In limited circumstances, i.e., when the price of purchase orders proposed by trading companies are acceptable to us, certain purchase orders are placed through trading companies, as certain end customers may choose to engage trading companies to streamline supplier management, which is consistent with industry practice, according to Frost & Sullivan.
Business · 第 135 页
During each period of the Track Record Period, revenue from such purchases accounted for less than 1.5% of our total revenue.
Our direct sales primarily comprise (i) OEM services, under which we manufacture milk powder products based on customers’ own formulations, (ii) sales of dairy ingredients, raw materials and other dairy-based semi-finished products to institutional customers, and (iii) online direct sales to end consumers through e-commerce platforms.
Business · 第 143 页
Under our OEM agreements, we generally manufacture specified trademarked products under customer authorization, while the relevant customer is typically granted exclusive sales rights within the agreed territory and we generally do not sell the relevant products through our own channels or distributors.
Business · 第 143 页
The direct sales channel includes our OEM and dairy product related materials business, which traditionally operates at relatively low gross margins.
四川好医生云医疗科技集团股份有限公司GOOD DOCTOR CLOUD HEALTHCARE & TECHNOLOGY GROUP CO., LTD.
向直接批发客户及经销商的批发销售
In addition to supplying pharmaceuticals and other healthcare products directly to primary healthcare terminals, we also sell products under third-party brands to (i) direct wholesale customers; and (ii) distributors (together, the “wholesale customers”).
We believe the risk of channel stuffing as a result of our sales to these direct wholesale customers is low, considering that (i) we maintain a contractual buyer-seller relationship with direct wholesale customers; and (ii) we typically do not allow direct wholesale customers to return products to us unless there are product quality issues caused by us.
During the Track Record Period, our overseas sales transactions were conducted under a historical contracting and settlement arrangement through the HK Intermediary (the "Agency Arrangement").
Business · 第 152 页
In 2023, 2024 and 2025, the agency fees charged by the HK Intermediary amounted to RMB1.6 million, RMB1.1 million and RMB0.5 million, respectively.
Business · 第 152 页
Following the cessation of the Agency Arrangement in July 2025 and the transition to direct overseas sales through our Group's wholly-owned Hong Kong subsidiary, there was no material change of terms with the overseas customers and the transition did not give rise to any material change in our financial performance.
We previously provided procurement agency services to certain AI computing technical services customers at their requests.
Financial Information · 第 204 页
This gross basis of recording trade receivables, despite net revenue recognition, has led to a disproportionately high balance of trade receivables as of December 31, 2024 relative to our revenue due to the high value of the servers that we procured as a procurement agent.
Financial Information · 第 205 页
From a cash flow perspective, this arrangement has resulted in our significant cash outflows from operating activities despite recording net profits in 2023 and 2024.
Revenue from sales of our in-house-developed transfer-printing machines and related equipment amounted to approximately RMB114.0 million, RMB115.0 million and RMB77.2 million in 2023, 2024 and 2025, respectively, with a gross margin of approximately 20.0%.
Business · 第 166 页
Our equipment sales business is conducted independently by a subsidiary with a dedicated equipment marketing unit, while technical coordination is supported at the Group level.
During the Track Record Period, we sold products under the VMI consignment model to six customers, which in aggregate contributed RMB35.9 million, RMB53.7 million and RMB74.2 million in 2023, 2024 and 2025, respectively, representing 12.6%, 9.5% and 8.6% of our total revenue for the respective years.
Business · 第 164 页
We typically require our customers who adopt the VMI consignment model to provide us with periodic demand forecasts for a specified timeframe.
Business · 第 164 页
For general purpose materials, the customer does not bear inventory responsibility, and we are required to retrieve excess inventory within a specified period upon notice.
Under these arrangements, we do not take title to the consigned inventory until it is sold to our retail customers through our self-operated stores or wholesale to our franchised stores.
Business · 第 156 页
This model allows us to offer a broader product selection while minimising inventory holding risks and associated carrying costs, with the sales of consigned products representing approximately 11.8%, 14.6% and 15.4% of our revenue for the years ended 31 December 2023, 2024 and 2025, respectively.
Business · 第 156 页
As at 31 December 2023, 2024 and 2025, we had consignment agreements with 30, 33 and 33 suppliers, primarily for mid-end frames and sunglasses, and all such arrangements were entered into on normal commercial terms.
Through CassChoice, we guide auto parts manufacturers on "flexible production" informed by downstream demand aggregated on our platform, make bulk procurement from these manufacturers, and resell such products to auto parts distributors, from which we recognize the full sale price as revenue.
Financial Information · 第 193 页
In 2023, 2024 and 2025, the gross profit margin of CassMall was 88.6%, 89.3% and 92.0%, respectively, compared to gross profit margin of 1.4%, 3.7% and 3.1% for CassChoice over the same periods, respectively.
Business · 第 176 页
In 2023, 2024 and 2025, the gross profit margin of branded parts was 5.0%, 11.6% and 9.6%, respectively, compared to gross profit margin of 0.8%, 1.0% and 0.9% for OEM parts over the same periods, respectively.
