Our gross profit margin decreased from 30.7% in the four months ended April 30, 2025 to 23.9% in the four months ended April 30, 2026, primarily due to a decline in the gross profit margins of our major products, particularly our multi-modal robotic solutions.
Summary · 第 15 页
This was mainly attributable to increased raw material costs, especially the rise in wafer prices, together with higher packaging and testing costs, which increased the overall cost per unit.
Business · 第 196 页
To mitigate such cost pressures, we continue to optimize product design to improve material utilization efficiency, diversify our supplier base, leverage procurement scale and supplier collaboration to enhance purchasing efficiency, and implement pricing optimization initiatives taking into account changes in raw material costs and product value enhancements driven by technological advancements and expanded application scenarios.
We do not engage in hedging using derivative instruments relating to the risk exposures in connection with our raw materials.
Business · 第 157 页
We typically take into account such fluctuation in raw material costs when pricing our products.
Business · 第 157 页
Additionally, we have established a rigorous information communication mechanism whereby any changes in procurement costs are immediately communicated to our marketing department, which then engages with customers to negotiate appropriate price adjustment arrangements.
Our cost of sales is significantly affected by the prices of raw materials and energy. In addition, we rely on imports for a significant portion of certain key raw materials, including borax and boric acid.
For the years ended December 31, 2023, 2024 and 2025 and the six months ended June 30, 2025 and 2026, our energy costs associated with production amounted to RMB159.7 million, RMB169.7 million, RMB154.9 million, RMB76.3 million and RMB91.5 million, respectively, representing 20.2%, 19.1%, 19.8%, 19.3% and 17.3%, respectively, of our total cost of production.
Business · 第 141 页
We seek to mitigate cost fluctuations by maintaining stable relationships with key suppliers, diversifying our supplier base, planning procurement based on production requirements, improving production efficiency and adjusting product prices after taking into account market conditions and customer arrangements.
We mitigate our exposure to fluctuations in raw material prices through a combination of proactive procurement and risk management measures.
Business · 第 182 页
The gross profit margin of computing chip products increased from 2023 to 2025, primarily due to the completion of ramp-up phase of certain computing chip products and a decrease in costs of raw materials, packaging and testing services, and remained relatively stable from the three months ended March 31, 2025 to the same period in 2026.
Summary · 第 10 页
To the extent appropriate and subject to market conditions and customer relationships, we may also pass on increased raw material costs, especially with respect to industry-wide increases, to downstream customers through pricing adjustments.
Our cost of revenue increased by 18.0% from RMB23,544.4 million in the six months ended June 30, 2025 to RMB27,786.0 million during the same period in 2026, primarily due to the continued increase in memory chip prices.
Financial Information · 第 248 页
Our inventories increased by 79.6% from RMB8,902.9 million as of December 31, 2025 to RMB15,986.5 million as of April 30, 2026, primarily due to an increase in raw materials, driven by our strategic inventory build-up to mitigate fluctuations in raw material prices and the growth in our sales scale.
Financial Information · 第 230 页
Our gross profit margin increased from 19.0% for the six months ended June 30, 2025 to 21.6% for the six months ended June 30, 2026, primarily attributable to (i) the increase in the selling prices of our smartphones in response to the rising memory chip prices and (ii) the cost of memory chips recognized during the period continued to reflect inventories procured at relatively lower prices in earlier periods, prior to the increase in market prices of memory chips.
Since the second half of 2025, prices of chips, a key raw material used in our products, have begun to increase and may continue to rise or experience significant volatility.
Business · 第 142 页
As is customary in our industry, selling prices are often set in advance and adjusted periodically; therefore, we may not be able to fully or immediately pass price fluctuations on to customers as they occur.
Financial Information · 第 217 页
For major components like screens and lithium batteries, we enter into annual framework agreements with the relevant suppliers with automatic renewal provisions or purchase orders.
Our revenue derived from sales of copper concentrates was 52.0%, 50.3%, 43.0%, 46.7% and 40.4% in 2023, 2024 and 2025 and the six months ended June 30, 2025 and 2026, respectively.
Financial Information · 第 183 页
For daily sales of copper concentrates, we reference copper prices quoted on the Shanghai Futures Exchange, which closely follows international copper prices, and apply a three-month pricing mechanism, with adjustments made based on product quality specifications.
Financial Information · 第 183 页
Our raw material procurement costs are subject to market price fluctuations. In particular, the cost of key mining reagents has exhibited notable price volatility in the Track Record Period.
