In 2023, 2024 and 2025, such sales rebates amounted to RMB38.1 million, RMB14.6 million and RMB19.5 million, respectively.
Business · 第 131 页
To prevent channel stuffing, we stipulate in our distribution agreement that product returns are generally not accepted except for defective items.
Business · 第 131 页
In 2023, 2024 and 2025, we engaged 446, 540 and 620 distributors, respectively, comprising 217, 286 and 349 domestic distributors and 229, 254 and 271 overseas distributors, respectively.
上海拓璞数控科技股份有限公司Shanghai Top Numerical Control Technology Co., Ltd.07688.HK
通过销售代表的销售及其管控安排
In FY2024 and FY2025, our sales to the sales representatives amounted to RMB7.1 million and RMB24.0 million, accounting for 1.3% and 4.1% of our total revenue, respectively.
Business · 第 157 页
We entered into sales contract with the sales representative only after they have identified specific end-users, with such sales contract requiring delivery to the end-users.
Business · 第 157 页
Hence, all our revenue during the Track Record Period was attributable to our direct sales to customers and we consider there is minimal financial impact of partnering with sales representatives to the Group.
In 2023, 2024 and 2025, the revenue generated from our sales to distributors were RMB31,611.5 million, RMB32,965.4 million and RMB29,432.5 million, respectively, accounting for 90.5%, 89.8% and 88.4% of our total revenue for the same periods, respectively.
Business · 第 197 页
As of December 31, 2025, we had cooperated with a total of 7,502 distributors.
Business · 第 197 页
The significant increase in new distributors in 2024 was primarily attributed to the acquisitions of DiaSys Group and APT Medical Inc.
In 2023, 2024, 2025, our revenue from distributors amounted to nil, RMB5.2 million and RMB8.0 million, respectively, accounting for nil, 0.2% and 0.3% of our total revenue.
Business · 第 124 页
We have established a comprehensive management framework, supported by robust internal policies, to regulate distributor conduct and implement strategic measures to mitigate cannibalization and ensure orderly market competition.
Business · 第 125 页
In return, our distributors typically commit to a minimum annual sales target.
In 2023, 2024 and 2025, the revenue from sales through our distributors amounted to RMB100.5 million, RMB220.1 million and RMB263.4 million, respectively, representing 11.1%, 12.5% and 9.4% of our total revenue for the corresponding year.
Business · 第 154 页
In 2023, 2024 and 2025, the aggregate revenue generated from our five largest distributors (in terms of revenue contribution) in each year during the Track Record Period amounted to RMB42.9 million, RMB99.8 million and RMB161.3 million, respectively, representing approximately 4.8%, 5.7% and 5.8% of our total revenue, respectively.
Business · 第 155 页
We terminated our cooperation with 95, 225 and 61 distributors in 2023, 2024 and 2025, respectively, primarily as a result of our heightened selection criteria for distributors.
As of December 31, 2023, 2024 and 2025, there were 12, 34 and 74 distributors, respectively.
Business · 第 159 页
Our relationship with our distributors is a buyer and seller relationship, as our distributors acquire ownership of the products we deliver to them.
Business · 第 159 页
We have implemented internal control measures to prevent channel stuffing: (1) most distributors are not allowed to proactively stock our products; (2) we regularly track distributor inventory and sales progress through phone calls, emails, and on-site visits; and (3) if a distributor has unsold stock, we will immediately communicate with it to assist with promotions and simultaneously reduce or suspend subsequent replenishment quotas to ensure rapid inventory clearance.
During the Track Record Period, the number of our distributors decreased, primarily attributable to our channel consolidation in response to the VBP schemes and the resulting industry trend toward more centralized and standardized distribution.
Business · 第 165 页
On the other hand, we have implemented various measures to mitigate the risk of channel stuffing.
山推工程机械股份有限公司Shantui Construction Machinery Co., Ltd.
逾五成收入来自分销商渠道
We do not rely on any individual or a few distribution partners and strictly forbid existing employees to work for or holding equity in our distribution partners.
Business · 第 140 页
Meanwhile, we conduct semi-annual quantitative assessment on our distribution partners, focusing on various criteria related to their sales, marketing, financial and after-sale services, and we are able to identify the operational issues of our distribution partners and provide guidance for their improvement and enhancement.
Business · 第 141 页
As such, our management are of the view that channel stuffing is unlikely to occur in our distribution channels and generally does not pose any material managerial concern.
In 2023, 2024 and 2025, we terminated business relationships with 27, 26, and 7 online distributors, respectively, primarily due to our evaluation of their sales performance and the expiration of distribution agreements.
Business · 第 124 页
In 2023, 2024, and 2025, we terminated business relationships with 72, 91, and 44 distributors, respectively.
Business · 第 126 页
Under consignment agreements, we recognize revenue when products are sold to end-customers.
Less than 1.0% of our revenue was from distributors in 2023 and 2024, and 8.2% of our revenue was from distributors in 2025.
Business · 第 166 页
Our Directors are of the view that there was no material channel stuffing risks arising from our sales through distributors.
Business · 第 163 页
During the Track Record Period and up to the Latest Practicable Date, we did not experience any material sales returns or product exchanges from our distributors.
On the other hand, revenue from distributors increased consecutively from RMB346.9 million in 2023 to RMB454.4 million in 2025.
Business · 第 137 页
Since we adopt a “payment before shipment” model for all of our distributors, we have no accounts receivable from them.
Business · 第 138 页
We track distributors’ downstream activities via biweekly POS and inventory reports for product flow/market demand insights, with dedicated sales assistants managing all data in our secure system.
Our revenue generated from distributors was RMB5,700 and RMB5.1 million in 2024 and 2025, respectively, which were immaterial to our total revenue in the same periods.
Business · 第 151 页
We only sell our consumer-class products through distributorship model with a total of 26 distributors as of December 31, 2025.
Business · 第 152 页
In general, distributors shall make full payment in advance before we process any orders.
For industrial automation and digitalization offerings (excluding intelligent elevator solutions) and intelligent robots, we primarily sell them through distributors.
Business · 第 142 页
If we identify abnormal inventory turnover or potential slow-moving risks at any distributor, we will usually communicate with and review such distributor and, depending on the circumstances, liaise with other channels with demand to explore reasonable inventory adjustment arrangements.
Business · 第 143 页
The number of our distributors remained stable during the Track Record Period.
As of December 31, 2023, 2024 and 2025, we had six, five and five distributors, respectively, which contributed to 3.4%, 1.4% and 1.1% of our total revenues in 2023, 2024 and 2025, respectively.
Business · 第 149 页
We believe the risk of channel stuffing is remote in our distribution network.
In 2023, 2024 and 2025, our distributors contributed to 29.5%, 19.8% and 30.0% of our revenue, respectively.
Business · 第 120 页
The 68 distributors terminated in 2024 contributed 1.6% of our total revenue in 2023. The 104 distributors terminated in 2025 contributed 1.4% of our total revenue in 2024.
Business · 第 121 页
Our distributors in China are also typically required to make full payment in advance prior to delivery, which further discourages channel stuffing.
In 2023, 2024 and 2025, our sales generated from distributors amounted to RMB181.3 million, RMB466.6 million and RMB573.1 million, respectively, accounting for 74.9%, 70.0% and 67.1%, respectively, of our revenue for the corresponding periods.
Business · 第 164 页
We usually discuss with our distributors regarding their general inventory levels and anticipated purchase demand on a monthly basis.
Business · 第 166 页
During the Track Record Period and up to Latest Practicable Date, we did not have any channel stuffing issues.