Hong Kong IPO disclosure precedents · 287 companies, 291 items
General disclosure of the proportion of revenue generated through distributors/dealers and the number of distributors, including additions, terminations, expansion or streamlining of the network.
In 2023, 2024 and 2025, such sales rebates amounted to RMB38.1 million, RMB14.6 million and RMB19.5 million, respectively.
Business · p. 131
To prevent channel stuffing, we stipulate in our distribution agreement that product returns are generally not accepted except for defective items.
Business · p. 131
In 2023, 2024 and 2025, we engaged 446, 540 and 620 distributors, respectively, comprising 217, 286 and 349 domestic distributors and 229, 254 and 271 overseas distributors, respectively.
In FY2024 and FY2025, our sales to the sales representatives amounted to RMB7.1 million and RMB24.0 million, accounting for 1.3% and 4.1% of our total revenue, respectively.
Business · p. 157
We entered into sales contract with the sales representative only after they have identified specific end-users, with such sales contract requiring delivery to the end-users.
Business · p. 157
Hence, all our revenue during the Track Record Period was attributable to our direct sales to customers and we consider there is minimal financial impact of partnering with sales representatives to the Group.
In 2023, 2024 and 2025, the revenue generated from our sales to distributors were RMB31,611.5 million, RMB32,965.4 million and RMB29,432.5 million, respectively, accounting for 90.5%, 89.8% and 88.4% of our total revenue for the same periods, respectively.
Business · p. 197
As of December 31, 2025, we had cooperated with a total of 7,502 distributors.
Business · p. 197
The significant increase in new distributors in 2024 was primarily attributed to the acquisitions of DiaSys Group and APT Medical Inc.
In 2023, 2024, 2025, our revenue from distributors amounted to nil, RMB5.2 million and RMB8.0 million, respectively, accounting for nil, 0.2% and 0.3% of our total revenue.
Business · p. 124
We have established a comprehensive management framework, supported by robust internal policies, to regulate distributor conduct and implement strategic measures to mitigate cannibalization and ensure orderly market competition.
Business · p. 125
In return, our distributors typically commit to a minimum annual sales target.
In 2023, 2024 and 2025, the revenue from sales through our distributors amounted to RMB100.5 million, RMB220.1 million and RMB263.4 million, respectively, representing 11.1%, 12.5% and 9.4% of our total revenue for the corresponding year.
Business · p. 154
In 2023, 2024 and 2025, the aggregate revenue generated from our five largest distributors (in terms of revenue contribution) in each year during the Track Record Period amounted to RMB42.9 million, RMB99.8 million and RMB161.3 million, respectively, representing approximately 4.8%, 5.7% and 5.8% of our total revenue, respectively.
Business · p. 155
We terminated our cooperation with 95, 225 and 61 distributors in 2023, 2024 and 2025, respectively, primarily as a result of our heightened selection criteria for distributors.
As of December 31, 2023, 2024 and 2025, there were 12, 34 and 74 distributors, respectively.
Business · p. 159
Our relationship with our distributors is a buyer and seller relationship, as our distributors acquire ownership of the products we deliver to them.
Business · p. 159
We have implemented internal control measures to prevent channel stuffing: (1) most distributors are not allowed to proactively stock our products; (2) we regularly track distributor inventory and sales progress through phone calls, emails, and on-site visits; and (3) if a distributor has unsold stock, we will immediately communicate with it to assist with promotions and simultaneously reduce or suspend subsequent replenishment quotas to ensure rapid inventory clearance.
During the Track Record Period, the number of our distributors decreased, primarily attributable to our channel consolidation in response to the VBP schemes and the resulting industry trend toward more centralized and standardized distribution.
Business · p. 165
On the other hand, we have implemented various measures to mitigate the risk of channel stuffing.
We do not rely on any individual or a few distribution partners and strictly forbid existing employees to work for or holding equity in our distribution partners.
Business · p. 140
Meanwhile, we conduct semi-annual quantitative assessment on our distribution partners, focusing on various criteria related to their sales, marketing, financial and after-sale services, and we are able to identify the operational issues of our distribution partners and provide guidance for their improvement and enhancement.
Business · p. 141
As such, our management are of the view that channel stuffing is unlikely to occur in our distribution channels and generally does not pose any material managerial concern.
In 2023, 2024 and 2025, we terminated business relationships with 27, 26, and 7 online distributors, respectively, primarily due to our evaluation of their sales performance and the expiration of distribution agreements.
Business · p. 124
In 2023, 2024, and 2025, we terminated business relationships with 72, 91, and 44 distributors, respectively.
Business · p. 126
Under consignment agreements, we recognize revenue when products are sold to end-customers.
Less than 1.0% of our revenue was from distributors in 2023 and 2024, and 8.2% of our revenue was from distributors in 2025.
Business · p. 166
Our Directors are of the view that there was no material channel stuffing risks arising from our sales through distributors.
Business · p. 163
During the Track Record Period and up to the Latest Practicable Date, we did not experience any material sales returns or product exchanges from our distributors.
On the other hand, revenue from distributors increased consecutively from RMB346.9 million in 2023 to RMB454.4 million in 2025.
Business · p. 137
Since we adopt a “payment before shipment” model for all of our distributors, we have no accounts receivable from them.
Business · p. 138
We track distributors’ downstream activities via biweekly POS and inventory reports for product flow/market demand insights, with dedicated sales assistants managing all data in our secure system.
Our revenue generated from distributors was RMB5,700 and RMB5.1 million in 2024 and 2025, respectively, which were immaterial to our total revenue in the same periods.
Business · p. 151
We only sell our consumer-class products through distributorship model with a total of 26 distributors as of December 31, 2025.
Business · p. 152
In general, distributors shall make full payment in advance before we process any orders.
For industrial automation and digitalization offerings (excluding intelligent elevator solutions) and intelligent robots, we primarily sell them through distributors.
Business · p. 142
If we identify abnormal inventory turnover or potential slow-moving risks at any distributor, we will usually communicate with and review such distributor and, depending on the circumstances, liaise with other channels with demand to explore reasonable inventory adjustment arrangements.
Business · p. 143
The number of our distributors remained stable during the Track Record Period.
As of December 31, 2023, 2024 and 2025, we had six, five and five distributors, respectively, which contributed to 3.4%, 1.4% and 1.1% of our total revenues in 2023, 2024 and 2025, respectively.
Business · p. 149
We believe the risk of channel stuffing is remote in our distribution network.
In 2023, 2024 and 2025, our distributors contributed to 29.5%, 19.8% and 30.0% of our revenue, respectively.
Business · p. 120
The 68 distributors terminated in 2024 contributed 1.6% of our total revenue in 2023. The 104 distributors terminated in 2025 contributed 1.4% of our total revenue in 2024.
Business · p. 121
Our distributors in China are also typically required to make full payment in advance prior to delivery, which further discourages channel stuffing.
In 2023, 2024 and 2025, our sales generated from distributors amounted to RMB181.3 million, RMB466.6 million and RMB573.1 million, respectively, accounting for 74.9%, 70.0% and 67.1%, respectively, of our revenue for the corresponding periods.
Business · p. 164
We usually discuss with our distributors regarding their general inventory levels and anticipated purchase demand on a monthly basis.
Business · p. 166
During the Track Record Period and up to Latest Practicable Date, we did not have any channel stuffing issues.