Group 1: Alibaba (Code: 00988) - Technical analysis indicates a support level at 144.6 and a resistance level at 185.6, with strong rebound momentum from the support level, suggesting a short-term upward trend [1] - Recommended call warrants are 21370, 20017, and 15432, while bull warrants are 57383, 57470, and 57384 [1] Group 2: Meituan (Code: 03690) - Support level is at 88 and resistance level at 107.1, with a high probability of breaking through the resistance level, indicating an upward trend [1] - Recommended call warrants are 19971, 20069, and 20116, with bull warrants being 58005, 53778, and 53780 [1] Group 3: Xiaomi (Code: 01810) - Technical indicators show a support level at 39.8 and a resistance level at 56.4, with the price at the lower end of an upward channel, indicating a high safety margin and short-term upward trend [1] - Recommended call warrants are 16253, 13630, and 13979, while bull warrants are 67393, 67394, and 67402 [1] Group 4: AIA (Code: 01299) - Support level is at 68.6 and resistance level at 77.2, characterized by low volatility as a blue-chip stock, with a stable short-term upward trend [1] - Recommended call warrants are 18410, 17948, and 18411, with bull warrants being 61825, 53008, and 61274 [1] Group 5: Hong Kong Exchanges and Clearing (Code: 00388) - Technical analysis shows a support level at 399 and a resistance level at 460, with strong performance driven by active market trading, indicating a short-term upward trend [1] - Recommended call warrants are 27741, 15562, and 23503, while bull warrants are 62570, 56665, and 68548 [1] Group 6: BYD (Code: 01211) - Support level is at 95.8 and resistance level at 113.8, with the stock benefiting from the popularity of the new energy sector, indicating a short-term upward trend [1] - Recommended call warrants are 20458, 20495, and 20219, while bull warrants are 56780, 64027, and 63130 [1] Group 7: HSBC (Code: 00005) - Support level is at 94.3 and resistance level at 110.5, with a stable trend influenced by the valuation recovery in the banking sector, indicating a short-term upward trend [1] - Recommended call warrants are 19105, 18901, and 19104, while bull warrants are 65343, 66095, and 68629 [1] Group 8: China Construction Bank (Code: 00939) - Technical indicators show a support level at 7.38 and a resistance level at 8.26, characterized as a low valuation high dividend stock with strong safety attributes, indicating a short-term upward trend [1] - Recommended call warrants are 17265, 19572, and 20261, while bull warrants are 62134, 62178, and 57112 [1] Group 9: Industrial and Commercial Bank of China (Code: 01398) - Support level is at 5.55 and resistance level at 6.35, characterized by low volatility as a large-cap bank stock, indicating a clear short-term upward trend [1] - Recommended call warrants are 20585, 20618, and 16703, while bull warrants are 65682, 57199, and 58321 [1] Group 10: China Mobile (Code: 00941) - Technical analysis indicates a support level at 78.7 and a resistance level at 91.7, with strong earnings supporting the stock price as a leader in the telecommunications industry, indicating a short-term upward trend [1] - Recommended call warrants are 21277, 21344, and 28920, while bull warrants are 57975, 56130, and 63412 [1] Group 11: SMIC (Code: 00981) - Support level is at 58.5 and resistance level at 89.6, benefiting from favorable policies in the semiconductor sector, indicating high elasticity and a short-term upward trend [1] - Recommended call warrants are 13923, 20790, and 20292, while bull warrants are 61294, 61093, and 60800 [1] Group 12: Kuaishou (Code: 01024) - Support level is at 63.1 and resistance level at 88, with strong rebound momentum driven by stable demand in the short video sector, indicating a short-term upward trend [1] - Recommended call warrants are 17442, 17594, and 15122, while bull warrants are 59046, 59410, and 61399 [1] Group 13: JD.com (Code: 09618) - Technical indicators show a support level at 115.9 and a resistance level at 141.3, benefiting from the recovery in the e-commerce sector and positive earnings expectations, indicating a short-term upward trend [1] - Recommended call warrants are 19677, 19641, and 19529, while bull warrants are 56434, 55794, and 56562 [1] Group 14: Anta (Code: 02020) - Support level is at 81 and resistance level at 95.6, characterized as a leader in sports apparel, benefiting from consumer recovery, indicating a short-term upward trend [1] - Recommended call warrants are 13440, 13921, and 15902, while bull warrants are 54515, 54416, and 65820 [1] Group 15: Tencent (Code: 00700) - Technical indicators show a support level at 581 and a resistance level at 680, indicating a short-term upward trend with ample room for growth [1] - Recommended call warrants are 18949, 18902, and 13713, while bull warrants are 55125, 67093, and 55772 [1]

Market Overview - On October 20, A-shares rebounded with the Shanghai Composite Index rising by 0.63%, Shenzhen Component Index by 0.98%, and ChiNext Index by 1.98% [1] - The total market turnover was 1.75 trillion yuan, a decrease of over 200 billion yuan compared to the previous trading day [1] - More than 4,000 stocks closed higher, with 96 stocks hitting the daily limit up [1] Sector Performance - The coal mining and processing sector led the gains, with stocks like Shaanxi Black Cat and Zhengzhou Coal Electricity hitting the daily limit up [1] - Other sectors that followed included gas, electric machinery, non-metallic materials, and airport industries [1] - Conversely, sectors such as precious metals, kitchen and bathroom appliances, and energy metals saw significant declines [1] Historical Highs - A total of 15 stocks reached historical closing highs, with notable concentrations in the electric equipment, coal, and pharmaceutical industries [2] - The average increase for these stocks was 5.75%, with stocks like Haike Xinyuan and Sanlian Forging hitting the daily limit up [2] Institutional Trading - In the Dragon and Tiger list, 12 stocks had net purchases exceeding 10 million yuan, with Innovation Medical leading at 116.25 million yuan [4] - Other significant net purchases included Sifangda and Haitong Development, with amounts of 110.35 million yuan and 56.23 million yuan respectively [4] - On the selling side, Chifeng Gold saw the highest net sell at 250 million yuan [4] Northbound Capital - Northbound funds had net purchases in 14 stocks, with Chifeng Gold leading at 141 million yuan [6] - Other notable net purchases included Zhengzhou Coal Electricity and Baotailong, each exceeding 40 million yuan [6] Company Announcements - China Mobile reported a net profit of 115.4 billion yuan for the first three quarters, a year-on-year increase of 4% [8] - Nidec reported a 41.21% year-on-year increase in net profit for the third quarter [8] - Various companies such as Keda Xunfei and Shenneng Power reported significant year-on-year profit growths of 202% and 56.69% respectively [10]

Core Viewpoint - Qinghai Province is advancing its clean energy industry in alignment with China's "dual carbon" strategy, leveraging its abundant solar, wind, and hydro resources to promote ecological civilization and high-quality development [1] Group 1: Project Development - China South Glass Group's Qinghai project has successfully completed its first trial run for a high-purity crystalline silicon production facility with an annual capacity of 50,000 tons, meeting all core performance indicators [1] - The project emphasizes digital factories, advanced equipment, flexible production, and a circular economy, showcasing South Glass's decade-long expertise in photovoltaic materials [1] Group 2: Digital Transformation - The Qinghai project is designed as a fully digital factory, integrating information systems and safety production scheduling platforms to enable real-time data collection and AI analysis for production and safety risk management [2] - This digital factory represents a significant step in South Glass's digital transformation and aligns with Qinghai Province's goals for accelerating industrial digital upgrades [2] Group 3: Flexible Production and Circular Economy - In response to the rapidly changing market demands in the photovoltaic industry, South Glass has developed a flexible production capability that allows quick adjustments to product specifications based on customer needs [4] - The project incorporates a circular economy approach, utilizing resources from the Delingha Industrial Park to create a closed-loop system for resource utilization, enhancing energy efficiency and reducing emissions [4] Group 4: Industry Impact - As one of the earliest photovoltaic material companies in China, South Glass has established a strong foundation in high-purity silicon production technology, achieving electronic-grade purity during trial production [5] - The successful launch of the Qinghai project is expected to fill the domestic gap in high-quality crystalline silicon production, contributing to cost reduction and efficiency improvements in the photovoltaic supply chain while invigorating the local economy [5]

Core Viewpoint - China Southern Glass Group Co., Ltd. has approved an investment proposal to establish a photovoltaic glass production line in Egypt, aligning with the global trend of diversifying photovoltaic manufacturing capacity and the Belt and Road Initiative [1] Investment Details - The company plans to invest 1.755 billion yuan to build a photovoltaic glass production line in Egypt [1] - The project includes the construction of a 1,400T/D single furnace five-line photovoltaic float glass and four supporting tempered coating processing lines [1] - The estimated construction period for the project is three years [1] Strategic Advantages - The company has nearly 20 years of experience in photovoltaic glass manufacturing, providing a significant technological advantage [1] - Egypt's geographical and resource advantages are highlighted as beneficial for the project [1]

Core Viewpoint - Chifeng Jilong Gold Mining has successfully completed Phase I resource extraction for its Sepon new discovery gold-copper project, significantly increasing its gold and copper reserves, which is expected to enhance the company's overall resource base and future production capacity [1][2]. Group 1: Resource Discovery and Estimation - The SND gold-copper project has reported an increase of 70.7 tons in gold reserves and 0.33 million tons in copper reserves, with a total of 106.9 tons of gold equivalent metal discovered [1][2]. - The project includes approximately 93.7 million tons of "indicated" resources at an average grade of 0.57g/t gold and 0.27% copper, and 37.8 million tons of "inferred" resources at an average grade of 0.46g/t gold and 0.22% copper [2]. Group 2: Future Exploration and Production Plans - Chifeng Gold plans to increase mineral resources through deeper drilling at the SND deposit, with drilling expected to resume after the rainy season [2]. - The company aims to enhance gold mine output and reduce costs, with Wulong Mining's ore-treatment capacity expected to reach 3,000 tons per day by 2025 [4]. Group 3: International Operations and Growth - Exploration work at Chifeng Gold's Sepon mine in Laos is progressing to sustain gold production, with the SND deposit anticipated to support future output growth [5]. - The restart of the dead man hill pit at the Wassa mine in Ghana is expected to boost gold output, alongside intensified drilling efforts [5]. Group 4: Financial Performance and Market Position - The company maintains its earnings forecasts for 2025 and 2026 at RMB 2.99 billion and RMB 3.19 billion, respectively, with the stock trading at 16x and 15x P/E for those years [7]. - Following its successful listing on the Hong Kong Stock Exchange, Chifeng Gold is positioned for rapid growth, with plans to use 40% of the proceeds for acquiring new mines [6].

