客户与供应商重叠

During the Track Record Period and up to the Latest Practicable Date, among our top five customers and suppliers in each year/period, we had a total of seven overlapping customers and suppliers.

Our Directors confirmed that negotiations of the terms of our sales to and purchases from the above overlapping customer and supplier were conducted independently, and these sales and purchases were independent from one another.

As advised by Frost & Sullivan, it is not uncommon to have overlapping customers/suppliers in the industry.

Among our five largest customers during the Track Record Period, Customer A, Customer B, Customer C, Customer D, Customer F and Customers G are also our suppliers.

Our aggregate sales amount to certain subsidiaries of Customer B was RMB1,308.1 million, RMB1,418.3 million and RMB861.0 million in 2023, 2024 and the ten months ended October 31, 2025, respectively, accounting for 10.3%, 9.2% and 7.6% of our total revenue for the corresponding periods.

According to CIC, overlap between customers and suppliers is not uncommon in the power industry.

During the Track Record Period, two entities (Entity C1 and Entity C2) that are controlled by Customer C — one of our five largest customers — acted as both our customers and our suppliers.

All of our sales to and purchases from these supplier-customers were conducted in the ordinary course of business under normal commercial terms, consistent with those applied to our other suppliers and on an arm's length basis.

In 2022, 2023, 2024 and the nine months ended September 30, 2025, (i) the revenue that we derived from our overlapping customer-suppliers amounted to RMB2.7 million, RMB34.6 million, RMB34.0 million and RMB17.7 million, respectively, amounting to 0.9%, 9.2%, 6.8% and 7.1% of our total revenue, respectively;

In 2022, 2023, 2024 and the nine months ended September 30, 2025, our sales amount attributable to these suppliers amounted to RMB148.5 million, RMB217.8 million, RMB426.7 million and RMB629.4 million, which accounted for 2.8%, 3.8%, 6.2% and 10.4% of our sales amount, respectively; and our purchase amount attributable to these customers amounted to RMB8.7 million, RMB1.3 million and RMB2.7 million and RMB0.3 million, which accounted for 0.3%, 0.0%, 0.1% and 0.0% of our purchases, respectively.

Our Directors confirm that all transactions with Customer B and Customer F were conducted in the ordinary course of business, on normal commercial terms, and were not interconditional.

According to F&S, the overlapping of our customers and suppliers is common in the highspeed data communication and electrical power transmission industry, where companies often operate multiple business lines across various parts of the value chain.

During the Track Record Period, certain of our five largest customers were also our suppliers, details of which were explained as below:

Customer J, one of our five largest customers in 2022, was also Supplier J, one of our five largest suppliers for each of 2022 and 2023.

The overlapping of certain customers and suppliers during the Track Record Period arises from the nature of our customer base and the semiconductor industry ecosystem.

Topsun Group, one of our five largest customers in each year or period during the Track Record Period, was also one of our five largest suppliers in each respective periods.

These purchases amounted to RMB83.1 million, RMB33.7 million, RMB48.1 million and RMB20.9 million in 2022, 2023, 2024 and the eight months ended August 31, 2025, respectively, representing 14.2%, 12.8%, 11.2% and 7.8% of our total purchase amounts in the same periods.

All of our sales to and purchases from Topsun Group were conducted in the ordinary course of business under normal commercial terms and on an arm’s length basis.

During the Track Record Period, we had three overlapping customers and suppliers within our top five customers and suppliers of each year/period of the Track Record Period.

The total revenue we generated from the overlapping customers and suppliers amounted to RMB1,596.3 million, RMB716.9 million, RMB1,086.7 million and RMB1,120.3 million in 2022, 2023, 2024 and the nine months ended September 30, 2025, respectively, and the purchases from the overlapping customers and suppliers amounted to RMB939.6 million, RMB109.8 million, RMB214.3 million and RMB151.2 million in 2022, 2023, 2024 and the nine months ended September 30, 2025, respectively.

Our Directors have confirmed that none of our sales to and purchases from our overlapping customer and supplier during the Track Record Period was inter-conditional, inter-related or otherwise considered as one transaction.

Our largest customer in 2022, 2024 and the nine months ended September 30, 2025, and one of our top five customers in 2023 (the “Customer X”), was also among our top five suppliers in 2022.

The revenue from sales to Company X in 2022, 2023, 2024 and the nine months ended September 30, 2025 was RMB3.4 billion, RMB3.2 billion, RMB5.2 billion and RMB2.9 billion, respectively, accounting for 2.7%, 2.9%, 3.8% and 2.6% of our total revenue for the respective periods.

Negotiations of the terms of our sales to and purchases from Company X were conducted on an individual basis and the sales and purchases were neither inter-connected nor inter-conditional with each other.

The rationale for purchasing these used machines from these overlapping customers was mainly to facilitate product upgrades, as our customers often traded in their used equipment when purchasing new products with higher processing efficiency and precision from us.

Our Directors are of the view that the transactions with the overlapping supplier-customers were conducted at arm’s-length, mutually independent and under normal commercial terms.

Negotiations of the terms of our sales to and purchases from these overlapping supplier-customers were conducted on an individual basis, and the sales and purchases were neither inter-connected nor inter-conditional with each other.

During the Track Record Period, one of our top five customers, Customer D, was also our supplier.

We entered into such arrangement to provide better quality assurance and more consistent supply to Overlapping Customers/Suppliers.

All of our sales to and purchases from all Overlapping Customers/Suppliers were conducted in the ordinary course of business under normal commercial terms and at arm’s length basis.

