We have also entered into an agreement dated 1 October 2022 with an independent third party, which is principally engaged in trading of steel tubulars and provision of related services, pursuant to which we provided services, such as tubular thread inspection, tubular body inspection, tubular inventory management and storage and other logistic services related to tubular management during the Track Record Period (the ‘‘TTM Agreement’’).
Business · 第 205 页
To strengthen our in-house capabilities in provision of oil and gas related services, we have enhanced training to our own staff, reducing dependency on external services and maintaining a sustainable skill set in-house.
Business · 第 205 页
In particular, although tubular management services per se does not involve precision machining or precision welding processes, we intend to leverage the provision of tubular management services under the TTM Agreement as a springboard and our advanced CNC machining capabilities to explore further opportunities with the independent third party and other customers in the oil and gas industry for provision of services relating to precision machining and precision welding.
Revenue contribution from products trading accounted for 20.6%, 13.2% and 17.0% of our total revenue for the years ended December 31, 2021, 2022 and 2023, respectively.
Summary · 第 3 页
The foremost goal of our products trading business is to facilitate the procurement of raw materials for our primary production operations, and we only engaged in toluene product trading when inventory level exceeds our requirement for production.
In 2021, 2022 and 2023, our merchandise sales business generated revenue of RMB105.0 million, RMB111.3 million and RMB144.3 million, accounting for 20.9%, 20.1% and 14.3% of our total revenue, respectively.
Business · 第 269 页
In 2021, 2022, and 2023, within this business segment, our purchases from our brand customers accounted for approximately 79%, 64%, and 56% of our total purchases, respectively.
Business · 第 271 页
We have adopted a series of internal control and risk management measures to minimize risks associated with potential undue competition, including among others, (i) continuously monitoring the development of internal policies of different brand customers, including their restrictions set upon their suppliers and business partners; (ii) conducting routine visit and consultation to brand customers to understand their preference and policies; and (iii) continuously enhancing our market recognition among FMCG target consumers as the “go-to place” to experience and access innovative brands and products to promote our ability to offer marketing service to a wide variety of brand customers.
天津建设发展集团股份公司Tianjin Construction Development Group Co., Ltd.02515.HK
应客户要求提供材料采购服务
We entered into those material procurement contracts based on our customers’ requests.
Business · 第 156 页
The revenue recognized for provision of material procurement services to Xintai Zhihui, Customer Z and Customer C amounted to RMB24.9 million, RMB3.8 million and RMB0.1 million, respectively, for the year ended December 31, 2022 and RMB1.0 million, RMB0.3 million and RMB1.9 million, respectively, for the six months ended June 30, 2023.
According to our internal records, for FY2020, FY2021, FY2022 and 1H2023, our sales to trading customers for LNG amounted to RMB98.4 million, RMB14.0 million, RMB299.7 million and RMB105.5 million, respectively, representing 9.1%, 0.9%, 13.3% and 9.8% of our revenue for the corresponding years/period.
Business · 第 211 页
As such, our Directors consider that we did not adopt any distributorship business models in selling our products.
Business · 第 211 页
When we source LNG from third-party suppliers and replenish LNG from in-house production, the sales of LNG from gas stations will be recognised as sales of LNG procured from third-party suppliers under the trading segment based on the volume purchased while the sales of LNG from in-house production will be recognised under the energy products segment based on the volume produced.
In addition to satisfying our production needs, we purchase feedstock materials, primarily lithium carbonate, and sell them to our suppliers as a way to help our suppliers source feedstock materials for battery products including LFP and electrolyte solutions, which was an industry norm, according to the F&S Report.
Business · 第 267 页
Under the accounting policies adopted by us, despite that the we sold feedstock raw materials to those suppliers, no revenue was recorded in our results of operations.
Business · 第 267 页
We plan to further source feedstock materials such as lithium carbonate for our suppliers so that we could ensure the timely and sufficient supply of our raw materials.
During the Track Record Period, our revenue derived from sales of intralogistics equipment and parts amounted to RMB229.5 million, RMB304.5 million, RMB315.2 million, and RMB137.8 million in 2020, 2021 and 2022, and the four months ended April 30, 2023, respectively.
Business · 第 213 页
With our established procurement and sales channels, we trade new and used intralogistics equipment to match requirements of customers in China, which helps increase the customer adherence, and attract new customers to our intralogistics equipment subscription business segment and maintenance and repair business segment.
In 2019, 2020, 2021, 2022 and the six months ended June 30, 2022 and 2023, mobile device distribution services contributed 2.2%, 7.3%, 14.5%, 6.4%, 4.0% and 5.6% of our total revenue, respectively.
Business · 第 268 页
Upon receiving orders from mobile device resellers, we purchase mobile phones or accessories from mobile phone manufacturers, and then sell them to the resellers.
Business · 第 269 页
We enter into framework agreements with authorized resellers, pursuant to which the authorized resellers, acting as our buyers rather than agents, purchase mobile phones or accessories from us while we deliver the products.
Leveraging such procurement sources, in late 2021 we started to supply certain imported food ingredients, mainly including shrimp and beef, to our suppliers as well as certain food wholesalers, which contributed to the increase in the revenue from sales of other products from RMB494.7 million in 2021 to RMB992.5 million in 2022 and from RMB238.5 million for the four months ended April 30, 2022 to RMB263.0 million for the same period in 2023.
Business · 第 190 页
However, we expect the concentration on top customers to remain low, and to generate the vast majority of our revenue from individual customers.
Business · 第 190 页
In addition, as we procure a large volume of raw materials as a group and able to negotiate for favorable pricing and quality assurance, we also procure additional amount of food ingredients, such as beef and lamb, from external suppliers of raw ingredients, and sold a portion of these raw materials to our suppliers of finished products.
Aiming to provide well-rounded services to our customers, and as a supplement to our ICL business, we started to sell medical products to our own laboratories and third-party customers, primarily medical institutions in 2010.
Business · 第 191 页
During the Track Record Period, revenues generated from sales of medical products amounted to RMB228.5 million, RMB234.7 million and RMB459.9 million in 2020, 2021 and 2022, respectively, representing 8.3%, 6.9% and 9.5% of our total revenues in the same years, respectively.