Company Overview - New Ji'ao RV Co., Ltd. is a leading export-oriented RV manufacturer located in Tongxiang Economic Development Zone, Zhejiang Province, China [2] - The company integrates advanced foreign design concepts with domestic manufacturing advantages, establishing a strong core competitiveness [2] - New Ji'ao RV owns three brands: mid-range popular brand SNOWY RIVER, high-end brand REGENT, and light off-road brand NEWGEN, which cater to global customers [2] Financial Performance - As of December 31, 2024, New Ji'ao RV achieved total operating revenue of 864 million yuan, a year-on-year increase of 19.97% [1] - The net profit attributable to shareholders was 43.33 million yuan, a year-on-year decrease of 45.82% [1] - The gross profit margin stood at 31.07%, with a debt-to-asset ratio of 92.99% [1] Market Position and Valuation - The company's price-to-earnings (P/E) ratio is 26.26, ranking 25th in the automotive industry, which has an average P/E ratio of 16.83 [1] - In the RV market, New Ji'ao RV holds the second-largest market share in the Australasian region, demonstrating its leading position and broad customer recognition [3] - RV deliveries increased from 1,330 units in 2021 to 2,694 units in 2023, reflecting a significant annual growth rate [3] Industry Insights - The automotive industry has an average P/E ratio of 16.83, with a median of 8.33 [1] - Other companies in the automotive interior sector have significantly lower P/E ratios, indicating varying levels of market valuation within the industry [1]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 864,165,000, representing a 20% increase from RMB 720,303,000 in 2023[12] - Gross profit for 2024 was RMB 268,516,000, up 48% from RMB 181,051,000 in 2023[12] - Profit attributable to equity shareholders for 2024 was RMB 43,331,000, a decrease of 46% compared to RMB 79,973,000 in 2023[12] - Total assets as of December 31, 2024, increased to RMB 559,871,000 from RMB 398,798,000 in 2023, marking a 40% growth[12] - Total liabilities as of December 31, 2024, were RMB 520,618,000, up from RMB 371,612,000 in 2023[12] - Total revenue for 2024 was RMB 864.2 million, representing a 20.0% increase from RMB 720.3 million in 2023[67] - Revenue from RV sales was RMB 799.2 million in 2024, a 12.5% increase from RMB 710.7 million in 2023, driven by higher sales volume and average selling price[68] - The company achieved a positive gross profit in 2024, attributed to increased revenue from direct sales and improved gross margin expected from enhanced cost control[42] - Selling and distribution expenses rose to RMB 84.0 million in 2024, a 102.4% increase from RMB 41.5 million in 2023, due to increased marketing campaigns and a higher number of sales personnel[79] - Administrative expenses increased by 120.7% to RMB 79.9 million in 2024 from RMB 36.2 million in 2023, driven by a rise in administrative personnel and listing expenses[80] - Research and development expenses grew by 71.3% to RMB 13.7 million in 2024 from RMB 8.0 million in 2023, reflecting an increase in R&D personnel[81] - Finance 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 on borrowings[89] - Income tax decreased by 44.6% to RMB 16.0 million in 2024 from RMB 28.9 million in 2023, in line with decreased profit[90] - Profit for the year fell by RMB 33.3 million to RMB 45.5 million in 2024 from RMB 78.8 million in 2023[91] - Adjusted net profit is used as a non-HKFRS measure to facilitate comparisons of operating performance, defined as net profit adjusted by adding back listing expenses[119] - For the year ended December 31, 2024, the net profit was RMB 45,489,000, a decrease of 42.2% compared to RMB 78,768,000 in 2023[123] - The adjusted net profit for the same period was RMB 72,933,000, which is a decrease of 7.2% from RMB 78,768,000 in 2023[123] Revenue and Sales - The increase in revenue was primarily driven by a rise in RV sales volume and an increase in average selling price, particularly from direct sales through self-owned and JV stores[25] - Deliveries of RVs in 2024 totaled 2,804 units, representing a 4.1% increase from 2,694 units in 2023[28] - Revenue from sales of pre-owned RVs surged by 546.0% in 2024 compared to 2023, following the introduction of a buyback program for eligible pre-owned RVs[26] - Direct sales of RVs increased from 394 units in 2023 to 1,064 units in 2024, with revenue from these sales growing from RMB 129.1 million to RMB 343.9 million[69] - Revenue from sales to dealers decreased from RMB 581.6 million in 2023 to RMB 455.3 million in 2024, with sales volume dropping from 2,300 units to 1,740 units[69] - Revenue from pre-owned RV sales was RMB 56.1 million in 2024, up from RMB 8.7 million in 2023, reflecting a significant increase of RMB 47.4 million[70] Product Development and Innovation - The company upgraded 5 models under the Regent brand and launched 13 new models in 2024[15] - A total of 4 new models were developed and launched under the NEWGEN brand, along with 8 upgraded models[15] - The company aims to create a sustainable path for RV electrification and is developing a new model of towable electric recreational vehicle (ERV)[15] - The company is developing a pioneering model of electric RVs as part of its commitment to sustainability and environmental responsibility[17] - The SRH-Hybrid 2025 model was launched in February 2025, expanding the hybrid towable RV lineup with advanced technology and luxury features[34] Market and Brand Strategy - The company operates three distinct brands: Snowy River, Regent, and NEWGEN, catering to various RV owner needs[14] - The company emphasizes customization in its RV offerings, allowing owners to personalize various aspects of their vehicles[14] - The company emphasizes customization in RV design and manufacturing, enhancing the owner experience from concept to delivery[16] - Future plans include expanding into European and Canadian markets, maintaining brand image, and upgrading production facilities[47] - The company is expanding into European and Canadian markets while preparing for North American supply chain deployment[62] Operational and Structural Insights - The manufacturing facilities in Zhejiang, China, cover approximately 47,567 square meters and include five specialized workshops and two advanced assembly lines[19] - The sales and distribution network consists of 13 third-party dealer stores, two self-owned stores, and four JV stores across major cities in Australasia as of December 31, 2024[20] - The backlog for Snowy River increased from 1,240 units in 2023, while Regent's backlog decreased from 72 units, and NEWGEN's backlog decreased from 144 units[32] - As of December 31, 2024, net current liabilities were RMB 6.0 million, with trade and other payables increasing to RMB 314.8 million[92] - As of December 31, 2024, total loans and borrowings amounted to RMB 89.4 million, an increase from RMB 31.6 million as of December 31, 2023[98] - The secured loans and borrowings from the Financing Partner to subsidiaries were RMB 64.2 million, while short-term unsecured bank loans were RMB 19.3 million and secured short-term bank loans were RMB 5.5 million[104] - The Group's gearing ratio was positive as of December 31, 2024, indicating a healthy capital structure[99] - Restricted cash as of December 31, 2024, totaled RMB 103.1 million, primarily for leasing deposits and guarantees for loans[101] - Capital expenditures for 2024 were RMB 8.0 million, mainly for the purchase of plant and equipment[109] Governance and Compliance - The Group did not have any material acquisitions or disposals of subsidiaries, associates, and joint ventures for the year ended December 31, 2024[113] - The Group has no specific plans for material investments or capital asset acquisitions as of December 31, 2024[102] - The Company has established a Remuneration Committee to formulate remuneration policies in compliance with the Corporate Governance Code[186] - The total remuneration paid to the Directors for the year ended December 31, 2024, was approximately RMB 4.8 million[195] - The total remuneration paid to the five highest-paid individuals for the year ended December 31, 2024, was RMB 6.5 million[195] - No remuneration was paid to the Directors or the five highest-paid individuals as inducement to join or as compensation for loss of office during the Reporting Period[196] - Each executive Director has entered into a service contract with the Company for an initial term of three years commencing from the Listing Date[197] - Independent non-executive Directors have entered into letters of appointment for an initial term of three years commencing from the Listing Date[198] - The Company offers compensation to executive Directors and senior management in the form of salaries, bonuses, social security plans, and other benefits[200] - The Remuneration Committee considers factors such as salaries paid by comparable companies and performance-based remuneration when determining specific remuneration packages[199] - The Company reimburses Directors and senior management for necessary and reasonable expenses incurred while providing services[199] - No Directors waived or agreed to waive any remuneration during the Reporting Period[196] Risks and Challenges - The business is subject to risks associated with third-party authorized dealers, which could negatively impact operations if there are losses or consolidations[139] - Supply chain risks are present, where delays or quality issues could materially affect the business and financial condition[141] - The Company has not entered into any significant contracts with controlling shareholders during the year ended December 31, 2024[142] - The Company maintained sufficient public float percentage required under the Listing Rules as of the date of the annual report[156] - There were no material legal proceedings against the Company during the Reporting Period that could adversely affect its business[181] - The Company made a donation of HKD 3.0 million to the HKEX Foundation Limited during the Reporting Period[183]

