Our direct material costs amounted to RMB99.5 million, RMB145.9 million and RMB232.3 million for 2023, 2024 and 2025, respectively, representing 84.5%, 83.5% and 84.9% of our total cost of sales for the same years, respectively.
Financial Information · p. 189
Our gross profit margin of different product lines fluctuated during the Track Record Period, due in part to our direct materials costs, which were subject to supply chain changes.
The prices of our raw materials may fluctuate with market conditions, attributed to various factors, such as supply and demand and our bargaining power.
Business · p. 140
To mitigate the risk of raw material price fluctuations, we have taken measures such as (i) maintaining reasonable safety stock for various raw materials; and (ii) establishing long-term cooperation with suppliers to ensure a stable and quality supply for key raw materials.
Business · p. 140
We had costs of raw materials and consumables used of RMB585.9 million, RMB534.6 million and RMB556.0 million in 2023, 2024 and 2025, respectively, representing 56.0%, 51.7% and 54.5% of our total revenue in the same respective years.
In 2023, 2024, and 2025, raw materials and other components recorded in cost of sales amounted to RMB68.9 million, RMB168.9 million, and RMB276.5 million, respectively, representing 70.6%, 77.7% and 75.8% of our total cost of sales in the respective years.
Financial Information · p. 197
Fluctuations in the market prices of raw materials and other components may have a significant impact on our business, results of operations, and financial condition.
Business · p. 158
Furthermore, to implement flexible pricing mechanisms, where there are material fluctuations in raw material prices, we adjust the selling prices of our products in a timely manner in accordance with changes in procurement costs.
In 2023, 2024 and 2025, raw material costs represented approximately 48.2%, 50.6% and 54.4% of our cost of sales, respectively.
Financial Information · p. 122
Certain of our service offerings, particularly gold bumping, involve the use of gold, and fluctuations in gold prices may therefore affect our cost structure and operating results.
Financial Information · p. 122
However, because there is an inherent time lag between our procurement of gold-related raw materials and the timing at which we quote or adjust prices to customers, changes in gold prices may not be passed on to customers fully, immediately or completely.
For the three years ended December 31, 2025, the average unit price of wafers was RMB5,486.2, RMB5,750.0 and RMB5,010.4 per wafer, respectively.
Summary · p. 10
During the Track Record Period, our raw material costs amounted to RMB386.8 million, RMB446.6 million and RMB788.5 million, respectively, representing 69.2%, 76.2% and 85.1% of our total costs of sale in the respective years.
Business · p. 195
In addition, we dynamically adjusted purchasing volumes based on market price forecasts.
To mitigate the impact of fluctuation of the price of raw materials, we implemented a comprehensive risk management strategy.
Business · p. 166
For certain materials, we also secure annual pricing agreements to lock in component costs, thereby minimizing the effect of raw material price volatility on our purchased components.
We recorded costs for raw materials of RMB1,263.2 million, RMB1,248.1 million and RMB1,279.5 million in 2023, 2024 and 2025, respectively, representing 72.7%, 70.4% and 67.8% of our total cost of sales in the same periods, respectively.
Financial Information · p. 159
Although we may adjust our product pricing in response to changes in raw material costs, such adjustments may not fully or immediately offset increases in raw material prices.
During the Track Record Period and up to the Latest Practicable Date, we experienced material fluctuations of raw material prices, such as DDR/UFS storage and eMMC storage.
Business · p. 182
We have implemented a number of measures to manage the volatility of prices of raw materials and components, including (i) monitoring market conditions on a continuous basis to avoid materials subject to price increases during the design phase; (ii) substituting price-sensitive materials with domestically produced alternatives; and (iii) establishing a senior management communication mechanism with our key suppliers to enhance cooperation and reduce the extent of price increases.
The financial performance of our recycling products, hydrometallurgical products and cascade utilization products is subject to fluctuations in the market prices of critical metal salts and metals.
Financial Information · p. 204
If we fail to consume raw materials in a timely manner and the market prices of such raw materials decline, we may incur impairment losses on inventories, which could adversely affect our gross profit and gross profit margin.
As batteries are the primary component of our vehicles, fluctuations in battery prices can directly affect our unit costs, average selling prices and gross profit margins.
Financial Information · p. 194
Volatility in raw-material prices or any disruption in the supply chain could also adversely affect our vehicle development and manufacturing schedules.
Financial Information · p. 194
To maintain supply chain stability, quality and cost-effectiveness, we formulate procurement plans with reference to production schedules, inventory levels, supplier lead times, delivery requirements and sales forecasts, and manage raw material and component price volatility through price-comparison procurement and strict procurement budget control.
