Hong Kong IPO disclosure precedents · 172 companies, 193 items
revenue recognised through consignment, sales agents or intermediaries, ODM sales under customers' brands, a trading business alongside the main one, brand customers directing their designated suppliers to buy from the company, resale of procured materials
We recognize revenue upon sales to end-consumers are made through consignment sales partners.
Business · p. 211
The return of unsold goods from our consignment sales partners does not have any financial impact on us, particularly on our revenue and inventory, because the title of the goods does not leave us until they are sold to end-customers.
Business · p. 211
Upon request from the consignment sales partners, we are responsible for collecting unsold relevant products within a period specified in the agreement.
In 2022 and 2023 and for the six months ended June 30, 2024, we delivered an aggregate of 51, 331 and 48 RVs that were covered by the floor-plan finance arrangements, with the corresponding recognized total revenue of RMB12.7 million, RMB83.0 million and RMB11.2 million, respectively.
Business · p. 231
Our revenue generated from sales of RVs through financing model decreased from RMB36.8 million for the six months ended June 30, 2023 to RMB11.2 million for the six months ended June 30, 2024, primarily because one large dealer of ours chose to explore other financing institutions, which resulted in the reduced utilization of our floor-plan financing arrangements.
Business · p. 217
Compared to the direct seller-buyer model, our financing model has a relatively lower gross profit margin primarily due to (i) the additional expenses we incurred under the financing model that were recognized as a reduction in revenue, and (ii) the higher proportion of retail sales for direct seller-buyer model.
During the Track Record Period, our revenue derived from sales to trading companies amounted to RMB104.5 million, RMB194.2 million, RMB320.2 million and RMB153.4 million, respectively, representing 6.8%, 13.7%, 13.4% and 13.9% of our total revenue for the corresponding year/period.
Business · p. 251
According to Frost & Sullivan, it is in line with market practice as the trading companies can integrate small and medium-sized orders from small and medium-sized companies in the industry.
Business · p. 251
Our customers, which are trading companies, are not considered as distributors given that: (i) we do not enter into distributorship agreement with these customers and our relationship is a buyer and seller relationship;
Although we mostly obtain contracts for the sale of our products and services in the capacity of a main contractor, we had undertaken three projects in the capacity of a subcontractor during the Track Record Period and up to the Latest Practicable Date.
Business · p. 278
Where, in limited cases, technology companies purchased ICV testing products from our Group to integrate such products with their own solutions for further sale, they generally only obtained the right to use our Group’s products but the IP rights and underlying code of our Group’s ICV simulation testing software still belonged to our Group.
For FY2021, FY2022, FY2023, 6M2023 and 6M2024, the majority of our revenue was derived from (i) sales attributable to online sales channels (including direct sales to e-commerce companies and sales through online shopping platforms to our customers), such revenue amounted to approximately RMB216.4 million, RMB243.2 million, RMB311.5 million, RMB132.4 million and RMB117.9 million, respectively, representing approximately 64.1%, 66.3%, 73.0%, 68.9% and 80.7% of our total revenue, respectively
Business · p. 175
We adopt the business strategy of selling our nutritional products to e-commerce companies and through online shopping platforms despite certain online shopping platforms are operated by the same group of e-commerce companies (e.g. Customer A and Customer B).
Business · p. 176
To the best of our Directors’ knowledge, the e-commerce companies usually place orders with us only when the quantity of products at their warehouse is insufficient to satisfy the forecast demands from their customers.
In addition, our customers also include intermediaries engaged by certain of our end users, who are primarily regional healthcare administrators and hospitals.
Business · p. 280
According to Frost & Sullivan, it is industry practice for the end user to engage intermediaries which provide different types of assistance in project implementation, such as advising on selecting suppliers, managing construction and integrating the work products if different services are selected, and the decisions as to which supplier to choose are primarily made by end users.
Business · p. 280
We do not believe our relationship with such intermediaries is one of distributorship.
