集中度显著变动

For the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024, the revenue from our five largest customers for the respective years/period in aggregate accounted for 78.0%, 42.7%, 37.0% and 39.8% of our total revenue, respectively, and our largest customer for the respective years/period contributed 31.7%, 16.6%, 11.4% and 10.5% of our total revenue, respectively.

As such, Customer E placed a bulk order for our safety defense system in 2021.

We had maintained close and sustainable business relationships with our five largest customers in each year/period of the Track Record Period.

In 2021, 2022, 2023 and the six months ended June 30, 2024, our revenue from the five largest customers in each year/period during the Track Record Period in total was RMB49.6 million, RMB50.7 million, RMB36.7 million and RMB24.9 million, respectively, accounting for 28.5%, 21.0%, 12.8% and 20.7% of our total revenue, respectively.

The single largest customer in 2022 and 2023 was Customer B, one of our distributors and an exam technology and education solution provider in Russia.

To the best of our knowledge, all of our five largest customers in each year/period during the Track Record Period were independent third parties.

Our revenue generated from our five largest customers for each year/period during the Track Record Period accounted for 22.7%, 25.5%, 34.3% and 38.5%, respectively, of our revenue during the same periods.

Customer-Supplier Group I and Customer H continued to grow with us and have experienced significant growth in business with us throughout the years and have become our two largest customers for the year ended December 31, 2023 and the three months ended March 31, 2024.

We have established and maintained stable and good relationships with our five largest customers for each year during the Track Record Period, having a relationship of five years or above with a majority of them.

Sales amount generated from our five largest customers in each year of the Track Record Period amounted to RMB197.8 million, RMB192.0 million and RMB287.1 million, respectively, representing 43.0%, 37.2% and 35.4% of our total sales amount for the same years, respectively; sales amount generated from our largest customer in each year of the Track Record Period amounted to RMB58.5 million, RMB63.0 million and RMB80.2 million, respectively, representing 12.7%, 12.2% and 9.9% of our total sales amount for the same years, respectively.

Sales amount generated from our five largest customers in each year of the Track Record Period represented 43.0%, 37.2% and 35.4% of our total sales amount for the same years, respectively.

we have also been actively diversifying our own customer portfolio by pursuing direct relationships with enterprise-level users, where appropriate, and reduce any reliance on a limited number of system integrators, which can further help mitigate concentration risk and exposure to specific payment practices.

For each of the years ended December 31, 2021, 2022 and 2023, revenue from our five largest customers accounted for 41.1%, 43.7% and 62.3% of our total revenue, respectively, and revenue from our largest customer accounted for 11.7%, 12.4% and 20.1% of our total revenue, respectively.

The percentage of our five largest customers’ revenue contribution increased substantially for the year ended December 31, 2023 as compared to the revenue contribution for the years ended December 31, 2021 and 2022, primarily due to the commencement of our cooperation with Customer L, who mainly used mobile number-related three-factor authentication API.

For example, in 2023, while we had approximately 10,700 active registered paying customers, the top 1% of our active registered paying customers accounted for 97.3% of our revenue.

For the years ended December 31, 2021, 2022 and 2023, sales to our five largest customers in each year were RMB731.5 million, RMB583.2 million and RMB581.2 million, representing 26.3%, 18.6% and 21.8% of our total revenue for the same periods, respectively, and sales to our single largest customer in each year accounted for 13.6%, 6.3% and 8.1% of our total revenue for the same periods, respectively.

We do not rely on any particular customers to purchase our products under our self-produced products and product trading segments, and the overall market demand for our products is not materially affected by any particular customers' business decision to increase or decrease their purchases from us during a particular period.

None of our Directors or their respective associates or any Shareholder, who to the knowledge of our Directors, owns more than 5% of the issued Shares immediately after completion of the Global Offering, had any interest in any of our five largest customers during the Track Record Period.

The revenue generated from our five largest customers in 2021, 2022 and 2023 was RMB38.8 million, RMB66.1 million and RMB63.3 million, respectively, representing approximately 61.8%, 49.6% and 36.3% of our total revenue in the same years, respectively.

During the Track Record Period, our customers consisted primarily of China- and U.S.-based biotechnology and pharmaceutical companies.

Our customer retention rate was approximately 67.5%, 51.4% and 64.9%, respectively, in 2021, 2022 and 2023.

In each year of the Track Record Period, revenue from our five largest customers amounted to RMB143.3 million, RMB133.5 million and RMB129.6 million, respectively, accounting for 33.1%, 29.2% and 23.2%, respectively, of our total revenue.

