The service fee was changed to a fixed percentage of the ride fare in February 2023 to be in line with the evolving industry practice.
Summary · p. 3
Our net service fee rate increased from 2022 to 2023, primarily because we raised our overall service fees charged to private car owners providing carpooling rides on our platform.
Business · p. 232
Our net service fee rate decreased in 2022, primarily because we incurred increased subsidies for private car owners, a portion of which have been net off to derive our revenue, to incentivize them to provide rides on our platform.
Each piece of our gold jewelry products is subject to a fixed price upon launch and such price generally will not be adjusted along with the slight fluctuation of our material and production costs.
Business · p. 184
To ensure a consistent and unwavering brand image, our gold jewelry pieces are priced uniformly across all our offline and online boutiques; but from time to time, we participate in promotional events hosted by third-party platforms, such as the Double 11 Shopping Festival (雙十一購物節), and the Double 12 Shopping Festival (雙十二購物節).
Business · p. 184
If there is a notable increase in the prevailing gold market price, we would adjust the prices of our products based on the current market price to shift the cost to our customers accordingly.
Our total revenue decreased by 14.6% from RMB3,133.8 million in 2022 to RMB2,677.1 million in 2023 due the general decline in market demands for our products coupled with the increase in market supply of toluene oxidation products, resulting in the drop in both sales volume and average selling price of our products.
Summary · p. 2
During the Track Record Period, our gross profit margin in mainland China slightly decreased from 21.4% in 2021 to 20.7% in 2022 primarily due to our adoption of a pricing strategy to sell our toluene oxidation products at a relatively lower price in light of the market competition and the volatile downstream market demand in order to gain market share in 2022.
Business · p. 166
Our gross profit margin in mainland China further decreased to 10.8% in 2023, which was primarily due to the decrease in margin of our toluene oxidation products and toluene chlorination products from 20.0% and 27.5% in 2022 to 10.0% and 19.5% in 2023 due to the decrease in downstream demands as many downstream industry customers tend to lower their inventory level or slow down their inventory replenishment amid economic uncertainty and we adopted a pricing strategy to sell our products at a relatively lower price to maintain our market share in light of the unfavourable industry environment and to cope with the intensified market competition resulted from the increase in market supply of toluene oxidation products.
The increase in the average price under the CPC model from 2021 to 2022 was primarily due to our increased advertising service fee. The average price under the CPC model remained stable at RMB0.61 in 2022 and 2023.
Business · p. 278
The decrease in the average price under the CPA model in 2023 was mainly because we offered more advertising services under the CPA model with low unit fee in order to attract more new advertising customers.
Business · p. 278
We did not charge any fees from our advertising customers under the CPM model in 2022 and 2023, primarily because the customers for whom we charge on a CPM basis did not continue to purchase advertising services under the CPM model from us in 2022 and 2023.
Effective from February 1, 2023, we adjusted our commission rate upward and we typically charged a commission at approximately 3.5% of the used vehicle auction price, with the total commission charge for each transaction subjecting to both a floor of RMB500 and a cap of RMB3,000.
Summary · p. 11
We have managed to adjust our commission rate upward primarily because our industry leading market share and transaction efficiency, large and stable supply of used vehicles, as well as the broadest offline geographic coverage, have granted us stronger pricing power in setting used vehicle auction commission rates, and the adjusted commission rate is still in line with the industry standard.
Our customized service fee schedule is updated periodically to match the fluctuating cost components and market rates.
Business · p. 218
Our Directors confirmed that our customers did not contend the updates during the Track Record Period and our customers are also unlikely to contend the updates to our fee schedule in the future.
Business · p. 219
Going forward, our Group is going to manage the potential increase in freight rates through more frequently updating its fee schedule to customers, expanding its supplier base and negotiating with our suppliers for more competitive rates given our significant service volume.
Our parking lot operation service charges are subject to government guidance price, regardless of our service models.
Business · p. 234
Within the range of government guidance prices, we are entitled to independently determine specific implementation charging standards, and we shall then go to the Development and Reform Department of the district (county or city) to which our parking lots belong to file the charging standards for parking services and submit corresponding materials in accordance with regulations.
