Market competition intensified significantly in 2024 with substantial industry-wide over-capacity, resulting in a further sharp decrease in the selling prices of our products.
Business · p. 134
The average market price of lithium-ion battery electrolyte additives declined significantly from RMB200 thousand–RMB500 thousand per tonne in 2022 to RMB55 thousand per tonne in 2024 and early 2025, according to CIC.
Financial Information · p. 171
It is estimated that the average price for VC and FEC will increase to RMB106.4 thousand per tonne in 2026, according to the same source.
During the Track Record Period, the average selling price for our NIPT kits was RMB31.1 thousand, RMB28.6 thousand and RMB26.5 thousand in 2023, 2024 and 2025, respectively.
Business · p. 150
During the same period, the average selling price of our NIPT kits in Jiangsu Province declined from RMB34.2 thousand to RMB25.5 thousand.
Business · p. 149
The average selling price of our NextSeq 550AR sequencer decreased from RMB1.3 million in 2024 to RMB0.9 million in 2025, primarily due to a strategic adjustment in our sales approach designed to accelerate market penetration of our IVD test kits.
For domestic customers, pricing is mainly determined through tenders.
Business · p. 155
To incentivize volume commitments and strengthen partnerships with strategic customers, we apply volume-based pricing mechanisms that reflect economies of scale.
Business · p. 155
Our intelligent sensing business employs a cost-plus pricing model, where pricing is primarily determined by production costs with the addition of reasonable profit margins.
We are generally not subject to significant pricing pressure from large insurance company clients as our pricing model is primarily outcome-based, with fees tied to measurable value delivered, such as FYPs paid and reductions in loss ratios relative to predetermined targets.
Business · p. 150
Rather than applying a uniform fee structure, we determine pricing on a case-by-case basis depending on factors such as the type of insurance product, the complexity of the services required, the underlying risks involved and the volume of cases processed.
Depending on the customer and project, taking into account factors such as changes in incremental unit costs as production volumes increase and fluctuations in raw material prices, we may negotiate with the customers from time to time to adjust the price.
Financial Information · p. 145
Such pricing mechanism may exert pressure on our overall averse selling prices and the gross profit margin.
Financial Information · p. 146
Our ability to effectively manage price reductions and efficiency improvements, while maintaining product quality and technological competitiveness, is critical to sustaining our profitability and business growth.
The pricing mechanism of our products is based on factors such as product type, degree of customization, R&D investment and manufacturing costs.
Business · p. 120
In the event of significant fluctuations in raw material prices, tariffs or exchange rates, we may negotiate price adjustments with customers on a case-by-case basis to preserve stable client relationships.
We consider a number of factors in determining the pricing of our products, including, among others, raw material price trends, level of competition for similar products, customers' industry positioning, nature of our relationship with customers and the relationship tier with customers, and impact on project decisions.
Business · p. 158
To acquire customers and secure participation in key vehicle programs, we adopted commercially competitive pricing strategies.
Business · p. 162
These decisions, intended to accelerate customer adoption, placed additional pressure on gross margins.
As of December 31, 2025, five of our approved products were included in national or provincial VBP schemes, namely Kangmairui, Li’erban, Qianweitai, Weidagan and Pirui.
Business · p. 166
While VBP participation provides volume certainty and expanded market access, it creates downward pressure on our product pricing and requires careful strategic consideration regarding our participation decisions and pricing proposals.
Business · p. 166
Five of our marketed products, including key products such as Kangmairui and Li’erban, were eligible to participate in this follow-on procurement and successfully won the bids in February 2026.
In particular, the average price of battery-grade lithium hydroxide in China decreased from RMB233 thousand per ton in 2023 to RMB72 thousand per ton in 2024 and further to RMB63 thousand per ton in 2025, while the average price of battery-grade lithium carbonate in China decreased from RMB230 thousand per ton in 2023 to RMB81 thousand per ton in 2024 and further to RMB68 thousand per ton in 2025.
Financial Information · p. 167
Accordingly, our revenue during the Track Record Period was materially affected by fluctuations in the selling prices of our lithium compound products.
Financial Information · p. 167
As downstream demand from sectors such as new energy vehicles and energy storage continues to grow, together with the gradual reduction in excess supply-side capacity, the average prices of lithium hydroxide and lithium carbonate have increased since the second half of 2025 and are expected to enter an upward cycle starting from 2026, according to Frost & Sullivan.
As of December 31, 2025, eight of our approved products were included in the NRDL, comprising three key marketed products, Kangmairui, Li’erban and Dinuo’an, and five other products, namely azacitidine, silodosin, temozolomide, esomeprazole sodium and sugammadex sodium.
Financial Information · p. 217
Our revenue from sales of our these products accounted for 20.4%, 31.6% and 29.3% of our total revenue, respectively, for the years ended December 31, 2023, 2024 and 2025.
Financial Information · p. 217
While the inclusion of a pharmaceutical product in these national or other government-sponsored medical insurance programs can significantly increase its demand and potentially sales volume, products so included were subject to relevant pricing regulation and face pricing pressure in the centralized tender process.
In 2024, we implemented various measures to adjust our product structure and pricing to build long-term brand value, including: (i) a retail pricing policy requiring all self-operated stores under Mao Yuan Chang and franchised stores to sell products at the same non-negotiable retail price established by us (i.e. our One-price Policy) eliminating the provision of discount.