One of our five largest customers in 2022, which is our distribution partner, started to provide logistics services to us as well in 2023.

The revenue from such customer in 2022, 2023, 2024 and the nine months ended September 30, 2025 was RMB145.0 million, RMB77.9 million, RMB14.0 million and RMB9.0 million, respectively, representing 1.7%, 0.7%, 0.1% and 0.05% of our total revenue for the same periods, respectively.

The purchase amount attributable to such customer in 2022, 2023, 2024 and the nine months ended September 30, 2025 was nil, RMB5.5 million, RMB10.8 million and RMB7.0 million, respectively, representing nil, 0.1%, 0.1% and 0.1% of our total purchase amount for the same periods, respectively.

This overlap primarily arose from our adoption of the Buy & Sell model, under which we procure certain materials components from our customers for our production.

Our sales to and purchases from such customers were conducted in the ordinary course of business and on commercial terms negotiated on an arm's length basis, with pricing determined through written statements of work or purchase orders, standardized delivery and payment terms, and market-benchmarking provisions that ensure the transaction prices are in line with prevailing market levels.

In 2022, 2023, 2024 and the nine months ended September 30, 2025, the aggregate gross profit we derived from these overlapping customers and suppliers, consisting of Customer A, Customer B (or Supplier A), Customer C (or Supplier D), Customer D (or Supplier G), Customer E, Customer F (or Supplier F), Supplier B, Supplier E and Supplier I, amounted to RMB1,844.0 million, RMB1,980.1 million, RMB2,040.0 million and RMB2,004.5 million, respectively, accounting for 78.0%, 76.4%, 75.4% and 76.9% of our total gross profit in the corresponding period.

In particular, Customer G/Supplier I was among our top five customers and suppliers in 2024, while Customer F/Supplier K was among our top five customers in 2024 and among our top five customers and suppliers in 2025.

All such transactions were conducted on an arm’s length basis and at prevailing market rates.

According to CIC, our sales to and procurement from overlapping customers and suppliers during the Track Record Period is reasonable and in line with industry norms.

Due to the nature of our business, certain of our five largest suppliers, or their associates, were also our customers, which is an industry norm in the copper cathode and non-ferrous metal industries, as advised by Frost & Sullivan.

In 2022 and 2023, three and two of our five largest customers, respectively, were also our suppliers, from whom we procured raw materials.

Our negotiations of the terms in the sales and purchase agreements in connection with the overlapping customers and suppliers were conducted on a case-by-case basis and were not inter-conditional with each other.

Supplier A among our five largest suppliers of each year/period of the Track Record Period was also our customer in the corresponding years/period, and our sales to them were RMB134,200, RMB9,840, RMB12,547 and RMB2,762 in 2022, 2023 and 2024 and the six months ended June 30, 2025, respectively, which amounted to less than 0.1% of our total revenue in corresponding years/period.

In 2022, the Supplier C was also our customer in the corresponding year, and our sales to them were RMB2.3 million, which amounted to less than 0.1% of our total revenue in corresponding year.

Our procurement from Supplier A and Supplier C, as well as our sales to them, are not interdependent and are negotiated through separate processes.

Customer D and Customer E, two of our five largest customers for the six months ended June 30, 2025, were also our suppliers for the same period.

Negotiations of the terms of our sales to and purchases from these overlapping customers and suppliers were conducted on an individual basis and the sales and purchases were neither inter-connected nor inter-conditional with each other.

Our Directors confirmed that all of our sales to and purchases from the overlapping customers and suppliers were conducted in the ordinary course of business under normal commercial terms and on an arm's-length basis.

Bridgex was one of our major customers and one of our subcontractors during the Track Record Period.

During the Track Record Period, the revenue derived from our services provided to Bridgex amounted to approximately RM4.9 million, RM13.8 million and RM0.8 million, respectively, representing approximately 6.3%, 10.4% and 1.1% of our total revenue for the respective years/period.

Our Directors confirm, and the Sole Sponsor concurs, that our transactions with Bridgex, whether as our customer or subcontractor, were entered into in the ordinary and usual course of business of our Group, on normal commercial terms, fair and reasonable to our Group, and in line with market norm, based on the following analysis.

Customer A, our largest customer in the six months ended June 30, 2025, was also our supplier in 2024 and 2025.

Supplier E, our largest supplier in 2023 and 2024, was also our customer in 2024 and 2025.

Our Directors are of the view that each of our transactions with such overlapping customers and suppliers during the Track Record Period were conducted in the ordinary course of business on an arm’s length basis and with normal commercial terms between the relevant parties.

Revenue generated from Customer K was RMB0.1 million, RMB35.6 million, nil and nil in 2022, 2023, 2024 and the six months ended June 30, 2025, respectively, representing 0.1%, 12.3%, nil and nil of our total revenue for the respective years/periods.

Revenue generated from sales of our AI computing solutions to Customer C was RMB21.2 million in the six months ended June 30, 2025, representing 6.6% of our total revenue for the period.

Negotiations of the terms of our sales to and purchases from this overlapping customer and supplier were conducted on an individual basis and the sales and purchases were neither inter-connected nor inter-conditional with each other.

During the Track Record Period, Supplier J and Supplier K were also our customers.

The gross profit margin of our sales to Supplier K in 2024 was 45%, which was relatively lower than our overall gross profit margin in 2024 primarily because the relevant transactions primarily include hardware components with relatively lower gross profit margin due to the customer's specific needs.

Our sales to and purchases from the above supplier-customers are not inter-conditional upon each other, and are conducted in the ordinary course of business under normal commercial terms and on arm's length basis.