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]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Yadea Group Holdings Ltd. 雅迪集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1585） 截 至2022年12月31日 止 年 度 年 度 業 績 公 告 雅迪集團控股有限公司（「本公司」或「雅迪」）董事（「董事」）會（「董事會」）欣然宣佈本 公司及其附屬公司（統稱「本集團」或「我們」）截至2022年12月31日止年度（「報告期」） 的經審核綜合年度業績，連同截至2021年12月31日止年度的比較數字如下： 財務摘要 於報告期內： (cid:129) 與截至2021年12月31日止年度相比，收入增加約15.2%至人民幣31,059.4 百萬元。 (cid:129) 與截至2021年12月31日止年度相比，毛利增加約36.9%至人民幣5,614.0百 萬元。 ...

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].

Financial Performance - Total revenue increased by 26.3% year-on-year to RMB 9,916.7 million[10] - Gross profit for 2018 was RMB 1,619.6 million, compared to RMB 1,168.4 million in 2017, reflecting a significant increase[12] - The company reported a profit attributable to equity holders of RMB 431.0 million for 2018, up from RMB 404.7 million in 2017[12] - Revenue for 2018 increased by approximately 26.3% to RMB 9,916.7 million, compared to RMB 7,850.4 million in 2017, marking a continuous record-breaking trend over the past five years[16] - Gross profit rose by approximately 38.6% to RMB 1,619.6 million in 2018, with a gross margin of about 16.3%, up from 14.9% in 2017[16] - The group's profit increased by approximately 6.7% from RMB 405.0 million in 2017 to RMB 432.3 million in 2018[29] - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2018, representing a growth of 20% compared to the previous year[60] - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2018, representing a year-over-year growth of 15%[63] Sales and Market Expansion - The electric scooter segment accounted for 49.0% of total revenue, while electric bicycles contributed 25.5% in 2018[10] - The company achieved a record sales volume of approximately 5,039,900 electric two-wheelers in 2018, including about 2,994,500 electric scooters and 2,045,400 electric bicycles, representing a 24.1% increase from the previous year[16] - Sales revenue from electric scooters increased by approximately 32.0% to RMB 5,083.8 million, while electric bicycles saw a 25.8% increase to RMB 2,514.5 million[21] - The company plans to continue expanding its market presence and product offerings in the electric two-wheeler sector[8] - The company is actively pursuing market expansion strategies, targeting new regions in Southeast Asia to increase its market share[60] - Market expansion efforts are underway, with plans to enter three new international markets by the end of 2019, targeting a 5% increase in global market share[63] Research and Development - The R&D team consists of 340 professionals with diverse product design backgrounds, focusing on electric two-wheelers[8] - Research and development expenses increased by approximately 67.3% from RMB 182.6 million in 2017 to RMB 305.4 million in 2018, driven by ongoing investments in multiple R&D projects related to new designs and component technologies[27] - The company plans to continue investing in R&D to enhance innovation capabilities, particularly in new product design and core component technology[75] - The company has invested 10 million in research and development to innovate and improve product offerings[60] - The company is investing in R&D, allocating 100 million to develop new technologies aimed at enhancing product efficiency and sustainability[64] Production Capacity and Operations - The company has a production capacity of approximately 6.0 million electric two-wheelers annually, supported by over 3,000 employees[8] - The company plans to increase production capacity by 25% to approximately 7.5 million units annually, with a new production facility in Anhui expected to be completed in early 2020[19] - The company has established a domestic network covering nearly all administrative regions in China, consisting of 1,824 distributors and over 9,000 sales points as of December 31, 2018[73] Financial Position and Cash Flow - Total assets as of December 31, 2018, were RMB 7,759.2 million, an increase from RMB 7,005.1 million in 2017[13] - The company held cash and cash equivalents of RMB 1,973.4 million, maintaining strong cash flow from operating activities[16] - The net cash generated from operating activities in 2018 was RMB 319.6 million, a significant decrease from RMB 1,158.8 million in 2017[27] - The company reported a net cash position of RMB 1,973,390 thousand in cash and cash equivalents as of December 31, 2018[114] - The company reported a cash inflow from the sale of property, plant, and equipment of RMB 10,674,000, an increase from RMB 6,679,000, reflecting a growth of 59.5%[122] Corporate Governance - The board consists of eight directors, including five executive directors and three independent non-executive directors[37] - The board is responsible for setting the overall strategy, approving development plans, and monitoring financial and operational performance[34] - The company has received annual confirmations regarding the independence of all independent non-executive directors as per listing rules[38] - The board can declare interim dividends when there are distributable profits, and dividends may be paid in shares if not contrary to the company's articles of association[43] - The company has adopted a comprehensive dividend policy aimed at providing shareholders with a reasonable return, considering actual and expected financial performance, legal restrictions, and overall business conditions[43] Compliance and Risk Management - The company has established a robust internal control system for timely and accurate disclosure of insider information, ensuring compliance with regulatory requirements[58] - The company has a structured approach to risk management, categorizing risks into strategic, financial, operational, and legal risks[53] - The company encourages employees, customers, suppliers, and other stakeholders to report any concerns regarding misconduct or fraud[53] - The company has implemented measures to mitigate identified risks based on qualitative and quantitative assessments[53] Employee Compensation and Remuneration - The total remuneration for executive directors and key management personnel amounted to RMB 4,191,000 in 2018, compared to RMB 3,450,000 in 2017, reflecting an increase of approximately 21.5%[196] - The highest-paid employee's salary, including bonuses and benefits, was RMB 6,295,000 in 2018, up from RMB 3,650,000 in 2017, indicating a growth of about 72%[200] - The total remuneration for independent non-executive directors was RMB 789,000 in 2018, consistent with the previous year's figure[196] - The company’s overall employee compensation strategy is based on market performance, individual contributions, and overall group performance[198] Environmental and Social Responsibility - Environmental, social, and governance (ESG) initiatives have been implemented, focusing on sustainable practices and corporate social responsibility[59] - The management team emphasized a commitment to sustainability, aiming for a 50% reduction in carbon emissions by 2025 through various initiatives[63] - The company emphasizes strict compliance with local laws and regulations in its production and operations, ensuring all necessary approvals are obtained before expanding production facilities[67] Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to maintain good investor relations and enhance understanding of business performance and strategies[54] - The company ensures that all resolutions presented at shareholder meetings are voted on by poll according to the number of shares held[54]