Business · p. 122
Despite managing our cost, the drop in customer conversion rate, hence our business volume, as a result of our One-price Policy led to a decrease in the amount of our supplier rebates received or expected to receive.
Financial Information · p. 209
Aggregate supplier rebates received or receivable in respect of the corresponding year (a) (RMB’000) | 23,414 | 20,140 | 18,025
The average selling price of AI-enabled intelligent products increased significantly from RMB826,000 in 2024 to RMB1,771,000 in 2025.
Business · p. 141
The average selling price of our modular products increased significantly from RMB466,000 in 2023 to RMB2,553,000 in 2024.
Business · p. 141
The average selling price of our modular products decreased to RMB525,000 in 2025, primarily driven by the consolidation of Agilebot's product portfolio following its acquisition.
The pricing of our integrated solutions is determined based on the cost structure and technical complexity of each project.
Business · p. 175
We also adopted a tiered pricing strategy based on the procurement volume and the length of collaboration with specific customers, while factoring in our cost structure.
Business · p. 175
The fees charged for software are not collected as a one-off payment but are instead collected as part of the overall solution price in accordance with project milestones agreed with the customer.
In 2023 and 2024, the semiconductor industry experienced an inventory destocking cycle as demand moderated, which led to declines in ASPs for most power device products, such as IGBT and MOSFET modules, according to CIC.
Summary · p. 11
Prices in the IGBT industry have declined by approximately 30%, while prices of MOSFET modules have decreased by approximately 10%.
Summary · p. 11
We are observing a broad-based increase in semiconductor prices since late 2025, especially for power device products, driven by sustained endmarket demand and tightening supply.
The pricing of our solutions and products is influenced by a number of factors, including technological complexity, market conditions, and underlying cost structures.
Business · p. 152
(i) the cost-oriented principle: We adopt a cost-plus approach where pricing is based on a thorough assessment of development, production, and operational costs, including mainly R&D expenses, procurement of wafers and other materials, packaging and testing, labor and overhead;
Business · p. 152
In practice, our pricing decisions are made on a product-specific and customer-specific basis, balancing short-term commercial objectives with long-term strategic positioning.
Accordingly, the prices for our water sightseeing boat services offered in water areas with transportation functions such as boat ticket prices for the Qianlong Imperial Water Tour Route, the Northern Ancient City Moat Water Tour Route, the Songjiacheng Water Circular Island Tour Route, the Baozhang Lake Water Tour Route and the Ancient Canal Water Tour Routes for shared services, and our sightseeing tour bus services for shared services shall be subject to the highest price approved by the Development and Reform Bureau of Yangzhou Government and go through thorough cost analysis and collective reviews conducted by relevant pricing department of Yangzhou Government to ensure that the prices are transparent and reasonable, reflecting the operational costs and in the interests of the consumers.
Business · p. 130
During the Track Record Period, we have never adjusted our ticket price above the highest price set by the governmental authority.
Business · p. 131
Our Directors are of the view that the government-set highest price mechanism does not have material impact on the pricing of our services or products, on the basis that (i) underlined mechanism of government-set highest price is to provide an industry-wide pricing regulation guidance with the objectives to maintain an orderly market and safeguard consumer rights, rather than intervening the business operation of market players or pricing decisions, and (ii) our Company has been strictly adhered to a market-driven pricing approach, pursuant to which we have taken into account factors such as market demand, operation costs, operational efficiency and the competitive landscape of the industry in determining our boat ticket prices, so as to ensure our prices comply with regulatory requirements and remain competitive in the market.
For the years ended December 31, 2023 and 2024, our revenue decreased mainly due to intensified competition in the lithium-ion battery materials industry which led to a decrease in the average selling price of lithium-ion battery materials.
Financial Information · p. 221
As a result, we have sustained the position as the world’s No. 1 electrolyte supplier in terms of shipment volumes during the Track Record Period, with a global market share of approximately 35.7% in 2024, according to CIC.
We generally adopt a cost-plus pricing policy for our products and solutions.
Business · p. 139
In addition, we negotiate the sales price with each customer every year under the framework agreement, staying au courant with the sales strategies of OEM manufacturers and shifting consumer preferences.
Business · p. 138
We must provide 90 days’ notice for price increases.
Our gross profit derived from telecommunications laser chips decreased from RMB35.6 million in 2023 to RMB29.0 million in 2024, primarily due to pricing pressure under prevailing market conditions, despite an increase in sales volume.
Summary · p. 11
We price our products based on a variety of factors, including: (i) customer demand, (ii) the competitive landscape, which takes into account our strengths and weaknesses relative to our competitors, their pricing strategies and our customers' cost sensitivity, (iii) the costs of relevant products, which encompass production, research and development expenses and operational costs, and may vary depending on the type of products, and (iv) customer's market position.
Despite such growth, the ASP of our millimeter-wave radar products experienced a continuous decrease from RMB204 in 2023 to RMB111 in 2025.
Business · p. 142
The decrease of ASP of our products during the Track Record Period was primarily due to adjustments in our pricing policies to secure more market share in the rapidly growing market as well as our plan to penetrate into mid-to low-end vehicle model markets.
Business · p. 142
Nevertheless, driven by optimized capacity utilization and the successful execution of cost-management initiatives, our gross profit margin improved from the first quarter of 2025 to the fourth quarter of 2025.