Company overview

CCSC Technology International Holdings Limited supplies customized cables, wire harnesses and connectors for customers’ equipment and products. Cables and wire harnesses generate the vast majority of revenue. Customers either provide designs for CCSC to manufacture or give specifications for CCSC to design and make the product. Almost all sales go to manufacturers and electronic manufacturing services companies, which procure and assemble products for manufacturers. Customers include Universal Robots, Linak A/S and Flextronics.

CCSC makes almost all its products at its own factory in Dongguan, China, and Europe supplies most of its sales. A small group of customers accounts for a large share of revenue. Customer agreements generally do not commit buyers to purchases; revenue depends on the monthly orders they place. Purchased components make up most production costs, with copper a major cost driver, so margins depend on whether CCSC can adjust selling prices as input costs change without losing orders.

The listed company is a Cayman Islands holding company with no material operations of its own. It relies principally on distributions from its Chinese subsidiary for cash. Chinese rules limit those dividends to accumulated profits after required reserve allocations, and currency controls restrict moving funds out of mainland China.