While we have developed stable partnerships with certain contract manufacturers who consistently demonstrate well-managed production and delivery, we have limited control over the operations of our contract manufacturers, and thus have limited control over their cost management and production efficiency.
Financial Information · 第 332 页
The cost of inventory, which includes the cost of inventories sold and the costs for raw materials and consumables for the finished products sourced from contract manufacturers, is subject to market forces.
Financial Information · 第 332 页
The increase in the gross profit margin of our branded business from 2021 to 2022 was primarily due to a decrease in the average cost of sales of our cookware, mainly attributable to our increased bargaining power against suppliers as our purchase volume increased.
The majority of our cost of revenue in 2021, 2022, 2023 and the four months ended 30 April 2023 and 2024 consisted of raw materials and consumables that we used in product manufacturing, such as copper, steel, plastic and aluminum.
Financial Information · 第 245 页
We manage our raw material costs through hedging measures and centralized procurement.
Financial Information · 第 245 页
For each important material or component for which we rely on external sourcing, we make sure that we have at least two suppliers so as to mitigate the concentration risks and maintain our pricing competitiveness.
瑞昌国际控股有限公司RUICHANG INTERNATIONAL HOLDINGS LIMITED01334.HK
钢板价格波动影响成本且固定价合同难以转嫁
Since we usually make material procurement arrangements with suppliers after we have entered into the relevant contracts with our customers, in which the price of the materials are usually set out, we generally would not be able to pass on any increase in material costs to our customers when we experience an unexpected increase in material costs
Business · 第 170 页
The price index of overall steel plate in China fluctuated during the Track Record Period and recorded a sharp increase since October 2020 with lowest price index hit at 107.3 in October 2020 and highest price index hit at 157.7 in September 2021, representing a change of approximately 47.0%.
Business · 第 171 页
We did not conduct any hedging activities with respect to the price fluctuation in the material during the Track Record Period.
Since 2021, there has been a global shortage in the supply of semiconductor chips which negatively affected our sales of in-vehicle hardware products business in ways such as production schedules and lead times, resulting in delayed orders and/or failure to meet demands of our customers, and leading to the increase in selling price of semiconductors, which accounted for approximately 10% of the total cost of our core board products in FY2021, while they have less than a 3% cost impact on our in-vehicle infotainment system and vehicle safety system products since we purchase in-vehicle infotainment system products and in-vehicle safety system products as finished products and semiconductor chips constituted only a small part of their bill of materials.
For the years ended 31 December 2022 and 2023, our direct material cost accounted for approximately 64.6% and 61.6% of our total cost of sales, respectively.
Financial Information · 第 286 页
The table below sets forth a sensitivity analysis which is hypothetical in nature and is for illustration purpose only of our direct material cost, illustrating its impact on our profit before income tax if the price of our raw materials had been 3%, 6% and 9% higher or lower during the Track Record Period, assuming all other variables being held constant:
Financial Information · 第 286 页
There are approximately 50 to 100 alternative suppliers supplying metal material (e.g., aluminium) based in Singapore who can provide metal material to us with comparable prices, terms and quality, and the Group could also import metal materials from abroad.
For the years ended December 31, 2021, 2022 and 2023, our cost of consumed raw materials were RMB1,175.6 million, RMB1,569.5 million and RMB1,384.2 million, which accounted for 54.7%, 64.5% and 59.0% of our total cost of sales, respectively.
Financial Information · 第 260 页
Fluctuations in raw material prices, especially the market prices of petroleum toluene primarily affected by the international crude oil prices, may increase our costs of sales.
Financial Information · 第 260 页
We did not adopt hedging policy against fluctuations in foreign currencies in relation to our overseas sales or hedging policy against fluctuations in the prices of raw materials and products during the Track Record Period and up to the Latest Practicable Date.
Trading medical equipment, mainly referring to those direct costs incurred for operating our business and costs for purchasing the raw materials, represented 27.6%, 41.8% and 38.4% of our cost of sales in 2021, 2022 and 2023, respectively.
Financial Information · 第 395 页
Volatility in the price of trading medical equipment could negatively affect our gross margins and results of operations.
Financial Information · 第 395 页
We expect that costs of trading medical equipment and depreciation of property, plant and equipment to continue to be significant costs and expenses going forward, particularly in light of the continued expansion of our medical imaging center network.
While we are generally able to pass on increases in cost of raw materials of our products to our customers by increasing the prices of our products accordingly and we have effective mechanism to keep monitoring the supply and price trends of our raw materials, we cannot assure that our key suppliers will not be interrupted and will be able to continue to supply raw materials to us on commercially acceptable terms or that can meet our standards.
Financial Information · 第 310 页
Our procurement policy adopts the following cost control measures: (i) collecting market data on the prices of our raw materials on a regular basis and analysing the same to predict potential changes in the market prices of our raw materials; (ii) negotiating and determining the purchase prices of raw materials with our suppliers, with reference to the market data collected and analysed; and (iii) identifying alternative raw materials suppliers who may provide more competitive and stable prices.
