During the Track Record Period, our catalog prices for the same products and services did not undergo significant changes.
Business · p. 138
The pricing of standardized products is determined on the basis of official list prices, with final transaction prices adjusted comprehensively by reference to customer procurement scale, partnership relationship and market competition conditions.
Business · p. 138
During the Track Record Period, other than price discounts, we did not offer additional sales rebates or other discount policies to our customers.
Specifically, healthcare reform policies have affected, and may continue to affect, our pharmaceutical glass packaging business, with their impact primarily on our tubular glass vials.
Financial Information · p. 200
While lower pharmaceutical product prices may generally create cost pressure that is transmitted along the value chain and place downward pressure on the selling prices of our products, successful bids by certain customers may increase their production and deliveries, thereby driving demand for our products and supporting our sales volume.
Financial Information · p. 200
On the other hand, volume-based procurement, medical insurance cost control and fluctuations in downstream pharmaceutical demand may adversely affect our sales volume, pricing and product mix.
From 2023 to 2024 and 2025, our revenue and sales volume for direct sales increased while our average selling price decreased. This was primarily attributable to our price-for-volume market strategy to gain more market share.
Business · p. 162
We apply a dynamic pricing policy across all customers, including Customer A, reflecting R&D complexity, market conditions, competitor pricing, order volume, and customer potential, as well as the complexity of hardware and software integrated.
In FY2023, FY2024 and FY2025, we acquired approximately 4,900, 3,700 and 1,400 tonnes, respectively, of phenol originating from countries or regions subject to PRC anti-dumping duties, representing approximately 7.4%, 5.0% and 1.9% of our total procurement volume of phenol in the respective year.
Business · p. 135
Accordingly, we are exempt from PRC anti-dumping duties in respect of the imported phenol used in our products under the bonded processing arrangement.
Business · p. 135
Our Directors are of the view that the impact of the PRC anti-dumping duties on our raw material costs and supply stability has been limited on the basis that (i) as confirmed by F&S, locally supplied phenol of comparable price and quality has remained readily available in the PRC; and (ii) we had not experienced any supply chain disruptions or substantial cost increases due to tariff policies during the Track Record Period and up to the Latest Practicable Date.
Revenue attributable to our products subject to VBP schemes amounted to RMB1,324.9 million, RMB1,478.0 million, RMB1,447.8 million, RMB682.9 million and RMB695.8 million in 2023, 2024, 2025 and the six months ended June 30, 2025 and 2026, respectively, representing 33.1%, 35.5%, 35.6%, 33.9% and 35.0% of our total revenue for the same periods, respectively.
Business · p. 135
While the VBP scheme sometimes allows us to sell our products in larger volumes, it typically exerts downward pressure on the prices at which we sell our products to our distributors.
Business · p. 136
During the Track Record Period, our historical success rate in VBP bidding was 85.7%, and all 28 VBP renewal or continuation projects in which we had participated as of the Latest Practicable Date had been successfully renewed or continued.
In relation to our revenue from the sale of electricity, tariffs are based on fixed rates determined by government-published feed-in tariff schedules and renewable energy policies applicable to waste-to-energy projects.
Business · p. 157
However, tariff levels are subject to adjustment by pricing authorities, and we have no control over these changes.
Financial Information · p. 205
For waste incineration, rates are reviewed every three to five years, and adjustments take into account changes in operating costs, including fuel, chemicals, and labor, as well as compliance with updated environmental standards, tax policy changes, and inflation.
Following negotiations with the relevant government authorities, a retroactive adjustment was made for both the current year and prior years.
Business · p. 124
We will continue to recognize revenue based on the adjusted unit price going forward, and do not expect such adjustment to have any further material impact on our financial performance.
