Overall gross margin decline

Hong Kong IPO disclosure precedents · 43 companies, 43 items

Decline in overall or channel/product gross margin during the track record, with causes such as pricing pressure, industry oversupply, new product ramp-up, project mix or FX, often followed by recovery.

2026-01-30Prospectus
Axera Semiconductor Co., Ltd.爱芯元智半导体股份有限公司00600.HK

The overall gross profit margin decreased from 2022 to 2024 mainly due to the change in product mix, especially the increased proportion of on-device computing products, which generally have a lower gross profit margin compared to other products.

Summary · p. 14

Nevertheless, as we have continued upgrading our on-device computing products and gradually launched certain mid- to highend models, coupled with the growing market acceptance of these products, the selling price and gross profit margin of our on-device computing products generally increased from 2022 to 2024.

Summary · p. 14

The gross profit margin of our on-device computing products increased from 16.7% in 2022 to 19.6% in 2024.

Business · p. 225
The company's explanation, the adviser's view and the page in the filing: see Matters
2025-12-30Prospectus
Shanghai Iluvatar CoreX Semiconductor Co., Ltd.上海天数智芯半导体股份有限公司09903.HK

Our gross profit margin decreased from 2022 to 2024, primarily due to the change in our business mix, as we launched new GPGPU products and AI computing solutions to diversify our offerings, which affected our overall margin profile.

Summary · p. 10

However, our overall gross profit margin decreased from 59.4% in 2022 to 49.5% in 2023 and further to 49.1% in 2024, primarily attributable to the increase in revenue contribution from our AI computing solutions, which typically had a lower margin profile that of our GPGPU products.

Summary · p. 13
The company's explanation, the adviser's view and the page in the filing: see Matters
2025-12-18Prospectus
Shenzhen Xunce Technology Co., Ltd.深圳迅策科技股份有限公司03317.HK

Our gross profit margin under the transaction model was 62.2%, 71.0%, 74.0% and 80.9% in 2022, 2023, 2024 and the six months ended June 30, 2024, which decreased to 67.7% during the six months ended June 30, 2025.

Business · p. 199

Our gross profit margin in the asset management industry decreased from 70.1% in the six months ended June 30, 2024 to 52.1% during the same period in 2025.

Business · p. 202

During this period of moderate economic growth, certain key clients, particularly insurance companies, leveraged their stronger bargaining power to request more customized solutions.

Business · p. 202
The company's explanation, the adviser's view and the page in the filing: see Matters
2025-12-18Prospectus
Beijing 51WORLD Digital Twin Technology Co., Ltd.北京五一视界数字孪生科技股份有限公司06651.HK

The overall decrease in our gross profit margins during the Track Record Period was mainly attributable to changes in our revenue composition.

Business · p. 254

For the six months ended June 30, 2025, the decrease compared to the same period in 2024 was mainly attributable to the Smart Village project for Beijing Changping District under 51Aes.

Summary · p. 3
The company's explanation, the adviser's view and the page in the filing: see Matters
2025-11-28Prospectus
Suzhou Novosense Microelectronics Co., Ltd.苏州纳芯微电子股份有限公司02676.HK

Our revenue decreased by 21.5% from RMB1,670.4 million in 2022 to RMB1,310.9 million in 2023, primarily due to the decrease in revenue from signal chain chips and power management chips, mainly as a result of intensified price competition from leading global companies, which led us to adjust our product pricing accordingly.

Summary · p. 7

Our gross profit margin decreased from 48.5% in 2022 to 33.9% in 2023, and further decreased to 28.0% in 2024.

Summary · p. 10

The decrease in gross profit margins during the Track Record Period was mainly because of the intense market competition from leading global analog IC companies, which led us to adjust our prices to remain competitive price-wise.

Summary · p. 10
The company's explanation, the adviser's view and the page in the filing: see Matters
2025-11-25Prospectus
Lemo Services Co., Ltd乐摩科技服务股份有限公司02539.HK

The decrease in gross profit margin from the Direct Mode was mainly attributable to increase in expenses due to (i) the increasing POS occupancy fees and the cost of new massage equipments incurred for expansion of our business scale and extension of market penetration; (ii) increased expenditure in respect of operating and maintenance personnel, resulting in a slowdown in gross profit growth; and/or (iii) given the more proactive POS expansion approach adopted under the Direct Mode, the increased proportion of gross profit generated from the Direct Mode which typically recorded a lower gross margin compared to that of the Partner Mode.

Summary · p. 15

Despite our revenue increased by 35.98% from the year of 2023 to the year of 2024, the increasing cost slowed down the growth of our profit for the year of 2024.

Summary · p. 16

The profit decreased from RMB93.88 million for the eight months ended 31 August 2024 to RMB88.55 million for the eight months ended 31 August 2025 mainly attributable to the Listing expenses incurred in 2025.