Business · 第 218 页
We made more purchases and kept more inventories since FY2021 and have continued to do so in 9M2023 also to reduce the risk of supply interruption after years of the pandemic from 2020 to 2022, with intermittent lockdowns in various regions.
Among all direct materials, the purchase costs of KCL accounted for approximately 77.7%, 86.6%, 90.4%, 90.3% and 92.2% of our total purchase of all direct materials for FY2021, FY2022, FY2023, 8MFY2023 and 8MFY2024, respectively.
Financial Information · 第 357 页
Assuming all other variables remain constant, the following sensitivity analysis illustrates the impact of hypothetical fluctuations in the unit cost of goods sold of our KCL per tonne on our profit before tax for the years/periods indicated.
Financial Information · 第 358 页
Our Directors believe our purchase prices of KCL and thus our unit cost of goods sold of KCL will continue to fluctuate and we do not hedge our exposure to the fluctuation in the Sea Import Master Contract Price.
For FY2020, FY2021, FY2022 and the nine months ended 30 September 2023, our Group purchased steel material in the amount of approximately HK$150.6 million, HK$62.3 million, HK$73.7 million and HK$85.9 million, representing approximately 55.9%, 32.2%, 27.3% and 45.7% of our cost of services for the corresponding year/period, respectively.
Summary · 第 8 页
the price index of steel plates in Hong Kong recorded a significant increase from 123.1 in 2020 to 184.3 in 2021, representing an annual growth rate of approximately 49.7%
Financial Information · 第 285 页
Notwithstanding the increase in market steel price would generally lead to an increase in our Group’s costs of materials, we were generally able to mitigate any financial impact brought by the increase in market steel price because we generally obtain pre-bid quotations from our steel suppliers during the tender phase and factor in the price trend of steel when determining our tender price.
天津建设发展集团股份公司Tianjin Construction Development Group Co., Ltd.02515.HK
原材料成本占销售成本34.4%至48.0%
For the years ended December 31, 2020, 2021 and 2022 and the six months ended June 30, 2023, the cost of raw materials consumed by us was RMB24.5 million, RMB97.5 million, RMB89.2 million and RMB27.3 million, representing 37.1%, 48.0%, 41.4% and 34.4% of our total cost of sales for the same years/period, respectively.
Business · 第 198 页
In order to minimize the impact of possible fluctuations in costs and raw material prices during the course of a project, we usually enter into a long-term contract with our suppliers in fixed unit price with market price taken into consideration at the time of procurement and establish a price adjustment mechanism from time to time based on actual negotiations.
Business · 第 192 页
During the Track Record Period, we did not pass on any cost increase to our customers because (i) there were no material differences between the estimated costs and the actual costs of our projects since we did not experience material cost fluctuations and we have established effective internal control measures to ensure that the total cost of each construction project is estimated accurately; and (ii) we would like to maintain good relationship with our customers and to maintain our competitiveness.
Raw material costs is the largest component in our Group’s cost structure and accounted for approximately 46.7%, 49.2%, 47.4% and 52.5%, respectively, of our total cost of revenue for the Track Record Period.
Business · 第 166 页
Price adjustment terms may be included in certain construction contracts entered into between our Group and the customers, which allow us to mitigate part of the risk of price fluctuations by passing it to our customers.
Business · 第 167 页
The budgeted project cost will regularly be reviewed and typically be updated to reflect the volume of work or additional work, as agreed by us and our customers or, when necessary, to reflect material change of key cost components and related unit prices (the ‘‘Rolling Budget’’).
The industry average purchase price of raw materials of companies operating on a fabless model (i.e. untested patterned wafers) experienced a continuously increasing trend during the Track Record Period, according to Frost & Sullivan, reaching RMB2,500 to RMB4,500 in 2020, RMB2,800 to RMB5,000 in 2021, and RMB3,000 to RMB5,300 in 2022, respectively.
Business · 第 198 页
In spite of the increasing industry average untested patterned wafer purchase price during the Track Record Period, our average overall purchase price did not experience significant fluctuation during the same periods, reaching RMB3,248.6 in 2020, RMB3,630.5 in 2021 and RMB3,454.0 in 2022, respectively.
Business · 第 198 页
This was because we pre-ordered untested patterned wafers based on our anticipated product mix and delivery schedule before the price hike.
普洱澜沧古茶股份有限公司PU’ER LANCANG ANCIENT TEA CO., LTD.06911.HK
毛茶采购价格波动影响原材料成本
The purchasing prices of our raw materials fluctuate due to a variety of factors, including supply and demand, our ability to negotiate prices with suppliers, logistics and others.
Summary · 第 8 页
Our good stock of approximately 3,700 tonnes of rough tea leaves and in-process tea leaves sourced in 15 different years from major mountains in the three major production areas of Pu’er tea in Yunnan as of June 30, 2023, is able to effectively stabilize our cost of raw materials year over year and mitigate the impact on our performance from raw material price fluctuation in any particular year.