In 2023, 2024, 2025, and the six months ended June 30, 2025 and 2026, sales revenue from our drugs that had been included either in China’s national reimbursement drug list (“NRDL”) or the national volume-based procurement (“VBP”) scheme amounted to RMB2,524.6 million, RMB3,043.9 million, RMB3,282.4 million, RMB1,626.2 million, and RMB1,844.0 million, which accounted for approximately 82.4%, 84.5%, 85.6%, 85.9%, and 83.3% of our total sales revenue of pharmaceuticals, respectively.
Business · p. 192
Historically, we maintained an overall high success rate (median: 76.6%) in bidding and renewal processes for the VBP schemes in which we chose to participate.
Business · p. 194
Our Directors are of the view that the pricing pressure from the VBP schemes would not have a material adverse impact on our business operations and financial performance, due to the following: (i) our revenue growth is expected to continue to be driven primarily by innovative drugs, as of the Latest Practicable Date, none of our innovative drugs had participated in VBP schemes, and they are not expected to be affected by the VBP scheme in the near term; (ii) our major marketed generic drugs, such as TaiJia, benefit from significant economies of scale, which effectively mitigate pricing pressure; and (iii) sales revenue of drugs included in the national VBP schemes, as a percentage of our total sales revenue of pharmaceuticals, decreased throughout the Track Record Period, from 51.0% in 2023 to 45.0% in 2024, further to 31.8% in 2025, and from 34.8% in the six months ended June 30, 2025 to 27.1% for the same period of 2026.
As of the Latest Practicable Date, our Core Products had not been included in the NRDL.
Business · p. 184
We currently expect to submit an NRDL application after product approval and participate in the annual NRDL price negotiation subject to regulatory approval and the progress of commercialization.
Business · p. 184
Based on historical NRDL negotiation practice, successful inclusion in the NRDL may require significant price concessions, and the negotiated price would generally form a unified national medical insurance payment standard.
During the Track Record Period and up to the Latest Practicable Date, we had participated in 38 rounds of regional VBP public tenders, of which our products were successfully selected in 31 tenders, representing a success rate of approximately 81.6%.
Business · p. 179
For products within the scope of VBP, we generally offer volume-based discounts ranging from 30% to 70% off our standard ex-factory prices.
Business · p. 180
For the years ended December 31, 2023, 2024 and 2025 and the three months ended March 31, 2026: (i) VBP-eligible life support products accounted for nil, 0.5%, 0.7% and 0.3% of our revenue from life support products, respectively; (ii) VBP-eligible minimally invasive intervention products accounted for 1.7%, 5.5%, 10.5% and 13.1% of our revenue from minimally invasive intervention products, respectively; and (iii) VBP-eligible in vitro diagnostics products accounted for 4.1%, 4.9%, 2.9% and 3.9% of our revenue from in vitro diagnostics products, respectively.
During the Track Record Period, the prices of icotinib, ensartinib, befotertinib and vorolanib remained stable after the price reduction via pricing negotiation process for NRDL inclusion, and was not materially affected by pricing pressure from manufacturers of competing products.
Business · p. 171
During the Track Record Period and up to the Latest Practicable Date, our products were not sold through the centralized VBP system.
Business · p. 171
On balance, the benefits of inclusion of our pharmaceuticals in the national or provincial medical insurance programs in China significantly outweighed the costs of such inclusion during the Track Record Period, and we believe the benefits of such inclusion will continue to contribute to our business expansion in the foreseeable future.
We have established a terminal price for the GBS procedure in public hospitals, generally ranging from RMB36,600 to RMB39,100 for a complete set comprising one delivery system and one retrieval system.
Business · p. 199
As of the Latest Practicable Date, our GBS is included in the provincial-level medical insurance reimbursement lists in 28 of the 30 provinces and municipalities where we have established commercial coverage, including Sichuan, Shandong, Hebei, Henan, Shanghai, Guangdong and Jiangsu.
Business · p. 199
As our GBS is a NMPA Class III Innovative Medical Device, as of the Latest Practicable Date, it was not subject to national or regional volume-based procurement (VBP) policies and programs.
among the provinces where our products are sold, only a few provinces (comprise Anhui, Shaanxi, Shanxi, Fujian and Xizang Autonomous Region) explicitly require that the Two Invoice System apply to medical consumables to regulate their distribution.
