In particular, the cost of high-priced inventory recognized in our cost of sales for the year ended December 31, 2023 amounted to approximately RMB198.5 million, representing approximately 50.5% of our raw material costs for the same year.
Business · 第 156 页
For the year ended December 31, 2024, our gross profit from sales of chips increased to RMB80.8 million, with a gross profit margin of 16.6%, while the cost of such high-priced inventory recognized in our cost of sales further decreased to nil, and our average wafer procurement cost decreased by approximately 27.5% as compared to 2023.
Business · 第 186 页
In particular, our domestic wafer purchase amount accounted for 5.2% and 42.6%, respectively, of our total wafer purchase amount for the years ended December 31, 2023 and 2024.
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 2026 going forward, prices of silver powder are expected to remain relatively volatile following a massive surge in the broader silver market from 2023 to 2025, driven by persistent industrial demand.
Summary · 第 13 页
We typically lock in the price of silver powder with upstream suppliers at the time when customers place orders.
Business · 第 145 页
For the portion of such silver powder inventory without confirmed purchase orders, we further employ forward futures contracts as a derivative instrument to mitigate the adverse impact of potential silver price movements.
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 2021, we purchased a batch of materials at relatively higher prices, which resulted in a higher unit cost for products subsequently produced until the high-cost materials were fully consumed.
Financial Information · 第 198 页
Given this profile, we may strategically increase wafer and die inventories when wafer input prices are within a favorable band, subject to demand-coverage thresholds and NRV safeguards.
Our results of operations have been and will continue to be affected by our ability to effectively manage our operations amid commodity price volatility.
Financial Information · 第 156 页
Our basis trading and unilateral spot trading are primarily exposed to spot price risk.
Business · 第 133 页
For example, we use futures contracts, together with spot commodity trading, to mitigate spot 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.
Our costs of raw materials accounted for 86.4%, 85.9%, 86.3%, 83.6% and 83.0% of our total cost of sales in 2023, 2024, 2025 and the five months ended May 31, 2025 and 2026, respectively.
Financial Information · 第 196 页
While market pork prices in China experienced fluctuations during the Track Record Period, we did not experience material inflation-driven volatility in its raw material costs primarily because a significant portion of its key pork inputs is procured under pricing arrangements that lock in purchase prices for the relevant supply period, which reduces the extent to which short-term market movements translate into our actual procurement costs.
Business · 第 135 页
Our prepayments, other receivables and other assets further increased by 14.8% from RMB74.3 million as of December 31, 2025 to RMB85.3 million as of May 31, 2026, primarily due to an increase in prepayments, mainly as we increased purchases of pork and other raw materials which required prepayments to lock in the procurement price and quantities.
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.
During the Track Record Period, cost of goods consistently represented the largest component of our cost of sales, accounting for over 92.0% in each period.
Financial Information · 第 209 页
Accordingly, fluctuations in the supply availability, procurement costs, foreign exchange movements, and import-related taxes and duties may directly affect our cost of sales and gross profit margins.
Financial Information · 第 209 页
However, our operating results may be adversely affected by supply disruptions, significant increases in procurement costs, or changes in import policies and tax regimes, particularly if such cost pressures cannot be passed through to customers in a timely manner.
In 2023, 2024, 2025 and the four months ended April 30, our cost of raw materials accounted for 87.2%, 85.6%, 85.7%, 86.9% and 86.5% of our total cost of sales, respectively.
Business · 第 144 页
However, we experienced fluctuations in raw materials prices, particularly with respect to battery cells used in our new energy products, driven in part by volatility in lithium carbonate prices.
Business · 第 145 页
For battery cells, we secure order commitments from distributors with prepayments, which enables us to lock in procurement prices with our suppliers for a period of approximately one month, thereby reducing our exposure to short-term price swings.
In March 2026, oil prices increased notably following recent geopolitical developments, with average gasoline and diesel prices rising by approximately 18.4% and 14.5%, respectively, compared with their average levels in 2025.
Business · 第 148 页
Our Directors have assessed the impact of recent oil price fluctuations and are of the view that they have not had, and are not expected to have, any material adverse impact on our operations, primarily because: (i) fuel expenses only accounted for 3.2%, 3.2%, 2.7% and 2.4% of our total revenue in 2023, 2024, 2025 and for the four months ended April 30, 2026, respectively; (ii) we are increasing the proportion of new energy vehicles; and (iii) as of the Latest Practicable Date, our major domestic transportation services suppliers generally had not increased pricing pursuant to annual framework agreements, while cost changes in international operations typically had been passed on to customers through reasonable pricing adjustments.
Any significant increase in direct material prices, in particular raw milk prices, or supply disruptions could adversely affect our gross profit margin if not offset by pricing adjustments, product mix optimization or operational improvements.
Financial Information · 第 190 页
To mitigate the risks associated with the price volatility and supply constraints of buffalo raw milk, we have adopted a diversified procurement strategy.
Our cost of raw materials accounted for 81.8%, 85.7%, 86.8%, 83.2% and 87.5% of our total cost of revenue in 2023, 2024, 2025 and the three months ended March 31, 2025 and 2026, respectively.
Financial Information · 第 230 页
To strengthen our supply chain management, we have adopted measures such as dual sourcing for our key components and retaining multiple suppliers for principal raw materials and enhancing our bargaining power in raw material purchases by leveraging our growing scale and centralized procurement.
Our raw material and components primarily consist of steel, wires and cables, control system, castings, and motors and drives, which collectively accounted for approximately 94.0%, 92.7%, 92.3% and 90.1% of our total cost of sales in 2023, 2024, 2025 and the three months ended March 31, 2026, respectively.
Financial Information · 第 170 页
A significant increase in raw material prices that we are unable to pass on to our customers could materially and adversely affect our gross profit margin and results of operations.
Financial Information · 第 170 页
To mitigate these risks, we have implemented supply chain management policies, including maintaining safety inventory levels, diversifying our supplier base, and engaging in strategic localization of key component procurement.
Electricity costs constitute a significant portion of our cost of revenue, particularly in connection with the operations of our self-owned battery-swapping stations.
Financial Information · 第 188 页
The gross loss increase in 2024, despite a mild rise in revenue, was primarily driven by more intense market competition, which led to lower service fee pricing in certain regions, as well as fluctuations in electricity costs during the year.
Business · 第 138 页
We also plan to improve electricity cost management by increasing consumption during lower-tariff periods and utilizing electricity transactions through the powertrading market.
The cost of raw materials and packaging materials accounted for 12.6%, 17.9% and 17.4% of our overall cost of sales for the years ended March 31, 2024, 2025 and 2026, respectively.
Business · 第 120 页
Further, in general, we seek to pass on increases in cost of raw materials to our customers if such increases affect our business operations and profit margin.
Business · 第 120 页
This was primarily attributable to (i) the relatively low proportion of raw material costs within our total cost of materials, (ii) our long-standing supplier relationships, which provide a degree of pricing stability, and (iii) our diversified sourcing, such that we do not rely on any single type of raw material.
You should pay particular attention to the fact that our historical revenue growth during the Track Record Period was to a large extent attributable to increasing silver prices, which may not be sustainable.
Business · 第 163 页
During the same years/period, our silver nitrate procurement costs amounted to RMB2,667.0 million, RMB3,830.4 million, RMB4,815.4 million, RMB1,392.8 million, and RMB4,062.0 million representing 98.6%, 99.1%, 99.6%, 99.4%, and 99.6% of our procurement costs of raw materials, respectively.
Financial Information · 第 202 页
We currently do not hedge against any fluctuation in silver price.