客户集中及依赖主要客户

In 2021, 2022, 2023 and the six months ended June 30, 2024, revenue generated from our five largest customers in each year/period accounted for 56.4%, 50.3%, 34.4% and 35.9%, respectively, of our revenue during those periods.

Partially in response to this trend and as we planned to reduce the risk associated with reliance on a limited number of large municipal level customers, we have refined our sales strategy with a more granular approach in addition to the existing centralized bulk sales to municipal healthcare administrators who determine the deployment of our products and services at county, district and community levels.

We started to directly sell to an increased number of county, district and community-level healthcare administrators, which helps reduce the risk associated with reliance on a limited number of large municipal-level customers.

Revenue generated from each of our largest customer for the years ended December 31, 2021, 2022, 2023 and the six months ended June 30, 2024 accounted for 32.7%, 10.2%, 32.1% and 27.1% of our total revenue for the respective periods.

Revenue generated from our five largest customers in each period during the Track Record Period accounted for 63.5%, 39.7%, 56.3% and 49.1% of our total revenue for the respective periods.

and (ii) a decrease in revenue contribution from certain major customer affected by their product launch schedules, which, in comparison with our revenue growth of 25.2% from the six months ended June 30, 2023 to the same period in 2024, indicates our reduced reliance on certain major customers, which we believe would contribute to our overall sustained business growth.

In 2021, 2022 and 2023 and for the six months ended June 30, 2024, revenue generated from our top five customers in each of those years accounted for 52.2%, 41.5%, 33.7% and 36.2% of our total revenue, respectively, while revenue generated from our largest customer in each of those years alone accounted for 31.9%, 14.9%, 9.4% and 12.9% of our total revenue during 2021, 2022 and 2023 and for the six months ended June 30, 2024, respectively.

Jinkang An contributed 100.0%, 77.0%, 53.3%, 54.7% and 8.4% of our revenue generated from precision content services in 2021, 2022 and 2023 and for the six months ended June 30, 2023 and 2024, respectively.

Although we used to derive a significant portion of revenue of precision content services from Jinkang An in 2021, 2022 and 2023, we had been diversifying our customer base during the Track Record Period.

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.

Revenue generated from our top five wholesale customers for FY2021, FY2022, FY2023 and 6M2024 amounted to approximately HK$92.1 million, HK$92.2 million, HK$113.4 million and HK$44.7 million, representing approximately 48.9%, 44.3%, 45.1% and 38.0% of our total revenue for each of the corresponding years/period, respectively, while revenue generated from our largest wholesale customer, namely Customer A for FY2021, FY2022 and FY2023 and 6M2024 amounted to approximately HK$90.3 million, HK$90.2 million, HK$110.7 million and HK$43.8 million, representing approximately 47.9%, 43.3%, 44.0% and 37.2% of our total revenue for each of the corresponding years/period, respectively.

Despite the relatively large portion of revenue contribution from Customer A during the Track Record Period, our Directors are of the view that our business relationship with Customer A is sustainable and our business dealings with Customer A do not give rise to excessive risks in our business operations for the following reasons:

In light of the above reasons, our Directors are of the view that our business relationship with Customer A is sustainable in nature and see no compelling reasons for Customer A to terminate our business relationship or substantially decrease the purchase from us in the foreseeable future.

We generated revenue of RMB393.0 million, RMB433.6 million, RMB620.8 million and RMB7.3 million from our five largest customers in each year/period during the Track Record Period, which accounted for 75.0%, 71.7%, 69.3% and 58.2% of our total revenue for the respective years/periods.

We generated revenue of RMB117.4 million, RMB134.2 million, RMB261.8 million and RMB4.9 million from the largest customer in each year/period during the Track Record Period, which accounted for 22.4%, 22.2%, 29.2% and 38.9% of our total revenue for the respective years/periods.

Our major customers are mainly vehicle manufacturers, including publicly listed companies and their subsidiaries, state-owned enterprises, and reputable companies.

