Notice from LYC on Standardizing Market Order Practices

Official Notice to All LYC Authorized Distributors:

Regulations on Standardizing Market Order to Safeguard LYC's Market Stability

To ensure the healthy development of LYC's market ecosystem, protect the legitimate interests of all distributors, and maintain LYC's brand reputation and price stability, the following regulations are hereby issued. All distributors must strictly comply.

I. Prohibition of Cross-Region Sales

All distributors must conduct sales strictly within their authorized territories. Any sales beyond the designated region are considered cross-region sales and are strictly prohibited.

II. Prohibition of Below-Cost Pricing

Distributors must not sell LYC products below the purchase price from LYC. Rebates or incentives must not be factored into pricing to undercut agreed-upon sales prices.

III. Zero Tolerance for Counterfeit Products

Counterfeiting (production or sales) is an absolute red line. Regardless of quantity or value, any involvement in counterfeit products will face severe penalties without exception.

IV. Protection of Registered Customer Accounts

Distributors must follow the "Proactive Inquiry, Registration Priority, Local Development, First-Come-First-Served" customer registration rule. LYC protects registered and active customer accounts assigned to distributors. No distributor may solicit business from another distributor’s registered clients without explicit approval.

V. Prohibition of Unauthorized Licensing

Distributors are strictly forbidden to issue any form of authorization or certification on behalf of LYC. Violations will be treated as counterfeit-related fraud and penalized accordingly.

Enforcement & Penalties:

Our company solemnly declares that the company will never tolerate any behavior that undermines the market order of LYC. For sales behaviors that violate the above requirements, our company will severely crack down on them according to the distribution agreement. All dealers are welcome to actively feedback on illegal and irregular behaviors in the market. Once verified, the authorized dealers involved will be severely dealt with according to the agreement.

We encourage all distributors to report misconduct. Verified violations will lead to strict disciplinary measures against offending parties.

In 2025, LYC will intensify efforts to rectify and regulate market violations, enforcing swift, severe penalties for non-compliance. We urge all distributors to collaborate with LYC in maintaining fair market practices and jointly combat activities that harm our shared interests.