Core Insights - The role of the board secretary is crucial in connecting investors with listed companies, particularly in capital operations [1] - In 2024, the total compensation for board secretaries in A-share listed companies reached 4.086 billion yuan, with an average annual salary of 754,300 yuan [1] Industry Overview - A total of 73 listed companies in the building materials sector disclosed board secretary information, with overall revenue in 2024 amounting to 708.449 billion yuan, a year-on-year decline of 12.3% [1] - The net profit attributable to shareholders was recorded at 18.836 billion yuan, which is a significant drop, nearly halving compared to 2023 [1] - Only about 30% of companies in this sector reported increases in both revenue and net profit [1] Compensation Analysis - The average annual salary for board secretaries in the building materials sector in 2024 was 666,100 yuan, with 34 secretaries earning above this average [2] - The median salary was 630,200 yuan, with the highest and lowest salaries differing by 2.0166 million yuan [2] - Approximately 18.1% of board secretaries earned over 1 million yuan, while the lowest-paid secretary, Yu Haokun from Jinjing Technology, earned only 191,800 yuan [2] Salary Trends - Compared to 2023, the average and median salaries for board secretaries in the building materials sector decreased by 2.2% and 3.9%, respectively [2] - Among those in office for over a year, 29 secretaries saw a decrease in salary, with the most significant drop being 797,000 yuan for Qin Qing from Hainan Ruize [2] - Conversely, 26 secretaries experienced salary increases, with notable gains of 501,500 yuan and 518,200 yuan for Wang Chuanqiu from Shandong Fiberglass and Huang Dunxia from International Composite Materials, respectively [2] Top Earners - Ding Chengche from China Jushi topped the salary list with 2.0192 million yuan, significantly higher than the second-highest, Deng Lingyun from Qibin Group, who earned 1.772 million yuan [3] - The lowest-paid secretary with over a year of service was Yu Haokun from Jinjing Technology, earning 191,800 yuan and holding no company shares [2][3] - Among the top 10 earners, one secretary, Hu Bingfang from Tibet Tianlu, faced regulatory issues related to financial reporting inaccuracies [3]

Core Viewpoint - The article discusses the recent rumors regarding a restructuring plan in the photovoltaic industry, specifically in the polysilicon sector, which were later debunked by the China Photovoltaic Industry Association. The article emphasizes the ongoing challenges in the polysilicon market and the need for industry consolidation to address overcapacity and financial losses [3][6]. Group 1: Industry Restructuring Rumors - Rumors circulated about a closed-door meeting on July 29, where a "white paper" for industry restructuring was supposedly created, involving 11 polysilicon companies forming a joint venture to consolidate 70,000 tons of capacity [4]. - The proposed acquiring companies included six traditional giants and five emerging firms, indicating a significant shift in industry dynamics [4]. - The exit of six notable companies from the market signals a major reshuffling within the industry [5]. Group 2: Market Conditions and Responses - The polysilicon industry has faced a severe downturn, with prices plummeting from nearly 300,000 yuan per ton in 2022 to around 40,000 yuan currently, leading to widespread losses [5]. - The urgency for consolidation stems from the industry's prolonged struggles, with many companies on the brink of failure, necessitating a market-driven solution to avoid chaotic exits [5][10]. - The article highlights the government's proactive stance in addressing the issue of excessive competition and guiding the industry towards healthier development [5][10]. Group 3: Historical Context and Policy Implications - The article references past discussions on supply-side reforms in the photovoltaic sector, including targets for capacity reduction and efficiency improvements [8][9]. - It notes that the government's recognition of the detrimental effects of "involution" in manufacturing has led to a renewed focus on restructuring and efficiency [10][11]. - The divergence in market outlooks between domestic and foreign analysts is attributed to differing interpretations of government policy impacts on the industry [10].

[Company Information](index=2&type=section&id=公司资料) This chapter provides basic information about UBTECH Robotics Corp. Ltd., including core details such as board and committee members, company secretary, auditor, legal counsel, main office address, principal banks, and stock code [Company Overview](index=2&type=section&id=公司资料) This chapter provides basic information about UBTECH Robotics Corp. Ltd., including core details such as board and committee members, company secretary, auditor, legal counsel, main office address, principal banks, and stock code - The company's board of directors consists of executive, non-executive, and independent non-executive directors, with five committees: Audit, Environmental, Social and Governance, Remuneration and Assessment, Nomination, and Strategy[4](index=4&type=chunk) - The company's auditor is PwC Zhongtian LLP[4](index=4&type=chunk) - The company's stock code is **9880**, listed on the Hong Kong Stock Exchange[6](index=6&type=chunk) [Chairman's Report](index=4&type=section&id=主席报告) This report highlights the company's strategic focus on humanoid robots and AI, detailing technological breakthroughs, business performance across segments, and future development plans [Technology and R&D](index=7&type=section&id=技术与研发) In 2023, the company achieved key technological breakthroughs in humanoid robots, large models, and the AI industry, with R&D investment accounting for 46.5% of total revenue - In robotics technology, the company enhanced motion planning and control, full-body torque control, and developed new servo drivers, enabling robots to autonomously navigate complex terrains[7](index=7&type=chunk) - In AI technology, the company achieved lightweight deployment of high-performance visual models, and independently developed low-cost binocular depth camera kits and offline full-link voice interaction technology[8](index=8&type=chunk) - In robot-AI integration, the company upgraded its USLAM localization and navigation system and successfully developed a robot task planning framework combining multi-modal large language models, enhancing robots' embodied intelligence[10](index=10&type=chunk)[11](index=11&type=chunk) R&D Expenses | Year | R&D Expenses (RMB) | % of Total Revenue | | :--- | :--- | :--- | | 2023 | 490.5 million | 46.5% | | 2022 | 428.3 million | 42.5% | [2023 Business Review](index=9&type=section&id=2023年业务回顾) In 2023, logistics and consumer-grade robot businesses achieved strong growth, while education and other industry-customized robot businesses saw revenue decline due to project delivery delays [Education Intelligent Robots and Intelligent Robot Solutions](index=9&type=section&id=教育智能机器人及智能机器人解决方案) In 2023, education robot business revenue decreased by 32.8% to RMB 347 million due to project delivery delays, despite launching a new AI large model-integrated education platform and the successful UGOT robot Education Business Revenue | Indicator | 2023 (RMB) | 2022 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 347.4 million | 516.7 million | -32.8% | - The main reason for the revenue decline was that some awarded or signed projects were not completed and accepted by year-end[13](index=13&type=chunk) - The company developed a new generation education platform integrated with AI large models and successfully launched the UGOT robot, which was successfully crowdfunded on Kickstarter and is expected to be a new growth driver[12](index=12&type=chunk)[13](index=13&type=chunk) [Logistics Intelligent Robots and Intelligent Robot Solutions](index=9&type=section&id=物流智能机器人及智能机器人解决方案) In 2023, logistics robot business revenue grew significantly by 47.9% to RMB 389.7 million, driven by enhanced product competitiveness, new product launches, and increased customer base Logistics Business Revenue | Indicator | 2023 (RMB) | 2022 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 389.7 million | 263.4 million | +47.9% | - Revenue growth was mainly attributed to enhanced product competitiveness, new product launches, customer repurchases, and an increase in new customers and application scenarios[17](index=17&type=chunk) - The company launched the **Chitu L4 autonomous logistics vehicle**, expanding outdoor operation scenarios, and achieved mass production of the **Wali T3000 towing robot**[16](index=16&type=chunk) [Other Industry-Customized Intelligent Robots and Intelligent Robot Solutions](index=11&type=section&id=其他行业定制智能机器人及智能机器人解决方案) In 2023, other industry-customized robot business revenue decreased by 24.5% to RMB 62.2 million due to project delivery delays, while the company explored new applications and received an Edison Award for its eldercare solution Other Industry-Customized Business Revenue | Indicator | 2023 (RMB) | 2022 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 62.2 million | 82.4 million | -24.5% | - The **Walker S series** began exploring applications in new energy vehicle assembly lines, developing a specialized industrial humanoid robot[18](index=18&type=chunk) - The eldercare solution won the **Edison Award** in the US and has been applied in various institutional, community, and home care scenarios[19](index=19&type=chunk) [Consumer-Grade Robots and Other Hardware Devices](index=12&type=section&id=消费级机器人及其他硬件设备) In 2023, consumer-grade robot business revenue surged by 91.5% to RMB 254 million, becoming the fastest-growing segment, driven by continuous new product launches and successful crowdfunding initiatives Consumer-Grade Business Revenue | Indicator | 2023 (RMB) | 2022 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 253.6 million | 132.4 million | +91.5% | - Revenue growth was mainly due to the company's continuous launch of new consumer-grade intelligent products[21](index=21&type=chunk) - The first-generation cat litter box received positive reviews globally, and the second-generation cat litter box and Cyclone Strong Suction Robot Vacuum have achieved mass production[21](index=21&type=chunk) [Future Outlook](index=13&type=section&id=未来展望) The company's future strategy centers on humanoid robots and AI, focusing on R&D, multi-modal perception, large models, and embodied intelligence to expand applications and international markets - Continued investment in humanoid robot software and hardware R&D, integrating multi-modal large language models and other latest AI technologies, to promote their application in industrial and service scenarios[22](index=22&type=chunk) - Multi-modal perception and large model technology will be key strategies, researching large model robots to enhance their perception, reasoning, decision-making, and multi-task generalization capabilities[23](index=23&type=chunk) - Research embodied intelligence technology to enhance robots' ability to autonomously execute complex tasks and improve software and hardware architecture and platforms[24](index=24&type=chunk) - The company will further optimize its overseas layout and expand into international markets to meet global customer demand[24](index=24&type=chunk) [Financial Highlights](index=15&type=section&id=财务概要) This section provides a concise overview of the company's financial performance and position, including revenue, profitability, assets, and liabilities [Financial Highlights](index=15&type=section&id=财务概要) In 2023, the company's total revenue increased by 4.7% to RMB 1.056 billion, but gross profit decreased, and the annual loss expanded to RMB 1.265 billion, with total assets significantly growing to RMB 4.766 billion, and financial reports now prepared under China Accounting Standards 2020-2023 Financial Data Summary (RMB thousand) | Indicator | 2022 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,008,272 | 1,055,698 | +4.7% | | Gross Profit | 397,168 | 332,818 | -16.2% | | Loss for the Year | (987,368) | (1,264,590) | +28.1% | | Loss per Share (RMB) | (2.50) | (3.05) | +22.0% | | Total Assets | 2,788,002 | 4,765,635 | +70.9% | | Total Liabilities | 1,734,078 | 2,676,752 | +54.4% | | Net Assets | 1,053,924 | 2,088,883 | +98.2% | - Starting from the 2023 fiscal year, the Group's financial statements are prepared in accordance with China Accounting Standards for Business Enterprises, and 2022 data has been restated[26](index=26&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=管理层讨论及分析) This section provides an in-depth analysis of the company's financial performance, liquidity, capital resources, and human capital management [Financial Review](index=16&type=section&id=财务回顾) In 2023, revenue grew by 4.7% to RMB 1.056 billion, driven by logistics and consumer-grade robots, but gross profit declined by 16.2% to RMB 333 million due to product mix shifts, and increased expenses and credit impairment losses led to an expanded annual loss of RMB 1.265 billion Revenue by Product and Service (RMB thousand) | Product/Service | 2023 Amount | 2023 % | 2022 Amount | 2022 % | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Education Intelligent Robots | 347,328 | 32.9% | 516,688 | 51.2% | -32.8% | | Logistics Intelligent Robots | 389,724 | 36.9% | 263,437 | 26.1% | +47.9% | | Other Industry-Customized Robots | 62,238 | 5.9% | 82,418 | 8.2% | -24.5% | | Consumer-Grade Robots | 253,583 | 24.0% | 132,448 | 13.1% | +91.5% | | **Total** | **1,055,698** | **100.0%** | **1,008,272** | **100.0%** | **+4.7%** | - Gross profit decreased from **RMB 397.1 million** in 2022 to **RMB 332.8 million** in 2023, with gross margin falling from **39.4% to 31.5%**, primarily due to changes in product sales mix, with increased revenue contribution from lower-margin logistics business and decreased contribution from higher-margin education business[33](index=33&type=chunk) - Selling expenses increased by **RMB 133 million** year-on-year to **RMB 506 million**, mainly due to an increase of **RMB 91.6 million** in share-based payments and **RMB 40.1 million** in e-commerce promotion expenses[35](index=35&type=chunk) - R&D expenses increased by **RMB 62.2 million** year-on-year to **RMB 491 million**, primarily due to