YADEA(01585)2024-03-19 04:03Revenue Growth - Revenue increased by 11.9% to RMB 34,762.8 million compared to the previous year[2] - Revenue from electric bicycles increased to RMB 15,952.1 million in 2023, up from RMB 12,827.5 million in 2022, representing a growth of approximately 24.4%[13] - Battery and charger revenue rose to RMB 9,249.6 million in 2023, compared to RMB 8,397.8 million in 2022, an increase of about 10.1%[13] - Revenue from electric two-wheeler parts grew to RMB 925.7 million in 2023, up from RMB 689.0 million in 2022, an increase of about 34.4%[13] - Total revenue for 2023 reached RMB 34,762.8 million, compared to RMB 31,059.4 million in 2022, representing a growth of approximately 11.9%[13] - Total revenue for electric two-wheelers and related accessories reached RMB 34,543,555 thousand in 2023, an increase from RMB 30,409,109 thousand in 2022[16] - Revenue increased by 11.9% to RMB 34,762.8 million in 2023, driven by strong sales of electric bicycles, batteries, and chargers[39][44] - Revenue from electric bicycles increased by 28.8% to 11,561,000 units in 2023, contributing to a total revenue of RMB 15,952,107 thousand, up from 8,976,000 units and RMB 12,827,456 thousand in 2022[45] - Total revenue for 2023 reached RMB 34,762,757 thousand, a 11.9% increase from RMB 31,059,443 thousand in 2022[45] Profitability - Net profit attributable to the company's owners rose by 22.2% to RMB 2,640.2 million[2] - Basic earnings per share increased by 19.6% to RMB 88.5 cents[2] - Gross profit reached RMB 5,885.2 million, up from RMB 5,614.0 million in the previous year[3] - Operating profit grew to RMB 3,132.1 million from RMB 2,707.6 million[3] - Net profit for 2023 increased by 20.9% to RMB 2,640.2 million, up from RMB 2,183.0 million in 2022[56] - Net profit attributable to the company's owners for 2023 was RMB 2,640,158 thousand, compared to RMB 2,161,094 thousand in 2022[27] - Basic earnings per share increased to 88.5 RMB cents in 2023 from 74.0 RMB cents in 2022[25] - Diluted earnings per share for 2023 increased to RMB 88.0 cents per share, up from RMB 72.9 cents per share in 2022[27] Research and Development - Research and development expenses amounted to RMB 1,192.0 million, up from RMB 1,105.8 million[3] - R&D expenses rose by 7.8% to RMB 1,192.0 million in 2023, primarily due to increased employee benefits and material costs[53] Financial Position - Total assets increased to RMB 25,660.1 million from RMB 24,952.7 million[5] - Total equity rose to RMB 8,401.2 million from RMB 6,642.6 million[6] - Cash and cash equivalents grew by 16.7% to RMB 7,913.8 million as of December 31, 2023, compared to RMB 6,782.6 million in 2022[57] - Operating cash flow increased to RMB 3,580.1 million in 2023, up from RMB 3,078.4 million in 2022[57] - Net current assets stood at RMB 445.6 million as of December 31, 2023, compared to net current liabilities of RMB 125.4 million in 2022[58] - Inventory decreased by 34.5% from RMB 1,458.0 million in 2022 to RMB 955.4 million in 2023, primarily due to reduced battery stock[59] - Average inventory turnover days decreased from 18.8 days in 2022 to 15.04 days in 2023, driven by reduced raw materials and battery inventory[59] - Accounts receivable increased by 40.6% from RMB 388.3 million in 2022 to RMB 545.9 million in 2023, mainly due to an increase in distributors granted credit[60] - Financial assets at fair value decreased by 33.7% from RMB 4,208.5 million in 2022 to RMB 2,789.8 million in 2023, primarily due to the redemption of wealth management products and structured deposits[61] - The company recorded a fair value gain of approximately RMB 103.7 million from financial assets at fair value in 2023[61] - Accounts payable and notes payable increased by 0.6% from RMB 13,592.9 million in 2022 to RMB 13,672.2 million in 2023, mainly due to increased raw material purchases[62] - The asset-liability ratio decreased to 9.9% in 2023 from 26.8% in 2022[63] Dividends and Shareholder Returns - The company proposed a final dividend of 48.0 HK cents per ordinary share[2] - The company proposed a final dividend of 48.0 HK cents per share for 2023, totaling HK$1,436,698 thousand (approximately RMB 1,304,076 thousand)[23] - The Board has resolved to recommend a final dividend of HK$0.48 per ordinary share for the year ending December 31, 2023, compared to HK$0.40 for the previous year[72] - The final dividend cheques and new shares under the scrip dividend scheme are expected to be dispatched to shareholders around August 19, 2024[72] Business Segments - The company operates in two reportable segments: electric two-wheelers and related parts, and batteries[15] - The electric two-wheelers and related parts segment focuses on the development, manufacturing, and sales of electric two-wheelers and related components[15] - The batteries segment is primarily engaged in the production and sales of batteries through its subsidiaries, Huayu New Energy Technology Co., Ltd. and Jieshou Huayu New Energy Sales Co., Ltd.