For our construction design and consultancy services, our pricing is generally determined with reference to the guided prices promulgated by government authorities or national power grid companies.
Business · p. 128
For our EPC projects, we adopt a cost-plus pricing strategy.
Business · p. 128
We maintain open communication with customers regarding changes in material prices, logistics costs and exchange rates and negotiate pricing adjustments as needed.
During the Track Record Period, drivers' service fees accounted for 85.3%, 87.8%, 87.3%, 87.7% and 84.4% of our ride-hailing services revenue for the respective periods.
Financial Information · p. 229
In 2025, the gross profit margin of our ride-hailing services business recovered to 0.3% and the adjusted net loss narrowed, primarily because from the fourth quarter of 2025 we shifted our focus from scale expansion towards profitability improvement, optimizing our drivers' service fee.
Financial Information · p. 229
Going forward, we intend to improve the gross profit margin of our ride-hailing services business by growing order volume and GTV through our phased city development strategy and dynamically optimizing drivers' service fees, sustain gross profit contribution from our passenger transportation services and digitalization and business solutions businesses, and enhance operational efficiency across our business segments to achieve positive net cash from operating activities and net profit.
We generally adopt a cost-plus pricing model, where profit margins are adjusted based on factors, including but not limited to, (i) order volume and delivery schedule, (ii) market demand and customer recognition of our products; (iii) prevailing market prices of comparable trench covers in the market, (iv) procurement and production costs for the products, (v) logistics costs and other miscellaneous costs and expenses, and (vi) payment conditions.
Business · p. 168
During the Track Record Period, the average selling price of our cable trench covers and drainage trench covers experienced a downward trend, see "– Principal components of our results of operations – Revenue by product" in this section.
Financial Information · p. 220
Our profit margins and results of operations may be directly and materially affected by the selling pricing of our composite trench cover products which varied during the Track Record Period in line with our pricing policy.
We price our products based on various factors, including the costs of the materials, production costs, order volumes, financial goals, competition and the size of display modules.
Business · p. 158
Our Directors are of the view that such strategies did not have a material adverse impact on our business operations or financial performance during the Track Record Period and up to the Latest Practicable Date, primarily because: (i) our customers generally prioritise product stability, consistency, reliability and delivery capability over price alone, as evidenced by our customer retention rate reaching 82.9%, 95.7% and 98.2% in 2023, 2024 and 2025, respectively; (ii) we generally maintained a considerably higher gross profit margin during the Track Record Period compared to industry peers which adopted low-price strategies, while the selling prices of our products were generally in line with market prices according to CIC; and (iii) our competitive strengths in technology, product quality, production scale and customer service have enabled us to compete on the basis of overall value, as reflected in our prominent position in the global e-paper display industry.
The revenue and gross profit margin decline in the smart door lock segment was largely attributable to intensified market competition, particularly from smart lock suppliers offering lower-priced, similar, and undifferentiated products.
Business · p. 145
From 2023 to 2024, increased market competition, particularly from lower-priced products offered by competitors, led to a decline in both the sales volume and revenue of Smart Door Locks, which in turn further compressed gross profit margin during this period.
Business · p. 151
This strategic deprioritisation aimed to reallocate resources toward higher-margin and more scalable solutions within the intelligent commerce segment, such as intelligent business solution and intelligent park management solution, which offer higher technical complexity, stronger competitive advantages, and better long-term profitability, and are better aligned with the Company's long-term growth strategy.
We employ a dynamic, market-driven pricing strategy that balances competitiveness with sustainable profitability.
Business · p. 174
Specifically, for our automotive-grade SiC power module products, our pricing strategy is forward-looking.
Business · p. 174
For our power semiconductor gate driver products, we primarily adopt a cost-plus pricing model and dynamically adjust expected product gross margins within a certain range based on our customers’ industry standing, expected order quantities and the technical complexity of the product.
All of our in-network medical institutions adhere to such policies on centralized procurement of decocting pieces, which may lead to reduction in prices of commonly-used decocting pieces and in turn the revenue and gross profit margin of our provision of TCM healthcare services.
Summary · p. 15
All of our in-network medical institutions adhere to such national policies on centralized procurement of TCM patent medicines, which caused downward pricing pressure on our commonly used medicines and could lead to reduced revenue and gross profit margin.
Summary · p. 15
Due to the changes in the reimbursement standard, sale of TCM formula granules declined.
This was primarily attributable to our market penetration strategy, under which we reduced the average selling price of our GNSS chips, modules and related solutions to drive sales scaling and capture market share, even though we also intensified internal efforts to reduce costs and enhance operational efficiency.
Business · p. 161
Our gross profit margin increased from 9.8% in 2024 to 11.1% in 2025, primarily because the revenue from the GNSS chips, modules and related solutions with higher gross profit margin as a percentage of the total revenue increased to 32.8% in 2025.
Business · p. 161
Finally, we structure tiered pricing models that reward higher volume commitments with more favorable terms.
For instance, during the Track Record Period, we entered into several high-volume government procurement contracts at prices significantly lower than those in other contracts as we considered these large-volume orders strategically advantageous for enhancing our competitive position and brand recognition, which were in line with the industry practice and had a material impact on our revenue and gross profit margin.
Financial Information · p. 178
We participate in provincial-level centralized bidding processes and determine our bid prices independently and in a reasonable manner prior to submission.
We adopt a pricing strategy combining cost-plus pricing and market-based pricing.
Business · p. 116
From the customer perspective, large state-owned enterprise customers and long-term cooperative customers are generally offered volume-based discounted prices, while standard retail prices apply to small-scale customers.
Business · p. 116
To expand coverage and deepen penetration into regional public transport markets, we determine pricing for our joint ventures with public transport enterprises by taking multiple factors into consideration, including economic returns from the share of profits of joint ventures.