an increase of **RMB 60.7 million** in share-based payment expenses[37](index=37&type=chunk) - Credit impairment losses significantly increased from **RMB 46.4 million** in 2022 to **RMB 145 million** in 2023, mainly due to delayed payments from certain government-related customers, leading to a prudent provision for impairment[38](index=38&type=chunk) [Non-GAAP Measures](index=18&type=section&id=非公认会计准则计量) The company provides Non-GAAP financial metrics, including adjusted net loss and adjusted EBITDA, which exclude non-cash or one-off items like share-based payments and listing expenses, to offer a supplementary view of performance Non-GAAP Measures Reconciliation (RMB thousand) | Item | 2023 | 2022 | | :--- | :--- | :--- | | **Net Loss for the Year** | **(1,264,590)** | **(987,368)** | | Add: Share-based Payments | 383,839 | 204,387 | | Add: Listing Expenses | 63,749 | 944 | | **Adjusted Net Loss for the Year (Non-GAAP)** | **(817,002)** | **(782,037)** | | ...Adjustments... | ... | ... | | **Adjusted EBITDA (Non-GAAP)** | **(515,454)** | **(537,674)** | - The company defines "Adjusted Net Loss for the Year" as net loss for the year plus share-based payment expenses and listing expenses[43](index=43&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=流动资金及资本资源) As of 2023 year-end, the company's liquidity was robust, with increased cash and bank borrowings, an improved current ratio, and further strengthened by IPO proceeds in early 2024 Key Capital Resources Indicators | Indicator | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB million) | 520.9 | 145.4 | | External Bank Borrowings (RMB million) | 1,453.5 | 622.7 | | Gearing Ratio | 73.3% | 55.4% | | Current Ratio | 1.5x | 1.0x | - The increase in bank borrowings was mainly for daily operations and payment of construction costs for the Shenzhen headquarters building[47](index=47&type=chunk) - Capital expenditure in 2023 was **RMB 541 million**, primarily related to the construction of the Shenzhen headquarters[53](index=53&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=雇员及薪酬政策) As of 2023 year-end, the company had 2,013 full-time employees, with total remuneration costs increasing to RMB 1.007 billion, primarily due to higher share-based payment expenses, reflecting a competitive remuneration policy and equity incentive plans Employee and Remuneration Overview | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Full-time Employees | 2,013 | - | | Total Remuneration Costs (RMB million) | 1,007 | 827 | - The increase in remuneration costs was mainly due to an increase of **RMB 179.5 million** in share-based payment expenses[51](index=51&type=chunk) [Biographies of Directors, Supervisors and Senior Management](index=22&type=section&id=董事、监事及高级管理层之履历详情) This section provides detailed biographical information for the company's directors, supervisors, and senior management, highlighting their professional backgrounds and roles within the Group [Core Management Background](index=22&type=section&id=董事、监事及高级管理层之履历详情) This chapter details the personal biographies, professional backgrounds, and internal/external appointments of the company's executive directors, non-executive directors, independent non-executive directors, supervisors, senior management, and joint company secretaries, showcasing the core management team's extensive experience in robotics technology, corporate management, finance, and investment - Mr. Zhou Jian, Founder, Chairman of the Board, and CEO, is responsible for the Group's strategic planning and major decisions[55](index=55&type=chunk) - Mr. Xiong Youjun, Executive Director and CTO, is responsible for technology R&D management, and holds a Ph.D. in Mechanical Design and Theory[56](index=56&type=chunk) - Mr. Zhang Ju, Deputy General Manager, CFO, and Board Secretary, is responsible for the Group's overall finance, accounting, and capital market affairs[82](index=82&type=chunk) [Corporate Governance Report](index=31&type=section&id=企业管治报告) This report details the company's corporate governance framework, including board structure, committee functions, risk management, and communication with shareholders [Corporate Governance Practices and Compliance](index=31&type=section&id=企业管治常规) The company adheres to high corporate governance standards, adopting the HKEX Corporate Governance Code and complying with all applicable provisions since its listing, with a noted deviation where the Chairman and CEO roles are combined for strategic continuity - The company has adopted the HKEX Corporate Governance Code as the basis for its corporate governance practices[87](index=87&type=chunk) - From the listing date to December 31, 2023, the company complied with all applicable code provisions, except for code provision C.2.1 (separation of Chairman and CEO roles)[87](index=87&type=chunk) [Board of Directors](index=31&type=section&id=董事会) The Board of Directors, comprising 11 members with a balanced composition of executive, non-executive, and independent non-executive directors, oversees company affairs and ensures directors' continuous professional development - The Board of Directors consists of **4 executive directors, 3 non-executive directors, and 4 independent non-executive directors**, with no relationships among members[92](index=92&type=chunk) - Mr. Zhou Jian serves as both Chairman of the Board and CEO, deviating from the Corporate Governance Code's recommendation, which the Board believes is in the overall best interest of the company and shareholders, as it facilitates management continuity and strategic implementation[97](index=97&type=chunk) - All directors have received training on the duties of directors of a listed company and confirmed their understanding of their obligations[107](index=107&type=chunk) [Board Committees](index=36&type=section&id=董事委员会) The Board has five committees—Audit, ESG, Remuneration and Assessment, Nomination, and Strategy—each composed of directors with relevant expertise, with key committees chaired by independent non-executive directors to ensure independence - The Audit Committee consists of three independent non-executive directors, chaired by Mr. Xiong Chuxiong, responsible for overseeing financial reporting, risk management, and internal control systems[109](index=109&type=chunk)[111](index=111&type=chunk) - The Remuneration and Assessment Committee consists of one executive director and two independent non-executive directors, chaired by Mr. Pan Fuquan, responsible for formulating and reviewing remuneration policies[114](index=114&type=chunk) - The Nomination Committee consists of one executive director and two independent non-executive directors, chaired by Mr. Zhao Jie, responsible for reviewing the Board structure, identifying, and nominating director candidates[117](index=117&type=chunk) 2023 Remuneration Ranges for Directors, Supervisors, and Senior Management (RMB thousand) | Remuneration Range (RMB thousand) | Number of People | | :--- | :--- | | 0 - 1,000 | 9 | | 1,000 - 5,000 | 1 | | 5,000 - 10,000 | 4 | | 10,000 - 20,000 | 1 | | 20,000 - 30,000 | 1 | [Risk Management and Internal Control](index=43&type=section&id=风险管理及内部监控) The company maintains a three-lines-of-defense risk management and internal control system, with the Board responsible for oversight, addressing business, financial, compliance, and information risks through established policies and reporting channels - The company has established a three-lines-of-defense risk management and internal control system, with the Board as the highest decision-making body, bearing ultimate responsibility for its establishment and effective implementation[132](index=132&type=chunk) - Significant risks identified during the reporting period primarily include business risks, financial risks, compliance risks, inside information, and internal control risks, for which corresponding response plans have been developed[134](index=134&type=chunk) - The company has formulated an anti-corruption policy with zero tolerance for corrupt behavior and established reporting channels[139](index=139&type=chunk)[142](index=142&type=chunk) - The Board has reviewed the risk management and internal control work during the reporting period and considers the system effective and adequate, with no significant risk control failures or deficiencies found[141](index=141&type=chunk) [Communication with Shareholders and Investors](index=49&type=section&id=与股东及投资者的沟通) The company prioritizes effective shareholder communication through various channels, including general meetings, its website, and announcements, ensuring shareholders' rights to convene meetings and propose resolutions - The company communicates with shareholders through various channels, including general meetings, the company website (www.ubtrobot.com), announcements, and corporate communications[155](index=155&type=chunk)[158](index=158&type=chunk)[160](index=160&type=chunk) - Shareholder rights: Shareholders holding individually or collectively over **10%** of shares may request to convene an extraordinary general meeting; shareholders holding individually or collectively over **3%** of shares may propose ad-hoc resolutions[150](index=150&type=chunk)[151](index=151&type=chunk) [Directors' Report](index=52&type=section&id=董事会报告) This report provides an overview of the company's performance, dividend policy, use of IPO proceeds, key customer and supplier relationships, continuing connected transactions, and equity incentive schemes [Use of Proceeds from Global Offering](index=52&type=section&id=全球发售所得款项用途) The company's global offering in December 2023 yielded approximately HKD 906 million in net proceeds, primarily allocated to R&D enhancement, bank loan repayment, and brand promotion, with funds remaining unutilized as of year-end Planned Use of Net Proceeds from Global Offering | Purpose | Approx. % | Amount (HKD million) | Expected Utilization Time | | :--- | :--- | :--- | :--- | | Enhance R&D Capabilities | 47.0% | 425.8 | Before end of 2026 | | Repay Bank Loans | 19.4% | 175.7 | Before end of 2024 | | Strengthen R&D Infrastructure | 7.9% | 71.6 | Before end of 2024 | | Enhance Brand Awareness | 9.5% | 86.1 | Before end of 2025 | | Optimize Management & Operational Efficiency | 6.2% | 56.2 | Before end of 2026 | | General Working Capital | 10.0% | 90.6 | Before end of 2024 | | **Total** | **100%** | **905.9** | | - As of December 31, 2023, the net proceeds from the global offering remained unutilized[174](index=174&type=chunk) [Results and Dividend Distribution](index=54&type=section&id=业绩及股息分配) The Group's performance for the year is detailed in the financial statements, and the Board does not recommend a final dividend for the year ended December 31, 2023 - The Board does not recommend the distribution of a final dividend for the year ended December 31, 2023[177](index=177&type=chunk) [Major Customers and Suppliers](index=55&type=section&id=主要客户及供应商) In 2023, the company experienced high customer and supplier concentration, with the largest customer accounting for 27.6% of total revenue and the top five customers for 53.4%, while the largest supplier accounted for 6.9% of total purchases and the top five for 21.1% Customer and Supplier Concentration | Concentration | 2023 | 2022 | | :--- | :--- | :--- | | Largest Customer as % of Total Revenue | 27.6% | 27.4% | | Top Five Customers as % of Total Revenue | 53.4% | 71.5% | | Largest Supplier as % of Total Purchases | 6.9% | 6.5% | | Top Five Suppliers as % of Total Purchases | 21.1% | 26.3% | [Continuing Connected Transactions](index=58&type=section&id=持续关连交易) The Group engaged in a significant non-exempt continuing connected transaction in 2023, involving the sale of intelligent robots and solutions to Tianqi Automation Engineering Group, which was reviewed and confirmed by independent directors and auditors - The main continuing connected transaction is the provision of intelligent robot products and services by subsidiary Wuxi Uqi to Tianqi Automation Engineering Group[209](index=209&type=chunk) Annual Caps for Sales to Tianqi Automation Engineering Group (RMB million) | Transaction Type | 2023 Actual Amount | 2023 Cap | 2024 Cap | 2025 Cap | | :--- | :--- | :--- | :--- | :--- | | Purchase of Tianqi Automation Engineering Products and Services | 293.6 | 294.0 | 122.0 | 62.0 | - As Tianqi Automation Engineering holds **30.97%** equity in Wuxi Uqi, it is a major shareholder of a company subsidiary, constituting a connected person under the Listing Rules, and this transaction constitutes a non-exempt continuing connected transaction[216](index=216&type=chunk) - Independent non-executive directors and independent auditors have reviewed these transactions and deemed them to be entered into in the ordinary course of business on normal commercial terms, fair and reasonable, and in the overall interest of shareholders[218](index=218&type=chunk)[219](index=219&type=chunk) [Equity Incentive Scheme](index=64&type=section&id=股權激勵計劃) The company's equity incentive scheme, implemented since 2015, grants indirect interests in shares to core employees through shareholding platforms, with all shares issued and no new grants after listing - The equity incentive scheme grants indirect interests in company shares to participants through limited partnership entities (shareholding platforms) to incentivize and retain talent[227](index=227&type=chunk)[228](index=228&type=chunk) Changes in Unvested Awards for Certain Grantees (Units) | Grantee Category | Unvested at Listing Date | Unvested at Dec 2023 | Vested During Period | Forfeited During Period | | :--- | :--- | :--- | :--- | :--- | | Mr. Zhou Jian | 20,000 | 20,000 | 0 | 0 | | Mr. Xiong Youjun | 300,000 | 300,000 | 0 | 0 | | Ms. Wang Lin | 370,000 | 370,000 | 0 | 0 | | Mr. Liu Ming | 291,000 | 291,000 | 0 | 0 | | Top Five Highest Paid Individuals (excluding directors) | 1,340,000 | 1,300,000 | 40,000 | 0 | [Major Shareholders' Interests](index=66&type=section&id=主要股東權益) This chapter discloses the interests of directors, supervisors, chief executives, and major shareholders in the company's shares, highlighting the controlling shareholder's collective voting power and other significant investors - Controlling shareholder Mr. Zhou Jian, through direct holdings, controlled corporations (Shenzhen Sanciyuan), and acting-in-concert parties including Mr. Xia Zuoquan, Mr. Xiong