Share Incentive Plans - As of December 31, 2022, the total number of shares available for issuance under the share incentive plans is 109,200,539 shares, which includes 16,012,000 shares (approximately 0.52% of the issued share capital as of the 2022 annual report date) under the first share incentive plan, 17,512,539 shares (approximately 0.57%) under the second and third share incentive plans, and 75,676,000 shares (approximately 2.47%) under the fourth share incentive plan[7]. - The company has not granted any rewards under the first group incentive plan as of the date of the 2022 annual report[2]. - No payment is required upon acceptance of the rewards granted under the first, second, and third share incentive plans[4]. - The company has not yet redeemed any rewards through the general or special authorization to subscribe for new shares[2]. Board Discretion and Governance - The board has the discretion to determine the vesting period and conditions for the reward shares under the first share incentive plan[3]. - The board may determine the purchase price for the reward shares at its discretion, considering the company's business and financial performance[6]. - The board may specify other terms and conditions related to the acceptance of rewards in the notification to selected employees[5]. - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[8]. Accuracy and Impact of Reports - The company confirms that all information in the 2022 annual report is true and accurate[8]. - The announcement does not affect any information contained in the 2022 annual report[8].

Financial Performance - Total revenue for 2022 reached RMB 31,059.4 million, representing a year-on-year growth of 15.2%[12] - The gross profit for 2022 was RMB 5,614.0 million, with a gross margin of approximately 18.1%[12] - The net profit attributable to the owners of the company for 2022 was RMB 2,161.1 million, an increase of 58.0% compared to 2021[12] - The total assets as of December 31, 2022, amounted to RMB 24,952.7 million, up from RMB 19,407.8 million in 2021[13] - The total liabilities for 2022 were RMB 18,310.1 million, compared to RMB 14,895.4 million in 2021[13] - In 2022, the company's revenue increased by approximately 15.2% to RMB 31,059.4 million, up from RMB 26,967.5 million in 2021[19] - The gross profit increased by approximately 36.9% to RMB 5,614.0 million in 2022, compared to RMB 4,101.5 million in 2021[19] - The net profit for the year increased by approximately 59.7% from RMB 1,366.6 million in 2021 to RMB 2,183.0 million in 2022, reflecting the cumulative impact of the aforementioned factors[23] Production and Capacity - The company’s production capacity for electric two-wheelers is approximately 20 million units per year, supported by over 11,000 employees[8] - The company launched 15 new models of electric scooters and 34 new electric bicycles with enhanced designs and smart features in 2022[16] - The company expanded its distribution network to 4,041 distributors in China by December 31, 2022, up from 3,353 in 2021, with over 32,000 sales points[16] - The total segment revenue for the battery division was RMB 3,870.0 million in 2022, with no corresponding revenue reported for 2021 due to the acquisition of Huayu[22] Research and Development - The company has a strong R&D team in Wuxi, employing about 980 professionals with various product design backgrounds[8] - Research and development expenses rose by about 31.1% from RMB 843.7 million in 2021 to RMB 1,105.8 million in 2022, primarily due to new product and technology development related to batteries and chargers[23] - The company plans to continue investing in R&D to ensure it remains at the forefront of technological advancements in the electric two-wheeler industry[16] - The total number of patents held increased to 1,890 in 2022 from 1,350 in 2021, marking a growth of about 40%[76] - The number of invention patents held rose significantly to 109 in 2022 from 29 in 2021, indicating an increase of approximately 275.9%[76] Market and Sales - The average selling price of electric scooters rose from RMB 1,662 in 2021 to RMB 1,816 in 2022, while the average selling price of electric bicycles increased from RMB 1,265 to RMB 1,429 during the same period[19] - Total sales volume of electric scooters decreased by approximately 18.0% from about 6,142,000 units in 2021 to about 5,034,000 units in 2022, while electric bicycle sales increased by approximately 16.3% from about 7,721,000 units to about 8,976,000 units[21] - The company exports its products to over 80 countries through its international distribution network[9] Environmental, Social, and Governance (ESG) - Yadea identified 14 "very important" ESG issues through stakeholder engagement, with over 200 participants involved in the assessment[41] - The group received multiple international ESG awards during the reporting period, highlighting its leadership in sustainable practices[42] - Yadea was recognized as a "Top Ten Green Brand for Carbon Neutrality" and a "Model Enterprise for Carbon Neutrality" in 2022[43] - The company initiated a carbon footprint assessment and developed a preliminary carbon reduction strategy in collaboration with external consultants[41] - The company is committed to enhancing its ESG governance framework and integrating ESG objectives into its overall strategic development[45] Employee and Labor Practices - The total number of employees in the group is 11,825, with a turnover rate of 6.10% during the reporting period[114] - The group strictly adheres to labor standards, ensuring no illegal employment practices, including forced labor and child labor[109] - Employee benefits include meal subsidies, high-temperature allowances, and access to facilities such as gyms and canteens[115] - The group has implemented a zero-discrimination policy, promoting equal opportunities regardless of race, age, gender, and other factors[111] - The company emphasizes the importance of employee development and training as a critical social issue[69] Safety and Compliance - The company emphasizes compliance with laws and regulations to protect its corporate reputation and prevent legal violations[49] - The company has established a policy in place to provide a safe working environment and prevent occupational hazards[169] - The company has implemented strict safety protocols, including mandatory safety training for all new employees before they can start work[120] - The company has a zero-tolerance policy towards corruption and has implemented strict anti-corruption measures, including mandatory training for all employees[104] Community Engagement - The company committed RMB 30 million for pandemic relief efforts, including the donation of 10,000 electric vehicles to frontline workers[154] - The company actively supports rural revitalization efforts, including donations for local education and employment initiatives[156] - Yadea Group Holdings Limited launched the "Love Charging Station" initiative, providing free energy drinks to outdoor workers, and donated over RMB 500,000 to various foundations for social welfare[157] Corporate Governance - The board of directors consists of eight members, including three executive directors, one non-executive director, and four independent non-executive directors[181] - The company has adopted a high standard of corporate governance, ensuring compliance with the corporate governance code and maintaining shareholder rights[177] - The board aims to achieve gender diversity with a target of having three female directors by December 31, 2023[194] - The company has established procedures to ensure that all directors are