During the Track Record Period, our in-house production was primarily focused on smartphones, while our feature phones, our IoT products and others as well as a portion of our smartphones, were primarily manufactured by ODM and OEM providers, which are generally located in Chinese Mainland.
Business · 第 121 页
We engage ODM and OEM providers primarily to (i) utilize external capacity to address seasonal order fluctuations and reduce recruitment pressure; (ii) produce certain new products at their initial testing stages and products with smaller volumes that we prefer not to mass-produce in-house; and (iii) benefit from our ODM and OEM providers’ specialized expertise in certain areas.
Business · 第 124 页
We carefully manage and monitor the performance of our ODM and OEM providers, and require our ODM and OEM providers to comply with our internal guidelines and policies.
In our SiPh business, we engaged a third-party contract manufacturer (Supplier G, see “— Supply Chain — Major Suppliers”) to perform assembly and manufacturing work at their production facilities in 2025 and four months ended April 30, 2026.
Business · 第 157 页
In 2025 and for the four months ended April 30, 2026, outsourced manufacturing service costs accounted for approximately 20.3% and 24.3% of our purchase for the year/period, respectively.
Business · 第 158 页
We did not have such outsourced arrangement in 2023 and 2024.
In 2023, 2024 and 2025 and for the six months ended June 30, 2026, we cooperated with four, six, nine and eight OEM/ODM partners, respectively, and fees paid to our OEM/ODM partners accounted for 1.2%, 2.8%, 3.4% and 4.2% of our total purchase amounts for the same years, respectively.
Business · 第 171 页
Leveraging OEM/ODM partners’ manufacturing expertise, cost advantages, and scalability, such collaboration enables us to optimize production efficiency and reduce capital investment, while ensuring the quality and performance standards of our products.
Given the scale of our business, the diversity of our product portfolio and our broad customer base, we selectively perform packaging, testing, SMT and assembly in house at our facilities in China and Brazil while outsourcing the remainder to third-party OSAT service providers, which enhances the scalability and flexibility of our operations.
Business · 第 173 页
We believe it is generally feasible to identify and qualify additional providers if needed. In addition, we have built our own back-end manufacturing capacities in the Chinese mainland and Brazil, which give us internal flexibility to handle packaging, testing and assembly processes in-house.
广西玉柴船电动力股份有限公司Guangxi Yuchai Marine and Genset Power Co., Ltd.
委聘合同制造商生产发动机系列
During the Track Record Period, we procured 14 series of finished engines from two contract manufacturers, including seven series of medium- to light-duty engines and six series of marine engines from a GY Entity and one series of marine engines from GYMCL, under such contract manufacturing arrangements.
Business · 第 124 页
Throughout this process, we retain all intellectual property rights, which represent the core value of our products.
Business · 第 124 页
In terms of quality control, we have the right to conduct on-site quality inspections at the contract manufacturers' facilities to ensure compliance with our quality control standards, including compliance with our engine designs and specifications, production processes and product quality standards.
The design, assembly and production of our hardware products (including turnkey appliances) are conducted under a hybrid model combining OEM server manufacturers and our own facilities.
Business · 第 190 页
In all cases, our staff supervise and manage the on-site process to ensure quality and schedule control.
In terms of total production volume, approximately 82.9%, 82.5%, 81.8%, and 80.3% of our products were manufactured by third-party partners in 2023, 2024, 2025, and for the six months ended June 30, 2026, respectively, with the remainder independently and entirely manufactured at our in-house facilities.
Business · 第 172 页
We principally engage in the R&D and design of our products, while the manufacturing of our products is primarily carried out by third-party manufacturing partners.
Business · 第 172 页
To safeguard our core technologies, we have established a comprehensive intellectual property protection framework covering ex-ante segregation, in-process monitoring and ex-post controls.
Our manufacturing strategy employs in-house production as the primary model, supplemented by outsourced production, allowing us to flexibly adjust based on downstream order demands and production plans.
Business · 第 163 页
To reduce production costs, we also outsource certain components of our finished products, including electronic parts, silicone parts, plastic parts and packaging parts.
Business · 第 173 页
All suppliers covering core raw materials, key components and outsourced finished goods must pass an on-site audit by our supplier evaluation team before approval.
For our pre-packaged products under Yuen Kee Taste, we also outsource part of production to our connected parties, Huifengyuan, Fanlaizhiwei and Hunan Hufeng, primarily covering frozen dumplings, which represent a key product category under Yuen Kee Taste, as well as certain meat fillings and wrappers used in our pre-packaged products.
Business · 第 138 页
For goods produced by our outsourcing suppliers, we have also implemented systematic control measures to ensure compliance with our quality and food safety standards, including designating responsible departments to oversee procurement, quality control and compliance, establishing prescribed procurement and replenishment cycles of seven to 20 days, maintaining safety stock levels of four to seven days for most materials and approximately three months for pre-packaged products, imposing stringent qualification and admission requirements, and conducting periodic performance assessments.