Youjun, and Ms. Wang Lin, collectively holds approximately **51.17%** of the company's voting rights[222](index=222&type=chunk)[226](index=226&type=chunk)[514](index=514&type=chunk) - Tencent Holdings Limited, through its subsidiaries Image Frame and Shenzhen Tencent, collectively holds approximately **6.14%** of the company's shares[243](index=243&type=chunk) - Qiming Venture Partners, through its affiliated entities, collectively holds approximately **5.66%** of the company's shares[243](index=243&type=chunk) [Supervisory Committee Report](index=77&type=section&id=监事会报告) This report outlines the Supervisory Committee's work in 2023, confirming the Board's effective operation, sound financial status, and robust internal controls, with plans to strengthen oversight in 2024 [Overview of Supervisory Committee Work](index=77&type=section&id=监事会报告) The Supervisory Committee's 2023 report confirms the Board's effective operation, legal decision-making, normal financial status, and sound internal controls, with no violations by directors or senior management, and outlines plans to strengthen oversight in 2024 - The Supervisory Committee believes that the company's Board of Directors operates effectively, decision-making is reasonable and legal, and directors and senior management fulfill their duties diligently, with no acts detrimental to the company or shareholders' interests[278](index=278&type=chunk) - The Supervisory Committee confirms that the company's financial operations are normal, systems are sound, financial statements truly reflect the company's financial position, and connected transactions are fair and reasonable[278](index=278&type=chunk) - The 2024 work plan includes: strengthening oversight functions, focusing on risk management and internal control, deepening financial supervision, and increasing attention to information disclosure matters[279](index=279&type=chunk) [Environmental, Social and Governance (ESG) Report](index=79&type=section&id=环境、社会及管治报告) This report details the company's commitment to sustainable development, covering its ESG governance structure, product and service responsibility, talent management, and environmental initiatives [Sustainable Development Governance](index=89&type=section&id=可持续发展管治) The company has established a top-down ESG governance structure, identifying 7 highly material issues through stakeholder engagement, and implementing comprehensive policies for risk management, anti-bribery, information security, and environmental management, supported by ISO37001 certification - The company has established a three-tier ESG governance structure: Board of Directors, ESG and Sustainable Development Committee, and ESG-related functional departments[308](index=308&type=chunk)[309](index=309&type=chunk) - Through materiality assessment, **7 highly material issues** were identified, including: product quality and safety, compliant operations, intellectual property protection, information security and privacy protection, product innovation technology, customer service, and occupational health and safety[321](index=321&type=chunk)[322](index=322&type=chunk) - The company has formulated a comprehensive anti-corruption policy, established reporting channels, joined the "Enterprise Anti-Fraud Alliance" and "Sunshine Integrity Alliance," and obtained **ISO37001 anti-bribery management system certification**[328](index=328&type=chunk)[329](index=329&type=chunk) [Products and Services](index=100&type=section&id=产品与服务) The company provides intelligent service robot solutions across various sectors, emphasizing AI ethics, strict quality management (ISO9001 certified), robust intellectual property protection (2,172 patents), and comprehensive data security measures - The company has benchmark application cases in education, logistics, general services, and eldercare, such as participating in the Chengdu Universiade closing ceremony and collaborating with Tianqi Automation to empower smart logistics[341](index=341&type=chunk)[343](index=343&type=chunk)[346](index=346&type=chunk)[349](index=349&type=chunk) - The company has established a comprehensive product quality management system and obtained **ISO9001 certification**, achieving a **92.66%** customer service satisfaction rate in 2023, handling **46 product complaints** with no product recalls due to safety or health reasons[363](index=363&type=chunk)[371](index=371&type=chunk)[372](index=372&type=chunk) - As of the end of 2023, the company held **2,172** robotics and AI-related patents, with **566** new additions during the year, and two patents received the China Patent Excellence Award[282](index=282&type=chunk)[374](index=374&type=chunk)[377](index=377&type=chunk) - The company has established a comprehensive data protection policy system and a data compliance working group, with its data security management capabilities certified by the China Academy of Information and Communications Technology's Trustworthy Big Data Program[379](index=379&type=chunk)[383](index=383&type=chunk)[390](index=390&type=chunk) - The company implements a sustainable procurement policy, incorporating ESG assessments into supplier onboarding and management, and audited **233** major suppliers in 2023[394](index=394&type=chunk)[395](index=395&type=chunk)[396](index=396&type=chunk) [Talent Management](index=118&type=section&id=人才管理) The company prioritizes employees as core assets, offering comprehensive employment, compensation, training, and health and safety systems, including "five social insurances and one housing fund," talent development frameworks, and ISO45001 certification for occupational health and safety 2023 Employee Profile | Indicator | Data | | :--- | :--- | | Total Employees | 2,013 people | | Female Employee Ratio | 34.4% | | Total Employee Turnover Rate | 22.16% | | Workdays Lost Due to Work Injury | 163 days | | Work-related Fatalities in Past Three Years | 0 people | 2023 Employee Training Overview | Indicator | Data | | :--- | :--- | | Percentage of Female Employees Trained | 32.38% | | Percentage of Male Employees Trained | 67.62% | | Average Training Hours for Female Employees | 2.90 hours | | Average Training Hours for Male Employees | 3.90 hours | - The company strictly prohibits child labor and forced labor, and has detailed attendance and leave management regulations[398](index=398&type=chunk) - The company's occupational health and safety management system has obtained **GB/T 45001/ISO45001 certification**[406](index=406&type=chunk) [Environmental Management](index=126&type=section&id=环境管理) The company adheres to an environmental policy of "promoting energy saving and consumption reduction, achieving pollution prevention," holding ISO14001 certification, and has set 2025 environmental targets for energy, water, and waste, while also assessing and addressing climate change risks 2023 Key Environmental Performance | Indicator | Unit | 2023 Data | | :--- | :--- | :--- | | **Greenhouse Gas Emissions** | | | | Total Scope 1+2 Emissions | metric tons CO2e | 1,767.65 | | Emissions Intensity (per area) | metric tons CO2e/sqm | 0.03 | | **Energy Consumption** | | | | Total Electricity Consumption | MWh | 3,134.97 | | **Water Consumption** | | | | Total Water Consumption | cubic meters | 26,126.64 | | **Waste** | | | | Non-hazardous Waste Generated | metric tons | 267,432.50 | - The company has set environmental targets until **2025**, including energy consumption growth rate lower than production growth rate by **5-10%**, water consumption intensity reduction of approximately **7%**, and **100%** compliant disposal of hazardous waste[415](index=415&type=chunk) - The company identified climate change-related risks, including physical risks such as extreme heat and floods, and transition risks such as tightening policies and regulations and changes in customer preferences, and formulated corresponding response measures[428](index=428&type=chunk)[430](index=430&type=chunk)[432](index=432&type=chunk)[433](index=433&type=chunk) [Audit Report](index=148&type=section&id=审计报告) This section presents the independent auditor's opinion on the company's financial statements and highlights key audit matters [Audit Report](index=148&type=section&id=审计报告) PwC Zhongtian LLP issued an unqualified audit opinion on the company's 2023 financial statements, confirming their fair presentation, and identified inventory net realizable value and accounts receivable expected credit losses as key audit matters requiring detailed procedures - Auditor PwC Zhongtian issued a standard unqualified audit opinion[468](index=468&type=chunk) - Key Audit Matter One: Assessment of net realizable value of inventories, which due to its significant amount and complex judgments, was addressed by understanding internal controls, evaluating methodologies, and sampling and testing estimated selling prices and costs[472](index=472&type=chunk)[473](index=473&type=chunk)[475](index=475&type=chunk) - Key Audit Matter Two: Measurement of expected credit losses on accounts receivable, which due to its significant amount and complex estimates, was addressed by evaluating portfolio segmentation, testing aging, examining key assumptions, and assessing models with expert assistance[472](index=472&type=chunk)[478](index=478&type=chunk)[481](index=481&type=chunk) [Financial Statements](index=156&type=section&id=财务报表) This section presents the company's consolidated financial statements, including the balance sheet, income statement, cash flow statement, and selected notes [Consolidated Balance Sheet](index=156&type=section&id=合并及公司资产负债表) As of 2023 year-end, total assets reached RMB 4.766 billion, a 70.9% increase, driven by construction in progress, other receivables, and cash, while total liabilities rose 54.4% to RMB 2.677 billion due to increased borrowings, and shareholders' equity grew 98.2% to RMB 2.089 billion Consolidated Balance Sheet Summary (RMB thousand) | Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Total Current Assets | 2,917,237 | 1,385,159 | | Total Non-current Assets | 1,848,398 | 1,402,843 | | **Total Assets** | **4,765,635** | **2,788,002** | | **Liabilities and Shareholders' Equity** | | | | Total Current Liabilities | 1,952,105 | 1,364,495 | | Total Non-current Liabilities | 724,647 | 369,583 | | **Total Liabilities** | **2,676,752** | **1,734,078** | | **Total Shareholders' Equity** | **2,088,883** | **1,053,924** | | **Total Liabilities and Shareholders' Equity** | **4,765,635** | **2,788,002** | [Consolidated Income Statement](index=159&type=section&id=合并及公司利润表) In 2023, operating revenue increased by 4.7% to RMB 1.056 billion, but rising operating costs, increased selling, administrative, and R&D expenses, and significant credit and asset impairment losses led to an expanded net loss of RMB 1.265 billion Consolidated Income Statement Summary (RMB thousand) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Operating Revenue | 1,055,698 | 1,008,272 | | Less: Operating Costs | (722,880) | (611,104) | | **Gross Profit** | **332,818** | **397,168** | | Selling Expenses | (506,113) | (373,344) | | Administrative Expenses | (399,706) | (409,652) | | R&D Expenses | (490,502) | (428,280) | | Credit Impairment Losses | (144,995) | (46,386) | | Asset Impairment Losses | (26,376) | (70,618) | | **Operating Loss** | **(1,227,636)** | **(968,394)** | | **Net Loss** | **(1,264,590)** | **(987,368)** | | Net Loss Attributable to Parent Company Shareholders | (1,234,048) | (974,809) | [Consolidated Cash Flow Statement](index=161&type=section&id=合并及公司现金流量表) In 2023, the company experienced increased net cash outflow from operating activities (RMB 1.000 billion) and investing activities (RMB 506 million), offset by significant net cash inflow from financing activities (RMB 1.880 billion), resulting in a net increase of RMB 376 million in cash and cash equivalents at year-end Consolidated Cash Flow Statement Summary (RMB thousand) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (1,000,302) | (538,697) | | Net Cash Used in Investing Activities | (505,598) | (394,317) | | Net Cash Generated from Financing Activities | 1,880,305 | 802,797 | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **375,504** | **(127,705)** | | Cash and Cash Equivalents at Beginning of Year | 145,398 | 273,103 | | **Cash and Cash Equivalents at End of Year** | **520,902** | **145,398** | [Notes to Financial Statements (Selected)](index=165&type=section&id=财务报表附注) The notes provide detailed explanations of financial statement items, including the adoption of China Accounting Standards, changes in revenue structure, increased impairment provisions, strengthened capital structure through IPO and borrowings, ongoing losses, and the implementation of equity incentive plans - The company began preparing its overseas financial statements in accordance with China Accounting Standards for Business Enterprises for the year ended December 31, 2023, and restated 2022 data[26](index=26&type=chunk) Provision for Bad Debts on Accounts Receivable (RMB thousand) | Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Book Balance | 1,068,734 | 739,284 | | Bad Debt Provision | (235,061) | (89,629) | | **Book Value** | **833,673** | **649,655** | | Bad Debt Provision Rate | 21.99% | 12.12% | Inventory Impairment Provision (RMB thousand) | Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Book Balance | 427,485 | 398,937 | | Inventory Impairment Provision | (11,461) | (72,771) | | **Book Value** | **416,024** | **326,166** | - In 2023, the company raised approximately **RMB 2.517 billion** through private placement and IPO listing, significantly increasing share capital and capital reserves[695](index=695&type=chunk) - Total share-based payment expenses recognized in 2023 were **RMB 384 million**, a significant reason for the increase in administrative and selling expenses[756](index=756&type=chunk) - Regarding related party transactions, sales of goods to Tianqi Automation and its subsidiaries amounted to **RMB 294 million** in 2023[759](index=759&type=chunk)

智通财经APP讯，丝路物流控股(00988)发布公告，公司收到一份联交所日期为2024年4月10日的函件，当中联交所上市复核委员会决定根据上市规则第6.01A条维持除牌决定以取消股份的上市。 联交所上市复核委员会已考虑以下因素以达致上市复核委员会决定，其中包括：于补救期于2023年11月24日到期时，公司未能证明其符合上市规则第13.24条的规定;由于利润率低加上持续的重大债务，近期的收入增加未能使公司业务由亏转盈;及对于公司能否达致预期的收入增加及公司业务的盈利能力会否改善(包括融资能力，乃为达成若干条件的主要因素)仍有重大不确定性。 联交所已知会公司，股份最后上市日期为2024年4月22日，股份将自2024年4月23日上午九时正起取消上市。 ...

