Financial Performance - Revenue for 2023 reached RMB 5,082,982 thousand, a 6.3% increase from RMB 4,783,023 thousand in 2022[22] - Net profit for 2023 was RMB 145,607 thousand, up 23.3% from RMB 118,030 thousand in 2022[22] - Gross profit margin improved to 20.5% in 2023, up from 19.8% in 2022[22] - Revenue increased by 6.3% from RMB 4,783.0 million in 2022 to RMB 5,083.0 million in 2023[26] - Net profit grew by 23.4% from RMB 118.0 million in 2022 to RMB 145.6 million in 2023[26] - Gross profit rose by 21.4% from RMB 561.3 million in 2022 to RMB 681.2 million in 2023[26] - Total assets increased to RMB 3,862.4 million in 2023 from RMB 3,184.0 million in 2022[23] - Equity attributable to shareholders surged to RMB 1,527.6 million in 2023 from RMB 679.8 million in 2022[23] - The company's revenue in 2023 reached RMB 5,083.0 million, a 6.3% increase from RMB 4,783.0 million in 2022, driven by higher sales of electric two-wheelers and batteries[34] - Electric bicycle sales revenue increased by 21.0% to RMB 2,699.9 million in 2023, with sales volume rising by 26.4%[36] - 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[36] - Battery sales revenue grew by 3.9% to RMB 1,093.6 million in 2023, with sales volume increasing by 7.3%[36] - Gross profit increased by 21.4% to RMB 681.2 million in 2023, with gross margin rising from 11.7% to 13.4%[37] - Net profit for the year increased by 23.4% from RMB 118.0 million in 2022 to RMB 145.6 million in 2023[46] - Inventory decreased by 43.0% from RMB 445.7 million at the end of 2022 to RMB 254.0 million at the end of 2023, reflecting improved asset management efficiency[46] - Trade receivables increased by 10.1% from RMB 167.5 million at the end of 2022 to RMB 184.4 million at the end of 2023, driven by higher credit sales to institutional customers[47] - Property, plant, and equipment increased by 13.6% from RMB 844.1 million at the end of 2022 to RMB 958.6 million at the end of 2023, due to production scale expansion and equipment upgrades[49] - Total assets grew by 21.3% from RMB 3,184.0 million at the end of 2022 to RMB 3,862.5 million at the end of 2023, while total liabilities decreased by 6.8% from RMB 2,504.2 million to RMB 2,334.9 million[52] - The current ratio improved from 0.99x at the end of 2022 to 1.44x at the end of 2023, indicating enhanced liquidity[52] - Cash and cash equivalents increased by 151.9% from RMB 395.0 million as of December 31, 2022, to RMB 995.0 million as of December 31, 2023, primarily due to net proceeds from fundraising and operating cash flow[54] - Leverage ratio decreased from 97.3% as of December 31, 2022, to 42.6% as of December 31, 2023, mainly due to increased equity from the global offering[54] - Interest-bearing bank and other borrowings amounted to RMB 643.3 million as of December 31, 2023, representing 27.6% of total liabilities[54] - 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[55] - Total bank credit facilities amounted to RMB 1,665.0 million as of December 31, 2023, with RMB 921.6 million utilized[54] - Total employee expenses increased by 14.5% from RMB 412.4 million in 2022 to RMB 472.2 million in 2023, driven by increased headcount and salary adjustments[57] - 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 expenses, employee benefits, and e-commerce system fees[38] - Administrative expenses rose by 11.4% from RMB 89.1 million in 2022 to RMB 99.2 million in 2023, primarily due to increased employee benefits[39] - R&D costs grew by 25.8% from RMB 150.5 million in 2022 to RMB 189.4 million in 2023, mainly due to higher employee benefits and increased mold depreciation and design fees[40] - Other income surged by 66.1% from RMB 37.8 million in 2022 to RMB 62.7 million in 2023, largely due to increased government subsidies[41] Production and Capacity - The company operates three production facilities with an annual capacity exceeding 4 million electric two-wheelers as of December 31, 2023[3] - A new production facility in Chongqing is under construction, expected to increase annual capacity by 2 million units by 2026[3] - The company plans to build a new production facility in Chongqing in 2024 to meet market demand in the southwest region[27] - The company plans to expand production capacity, with the Chongqing factory expected to reach an annual capacity of 2 million units by 2026[31] - The company established Chongqing Luyuan with a registered capital of RMB 200 million to facilitate strategic development in Southwest China[60] - HKD 211.9 million allocated for enhancing production capacity, with HKD 6.3 million utilized and HKD 205.7 million remaining, to be fully utilized by the end of 2024[63] - HKD 84.8 million allocated for acquiring land use rights and constructing production facilities in Southwest China, with none utilized as of December 31, 2023, to be fully utilized by the end of 2024[63] - HKD 63.6 million allocated for capacity expansion at the Shandong plant, with HKD 3.7 million utilized and HKD 59.9 million remaining, to be fully utilized by the end of 2024[63] - HKD 63.6 million allocated for capacity expansion at the Guangxi plant, with HKD 2.6 million utilized and HKD 61.0 million remaining, to be fully utilized by the end of 2024[63] R&D and Innovation - The company's R&D expenses increased by 15% year-over-year, reflecting continued investment in technological advancements[22] - The company holds nearly 500 patents as of December 31, 2023[3] - The company launched the S-series electric vehicles with proprietary liquid-cooled 2.0 motors and upgraded solid-state controllers in 2023[26] - The company holds