最大供应商依赖高

Purchases from our five largest suppliers in each year/period during the Track Record Period in aggregate amounted to approximately RMB17.5 million, RMB11.4 million, RMB23.7 million and RMB9.6 million, representing approximately 70.7%, 54.9%, 79.7% and 88.2% of our total project supplies cost, respectively, while purchases from our largest supplier in each year/period during the Track Record Period amounted to approximately RMB5.4 million, RMB3.0 million, RMB18.2 million and RMB5.2 million, representing approximately 21.8%, 14.6%, 61.4% and 47.5% of our total project supplies cost.

The increase in the Group's purchase from Supplier A from FY2021 to FY2022 was mainly attributable to a Major Project in FY2022 in relation to the provision of ICT integration services which contributed revenue of approximately RMB15.6 million.

As there are plenty of suppliers providing similar goods that we require, our Directors consider that the risk of shortage or delay in the supply of necessary goods is low and we are unlikely to encounter any material difficulty in engaging a substitute supplier on similar terms if need be.

In 2020, 2021 and 2022 and for the six months ended June 30, 2022 and 2023, our purchases from Supplier A were RMB78.6 million, RMB122.3 million, RMB214.8 million, RMB100.7 million and RMB160.3 million, respectively, representing 87.9%, 89.4%, 75.7%, 87.9% and 88.5%, respectively, of our total purchases for the same periods.

In each year/period during the Track Record Period, our purchases from our five largest suppliers accounted for 98.6%, 99.1%, 97.5% and 99.4% of our total purchases in 2020, 2021 and 2022 and for the six months ended June 30, 2023, respectively, while our purchase from the largest supplier accounted for 87.9%, 89.4%, 75.7% and 88.5% of our total purchases, respectively, for the same periods.

Supplier A does not impose requirement of minimum purchase amount on us.

For the years ended December 31, 2020, 2021 and 2022 and the six months ended June 30, 2023, our purchase from Mobileye was RMB5.7 million, RMB78.4 million, RMB921.7 million and RMB324.2 million, respectively, which accounted for 13.6%, 54.6%, 69.2% and 90.3% of our total purchases during the same periods.

For the years ended December 31, 2020, 2021 and 2022 and the six months ended June 30, 2023, purchases from our five largest suppliers in each period in aggregate accounted for 53.4%, 78.9%, 96.0% and 95.0% of our total purchases, respectively, and purchases from our largest supplier in the relevant periods accounted for 23.2%, 54.6%, 69.2% and 90.3% of our total purchases, respectively.

Our Directors believe that our Group’s business model is sustainable although the total purchase from Mobileye accounted for a majority portion of our purchase in 2021, 2022 and the six months ended June 30, 2023:

For FY2020, FY2021, FY2022 and 6M2023, purchases from our five largest suppliers in each year/period represented approximately 61.4%, 50.6%, 61.2% and 62.3% of our total purchases, and purchases from our largest supplier represented approximately 28.3%, 25.3%, 43.4% and 39.8% of our total purchases, respectively.

Supplier Group K was our largest supplier in each of FY2020, FY2021. FY2022 and 6M2023. Purchases from Supplier Group K accounted for approximately 28.3%, 25.3%, 43.4% and 39.8% of our total purchases during the Track Record Period.

In the event of Supplier Group K terminating their business relationships with us for whatever reasons, our Directors believe that we would be able to engage alternative logistics service providers necessary for our business operations from other logistics services providers.

For each of the financial years ended 31 December 2020, 2021 and 2022, costs paid by our Group to our top five suppliers accounted for approximately 68.3%, 68.5% and 58.7% of our total production and printing costs respectively and the largest supplier accounted for approximately 52.5%, 62.6% and 50.8% of our total production and printing costs.

As disclosed in the table above, the costs paid to Supplier A for the three financial years ended 31 December 2020, 2021 and 2022 were approximately HK$29.2 million, HK$35.5 million and HK$31.7 million respectively, representing approximately 52.5%, 62.6% and 50.8% of the total production and printing costs of our Group for the respective period.

As our business model highly relies on the traffic and exposure of our contents on our Digital Media Platforms operated on the social media sites of Supplier A, unless there is a drastic change in the social media landscape in Hong Kong, it is unlikely that our demand for the boosting services from Supplier A and/or clients’ demand for advertising solutions to be posted on Supplier A’s social media sites will be shifted to other social media platforms and it is still an industry norm for advertisers in Hong Kong to rely on advertising solutions, including boosting services from Supplier A.

For the years ended 31 December 2020, 2021 and 2022, the amount of heat procured by us from cogeneration plants amounted to approximately 18.6 million GJ, 18.2 million GJ and 19.2 million GJ, accounting for approximately 76.3%, 78.3% and 79.2% of the total amount of heat sourced by our Group, respectively.

Purchases from our top five suppliers in the years ended 31 December 2020, 2021 and 2022 in aggregate amounted to approximately RMB402.1 million, RMB337.2 million and RMB385.6 million, representing approximately 40.5%, 38.7% and 38.0% of our total purchases, respectively.

During the Track Record Period and up to the Latest Practicable Date, we did not experience any material lack of capacity, supply shortage, fluctuation in procurement price, delay or disruption in our operations relating to our suppliers or any material product claims attributable to our suppliers.