[Annual Performance Summary](index=1&type=section&id=I.%20Annual%20Performance%20Summary) UBTECH Robotics' 2023 fiscal year revenue increased by 4.7% to RMB 1,055.7 million, but gross profit decreased by 16.2% to RMB 333 million, and net loss expanded to RMB 1,264.6 million [Financial Summary](index=1&type=section&id=1.1%20Financial%20Summary) UBTECH Robotics' 2023 fiscal year revenue increased by 4.7% to RMB 1,055.7 million, but gross profit decreased by 16.2% to RMB 333 million, and net loss expanded to RMB 1,264.6 million Table: Financial Performance Overview | Metric | 2023 (RMB million) | 2022 (RMB million) | | :--- | :--- | :--- | | Revenue | 1,055.7 | 1,008.3 | | Gross Profit | 333 | 397 | | Loss | 1,264.6 | 987.4 | - Revenue increased by **4.7%** from **RMB 1,008.3 million** in 2022 to **RMB 1,055.7 million** in 2023[4](index=4&type=chunk) - Gross profit decreased by **16.2%** from **RMB 397 million** in 2022 to **RMB 333 million** in 2023[4](index=4&type=chunk) - Loss expanded to **RMB 1,264.6 million** in 2023, compared to **RMB 987.4 million** in 2022[4](index=4&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=II.%20Management%20Discussion%20and%20Analysis) The company achieved significant technological breakthroughs in robotics and AI amidst a recovering macro environment, with varied performance across business segments, and plans to focus on humanoid robots and embodied intelligence for future growth [2023 Macroeconomic Environment and Technological Breakthroughs](index=2&type=section&id=2.1%202023%20Macroeconomic%20Environment%20and%20Technological%20Breakthroughs) In 2023, China's economy recovered rapidly, with humanoid robots, large models, and AI industries booming; UBTECH achieved breakthroughs in robotics, AI, and their integration, increasing R&D investment as a percentage of total revenue - In 2023, China's economy rapidly recovered, with the explosion of humanoid robots, large models, and AI industries becoming a significant driving force for global technological development[6](index=6&type=chunk) Table: R&D Expenditure Overview | Metric | 2023 (RMB million) | 2022 (RMB million) | % of Total Revenue (2023) | % of Total Revenue (2022) | | :--- | :--- | :--- | :--- | :--- | | R&D Expenditure | 490.5 | 428.3 | 46.5% | 42.5% | [Robotics Technology](index=2&type=section&id=2.1.1%20Robotics%20Technology) The company continuously enhanced humanoid robot motion planning and control, full-body torque control, and initiated research on reinforcement learning-based gait planning algorithms, making progress in perception-driven gait planning and servo drive and transmission technology - Continuously enhanced robot motion planning and control technology, full-body torque control technology, and initiated research on end-to-end humanoid robot gait planning algorithms based on reinforcement learning[6](index=6&type=chunk) - Achieved progress in perception-driven gait planning and generation, enabling robots to autonomously navigate complex scenarios like slopes and stairs based on identified terrain information[6](index=6&type=chunk) - Developed various servo drive and transmission technologies, including large-thrust linear servo drives, laying the hardware foundation for enhancing the motion capabilities of next-generation large humanoid robots[6](index=6&type=chunk) [Artificial Intelligence Technology](index=2&type=section&id=2.1.2%20Artificial%20Intelligence%20Technology) The company applied lightweight high-performance visual models to robots for edge-side human-machine interaction, self-developed low-cost binocular depth cameras, and achieved multi-sensor multi-modal fusion perception in autonomous vehicles; it also developed offline speech full-chain interaction technology to enhance interaction fluency and user privacy protection - Applied lightweight high-performance visual models to robots and smart products; also self-developed low-cost binocular depth camera kits to achieve binocular vision perception technology[7](index=7&type=chunk) - Achieved stable and reliable panoramic perception in autonomous vehicles based on multi-sensor multi-modal fusion, including target detection, semantic segmentation, and drivable area functions[7](index=7&type=chunk) - Developed offline speech full-chain interaction technology, covering key components such as automatic speech recognition (ASR), natural language processing (NLP), and text-to-speech (TTS), which operates without network connection and features low latency and high speed[7](index=7&type=chunk) [Robotics and AI Integration Technology](index=3&type=section&id=2.1.3%20Robotics%20and%20AI%20Integration%20Technology) The company continuously upgraded its USLAM positioning and navigation system, achieving breakthroughs in indoor and outdoor scenarios, including campus outdoor low-speed autonomous driving and indoor multi-type obstacle perception; it also researched multi-modal large language models for robot perception, decision-making, and operation, enhancing multi-task decision and execution capabilities - Continuously upgraded its self-developed USLAM positioning and navigation system to adapt to more diverse scenarios and software/hardware platforms, achieving technological breakthroughs in both indoor and outdoor settings, and implementing an intelligent driving solution for unmanned logistics vehicles that does not rely on RTK high-precision positioning[9](index=9&type=chunk) - Researched multi-modal large language model technology for robot perception, decision-making, and operation, successfully implementing a framework for robots to interact with the environment and multi-modal large language models for autonomous task planning[10](index=10&type=chunk) - This technology integrates multi-modal information such as map data, visual object recognition, and speech recognition, providing robots with more comprehensive and accurate environmental perception, understanding, and interaction capabilities, thereby enhancing multi-task decision-making and execution abilities[10](index=10&type=chunk) [2023 Business Review](index=4&type=section&id=2.2%202023%20Business%20Review) In 2023, UBTECH made significant progress across its four business segments: education, logistics, customized solutions, and consumer robots; education and customized business revenue declined due to project delays, while logistics and consumer businesses saw substantial growth from enhanced product competitiveness and new launches - In 2023, the company was committed to exploring broader market areas and actively developing intelligent robot + diversified integrated application solutions[13](index=13&type=chunk) Table: Revenue by Business Segment | Business Segment | 2023 Revenue (RMB million) | 2022 Revenue (RMB million) | Year-over-Year Change | % of Total Revenue (2023) | | :--- | :--- | :--- | :--- | :--- | | Educational Intelligent Robots and Solutions | 347.4 | 516.7 | -32.8% | 32.9% | | Logistics Intelligent Robots and Solutions | 389.7 | 263.4 | +47.9% | 36.9% | | Customized Intelligent Robots and Solutions for Other Industries | 62.2 | 82.4 | -24.5% | 5.9% | | Consumer-Grade Robots and Other Hardware | 253.6 | 132.4 | +91.5% | 24.0% | [Educational Intelligent Robots and Solutions](index=4&type=section&id=2.2.1%20Educational%20Intelligent%20Robots%20and%20Solutions) The company built a comprehensive educational software and hardware development platform, upgraded its new-generation education platform with AI large model integration, enhancing eight key AI functions and significantly improving the winning rate for educational projects; it successfully launched the UGOT general bionic building robot and actively explored "science, education, research, and tourism" integrated solutions, though revenue for this business decreased by 32.8% due to project delivery and acceptance delays - Developed a new generation education platform, integrating high-tech AI large model applications to empower core platform businesses, further strengthening eight key AI functions: image recognition, speech recognition, machine learning, facial recognition, natural language processing, posture recognition, graffiti recognition, and generative artificial intelligence (AIGC)[12](index=12&type=chunk) - Successfully launched UGOT, a versatile bionic building robot with rich AI attributes, high openness, and ease of assembly, along with AI education-related courses, achieving its crowdfunding goal on Kickstarter[13](index=13&type=chunk) - Revenue from educational intelligent robots and solutions reached **RMB 347.4 million** in 2023, a **32.8% decrease** from 2022, primarily due to delays in delivery and acceptance of some awarded or signed projects by year-end[13](index=13&type=chunk) [Logistics Intelligent Robots and Solutions](index=5&type=section&id=2.2.2%20Logistics%20Intelligent%20Robots%20and%20Solutions) This business focuses on five major industries: new energy vehicles, tires, 3C electronics, batteries, and e-commerce, leveraging the UPilot operating system and ACU controller to launch the Wali series AGV/AMR and Chitu L4 autonomous logistics vehicle, providing full-stack logistics robot solutions; Chitu achieved a breakthrough from 0 to 1, and Wali T3000 entered mass production, with revenue for this business increasing by 47.9% due to enhanced product competitiveness, new product launches, repeat customer purchases, and expanded application scenarios - Focused on five major industries: new energy vehicle manufacturers, tire production factories, 3C electronic equipment factories, battery production lines, and e-commerce, launching key products including the Wali series of automated guided vehicles (AGV) and autonomous mobile robots (AMR), and the Chitu L4 autonomous logistics vehicle[15](index=15&type=chunk) - The Chitu L4 autonomous logistics vehicle was grandly released, winning the "New Strategy • Golden Stone Award" for innovative products, breaking the boundaries of indoor and outdoor logistics scenarios, and creating an integrated indoor-outdoor unmanned factory solution[15](index=15&type=chunk) - Revenue from logistics intelligent robots and solutions reached **RMB 389.7 million** in 2023, a **47.9% increase** from 2022, primarily due to enhanced product and solution competitiveness, continuous new product launches, increased repeat purchases from existing customers, growth in new customers, and expansion into new application scenarios[16](index=16&type=chunk) [Customized Intelligent Robots and Solutions for Other Industries](index=6&type=section&id=2.2.3%20Customized%20Intelligent%20Robots%20and%20Solutions%20for%20Other%20Industries) The company continued to provide customized intelligent robot solutions for schools, hospitals, shopping malls, and restaurants; the Cruzr series was developed for overseas 4S stores and vocational education, the Cadebot delivery robot was launched, and the Walker S series explored applications in new energy vehicle production lines; its elder care solution won the Edison Award for Technology Innovation, though revenue for this business decreased by 24.5% due to project delivery and acceptance delays - The Cruzr series was specifically developed for the overseas 4S store needs of a leading new energy vehicle company in Shenzhen, providing greeting, car knowledge Q&A, and product promotion services in multiple languages, and collaborated with a well-known traditional fuel vehicle manufacturer in China for customized R&D for 4S store services[18](index=18&type=chunk) - Developed the Cadebot delivery robot, which has now been launched into the market and is rapidly expanding in overseas markets; the Walker S series began exploring applications on new energy vehicle assembly lines, developing a specialized industrial humanoid robot currently being piloted on leading domestic new energy vehicle assembly lines[18](index=18&type=chunk) - The elder care solution and products won the Edison Award for Technology Innovation in the United States and have been successfully applied in multiple institutions, communities, and home care service scenarios[19](index=19&type=chunk) - Revenue from customized intelligent robots and solutions for other industries reached **RMB 62.2 million** in 2023, a **24.5% decrease** from 2022, primarily due to delays in delivery and acceptance of some awarded or signed projects by year-end[19](index=19&type=chunk) [Consumer-Grade Robots and Other Hardware](index=7&type=section&id=2.2.4%20Consumer-Grade%20Robots%20and%20Other%20Hardware) The company's first-generation smart litter box received positive reviews globally, and a complete secondary distribution system was established; the second-generation smart litter box and cyclone strong suction robot vacuum have entered mass production, and the boundary-free smart lawnmower project is progressing smoothly, with revenue for this business increasing by 91.5% due to continuous new consumer-grade smart product launches - The company's first-generation smart litter box received consistent praise from users and customers in China, the United States, Europe, South Korea, Turkey, Southeast Asia, and other regions; through a year of channel development, a complete secondary distribution system has been established, covering mainstream global markets[21](index=21&type=chunk) - The second-generation smart litter box and cyclone strong suction robot vacuum have both entered mass production, with the latter becoming a hot product on Kickstarter crowdfunding; the boundary-free smart lawnmower project is also progressing smoothly[21](index=21&type=chunk) - Revenue from consumer-grade robots and other hardware reached **RMB 253.6 million** in 2023, a **91.5% increase** from 2022, primarily driven by the continuous launch of new consumer-grade smart products[21](index=21&type=chunk) [Operations and Future Outlook](index=7&type=section&id=2.3%20Operations%20and%20Future%20Outlook) As of year-end 2023, the company had 2,013 employees, with increased