informed of the annual general meeting schedule and receive timely notifications for board meetings[188]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company achieved significant financial growth in 2022, with revenue increasing by 15.2% to RMB 31.06 billion and profit attributable to owners surging by 57.8% to RMB 2.16 billion Key Financial Indicators | Indicator | 2022 | Year-on-Year Growth | | :--- | :--- | :--- | | Revenue | RMB 31,059.4 million | +15.2% | | Gross Profit | RMB 5,614.0 million | +36.9% | | Profit Attributable to Owners | RMB 2,161.1 million | +57.8% | | Basic Earnings Per Share | RMB 74.0 cents | +54.8% | | Proposed Final Dividend | HK 40.0 cents per share | - | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial performance and position, including statements of profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the year ended December 31, 2022, the Group's revenue grew by 15.2% to RMB 31.06 billion, with gross profit increasing by 36.9% to RMB 5.61 billion, leading to a 57.8% rise in profit attributable to owners Consolidated Statement of Profit or Loss (RMB thousands) | Item (RMB thousands) | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 31,059,443 | 26,967,532 | +15.2% | | Gross Profit | 5,614,011 | 4,101,484 | +36.9% | | Operating Profit | 2,707,591 | 1,537,297 | +76.1% | | Profit Before Income Tax | 2,615,267 | 1,506,985 | +73.5% | | Profit for the Year | 2,183,000 | 1,366,643 | +59.7% | | Profit Attributable to Owners of the Company | 2,161,094 | 1,369,495 | +57.8% | | Basic Earnings Per Share (RMB cents) | 74.0 | 47.8 | +54.8% | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) In 2022, the Group's total comprehensive income for the year reached RMB 2.24 billion, a 65.0% increase, primarily driven by a positive shift in other comprehensive income due to foreign exchange differences - Total comprehensive income for the year was **RMB 2,235,948 thousand**, an increase of approximately **65.0%** from RMB 1,355,764 thousand in 2021[4](index=4&type=chunk) - Other comprehensive income shifted from a **loss of RMB 10,879 thousand in 2021** to a **gain of RMB 52,948 thousand in 2022**, primarily due to exchange differences on translation of functional currency to presentation currency, resulting in a gain of RMB 66,555 thousand[4](index=4&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2022, total assets increased by 28.6% to RMB 24.95 billion, total liabilities grew by 22.9% to RMB 18.31 billion, and net assets surged by 47.2% to RMB 6.64 billion Consolidated Statement of Financial Position (RMB thousands) | Item (RMB thousands) | December 31, 2022 | December 31, 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Non-Current Assets | 7,557,671 | 4,393,326 | +72.0% | | Total Current Assets | 17,395,015 | 15,014,467 | +15.9% | | **Total Assets** | **24,952,686** | **19,407,793** | **+28.6%** | | **Liabilities and Equity** | | | | | Total Current Liabilities | 17,520,386 | 14,327,877 | +22.3% | | Total Non-Current Liabilities | 789,706 | 567,517 | +39.1% | | **Total Liabilities** | **18,310,092** | **14,895,394** | **+22.9%** | | **Net Assets** | **6,642,594** | **4,512,399** | **+47.2%** | - The Group reported **net current liabilities of RMB 125 million** at the end of 2022, compared to net current assets of RMB 687 million at the end of 2021[54](index=54&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and disclosures regarding the accounting policies, revenue breakdown, expenses, and key balance sheet items [General Information and Accounting Policies](index=6&type=section&id=General%20Information%20and%20Accounting%20Policies) Yadea Group Holdings Ltd. is an investment holding company listed in Hong Kong, primarily engaged in the development, manufacturing, and sale of electric vehicles and related accessories in China - The Group is primarily engaged in the development, manufacturing, and sale of electric two-wheeled vehicles, batteries, and related accessories in China[7](index=7&type=chunk) - In 2022, the Group adopted several new and revised Hong Kong Financial Reporting Standards, which had no significant impact on prior period amounts[8](index=8&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) In 2022, total revenue was RMB 31.06 billion, with electric bicycles, electric scooters, and batteries/chargers being the primary product categories, and the Group now reports two segments after the Huayu acquisition Revenue by Product Type (RMB thousands) | Product Type (RMB thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Electric Bicycles | 12,827,456 | 9,767,681 | | Electric Scooters | 9,145,187 | 10,208,564 | | Batteries and Chargers | 8,397,775 | 6,583,763 | | Electric Two-Wheeled Vehicle Components | 689,025 | 407,524 | | **Total** | **31,059,443** | **26,967,532** | - Following the acquisition of Huayu, the Group introduced a new "Batteries" business segment, with the "Electric Two-Wheeled Vehicles and Related Accessories" segment generating **RMB 5.56 billion in gross profit** and the "Batteries" segment generating **RMB 330 million in gross profit** in 2022[13](index=13&type=chunk)[14](index=14&type=chunk) [Expenses and Other Income](index=9&type=section&id=Expenses%20and%20Other%20Income) Total expenses, including cost of sales, selling, administrative, and R&D, amounted to RMB 28.81 billion in 2022, while other income and gains increased by 19.3% to RMB 450 million Expenses by Nature (RMB thousands) | Expense Nature (RMB thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Raw materials and consumables used | 24,376,677 | 22,226,264 | | Employee benefit expenses | 2,095,911 | 1,518,681 | | Advertising expenses | 403,067 | 364,720 | | Freight charges | 303,331 | 299,155 | - Other income and net gains increased from **RMB 380 million in 2021 to RMB 450 million in 2022**, primarily driven by bank interest income (RMB 180 million) and government grants (RMB 170 million)[16](index=16&type=chunk) - Finance costs significantly increased from **RMB 15.28 million in 2021 to RMB 59.40 million in 2022**, mainly due to interest expenses on new borrowings[19](index=19&type=chunk) [Dividends and Earnings Per Share (EPS)](index=10&type=section&id=Dividends%20and%20Earnings%20Per%20Share%20(EPS)) The Board proposed a final dividend of HK 40.0 cents per share for 2022, while basic earnings per share increased by 54.8% to RMB 74.0 cents - The Board recommended a final dividend of **HK 40.0 cents per ordinary share** for 2022, totaling approximately HKD 1.18 billion (equivalent to RMB 1.03 billion)[20](index=20&type=chunk) Earnings Per Share | EPS | 2022 | 2021 | | :--- | :--- | :--- | | Basic (RMB cents/share) | 74.0 | 47.8 | | Diluted (RMB cents/share) | 72.9 | 47.0 | [Key Balance Sheet Items](index=12&type=section&id=Key%20Balance%20Sheet%20Items) As of year-end 2022, inventory increased by 22.1% to RMB 1.46 billion due to new work-in-progress from Huayu, while trade receivables remained stable at RMB 390 million, and trade and bills payables rose by 6.5% to RMB 13.59 billion - Inventory increased from **RMB 1.19 billion at the end of 2021 to RMB 1.46 billion at the end of 2022**, with work-in-progress significantly rising from RMB 12.28 million to RMB 346 million[24](index=24&type=chunk) - The vast majority of trade receivables (approximately **97.5%**) were aged within six months, indicating low credit risk[26](index=26&type=chunk) - Total trade and bills payables reached **RMB 13.59 billion**, with bills payable accounting for RMB 9.81 billion, serving as a significant source of working capital for the Group[27](index=27&type=chunk) [Business Combination (Acquisition of