We also provide tolling services for lithium compound products on a fee-for-service basis for certain customers.
Business · 第 117 页
During the Track Record Period, we provided tolling services to the PRC subsidiaries of Company D as their production lines were commissioned and at ramp-up stages, while we procured lithium concentrate from them in 2024 and 2025.
In 2023, 2024 and 2025, such agent service fees amounted to nil, RMB1.2 million and RMB0.3 million, respectively.
Business · 第 124 页
This arrangement has enabled us to enhance access to overseas customers in selected markets while maintaining direct control over customer relationships, pricing and contractual terms, and does not constitute an exclusive or long-term agency arrangement.
The resulting products are then sold either (i) through our own sales network; or (ii) to the partner on a buy-out basis for resale to end consumers.
Business · 第 134 页
(iii) the development of customized AR eyewear for NIO's in-cabin entertainment system, delivering a 200-inch immersive viewing experience with an industry-first AI dynamic stabilization algorithm designed to prevent motion sickness during travel, under which NIO bears the corresponding development fees and we produce and sell the finished products to NIO on a buy-out basis.
Business · 第 134 页
During the Track Record Period, revenue from services and others amounted to RMB35.0 million, RMB6.0 million and RMB40.3 million for each of the years ended December 31, 2023, 2024 and 2025, respectively, accounting for 9.0%, 1.5% and 7.8% of our total revenue for the corresponding periods.
In 2023, 2024 and 2025, the number of accumulated general contractors were 50, 75 and 104, respectively, and to the best knowledge of our Directors, those general contractors are Independent Third Parties.
Business · 第 155 页
General contractors do not resell our products or services and as such, we do not consider them distributors, and their involvement does not give rise to any material concerns about channel stuffing, cannibalization, or trade receivable recoverability.
Business · 第 156 页
Given our technical superiority in certain fields and/or our industry reputation, end adopters may sometimes designate us as the supplier of selected software products and services, despite that another company has been selected as the general contractor.
In addition, based on our understanding of market trends and actual market demand, we also procure hygienic disposable materials with overseas origin for sale if we consider this profitable.
Business · 第 150 页
As a result, we sourced a number of hygienic disposable materials from overseas suppliers during the Track Record Period and such purchases were denominated in USD.
Business · 第 150 页
For FY2025, our raw material purchase amount from overseas suppliers was approximately RMB6.3 million, representing 1.7% of our total purchases.
Under consignment agreements, we recognize revenue when products are sold to end customers.
Business · 第 121 页
For the consignment agreements, we generally retain ownership of the products and bear the risk of loss until sales to end customers.
Business · 第 122 页
For consignment agreements, distributors are permitted to return excessive products unsold as we retain ownership of products until sales to end consumers.
For the year ended December 31, 2023, 2024 and 2025, revenue generated from trading operations accounted for 43.7%, 56.9% and 58.4% of our total revenue, respectively. Despite the significant contribution to revenue, the gross profits derived from trading activities remained minimal.
Financial Information · 第 221 页
For paper-based settlement trades for which we are not responsible for physical delivery, account for approximately 96% of our trading transactions, we either purchase in paper form from upstream suppliers and downstream buyers take delivery of physical metals or acquire physical metals from upstream suppliers and convert them into paper form for sale to downstream buyers.
Business · 第 154 页
Sales are made on a payment-before-delivery basis with no credit extension to customers, and we mainly cooperate with institutional clients and large-scale traders with good credit.
Additionally, we commissioned a sales representation to collaborate with a major auto parts retailer in the U.S, which has an extensive network of stores and warehouses across the country.
Business · 第 138 页
We provide commission to the retailer based on payments received for products sold within the specified territory.
杭州铜师傅文创（集团）股份有限公司HANGZHOU TONGSHIFU CULTURAL AND CREATIVE (GROUP) CO., LTD.00664.HK
寄售代销渠道收入占比上升至4.9%
For the years ended December 31, 2022, 2023, 2024 and the nine months ended September 30, 2024 and 2025, revenue derived from consignment sales amounted to RMB3.5 million, RMB14.1 million, RMB15.9 million, RMB8.6 million and RMB21.9 million, respectively, representing approximately 0.8%, 2.8%, 2.8%, 2.2% and 4.9% of our total revenue for the respective years/periods.
Business · 第 143 页
For consignment arrangements, revenue is recognized when control of the goods is transferred to the end customers.
Business · 第 143 页
Consignment partners typically charge standardized service fees for traffic placement, warehousing, and order fulfillment, generally calculated as a percentage of the gross merchandise value, ranging from approximately 10% to 12%.
Revenue generated from direct sales involving sales partners amounted to RMB1,150.0 million, RMB1,385.4 million, RMB1,789.8 million, RMB1,291.0 million and RMB1,411.8 million, in 2022, 2023, 2024, and the nine months ended September 30, 2024 and 2025, respectively.
Business · 第 145 页
Under this model, we enter into contracts directly with direct sales customers and sell products to them, while paying a commission fee to our sales partners for their maintenance and execution efforts.
Business · 第 153 页
Our sales partners are primarily responsible for market development and service support, facilitating introductions and interactions between the Company and potential customers.