Core Insights - New GIAO RV demonstrates strong resilience and strategic determination in the face of global economic uncertainty, showcasing impressive financial results for FY2024 and outlining a clear path for long-term value growth [1] Financial Performance - New GIAO RV achieved a revenue of 864 million RMB, reflecting a 20% year-on-year growth, with direct sales from self-operated and joint venture stores contributing significantly, increasing by 215 million RMB [2] - The company delivered 2,804 units, marking a 4% increase year-on-year, while gross profit surged by 48.3% to 269 million RMB, with gross margin rising by 6 percentage points to 31.1% [2] - Adjusted net profit reached 87.93 million RMB, a 36% increase from the previous year, despite a decline in reported net profit due to one-time listing expenses and currency fluctuations [2] Channel Development - New GIAO RV has established a comprehensive sales network consisting of 13 dealerships, 2 self-operated stores, and 4 joint ventures, complemented by an official online platform, enhancing user proximity and delivery speed [3] - The company is deepening its presence in the Australian and New Zealand markets through joint ventures and plans to accelerate entry into the European and American RV markets via acquisitions [3] Product Innovation - In 2024, New GIAO RV launched 29 new models, addressing various market needs, including a groundbreaking electric trailer RV in collaboration with a new energy company [4] - The company is transitioning from a manufacturing advantage to a dual-driven model of technology and brand, enhancing its competitive edge [4] Strategic Vision - New GIAO RV is leveraging its Hong Kong listing for capital operations to support overseas acquisitions and technology investments, positioning itself competitively with a valuation of approximately 10 times earnings [5] - The company has outlined a three-step strategy to increase market share in Australia and New Zealand by 2027, establish a foothold in Europe and America by 2030, and aim for global optimization by 2035 [5] Conclusion - New GIAO RV's 2024 report reflects not only its growth amidst challenges but also its potential as a significant player in the global RV market, supported by its strategic depth, technological advancements, and capital strength [6]

