Revenue and Profit Growth - Revenue for the reporting period was RMB 5,083.0 million, a year-on-year increase of approximately 6.3%[3] - Revenue from goods sales in 2023 was RMB 5,017,533 thousand, an increase from RMB 4,727,769 thousand in 2022[14] - Revenue from services in 2023 was RMB 65,449 thousand, up from RMB 55,254 thousand in 2022[14] - Total revenue in 2023 was RMB 5,082,982 thousand, compared to RMB 4,783,023 thousand in 2022[14] - Revenue increased by 6.3% from RMB 4,783.0 million in 2022 to RMB 5,083.0 million in 2023, driven by significant sales growth[38] - The company recorded revenue of RMB 5,083.0 million in 2023, a 6.3% increase from RMB 4,783.0 million in 2022, driven by increased sales of electric two-wheelers and batteries[42] - Gross profit was RMB 681.2 million, a year-on-year increase of approximately 21.4%[3] - Gross profit grew by 21.4% from RMB 561.3 million in 2022 to RMB 681.2 million in 2023, due to increased sales of high-end models and economies of scale[38] - Gross profit increased by 21.4% to RMB 681.2 million in 2023, with gross margin improving from 11.7% to 13.4%[45] - Net profit for the year was RMB 145.6 million, a year-on-year increase of approximately 23.4%[3] - Net profit attributable to equity holders of the company grew to RMB 145,607,000 in 2023 from RMB 118,030,000 in 2022[21] - Net profit for the year grew by 23.4% from RMB 118.0 million in 2022 to RMB 145.6 million in 2023[52] R&D and Innovation - R&D costs increased to RMB 189.4 million, up from RMB 150.5 million in the previous year[4] - R&D costs rose by 25.8% from RMB 150.5 million in 2022 to RMB 189.4 million in 2023, primarily due to increased employee benefits and mold depreciation and design fees[47] - The company holds 489 patents, leading the industry in invention patents, and launched the S-series electric two-wheelers featuring 2.0 liquid-cooled motors and upgraded solid-state controllers[39] - The company will enhance R&D capabilities, focusing on liquid-cooling technology, digital battery maintenance, and expanding product categories such as high-speed electric motorcycles and foldable bikes[40] - The net proceeds from the IPO amounted to HKD 706.4 million, with 30% allocated to enhancing R&D capabilities and maintaining technological advantages[67] - As of December 31, 2023, the company had utilized HKD 27.8 million out of the HKD 211.9 million allocated for R&D capability enhancement, with the remaining HKD 184.1 million to be used by the end of 2025[68] Financial Position and Assets - Total assets increased to RMB 3,862.5 million, up from RMB 3,184.0 million in the previous year[6] - Cash and cash equivalents significantly increased to RMB 994.97 million, up from RMB 395.04 million in the previous year[6] - Total equity attributable to the company's shareholders increased to RMB 1,527.6 million, up from RMB 679.8 million in the previous year[7] - Non-current liabilities increased to RMB 505.8 million, up from RMB 389.0 million in the previous year[7] - Current liabilities decreased to RMB 1,829.1 million, down from RMB 2,115.1 million in the previous year[7] - Inventory recognized as cost of sales was RMB 4,068,630,000 in 2023, up from RMB 3,919,913,000 in 2022[24] - Trade receivables and notes increased to RMB 199,565,000 in 2023 from RMB 189,664,000 in 2022[25] - Total income tax expenses rose to RMB 5,533,000 in 2023 from RMB 4,218,000 in 2022[18] - Financial income net of costs improved to RMB 10,677,000 in 2023 from a loss of RMB 3,735,000 in 2022[17] - Inventory decreased by 43.0% from RMB 445.7 million as of December 31, 2022, to RMB 254.0 million as of December 31, 2023, reflecting improved asset management efficiency[53] - Property, plant, and equipment increased by 13.6% from RMB 844.1 million as of December 31, 2022, to RMB 958.6 million as of December 31, 2023, due to production expansion and equipment upgrades[56] - Total assets grew by 21.3% from RMB 3,184.0 million as of December 31, 2022, to RMB 3,862.5 million as of December 31, 2023, while total liabilities decreased by 6.8% to RMB 2,334.9 million[59] - Cash and cash equivalents surged by 151.9% from RMB 395.0 million as of December 31, 2022, to RMB 995.0 million as of December 31, 2023, driven by net proceeds from global offering and operating cash flow[60] - Leverage ratio decreased significantly from 97.3% as of December 31, 2022, to 42.6% as of December 31, 2023, due to increased equity from the global offering[60] - Capital expenditures decreased by 13.0% from RMB 233.7 million in 2022 to RMB 203.3 million in 2023, primarily used for expanding production capacity[62] - The company has pledged assets with a net book value of RMB 495.6 million for property, plant, and equipment, and RMB 88.4 million for right-of-use assets as collateral for borrowings[65] Sales and Marketing - Sales and marketing costs increased by 21.8% from RMB 259.6 million in 2022 to RMB 316.2 million in 2023, driven by higher advertising, employee benefits, and e-commerce system expenses[46] - Advertising expenses increased to RMB 110,287,000 in 2023 compared to RMB 79,521,000 in 2022[17] - The company plans to improve brand awareness through targeted marketing campaigns and strategic collaborations with other well-known brands[40] - The company allocated HKD 211.9 million for strengthening sales and distribution channels, with HKD 68.9 million utilized as of December 31, 2023, and the remaining HKD 143.1 million to be used by the end of 2024[68] - The company plans to use HKD 26.5 million for brand and marketing activities, HKD 8.6 million for strengthening online channels, and HKD 10.6 million for expanding international market sales, all expected to be fully utilized by the end of 2024[70] Production and Capacity Expansion - The company plans to increase production capacity to approximately 2 million units annually by 2026 with the construction of the Chongqing factory[40] - The company established Chongqing