As of the Latest Practicable Date, the generic names of three of our major products have been included in the national centralized procurement catalog, namely Tamiflu® (oseltamivir phosphate capsules), Regpara® (cinacalcet hydrochloride tablet) and Coniel® (benidipine hydrochloride tablet).
Business · p. 165
However, leveraging the strong brand reputation of the product and our flexible multi-channel commercial model, we achieved sustained growth in both sales volume and profit contribution from Tamiflu®, resulting in a net positive impact on our financial performance.
Business · p. 165
Although provincial centralized procurement has led to periodic declines in sales volumes of certain products (such as Asmeton®), and upstream supplier strategy adjustments (such as supplier’s partial reallocation of Asmeton® resources) have exacerbated such fluctuations, we have mitigated these effects through channel optimization and out-of-hospital market expansion.
We generally set prices of our products on a cost-plus basis after taking into account a combination of factors, among other things, production factors such as cost of raw materials and other manufacturing costs, expected profit margins, type of product sold, product features, quality and production techniques involved, extent of customization (if any), and design, research and product development efforts involved; as well as market factors such as market trends and demand, target markets and customers and their purchasing power, business relationship with our customers (such as duration of business relationship and historical sales volume to such customers), and comparable product prices set by our competitors.
Business · p. 147
In line with industry practice, customers require us to participate in rebate arrangements as part of the overall commercial terms. Such rebate arrangements form an integral part of our pricing framework and are generally determined based on agreed criteria, including purchase volume and sales targets.
Business · p. 148
During the Track Record Period, our selling prices for our products remained relatively stable as we adopted a cost-plus pricing approach that factors in raw-material costs, processing costs and agreed margins with our customers.
Pursuant to the Announcement for VAT, effective from January 1, 2026, Human TAT became subject to a value-added tax rate of 13%, as compared to 3% previously.
Summary · p. 15
The average selling price of Human TAT for Domestic Sales in the first five months of 2026 decreased by a high-single-digit percentage as compared to the corresponding period in 2025, which in turn adversely affected the gross profit of our Human TAT business and our net profit for the year.
Summary · p. 15
The winning of bids of our Human TAT in the VBP schemes led to increased average selling prices of our Human TAT to distributors in Domestic Sales.
As a result, the gross profit margin of our harmonic reducers and other precision components declined from 29.9% in 2023 to 24.6% in 2025.
Financial Information · p. 212
We adopted such pricing strategies to facilitate customer acquisition, accelerate order volume growth and enhance our competitive positioning as the market entered a phase of rapid expansion.
We require our distributors to strictly comply with the Two-Invoice System in China.
Business · p. 164
We have adopted a series of internal control measures to monitor the implementation of the Two-Invoice System in different areas to ensure our continuous compliance with relevant rules, regulations, and policies.
Business · p. 164
Our Directors confirm that during the Track Record Period and up to the Latest Practicable Date, we (i) had not been deemed by competent authorities to have violated or circumvented any law, regulations, rules or policies in relation to the Two-Invoice System, (ii) had not been disqualified from participating in public tendering processes in any province in China, (iii) had not been subject to any administrative fines or penalties by competent authorities in relation to the Two-Invoice System, and (iv) had not received any warning or notice from any competent authorities in any provinces in relation to our compliance with the Two-Invoice System.
In 2023, 2024 and 2025, our average selling price of caffeine per kilogram was RMB93.0, RMB68.3 and RMB64.8, respectively.
Financial Information · p. 208
Our operating profit of caffeine products decreased by 42.2% from RMB622.3 million in 2023 to RMB359.7 million in 2024, and further decreased by 25.1% to RMB269.5 million in 2025.
Business · p. 184
During the Track Record Period, revenue generated from our caffeine products declined primarily due to a decrease in the average selling price of our caffeine products, due to industry-wide supply and demand imbalance.
However, this may also lead to a decrease in the price of our products in certain provinces due to the transparent, multi-party negotiation mechanism for pricing.
Business · p. 165
NRDL inclusion enhanced its affordability, drove market adoption, and led to a significant increase in its sales volume, which effectively offset the impact of the price reduction.
Business · p. 188
Overall, we believe that during the Track Record Period, the overall benefits of our drugs being included in the NRDL, provincial, or local medical insurance catalogs far outweighed the associated pricing pressure, and we believe these benefits will continue to contribute to our business growth in the foreseeable future.
The relatively low gross profit margin under our JDM model in 2025 was primarily attributable to our current customer mix, as we mainly serve large-scale domestic downstream customers under the JDM model, which generally involves lower pricing.
Business · p. 142
As we increasingly derived revenue under the JDM model during the Track Record Period, our gross profit margins were significantly influenced by the JDM model’s performance, which fluctuates depending on our collaboration dynamics with respective customers, including large domestic customers with strong bargaining power.
During the Track Record Period, the average selling price of the compound seasonings we sold was RMB21.6/kg in 2023, RMB21.2/kg in 2024 and RMB20.0/kg in 2025, and RMB20.4/kg in the three months ended March 31, 2025 and RMB19.4/kg in the three months ended March 31, 2026.
Financial Information · p. 164
The decline in average selling price in 2025 was mainly attributable to intensified market competition in the compound seasoning industry.
Financial Information · p. 164
Looking ahead, we expect sales volume to continue its growth trajectory, while average selling prices are expected to remain relatively stable, as we focus on maintaining customer relationships, supporting market expansion and optimizing gross profit performance.
Our average spending per customer decreased from 2023 to 2024 and further to 2025, primarily attributable to our strategic adjustment of product mix and pricing, which was implemented to attract a broader customer base and enhance our competitiveness amid evolving market trends.