Huayu)](index=14&type=section&id=Business%20Combination%20(Acquisition%20of%20Huayu)) In January 2022, the Group acquired a 70% equity interest in Huayu (Jieshou Nandu Huayu Power Co., Ltd. and Zhejiang Changxing Nandu Power Co., Ltd.) for a total cash consideration of RMB 311.5 million, recognizing goodwill of RMB 683.86 million from expected synergies - The Group acquired a **70% equity interest** in battery manufacturer Huayu for a cash consideration of **RMB 311.5 million**[29](index=29&type=chunk) - Goodwill arising from the acquisition amounted to **RMB 683,858 thousand**, allocated to the battery operating segment[30](index=30&type=chunk) - The net cash outflow from this investing activity was **RMB 302 million**, after deducting cash acquired of RMB 9.53 million[31](index=31&type=chunk) [Transactions with Non-Controlling Interests (NCI)](index=15&type=section&id=Transactions%20with%20Non-Controlling%20Interests%20(NCI)) Following the 70% acquisition of Huayu in January, the Group acquired the remaining 30% non-controlling interest in Huayu for RMB 133.5 million in August 2022, and also acquired the remaining 30% non-controlling interest in Chengdu Yadea for RMB 6 million in the same month, achieving full ownership of both companies - In August 2022, the Group acquired the remaining **30% equity interest in Huayu for RMB 133.5 million**, which resulted in a **decrease of RMB 274 million** in equity attributable to owners of the company[32](index=32&type=chunk) - In August 2022, the Group acquired the remaining **30% equity interest in Chengdu Yadea for RMB 6 million**, which resulted in an **increase of RMB 7.76 million** in equity attributable to owners of the company[33](index=33&type=chunk) [Management Discussion and Analysis (MD&A)](index=16&type=section&id=Management%20Discussion%20and%20Analysis%20(MD%26A)) This section provides management's perspective on the Group's operational performance, financial condition, and future outlook, highlighting key drivers and strategic initiatives [Business Review and Outlook](index=16&type=section&id=Business%20Review%20and%20Outlook) In 2022, Yadea achieved record sales, revenue, and profit by optimizing its product portfolio and expanding its distribution network, while strategically acquiring Huayu to enhance supply chain stability - Average selling prices for electric scooters and electric bicycles increased to **RMB 1,816 and RMB 1,429**, respectively, driven by product portfolio improvements, contributing to revenue and profit growth[35](index=35&type=chunk) - The distribution network continued to expand, with **4,041 distributors and over 32,000 sales points in China** and presence in over 80 countries globally by the end of 2022[36](index=36&type=chunk) - Continuous investment in R&D led to the launch of the **GuanNeng 3.0 series** and the third-generation TTFAR graphene battery, with the Group holding **1,890 patents** by the end of 2022[37](index=37&type=chunk) - The full acquisition of battery manufacturer Huayu was completed to ensure stable supply of core components, achieve product differentiation, and strengthen market leadership[38](index=38&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) In 2022, the Group's revenue increased by 15.2% to RMB 31.06 billion, with gross profit rising by 36.9% to RMB 5.61 billion, and net profit significantly growing by 59.7% to RMB 2.18 billion [Revenue Analysis](index=17&type=section&id=Revenue%20Analysis) Total revenue grew by 15.2% to RMB 31.06 billion in 2022, primarily driven by a 16.3% increase in electric bicycle sales and higher average selling prices across two-wheeled vehicles Revenue and Sales Volume by Product Type | Product Type | 2022 Revenue (thousands) | Revenue Share | 2022 Sales Volume (thousand units) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Electric Bicycles | 12,827,456 | 41.3% | 8,976.0 | +16.3% | | Electric Scooters | 9,145,187 | 29.5% | 5,034.2 | -18.0% | | Batteries and Chargers | 8,397,775 | 27.0% | 26,171.3 | +10.1% (Batteries) | | **Total** | **31,059,443** | **100.0%** | **-** | **-** | [Cost, Margin, and Profitability Analysis](index=19&type=section&id=Cost%2C%20Margin%2C%20and%20Profitability%20Analysis) Cost of sales同比增長11.3%至254.5億元，增速低於收入增長。因此，毛利大幅增長36.9%至56.1億元，毛利率從15.2%提升至18.1%。由於除稅前利潤增加，所得稅開支同比增長208.0%至4.3億元。最終，年內利潤實現59.7%的強勁增長，達到21.8億元 - Gross margin increased by **2.9 percentage points from 15.2% in 2021 to 18.1% in 2022**, primarily due to higher average selling prices resulting from an improved product mix[45](index=45&type=chunk) - Income tax expense increased by **208.0% year-on-year to RMB 432 million**, mainly due to the increase in profit before income tax[51](index=51&type=chunk) - Profit for the year increased by **59.7% year-on-year**, from RMB 1.37 billion in 2021 to RMB 2.18 billion in 2022[52](index=52&type=chunk) [Operating Expenses Analysis](index=19&type=section&id=Operating%20Expenses%20Analysis) Operating expenses increased across all categories in 2022, with R&D expenses significantly rising by 31.1% to RMB 1.11 billion to support innovation and new battery development Operating Expenses (RMB million) | Operating Expense (RMB million) | 2022 | 2021 | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 1,358.2 | 1,282.9 | +5.9% | | Administrative Expenses | 896.1 | 817.9 | +9.6% | | Research and Development Expenses | 1,105.8 | 843.7 | +31.1% | [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) As of year-end 2022, cash and cash equivalents increased by 11.7% to RMB 6.78 billion, while net cash inflow from operating activities was RMB 3.08 billion, and the gearing ratio rose to 26.8% Cash Flow (RMB million) | Cash Flow (RMB million) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash inflow from operating activities | 3,078.4 | 3,693.0 | | Net cash outflow from investing activities | (2,056.0) | (824.3) | | Net cash outflow from financing activities | (379.4) | (207.4) | - The gearing ratio (other non-current liabilities and borrowings / total equity) increased from **8.8% in 2021 to 26.8% in 2022**, primarily due to increased borrowings from the consolidation of Huayu's accounts[59](index=59&type=chunk) - At the end of 2022, the Group reported **net current liabilities of RMB 125 million**, compared to net current assets of RMB 687 million at the end of 2021[54](index=54&type=chunk) [Key Financial Position Items Analysis](index=21&type=section&id=Key%20Financial%20Position%20Items%20Analysis) Inventory increased by 22.1% to RMB 1.46 billion, extending average inventory turnover days to 18.8, while trade and bills payables grew by 6.5% to RMB 13.59 billion - Average inventory turnover days increased from **14.8 days in 2021 to 18.8 days in 2022**, mainly due to the relatively longer production cycle for batteries[55](index=55&type=chunk) - Trade and bills payables increased by **6.5% to RMB 13.59 billion**, primarily due to an increase in bills payable driven by higher raw material purchases[58](index=58&type=chunk) [Human Resources and Risk Management](index=22&type=section&id=Human%20Resources%20and%20Risk%20Management) The Group's employee count increased by 28.9% to 11,825 in 2022, with total staff costs rising by 36.1% to RMB 2.32 billion, and foreign exchange risk primarily managed through regular reviews - The number of employees increased from **9,174 at the end of 2021 to 11,825 at the end of 2022**[61](index=61&type=chunk) - Total staff costs for 2022 were **RMB 2.315 billion**, an increase of **36.1%** from RMB 1.701 billion in 2021[61](index=61&type=chunk) - The Group is primarily exposed to foreign exchange risk related to the US dollar and regularly reviews its net