Business · p. 173
In 2024, 2025 and the six months ended June 30, 2026, our revenue derived from such regions amounted to RMB504.3 thousand, RMB886.5 thousand and RMB248.1 thousand, respectively, accounting for 1.1%, 1.4% and 0.4% of our total revenue, respectively.
Business · p. 173
Our Directors are of the view that, during the Track Record Period and up to the Latest Practicable Date, the implementation of the Two-Invoice System has not had any material adverse impact on our operations, based on the following:
Both ZEGFROVY^®^ and golidocitinib were included in the NRDL in 2024, which took effect on January 1, 2025.
Financial Information · p. 240
The regulatory regimes that directly impact golidocitinib’s pricing and market access primarily include the NRDL governing insurance coverage and reimbursement standards.
Business · p. 186
We continuously monitor regulatory developments and adapt our pricing strategy to navigate these complex mechanisms while maintaining sustainable business operations.
We have submitted the application material for the inclusion of our Core Product in the NRDL to the NHSA in June 2026, which is currently under review.
Summary · p. 19
While NRDL inclusion typically necessitates negotiated price reductions, it significantly expands market access by reducing out-of-pocket costs for patients.
Business · p. 184
As of June 30, 2026, we had completed the online price filing process for our Core Product in all 31 provinces in China.
The average selling price in Chinese Mainland generally decreased during the Track Record Period, primarily due to our strategic adjustments to and reductions in the selling prices of certain standardized and mature product models (particularly earlier-generation models with relatively stable specifications) to remain competitive in Chinese Mainland.
Business · p. 152
Going forward, we intend to adopt a more differentiated pricing strategy, maintaining competitive pricing for standardized products while preserving pricing power for higher-performance and newly launched products.
Despite the growth in sales volume of our electrolyte products, which rose from 52,670 tons in 2023 to 60,676 tons in 2024, such increase could not fully mitigate the negative effect brought by the decrease in selling prices.
Business · p. 168
In addition, our average selling price of our electrolyte products slightly decreased from approximately RMB17,000 per ton in 2024 to approximately RMB16,000 per ton in 2025 and increased from approximately RMB15,000 per ton in the six months ended June 30, 2025 to approximately RMB25,000 per ton in the same period in 2026.
Business · p. 168
Our framework sales agreements and long-term procurement agreements incorporate price adjustment mechanisms that allow us to flexibly adjust product prices in response to changes in supply and demand dynamics or the commercial environment.
Specifically, we adopt a tiered pricing model for our acoustic enhancement materials.
Business · p. 139
For such sector, we generally set a benchmark price of US$1,850 per kilogram, which is subject to adjustment based on customers’ historical and forecast procurement volumes.
Business · p. 139
For PV back-glass coating materials, (i) pricing of coating products is determined through a systematic bidding process conducted on a monthly or quarterly basis; and (ii) for PV conductive paste, we generally lock the silver price at the time when customers place orders.
The slight decline in the average ticket size of our franchise stores was primarily attributable to a decreasing market price of pork.
Business · p. 133
For instance, the market prices of pork products are subject to fluctuations throughout the hog cycle.
Financial Information · p. 199
Through the implementation of the dynamic pricing strategy, we are able to better attract franchisees and consumers, manage inventory and maintain profitability.
This led to a substantial decline in average selling prices across multiple categories of IC products.
Financial Information · p. 197
Although our gross margin remained relatively stable at 35.5% and 35.0% in 2023 and 2024, respectively, and then declined to 32.8% in 2025, revenue fluctuated from RMB4,530.9 million to RMB4,212.6 million, then increased to RMB4,741.0 million over the same years and mix shifted toward lower-priced offerings during the down-cycle.
Financial Information · p. 203
For memory and analog IC, we have consistently implemented pricing strategies aimed at maintaining competitiveness in the market.