In particular, the cost of lithium carbonate, a key raw material for cathode materials for LFP battery products have experienced considerable fluctuations during the Track Record Period.
Business · 第 263 页
During the same period, we did not engage in hedging activities against the fluctuation in raw material prices.
Business · 第 263 页
In response to the rapid and sharp fluctuation in prices of raw materials, we have historically taken and going forward will continue to take measures such as (i) strategic cooperation with major suppliers of raw materials to primarily lock the quantity of our key raw materials in advance based on our prudent estimation of market trend and according to our production plan, (ii) adjusting our selling price by entering into supplemental agreements with some of our customers since November 2021 and introducing price adjustment mechanism into contracts with some of our customers in the second quarter of 2022, and (iii) leveraging on our unique supply chain advantages from Tsingshan Group’s network to actively help our suppliers to source feedstock materials, such as lithium carbonate, thereby ensuring sufficient supply of our raw materials at competitive prices.
厦门燕之屋燕窝产业股份有限公司XIAMEN YAN PALACE BIRD’S NEST INDUSTRY CO., LTD.01497.HK
原材料成本占销售成本近八成且毛燕价格波动
Cost of raw materials was the most significant component of our cost of sales during the Track Record Period, accounting for 76.7%, 79.3%, 77.3%, 77.8% and 77.7% of our total cost of sales in 2020, 2021, 2022 and the five months ended May 31, 2022 and 2023, respectively.
Financial Information · 第 263 页
The procurement price of raw nests and packaging materials could be volatile due to a variety of factors beyond our control, and any increase in the prices of raw nests and packaging materials may cause us to adjust our product prices upward.
Feed and feed ingredients costs represented 68.9%, 70.4%, 71.5%, 72.7% and 72.1% of our total cost of sales for 2020, 2021 and 2022 and the five months ended 31 May 2022 and 2023, respectively.
Financial Information · 第 337 页
Corn and soybean meal are commodities that are subject to significant price fluctuations, and their market prices are subject to various factors, including demand and supply dynamics, government policies, weather conditions, pests and other acts of nature.
Financial Information · 第 338 页
We have adopted diverse means to mitigate the impact of fluctuations in feed prices, including flexibly adjusting feed formula while adhering to nutritional standards, diversifying our feed ingredients so that the price fluctuation of one ingredient would not exert material impact on our feed price, maintaining diversified supply channels and conducting raw material procurement with commodity futures.
国鸿氢能科技（嘉兴）股份有限公司Sino-Synergy Hydrogen Energy Technology (Jiaxing) Co., Ltd.09663.HK
原材料成本占销售成本比重高达89.1%
The cost of raw materials accounted for 73.1%, 81.8%, 89.1% and 79.5% of our total cost of sales for the years ended 31 December 2020, 2021, 2022 and the five months ended 31 May 2023, respectively.
Financial Information · 第 398 页
Changes in the availability and price of raw materials could have a significant impact on our operating costs and results of operations.
Financial Information · 第 398 页
During the Track Record Period, the prices of major raw materials and components we purchased from suppliers for our production, mainly including MEAs, hydrogen storage system, air compressor, DC-to-DC converter, batteries and hydrogen circulation pump, did not experience any material increases.
山西省安装集团股份有限公司Shanxi Installation Group Co., Ltd.02520.HK
原材料成本占销售成本升至52.4%
In 2020, 2021 and 2022 and the six months ended June 30, 2023, raw material costs accounted for 41.6%, 51.1%, 52.4% and 45.3% of our cost of sales, respectively, and labor costs accounted for 21.3%, 26.0%, 25.1% and 29.8% of our cost of sales, respectively, machinery utilization costs accounted for 6.5%, 7.3%, 5.5% and 4.5% of our cost of sales, respectively, and subcontracting costs and others accounted for 30.6%, 15.6%, 17.0% and 20.4% of our cost of sales, respectively.
Financial Information · 第 456 页
We generally pass the risk of price fluctuations in our raw materials to our customers by introducing price adjustment terms into the construction contracting contracts or applying for price adjustment when the market fluctuates greatly.
Business · 第 307 页
The fluctuation of our gross profit margin for projects we acted as main contractor was mainly due to the fact that our gross profit margin for projects we acted as main contractor slightly decreased compared with the year ended December 31, 2020 as a result of the increase in the raw material price and the increase in labor costs for the year ended December 31, 2021.
The following sensitivity analysis illustrates the effects of hypothetical fluctuations in our cost of inventories sold on our gross profit for the periods indicated, assuming all other factors affecting our profitability had remained unchanged:
Financial Information · 第 378 页
We have adopted a series of measures to effectively control our procurement costs, including among others, entering into framework agreements with merchandise suppliers to ensure stable prices for our merchandise.
Business · 第 289 页
We have also been engaging original equipment manufacturing contractors for customized merchandise that have better gross profit margin advantage over branded merchandise.