foreign exchange exposure[60](index=60&type=chunk) [Corporate and Shareholder Information](index=23&type=section&id=Corporate%20and%20Shareholder%20Information) This section details corporate actions, post-reporting period events, dividend proposals, and the Group's adherence to corporate governance and compliance standards [Corporate Actions](index=23&type=section&id=Corporate%20Actions) In 2022, the company completed a share placement raising HKD 857 million for overseas expansion and fully acquired battery manufacturer Huayu for RMB 445 million - A placement of new shares was completed in May 2022, raising net proceeds of approximately **HKD 857 million**, which have been fully utilized for overseas business expansion[64](index=64&type=chunk) - The Group completed the acquisition of Huayu in two stages in January and August 2022, achieving **100% control** for a total consideration of **RMB 445 million** (RMB 311.5 million + RMB 133.5 million)[65](index=65&type=chunk)[66](index=66&type=chunk) [Post-Reporting Period Events](index=24&type=section&id=Post-Reporting%20Period%20Events) On January 17, 2023, the company granted 33.55 million share options to employees, with no other significant post-reporting period events noted - On January 17, 2023, **33.55 million share options** were granted to certain employees under the company's share option scheme[68](index=68&type=chunk) [Dividends and Shareholder Information](index=25&type=section&id=Dividends%20and%20Shareholder%20Information) The Board proposed a final dividend of HK 40.0 cents per share for 2022, payable on July 17, 2023, following approval at the Annual General Meeting on June 16, 2023 - A final dividend of **HK 40.0 cents per share** for 2022 is proposed, with a payment date of July 17, 2023[71](index=71&type=chunk) - The Annual General Meeting is scheduled to be held on **June 16, 2023**[71](index=71&type=chunk) [Corporate Governance and Compliance](index=24&type=section&id=Corporate%20Governance%20and%20Compliance) The company fully complied with the Corporate Governance Code throughout 2022, with the Audit Committee reviewing the annual results and the auditors verifying the financial figures - The company fully complied with the Corporate Governance Code for the entire year ended December 31, 2022[69](index=69&type=chunk) - The Audit Committee, comprising four independent non-executive directors and one non-executive director, has reviewed the annual results[75](index=75&type=chunk)

Financial Performance - For the six months ended June 30, 2022, the company recorded revenue of approximately RMB 14,050.6 million, representing a year-on-year increase of 13.5% from RMB 12,375.4 million[11]. - The net profit for the same period was approximately RMB 904.5 million, reflecting a year-on-year growth of 54.4%, primarily due to improvements in the product mix of electric two-wheelers[9]. - The gross profit rose by approximately 36.5% to RMB 2,518.2 million, with a gross margin of 17.9%, up from 14.9% in the previous year, attributed to improved product mix and reasonable price increases[14]. - Operating profit increased to RMB 1,128,242 thousand, a 56.4% rise compared to RMB 722,209 thousand in the previous year[55]. - Basic earnings per share rose to RMB 31.1, compared to RMB 20.6 in the same period last year, marking an increase of 50.2%[55]. - The company reported a total comprehensive income of RMB 921,653 thousand for the six months ended June 30, 2022, compared to RMB 586,498 thousand for the same period in 2021, representing a significant increase of about 57%[63]. Sales and Product Performance - Sales of electric bicycles increased by approximately 4.1% to 3,606,800 units, while sales of electric scooters decreased by approximately 17.7% to 2,529,400 units during the reporting period[12]. - The company continues to promote the sales of its popular electric two-wheeler series, which accounted for 40% of total electric two-wheeler sales during the reporting period[9]. - Total revenue for electric bicycles reached RMB 5,201,631 thousand, up from RMB 3,889,264 thousand, representing a growth of 33.8% year-over-year[71]. - Revenue from electric scooters decreased to RMB 4,596,637 thousand from RMB 5,420,725 thousand, a decline of 15.2% year-over-year[71]. - Battery and charger sales increased to RMB 3,907,361 thousand from RMB 2,894,462 thousand, marking a growth of 35% year-over-year[71]. Cash Flow and Liquidity - Cash and cash equivalents increased by approximately 8.8% from RMB 6,073.1 million as of December 31, 2021, to RMB 6,607.4 million as of June 30, 2022[16]. - Net cash inflow from operating activities decreased from RMB 2,585.7 million for the six months ended June 30, 2021, to RMB 448.9 million for the six months ended June 30, 2022[16]. - Cash generated from operating activities was RMB 538,331 thousand, significantly down from RMB 2,700,701 thousand in the previous year[65]. - The company expects its liquidity needs to be met through existing cash and projected cash flows from operating activities[159]. Investments and Acquisitions - The company completed the acquisition of 70% equity in two subsidiaries for a total consideration of RMB 311.5 million[43]. - On August 19, 2022, the company agreed to acquire the remaining 30% equity of Huayu New Energy Technology Co., Ltd. for RMB 133.5 million, making it a wholly-owned subsidiary[44]. - The company plans to utilize the net proceeds from the placement for establishing overseas R&D centers, factories, and distribution networks, as well as potential acquisitions[50]. - The company completed the placement of 68,800,000 new shares, raising approximately HKD 857,647,000 (equivalent to RMB 727,842,000) on May 31, 2022[106]. Financial Position - Total assets as of June 30, 2022, amounted to RMB 22,136,974 thousand, up from RMB 19,407,793 thousand at the end of 2021, indicating a growth of 14.1%[59]. - Total liabilities increased to RMB 16,750,360 thousand from RMB 14,895,394 thousand as of December 31, 2021, representing an increase of approximately 12.2%[60]. - The asset-liability ratio increased to 39.8% as of June 30, 2022, from 8.8% as of December 31, 2021[23]. - The net asset value increased to RMB 5,386,614 thousand from RMB 4,512,399 thousand, marking a growth of around 19.3%[60]. Shareholder Information - Mr. Dong Jinggui holds 1,910,996,943 shares, representing 62.37% of the company's total issued shares as of June 30, 2022[31]. - The total issued shares of the company as of June 30, 2022, were 3,063,800,000[32]. - The company has implemented multiple share incentive plans, including the first plan adopted on December 26, 2018, aimed at recognizing contributions and retaining key personnel[181][183]. Market Trends and Strategy - The overall demand for personal transportation has increased, driven by a shift from public transport to personal mobility solutions post-COVID-19[9]. - The company is expanding its distribution network to meet the growing demand for personal transportation equipment[11]. - The company aims to accelerate its globalization strategy through the establishment of overseas facilities and potential mergers and acquisitions[50]. - The company has observed a shift in consumer demand from public transportation to personalized transportation due to the COVID-19 pandemic[151]. Research and Development - The company plans to continue investing in the development of new models and upgrading the performance of existing electric two-wheelers and bicycles[9]. - Research and development expenses for the period were RMB 505.3 million, up from RMB 339.0 million, reflecting the company's commitment to product innovation[197].

