During the Track Record Period, substantially all of our revenue were derived from our distributors. In 2023, 2024 and 2025, our revenue from distributors accounted for 97.4%, 99.4% and 99.5% of our total revenue, respectively.
Business · 第 160 页
In 2023, we engaged 126 new distributors and terminated our partnership with 360 distributors, primarily due to the distribution channel reform that we initiated in 2022, which streamlined the management of our multi-tiered distribution system.
Business · 第 161 页
The significant number of terminations in 2023 and 2025 was primarily attributable to our proactive channel optimization strategy.
During the Track Record Period, our sales generated from distribution amounted for 3.8%, 2.7% and 2.3% of the total revenue of each period, respectively.
Business · 第 137 页
Adherent to our sales policies including Trade Business Management Standards, we manage our sales to distributors through valuating the qualifications of the distributors, assessing potential profits before formal engagements, specifying major terms in contracts, managing financial and other risks and keeping records of the transactions.
Business · 第 137 页
We did not set mandatory sales targets for distributors but provide sales incentives.
As of December 31, 2023, 2024 and 2025, we had 11, 13 and 15 distributors, respectively.
Business · 第 155 页
In 2023, 2024 and 2025, our revenue generated from our distributors amounted to RMB26.6 million, RMB74.8 million and RMB64.0 million, respectively, representing 18.5%, 29.7% and 10.6% of our total revenue for the corresponding years.
Business · 第 155 页
We adopt a sales model that transfers full ownership of goods at the time of delivery and our distributors are not entitled to return the sold products unless in cases of product defects.
杭州铜师傅文创（集团）股份有限公司HANGZHOU TONGSHIFU CULTURAL AND CREATIVE (GROUP) CO., LTD.00664.HK
分销渠道收入占比下降及线下经销商数量减少
During the Track Record Period, our distribution revenue amounted to RMB127.8 million, RMB121.4 million, RMB117.0 million, RMB91.4 million and RMB74.6 million for the years ended December 31, 2022, 2023, 2024 and the nine months ended September 30, 2024 and 2025, respectively, accounting for 25.4%, 24.0%, 20.5%, 22.7% and 16.7% of our revenue for the same years/periods.
Business · 第 138 页
During the Track Record Period, the number of PRC offline distributors declined, reflecting a gradual realignment of our channel strategy to place greater emphasis on and dedicate more resources toward the expansion of our offline self-operated store network.
Business · 第 141 页
We do not push shipments to distributors to meet internal sales targets or “make up numbers,” nor do we require distributors to accept inventory in excess of their expected sales needs.
In 2022, 2023, 2024 and the ten months ended October 31, 2024 and 2025, we recognized revenue from distributors of RMB125.2 million, RMB129.6 million, RMB324.6 million, RMB266.5 million and RMB239.3 million, respectively, representing 96.1%, 86.2%, 91.4%, 92.3% and 85.2% of our total revenue in the same periods.
Financial Information · 第 207 页
Distributors assume the credit risk for sales to end customers, allowing us to avoid credit risk exposure and reducing the administrative burden of credit control and collection.
We have successfully established a nationwide distribution network of 75 distributors, covering over 400 healthcare centers and medical institutions in 31 provinces, autonomous regions and municipalities as of September 30, 2025.
Business · 第 184 页
During the Track Record Period, the new distributors we had each year were primarily due to the growth of our business and expansion of our sales network.
Business · 第 188 页
Given our robust channel management abilities, we believe our sales accurately reflect actual end-customer demand, mitigating risks of channel stuffing and cannibalization.
In 2022, 2023 and 2024 and for the nine months ended September 30, 2025, revenue from our channel partners amounted to RMB96.1 million, RMB126.7 million, RMB72.0 million and RMB32.1 million, respectively, representing 21.8%, 11.1%, 7.4% and 6.0% of the total revenue for the respective periods.
Business · 第 154 页
We and our channel partners constitute a seller and buyer relationship, under which we do not pay commissions or make other payments to our channel suppliers.