We focus on the design, R&D and sales of our products while outsourcing a majority of wafer manufacturing, packaging and testing processes to trusted third-party partners.
Business · 第 128 页
Prior to the commencement of operation of our Zhuhai factory, our WLCSP products were manufactured in an outsourced manner.
Business · 第 129 页
Unlike fabless companies that typically outsource all packaging and testing processes, we possess in-house packaging and testing capabilities for our WLCSP products, allowing us to achieve cost optimization and performance improvement.
We operate a dual-sourcing manufacturing strategy that combines in-house production with OEM manufacturing.
Business · 第 144 页
During the Track Record Period, we engaged one OEM service provider in Changzhou, Malaysia and Vietnam, respectively, which have been integrated into our overall production and supply system.
Business · 第 146 页
To maintain thorough control over product integrity, we procure and supply the critical raw materials directly to the OEM supplier for production.
In addition, we also source a portion of finished products from qualified third-party manufacturers and engage contract manufacturers to produce a portion of our products.
Business · 第 141 页
For all third-party sourced products or products produced by the contract manufacturers, we maintain stringent supplier qualification and quality oversight processes to ensure full compliance with our requirements.
广州视源电子科技股份有限公司Guangzhou Shiyuan Electronic Technology Company Limited
主要委托全球第三方合作工厂生产
We research and develop our products in-house and primarily engage specialized third-party partner factories around the world to produce them according to our proprietary designs and standard operating procedures (“SOPs”).
In order to optimise the allocation of our production resources towards our main products while diversifying our product portfolio as well as to assess the market potential of jelly products before committing further capital to expand production capacity, we engaged OEM suppliers for the production of our hog plum jelly in October 2024.
Business · 第 127 页
During the Track Record Period, the procurement amount from our OEM suppliers was nil, RMB68,277.9 and RMB0.5 million respectively, accounting for nil, approximately a minimal percentage and 0.3% of our cost of sales for the years indicated respectively.
Business · 第 127 页
Our OEM suppliers provide services for our hog plum jelly product so that we can expand customer choices without incur additional costs for a new production line.
In 2023, 2024 and 2025, products manufactured by CMOs accounted for approximately 60.9%, 44.2% and 36.9% of our total revenue attributable to maternity and supplements business line, respectively.
Business · 第 145 页
Our selection of CMOs is based on stringent quality control standards, compliance with food safety regulations, and geographic proximity to key markets.
Business · 第 145 页
We maintain full oversight of product specifications, raw material sourcing and quality assurance protocols to ensure consistency across all production channels.
In 2023, 2024 and 2025, our outsourcing services costs amounted to RMB31.6 million, RMB24.3 million and RMB40.9 million, respectively, which accounted for 9.0%, 7.4% and 11.8% of our cost of sales during the same periods.
Business · 第 175 页
We require our contractors to comply with our internal policies and closely monitor their performance.
Business · 第 175 页
To ensure our contract manufacturers comply with all relevant regulations and protect our intellectual property, we have established a robust control framework.
We operate our proprietary brand business under an asset-light approach and engage independent manufacturers to produce our proprietary brand collections on an OEM basis.
Business · 第 167 页
Our procurement team works closely with our OEM suppliers during each step of the process and conducts quality checks upon final product delivery to ensure that products manufactured by our suppliers meet our quality control standards.
Business · 第 153 页
We generally enter into framework agreements with our OEM suppliers with terms ranging from 12 to 18 months, and place orders as necessary.
During the Track Record Period and up to the Latest Practicable Date, we collaborated with contract manufacturers for the production of our hardware products.
Business · 第 176 页
Our cost of sales attributable to outsourced production amounted to RMB63.5 million, RMB137.7 million and RMB195.8 million, representing approximately 44.3%, 57.9% and 71.7% of our cost of sales, for the same years, respectively.
Business · 第 177 页
Contract manufacturers are required to manufacture our products strictly in accordance with our proprietary hardware design and product specifications.
Our OEM partners provide non-powered chassis platforms and assemble the final vehicles under our integration requirements. We pay OEMs a contract manufacturing fee.
Business · 第 132 页
We maintain control over key hardware technologies while partnering with selected OEMs for manufacturing.
Financial Information · 第 208 页
This model reduces our upfront capital expenditure and gives customers more flexibility, especially in vehicle selection, while ensuring our system performance and safety standards are met through design validation.
For products with higher technological content, more complex production processes, and stronger intellectual property protection requirements, we adhere to in-house production.
Business · 第 151 页
For products manufactured by third-party manufacturing partners, non-processing production activities, including product design, product R&D, and quality inspection, are still independently carried out by us.
Business · 第 151 页
We have entered into framework manufacturing agreements with our major third-party manufacturing partners, which set out general terms in respect of key matters such as product quality control, delivery, and confidentiality obligations.