compensation costs primarily due to share-based payments; capital expenditures focused on Shenzhen headquarters construction, and future strategy centers on humanoid robots and AI, targeting embodied intelligence breakthroughs and optimizing overseas expansion - As of December 31, 2023, the company had **2,013 full-time employees**, with total compensation costs of **RMB 1,006.8 million**, an increase of **RMB 144 million** from 2022, primarily due to an increase of **RMB 179.5 million** in share-based compensation expenses[22](index=22&type=chunk) - In 2023, the group's capital expenditure, mainly related to the construction of its Shenzhen headquarters, was **RMB 540.7 million**[25](index=25&type=chunk) - The company's core strategy is humanoid robots and artificial intelligence, aiming to bring humanoid robots into thousands of households, with future expectations of achieving breakthroughs in embodied intelligence technology[27](index=27&type=chunk) [Employees and Compensation Policy](index=7&type=section&id=2.3.1%20Employees%20and%20Compensation%20Policy) As of year-end 2023, the company had 2,013 full-time employees, with total compensation costs of RMB 1,006.8 million, a 16.7% year-over-year increase, mainly due to increased share-based payment expenses; the company attracts talent through diversified recruitment channels, offers competitive compensation and equity incentive plans, and focuses on employee training and cultural development Table: Compensation Costs | Metric | 2023 (RMB million) | 2022 (RMB million) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Total Compensation Costs | 1,006.8 | 862.8 | +16.7% | | Of which: Increase in Share-based Compensation Expenses | 179.5 | - | - | - The company has approved and adopted multiple equity incentive plans since 2015 to motivate, retain, and reward talent who contribute to the group's development[22](index=22&type=chunk) - The company invests in continuing education and regular and customized internal and external training courses to provide employees with training to enhance their professional knowledge and management skills[24](index=24&type=chunk) [Capital Expenditure, Right-of-Use Assets and Lease Liabilities](index=8&type=section&id=2.3.2%20Capital%20Expenditure%2C%20Right-of-Use%20Assets%20and%20Lease%20Liabilities) Capital expenditure in 2023 reached RMB 540.7 million, primarily for the construction of the Shenzhen headquarters; right-of-use assets and lease liabilities both increased, resulting in corresponding depreciation and interest expenses - In 2023, the group's capital expenditure, mainly related to the construction of its Shenzhen headquarters, was **RMB 540.7 million**[25](index=25&type=chunk) Table: Right-of-Use Assets and Lease Liabilities | Metric | December 31, 2023 (RMB million) | December 31, 2022 (RMB million) | | :--- | :--- | :--- | | Right-of-Use Assets | 65.7 | 55.2 | | Lease Liabilities | 77.0 | 66.1 | | Depreciation Expense for Right-of-Use Assets (2023) | 32.0 | - | | Interest Expense for Lease Liabilities (2023) | 2.8 | - | [Future Outlook](index=8&type=section&id=2.3.3%20Future%20Outlook) The company's future strategy centers on humanoid robots and artificial intelligence, continuously investing in humanoid robot software and hardware R&D, deeply integrating multi-modal large language models, and promoting industrial and service scenario applications; simultaneously, it will prioritize multi-modal perception and large model technology to build a robot brain, research embodied intelligence to enhance robot interaction, operation, and learning capabilities in the physical world, accelerate the development of new productive forces, and optimize its overseas layout - The company's core strategy is humanoid robots and artificial intelligence, aiming to bring humanoid robots into thousands of households, with future expectations of achieving breakthroughs in embodied intelligence technology[27](index=27&type=chunk) - Will focus on humanoid robot software and hardware R&D, enhancing motion capabilities, intelligence, and operational abilities, deeply integrating the latest artificial intelligence technologies such as multi-modal large language models[27](index=27&type=chunk) - Will prioritize multi-modal perception and large model technology as important strategies, researching large model robots to enhance multi-modal perception, data analysis, reasoning, decision-making, and multi-task generalization capabilities in dynamic scenarios, thereby building a robot brain[29](index=29&type=chunk) - Will research embodied intelligence technology to enhance robots' physical world interaction, operation, and learning capabilities, enabling them to autonomously perform complex and even unfamiliar tasks, and will further optimize its overseas layout to expand international markets[30](index=30&type=chunk) [Financial Review](index=10&type=section&id=III.%20Financial%20Review) The company experienced revenue growth driven by logistics and consumer segments, but profitability declined due to sales mix and increased expenses, while liquidity improved significantly from operating cash flow and IPO proceeds, with prudent financial policies in place [Revenue Overview and Structure](index=10&type=section&id=3.1%20Revenue%20Overview%20and%20Structure) Total revenue reached RMB 1,055.7 million in 2023, a 4.7% year-over-year increase, primarily from education, logistics, customized, and consumer robot solutions, with logistics and consumer segments significantly increasing their revenue share while education and customized businesses declined - The group's revenue in 2023 was **RMB 1,055.7 million**, an increase of **4.7%** from **RMB 1,008.3 million** in 2022[32](index=32&type=chunk) Table: Revenue by Business Segment | Business Segment | 2023 Revenue (RMB thousand) | 2023 % | 2022 Revenue (RMB thousand) | 2022 % | | :--- | :--- | :--- | :--- | :--- | | Educational Intelligent Robots and Solutions | 347,328 | 32.9% | 516,688 | 51.2% | | Logistics Intelligent Robots and Solutions | 389,724 | 36.9% | 263,437 | 26.1% | | Customized Intelligent Robots and Solutions for Other Industries | 62,238 | 5.9% | 82,418 | 8.2% | | Consumer-Grade Robots and Other Hardware | 253,583 | 24.0% | 132,448 | 13.1% | | Other | 2,825 | 0.3% | 13,281 | 1.3% | | **Total** | **1,055,698** | **100.0%** | **1,008,272** | **100.0%** | - Revenue from educational intelligent robots and solutions decreased by **32.8%**, primarily due to delays in delivery and acceptance of some awarded or signed projects by year-end[34](index=34&type=chunk) - Revenue from logistics intelligent robots and solutions increased by **47.9%**, primarily due to enhanced product and solution competitiveness, continuous new product launches, increased repeat purchases from existing customers, growth in new customers, and expansion into new application scenarios[34](index=34&type=chunk) - Revenue from consumer-grade robots and other hardware increased by **91.5%**, primarily driven by the continuous launch of new consumer-grade smart products[36](index=36&type=chunk) [Profitability Analysis](index=11&type=section&id=3.2%20Profitability%20Analysis) In 2023, the company's gross profit and margin declined due to product sales mix changes, while selling and R&D expenses significantly increased from share-based payments and promotional costs, leading to an expanded net loss - Gross profit decreased by **16.2%** from **RMB 397.2 million** in 2022 to **RMB 332.8 million** in 2023, with gross margins of **31.5%** and **39.4%** respectively[37](index=37&type=chunk) - Selling expenses increased by **RMB 132.8 million** from **RMB 373.3 million** in 2022 to **RMB 506.1 million** in 2023, with the percentage of the group's revenue increasing from **37.0%** to **47.9%**[39](index=39&type=chunk) - R&D expenses increased by **RMB 62.2 million** from **RMB 428.3 million** in 2022 to **RMB 490.5 million** in 2023, with the percentage of the group's revenue increasing from **42.5%** to **46.4%**[42](index=42&type=chunk) - Loss for the year expanded from **RMB 987.4 million** in 2022 to **RMB 1,264.6 million** in 2023[47](index=47&type=chunk) [Gross Profit and Gross Margin](index=11&type=section&id=3.2.1%20Gross%20Profit%20and%20Gross%20Margin) In 2023, gross profit decreased by 16.2% to RMB 332.8 million, and gross margin narrowed from 39.4% to 31.5%, primarily due to changes in product sales mix, with an increased proportion of lower-margin logistics intelligent robot solutions and a decreased proportion of higher-margin educational intelligent robot products and services Table: Gross Profit and Gross Margin | Metric | 2023 (RMB million) | 2022 (RMB million) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 332.8 | 397.2 | -16.2% | | Gross Margin | 31.5% | 39.4% | -7.9 percentage points | - The decrease in gross profit and gross margin was primarily due to changes in product sales mix, with an increased proportion of revenue from logistics intelligent robots and solutions, which have relatively lower gross margins, and a decreased proportion of revenue from the company's higher-margin educational intelligent robot products and services[37](index=37&type=chunk) [Other Income](index=11&type=section&id=3.2.2%20Other%20Income) In 2023, other income significantly increased by 189.4% year-over-year to RMB 27.2 million, mainly due to a lower base in 2022 resulting from partial VAT refunds Table: Other Income | Metric | 2023 (RMB million) | 2022 (RMB million) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Other Income | 27.2 | 9.4 | +189.4% | - The increase in other income was primarily due to a smaller amount of other income in 2022 resulting from partial VAT refunds[38](index=38&type=chunk) [Selling Expenses](index=11&type=section&id=3.2.3%20Selling%20Expenses) In 2023, selling expenses increased by 35.6% year-over-year to RMB 506.1 million, with its proportion of revenue rising from 37.0% to 47.9%, mainly due to an increase of RMB 91.8 million in share-based payment expenses and RMB 40.1 million in e-commerce promotion expenses Table: Selling Expenses | Metric | 2023 (RMB million) | 2022 (RMB million) | Year-over-Year Change | % of Revenue (2023) | % of Revenue (2022) | | :--- | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 506.1 | 373.3 | +35.6% | 47.9% | 37.0% | | Of which: Increase in Share-based Payments | 91.8 | - | - | - | - | | Of which: Increase in E-commerce Promotion Expenses | 40.1 | - | - | - | - | [Administrative Expenses](index=12&type=section&id=3.2.4%20Administrative%20Expenses) In 2023, administrative expenses decreased by 2.4% year-over-year to RMB 399.7 million, with its proportion of revenue falling from 40.6% to 37.9%, primarily because the RMB 92 million expense from subsidiary acquisition in 2022 did not recur in 2023, though this was partially offset by RMB 63.7 million in one-off listing expenses and an increase of RMB 25.8 million in share-based payment expenses in 2023 Table: Administrative Expenses | Metric | 2023 (RMB million) | 2022 (RMB million) | Year-over-Year Change | % of Revenue (2023) | % of Revenue (2022) | | :--- | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 399.7 | 409.7 | -2.4% | 37.9% | 40.6% | - The decrease in administrative expenses was primarily due to an expense of **RMB 92 million** incurred in 2022 for the acquisition of a subsidiary, which did not recur in 2023; however, this was partially offset by **RMB 63.7 million** in one-off listing expenses and an increase of **RMB 25.8 million** in share-based payment expenses incurred in 2023[41](index=41&type=chunk) [Research and Development Expenses](index=12&type=section&id=3.2.5%20Research%20and%20Development%20Expenses) In 2023, R&D expenses increased by 14.5% year-over-year to RMB 490.5 million, with its proportion of revenue rising from 42.5% to 46.4%, mainly due to an increase of RMB 60.7 million in share-based payment expenses Table: R&D Expenses | Metric | 2023 (RMB million) | 2022 (RMB million) | Year-over-Year Change | % of Revenue (2023) | % of Revenue (2022) | | :--- | :--- | :--- | :--- | :--- | :--- | | R&D Expenses | 490.5 | 428.3 | +14.5% | 46.4% | 42.5% | | Of which: Increase in Share-based Payment Expenses | 60.7 | - | - | - | - | [Credit Impairment Losses](index=12&type=section&id=3.2.6%20Credit%20Impairment%20Losses) In 2023, credit impairment losses significantly increased by 212.3% year-over-year to RMB 145.0 million, primarily due to delayed payments from individual government-related customers, leading to a provision for impairment based on prudence Table: Credit Impairment Losses | Metric | 2023 (RMB million) | 2022 (RMB million) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Credit Impairment Losses | 145.0 | 46.4 | +212.3% | - The increase in credit impairment losses was primarily due to delayed payments from individual government-related customers, leading to a provision for impairment in 2023 based on prudence[43](index=43&type=chunk) [Finance Costs and Income Tax Expense](index=12&type=section&id=3.2.7%20Finance%20Costs%20and%20Income%20Tax%20Expense) In 2023, finance costs increased to RMB 9.0 million, primarily due to the combined effect of decreased exchange gains and decreased interest expenses; income tax expense increased to RMB 37.4 million, mainly due to increased pre-tax income of taxable subsidiaries Table: Finance Costs and Income Tax Expense | Metric | 2023 (RMB million) | 2022 (RMB million) | | :--- | :--- | :--- | | Finance Costs | 9.0 | 0.2 | | Income Tax Expense | 37.4 | 16.5 | - The increase in finance costs was primarily due to the combined effect of a decrease of **RMB 19.9 million** in exchange gains and a decrease of **RMB 9.5 million** in interest expenses in 2023[44](index=44&type=chunk) - The increase in income tax expense was primarily due to an increase in the pre-tax income of taxable subsidiaries[45](index=45&type=chunk) [Loss for the Year](index=13&type=section&id=3.2.8%20Loss%20for%20the%20Year) Considering