Business · 第 154 页
Risk allocation: all significant risks, including inventory risks, are transferred to our channel partners upon delivery and acceptance, and we retain no ownership control over the products sold to our channel partners;
We ceased to renew distribution agreements with 12 distributors in 2024 and another 12 distributors during the nine months ended September 30, 2025, primarily due to their failure to meet their sales target following a comprehensive evaluation that also took into account market demand in such distributors’ downstream industries and changes in their own business condition.
Business · 第 171 页
To the best of our knowledge, our major distributors during the Track Record Period (who, where applicable, collectively accounted for approximately 76%, 61%, 47% and 76% of total revenue from distributorship in each year/period during the Track Record Period) did not maintain any inventory at the end of each year/period during the Track Record Period and up to the Latest Practicable Date.
Business · 第 172 页
With the foregoing policies and in light of the historical purchase patterns of our distributors, we believe that our distributor management policy, including the sales targets, would serve to better incentivize distributors to expand customer reach and promote our products rather than stockpiling inventory, and our risk of channel stuffing associated with distributors is low.
For the years ended December 31, 2022, 2023, 2024 and for the nine months ended September 30, 2025, our total sales to distributors amounted to RMB339.2 million, RMB331.5 million, RMB475.3 million and RMB419.6 million, respectively, accounting for 28.4%, 32.0%, 40.7% and 43.8%, respectively, of our revenue (or 74.0%, 79.5%, 85.5% and 90.5% of our revenue from the sales of chip products) for the corresponding periods.
Business · 第 143 页
Though our distributors maintain a “buy-out” model with us, we are able to monitor our distributors’ inventory level, as agreed by our distributors.
Business · 第 143 页
During the Track Record Period, to the best knowledge of our Directors, there was no material channel stuffing issue and cannibalization risks among our distributors as a result of their “buy-out” model with us.
In 2023, 2024 and 2025, approximately 76.7%, 78.0% and 77.4% of our revenue was generated from sales to our distributors.
Financial Information · 第 216 页
As of December 31, 2025, we had a distributor network of 1,762 distributors, covering over 30 provinces in China and a broad range of countries and regions across six continents overseas.
Business · 第 156 页
Our goal is to encourage distributors to maintain an inventory level to support sales for generally one to three months, ensuring efficient inventory turnover and stable market supply, as well as mitigating any risks associated with channel stuffing.
In 2023 and 2024 and the nine months ended September 30, 2024 and 2025, revenue generated from sales to distributors amounted to €27.9 million, €43.8 million, €38.5 million and €38.9 million, respectively, representing 58.1%, 72.2%, 73.1% and 71.8% of our revenue for the respective periods.
Business · 第 108 页
Our relationship with the distributors is a buyer and seller relationship.
Business · 第 108 页
Moreover, we support our distributors and have instituted controls to deter channel stuffing, including: (i) reviewing distributors’ sales plans and targets and proving guidance to prevent inventory build-ups; (ii) conducting routine on-site inspections of distributors’ retail stores for sales, storage conditions, quality control, and inventory levels; and (iii) leveraging digital tools and IoT functionality by encouraging consumers to register in the TENWAYS App and monitoring device activations to assess sell-through performance and identify potential overstock risks.
As of September 30, 2025, our distribution network spanned 31 provinces, municipalities and autonomous regions across China.
Business · 第 191 页
In 2024 and the nine months ended September 30, 2025, revenue from sales of Sangbo'en to distributors in China accounted for 100.0% of our revenue from sales of Sangbo'en during the respective periods.
Business · 第 191 页
We have implemented policies and measures to mitigate the risk of inventory accumulation in the distribution channels.
In 2022, 2023, 2024 and the nine months ended September 30, 2024 and 2025, the revenue generated from distributorship amounted to RMB250.4 million, RMB190.1 million, RMB156.3 million, RMB135.2 million and RMB174.6 million, respectively, accounting for approximately 10.9%, 8.9%, 5.3%, 6.2% and 6.2%, respectively, of our total revenue in the same periods.
Business · 第 231 页
During the Track Record Period, our sales to distributors declined primarily because we sold more products through direct sales after some of our end customers decided to establish direct business relationship with us in place of through distributors and became our direct customers.
