In 2023, 2024 and 2025, our purchases of goods and materials were RMB499.0 million, RMB575.1 million and RMB544.1 million, respectively, representing 67.8%, 66.1% and 62.2% of our total revenues in the same years.
Financial Information · p. 113
We mitigate supply shortages by maintaining dual sourcing for critical inputs such as forgings and machined castings, and by enforcing supplier qualification and periodic audits to ensure capacity and quality readiness.
Business · p. 97
This pass-through mechanism helps protect our margins against raw material price volatility, although we may not always be able to pass on cost increases in full or on a timely basis.
During the Track Record Period, cost of direct materials represented the largest component of our costs of sales, which accounted for 70.9%, 64.6%, and 71.4% of our costs of sales for the years ended December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 192
The procurement costs of metal parts are affected by fluctuations in the commodity prices of relevant metals.
Financial Information · p. 192
The following table sets forth a sensitivity analysis illustrating the impact of hypothetical fluctuations in cost of direct materials on our net profit for the years indicated:
Purchase and changes in inventories accounted for 90.7%, 90.5% and 91.6% of total cost of sales in 2023, 2024 and 2025, respectively.
Financial Information · p. 177
While we generally adjust product prices to reflect raw material cost changes through our cost-plus pricing mechanism, timing lags and competitive pressures may limit our ability to fully pass on cost increases.
Financial Information · p. 177
The following sensitivity analysis illustrates the impact of hypothetical fluctuations of purchase and changes in inventories on our gross profit during the Track Record Period, assuming all other variables remained constant.
The cost of raw materials and consumables used was RMB752.4 million, RMB887.7 million and RMB919.7 million for the years ended December 31, 2023, 2024 and 2025, respectively.
Financial Information · p. 190
Our profitability is sensitive to fluctuations in the prices and availability of these components, a substantial portion of which are sourced from overseas suppliers.
Financial Information · p. 190
We implement strategic procurement and enter into framework agreements to secure supply.
In 2023, 2024 and 2025, our raw material costs were RMB175.5 million, RMB246.3 million and RMB364.4 million, respectively, accounting for 35.8%, 39.7% and 46.4% of our total cost of sales in the same year, respectively.
Financial Information · p. 172
We have implemented comprehensive supply chain management measures and maintain a diversified base of suppliers, which we believe will continue to enable us to maintain a stable supply chain to mitigate the risk of material adverse price fluctuations of key raw materials.
In 2023, 2024 and 2025, raw material costs represented approximately 58.6%, 62.7% and 65.9% of our cost of sales, respectively.
Financial Information · p. 195
However, our selling prices may not fluctuate entirely in tandem with raw material costs, which may contribute to fluctuation in our results of operations.
Financial Information · p. 195
To mitigate the risk of supply disruptions and adverse raw material price movements, we continuously monitor market conditions and maintain regular communication with our major suppliers regarding supply availability and pricing trends.
In 2023, 2024 and 2025, our raw material costs amounted to RMB15,938.6 million, RMB20,351.6 million and RMB24,183.1 million, respectively, representing 90.9%, 92.0% and 91.8% of our total cost of sales for the corresponding years.
Financial Information · p. 145
Accordingly, fluctuations in the prices of our raw materials may have a significant impact on our gross profit and overall results of operations.
Financial Information · p. 145
In response, we may seek to (i) enhance our production efficiency and reduce incremental costs through economies of scale as our sales volume grows, (ii) continuously optimize our production processes, supply chain management and procurement strategies, (iii) upgrade and iterate our product portfolio towards higher value-added solutions with more advanced functionalities and higher levels of integration, and
For the years ended December 31, 2023, 2024 and 2025, our changes in fair value less costs to sell of biological assets were RMB(33.5) million, RMB(62.5) million and RMB(28.6) million, respectively.
Financial Information · p. 236
The losses recognized in 2023 and 2024 primarily reflected declines in the fair value of dairy cow and dairy goat herds driven by sustained decreases in raw milk prices and weaker market prices for live animals.
Financial Information · p. 236
a 10% increase in the raw milk price (to RMB6.51/kg) would increase the valuation to approximately RMB48.36 million, an uplift of RMB14.71 million or 43.71%.
In 2023, 2024 and 2025, our material costs were RMB27.1 million, RMB578.0 million and RMB3,721.0 million, respectively, accounting for 67.8%, 81.8% and 82.8% of our total cost of sales, respectively.
Our purchase of gold accounted for 96.6%, 98.3% and 95.5% of our total purchase of raw materials for FY2023, FY2024 and FY2025, respectively.
Financial Information · p. 214
To mitigate price volatility, we procure our gold evenly across trading days and we monitor gold prices in real time.
Financial Information · p. 215
Since 31 December 2025 and up to the Latest Practicable date, gold prices has demonstrated volatility, with a historic surge in early 2026, peaking at around 1,240 RMB/g, followed by a sharp correction in March 2026.
Materials and components accounted for the majority of our cost of sales, amounting to 99.1%, 99.6% and 99.7% of our cost of sales in 2023, 2024 and 2025, respectively.
Financial Information · p. 178
Compared to our peers, our flexible pricing mechanism allows us to respond swiftly to customer needs and market dynamics, enhancing our ability to secure and retain customer orders and to pass on raw material price fluctuations to customers.