We have a broad base of individual customers and we believe we do not have individual customer concentration risks.

Our five largest customers, including advertising customers under our online reading platform services business and our digital marketing services business and a game operator under our online games publishing services, accounted for approximately for 33.1%, 29.2% and 23.2% of our total revenue for the years ended December 31, 2021, 2022 and 2023, respectively.

For each year during the Track Record Period, our five largest customers generated RMB110.8 million, RMB101.5 million and RMB153.3 million of revenue, respectively, accounting for 22.0%, 18.4% and 15.2% of our total revenue for the same years, respectively.

Leveraging our effective business model and strong service capabilities, we have established stable relationships with our KA customers, with an average of over two years of cooperation history as of December 31, 2023.

For our marketing service, we experienced an upward trend in the number of KA customers, with 27 KA customers in 2021, 28 KA customers in 2022 and 47 KA customers in 2023.

For the years ended December 31, 2020, 2021, 2022 and for the nine months ended September 30, 2023, the aggregate revenue generated from our top five customers in each year/period of the Track Record Period amounted to RMB61.1 million, RMB71.7 million, RMB63.1 million and RMB70.5 million, which accounted for 10.4%, 11.1%, 8.5% and 9.6% of our total revenue, respectively.

For the same periods, revenue from the largest customer amounted to RMB26.0 million, RMB36.7 million, RMB17.5 million and RMB21.8 million, which accounted for 4.4%, 5.7%, 2.4% and 3.0% of our total revenue, respectively.

To the best of our knowledge, during the Track Record Period and up to the Latest Practicable Date, our customers were Independent Third Parties.

For the years ended December 31, 2020, 2021, 2022 and the six months ended June 30, 2023, the total revenue attributable to our top five customers amounted to RMB49.8 million, RMB174.5 million, RMB222.1 million and RMB90.3 million, representing 53.9%, 63.5%, 77.0% and 85.4% of our total revenue, respectively, while total revenue attributable to our largest customer for the same year/period was RMB13.0 million, RMB55.8 million, RMB94.5 million and RMB33.3 million, accounting for 14.0%, 20.3%, 32.8% and 31.4% of our total revenue, respectively.

Our relatively concentrated customer base was mainly attributable to our undertaking of more large scale projects during the Track Record Period, of which, we allocated the majority of our resources, capacity and available manpower to such projects at the relevant time.

However, our top five customers are generally different for each of the year/period during the Track Record Period and we do not rely on any of our major customers.

During the Track Record Period, revenue from sales to our five largest customers in that year/period amounted to RMB143.6 million in 2020, RMB167.9 million in 2021, RMB279.3 million in 2022 and RMB173.9 million in the six months ended June 30, 2023, which accounted for 33.3%, 35.1%, 51.0% and 56.2% of our total revenue, respectively.

Since we are the largest service provider in the pledged vehicle monitoring service market in China, we typically established relationship and subsequently became acquainted with our five largest customers who valued our national service coverage and industry experience in each of the years ended December 31, 2020, 2021 and 2022 and the six months ended June 30, 2023.

As of the Latest Practicable Date, none of our Directors, their close associates or any Shareholders who, to the knowledge of our Directors, owned more than 5.0% of our issued share capital had any interest in any of our five largest customers during the Track Record Period (other than Changjiu Industrial).

The revenue generated from our five largest customers in each year/period during the Track Record Period in aggregate amounted to approximately RMB116.8 million, RMB123.9 million, RMB115.6 million and RMB53.3 million, representing approximately 59.6%, 61.0%, 51.0% and 46.8% of our total revenue, respectively, whereas revenue generated from our largest customer in each year/period during the Track Record Period accounted for approximately 21.2%, 24.0%, 23.8% and 22.6%, respectively, of our total revenue.

In general, we have achieved a high customer retention rate, as evidenced by the fact that approximately 46.2%, 45.7%, 48.1% and 69.7% of our customers for FY2020, FY2021, FY2022 and 6M2023 respectively were repeat customers (being customers in a particular year/period during the Track Record Period who engaged us for our services or purchased our software at least once in the three financial years immediately preceding that particular year) and they contributed revenue of approximately RMB163.0 million, RMB174.6 million, RMB198.3 million and RMB88.1 million, representing approximately 83.3%, 85.9%, 87.6% and 77.4%, respectively, of our total revenue during FY2020, FY2021, FY2022 and 6M2023.

Our Directors confirm that during the Track Record Period and up to the Latest Practicable Date, our Group had not experienced any major disruption in business due to material delays or defaulting payments by our customers owing to their financial difficulties.