Luyuan Electric Vehicle Co., Ltd. with a registered capital of RMB 200 million to support strategic development in Southwest China[66] - 30% of the net proceeds (HKD 211.9 million) are allocated to strengthen the company's production capacity, with HKD 6.3 million already utilized and HKD 205.7 million remaining, expected to be fully utilized by the end of 2024[69] - 12% of the net proceeds (HKD 84.8 million) are designated for acquiring land use rights and constructing production infrastructure in a city in Southwest China, with the entire amount remaining unused and expected to be utilized by the end of 2024[69] - 9% of the net proceeds (HKD 63.6 million) are allocated for capacity expansion at the company's Shandong plant, with HKD 3.7 million already utilized and HKD 59.9 million remaining, expected to be fully utilized by the end of 2024[69] - 9% of the net proceeds (HKD 63.6 million) are allocated for capacity expansion at the company's Guangxi plant, with HKD 2.6 million already utilized and HKD 61.0 million remaining, expected to be fully utilized by the end of 2024[69] - The company has acquired land use rights in Chongqing for the construction of a production facility, with construction already commenced[74] International Expansion - The company aims to expand its international market presence, focusing on Southeast Asia, Europe, and the United States[41] - The company plans to use HKD 10.6 million for expanding international market sales, expected to be fully utilized by the end of 2024[70] Employee and Shareholder Information - Employee benefits expenses rose to RMB 330,078,000 in 2023, up from RMB 293,055,000 in 2022[17] - The company has 2,906 employees as of December 31, 2023, an increase from 2,470 employees in 2022, with total employee expenses rising by 14.5% to RMB 472.2 million[64] - The company granted 16,736,000 share options under the Pre-IPO Share Option Plan, representing approximately 3.92% of the total issued shares as of December 31, 2023[65] - The company has established a trust for a share purchase plan, with a total cost not exceeding HKD 100 million, to be executed between April 12, 2024, and April 11, 2025[73] - The board of directors as of the announcement date consists of executive directors Ni Jie, Hu Jihong, and Chen Guosheng, and independent non-executive directors Wu Xiaoya, Peng Haitao, Liu Bobin, and Chen Zhifeng[83] Dividends and Financial Reporting - The company decided not to distribute the remaining profits generated by its Chinese subsidiaries as of December 31, 2023[19] - The company did not declare or pay any dividends for the years ended December 31, 2022, and 2023[33] - The company has decided not to recommend a final dividend for the year ended December 31, 2023[78] - The consolidated income statement, comprehensive income statement, consolidated balance sheet, and related notes for the reporting period have been confirmed by PricewaterhouseCoopers to be consistent with the amounts in the company's annual consolidated financial statements[81] - The annual report containing all information required by the listing rules will be sent to shareholders and made available on the Hong Kong Stock Exchange website and the company's website[82] Other Financial Information - Other income in 2023 was RMB 62,720 thousand, a significant increase from RMB 37,750 thousand in 2022[15] - Government subsidies in 2023 amounted to RMB 45,318 thousand, more than double the RMB 20,549 thousand in 2022[15] - Exchange gains in 2023 were RMB 815 thousand, down from RMB 1,121 thousand in 2022[16] - Fair value changes of financial assets at fair value through profit or loss in 2023 were RMB 15,585 thousand, compared to RMB 19,588 thousand in 2022[16] - Net other gains in 2023 were RMB 8,728 thousand, a decrease from RMB 33,567 thousand in 2022[16] - Other income surged by 66.1% from RMB 37.8 million in 2022 to RMB 62.7 million in 2023, mainly due to increased government subsidies[48] - Trade receivables within one year amounted to RMB 4,669 thousand as of December 31, 2023[31] - Construction and equipment prepayments decreased from RMB 29,459 thousand in 2022 to RMB 20,977 thousand in 2023[32] - Trade payables decreased from RMB 588,356 thousand in 2022 to RMB 445,558 thousand in 2023[34] - Total borrowings decreased from RMB 656,586 thousand in 2022 to RMB 643,346 thousand in 2023[37] - The company has no significant contingent liabilities as of December 31, 2023[65] - The company has not hedged its foreign exchange risk but manages it through regular reviews of its net foreign exchange exposure and may enter into forward contracts if necessary[63] - 10% of the net proceeds (HKD 70.6 million) are allocated for working capital and general corporate purposes, with HKD 45.4 million already utilized and HKD 25.2 million remaining, expected to be fully utilized by the end of March 2024[69] - The company will suspend share transfer registration from June 21, 2024, to June 26, 2024, for the Annual General Meeting[79] Market and Customer Information - No single customer accounted for more than 10% of the company's revenue in 2022 or 2023[13] - Over 90% of the company's revenue and operating profit comes from electric vehicle sales in China[13] - Electric bicycle sales revenue increased by 21.0% to RMB 2,699.9 million in 2023, with sales volume rising by 26.4%[44] - Electric scooter sales revenue decreased by 15.7% to RMB 1,021.4 million in 2023, primarily due to a 78.2% drop in sales of electric light motorcycles[44] - Battery sales revenue increased by 3.9% to RMB 1,093.6 million in 2023, with sales volume rising by 7.3%[44] - The company expanded its offline distribution network to 324 cities across 30 provinces in China as of December 31, 2023[38] - The company plans to expand and optimize its retail stores in mainland China, with HKD 127.2 million allocated, of which HKD 29.8 million has been utilized as of December 31, 2023[68]
绿源集团控股(02451) - 2023 - 年度业绩