the aforementioned factors, the company's net loss for 2023 further expanded to RMB 1,264.6 million, an increase of 28.1% from RMB 987.4 million in 2022 Table: Loss for the Year | Metric | 2023 (RMB million) | 2022 (RMB million) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Loss for the Year | 1,264.6 | 987.4 | +28.1% | [Non-GAAP Measures](index=13&type=section&id=3.3%20Non-GAAP%20Measures) To supplement GAAP financial statements, the company uses "adjusted net loss for the year" and "adjusted EBITDA" as non-GAAP measures to better assess financial performance, reporting an adjusted net loss of RMB 817.0 million and adjusted EBITDA of RMB -515.5 million in 2023 - The company uses "adjusted net loss for the year (non-GAAP measure)" and "adjusted EBITDA (non-GAAP measure)" as additional financial measures to evaluate financial performance[48](index=48&type=chunk) Table: Non-GAAP Financial Measures | Metric | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | Net Loss for the Year | (1,264,590) | (987,368) | | Add: Share-based Compensation | 383,839 | 204,387 | | Add: Listing Expenses | 63,749 | 944 | | **Adjusted Net Loss for the Year** | **(817,002)** | **(782,037)** | | **Adjusted EBITDA** | **(515,454)** | **(537,674)** | [Liquidity and Capital Resources](index=14&type=section&id=3.4%20Liquidity%20and%20Capital%20Resources) Operating cash flow significantly increased to RMB 1,000.0 million in 2023, with cash and cash equivalents rising to RMB 520.9 million and external bank borrowings to RMB 1,453.5 million by year-end; the leverage ratio increased to 73.3%, current ratio improved to 1.5 times, and global offering proceeds further strengthened liquidity Table: Liquidity and Capital Resources | Metric | December 31, 2023 (RMB million) | December 31, 2022 (RMB million) | | :--- | :--- | :--- | | Operating Cash Flow | 1,000.0 | 538.7 | | Cash and Cash Equivalents | 520.9 | 145.4 | | External Bank Borrowings | 1,453.5 | 622.7 | | Leverage Ratio | 73.3% | 65.4% | | Current Ratio | 1.5 times | 1.0 times | - As of December 31, 2023, the group's liquidity remained robust, sufficient to meet its working capital needs, supported by its cash and bank balances, and the net proceeds of approximately **RMB 789.2 million** from the international placement of the global offering received in early 2024[53](index=53&type=chunk) [Asset Pledge and Financial Policy](index=15&type=section&id=3.5%20Asset%20Pledge%20and%20Financial%20Policy) As of year-end 2023, 100% equity of subsidiary Shenzhen UBTECH Robotics Industry Co., Ltd. was pledged as bank loan collateral; the company's business is primarily RMB-denominated, with most cash in RMB and some in HKD from IPO, and it adopts a prudent foreign exchange risk management policy without specific hedging - As of December 31, 2023, **100% equity** of the group's subsidiary, Shenzhen UBTECH Robotics Industry Co., Ltd., was pledged as collateral for the group's bank loans[54](index=54&type=chunk) - The group's business is primarily located in China, and most of its revenue is denominated in RMB; as of December 31, 2023, approximately **79.0%** of the group's bank balances and cash were denominated in RMB, and **17.4%** in HKD[55](index=55&type=chunk) - The group continues to adopt a prudent policy for foreign exchange risk management; for the year ended December 31, 2023, the group had not formulated a foreign currency hedging policy for foreign currency transactions, assets, and liabilities[55](index=55&type=chunk) [Financial Statements](index=16&type=section&id=IV.%20Financial%20Statements) The consolidated financial statements for 2023 reflect a net loss of RMB 1,264,590 thousand and a significant increase in total assets to RMB 4,765,635 thousand, with improved liquidity metrics [Consolidated Income Statement](index=16&type=section&id=4.1%20Consolidated%20Income%20Statement) UBTECH Robotics' 2023 consolidated income statement shows revenue of RMB 1,055,698 thousand, operating loss of RMB 1,227,636 thousand, net loss of RMB 1,264,590 thousand, and net loss attributable to parent company shareholders of RMB 1,234,048 thousand, with basic and diluted loss per share at RMB 3.05 Table: Consolidated Income Statement | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | Operating Revenue | 1,055,698 | 1,008,272 | | Operating Costs | (722,880) | (611,104) | | Selling Expenses | (506,113) | (373,344) | | Administrative Expenses | (399,706) | (409,652) | | R&D Expenses | (490,502) | (428,280) | | Credit Impairment Losses | (144,995) | (46,386) | | Net Loss | (1,264,590) | (987,368) | | Net Loss Attributable to Parent Company Shareholders | (1,234,048) | (974,809) | | Basic and Diluted Loss Per Share (RMB) | (3.05) | (2.50) | [Consolidated Balance Sheet](index=18&type=section&id=4.2%20Consolidated%20Balance%20Sheet) As of December 31, 2023, UBTECH Robotics' consolidated balance sheet reported total assets of RMB 4,765,635 thousand, a significant increase from 2022, with total current assets of RMB 2,917,237 thousand, total current liabilities of RMB 1,952,105 thousand, and total equity of RMB 2,088,883 thousand Table: Consolidated Balance Sheet | Item | December 31, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Current Assets | 2,917,237 | 1,385,159 | | Total Non-Current Assets | 1,848,398 | 1,402,843 | | **Total Assets** | **4,765,635** | **2,788,002** | | **Liabilities and Equity** | | | | Total Current Liabilities | 1,952,105 | 1,364,495 | | Total Non-Current Liabilities | 724,647 | 369,583 | | **Total Liabilities** | **2,676,752** | **1,734,078** | | Total Equity Attributable to Parent Company Shareholders | 1,960,413 | 961,279 | | Non-Controlling Interests | 128,470 | 92,645 | | **Total Equity** | **2,088,883** | **1,053,924** | [Notes to Financial Statements](index=20&type=section&id=V.%20Notes%20to%20Financial%20Statements) The notes detail the company's establishment, accounting policies, segment information, revenue breakdown, expense categories, tax rates, per-share loss, and significant changes in receivables, borrowings, share capital, and dividend policy [Company Overview](index=20&type=section&id=5.1%20Company%20Overview) Shenzhen UBTECH Robotics Corp. Ltd. was established in China on March 31, 2012, with its H-shares listed on the HKEX main board on December 29, 2023; Mr. Zhou Jian is the ultimate controlling shareholder with approximately 51.17% voting power, and the company primarily engages in robot R&D, design, production, sales, and related services - Shenzhen UBTECH Robotics Corp. Ltd. was established in the People's Republic of China on March 31, 2012, and its H-shares were listed and traded on the Main Board of The Stock Exchange of Hong Kong Limited on December 29, 2023[63](index=63&type=chunk)[64](index=64&type=chunk) - Mr. Zhou Jian effectively controls approximately **51.17%** of the company's voting rights and is considered the ultimate controlling shareholder of the company[63](index=63&type=chunk) - The company and its subsidiaries are primarily engaged in the research and development, design, production, and sales of robots, as well as providing related services and solutions[63](index=63&type=chunk) [Basis of Preparation of Financial Statements](index=20&type=section&id=5.2%20Basis%20of%20Preparation%20of%20Financial%20Statements) Financial statements are prepared in accordance with Chinese Enterprise Accounting Standards on a going concern basis, with specific accounting policies and estimates applied to receivables, inventory, fixed assets, intangible assets, right-of-use assets, and revenue recognition - These financial statements are prepared in accordance with the "Enterprise Accounting Standards – Basic Standards" and various specific accounting standards and related regulations issued by the Ministry of Finance on February 15, 2006, and thereafter[65](index=65&type=chunk) - These financial statements are prepared on a going concern basis[66](index=66&type=chunk) - The group determines specific accounting policies and accounting estimates based on its production and operation characteristics, mainly reflected in the measurement of expected credit losses for accounts receivable, inventory valuation methods, depreciation of fixed assets, amortization of intangible assets and right-of-use assets, and revenue recognition and measurement[66](index=66&type=chunk) [Segment Information](index=20&type=section&id=5.3%20Segment%20Information) Management considers the group to have only one operating segment, thus no segment information is disclosed, with over 90% of non-current assets located in mainland China - The group's management believes that the group has only one operating segment, and therefore, the group has not disclosed segment information[67](index=67&type=chunk) - For the year 2023, over **90%** of the group's non-current assets (excluding financial instruments and deferred tax assets) were located in mainland China[68](index=68&type=chunk) [Changes in Accounting Policies](index=21&type=section&id=5.4%20Changes%20in%20Accounting%20Policies) The accounting treatment for deferred income tax related to assets and liabilities arising from a single transaction, as per Interpretation No. 16 of the Chinese Enterprise Accounting Standards, had no significant impact on the group's financial statements - The accounting treatment provisions in Interpretation No. 16 of the Chinese Enterprise Accounting Standards, issued by the Ministry of Finance in 2022, regarding deferred income tax related to assets and liabilities arising from a single transaction not applying the initial recognition exemption, had no significant impact on the financial statements of the group and the company[70](index=70&type=chunk) [Operating Revenue and Operating Costs](index=21&type=section&id=5.5%20Operating%20Revenue%20and%20Operating%20Costs) Total operating revenue in 2023 was RMB 1,055,698 thousand, comprising RMB 964,273 thousand from goods sales and RMB 91,425 thousand from services, with over 90% of revenue from mainland China and two customers contributing 40% of total revenue Table: Operating Revenue and Operating Costs | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | Main Business Revenue (Sales of Goods) | 964,273 | 910,778 | | Main Business Revenue (Provision of Services) | 91,425 | 97,494 | | **Total Operating Revenue** | **1,055,698** | **1,008,272** | | Operating Costs | 722,880 | 611,104 | - In 2023, two customers contributed over **10%** each to the group's operating revenue, with a combined total of **RMB 422,822,000**, accounting for **40%** of the group's operating revenue[71](index=71&type=chunk) [Expenses by Nature](index=22&type=section&id=5.6%20Expenses%20by%20Nature) Expenses by nature in 2023 included RMB 654,352 thousand for raw materials, RMB 622,970 thousand for staff compensation, RMB 383,839 thousand for share-based payments, and significantly increased listing fees of RMB 63,749 thousand Table: Expenses by Nature | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | Raw Materials and Low-Value Consumables Consumed | 654,352 | 347,271 | | Staff Compensation Expenses | 622,970 | 658,418 | | Share-based Payments | 383,839 | 204,387 | | Advertising and Marketing Expenses | 90,932 | 50,784 | | Depreciation and Amortization | 85,945 | 90,043 | | Listing Expenses | 63,749 | 944 | [Income Tax Expense](index=22&type=section&id=5.7%20Income%20Tax%20Expense) Income tax expense in 2023 was RMB 37,361 thousand, with the group's statutory tax rate in mainland China at 25%, some companies enjoying preferential rates of 5% and 15%, Hong Kong subsidiaries at 16.5%, and North American subsidiaries at 29.84% Table: Income Tax Expense | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax Calculated According to Tax Laws and Regulations | 37,361 | 16,509 | - The group's statutory tax rate in China is **25%**, with some companies applying preferential tax rates of **5%** and **15%**; the company's subsidiary established in Hong Kong applies an income tax rate of **16.5%**, and its subsidiary established in North America applies an income tax rate of **29.84%**[73](index=73&type=chunk) [Loss Per Share](index=23&type=section&id=5.8%20Loss%20Per%20Share) Basic loss per share for 2023 expanded to RMB 3.05 from RMB 2.50 in 2022, with diluted loss per share being the same as basic loss per share due to the absence of dilutive potential ordinary shares Table: Loss Per Share | Metric | 2023 (RMB) | 2022 (RMB) | | :--- | :--- | :--- | | Consolidated Net Loss Attributable to Ordinary Shareholders of the Parent Company | 1,234,048 | 974,809 | | Weighted Average Number of Ordinary Shares Outstanding (shares) | 405,149 | 389,194 | | **Basic Loss Per Share** | **3.05** | **2.50** | - For the years 2023 and 2022, diluted loss per share was the same as basic loss per share because the group had no dilutive potential ordinary shares[74](index=74&type=chunk) [Accounts Receivable](index=23&type=section&id=5.9%20Accounts%20Receivable) As of December 31, 2023, total accounts receivable were RMB 1,068,734 thousand, with a bad debt provision of RMB 235,061 thousand, resulting in a net amount of RMB 833,673 thousand; the aging structure shows the highest proportion within six months, but accounts receivable over one year also significantly increased Table: Accounts Receivable | Item | December 31, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Accounts Receivable | 1,068,734 | 739,284 | | Less: Provision for Bad Debts | (235,061) | (89,629) | | **Net Amount** | **833,673** | **649,655** | Table: Accounts Receivable Aging Analysis | Aging | December 31, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Within Six Months | 618,188 | 469,282 | | Six Months to One Year | 67,318 | 119,912 | | One to Two Years | 291,208 | 89,978 | | Two to Three Years | 59,991 | 11,916 | | Over Three Years | 32,029 | 48,196 | [Other Receivables](index=24&type=section&id=5.10%20Other%20Receivables) As of December 31, 2023, net