Financial Performance - Total revenue for 2021 reached RMB 26,967.5 million, a significant increase from RMB 19,360.3 million in 2020, representing a growth of approximately 39.5%[11] - Gross profit for 2021 was RMB 4,101.5 million, up from RMB 3,073.2 million in 2020, indicating a gross margin improvement[11] - The company achieved a profit before tax of RMB 1,507.0 million, compared to RMB 1,186.8 million in the previous year, reflecting a year-on-year increase of about 27%[11] - The company reported a net profit attributable to shareholders of RMB 1,369.5 million for 2021, compared to RMB 957.4 million in 2020, marking an increase of approximately 43%[11] - Revenue increased by approximately 39.3% to RMB 26,967.5 million in 2021 from RMB 19,360.3 million in 2020[19] - Gross profit rose by approximately 33.5% to RMB 4,101.5 million in 2021, compared to RMB 3,073.2 million in 2020[22] - The sales revenue of electric scooters increased by approximately 17.9% to RMB 10,208.6 million in 2021, while electric bicycles saw a 67.2% increase to RMB 9,767.7 million[19] - The net profit for 2021 was RMB 1,366.6 million, a 42.5% increase from RMB 959.3 million in 2020[28] Assets and Liabilities - As of December 31, 2021, total assets amounted to RMB 19,407.8 million, an increase from RMB 16,016.4 million in 2020[12] - The group's cash and cash equivalents amounted to RMB 6,073.1 million, an increase of approximately 77.5% from RMB 3,420.9 million on December 31, 2020[29] - The group's inventory increased by approximately 75.6% to RMB 1,194.2 million as of December 31, 2021, from RMB 680.2 million on December 31, 2020[29] - The debt-to-asset ratio as of December 31, 2021, was 8.8%, compared to 2.7% on December 31, 2020[29] - The total employee cost in 2021 was RMB 1,706.9 million, an increase of approximately 49.6% from RMB 1,141.1 million in 2020[30] Production and Distribution - The total number of electric two-wheeler models offered by the company reached 125, including 56 models of electric scooters and 69 models of electric bicycles[6] - The production capacity for electric two-wheelers was approximately 17 million units per year, supported by over 9,000 employees[6] - The company has a distribution network covering nearly all administrative regions in China, consisting of 3,353 distributors and over 28,000 sales points[6] - The company plans to continue expanding its international distribution network, currently exporting to over 90 countries[6] - The company expanded its distribution network to 3,353 distributors in China by the end of 2021, up from 2,955 in 2020, with over 28,000 sales points[17] Research and Development - Research and development expenses increased by approximately 39.4% to RMB 843.7 million in 2021, driven by new product and technology development[25] - The company launched the second-generation KANON series electric two-wheelers in March 2021, selling approximately 3.9 million units[17] - The number of patents held increased from 737 in 2020 to 1,350 in 2021, marking an increase of about 83.1%[50] - The number of design patents held rose from 499 in 2020 to 991 in 2021, reflecting an increase of approximately 98.7%[50] - The company plans to invest 100 million in R&D for innovative technologies over the next three years[156] Environmental, Social, and Governance (ESG) - The report covers the performance, achievements, and plans of the group in terms of Environmental, Social, and Governance (ESG) aspects for the year 2021[32] - The company emphasizes the importance of meeting stakeholder expectations for long-term growth and has identified 21 ESG issues as a basis for its sustainable development strategy[41] - The company is focused on integrating ESG considerations into its business activities to enhance long-term corporate value and sustainable growth[37] - The company has established an independent department to oversee integrity issues and encourages whistleblowing through a dedicated protection and reward system[83] - The company has conducted anti-corruption training for over 1,000 employees, including board members, to strengthen awareness and responsibility regarding anti-corruption measures[83] Employee Engagement and Training - The employee turnover rate for the reporting period was 1%, with 738 employees leaving the company, broken down by gender: 8.5% male and 7.0% female[67] - The total training hours for the group during the reporting period amounted to approximately 272,372 hours, with an average training time of about 29.7 hours per employee[75] - Professional training accounted for 112,768 hours, with 23,242 participants, resulting in an average of 4.85 hours per participant[77] - The percentage of trained employees in the general workforce was 95.8%, while senior management had a training participation rate of only 1.6%[76] Corporate Governance - The board consists of eight directors, including three executive directors, one non-executive director, and four independent non-executive directors[121] - The company has fully complied with the corporate governance code as of December 31, 2021[117] - The board is responsible for leading and controlling the group, focusing on overall strategy and performance monitoring[119] - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance corporate value[117] - The board has established several committees to oversee specific responsibilities[120] Future Outlook - The company provided a positive outlook for 2022, projecting a revenue growth of 25% driven by new product launches and market expansion strategies[156] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share in the region by 2023[156] - Future guidance includes maintaining a gross margin of 35% while increasing operational efficiency through automation[156] Community Engagement - The company is committed to community development through volunteer services and public welfare activities, enhancing its social responsibility[40] - The company donated 1,000 electric vehicles to Zhengzhou for disaster relief, and provided basic assistance services such as food and water to affected communities[110] - A total of 200 units of the second-generation electric vehicle series were donated to Xide County, Sichuan, valued at approximately RMB 1 million, to support rural revitalization[111]

Sales Performance - For the six months ended June 30, 2021, the total sales volume of electric scooters and bicycles reached 6,537,000 units, representing a year-on-year increase of 61.1%[8] - The sales volume of electric scooters increased by approximately 36.4% to 3,073,200 units, while electric bicycles saw a 91.9% increase to 3,463,800 units[10] - The company sold approximately 1,570,000 units of the popular Crown series electric two-wheelers during the reporting period[8] - The expansion of the distribution network contributed significantly to the increase in sales volume and revenue[9] Revenue and Profitability - Revenue for the same period was approximately RMB 12,375.4 million, an increase of 63.9% compared to RMB 7,549.9 million in the same period of 2020[9] - The company's revenue for the six months ended June 30, 2021, was RMB 12,375.4 million, a significant increase from RMB 7,549.9 million in the same period of 2020, representing a growth of approximately 64.5%[35] - Gross profit rose by 39.1% to approximately RMB 1,845.4 million, with a gross margin of 14.9%, down from 17.6% in the previous year due to rising raw material costs[13] - Operating profit increased to RMB 722.2 million from RMB 482.7 million, reflecting a year-on-year growth of approximately 49.7%[35] - The net profit attributable to the company's owners for the period was RMB 589.2 million, compared to RMB 394.9 million in the previous year, marking an increase of around 49.2%[35] - Basic earnings per share rose to RMB 20.6 from RMB 13.7, representing an increase of approximately 50.4%[35] Costs and Expenses - The cost of sales increased by approximately 69.2% to RMB 10,530.0 million, in line with the rise in revenue and sales volume[11] - The total cost of sales and distribution expenses, administrative expenses, and R&D expenses amounted to RMB 11,823,133,000 for the six months ended June 30, 2021, compared to RMB 7,176,995,000 for the same period in 2020, indicating a rise of approximately 64.5%[57] - The cost of materials and consumables used was RMB 10,255,846,000 for the six months ended June 30, 2021, compared to RMB 6,113,824,000 for the same period in 2020, indicating an increase of approximately 67.8%[57] Cash Flow and