[15] Sales Performance - Electric scooter revenue decreased to RMB 8,635.3 million in 2023 from RMB 9,145.2 million in 2022, a decline of approximately 5.6%[13] - Total sales of electric two-wheelers reached 16.5 million units in 2023, a 17.9% increase year-over-year, including 4.9 million electric scooters and 11.6 million electric bicycles[39] - Electric scooter sales decreased by 1.5% to 4,960,000 units in 2023, with revenue of RMB 8,635,319 thousand, compared to 5,034,000 units and RMB 9,145,187 thousand in 2022[45] Product Development and Innovation - The company launched 33 new electric bicycle models and 16 new electric scooter models in 2023, featuring enhanced design, smart functions, and advanced performance[40] - The company introduced its first-generation sodium-ion battery, "Ji Na 1," in 2023, offering advantages in safety, lifespan, charging speed, low-temperature durability, and power[40] Distribution and Market Expansion - The company expanded its distribution network to over 4,000 distributors in China, with more than 40,000 sales points as of December 31, 2023[42] - The company's international distribution network now covers over 90 countries, including Europe, Southeast Asia, South America, and Central America[42] - A new production facility in Vietnam, with a planned annual capacity of 2 million electric motorcycles, is set to begin operations in 2025, with 30% of output exported to Southeast Asian markets[43] Acquisitions and Investments - The company acquired a 70% stake in Huayu in January 2022 for a total cash consideration of RMB 311,500 thousand[32] - Intangible assets from the Huayu acquisition were valued at RMB 310,848 thousand, primarily consisting of acquired patents[33] - Goodwill from the Huayu acquisition was RMB 683,858 thousand, attributed to post-acquisition synergies[33] - The company acquired the remaining 30% stake in Huayu in August 2022 for RMB 133,500 thousand[35] - The company also acquired the remaining 30% stake in Chengdu Yadi Technology Co., Ltd. in August 2022 for RMB 6,000 thousand[36] - The company acquired 100% equity of Wuxi Lingbo Electronic Technology for RMB 351.5 million, focusing on smart control system solutions and products[38] - The company's subsidiary acquired 100% equity of Wuxi Lingbo Electronic Technology Co., Ltd. for a total cash consideration of approximately RMB 351.5 million in March 2024[69] Corporate Governance and Compliance - The company's financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) and include applicable disclosures required by the Hong Kong Stock Exchange Listing Rules and the Hong Kong Companies Ordinance[12] - No single customer accounted for 10% or more of the company's total revenue during the reporting period[14] - The company has fully complied with the Corporate Governance Code for the entire year ending December 31, 2023[70] - The Audit Committee has reviewed the annual results for the year ending December 31, 2023, and discussed risk management, internal controls, and financial reporting matters[75] - The company's annual report for the year ending December 31, 2023, will be dispatched to shareholders and made available on the company's website[77] Other Income and Expenses - Government subsidies increased to RMB 328,372 thousand in 2023 from RMB 166,631 thousand in 2022[18] - Bank interest income rose to RMB 305,676 thousand in 2023 compared to RMB 179,556 thousand in 2022[18] - The company recorded a net gain of RMB 25,001 thousand from the sale of a portion of its equity in an associate company in 2023[18] - Other income and gains surged by 115.9% to RMB 979.8 million in 2023, driven by government subsidies, bank interest income, and VAT overpayment credits[50] Employee Costs - Employee benefits expenses rose to RMB 2,491,264 thousand in 2023 from RMB 2,095,911 thousand in 2022[20] - The company's total employee cost increased by 16.9% from RMB 2,315.3 million in 2022 to RMB 2,707.6 million in 2023, driven by an increase in employee numbers and average salaries[65] Inventory and Raw Materials - Raw materials and consumables used increased to RMB 27,739,951 thousand in 2023 from RMB 24,376,677 thousand in 2022[20] - Inventory decreased to RMB 955,438 thousand in 2023 from RMB 1,458,049 thousand in 2022, with significant reductions in raw materials and work-in-progress[28] Accounts Receivable and Payable - Accounts receivable increased to RMB 545,941 thousand in 2023 from RMB 388,315 thousand in 2022, with 95.8% of receivables aged within six months[29][30] - Accounts payable and notes payable totaled RMB 13,672,198 thousand in 2023, slightly up from RMB 13,592,878 thousand in 2022[30] Shareholder Meetings and Dividends - The Annual General Meeting is scheduled to be held on June 17, 2024[73] - The company will suspend the registration of shareholders from June 12 to June 17, 2024, to determine eligibility for attending and voting at the Annual General Meeting[73]