nearly 500 patents, leading the industry in invention patents, and launched the second-generation S-series electric two-wheelers in 2023[29] - The company aims to enhance its R&D capabilities, focusing on liquid-cooling technology and digital battery maintenance systems[31] - Net proceeds from the IPO allocated to enhancing R&D capabilities amount to HKD 211.9 million, with HKD 27.8 million utilized and HKD 184.1 million remaining as of December 31, 2023, to be fully utilized by the end of 2025[62] - HKD 169.5 million allocated for new and upgraded product R&D, with HKD 6.7 million utilized and HKD 162.8 million remaining, to be fully utilized by the end of 2024[62] - The company focuses on key technologies for electric two-wheelers, including motors, controllers, batteries, and chargers, enhancing product lifespan and safety[137] - Luyuan Group prioritizes R&D in lithium-ion battery safety and smart two-wheelers, investing in production equipment upgrades to ensure product quality[137] Market and Sales - The company has over 1,400 distributors and approximately 13,000 retail stores across 324 cities in 30 provincial-level regions[3] - The company's market share in the electric two-wheeler industry grew by 2.5 percentage points in 2023[22] - The offline distribution network expanded to cover 324 cities across 30 provincial-level regions in China as of December 31, 2023[28] - The company plans to expand its international market presence, particularly in Southeast Asia, Europe, and the United States[33] - The company will continue to optimize its sales and distribution network, leveraging social media to drive offline traffic and support dealers in key regions[33] - HKD 211.9 million allocated for strengthening sales and distribution channels, with HKD 68.9 million utilized and HKD 143.1 million remaining, to be fully utilized by the end of 2024[62] - HKD 127.2 million allocated for expanding and optimizing retail stores in mainland China, with HKD 29.8 million utilized and HKD 97.4 million remaining, to be fully utilized by the end of 2024[62] - Luyuan Group has over 1,400 dealers in mainland China, covering 324 cities across 30 provincial-level administrative regions as of December 31, 2023[137] Corporate Governance and Leadership - The company successfully listed on the Hong Kong Stock Exchange on October 12, 2023, with a net proceeds of approximately HKD 706.4 million from the global offering[3] - Ni Mr. has over 34 years of experience in product development, including over 25 years in the electric two-wheeler industry[68] - Hu Ms. owns 131,200,000 shares through Apex Marine, representing approximately 30.75% of the company's total issued share capital[69] - Hu Ms. and Ni Mr. each own 50% of Best Expand, which holds 15,264,000 shares, representing approximately 3.58% of the company's total issued share capital[69] - Ni Mr. owns 131,200,000 shares through Drago Investments, representing approximately 30.75% of the company's total issued share capital[69] - Hu Ms. is deemed to own or control 277,664,000 shares, representing approximately 65.08% of the company's total issued share capital[69] - Hu Ms. has over 25 years of experience in the electric two-wheeler industry[70] - Chen Mr. is responsible for the company's financial and capital management, as well as product risk control[71] - Chen Mr. has been serving as the Vice President of Zhejiang Luyuan Electric Vehicle Co., Ltd. since January 2012[71] - Wu Mr. has over 15 years of auditing experience and is a partner at Zhonghua Certified Public Accountants[72] - Wu Mr. has been the head of Zhonghua Certified Public Accountants' Anhui branch since 2014[72] - Mr. Wu has served as an independent director for four companies since 2018, including Nanji E-Commerce Co., Ltd. (SZSE: 002127), Anhui Anruisheng New Energy Co., Ltd. (NEEQ: 834489), Yiwu Technology Co., Ltd., and Anhui Jingsai Technology Co., Ltd. (NEEQ: 871981)[73] - Mr. Wu has been a certified Chinese CPA since June 2001 and graduated from Southwest University of Finance and Economics in September 2004[73] - Mr. Peng, appointed as an independent non-executive director in July 2022, has extensive experience in market, consumer, and corporate operations, having worked at PepsiCo (China) Ltd., Standard Chartered Bank, and the NBA[73] - Mr. Peng holds a bachelor's degree in relay protection and power system automation engineering from Northeast Electric Power University (1983) and an MBA from the State University of New York (1991)[74] - Mr. Liu, appointed as an independent non-executive director in July 2022, has over 25 years of experience in the telecommunications industry, including roles at Nanjing Zhongxing Software and Shanghai Zhongxing Yilian Communications[75] - Mr. Liu holds a bachelor's degree in engineering from Tsinghua University (1996) and an MBA from CEIBS (2014)[75] - Mr. Chen, appointed as an independent non-executive director in June 2023, has over 20 years of experience in finance and accounting, including roles at Ernst & Young, BOCI, and CITIC Securities[75] - Mr. Chen holds a bachelor's degree in business administration from HKUST (2001) and is a member of the Hong Kong Institute of Certified Public Accountants since October 2005[77] - Mr. Chen Wensheng, appointed as Vice President in December 2013, oversees the company's R&D efforts, including product and technology development, and has held various technical and managerial roles since joining the company in 2003[78] - Mr. Ding Xiao, appointed as Vice President in December 2013, manages domestic sales channels and has been with the company since 