It might be high initial production costs associated with...

It might be high initial production costs associated with producing the initial pre-orders (I'm not sure how costs associated with monitoring and tweaking the production runs are classified?). Or some sort of upfront fixed costs associated with Flex arrangement. Presumably marginal cost per unit would decrease with increased number of units produced. Also we don't know what type of costs are being included in "cost of sales". Possibly and hopefully, get more detail from the full annual report.