Raw materials constituted the largest component of our cost of sales throughout the Track Record Period.
Financial Information · 第 159 页
We seek to manage this exposure through strategic procurement, supplier diversification, alternative-material qualification, inventory planning, selected price-locking arrangements and customer price negotiations.
彤程新材料集团股份有限公司Red Avenue New Materials Group Co., Ltd.09607.HK
原材料成本占销售成本约八成
In FY2023, FY2024, FY2025 and 6M2026, our cost of raw materials amounted to RMB1,813.2 million, RMB1,999.1 million, RMB2,117.4 million and RMB1,326.0 million, respectively, according for 80.5%, 81.0%, 81.2% and 80.6% of our cost of sales for the respective periods.
Business · 第 134 页
To manage the fluctuation of raw material prices, we closely monitor market trends and adjust our procurement strategy accordingly to minimize the effects of price volatility.
Business · 第 134 页
Under the relevant framework agreements, the procurement prices are typically adjusted on a regular basis with reference to the then prevailing market prices plus a fixed premium.
Material cost was the largest component of our cost of sales, amounting to RMB1,483.5 million, RMB1,521.2 million, RMB1,412.5 million, RMB697.5 million and RMB674.9 million in 2023, 2024, 2025 and the six months ended June 30, 2025 and 2026, respectively, representing 73.0%, 71.0%, 67.0%, 67.9% and 65.4%, of our cost of sales for the same periods.
Financial Information · 第 205 页
For products included in centralized procurement or medical insurance schemes, selling prices are generally fixed for a certain period, and our ability to pass through short-term raw material price fluctuations is limited.
Financial Information · 第 206 页
Looking forward, the market prices of the Group's key raw materials are expected to gradually stabilize from 2026 to 2030 following the price adjustments during the historical period.
广东微电新能源股份有限公司Guangdong Mic-Power New Energy Co., Ltd.
原材料价格波动影响生产成本
In 2023, 2024, 2025 and the six months ended June 30, 2026, our direct material costs, as part of our cost of sales, amounted to RMB96.2 million, RMB136.3 million, RMB139.6 million and RMB100.0 million, representing 38.6%, 39.3%, 36.3% and 44.2% of our total cost of sales for the respective years/period, respectively.
Financial Information · 第 229 页
During the Track Record Period, fluctuations in the prices of key raw materials, in particular lithium cobalt oxide, electrolyte and graphite, affected our production costs to some extent, but the overall impact on our profitability was limited.
Business · 第 173 页
Our framework sales agreements generally contain price adjustment mechanisms linked to market prices of key raw materials.
In 2023, 2024 and 2025, raw materials costs accounted for 85.2%, 86.7% and 88.1% of our cost of sales, respectively.
Financial Information · 第 228 页
Meanwhile, the supply of key memory raw materials, including DRAM and NAND Flash wafers, remained tight, and the average prices of DRAM and NAND Flash wafers continued to increase in the first half of 2026, as upstream suppliers continued to prioritize capacity for products such as HBM and enterprise SSDs amid strong demand from AI and data center applications.
Summary · 第 25 页
Our procurement strategy combines on-demand purchasing with stockpiling.
This is primarily because plastic-related materials did not constitute a material component of our cost base during the Track Record Period representing only 6.8%, 5.7%, 6.9% and 6.9% of our total purchases in 2023, 2024, 2025 and the three months ended March 31, 2026, respectively, and therefore accounted for only a relatively small proportion of our total purchases.
Summary · 第 13 页
Furthermore, rather than directly procuring basic plastic particles that are more directly exposed to oil price volatility, we primarily procure processed injection-molded plastic components, which helps delay the pass-through of raw material price fluctuations and reduce their impact, and provides flexibility within our supply chain to absorb short-term price fluctuations.
Summary · 第 13 页
Supported by our proactive supply chain management, limited reliance on any single supplier, and early engagement with suppliers, we believe that the closure of the Strait of Hormuz and the related fluctuations in global oil prices are not expected to materially and adversely affect our raw material costs and our supply chain.
In 2023, 2024, 2025 and the six months ended June 30, 2025 and 2026, raw materials and consumables used represented 67.4%, 59.6%, 54.6%, 55.8% and 54.5% of our total cost of sales, respectively, while installation and development costs represented 17.5%, 23.3%, 23.8%, 24.0% and 29.4%, respectively.
Financial Information · 第 164 页
Our results of operations are therefore sensitive to fluctuations in raw material prices, supply chain stability, operation-related costs and utilization of assets and facilities, among others.