Business · 第 231 页
During the Track Record Period, our number of distributors remained relatively stable.
In certain markets with fragmented customer demand, we may adopt a distributorship model to distribute our solutions, such as explosion-proof and industrial electric drive solutions.
Business · 第 132 页
For instance, we adopt strict product return policies to mitigate channel stuffing risks.
Business · 第 134 页
During the Track Record Period and up to the Latest Practicable Date, we had no material unresolved disputes or lawsuits with distributors.
During the Track Record Period, our additions of new distributors primarily reflected our proactive efforts in expanding our distribution network.
Business · 第 238 页
We monitor our distributors’ inventory levels through on-site visits and regular communication with them to ensure they are well-positioned to meet customer demand promptly, while keeping the risk of channel stuffing low.
In 2023, 2024 and the ten months ended October 31, 2025, we had 102, 127, and 106 distributors, respectively.
Business · 第 162 页
In 2023, 2024, and the ten months ended October 31, 2025, our EV charging network business revenue generated from our distributors amounted to RMB87.1 million, RMB100.3 million and RMB56.0 million, respectively, accounting for approximately 0.7%, 0.7% and 0.5%, respectively, of our total revenue in the same periods.
Business · 第 162 页
We typically grant them exclusive rights within assigned territories and set sales targets periodically.
深圳市沃尔核材股份有限公司Shenzhen Woer Heat-Shrinkable Material Co., Ltd.09981.HK
经销商收入占比15.3%至22.3%及渠道管理
Revenue generated from distributors amounted to RMB1,190.8 million, RMB1,215.5 million, RMB1,289.3 million and RMB931.6 million during the Track Record Period, amount to 22.3%, 21.3%, 18.6% and 15.3% of our total revenue from the respective periods.
Business · 第 167 页
The significant changes in the number of our distributors during the Track Record Period was primarily due to the fact that many of our products, particularly electronic material products, are commodities that can be used in a wide range of industries and in many day-to-day production or maintenance scenarios, and have a long shelf life.
Business · 第 167 页
We generally require a full payment before delivering products to distributors.
For the years ended December 31, 2022, 2023, 2024 and the nine months ended September 30, 2025, our revenue generated from distributors amounted to RMB2.4 million, RMB67.2 million, RMB199.6 million and RMB162.2 million, respectively.
Summary · 第 6 页
In the nine months ended September 30, 2025, nine of our existing distributors did not have transaction with us in the immediately preceding 12 months due to fluctuations in market demand.
Business · 第 198 页
Therefore our Directors are of the view that we are not subject to material risk of channel stuffing.
For the years ended December 31, 2022, 2023 and 2024 and for the nine months ended September 30, 2025, our total sales through distributors amounted to RMB978.3 million, RMB126.3 million, RMB540.6 million and RMB614.6 million, respectively, accounting for 26.6%, 5.5%, 14.9% and 15.1%, respectively, of our revenue for the corresponding periods.
Business · 第 212 页
Our distributors act as agents instead of principals in our transactions with customers, and we pay commissions for orders they obtained at the rates stipulated in the distribution agreements.
Business · 第 212 页
During the Track Record Period and up to the Latest Practicable Date, we had not received any material product returns or indemnification claims from our distributors, nor had we made any provisions on any product returns or potential indemnification.
乐欣户外国际有限公司Ridge Outdoor International Limited02720.HK
OBM模式经零售商销售并防范渠道压货
As of December 31, 2022, 2023, 2024 and August 31, 2025, we sold our own-brand Solar products to 363, 351, 329 and 339 customers, respectively.
Business · 第 180 页
Our revenue generated from the OBM model was RMB33.7 million, RMB39.6 million, RMB41.3 million and RMB30.4 million, respectively, accounting for 4.1%, 8.5%, 7.2% and 6.6% of our total revenue in the same periods.
Business · 第 180 页
In addition, to mitigate the risk of channel stuffing, we generally do not permit product returns or exchanges, except in specific cases, such as product defects or inconsistencies with product descriptions.