We have historically experienced, and expect to continue to experience, a decrease in demand during July and August due to routine summer maintenance activities undertaken by our tyre manufacturers clients.
Business · p. 131
To effectively manage these seasonal characteristics, we proactively engage with our clients to understand downstream demand changes, allowing us to prepare for production and inventory management well in advance.
Our financial performance is subject to seasonal patterns in the PRC automotive market, as we primarily supply our products and solutions to PRC OEM customers.
Financial Information · p. 204
As a result, we may generally experience higher shipment volumes and sales activity in the second half of the year, especially in the third and fourth quarters.
Financial Information · p. 204
These effects may be further amplified by the seasonal pattern of the PRC automotive industry, as OEMs typically increase production and procurement in the second half of the year and around year-end sales campaigns and stocking periods, which may increase shipment volume and utilization in certain periods while delaying cash collection into subsequent periods.