Liquidity - As of June 30, 2021, cash and cash equivalents amounted to RMB 5,350.3 million, an increase of approximately 56.4% from RMB 3,420.9 million as of December 31, 2020[14] - Net cash inflow from operating activities for the six months ended June 30, 2021, was approximately RMB 2,585.7 million, compared to RMB 1,170.4 million for the same period in 2020[14] - The company reported a net increase in cash and cash equivalents of RMB 1,931,628 thousand, compared to RMB 365,702 thousand in the prior period, indicating a substantial improvement in liquidity[43] - The company believes that its liquidity needs will be met considering existing cash, expected cash flows from operations, and net proceeds from the IPO[14] Assets and Liabilities - Total assets increased to RMB 18,262,962 thousand, up from RMB 16,016,355 thousand as of December 31, 2020, representing a growth of approximately 14.06%[132] - Non-current assets increased to RMB 3,600,192 thousand as of June 30, 2021, up from RMB 2,642,591 thousand at the end of 2020, reflecting a growth of about 36.3%[39] - Current assets totaled RMB 14,662,770 thousand, an increase from RMB 13,373,764 thousand, indicating a rise of approximately 9.6%[39] - Total liabilities rose to RMB 14,500,315 thousand, up from RMB 12,413,512 thousand, which is an increase of approximately 16.8%[40] - The debt-to-asset ratio was 6.8% as of June 30, 2021, compared to 2.7% as of December 31, 2020[17] Inventory and Accounts Receivable - Inventory increased by approximately 51.8% to RMB 1,032.7 million as of June 30, 2021, from RMB 680.2 million as of December 31, 2020, due to increased product sales[16] - Accounts receivable grew to RMB 714,619 thousand, compared to RMB 377,146 thousand, reflecting an increase of approximately 89.3%[39] - The average inventory turnover days decreased from 17.5 days in 2020 to 14.6 days for the six months ended June 30, 2021[16] Investments and Future Plans - The company plans to continue investing in the development of new models and upgrading existing electric two-wheelers and bicycles[8] - The company invested approximately RMB 1,070 million in financial instruments issued by Ping An Bank, which constituted over 5% of the applicable percentage rate[27] - The net proceeds from the global offering amounted to approximately RMB 907.3 million, with planned uses including marketing, business expansion, and R&D[28] Corporate Governance and Compliance - The company has fully complied with the corporate governance code during the reporting period[31] - The company has established an audit committee to ensure compliance with corporate governance standards and enhance financial reporting accuracy[126] - The company continues to enhance its internal control systems to ensure compliance with applicable laws and regulations[20] Shareholder Returns - The company has not declared any interim dividends for the six months ended June 30, 2021[32] - Dividends paid during the period amounted to RMB 453,513 thousand, reflecting the company's commitment to returning value to shareholders[134]

Financial Performance - Yadea sold approximately 10,803,323 electric two-wheelers in 2020, including 5,578,973 electric scooters and 5,224,350 electric bicycles, representing a growth of approximately 77.3% compared to the previous year[20]. - The company's revenue for 2020 increased by approximately 61.8% to RMB 19,360.3 million, up from RMB 11,968.2 million in 2019[20]. - Gross profit rose by approximately 47.9% to RMB 3,073.2 million in 2020, compared to RMB 2,078.1 million in 2019, driven by increased demand for personalized short-distance travel[20]. - The company achieved a profit before tax of RMB 1,186.8 million in 2020, significantly higher than RMB 600.2 million in 2019[17]. - Profit attributable to owners increased by approximately 89.6% to about RMB 957.4 million for the year ended December 31, 2020[145]. - Operating profit increased to RMB 1,193,700 thousand from RMB 602,432 thousand, reflecting a significant rise of approximately 98.5%[185]. - Net profit for the year was RMB 959,289 thousand, up from RMB 508,692 thousand in 2019, marking an increase of around 88.2%[187]. Assets and Liabilities - The total assets of Yadea as of December 31, 2020, were RMB 16,016.4 million, an increase from RMB 10,707.3 million in 2019[18]. - Total liabilities stood at RMB 12,413.5 million as of December 31, 2020, compared to RMB 7,639.7 million in 2019[18]. - The company's cash and cash equivalents reached RMB 3,420,934 thousand, up from RMB 2,636,553 thousand in 2019, indicating an increase of about 29.8%[189]. - The debt-to-equity ratio as of December 31, 2020, was 2.7%, compared to zero on December 31, 2019[36]. Production and Operations - The company operates seven self-owned production facilities with an annual production capacity of approximately 15 million units, supported by over 8,000 employees[11]. - The distribution network covers nearly all administrative regions in China, consisting of 2,955 distributors and over 17,000 sales points as of December 31, 2020[11]. - The company sold over 670,000 units of the new "Crown" series electric scooters since its launch in August 2020[21]. - The company has a strong R&D team of 626 professionals focused on electric two-wheelers, enhancing its product design capabilities[11]. Environmental Impact - Total greenhouse gas emissions for 2020 amounted to 23,809.85 tons of CO2 equivalent, with a per-unit emission of 2.48 kg CO2 equivalent[55]. - Total wastewater discharge increased from 272,977.66 tons in 2019 to 371,993.30 tons in 2020, representing a 36% increase[56]. - The total amount of hazardous waste generated rose from 352.70 tons in 2019 to 593.73 tons in 2020, indicating a significant increase[56]. - The company achieved compliance with all routine inspections by local environmental protection departments in 2020[52]. Research and Development - Research and development expenses rose by approximately 56.7% to RMB 605.2 million in 2020, driven by increased employee benefits and new product development projects[29]. - The total number of patent applications rose from 820 in 2019 to 1,006 in 2020, an increase of 22.7%[88]. - The graphene battery offers over 10% improved endurance compared to traditional batteries and has a cycle life exceeding 1,000 times, which is three times longer than standard batteries[90]. Corporate Governance - The board of directors consists of eight members, including three executive directors, one non-executive director, and four independent non-executive directors[102]. - The company has adopted high corporate governance standards, fully complying with the corporate governance code as of December 31, 2020[98]. - The company has established three committees: Nomination Committee, Remuneration Committee, and Audit Committee, to oversee specific aspects of its affairs[109]. Employee Management - Total employee count increased from 4,341 on December 31, 2019, to 8,184 on December 31, 2020, with total employee costs rising approximately 113.1% to RMB 1,141.1 million[38]. - The company reported zero fatalities and zero work-related injuries in both 2019 and 2020, indicating a strong safety performance[72]. - The company has implemented various internal measures to protect employee rights and ensure equal treatment in the workplace[65]. Market Strategy - The company plans to enhance brand influence, expand production capacity, and develop overseas markets in the future[21]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within the next two years[135]. - New product launches are anticipated, including a next-generation device expected to contribute an additional $100 million in revenue[134]. Social Responsibility - In 2020, the company donated RMB 30 million for medical supplies in response to the pandemic and provided approximately 10,000 electric two-wheelers to Hubei Province to enhance mobility for healthcare workers[96]. - The company is committed to fulfilling its social responsibilities through active implementation of environmental, social, and governance policies during the reporting period[132]. Financial Reporting and Audit - The independent auditor's report confirmed that the consolidated financial statements reflect the group's financial position accurately as of December 31, 2020[176]. - The audit report was issued by PwC, with the audit engagement partner being Li Yingjie[183]. - The auditors did not identify any significant misstatements in the other information provided in the annual report[180].