For 2023, 2024 and 2025, our material costs included in cost of sales were RMB1,945.0 million, RMB3,158.5 million and RMB2,777.8 million, respectively, accounting for 97.1%, 96.6% and 95.3% of our total cost of revenue during the respective periods.
Business · p. 131
Given the close correlation between the prices of casing materials, batteries, and memory we procure from our suppliers and the often volatile bulk commodity cobalt ore and oil prices, we implement a comprehensive risk management strategy to mitigate the impact of such fluctuations, which primarily incorporates a raw material price linkage mechanism in our contracts with both customers and suppliers.
Business · p. 131
In response to the potential raw material price increases, we primarily mitigate the impact by building long-term relationships with our suppliers, signing linkage pricing agreements with the suppliers and maintaining close communication.
During the Track Record Period, cost of raw materials amounted to RMB6,335.8 million, RMB3,865.5 million and RMB4,811.1 million, respectively, representing 80.5%, 73.7% and 74.1% of our cost of sales for the respecive years.
Business · p. 122
We generally adopt market-linked pricing mechanisms in our raw material contracts, with pricing determined by reference to prevailing market indices rather than fixed-price arrangements.
Business · p. 122
Accordingly, to manage raw material cost volatility and support more stable margins, we closely monitor high-quality lithium mineral resources and are advancing a global lithium mineral resource configuration to continuously increase our lithium mineral self-sufficiency rate.
Raw milk is the principal raw material for our dairy business and represents a significant component of our operating costs.
Financial Information · p. 185
A decline in raw milk prices generally reduces our procurement costs for externally sourced raw milk, while an increase in raw milk prices may raise our operating costs and affect profitability if such increases cannot be passed on through product pricing.
Financial Information · p. 185
We maintain a diversified raw milk sourcing structure comprising our self-owned dairy farms, strategic partner dairy farms, and third-party dairy farms.
The table below sets forth a sensitivity analysis illustrating the hypothetical impact on our profit during the Track Record Period from fluctuations in the average procurement cost of our core eyewear products and optical materials.
Business · p. 157
The procurement costs for the materials, third party branded products and production of our proprietary branded products 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 critical raw materials.
Financial Information · p. 209
Key measures include (i) negotiating fixed-price agreements with key suppliers for core product categories (e.g., basic lens blanks, standard frame materials) to lock in favourable costs over defined periods; (ii) cultivating long-term, strategic partnerships with our major suppliers to secure pricing stability and priority access to new products; and (iii) utilising predictive analytics based on sales trends and seasonality to guide bulk purchasing decisions, thereby optimising inventory levels and capitalising on volume discounts.
In 2023, 2024 and 2025, our cost of raw materials amounted to RMB4,443.0 million, RMB4,480.7 million and RMB5,327.0 million, respectively, representing 84.1%, 85.3% and 84.3% of our total cost of sales for the same periods.
Financial Information · p. 145
For illustrative purposes only, assuming that all other factors affecting our financial performance remain constant (including assuming that material price fluctuations cannot be passed on to customers through price adjustment mechanisms), the sensitivity analysis of the impact of fluctuations in the average price of raw materials being 5% and 10% on our loss before income tax during the Track Record Period is as follows.
Financial Information · p. 145
During the Track Record Period, we conducted commodity futures hedging activities in accordance with our internal management policies and applicable regulatory requirements to manage the risks arising from raw material price volatility and to enhance the stability and sustainability of our operating results.
Various factors may affect the gross profit margin and profitability of our products, such as commodity prices related to raw materials.
Financial Information · p. 182
We are committed to enhancing centralized procurement of raw materials to amplify economies of scale, while promoting in-house production of key components to strategically balance the scale of external centralized procurement for optimal cost efficiency.
The costs of raw materials and supply chain management efficiency are critical to our cost of sales and have historically fluctuated significantly.
Financial Information · p. 217
In 2023, 2024 and 2025, raw materials costs accounted for 92.6%, 92.8% and 90.7% of our cost of sales, respectively.
Financial Information · p. 217
Therefore, changes in the availability and prices of raw materials from upstream suppliers, particularly memory wafers and memory dies, could significantly impact our results of operations.
Direct materials costs represent the largest portion of our cost of sales, accounting for approximately 92.5%, 90.3%, and 93.4% during FY2023, FY2024, and FY2025 of the Track Record Period, respectively.
Financial Information · p. 208
For FY2023, FY2024 and FY2025, the average purchase cost per tonne of nonwoven fabrics increased slightly by approximately 1.6% from FY2023 to FY2024 and further increased by 13.8% from FY2024 to FY2025.
Financial Information · p. 208
The table below presents a sensitivity analysis illustrating the impact of changes in the average direct material costs of two key raw materials, nonwoven fabrics and SAP on our profit before tax during the Track Record Period.
In 2023, 2024 and 2025, our materials cost was RMB188.0 million, RMB184.5 million and RMB168.2 million, representing 63.0%, 52.1% and 45.4% of our total cost of sales, respectively.
Financial Information · p. 208
In response to the potential price increases, we primarily mitigate the impact on our raw material costs by building long-term relationships with our suppliers and conducting secondary source evaluations.
Business · p. 148
Our materials cost is primarily influenced by copper prices, purchase volume, and quality requirements, with scale-based procurement generally offering price advantages.