Summary · p. 16
The company's explanation, the adviser's view and the page in the filing: see Matters
2025-09-30Prospectus
Shanghai Zhida Technology Development Co., Ltd.上海挚达科技发展股份有限公司02650.HK

From 2022 to 2024, our revenue decreased from RMB697.1 million to RMB593.4 million.

Business · p. 256

We acknowledge the decrease in gross profit margin from approximately 22.7% to 16.5% during the three months ended March 31, 2025, compared to the same period in 2024.

Business · p. 264

This decline is primarily due to intensified pricing pressure from our major customers, especially automakers.

Business · p. 264
The company's explanation, the adviser's view and the page in the filing: see Matters
2025-06-30Prospectus
Beijing Xunzhong Communication Technology Co., Ltd.北京讯众通信技术股份有限公司02597.HK

Our overall gross margin, which stood at 24.1%, 21.4%, and 22.1% for the respective periods, respectively, is affected by the components of our service and solution offerings and their respective margin.

Financial Information · p. 318

The average revenue per key customer decreased by 9.4% to RMB24.5 million in 2023, primarily due to a decrease in the average revenue contribution of key customers that primarily purchased our Contact Center SaaS services, mainly because the introduction of LLMs weakened the interest of our key customers in our Contact Center SaaS services, which did not yet fully integrate LLMs.

Business · p. 183
The company's explanation, the adviser's view and the page in the filing: see Matters
2025-06-18Prospectus
SAINT BELLA Inc.圣贝拉有限公司02508.HK

During the Track Record Period, our profitability and gross profit margin were affected by the fact that some of our postpartum centers were at the initial ramp-up stage.

Financial Information · p. 347

Out of the 18 newly added self-operated centers in 2024, nine were opened in the second half of 2024.

Financial Information · p. 349

For the year ended December 31, 2024, there was an increase in our rental and related costs as a percentage of our revenue compared to the year ended December 31, 2023 primarily due to the increased rental and related costs for hotel rooms as a result of (i) the room charges for hotel rooms we rented on a fixed-term basis for some of our new centers which had not been occupied; and (ii) a general increase in room charges per night.

Financial Information · p. 350
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-09-27Prospectus
Zhejiang Taimei Medical Technology Co., Ltd.浙江太美医疗科技股份有限公司02576.HK

In the clinical trials business line, our digital clinical research services recorded negative gross profit and gross profit margin.

Summary · p. 19

Specifically, in 2022, the gross profit margin of the digital clinical research services in clinical trials business line decreased significantly from -5.9% in 2021 to -16.8% in 2022, mainly because (i) we hired more talents in 2022 to support our development of these services.

Summary · p. 20

In marketing activities business line, our digital clinical research services recorded negative gross profit and gross profit margin in 2022 and 2023.

Summary · p. 20
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-07-31Prospectus
Black Sesame International Holding Limited黑芝麻智能国际控股有限公司02533.HK

Our gross profit margin was 36.1%, 29.4%, 24.7%, 18.7% and 60.9% in 2021, 2022, 2023 and the three months ended March 31, 2023 and 2024, respectively.

Summary · p. 26

The decrease in gross profit margin from 2021 to 2022 was due to the increased revenue contribution of autonomous driving products and solutions, which involves more hardware components and generally entails comparatively lower gross profit margin.

Summary · p. 26

our revenue slightly decreased from RMB29.3 million in the three months ended March 31, 2023 to RMB27.5 million in the three months ended March 31, 2024.

Summary · p. 25
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-06-28Prospectus
BAIWANG CO., LTD.百望股份有限公司06657.HK

Our gross profit margin decreased from 47.6% in 2021 to 40.8% in 2022, primarily due to the decrease in gross profit margin for our digital precision marketing services, as the growth of referral fees in 2022 in connection with our marketing agents outpaced that of revenue in the same period.

Summary · p. 14

However, the gross profit margin of our digital precision marketing services decreased from 30.7% in 2021 to 8.4% in 2022 and further to 7.0% in 2023, primarily because we incurred substantial referral fees to expand the business scale of our digital precision marketing services and to continue to engage marketing agents.

Business · p. 271

To improve our profitability of digital precision marketing services, we have implemented the following measures: (1) deepening collaboration with financial service providers,

Business · p. 271
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-06-24Prospectus
Xi’an Kingfar Property Services Co., Ltd.西安经发物业股份有限公司01354.HK

Our overall gross profit margin decreased from 14.3% in 2022 to 13.7% in 2023, primarily due to the decrease in gross profit margin of (i) our residential property management services from 16.8% in 2022 to 14.7% in 2023, and (ii) our commercial property management services from 25.3% in 2022 to 21.8% in 2023.

