As we improve our production efficiency in connection with the shift towards more complex products, production volume and utilization were insufficient to absorb fixed costs efficiently, which could adversely affect gross profit margins even where sales volume increases.
Financial Information · 第 160 页
Our property, plant and equipment increased from RMB2,536.3 million as of December 31, 2023 to RMB5,497.9 million as of June 30, 2026
Our utilization rates were relatively lower and fluctuated during the Track Record Period, primarily due to changes in our product mix and our forward-looking capacity planning in support of our development strategy.
Business · 第 126 页
In particular, the utilization rate of our TCM facilities decreased from 55.6% in 2024 to 35.2% in 2025, primarily because we adjusted production scheduling and inventory planning for certain TCM products in light of market demand and changes in product mix, while maintaining buffer capacity.
We expect to devote our productive forces to our own drug candidates and products as our clinical trials progress and after our commencement of commercialization.
During the Track Record Period, we produced (i) 4.4×10^17^ vg of FT-017 at our manufacturing facility calculated based on 2,209 vials produced, each containing 5mL at a concentration of 4×10^13^ vg/mL, and (ii) one batch of FT-003 production, with 3.5 L of drug substance at a concentration of 1.1×10^13^ vg/mL, representing a total viral yield of 3.86×10^16^ vg, representing a utilization rate of approximately 16%.
Business · 第 206 页
The relatively low utilization rate was primarily due to our production planning being driven by the development stage and clinical demand of our drug candidates.
Business · 第 206 页
Based on the foregoing, we believe our current production capacity is sufficient to support the clinical development and initial commercialization for these candidates, taking into account factors such as the estimated addressable patient populations, anticipated market penetration, the competitive landscape, the clinical profiles of the relevant candidates, and the expected timing of regulatory approvals and commercial launch.
During the Track Record Period, our utilization rate for automotive electronics products was relatively low.
Business · 第 147 页
Along with the fast industry iteration and rapid changes of the automotive electronics customers, we have adjusted our business strategy from providing products to a large range of customers to focusing on large-scale, leading customers in such industry, leading to the relatively low utilization rate during the transition period.
Business · 第 147 页
The utilization rate for our smart office products experienced a decrease from 2025 to the five months ended May 31, 2026, primarily due to the commissioning and adjustment period following the relocation of the relevant production lines commencing in early 2026.
The relatively low utilization rate of our Guangzhou clinical drug depot in 2023 was mainly due to (i) lower demand from South China, where fewer of our customers are based, and (ii) such depot having only commenced operations in 2021.
During the Track Record Period, the decrease in the utilization rates of our production lines was primarily due to lower production output in response to decreased customer demand for battery-swapping stations and battery-swapping modules.
Business · 第 148 页
In response to such market conditions, we adopted a measured and disciplined production approach by calibrating production output with actual customer demand and delivery schedules, rather than building inventory or scaling production ahead of confirmed orders.
Overall drug substance line utilization rate | 36.6% | 32.9% | 39.1%
Business · 第 195 页
The output of Chengdu facility shown in the table represents sample production for preclinical and clinical trials.
Business · 第 195 页
Following JZB30’s NDA approval in April 2025, we are preparing the Chengdu lines for dedicated-line commercial production of high-activity products to enable in-house commercial manufacturing of JZB30.
This margin contraction was primarily driven by substantial costs incurred from leasing computing resources as we continued to improve our products and services, while utilization of such computing resources was gradually ramping up.
Business · 第 140 页
We plan to maximize the productivity of our computing infrastructure through a combination of technology-driven improvements and intelligent scheduling strategies:
Business · 第 143 页
This approach improves our around-the-clock cluster utilization rate and spreads our fixed computing resource costs across a larger volume of billable activity, directly compressing per-unit costs.
Our manufacturing center has an annual aggregate production capacity of approximately 8,000 tonnes, covering a wide range of product categories such as infant formula milk powder, general dairy products, nutritional supplements, specialty dietary foods and probiotics.
Business · 第 145 页
The actual production volume of our production facilities amounted to approximately 2,274, 4,081 and 4,155 tonnes in 2023, 2024 and 2025, respectively, with an utilization rate^(1)^ of 29.3%, 52.5% and 53.5% during the same years.
Business · 第 145 页
We employ a flexible manufacturing strategy that combines in-house production with third-party contract manufacturing as well as procurement of finished products to optimize capacity utilization, ensure product quality, and allow us to respond efficiently to market demand.
The in-patient visits to Beijing TRT TCM Hospital increased throughout the Track Record Period, mainly attributable to our initiatives to develop its in-patient services.