other receivables significantly increased to RMB 869,456 thousand from 2022, primarily due to RMB 828,142 thousand in proceeds from the listing offering Table: Other Receivables | Item | December 31, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Receivables from Listing Offering Proceeds | 828,142 | — | | Deposits and Guarantees | 36,134 | 48,781 | | Total Other Receivables | 886,108 | 67,530 | | Less: Provision for Bad Debts | (16,652) | (17,089) | | **Net Amount** | **869,456** | **50,441** | - Receivables from listing offering proceeds amounted to **RMB 828,142,000**, which were transferred to the company's fundraising account in Hong Kong on January 3, 2024[79](index=79&type=chunk) [Short-Term Borrowings](index=24&type=section&id=5.11%20Short-Term%20Borrowings) As of December 31, 2023, total short-term borrowings significantly increased to RMB 777,223 thousand from 2022, with guaranteed borrowings being the largest component, secured by parent and other subsidiary guarantees, and some loans collateralized by land use rights, subsidiary equity, and patents Table: Short-Term Borrowings by Type | Type | December 31, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Mortgaged, Pledged, and Guaranteed Borrowings | 72,146 | 30,028 | | Pledged Borrowings | 2,000 | 58,000 | | Guaranteed Borrowings | 643,063 | 236,440 | | Credit Borrowings | 60,014 | — | | **Total** | **777,223** | **324,468** | - Bank mortgaged, pledged, and guaranteed borrowings are secured by certain land use right assets of the group as collateral, **100% equity** of subsidiary Shenzhen UBTECH Robotics Industry Co., Ltd., and **16 self-developed patents** of the group as pledges, and guaranteed by the company and Mr. Zhou Jian[80](index=80&type=chunk) - Bank guaranteed borrowings are loans obtained by subsidiaries within the group with guarantees provided by the parent company and other subsidiaries[81](index=81&type=chunk) [Accounts Payable](index=25&type=section&id=5.12%20Accounts%20Payable) As of December 31, 2023, total accounts payable were RMB 412,534 thousand, mainly comprising material and outsourced labor payments, with RMB 64,312 thousand over one year primarily for outsourced projects Table: Accounts Payable | Item | December 31, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Payables for Materials | 260,408 | 156,804 | | Payables for Outsourced Labor | 148,351 | 129,083 | | **Total** | **412,534** | **305,406** | - As of December 31, 2023, accounts payable overdue for more than one year amounted to **RMB 64,312,000**, primarily for outsourced project payments, as some payments require final settlement after project acceptance due to longer project durations[82](index=82&type=chunk) [Long-Term Borrowings](index=25&type=section&id=5.13%20Long-Term%20Borrowings) As of December 31, 2023, net long-term borrowings significantly increased to RMB 648,989 thousand from 2022, secured by land use rights, subsidiary equity, and patents, guaranteed by the company and Mr. Zhou Jian, with principal repayable by June 18, 2031 Table: Long-Term Borrowings | Item | December 31, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Mortgaged, Pledged, and Guaranteed Borrowings | 676,311 | 298,194 | | Less: Long-Term Borrowings Due Within One Year | (27,322) | (2,303) | | **Net Amount** | **648,989** | **295,891** | - Bank mortgaged, pledged, and guaranteed borrowings are secured by certain land use right assets of the group as collateral, **100% equity** of Shenzhen UBTECH Robotics Industry Co., Ltd., and **16 self-developed patents** of the group as pledges, and guaranteed by the company and Mr. Zhou Jian[85](index=85&type=chunk) - The principal is to be fully repaid by **June 18, 2031**[85](index=85&type=chunk) [Share Capital](index=26&type=section&id=5.14%20Share%20Capital) As of December 31, 2023, the company's share capital was RMB 417,851 thousand; in 2023, new shares were issued through private placement and H-share listing, raising capital recorded in share capital and share premium Table: Share Capital | Item | As of December 31, 2022 (RMB thousand) | New Shares Issued This Year (RMB thousand) | As of December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | :--- | | Share Capital | 396,173 | 21,678 | 417,851 | - In 2023, the company privately placed a total of **10,395,538 shares** to investors at a price of **RMB 78.88 per share**, raising a total of **RMB 820,000,000**[86](index=86&type=chunk) - On December 29, 2023, the company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited, and a total of **11,282,000 shares** were publicly offered at a price of **HKD 90.00 per share**, raising a total of **HKD 1,015,380,000**[86](index=86&type=chunk) [Dividends](index=26&type=section&id=5.15%20Dividends) The Board does not recommend distributing dividends for the 2023 financial year - On March 28, 2024, the company's Board of Directors did not recommend distributing dividends for the 2023 financial year[87](index=87&type=chunk) [Corporate Governance and Other Information](index=27&type=section&id=VI.%20Corporate%20Governance%20and%20Other%20Information) The company adheres to corporate governance standards, including a securities trading code for directors, and has not engaged in listed securities transactions; no significant legal proceedings were reported, and global offering proceeds remain largely unused, with post-reporting events including partial exercise of over-allotment option and shareholder approvals for key financial and governance matters [Compliance with Corporate Governance Code](index=27&type=section&id=6.1%20Compliance%20with%20Corporate%20Governance%20Code) Following its H-share listing on December 29, 2023, the company adopted the Corporate Governance Code, complying with all applicable provisions as of December 31, 2023, except for the combined roles of Chairman and CEO, which the Board deems in the company's and shareholders' best interests - Following the listing of the company's H-shares on December 29, 2023, the company adopted corporate governance practices based on the principles and code provisions set out in the Corporate Governance Code as its own corporate governance practice code[89](index=89&type=chunk) - For the period ended December 31, 2023, the company complied with all applicable code provisions contained in the Corporate Governance Code, except for a deviation from code provision C.2.1 (the roles of chairman and chief executive should be separate and should not be performed by the same individual)[89](index=89&type=chunk)[90](index=90&type=chunk) - The Board believes that Mr. Zhou Jian concurrently serving as Chief Executive Officer and Chairman of the Board is most appropriate, and the current arrangement is beneficial to the group's management and is in the overall best interests of the company and its shareholders[90](index=90&type=chunk) [Standard Code for Securities Transactions by Directors](index=28&type=section&id=6.2%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) Post-listing, the company adopted the Standard Securities Dealing Code for Directors of Listed Issuers, with all directors and supervisors confirming compliance during the reporting period, and no employee violations found - The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as its code of conduct for securities transactions by directors, supervisors, and employees of the group[92](index=92&type=chunk) - The company has made specific inquiries to all directors and supervisors, and the directors and supervisors have confirmed that they have complied with the required standards set out in the Standard Code during the relevant period[92](index=92&type=chunk) [Listed Securities Transactions](index=28&type=section&id=6.3%20Listed%20Securities%20Transactions) From the listing date to the announcement date, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - From the listing date to the date of this announcement, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[94](index=94&type=chunk) [Significant Legal Proceedings](index=28&type=section&id=6.4%20Significant%20Legal%20Proceedings) For the year ended December 31, 2023, the group was not involved in any significant legal proceedings - For the year ended December 31, 2023, the group was not involved in any significant legal proceedings[95](index=95&type=chunk) [Proceeds from Global Offering and Use](index=28&type=section&id=6.5%20Proceeds%20from%20Global%20Offering%20and%20Use) The company's global offering raised net proceeds of approximately HKD 905.9 million (excluding partial exercise of over-allotment option), all of which remained unused as of December 31, 2023; detailed fund utilization plans were disclosed, and additional proceeds from the over-allotment option were resolved for working capital and general corporate purposes - After deducting underwriting commissions and all related expenses, the net proceeds received by the company from the global offering amounted to approximately **HKD 905.9 million**[96](index=96&type=chunk) Table: Global Offering Net Proceeds and Expected Use | Use | Approximate Percentage of Total Net Proceeds | Global Offering Net Proceeds (HKD million) | Expected Time for Full Utilization of Remaining Net Proceeds | | :--- | :--- | :--- | :--- | | Further enhance our R&D capabilities to strengthen our core technologies, products, and service offerings | 47% | 425.8 | Before end of 2026 | | Repay bank loans | 19.4% | 175.7 | Before end of 2024 | | Strengthen R&D infrastructure to enhance R&D capabilities and efficiency | 7.9% | 71.6 | Before end of 2024 | | Enhance brand awareness and market penetration | 9.5% | 86.1 | Before end of 2025 | | Further optimize our management and operational efficiency | 6.2% | 56.2 | Before end of 2026 | | General working capital | 10.0% | 90.6 | Before end of 2024 | | **Total** | **100%** | **905.9** | | - From the listing date until December 31, 2023, all net proceeds from the global offering remained unused[100](index=100&type=chunk) - The Board resolved to change the use of the additional net proceeds to working capital and other general corporate purposes[102](index=102&type=chunk) [Audit Committee and Auditors](index=30&type=section&id=6.6%20Audit%20Committee%20and%20Auditors) The Audit Committee, comprising three independent non-executive directors, reviewed the 2023 consolidated annual results, deeming them compliant with applicable accounting standards, laws, and regulations; PwC Zhongtian CPAs acknowledged the financial data in the announcement but did not express an assurance opinion - The Audit Committee currently comprises three independent non-executive directors, with Mr. Xiong Chuxiong serving as the Chairman of the Audit Committee[103](index=103&type=chunk) - The Audit Committee has reviewed the group's consolidated annual results for the year ended December 31, 2023, with the company's management and auditors, and believes they comply with applicable accounting standards, laws, and regulations[103](index=103&type=chunk) - The consolidated balance sheet, consolidated income statement, and related notes for the group for the year ended December 31, 2023, as contained in this annual results announcement, have been agreed upon by the group's auditors, PricewaterhouseCoopers Zhongtian LLP, but the work performed does not constitute an audit, and therefore no assurance opinion will be expressed[104](index=104&type=chunk) [Events After Reporting Period](index=31&type=section&id=6.7%20Events%20After%20Reporting%20Period) Subsequent to the reporting period, the over-allotment option was partially exercised, yielding approximately HKD 25.3 million in additional net proceeds; the Board resolved to propose adopting Chinese Enterprise Accounting Standards, amending articles, appointing auditors, providing guarantees, and applying for bank credit, all approved by shareholders - The over-allotment option was partially exercised on January 19, 2024, and the company received approximately **HKD 25.3 million** in additional net proceeds on January 24, 2024, after deducting partial listing fees and underwriting commissions from the partial exercise of the over-allotment option[106](index=106&type=chunk) - The Board resolved to propose adopting Chinese Enterprise Accounting Standards, amending the company's articles of association, appointing auditors, the company providing guarantee arrangements to certain subsidiaries, and the company applying for bank credit arrangements, all of which were approved by shareholders at the first extraordinary general meeting held on February 8, 2024[106](index=106&type=chunk) [Public Shareholding and Final Dividend](index=31&type=section&id=6.8%20Public%20Shareholding%20and%20Final%20Dividend) Based on public information, public shareholders held no less than 25% of issued shares from the listing date to the announcement date, meeting listing rule requirements; the Board does not recommend a final dividend for 2023 - Based on publicly available information and to the best knowledge of the directors, public shareholders held no less than **25%** of the issued shares from the listing date until the date of this announcement, complying with the Listing Rules requirements[108](index=108&type=chunk) - The Board does not recommend the payment of any final dividend for the year ended December 31, 2023[109](index=109&type=chunk) [Announcement Publication](index=31&type=section&id=6.9%20Announcement%20Publication) This annual results announcement has been published on the HKEX and company websites; the annual report containing all information required by listing rules will be dispatched to shareholders and published in due course - This announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.ubtrobot.com)[110](index=110&type=chunk) - The company's annual report for the year ended December 31, 2023, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned HKEX and company websites in due course[112](index=112&type=chunk)