Revenues generated from our five largest customers in each of 2021, 2022, 2023, and the six months ended June 30, 2024 accounted for 79.4%, 83.3%, 87.2% and 89.6%, respectively, of our revenue during the same years/period.

Revenue generated from each of our largest customer for the years ended December 31, 2021, 2022, 2023 and the six months ended June 30, 2024 accounted for 60.0%, 64.0%, 71.9% and 75.3%, respectively, of our revenue during the same years/period.

Despite the relatively high revenue contribution from the Related Parties to our Group during the Track Record Period, there is no undue reliance on the Related Parties to conduct our business.

The revenue we derived from our five largest customers of each of the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024 accounted for approximately 23.2%, 17.6%, 18.7% and 21.3% of our total revenue for each of the respective year/ period.

Our five largest customers of each year/period of the Track Record Period primarily consist of provincial-dealers, except for an online retailing platform as one of our five largest customers in 2021 and six months ended June 30, 2024, and one franchisee as one of our five largest customers in 2023.

During the Track Record Period, we were not dependent on any single customer.

The aggregate sales to our five largest customers, calculated on the group level with entities controlled by the same group combined together, for 2021, 2022, 2023 and the six months ended June 30, 2024 were RMB725.9 million, RMB539.4 million, RMB571.6 million and RMB328.6 million, respectively, representing 55.5%, 47.9%, 44.4% and 46.8% of our revenue for the respective period.

Sales to our largest customer for 2021, 2022, 2023 and the six months ended June 30, 2024 were RMB330.9 million, RMB263.1 million, RMB281.5 million and RMB151.8 million, respectively, representing 25.3%, 23.4%, 21.9% and 21.6% of our revenue for the respective period.

The aggregate sales to our five largest customers, calculated on the group level with entities controlled by the same group combined together, for 2021, 2022, 2023 and the six months ended June 30, 2024 were RMB725.9 million, RMB539.4 million, RMB571.6 million and RMB328.6 million, respectively, representing 55.5%, 47.9%, 44.4% and 46.8% of our revenue for the respective period.

In each year/period of the Track Record Period, revenue from our five largest customers amounted to RMB147.5 million, RMB192.1 million, RMB296.0 million and RMB44.4 million, respectively, accounting for 44.8%, 53.5%, 56.7% and 69.1%, respectively, of our total revenue for the same years/periods.

According to Frost & Sullivan, top five hydrogen fuel cell vehicles/hydrogen fuel cell systems providers, which are our major customer types, accounted for over 40% of total market share in terms of sales volume in 2023. Accordingly, we rely on our major customers.

The number of our customers increased from 103 in 2021 to 128 in 2022, and further to 142 in 2023.

Revenue from our five largest customers in each period of the Track Record Period accounted for 71.8%, 73.2%, 73.5% and 77.1% of our total revenue, respectively.

As of May 31, 2024, we had maintained business relationships with our five largest customers for four to nine years.

Among our five largest customers during the Track Record Period, Customer A, Customer B, Customer D and Geely Related Group were top-tier enterprises in the industries in which they operate, according to CIC.

Revenue from our five largest customers in each year/period during the Track Record Period represented 3.2%, 5.4%, 8.3% and 10.5% of our total revenue for the year ended December 31, 2021, 2022, 2023 and the four months ended April 20, 2024, respectively.

Revenue from our largest customer in each year/period during the Track Record Period represented 1.3%, 2.1%, 3.0% and 5.0% of our total revenue for the year ended December 31, 2021, 2022, 2023 and the four months ended April 20, 2024, respectively.

During the Track Record Period, our customers of sales of products primarily consisted of consumers who buy our products through third-party e-commerce platforms, and customers of our logistics solutions primarily consisted of sellers on e-commerce platforms.

