During the Track Record Period, we primarily sold KD kits to (i) overseas OEMs and overseas joint ventures for assembling to passenger vehicles in their respective overseas production facilities and for sale under our brands such as Chery, OMODA and JAECOO and EXEED or under the brands of overseas joint ventures and overseas OEMs such as EBRO; and
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(ii) trading companies in China which would on-sell the KD kits to its customers.
Our offline sales primarily include (i) distribution through distributors, and (ii) direct sales, including selling our OBM products to enterprise customers, and directly selling to ODM customers, who then resell the products we manufacture under their own brands.
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During the Track Record Period, our increased sales under the ODM model contributed to the growth of our total revenue. However, this also temporarily pressure on overall gross margins.
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Given the continuously increasing sales of our own brands, we anticipate maintaining our overall gross profit margin in the long term.
During the Track Record Period, we generated revenue primarily through two main business segments: Contract Manufacturing, which contributed the majority of our revenue; and Branded Product Business, which contributed to a lesser extent.
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Contract Manufacturing: under this segment, we primarily manufacture and sell babycare products as an Original Design Manufacturer (ODM) to business customers, including independent retailers and babycare brand owners.
OEM customers: we design and produce automotive specialty chemical products to certain customers including globally leading automotive chemical brands on an OEM basis.
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For the years ended December 31, 2021, 2022 and 2023 and the six months ended June 30, 2024, our revenue of automotive specialty chemical products generated from OEM customers amounted to RMB196.5 million, RMB105.7 million, RMB176.9 million and RMB52.5 million, respectively, representing 9.3%, 6.0%, 9.3% and 5.4% of our revenue generated from our automotive specialty chemical products for the same period, respectively.
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Partnering with these industry leaders enable us to enhance our production processes by adopting their valuable experience and best practices.
In our overseas markets for Smart Home Solutions, we sell directly to ODM/OEM customers, who then resell the products we manufacture under their own brands, and we primarily sell our OBM products through local online and offline retailers and distributors.
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In addition, we are striving to further increase our proportion of overseas revenue, particularly by promoting our OBM business.
Under this business model, Guizhou Tobacco Investment provides us with the principal raw materials and we manufacture them into compound fertiliser in accordance with the stipulated product specifications.
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Furthermore, as our Chengdu Production Facility discontinued manufacturing, our Group resold all NOP to our customers during the Track Record Period and resold compound fertiliser to our customers during FY2021 and FY2022.
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In FY2022, FY2023, 8MFY2023 and 8MFY2024, the average production fee for compound fertiliser under this new business arrangement was RMB454.4 per tonne, RMB519.5 per tonne, RMB512.6 per tonne and RMB395.2 per tonne, respectively.