2006, holding roles in brand management and marketing[78] - The company has established four board committees, including the Audit Committee, Remuneration Committee, Nomination Committee, and Strategy and Investment Committee, to oversee specific aspects of the company's affairs[83] - The board consists of three executive directors, one non-executive director, and four independent non-executive directors, ensuring compliance with regulatory requirements for board composition[83] - The company has adopted a Board Diversity Policy to ensure a balance of skills, experience, and perspectives among board members, supporting the execution of business strategies and enhancing board efficiency[85] - The board consists of 1 female member and 6 male members, including 3 executive directors, 1 non-executive director, and 4 independent non-executive directors[86] - The company aims to have 2 female directors or achieve 20% female representation on the board by proposing the appointment of Ms. Ni Boyuan as a director at the 2024 annual general meeting[86] - As of December 31, 2023, the ratio of female to male employees (including senior management) is approximately 35% to 65%[87] - The company has implemented recruitment and selection procedures to consider diverse candidates and established talent management and training programs to promote employee diversity[87] - The board has appointed 4 independent non-executive directors, complying with the requirement that at least one-third of the board members are independent non-executive directors[88] - Independent non-executive directors have the right to request additional information and documents from management and seek external professional advice at the company's expense[91] - The company does not grant performance-based equity compensation (e.g., stock options or grants) to independent non-executive directors to maintain their objectivity and independence[92] - The board has reviewed the implementation of the above mechanisms and found them to be effective and sufficient as of December 31, 2023[92] - Each newly appointed director has received necessary onboarding and materials to ensure a comprehensive understanding of the company's operations, business, and relevant legal duties[94] - The company holds regular seminars to update directors on the latest developments and changes in listing rules and other relevant legal and regulatory requirements[94] - Directors receive regular updates on the company's performance, status, and prospects to fulfill their duties effectively[94] - The Chairman and CEO roles are separate, with Mr. Ni as Chairman responsible for strategy and management oversight, and Ms. Hu as CEO responsible for overall management and operations[96] - Executive directors have service contracts with an initial fixed term of three years starting from September 24, 2023, subject to rotation and re-election according to the articles of association and listing rules[97] - The company holds at least four Board meetings annually, with notices issued at least 14 days in advance for regular meetings[98] - Board and committee meeting minutes are detailed and distributed to all directors for review and record-keeping[98] - Since listing on October 12, 2023, the company has held Audit, Nomination, Remuneration, Strategy & Investment Committee, and Board meetings to review and approve the 2023 financial statements[98] - Directors' attendance records for Board, committee, and general meetings are summarized, showing full attendance for most meetings[99] - The company has adopted the Model Code for Securities Transactions and confirmed that all directors have complied with the code since the listing date[100] - The Board of Directors retains decision-making authority over all major matters, including policy approval, overall strategy, internal control, and significant transactions[101] - The Board is responsible for reviewing and monitoring compliance with legal and regulatory requirements, as well as the training and continuous professional development of directors and senior management[102] - The Audit Committee reviewed the Group's annual financial statements and the external auditor's report on major accounting issues and audit findings for the year ended December 31, 2023[105] - The Audit Committee discussed the effectiveness of the Group's financial reporting system, risk management, and internal control systems[105] - The Audit Committee reviewed and approved the remuneration and engagement terms of the external auditor and made recommendations to the Board[105] - The Nomination Committee reviewed the structure, size, and composition of the Board, including the re-election of directors and the assessment of independent non-executive directors' independence[107] - The Nomination Committee discussed the Board diversity policy and its implementation, as well as the director nomination policy[107] - The company has adopted a Director Nomination Policy outlining the selection criteria and procedures for appointing new directors, including diversity considerations such as gender, skills, age, and cultural background[108] - The Remuneration Committee consists of three members, chaired by independent non-executive director Mr. Liu Bobin, with executive director Ms. Hu and independent non-executive director Mr. Wu Xiaoya as members[109] - The Remuneration Committee is responsible for reviewing and approving the remuneration policies and structures for directors and senior management, including stock options, non-monetary benefits, and pension rights[110] - The Remuneration
绿源集团控股(02451) - 2023 - 年度财报