“请贵司务必认真对待、切实挖掘降本空间、积极推动要求达成，以便我司推进2025年供应商选定工作，并在12月15日前通过SRM系统将降后价格报给我司。”该降价联络函称。
Image credit: Visual China
On November 29, Blue Whale News reported (Reporter Li Zhuoling) that following BYD and other auto manufacturers, the intelligent equipment manufacturing company Guangdong Topstar Technology has also been revealed to request suppliers to reduce prices.
On the afternoon of November 29, a price reduction contact letter from Guangdong Topstar Technology to suppliers circulated online. According to the circulated letter, in 2025, given the changes in the market environment and the company's need for cost control, to enhance Guangdong Topstar Technology's market competitiveness, a concerted effort from the entire supply chain is required to continuously reduce costs, thus the following request has been proposed: from January 1, 2025, the products supplied by partners should have their prices reduced by 20%.
"Please take this matter seriously, and earnestly explore cost reduction opportunities to actively promote the achievement of this requirement, so that we can advance the selection of suppliers for 2025, and report the reduced prices to us through the SRM system by December 15," stated the price reduction contact letter.
Image Source: Internet
On the same day, Blue Whale News sought verification from relevant personnel at Guangdong Topstar Technology, who indicated that "this is a normal year-end inquiry behavior from our procurement side, and the 20% reduction ratio in the inquiry letter is merely a preliminary inquiry for specific lines; the actual prices will be reported to the company for final selection, and essentially it is a price for volume comparison among suppliers."
It is customary to negotiate prices with suppliers at the end of each year. Goals for price reductions will be proposed based on bulk purchasing, but this is not mandatory; it will ultimately be decided through negotiation.
Public information shows that guangdong topstar technology is formally known as Guangdong Topstar Technology Co., Ltd., established in 2007, and is a company focused on manufacturing asia vets equipment, with main products including industrial robots, CNC machine tools, and dkm injection machines.
According to its 2024 semi-annual report, the company reported revenue of 1.723 billion yuan, a year-on-year decrease of 18.04%; the net income attributable to shareholders of the listed company was 35.8052 million yuan, a year-on-year decrease of 57.56%. The financial report also stated that the company has cumulatively served over 15,000 customers domestically, including well-known companies such as Bern Optical, luxshare precision industry, foxconn, wingtech technology, huaqin technology, goertek inc., tongwei co.,ltd, longi green energy technology, ja solar technology, jinkosolar, contemporary amperex technology, and others.
Additionally, guangdong topstar technology stated on an interaction platform last October that the company cooperates with BYD in fields such as industrial robots and automation application systems, dkm injection machines and supporting equipment, as well as smart energy and environmental management systems. At that time, it was also mentioned that the company's five-axis CNC machine tools could be used for processing scenarios related to auto parts and molds in the passenger vehicle industry chain.
Recently, a leaked email titled 'Cost Reduction Requirements for BYD Passenger Vehicles in 2025' circulated online. The email mentioned that market competition in 2025 will become more intense, entering a 'great battle' and 'elimination round.' To enhance the competitiveness of BYD's passenger vehicles, the entire supply chain needs to work together to reduce costs continuously. Therefore, it requests that suppliers reduce prices by 10% starting January 1, 2025.
On November 27, Li Yunfei, General Manager of BYD's Branding and Public Relations Department, responded in a statement, saying, 'Annual price negotiations with suppliers are a common practice in the automotive industry. We propose price reduction targets based on large-scale procurement, which is not mandatory; everyone can negotiate to move forward.'