In each of 2020, 2021 and 2022 and the six months ended June 30, 2023, sales to our largest customer for the respective periods accounted for 38.6%, 24.5%, 11.7% and 12.7% of our revenue, respectively, while our five largest customers for the same periods accounted for 69.7%, 51.0%, 38.2% and 37.6% of our revenue, respectively.

We have a diverse and balanced EV battery customer base, covering domestic and overseas established automotive companies as well as emerging EV manufacturers.

In each of 2020, 2021 and 2022 and the six months ended June 30, 2023, sales to our largest customer for the respective period accounted for 38.6%, 24.5%, 11.7% and 12.7% of our revenue during the respective period, while our five largest customers for the respective periods accounted for 69.7%, 51.0%, 38.2% and 37.6% of our revenue during the respective period.

For 2020, 2021, 2022 and the five months ended 31 May 2023, our sales to the top five customers for each respective year or period accounted for 8.6%, 10.1%, 11.9% and 16.3% of our total revenue, respectively.

According to the Frost & Sullivan Report, it is an industry norm for a PRC livestock and poultry farming enterprise to sell its products to third-party dealers, primarily because (i) dealers represent one of the major players in the downstream livestock and poultry industry with extensive distribution channels and (ii) dealers are able to provide more flexibility as to timing, location and volume of sales as compared to other downstream players, such as slaughterhouses.

For each of the years/periods during the Track Record Period, none of the Directors, Supervisors, their respective associates or Shareholders who own 5% or more of the Company’s issued share capital had any interest in the top five customers.

The revenue generated from our top five customers in each year/period during the Track Record Period amounted to approximately RMB3,043.1 million, RMB2,236.1 million, RMB3,637.3 million and RMB1,390.6 million, representing 29.9%, 16.8%, 28.3% and 26.5% of our total revenue for the same periods.

Our sales to the top five customers in each year during the Track Record Period were no more than 30% of our total sales for the same periods.

Most of our large customers have engaged in projects with us multiple times, and we have established long-standing cooperative relations with more than 50 existing customers for more than five years.

During the same periods, our five largest ultimate customers for each year/period contributed to 51.9%, 39.8%, 34.1% and 45.7%, respectively, of our total revenue, and our largest ultimate customer for each year/period accounted for 14.5%, 13.1%, 8.9% and 13.2%, respectively, of our total revenue.

Since our inception in 2013 and up to June 30, 2023, nearly all our customers for bioconjugate discovery or integrated projects advancing their bioconjugate candidates along the development process have stayed with us.

To the best of our knowledge, as of the Latest Practicable Date, we were not aware of any information or arrangement that would lead to termination of relationships between any key direct or ultimate customers and its counterparty (i.e., the Remaining WXB Group or our Group).

Revenue generated from our five largest customers in each year or period during the Track Record Period amounted to approximately RMB54.1 million, RMB41.4 million, RMB55.4 million and RMB24.2 million, representing approximately 52.2%, 26.2%, 26.8% and 32.2% of our total revenue, respectively.

Our five largest customers in each year or period during the Track Record Period are Independent Third Parties.

However, since no long-term agreements have been entered into between our Group and the customers, there is no assurance that our customers will continue to provide us with business after the completion of branding, advertising and marketing services.

In 2019, 2020, 2021, 2022 and the six months ended June 30, 2023, our five largest customers in each year/period during the Track Record Period generated RMB288.8 million, RMB163.2 million, RMB408.4 million, RMB153.7 million and RMB68.0 million of revenue, accounting for 10.6%, 8.6%, 15.3%, 6.1% and 5.4% of our total revenue for the same periods, respectively.

As of June 30, 2023, we had an average of over 2 years of business relationship with our top five customers in 2019, 2020, 2021, 2022 and the six months ended June 30, 2023, all of whom were customers of our advertising and system support services, merchandise wholesale and/or mobile device distribution services categorized under others.

As of the Latest Practicable Date, save for Alipay China, none of our Directors, their close associates or any of our Shareholder which to the best knowledge of our Directors owned more than 5% of the issued share capital of our Company, had any interest in our top five customers.

Our five largest customers in each of 2020, 2021, 2022 and the six months ended June 30, 2023 contributed to 44.6%, 39.4%, 25.7% and 29.9% of our total revenue for their respective period.

As we expand our relationships with more e-commerce platforms, we are able to access additional merchants on these platforms.

(iv) continued efforts in developing non e-commerce customers to further diversify source of parcels.