Business · 第 153 页
Such medical institution ceased to provide in-patient healthcare services since 2023 to concentrate its medical resources on serving customers through out-patient healthcare services.
广东真健康医疗科技开发股份有限公司Guangdong True Health Medical Technology Development Co., Ltd.02697.HK
产能利用率下降且一条产线未用于量产
Our manufacturing capacity utilization rate decreased in 2025 as compared to 2024, primarily as (i) we were still at an early stage of commercialization and market development, resulting in relatively limited demand, and (ii) we took a prudent approach to prioritize the digestion of surplus inventory of surgical robots manufactured in 2024.
Business · 第 191 页
During the Track Record Period and up to the Latest Practicable Date, the Zhuhai manufacturing base operated two production lines for robotic products, one of which was used for commercial mass production, while the other was used for product validation, process optimization, trial production of new products and support of quality control activities and did not participate in routine mass production.
Business · 第 191 页
We plan to expand our production capacity by temporarily deploying the second production line into mass production and adding additional production lines as needed.
Therefore, with respect to the production of AKK AM06™, the utilization rates of our production facilities calculated following the conventional method was approximately 4.9% and 2.3% for 2024 and 2025, respectively.
Business · 第 184 页
In view of the foregoing, for such businesses, the utilization rates of our production facilities were calculated following the method set forth in note 1 above, which we believe can more appropriately and comparably reflect our actual use of the production facility at the current stage.
Business · 第 184 页
The utilization rate increased during the Track Record Period, primarily due to the advancement of our LBP pipeline projects and the increase in clinical-batch production, as well as the increase in the number of CRO/CDMO projects undertaken, which correspondingly increased the number of operating days of the production facility.
In preparation for the upcoming launch of more drug candidates, we are in the process of building a GMP-compliant workshop dedicated to ADC production.
Business · 第 168 页
Our estimated total capital expenditure for this expansion plan is RMB400 million.
The utilization rates of DS7 and DP4 in 2023 were 72.1% and 49.3%, respectively; DS7 and DP4 in 2024 were 100.0% and 79.2%, respectively; and DS7, DS11, DS12 and DP4 in 2025 were 94.2%, 75.8%, 76.2% and 91.8%, respectively.
Business · 第 143 页
The deployment rates are materially lower than the utilization rates.
Business · 第 143 页
The financial consequence is that fixed manufacturing overheads associated with the reserved but undeployed capacity are charged directly to cost of sales, which suppressed our reported gross margin during such periods.
The utilization rate of the three production lines was approximately 0.4% in 2024 and 0.2% in 2025.
Business · 第 201 页
With the ease of the COVID-19 pandemic and the normalization of national pandemic control, sales of azvudine have decreased significantly, resulting in lower market demand and consequently, lower capacity utilization.
Our DRAM IC testing capacity utilization rate was approximately 20%, while our DRAM module testing capacity utilisation rate was approximately 30%, as of the Latest Practicable Date.
Business · 第 197 页
For the three years ended December 31, 2025, our Jinhua testing facility was primarily used for internal R&D testing and was not engaged in large-scale commercial testing.
Due to the limitation on our production space, we generally can produce one unit of RC120 in a week.
Business · 第 234 页
As of December 31, 2023 and 2024 and June 30, 2025, we had one, two and two manufacturing staff, respectively. In the year ended December 31, 2023 and 2024 and the six months ended June 30, 2025, we produced nil, 12 and 6 units of RC120, respectively.
Business · 第 234 页
This vertical integration increases our production efficiency, reduces our dependence on third-party suppliers, and enables us to flexibly adjust production in response to changes in market demand for our products.
We had capacity utilization rates (i) for ethanol of 48.1%, 42.1% and 42.1% and (ii) for microbial protein of 51.4%, 46.1% and 49.8% for the years ended December 31, 2023, 2024 and 2025, respectively.
Financial Information · 第 237 页
Second, with more stable industrial off-gas supply and higher production efficiency, the capacity utilization rates of our existing production facilities are expected to improve, which is expected to increase production volume and dilute maintenance and cultivation costs, thereby improving unit economics and gross profit margin.
The relatively low utilization rate of aerial work platforms in 2024 and 2025 was primarily due to initial commencement of production at our manufacturing facility in Mexico, which was because (i) our operational efficiency is temporarily affected by the differences of local regulatory framework and commercial practices.
Business · 第 130 页
We plan to enhance and upgrade our production capabilities primarily for high-end mining equipment, forklifts and aerial work platforms, as our existing production lines cannot fully meet the market demand as described above.
Business · 第 131 页
The upgrade of production lines enable us to consolidate underutilized lines to enable flexible production of multiple product types.