Our revenue generated from our largest customer in each of the years ended December 31, 2022 and 2023 and the five months ended May 31, 2024 amounted to RMB7.7 million, RMB21.8 million, and RMB10.0 million, accounting for 23.4%, 32.7%, and 34.9% of our total revenue, respectively; revenue from our five largest customers in aggregate in each of the years ended December 31, 2022 and 2023 and the five months ended May 31, 2024 amounted to RMB26.8 million, RMB58.9 million, and RMB24.0 million, accounting for 81.6%, 88.5%, and 84.0% of our total revenue, respectively, indicating a relatively high customer concentration.

According to Frost & Sullivan, it is common for biopharmaceutical companies, particularly those with single approved product and in the early commercialization stage, to depend heavily on a limited number of customers.

In view of this, we plan to actively expand our customer base in overseas markets in the future.

In the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024, the aggregate revenue generated from our five largest customers in each period during the Track Record Period amounted to RMB1,739.2 million, RMB11,253.8 million, RMB5,627.4 million and RMB2,159.8 million, respectively, representing 42.9%, 80.0%, 64.5% and 60.5% of our total revenue for the respective periods.

For years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024, revenue generated from CATL Group amounted to RMB1,160.4 million, RMB7,486.9 million, RMB2,648.0 million and RMB1,123.1 million, respectively, representing 28.6%, 53.2%, 30.3% and 31.5% of our revenue for the respective periods.

According to Frost & Sullivan, customer concentration is an industry norm in the LFP cathode material industry.

In 2021, 2022 and 2023 and for the six months ended June 30, 2024, the aggregate revenue generated from our five largest customers were RMB283.1 million, RMB482.1 million, RMB1,067.0 million and RMB727.0 million, representing 60.7%, 53.2%, 68.8% and 77.9% of our revenue, respectively.

We generated a substantial amount of RMB627.3 million and RMB351.6 million, representing 40.4% and 37.6% of our revenue, from CARIZON in 2023 and for the six months ended June 30, 2024, respectively.

Saving for Volkswagen Group and SAIC, both Shareholders of the Company, to the best of our knowledge, during the Track Record Period and up to the Latest Practicable Date, our five largest customers were independent third parties.

Revenue generated from our five largest customers in each of 2021, 2022 and 2023 and the four months ended April 30, 2024 accounted for 20.7%, 18.2%, 17.6% and 15.5%, respectively, of our total revenue during those respective periods.

Revenue generated from our largest customer in each of 2021, 2022 and 2023 and the four months ended April 30, 2024 accounted for 8.4%, 7.3%, 7.1% and 6.1%, respectively, of our total revenues during those respective periods.

Except for Customer E who was our direct sales customers, all of our five largest customers in each of 2021, 2022 and 2023 and the four months ended April 30, 2024 were our distributors.

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.

For FY2021/22, FY2022/23 and FY2023/24, the percentage of our total revenue attributable to our top customer for each year amounted to approximately 32.4%, 24.0% and 32.6%, respectively.

As advised by Frost & Sullivan, client concentration is a common occurrence within the civil engineering sectors, in both public and private sectors.

While it appears that a majority of our revenue was derived from a few customers during the Track Record Period, our Directors consider that our Group does not exhibit over dependency on any of our major customers as our Group undertook projects with considerably different scales.

In 2021, 2022, 2023 and the three months ended March 31, 2024, revenue from our five largest customers, accounted for 55.4%, 29.2%, 11.8%, and 11.0% of our total revenue, respectively, with our largest customer contributing 24.4%, 13.9%, 6.5%, and 5.4% of our total revenue during the same periods.

Specifically, in 2021, 2022, 2023 and the three months ended March 31, 2024, revenue from our five largest ODM customers was RMB374.1 million, RMB224.2 million, RMB186.5 million, and RMB49.7 million, respectively, representing 95.4%, 94.3%, 91.8%, and 94.0% of our total revenue from ODM business for the same periods.

Over the years, we have built long-term business relationships with our major ODM customers, with our collaboration with most of our five largest ODM customers in each period of the Track Record Period spanning over six years.