Business · p. 234
Their pricing requires approval from Changsha City Financial Evaluation Center.
As a result, our profitability for both online advertisement solution services and distribution services depends on the rate of rebates received from media platforms and granted to customers.
Business · p. 262
The average rebate rate we received from media platforms generally decreased during the Track Record Period.
Business · p. 263
During the Track Record Period, the net rebate rate for online advertisement solution and distribution services fluctuated, mainly affected by (i) the different rebate policies of media platforms as we diversified our media platform bases and increased spending with them, while the media platforms typically determine their rebate rates as part of their business strategies and grant rebates based on their business plans and needs; (ii) a general decrease in the average rebate rate received from media platforms as the competition intensified across the industry; and (iii) our efforts to pass on the movement in cost to our customers by adjusting the rebate rates granted, aiming to maintain profitability.
As a result, any changes in the domestic market price of imported KCL and SOP, and to a less extent, the domestic market price of our other products, will affect our revenue and financial performance.
Financial Information · p. 359
The average selling price of our KCL and SOP were below domestic market price of imported KCL and SOP in the PRC during FY2021, FY2022 and FY2023 primarily due to the competitive pricing we offered to our key customers such as large agricultural reclamation companies and agribusiness companies for their relatively large sales orders during the same years, so as to develop and maintain a strategic cooperation network with these key customers.
Financial Information · p. 360
For our pricing strategy, we generally determine the selling prices of our products based on a number of factors, such as raw material costs, labour and manufacturing costs, inventory level, prevailing domestic market price, specifications of products, sales volume and transportation costs.
The rates of rebates are set by the media partners annually depending on the actual advertising spending on the acquisition of advertising space on media platforms and/or degree of fulfilment of certain KPIs set by the media partners, the sales and marketing strategies of the media partners in incentivising, attracting and retaining customer accounts.
Business · p. 170
However, any significant fluctuations in rebates from media partners may have a significant impact on our revenue and results of operations.
Financial Information · p. 252
The decrease in our gross billing margin for the nine months ended 30 September 2022 and 2023 was mainly due to the increase in traffic acquisition costs with the decrease in rebates from media partners, such as Supplier H, Supplier I and Supplier J, caused by the decrease of our customers’ demand for placement of mobile ads with them and the change of rebate policies of our media partners as their business plans may vary from time to time.
For the years ended December 31, 2020, 2021 and 2022 and the six months ended June 30, 2022 and 2023, the average annual pledged vehicle monitoring fee per service agreement was approximately RMB39,300, RMB38,900, RMB34,800, RMB38,600 and RMB36,100, respectively.
Financial Information · p. 273
Despite the fact that our average annual pledged vehicle monitoring fees per service agreement decreased during such periods, our gross profit margin of pledged vehicle monitoring services increased from 38.2% in 2021 to 41.5% in 2022 and from 40.4% in the six months ended June 30, 2022 to 43.5% in the same period in 2023 as we gradually reduced our reliance on manpower and realized economies of scale.
Our gross margin for both medical equipment and cloud platform generally decreased from 2020 to 2022, primarily because we strategically promoted our sales and installing of medical equipment and software at a relatively low gross margin level to acquire new enterprise customers.
Business · p. 193
In addition, during the Track Record Period, among all of our medical equipment sales, five transactions in 2021 and two transactions in the six months ended June 30, 2023 incurred gross loss, and revenue attributable to these sales with gross loss was RMB47.1 million and RMB12.2 million in the same year/period, respectively, accounting for 21.6% and 11.7% of the total revenue generated from our sales and installing of medical equipment and software in the same year/period, respectively.
The decrease in the average spending per outpatient visit during the same periods was primarily due to the decrease in pricing of certain pharmaceuticals as impacted by implementation of the centralized volume-based drug procurement regime in China.
Business · p. 185
However, for pharmaceuticals and medical consumables covered by the public medical insurance programs, our self-owned medical institutions that are Medical Insurance Designated Medical Institutions are subject to the pricing guidelines set by the relevant local healthcare administrative authorities and the pharmaceutical zero mark-up policy (藥品零加成政策), which is a requirement to sell essential pharmaceuticals to patients at the procurement bidding price without any mark-up.
