The company procures raw materials from suppliers, which are assembled by assembly partners into power banks and cabinets. It faces risks including supply shortages, extended lead times, cost increases, and quality control challenges. Some suppliers may prioritize competitors or restrict supply. Although the company has not historically experienced component shortages, it recognizes potential future risks arising from industry conditions, health crises, natural disasters, and global events. Alternative sourcing may be time-consuming and costly, and intellectual property licensing fees or certification expenses could increase procurement costs. The company cannot guarantee continued procurement on acceptable terms from current or new suppliers and assembly partners. Economic conditions, labor actions, regulatory decisions, customs restrictions, and other factors may impact supply. Disputes or non-compliance with contractual provisions, such as anti-bribery and environmental protection, could adversely affect the company's reputation and business. The company does not have direct control over its suppliers and assembly partners.
Smart Share Global Ltd's Comment on Supply Chain
The company procures raw materials from suppliers, which are assembled by assembly partners into power banks and cabinets. It faces risks including supply shortages, extended lead times, cost increases, and quality control challenges. Some suppliers may prioritize competitors or restrict supply. Although the company has not historically experienced component shortages, it recognizes potential future risks arising from industry conditions, health crises, natural disasters, and global events. Alternative sourcing may be time-consuming and costly, and intellectual property licensing fees or certification expenses could increase procurement costs. The company cannot guarantee continued procurement on acceptable terms from current or new suppliers and assembly partners. Economic conditions, labor actions, regulatory decisions, customs restrictions, and other factors may impact supply. Disputes or non-compliance with contractual provisions, such as anti-bribery and environmental protection, could adversely affect the company's reputation and business. The company does not have direct control over its suppliers and assembly partners.
Sources:
Smart Share Global Ltd's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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