The following table sets out a sensitivity analysis of raw material price, reflecting the impact that a hypothetical fluctuation of raw material price, with all other variables remain constant, would have on our net profit for the years indicated.
Financial Information · p. 217
Our key raw materials primarily comprise steel plates, flanges, tower internal fittings and paints, with steel plates accounting for approximately 70% to 80% of our total raw material costs.
Financial Information · p. 217
During the Track Record Period, our purchases of steel plates amounted to RMB1,885.1 million, RMB1,304.1 million and RMB2,216.9 million in 2023, 2024 and 2025, accounting for 72.4%, 72.3% and 77.6% of our total raw material costs in each respective year, respectively.
Key components of our products include DRAM/NAND chips, microprocessors and other semiconductors.
Summary · p. 15
We therefore continue to monitor supply conditions closely and maintain relationships with multiple chip suppliers to mitigate potential supply chain risks.
During the Track Record Period, prices of certain raw materials such as copper and aluminum fluctuated, which impacted the costs of components including PCBs, wires and solenoid valves.
Business · p. 124
We do not engage in hedging using derivative instruments relating to the risk exposures in connection with our raw materials.
For instance, our material costs accounted for 86.5%, 86.1%, and 84.1% of our total cost of sales in 2023, 2024, and 2025, respectively.
Financial Information · p. 166
The procurement costs for materials may fluctuate due to a number of factors beyond our control, such as supply chain disruptions, inflation and bulk commodity price fluctuations, and we are susceptible to significant changes in the availability, price, and standard of key raw materials such as IGBT.
To mitigate fluctuations in raw material prices, we prioritize selecting suppliers that offer standard components with readily available alternative models, preferably including at least one domestic brand option, thereby reducing risks associated with shortages and price volatility.
Business · p. 235
We generally will not pass on raw material price increases to our customers because raw materials account for only a limited portion of our product price where we can maintain a reasonable level of margin.
Business · p. 235
Our raw materials are typically not subject to expiration, except that robotic arms may have an expiration period of one to two years.
During the Track Record Period, our revenue was in large part derived from the mining and sales of silver, gold, lead and zinc contained in metal concentrates.
Financial Information · p. 216
A sustained significant decline in these market prices would materially and adversely affect our business, financial condition and results of operations.
Financial Information · p. 216
Our production and sales volumes may also be affected by changes in prices of silver, gold, lead, zinc and other metals because such decrease in prices may render current mineral resources uneconomical to mine and process.
We incurred significant procurement costs of raw materials and consumables under our cost of sales, which were RMB741.6 million, RMB1,083.9 million and RMB1,845.0 million in 2023, 2024 and 2025, respectively, representing 81.7%, 84.5% and 80.9% of our revenue, during the same years, respectively.
Business · p. 182
In response to the potential fluctuation on the prices of major raw materials and components, we leverage the annual price negotiation mechanism with our suppliers to manage such fluctuation.
Business · p. 174
Although we have access to sufficient alternative suppliers for all raw materials and components, certain materials may occasionally face industry-wide shortages, significant price fluctuations, or extended supply cycles.
Our costs of raw materials, most of which were attributed to the procurement of industrial off-gas, amounted to RMB178.5 million, RMB197.8 million and RMB225.8 million for the years ended December 31, 2023, 2024 and 2025, respectively, representing 31.1%, 30.1% and 34.8% of our cost of sales for the respective years.
Financial Information · p. 236
The average purchase price of industrial off-gas at Shoulang Jiyuan production facility increased gradually throughout the Track Record Period, driven by the overall rise in local coal and electricity prices, as the price of industrial off-gas is calculated based on coal and electricity prices.
Direct materials and consumables costs represent the largest portion of our cost of sales, accounting for approximately 82.8%, 83.4% and 84.6% of our cost of sales during the Track Record Period, respectively.
Financial Information · p. 175
For the Track Record Period, the average purchase cost per tonne of copper increased by approximately 4.4%, 8.8% and 24.3%, respectively.
Financial Information · p. 175
The table below presents a sensitivity analysis illustrating the impact of changes in the costs of two key raw materials, copper and aluminium on our profit before tax during the Track Record Period.
Fluctuations in any major component of our cost of sales may have a direct impact on our gross profit and gross profit margin.
Financial Information · p. 183
Securing charter capacity earlier in the year generally allows us to lock in more favorable pricing compared to spot or ad-hoc arrangements, thereby improving cost predictability and margin visibility.
Financial Information · p. 183
Conversely, unexpected increase in capacity costs may exert pressure on our profitability if such increases cannot be fully passed to customers in a timely manner.