Longpan Technology has a high customer concentration and relies on CATL Group

In its prospectus, Longpan Technology mentioned that most of the company's revenue comes from a relatively small number of customers. As of December 31, 2021, 2022 and 2023, Longpan Technology's largest customer (i.e., CATL Group) generated revenues of RMB 1.1604 billion, RMB 7.4869 billion and RMB 2.648 billion, respectively, accounting for 28.6%, 53.2% and 30.3% of the revenue in the corresponding periods. Although the company strives to reduce customer concentration, it may still be affected by the risks arising from customer concentration.