Revenue Growth - For the six months ended June 30, 2020, the company recorded revenue of approximately RMB 7,638.7 million, an increase of 87.5% compared to RMB 4,074.5 million for the same period in 2019[9]. - Total sales volume of electric scooters and bicycles increased from approximately 2,033,000 units for the six months ended June 30, 2019, to approximately 4,058,800 units for the same period in 2020, representing a growth of about 99.8%[7]. - The increase in sales revenue was primarily driven by the rise in demand for alternative public transportation due to COVID-19 safety concerns and the growth of the shared micro-mobility industry[97]. - Revenue for electric scooters reached approximately RMB 3,635.5 million, accounting for 47.6% of total revenue, while electric bicycles generated approximately RMB 2,171.5 million, accounting for 28.4%[98]. - Total revenue for the six months ended June 30, 2020, reached RMB 7,638,691 thousand, a significant increase of 87.5% compared to RMB 4,074,536 thousand for the same period in 2019[143]. Profitability - The group's gross profit increased by approximately 103.8% from RMB 683.3 million for the six months ended June 30, 2019, to RMB 1,392.5 million for the six months ended June 30, 2020, with a gross margin of 18.2% compared to 16.8% in the previous period[13]. - Profit for the group increased by approximately 113.2% from RMB 181.3 million to RMB 386.5 million for the same periods[13]. - Net profit attributable to shareholders for the six months ended June 30, 2020, was RMB 385.0 million, up 113.3% from RMB 180.0 million in the prior year[40]. - Basic earnings per share for the period was RMB 13.3, compared to RMB 6.1 for the same period last year[40]. - The profit for the six months ended June 30, 2020, reached RMB 384,962,000, a significant increase from RMB 180,042,000 for the same period in 2019, representing a growth of 113.3%[63]. Costs and Expenses - The cost of sales increased from approximately RMB 3,391.2 million for the six months ended June 30, 2019, to approximately RMB 6,246.2 million for the same period in 2020, reflecting an increase of about 84.2%[11]. - Research and development expenses for the six months were RMB 214.6 million, an increase from RMB 123.5 million in the previous year[40]. - The company utilized approximately RMB 453.7 million for marketing and brand promotion, with a remaining balance of RMB 39.4 million expected to be used by December 31, 2020[30]. Cash Flow and Liquidity - As of June 30, 2020, cash and cash equivalents were approximately RMB 3,005.9 million, a 14.0% increase from RMB 2,636.6 million as of December 31, 2019[14]. - Net cash inflow from operating activities for the six months ended June 30, 2020, was approximately RMB 1,170.4 million, compared to RMB 101.5 million for the same period in 2019[14]. - The net cash generated from operating activities for the same period was RMB 1,170,437 thousand, up from RMB 101,546 thousand year-on-year[137]. - The company reported a net cash increase of RMB 365,702 thousand in cash and cash equivalents for the six months ended June 30, 2020, contrasting with a decrease of RMB 558,869 thousand in the prior year[137]. Assets and Liabilities - Total assets reached RMB 11,762,158 thousand, up 9.4% from RMB 10,746,333 thousand at the end of 2019[43]. - Total liabilities amounted to RMB 8,319,833 thousand, an increase of 9.4% from RMB 7,602,503 thousand at the end of 2019[43]. - The company's equity attributable to shareholders increased to RMB 3,429,309 thousand from RMB 3,132,386 thousand, reflecting a growth of 9.5%[42]. - Accounts receivable as of June 30, 2020, amounted to RMB 342,665,000, an increase from RMB 181,874,000 as of December 31, 2019[156]. - The total liabilities, including accounts payable and notes payable, were RMB 7,289,394,000 as of June 30, 2020, up from RMB 6,858,431,000 at the end of 2019[159]. Market Strategy and Outlook - The company plans to protect and expand its market share, enhance brand reputation, and continue to invest in core technology R&D for electric two-wheelers[7]. - The company remains cautiously optimistic about its performance despite the ongoing challenges in the business environment due to COVID-19[7]. - The group aims to further consolidate its competitive advantage through the expansion of its distribution network[7]. - The company plans to expand its market presence in China, focusing on electric vehicle sales and related components[56]. Employee and Management - The group employed 6,305 staff as of June 30, 2020, compared to 4,341 staff as of December 31, 2019, with total employee costs of approximately RMB 213.7 million[17]. - The total compensation for key management personnel for the six months ended June 30, 2020, was RMB 3,067 thousand, slightly down from RMB 3,151 thousand for the same period in 2019, a decrease of about 2.66%[175]. Compliance and Governance - The company fully complied with the corporate governance code during the reporting period[36]. - The audit committee reviewed the accounting principles and financial reporting matters during the reporting period[126].

Financial Performance - Total revenue for 2019 reached RMB 11,968,238 thousand, representing a 20.8% increase from RMB 9,916,652 thousand in 2018[10] - Gross profit for 2019 was RMB 2,078,138 thousand, up from RMB 1,619,585 thousand in 2018, indicating a gross margin improvement[10] - Net profit attributable to the owners of the parent company for 2019 was RMB 516,411 thousand, an increase from RMB 431,036 thousand in 2018[10] - Revenue increased by approximately 20.7% to RMB 11,968.2 million in 2019, up from RMB 9,916.7 million in 2018[15] - Gross profit rose by approximately 28.3% to RMB 2,078.1 million in 2019, compared to RMB 1,619.6 million in 2018[13] - Net profit for 2019 increased by approximately 20.4% to RMB 520.3 million, compared to RMB 432.3 million in 2018[20] - Basic earnings per share for 2019 were RMB 17.5, compared to RMB 14.4 in 2018, marking a growth of about 21.5%[161] Assets and Liabilities - The company's total assets as of December 31, 2019, amounted to RMB 10,746,333 thousand, a significant increase from RMB 7,759,187 thousand in 2018[11] - Total liabilities for 2019 were RMB 7,602,503 thousand, compared to RMB 4,939,469 thousand in 2018, reflecting increased leverage[11] - The company's total equity increased to RMB 3,143,830 thousand in 2019 from RMB 2,819,718 thousand in 2018, indicating a growth of about 11.5%[164] - The company’s cash and cash equivalents stood at RMB 2,636.6 million, indicating strong cash flow from operating activities[13] - Cash and cash equivalents as of December 31, 2019, were RMB 2,636.6 million, reflecting a 33.6% increase from RMB 1,973.4 million at the end of 2018[21] Production and Sales - The company operates four self-owned production facilities with an annual production capacity of approximately 8 million electric two-wheelers[6] - The company sold approximately 6,093,700 electric two-wheelers in 2019, representing a 20.9% increase from the previous year[13] - The average selling price of electric scooters slightly decreased from RMB 1,698 in 2018 to RMB 1,690 in 2019, while the average price of electric bicycles remained stable at around RMB 1,228[15] - The company expanded its distribution network to include 2,155 distributors and over 12,000 sales points by the end of 2019, compared to 1,824 distributors and over 9,000 sales points in 2018[13] Research and Development - The R&D team consists of 335 professionals, focusing on the design and development of electric two-wheelers[6] - Research and development expenses grew by approximately 26.4% to RMB 386.1 million in 2019, driven by ongoing investments in new products and technologies[22] - Yadea's R&D expenditure increased from 305.45 million in 2018 to 386.14 million in 2019, reflecting a focus on innovation[59] Environmental and Social Responsibility - Total greenhouse gas emissions for 2019 were 17,492.19 tons of CO2 equivalent, with a per-unit emission of 3.11 kg CO2 equivalent[30] - The company implemented multiple measures to ensure compliance with environmental standards, including wastewater treatment and VOC emission controls[32] - The company emphasizes resource conservation and adheres to national laws regarding water and energy usage[34] - In 2019, Yadea donated a total of RMB 2.104 million to support local community development and public welfare initiatives[68] Corporate Governance - The board consists of eight directors, including three executive directors, one non-executive director, and four independent non-executive directors[75] - The company has fully complied with the corporate governance code as of December 31, 2019[71] - The board is responsible for leading and controlling the group, focusing on overall strategy, development plans, and financial performance[73] - The company has established appropriate insurance arrangements for directors against legal actions arising from corporate activities[73] Future Outlook - The company remains optimistic about future business prospects despite challenges posed by COVID-19, with plans to allocate more resources to adapt to market conditions[16] - The company plans to allocate resources for R&D, product portfolio enhancement, and strategic partnerships to strengthen its leadership in the electric two-wheeler industry in China[122] - Management remains optimistic about the future business outlook despite challenges posed by COVID-19[122] Employee Relations - The company had 4,341 employees, up from 3,703 employees on December 31, 2018[23] - Employee turnover rates were 2.51% for male employees and 2.82% for female employees, indicating a stable workforce[41] - The company organized 60 safety education training sessions, with a total of 5,876 participants, reflecting a commitment to employee safety[44] Supply Chain Management - The group has implemented strict supply chain management practices, including supplier performance assessments and management guidelines[52] - In 2019, Yadea had 1,594 suppliers, with 75% passing quality certification and 25% certified for environmental and occupational health safety management systems[54] - The supplier review coverage rate reached 90%, ensuring thorough evaluation of supplier capabilities and compliance[54] Audit and Compliance - The independent auditor, Deloitte, confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2019[150] - The audit report emphasizes the importance of professional judgment and skepticism throughout the audit process to identify risks of material misstatement due to fraud or error[156] - The company has established a framework for employees to report concerns regarding financial reporting and risk management[90]

Revenue and Sales Performance - For the six months ended June 30, 2019, the group recorded revenue of approximately RMB 4,074.5 million, a decrease of about 11.1% compared to RMB 4,582.8 million for the same period in 2018[16]. - Total sales volume of electric scooters and bicycles decreased from approximately 2,473,000 units for the six months ended June 30, 2018, to approximately 2,033,000 units for the same period in 2019[14]. - The decrease in revenue was primarily due to the early Lunar New Year and the impact of the new national standards on sales of electric scooters and bicycles[16]. - Electric scooter sales volume decreased by approximately 24.2% from about 1,434,200 units for the six months ended June 30, 2018, to about 1,086,900 units for the same period in 2019[17]. - The sales volume of electric scooters fell by approximately 24.2% from 1,434,200 units to 1,086,900 units, while electric bicycles saw a decline of about 8.9% from 1,038,800 units to 946,100 units[127]. - Electric scooters generated revenue of RMB 1,929,291,000, down 17.9% from RMB 2,349,496,000 in the previous year[186]. - Electric bicycles revenue increased slightly to RMB 1,251,420,000, up 1.5% from RMB 1,232,400,000[186]. Profitability and Margins - Despite the decrease in sales volume, the overall gross profit margin increased from approximately 15.6% to 16.8%, attributed to the rise in average selling prices of electric scooters and bicycles[14]. - Gross profit for the six months ended June 30, 2019, was approximately RMB 683.3 million, a decrease of about 4.5% from RMB 715.2 million for the same period in 2018, with a gross margin of 16.8%[19]. - Net profit for the period was RMB 181,316 thousand, a decrease of 7.1% from RMB 195,269 thousand in the previous year[152]. - Net profit attributable to owners for the six months was RMB 180,042,000, a decrease of 7.6% from RMB 194,816,000[195]. - Basic earnings per share for the period was RMB 6.1, down from RMB 6.5, indicating a decline of about 6.15%[151]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2019, were approximately RMB 1,417.3 million, a decrease of about 28.2% from RMB 1,973.4 million as of December 31, 2018[22]. - Operating cash flow for the six months ended June 30, 2019, generated a net cash inflow of approximately RMB 101.5 million, compared to a net cash outflow of RMB 812.2 million for the same period in 2018[22]. - The net cash generated from operating activities for the first half of 2019 was RMB 101,546,000, compared to a net cash used of RMB 812,244,000 in the same period of 2018[158]. - The total cash and cash equivalents as of June 30, 2019, amounted to RMB 1,417,275,000, a decrease from RMB 1,461,526,000 at the end of June 2018[159]. - The company experienced a significant decrease in cash used in investing activities, reporting a net cash outflow of RMB 478,883,000 for the first half of 2019, compared to a net cash inflow of RMB 1,317,608,000 in the same period of 2018[158]. Inventory and Assets - Inventory increased by approximately 15.0% from RMB 259.5 million as of December 31, 2018, to RMB 298.5 million as of June 30, 2019, primarily due to increased stock of electric scooters and bicycles[24]. - Non-current assets increased to RMB 1,718,057 thousand as of June 30, 2019, compared to RMB 1,634,586 thousand at the end of 2018, representing a growth of approximately 5.1%[44]. - Total assets decreased to RMB 5,686,240 thousand from RMB 6,124,601 thousand, a decline of about 7.2%[44]. - Accounts receivable as of June 30, 2019, amounted to RMB 227,904 thousand, a decrease of 18.9% from RMB 278,079 thousand as of December 31, 2018[88]. - Inventory as of June 30, 2019, was RMB 298,530,000, an increase from RMB 259,492,000 at the end of 2018[197]. Corporate Governance and Management - The company has fully complied with the corporate governance code during the reporting period[37]. - The company appointed a new CEO, Qian Jinghong, effective May 14, 2019, following the resignation of the previous CEO, Liu Yeming[39]. - The company’s ultimate holding companies are registered in the British Virgin Islands, with the ultimate controlling shareholders being Mr. Dong Jinggui and Ms. Qian Jinghong[50]. - The company has a strong management team, with Qian Jinghong appointed as CEO on May 14, 2019[122]. Research and Development - The company plans to focus on enhancing its brand as a premium electric two-wheeler, strengthening R&D capabilities, and expanding its sales and service network[14]. - Research and development costs for the period amounted to RMB 123,476,000, an increase from RMB 108,159,000 in the previous year[82]. - The company is committed to continuing its research and development efforts, including hiring R&D personnel[36]. Market Outlook and Strategy - The implementation of new national standards for electric bicycles is expected to create a favorable environment for existing market leaders like Yadea, with anticipated demand growth in the second half of 2019[14]. - Management noted that the sales of electric two-wheelers showed an upward trend starting in April 2019, following the implementation of the new national standards[14]. - The company will adjust pricing and sales strategies in response to domestic and international market developments[14]. - Yadea aims to develop mid-to-high-end products to maintain its competitive edge in the industry[14]. - The group plans to focus on enhancing its brand, R&D capabilities, and expanding its sales and service network to maintain competitive advantage in the market[124]. Financial Reporting and Standards - The financial statements for the six months ended June 30, 2019, were prepared in accordance with Hong Kong Accounting Standards and the relevant disclosure requirements[51]. - The adoption of Hong Kong Financial Reporting Standard 16 has led to significant changes in accounting policies regarding leases[62]. - The financial performance and position of the group were not significantly impacted by the new accounting standards adopted during the period[61]. - The company recognizes right-of-use assets at the commencement date of the lease, measured at cost less accumulated depreciation and impairment losses[64].