Group 1: Financial Performance - In 2024, the company achieved total revenue of RMB 864.165 million, a 20.0% increase from RMB 720.303 million in 2023 [1][3] - The significant growth in revenue was driven by a notable increase in motorhome sales, with direct sales from self-operated and joint venture stores contributing an additional RMB 214.8 million, leading to total motorhome sales revenue of RMB 799.0 million, a year-on-year increase of 12.5% [1][3] - Despite revenue growth, the company's net profit declined to RMB 43.331 million, a decrease of 45.82% compared to RMB 79.973 million in 2023, indicating a "growth without profit" scenario [1][3] Group 2: Channel Structure and Strategy - The revenue growth is primarily attributed to a shift in channel structure, with direct sales expanding from 14.6% to 38.0% of total sales in 2024, reducing reliance on traditional dealers [2][4] - The average selling price in the direct sales channel is approximately RMB 323,000, significantly higher than the dealer channel's RMB 262,000, reflecting the impact of channel restructuring on pricing [2][4] - However, the transition to a direct sales model has increased operational costs, leading to a rise in the overall sales expense ratio, which has contributed to the decline in net profit [2][4] Group 3: Industry Context and Challenges - The Chinese motorhome market is growing at an annual rate of 15%, but the competitive landscape is changing, with a decline in dealer channel sales and a rise in direct sales [4][5] - The company's sales and distribution expenses increased from RMB 41.547 million in 2023 to RMB 83.976 million in 2024, reflecting the costs associated with channel restructuring [4][5] - Systemic risks are highlighted by rising raw material costs and pressures from the global commodity market, which are affecting the manufacturing cost structure across the industry [4][5] Group 4: Cash Flow and Liquidity - The company's cash and cash equivalents increased to RMB 29.263 million, but this is still significantly lower than the borrowing scale of over RMB 89 million, indicating liquidity management challenges [5][6] - The operating cash flow has not improved in line with revenue growth, raising concerns about the sustainability of high pricing strategies in the post-pandemic consumer environment [5][6] Group 5: Strategic Outlook - The financial report reveals both the achievements and inherent contradictions of the company's strategic transformation, highlighting the challenges of balancing scale and profitability [4][5] - As the industry shifts from rapid growth to a focus on high-quality development, the company faces critical questions regarding its operational efficiency and long-term strategic positioning [4][5]

Core Insights - New Giao RV (0805.HK) reported a strong performance for 2024, with total revenue reaching 864.2 million RMB, a year-on-year increase of 20%, and a gross margin improvement to 31.1% [1] - The company's main business revenue was 799.2 million RMB, up 12.5% year-on-year, with the second-hand vehicle segment showing remarkable growth, achieving 56.1 million RMB in revenue, a staggering increase of 547% [3] - Gross profit surged by 48.3% to 268.5 million RMB, with net profit reaching 87.9 million RMB, reflecting a 36% increase after excluding one-time listing expenses and foreign exchange losses [4] - The company emphasized that its operations are primarily focused on the Australasia region, which is not directly affected by the proposed U.S. tariff policies, ensuring stable growth prospects [5] - The global RV market is experiencing a new wave of development opportunities, driven by increasing consumer demand for outdoor lifestyles and the recovery of the tourism market, positioning New Giao RV favorably for future growth [5][6]

Financial Performance - For the fiscal year ending December 31, 2024, revenue reached RMB 864.2 million, a 20.0% increase from RMB 720.3 million for the fiscal year ending December 31, 2023, primarily driven by an increase in revenue from RV sales[4] - Gross profit increased from RMB 181.1 million to RMB 268.5 million, representing a growth of 48.3%, attributed to higher direct sales through self-operated and joint venture stores[4] - Gross margin improved from 25.1% to 31.1%, an increase of 6 percentage points, due to a higher proportion of direct sales compared to wholesale sales[7] - Revenue for the year ended December 31, 2024, increased to RMB 864,165 thousand, up 20% from RMB 720,303 thousand in 2023[21] - Gross profit for 2024 was RMB 268.5 million, a 48.3% increase from RMB 181.1 million in 2023, with a gross margin rising from 25.1% to 31.1%[44] - Operating profit decreased to RMB 73,873 thousand, down 33% from RMB 109,991 thousand in 2023[21] - Net profit for the year was RMB 45,489 thousand, a decline of 42% from RMB 78,768 thousand in 2023[22] - Basic and diluted earnings per share decreased to RMB 0.06 from RMB 0.11 in the previous year[21] - The company reported a total comprehensive income of RMB 42,727 thousand, down 47% from RMB 79,999 thousand in 2023[22] - The adjusted net profit for 2024 was RMB 72.933 