024 and FY2025, equipment and materials accounted for approximately 46.0%, 34.5% and 46.2% of our cost of services, respectively, and construction and installation costs accounted for approximately 34.3%, 44.2% and 31.4% of our cost of services, respectively.
Financial Information · p. 190
While most of our contracts build in price adjustment clauses, we may not be able to pass the full amount of any cost increase to our customers and our results of operations may be adversely affected.
Financial Information · p. 190
Gross loss was recorded for these projects mainly because of cost overruns such as price volatility in certain materials for our EPC projects.
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.