We generally determine the pricing of our services on a cost-plus basis, taking into account a combination of a number of factors, which are set out below:
Business · p. 207
As a result of our pricing strategy, our Directors believe that our Group was generally able to pass the risks arising from any fluctuation in the costs of the hardware, software or equipment to our customers during the Track Record Period.
Business · p. 210
Our Directors confirm that during the Track Record Period, we had not offered any rebate or sales incentive to any of our customers.
Furthermore, the average selling price of our LiDAR products for ADAS applications declined during the Track Record Period, primarily due to factors such as the transition from prototype sample phase to mass production, and negotiation with the customers.
Summary · p. 7
(i) transition from prototype sample phase to mass production, (ii) contractual agreements on future pricing with certain design-win customers upon SOP, which stipulate annual price reductions ranging from 1% to 5%, (iii) market competition and (iv) bargaining power of our automotive OEM customers.
Summary · p. 9
Notwithstanding the notable decrease in the average selling price of our products for ADAS during the Track Record Period, we do not expect such significant decline in the future.
Since we only launched our logistics smart robotic products and services in late 2020, as a late joiner, we decided to use low-pricing strategy to capture market share in logistics smart robotic products and services and gain sufficient demand for our products, which enabled us to establish our market position in the industry and ranked eighth and accounted for 2.2% of China’s logistics and mobile smart robotic products and services industry in terms of revenue in 2022 according to Frost & Sullivan.
Financial Information · p. 437
The average selling price of general service smart robotic products and services then decreased to RMB29,220 per unit in FY2022 due to the change of revenue mix where more than 70% of our sales volume of general service smart robotic products and services in FY2022 was contributed by sales of first edition of Cruzr robots (compared to less than 10% of our sales volume of general service smart robotic products and services in FY2021), which entailed a relatively lower average selling price of RMB8,060 per unit in FY2022 as our Group adjusted the selling price of these products downward to boost their sales in order to deal with the slow-moving inventory.
Summary · p. 6
Our Directors believe that as we continue to expand our market shares and presence in the industry, we will be able to increase our price to normal industry level.
The average and range of time gap between pricing the gold bullion with and the actual delivery to our customers during the Track Record Period was 78.7 days and 0 to 261 days, respectively, which are in line with the industry average.
Business · p. 202
Historically, as a result of the price fixing arrangement, our average selling price for FY2021 was higher than the average gold spot price in the PRC while those for FY2020, FY2022 and 6M2023 were lower than the average gold spot price in the PRC.
Business · p. 206
In view of the above, our Executive Directors are of the view that our pricing arrangements with our customers are reasonable and sustainable.
the decrease in revenue from the provision of express delivery services by approximately RMB37.0 million, mainly due to the decrease in our average selling price as a result of intensified market competition
Summary · p. 12
We adopt a cost-plus approach for our pricing policy and take into account the following factors, among others, in determining the fees we charge our customers:
Business · p. 259
Additionally, operating in a highly competitive industry has placed significant pressure on our capacity to promptly and fully adjust prices for our customers.
The prices of our hydrogenated benzene-based chemicals and LNG are subject to frequent negotiation and adjustment, in some cases several times a month or on a daily basis, in response to market price fluctuations.
Business · p. 227
Pursuant to the provisions of the concession agreement we entered into with the local government of Jiyuan city, the end-user price of our coal gas shall follow the benchmark rates approved by the pricing authorities in Jiyuan city.
Business · p. 228
As advised by the PRC Legal Advisers, the selling prices of our hydrogenated benzene-based chemicals and LNG are not subject to any government pricing guidelines.
This allows us to benefit from economies of scale, effectively mitigating the effects of the industry’s customary annual price reduction.
Business · p. 288
The selling prices of our products are usually renegotiated on an annual basis throughout the vehicle’s lifecycle.
Business · p. 288
In general, we intend to pass on increases in cost of raw materials to our customers if such increases affect our business operation and profit margin.