Summary · p. 6

In response, we endeavor to maintain or raise our property management fee rates when renewing the expiring property management service agreements to maintain or improve our profit margin.

Financial Information · p. 324
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-06-20Prospectus
Tianju Dihe (Suzhou) Technology Co., Ltd.天聚地合(苏州)科技股份有限公司02479.HK

Our gross profit margin for data management solutions was 44.6%, 34.2% and 28.0% for 2021, 2022 and 2023, respectively.

Financial Information · p. 316

For example, projects with more standardized components generally have higher gross profit margins than those with more customized components as we generally incur higher labor costs and other costs to develop customized components tailored to the customers’ specific needs.

Financial Information · p. 316
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-05-17Prospectus
Qunabox Group Limited趣致集团00917.HK

In 2022, as the recurrence of the COVID-19 pandemic posed challenges to our business, our gross profit margin decreased in 2022 as compared to 2021.

Summary · p. 14

In 2023, our overall gross profit margin further decreased primarily due to our increase in cost of sales, especially information technology service fees, attributable to our increased procurement of third-party media resources to deliver standard marketing service, as we invested in delivering such marketing service via utilizing short video platforms since early 2023, in line with our service innovation and expansion strategy.

Summary · p. 14
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-05-08Prospectus
HOLLWIN URBAN OPERATION SERVICE GROUP CO., LTD泓盈城市运营服务集团股份有限公司02529.HK

The gross profit margin of our property management services decreased from 20.0% in 2021 to 14.5% in 2022, primarily due to the increase in labor costs (resulting from the increase in the average labor salary and the number of labor engaged) which was in line with our business expansion from 2021 to 2022, and the increase in unit price of electricity from 2021 to 2022.

Summary · p. 12

Our overall gross profit increased from RMB107.3 million in 2021 to RMB121.5 million in 2022 while the overall gross profit margin slid to 23.0% in 2022 from 24.9% in 2021, primarily due to the decrease in gross profit margin of our property management services to 14.5% in 2022 from 20.0% in 2021, primarily due to the increased unit price of electricity, combined with factors such as tightened pandemic prevention.

Summary · p. 12

Benefiting from the cost-saving measures, our gross profit margin of our property management services increased from 14.5% in 2022 to 15.1% in 2023.

Summary · p. 12
The company's explanation, the adviser's view and the page in the filing: see Matters
2024-03-20Prospectus
Lianlian DigiTech Co., Ltd.连连数字科技股份有限公司02598.HK

Our gross profit margins were 64.3%, 68.2%, 62.7%, 64.1% and 57.9% in 2020, 2021, 2022 and the nine months ended September 30, 2022 and 2023, respectively.

Summary · p. 17

We are currently expanding acquiring services despite its lower margin because acquiring services can help us capture a larger market share, increase overall transaction volume, and broaden the customer base.

Summary · p. 17
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-12-27Prospectus
ROBOSENSE TECHNOLOGY CO., LTD速腾聚创科技有限公司02498.HK

We recorded a gross margin of negative 7.4% in 2022.

Business · p. 224

Nevertheless, compared to 14.0% in the same period of 2022, our gross margin decreased in the six months ended June 30, 2023, mainly attributable to: (i) a decrease in the revenue contribution by products for robotics and other applications, which generally enjoyed relatively higher gross profit margins than most of our other business lines due to the generally higher average selling prices of mechanical LiDAR products; and (ii) a decrease in the gross margin of solutions from 57.6% to 47.3%, which was mainly due to the increase in revenue contributed by V2X solutions which generally have a lower margin than that of our other solutions.

Business · p. 221
The company's explanation, the adviser's view and the page in the filing: see Matters
2023-12-12Prospectus
iMotion Automotive Technology (Suzhou) Co., Ltd.知行汽车科技(苏州)股份有限公司01274.HK

Our gross profit margin remained relatively stable at 20.1% in 2020 and 20.6% in 2021, and decreased to 8.3% in 2022, primarily because we generated a greater portion of revenue from sales of AD domain controller solutions following the series production of the SuperVision™project in collaboration with Mobileye starting from October 2021, which had a lower gross profit margin as compared to other business segments.

Business · p. 299

Our gross profit margin increased from 6.4% for the six months ended June 30, 2022 to 7.6% for the six months ended June 30, 2023, primarily because we gradually achieved stronger economies of scale and had increasing bargaining power against suppliers following the series production of our products.

Financial Information · p. 377

In 2021 and 2022 and for the six months ended June 30, 2022 and 2023, the gross profit margin of our AD domain controller solutions was 5.3%, 7.4%, 6.3% and 7.2%, respectively, which was relatively low as compared to other business segments.

Business · p. 296
The company's explanation, the adviser's view and the page in the filing: see Matters

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