For FY2021, FY2022, FY2023 and 6M2024, our revenue generated from consignment arrangements amounted to approximately HK$10.7 million, HK$8.7 million, HK$8.0 million and HK$3.2 million and accounted for approximately 5.6%, 4.2%, 3.1% and 2.7% of our total revenue for each of the corresponding years/period, respectively.
Business · p. 130
We do not enter into any long-term agreement as regard to minimum purchases with our consignees, who usually place replenishment notes with our Group from time to time.
Business · p. 130
We first commenced our business relationship with Consignee A in 2017 and have established a stable and sound business relationship.
They normally settle payment with us by bank transfer and/or by way of gold trade-in settlement.
Summary · p. 10
During the Track Record Period, all of our gold material was procured from the PRC, and we mainly source our gold through two means, namely (i) gold obtained from the Shanghai Gold Exchange and its members and (ii) obtaining used gold by way of accepting gold trade-in (including franchisee trade-in and consumer trade-in) as a settlement method to offset the amount of gold which our customers purchase from us.
Business · p. 224
For the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024, the proportions of sales settled by traded-in gold by Provincial-dealer B were 49.7%, 35.3%, 28.5% and 22.8%, respectively which are generally in line with the proportion of settlement by trade-in gold by provincial-dealers and franchisees of 49.1%, 37.7%, 33.7% and 27.5% out of our total revenue generated from the sales of gold jewellery and other gold products for respective year/ period.
Revenue recorded from our e-commerce sales for the year ended December 31, 2021 of RMB1,608.3 million was higher than that in 2022 and 2023, mainly due to our sales of gold bullion to Vipshop, for a promotional event.
Business · p. 331
In 2021, we sold a large batch of gold bullion to a leading online discount retailer, Vipshop.
Business · p. 335
We generally do not allow the return of gold bullion, and during the Track Record Period, we received only a de minimis amount of gold bullion returns from the online discount retailers we sold to, including Vipshop in 2021.
Total revenue from sales of products by distributors and direct sales accounted for less than 100.0% of our total revenue during the Track Record Period, as we also generated revenue from pharmaceutical services which accounted for 3.0%, 1.8%, 5.4% and 8.1% of our total revenue in 2021, 2022, 2023 and the six months ended June 30, 2024, respectively.
Business · p. 353
During the Track Record Period, we also entered into collaboration agreements with Zhongmei Huadong to provide R&D and manufacturing services, which further diversifies our revenue streams.
Summary · p. 6
In exchange, Zhongmei Huadong is obligated to pay RMB80.0 million transfer fee for T2DM indication and RMB25.0 million for obesity indication by installments.
Contrary to typical distributors who onsell products to a diverse customer base and actively seek new customers, the procurements made by Shenzhen MPEG were for the fulfillment of specific purchase requests from the two major TV brands.
Business · p. 254
We recognize revenue for the sales to Shenzhen MPEG when the TV brands confirm receipt of our products.
Business · p. 254
We believe that channel stuffing risks, cannibalization risks and account receivables' recoverability risks are low in connection with the collaboration with Shenzhen MPEG in the advanced display business.
Our revenue from Amazon Vendor Central was nil, nil and RMB200.2 million in 2021, 2022 and 2023, respectively.
Business · p. 225
In the four months ended April 30, 2024, the revenue from Amazon Vendor Central was RMB269.2 million, accounting for 12.0% of our total revenue from sales of goods.
Business · p. 225
Unlike our Seller Central accounts, where we decide the prices of our products sold to consumers, Amazon has the discretion to determine the list prices of our products sold through Amazon Vendor Central.
As we are in the early stage of commercialization, we still need to accumulate commercialization experience and our marketing team is limited in size and reach. Therefore, we have collaborated with some leading CSOs to leverage their marketing expertise and extensive coverage on pharmacies and hospitals in China.
Business · p. 354
As of December 31, 2022 and 2023 and May 31, 2024, we had zero, 15, and 14 CSOs, respectively, all of whom were pharmaceutical promotion companies and independent third parties.
