Hi there, I want to apply for China visa.

Based on your situation, you need to apply for an M type.

Documents required for submission are: 1) your passport and the photocopy of its data page; 2) application form and recently-taken color passport photo; 3) oroginal "Invitation Letter of Duly Authorized Unit" or "Confirmation Letter of Invitation" from Duly Authorized Unit; 4) less than three pages of the copy of local company bank statement in the latest 3 months; 5) local company covering letter; and 6) copy of Business Registration Certificate.

I think the "red seal letter" you mentioned refers to the 3) item. It's a letter issuded by an organization which is authorized by the Foreign Ministry of China. Normally, the company inviting you is responsible for obtaining the letter, so don't bother with it.

I was informed that scanned copy of red seal letter is sufficient. Is that so?
If our local company is sponsoring us, what type of financial details need to be submitted?

Also can you please tell me we three of us are going... Whether I should pay as Group one charge which is 1800 per person or should I apply as Individual which is 2300 per person

Lambotharan, a copy of invitation letter is ok in many cases. However, sometimes the embassy might ask the original version too.

The local company's bank statement in the lastest 3 months is still required even your Chinese partner sponsors your trip. Here local company refers to your own company or your employer.

I think three of you need to apply for the M type separately because there is no such a group type for M.