million, compared to RMB 78.768 million in 2023, with a reported net profit of RMB 45.489 million for 2024[62] Sales and Production - Sales costs for the fiscal year ending December 31, 2024, were RMB 595.6 million, up RMB 56.3 million or 10.4% from RMB 539.3 million in the previous year, aligned with increased RV sales[7] - As of December 31, 2024, the company delivered a total of 2,804 RVs, representing a 4.1% increase from 2,694 units in 2023[13] - The Snowy River brand, the best-selling brand, delivered 2,408 units in 2024, an increase of 11.2% from 2,165 units in 2023[15] - The company has successfully produced 50 RV models across three distinct brands, including the best-selling mid-range brand Snowy River[12] Market and Product Development - The company upgraded 5 models under the Regent brand and launched 13 new models under the Snowy River brand in 2024, along with upgrades to 4 models and the development of 4 new models under the NEWGEN brand[10] - The company is developing pioneering models of electric RVs, aiming to create a sustainable and environmentally friendly path for RV electrification[10] - The company emphasizes customization in its RV offerings, catering to diverse customer needs from aesthetics to functionality[9] - The company aims to penetrate the European market by leveraging its status as a listed company and collaborating with local dealers[19] - The company plans to launch the SRH-Hybrid 2025, a hybrid RV model, in February 2025, focusing on durability, advanced technology, and luxury[16] Expenses and Financial Management - Selling and distribution expenses for 2024 were RMB 84.0 million, a significant increase of 102.4% from RMB 41.5 million in 2023, attributed to increased marketing and sales personnel[46] - Administrative expenses rose to RMB 79.9 million in 2024, up 120.7% from RMB 36.2 million in 2023, due to business expansion and increased administrative staff[47] - Research and development expenses increased by 71.3% to RMB 13.7 million in 2024 from RMB 8.0 million in 2023, reflecting a rise in R&D personnel costs[48] - Financial costs surged by 439.1% to RMB 12.4 million in 2024 from RMB 2.3 million in 2023, primarily due to increased interest expenses from financing partners[50] Assets and Liabilities - Total assets increased to RMB 443,371 thousand, up 41% from RMB 314,220 thousand in 2023[23] - Trade and other receivables rose to RMB 54,382 thousand, an increase of 18% from RMB 46,138 thousand in 2023[23] - Inventory decreased to RMB 228,103 thousand, down 6% from RMB 242,827 thousand in 2023[23] - Trade receivables decreased to RMB 37.7 million in 2024 from RMB 39.9 million in 2023, with all trade receivables expected to be collected within one year[36] - Total trade and other payables increased to RMB 314.8 million in 2024 from RMB 240.7 million in 2023, with significant increases in accounts payable and accrued expenses[39] - As of December 31, 2024, the company's net current liabilities amounted to RMB 60 million, primarily due to trade and other payables increasing by RMB 74.1 million to RMB 314.8 million compared to December 31, 2023[53] - Total loans and borrowings as of December 31, 2024, were RMB 89.4 million, up from RMB 31.6 million as of December 31, 2023, with RMB 64.2 million being secured loans from financing partners[54] Corporate Governance and Compliance - The company has established an audit committee consisting of independent non-executive directors to oversee financial reporting[71] - The company has complied with the corporate governance code as per the listing rules since its listing date, except for the separation of the roles of Chairman and CEO[68] - All directors confirmed compliance with the standard code of conduct for securities trading since the listing date[69] - The financial figures for the fiscal year ending December 31, 2024, have been agreed upon by the auditors, KPMG, and align with the consolidated financial statements[70] - The annual performance announcement and annual report will be published on the Hong Kong Stock Exchange and the company's website[74] Future Outlook - The company aims to strengthen its leadership in the Australian and New Zealand markets while expanding into Europe and Canada[20] - The company issued guarantees totaling RMB 24.8 million as of December 31, 2024, with no other significant contingent liabilities disclosed[60] - The net proceeds from the global offering, approximately HKD 292.6 million, will be used as disclosed in the prospectus, with no changes to the intended use of proceeds[67] - The company had 722 employees as of December 31, 2024, with 70.6% in production and supply chain roles[64] - The company's capital expenditure for 2024 was RMB 8 million, primarily for the purchase of plant and equipment[59] - As of December 31, 2024, the company had no significant capital commitments or plans for major investments or acquisitions[58] - The board does not recommend the declaration of any final dividend for the fiscal year ending December 31, 2024[73] - No significant events affecting the company have occurred since December 31, 2024, apart from the IPO[72]