Group 1: AI Technology Development - A series of AI agent technologies are rapidly developing, with expanding application scenarios [1] - The "Large Model 2.0 Industry Development Report" highlights that AI agents are crucial for the application and implementation of large models [1] - Companies are increasingly deploying large models and building AI agents to reconstruct business models, with 58.9% of enterprises planning to co-develop AI solutions with service providers [1] Group 2: AI Agent Applications - AI agents, capable of perceiving environments and taking actions to achieve specific goals, are expected to become more prevalent by 2025 [2] - Deloitte's report predicts that AI agents will soon support various roles, including supply chain managers and financial analysts [2] - OpenAI has released a lightweight programming AI agent, Codex CLI, compatible with its latest large models [2] Group 3: AI Hardware Innovations - Out of the question, the first global AI agent hardware, TicNote, has been launched by Out of the Question, featuring an AI agent named "Shadow" [3] - TicNote redefines the AI recording pen by providing accurate transcription and evolving intelligence over time [3] Group 4: Market Activity and Stock Performance - A total of 20 AI agent concept stocks have been investigated by institutions more than four times this year, with Zhongkong Technology receiving the most attention [4] - On April 17, AI agent concept stocks saw significant market activity, with Electric Sound Co. experiencing a surge to its daily limit [4] - Despite a 34.02% average pullback in AI agent concept stocks since their peak in 2024, some stocks have shown impressive earnings growth [5]

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]

Industry Overview - The RV, known as "home on wheels," combines the functions of a home and a vehicle, with types including motorhomes, towable RVs, off-road RVs, and racing RVs [1][4] - The RV market in China is transitioning from the introduction phase to the cultivation phase, with sales showing an upward trend, leading to market expansion [1][12] - The market size of China's RV industry has grown from approximately 50 billion yuan in 2018 to 108.49 billion yuan in 2024 [1][12] Domestic Market - Government policies such as the "14th Five-Year Plan for Tourism Development" and "Guidance on Promoting High-Quality Development of the Automotive Aftermarket" are fostering the growth of RV tourism and camping [6] - In 2024, 245 companies reported 895 new RV models, a 5.67% increase from 2023 [6] - The total RV sales in China increased from 7,374 units in 2018 to 11,748 units in 2024, although it decreased by 19.8% compared to 2023 [8] Market Competition - The RV industry in China has a low concentration, with CR3 and CR6 at 22.28% and 34.26% respectively, indicating a fragmented competitive landscape [14] - Major players include SAIC Maxus, Yutong Bus, Zhejiang Dade Longcui, and others, with SAIC Maxus holding approximately 10.39% of the market share [14] Development Trends - The RV industry is accelerating towards new energy and smart technology integration, with companies like Yutong and SAIC Maxus introducing electric RVs [20] - The integration of RVs with cultural tourism is creating new consumption scenarios, supported by government initiatives to establish RV stations along popular travel routes [22]

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]