Business · p. 356
The total amount of sales attributable to the top five CSOs was RMB17.8 million for the year ended December 31, 2023.
OEM customers: we design and produce automotive specialty chemical products to certain customers including globally leading automotive chemical brands on an OEM basis.
Business · p. 273
For the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024, our revenue of automotive specialty chemical products generated from OEM customers amounted to RMB196.5 million, RMB105.7 million, RMB176.9 million and RMB52.5 million, respectively, representing 9.3%, 6.0%, 9.3% and 5.4% of our revenue generated from our automotive specialty chemical products for the same period, respectively.
Business · p. 279
Partnering with these industry leaders enable us to enhance our production processes by adopting their valuable experience and best practices.
Revenue generated from lithium carbonate processing for this company amounted to approximately RMB42.7 million in the first half of 2024 while we recorded negative gross margin for this transaction primarily due to lack of economies of scale at the early production phase of the facility for the relevant batches.
Summary · p. 10
Under the relevant agreement, we have committed the production capacity of the Yichun facility to CATL.
Summary · p. 10
The pricing structure for our lithium carbonate processing service under this agreement generally accounts for our costs and operational expenses and an agreed-upon profit component.
Under consignment arrangements, we recognize revenue when end-consumers complete purchasing products from the direct sales customers.
Business · p. 195
During the Track Record Period, we had consignment arrangements with two direct sales customers.
Business · p. 196
In 2021, 2022 and 2023 and the four months ended April 30, 2023 and 2024, the revenue generated from the direct sales customers under consignment arrangements accounted for 0.0%, 0.5%, 0.6%, 0.4% and 0.3% of our total revenue.
In our overseas markets for Smart Home Solutions, we sell directly to ODM/OEM customers, who then resell the products we manufacture under their own brands, and we primarily sell our OBM products through local online and offline retailers and distributors.
Business · p. 212
In addition, we are striving to further increase our proportion of overseas revenue, particularly by promoting our OBM business.
Based on the foregoing, we do not believe that system integrators are our distributors, and we do not believe that our business relationships with them raise any concern in relation to inventory risk, channel stuffing or cannibalization.
Business · p. 316
Yet still, the pace at which the system integrators settle with us could be factually contingent upon the timing of when they receive payments from their end customers as a matter of commercial consideration and market practice driven by the cash flow dynamics and operational realities within the value chain.
Business · p. 315
There are no differences in pricing and other material terms between our contracts entered into with system integrators and that entered into with enterprise-level users.
During the Track Record Period, we also sold our equipment to trading company customers and a research centre, namely Honeywell Integrated Technology (China) — Luoyang Branch, which is a wholly-owned subsidiary of Honeywell China and ultimately owned by Honeywell International, with aggregate revenue amounted to approximately RMB4.1 million, RMB0.9 million and RMB0.3 million, respectively
Business · p. 167
To the best knowledge of our Directors after making reasonable enquiry, our trading company customers on-sell our equipment and parts and components to their customers or related companies who are the owners of production facilities.
Business · p. 167
Our Group does not adopt any favourable treatment in respect of the types of our customers (i.e. trading company customers and non-trading company customers) and thus, our pricing for sales to trading company customers and a research centre are similar to those offered by us to other customers of our Group.
Nearly all of our revenue from digital precision marketing services was attributable to fees charged to financial service providers for sales of financial products facilitated by us to users referred by our marketing agents during the Track Record Period.
Business · p. 246
During the Track Record Period, we incurred substantial referral fees paid to marketing agents of RMB64.2 million, RMB153.6 million, and RMB193.4 million in 2021, 2022 and 2023, respectively, accounting for 27.0%, 49.3% and 44.9% of our total cost of sales in the same periods, respectively.
Business · p. 245
The number of our marketing agents was 299, 511 and 666 as of December 31, 2021 and 2022 and 2023, respectively, which generally increased in line with our business growth.