Financial Information · 第 164 页
Such decrease was partially offset by an increase in prepayments for operating expenses, raw material and finished goods, primarily due to increased stocking of raw materials amid the continued rise in raw material prices.
昆仑新能源材料技术（宜昌）股份有限公司Kunlun New Energy Materials Technology (Yichang) Co., Ltd.
原材料成本占销售成本逾九成且价格波动影响业绩
In 2023, 2024, 2025 and the six months ended June 30, 2026, our raw material costs were RMB1,298.0 million, RMB873.6 million, RMB1,468.6 million and RMB1,616.8 million, respectively, accounting for 92.5%, 89.6%, 92.8% and 95.5% of our total cost of sales in the respective periods.
Financial Information · 第 212 页
As new upstream production capacity was gradually commissioned and the supply chain gradually stabilized, the average price of LiPF6 decreased from approximately RMB130,200 per ton in 2023 to RMB62,500 per ton in 2024.
Business · 第 167 页
For our suppliers, we generally enter into long-term price linkage agreements with respect to our raw materials that are tied to the prices of their upstream raw materials.
In particular, raw milk prices in China have been subject to cyclical fluctuations, primarily driven by changes in upstream supply and demand dynamics.
Business · 第 160 页
Since the second half of 2022, raw milk prices have experienced a general downward trend due to increased supply resulting from prior dairy farm capacity expansion and productivity improvements, while demand growth remained relatively modest.
Business · 第 160 页
Our feed cost of sales per kilogram of milk decreased from 2.3 RMB/Kg in 2023 to 2.1 RMB/Kg in 2024 and further decreased to 1.9 RMB/Kg in 2025 and 1.8 RMB/Kg for the six months ended June 30, 2026, primarily due to decline in feed raw material price and increase in production volume of raw milk.
During the Track Record Period, we have experienced significant price fluctuations in our major raw material, lithium carbonate.
Business · 第 135 页
Based on our customer purchase orders, we have established a lithium carbonate price linkage mechanism, pursuant to which the pricing of our LFP cathode materials is linked to the prevailing market price of lithium carbonate attributable to the lithium carbonate component of our products.
Business · 第 135 页
In addition, we procure lithium carbonate through spot and futures transactions conducted with lithium trading companies and through the Guangzhou Futures Exchange, which further contribute in our managing our exposure to lithium carbonate price fluctuations.
In 2023, 2024, 2025 and the four months ended April 30, 2025 and 2026, our raw material costs were RMB288.6 million, RMB879.8 million, RMB1,498.1 million, RMB3.3 million and RMB168.3 million, respectively, accounting for 84.7%, 93.6%, 95.6%, 35.5% and 82.8%, respectively, of our total cost of sales for the same period.
Financial Information · 第 209 页
To the extent we are unable to effectively manage raw material price fluctuations or fail to pass such cost increases on to customers, our profit margin may be adversely affected.
浙江浙能迈领绿航科技股份有限公司ZHEJIANG ENERGY MARINE ENVIRONMENTAL TECHNOLOGY CO., LTD
设备及原材料价格波动影响成本及利润
Our results of operations are materially affected by our cost of sales, which are subject to fluctuations in the prices of equipment and raw materials.
Financial Information · 第 231 页
Any significant fluctuation in the prices of equipment such as generators and water pumps, and raw materials such as steel plates, could affect our cost of sales and significantly impact our profit.
Financial Information · 第 231 页
The gross profit margin decreased from the five months ended May 31, 2025 to the same period in 2026, primarily because due to higher raw material procurement costs incurred for the projects delivered.
常州星宇车灯股份有限公司Changzhou Xingyu Automotive Lighting Systems Co., Ltd.
原材料成本占销售成本逾八成且受大宗商品价格波动影响
In 2023, 2024, 2025 and the three months period ended March 31, 2026, our costs of raw materials and consumables amounted to RMB6.6 billion, RMB8.9 billion, RMB10.3 billion and RMB2.3 billion, respectively, representing 81.3%, 83.0%, 84.3% and 83.5% of our total cost of sales for the corresponding years/periods.
Business · 第 138 页
As our procurement of raw materials from suppliers is highly correlated with and subject to fluctuations in international commodity prices, including crude oil and semiconductor silicon wafers/non-ferrous metals, we have implemented comprehensive risk management strategies to mitigate the impact of such volatility.
Business · 第 138 页
We also maintain communication with customers to provide early warning of significant raw material price fluctuations and, where appropriate, facilitate price adjustment discussions.