At the same time, Chery Automobile has always been an important customer of Jiefeng Power. During the reporting period, the company's sales revenue to the top five customers exceeded 93%, of which Chery Automobile's sales accounted for between 59% and 72% continuously, and more than 70% in 2024. Customer concentration is significant.
In this regard, the prospectus explains that since the establishment of the supply relationship in 2006, in the course of nearly 20 years of cooperation, the company has been highly recognized by Chery Automobile in terms of research and development capabilities, product development, technical process, cost control, product quality, and supply capabilities. The company and Chery Automobile's supply categories have also gradually expanded, from the original exhaust system products to core components in the fields of engines, automatic transmissions, and intelligent suspensions.
Jiefeng Power believes that the business cooperation between the company and Chery Automobile is solid and sustainable, and the high degree of customer concentration will not have a significant adverse impact on the company's future continued operations.