YADEA(01585)2024-04-24 08:30Financial Performance - Revenue for 2023 reached RMB 34,762.76 million, a significant increase from RMB 31,059.44 million in 2022[7] - Gross profit for 2023 was RMB 5,885.24 million, up from RMB 5,614.01 million in 2022[7] - Net profit attributable to owners of the company for 2023 was RMB 2,640.16 million, compared to RMB 2,161.09 million in 2022[7] - Revenue increased by 11.9% to RMB 34,762.8 million in 2023 from RMB 31,059.4 million in 2022, driven by strong sales of electric bicycles, batteries, and chargers[10][12] - Gross profit increased by 4.8% from RMB 5,614.0 million in 2022 to RMB 5,885.2 million in 2023, while the gross profit margin decreased from 18.1% in 2022 to 16.9% in 2023[16] - Net profit increased by 20.9% from RMB 2,183.0 million in 2022 to RMB 2,640.2 million in 2023[16] - Revenue for the year increased to RMB 34,762,757 thousand, up from RMB 31,059,443 thousand in the previous year[124] - Gross profit rose to RMB 5,885,240 thousand, compared to RMB 5,614,011 thousand in 2022[124] - Operating profit improved to RMB 3,132,082 thousand, up from RMB 2,707,591 thousand in the prior year[124] - Net profit attributable to the company's owners increased to RMB 2,640,158 thousand, compared to RMB 2,161,094 thousand in 2022[124] - Basic earnings per share grew to RMB 88.5 cents, up from RMB 74.0 cents in the previous year[124] - Total comprehensive income for the year was RMB 2,622,419 thousand, compared to RMB 2,235,948 thousand in 2022[126] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 25,660.10 million, up from RMB 24,952.69 million in 2022[8] - Total liabilities as of December 31, 2023, decreased to RMB 17,258.89 million from RMB 18,310.09 million in 2022[8] - Total equity as of December 31, 2023, increased to RMB 8,401.21 million from RMB 6,642.59 million in 2022[8] - Cash and cash equivalents increased by 16.7% from RMB 6,782.6 million at the end of 2022 to RMB 7,913.8 million at the end of 2023[16] - Total assets increased to RMB 25,660,098 thousand, compared to RMB 24,952,686 thousand at the end of 2022[127] - Cash and cash equivalents rose to RMB 7,913,807 thousand, up from RMB 6,782,622 thousand in the prior year[127] - Property, plant, and equipment increased to RMB 3,940,277 thousand, compared to RMB 3,291,228 thousand in 2022[127] - Inventory decreased to RMB 955,438 thousand, down from RMB 1,458,049 thousand at the end of the previous year[127] - Total liabilities decreased to RMB 17,258,892 thousand in 2023 from RMB 18,310,092 thousand in 2022[128] - Non-current liabilities increased to RMB 862,602 thousand in 2023 from RMB 789,706 thousand in 2022[128] - Current liabilities decreased to RMB 16,396,290 thousand in 2023 from RMB 17,520,386 thousand in 2022[128] - Net asset value increased to RMB 8,401,206 thousand in 2023 from RMB 6,642,594 thousand in 2022[128] - Total equity increased to RMB 8,401,206 thousand in 2023 from RMB 6,642,594 thousand in 2022[128] - Retained earnings increased to RMB 4,631,819 thousand in 2023 from RMB 2,161,094 thousand in 2022[130] - Other reserves decreased to RMB (185,819) thousand in 2023 from RMB (243,596) thousand in 2022[130] - Share-based payment reserve increased to RMB 176,509 thousand in 2023 from RMB 186,431 thousand in 2022[130] - Translation reserve increased to RMB 52,313 thousand in 2023 from RMB 70,052 thousand in 2022[130] - Legal reserve increased to RMB 280,065 thousand in 2023 from RMB 227,220 thousand in 2022[130] Production and Distribution - The company's annual production capacity for electric two-wheelers reached 20 million units as of December 31, 2023[5] - The domestic distribution network covered nearly all administrative regions in China, with over 40,000 sales points as of December 31, 2023[5] - The company has established distribution channels in over 90 countries across Europe, Southeast Asia, South America, and Central America[5] - Total sales of electric two-wheelers reached 16.5 million units in 2023, a 17.9% increase from the previous year, including 4.9 million electric scooters and 11.6 million electric bicycles[10] - The company launched 33 new electric bicycle models and 16 new electric scooter models in 2023, featuring enhanced design, smart functions, and advanced performance[10] - Yadea introduced its first-generation sodium-ion battery, "Extreme Sodium 1," in 2023, offering superior safety, longer lifespan, faster charging, and excellent low-temperature durability[10] - The company expanded its distribution network to over 90 countries, including Europe, Southeast Asia, South America, and Central America[11] - Yadea's domestic distribution network in China included over 4,000 distributors and more than 40,000 sales outlets as of December 31, 2023[11] - The company plans to establish a new production facility in Vietnam with an annual capacity of 2 million electric motorcycles, with 30% of production targeted for export to Southeast Asian markets[11] - Revenue from electric bicycles accounted for 45.9% of total revenue in 2023, with sales reaching 11.56 million units, a 28.8% increase from 2022[13] - Battery and charger sales contributed 26.6% of total revenue in 2023, with battery sales reaching 17.27 million units and charger sales reaching 15.28 million units[13] - Electric scooter sales decreased by 1.5% from approximately 5,034,000 units in 2022 to approximately 4,960,000 units in 2023, while electric bicycle sales increased by 28.8% from approximately 8,976,000 units in 2022 to approximately 11,561,000 units in 2023[14] - Total segment revenue increased from RMB 31,059.4 million in 2022 to RMB 34,762.8 million in 2023, with the electric two-wheel vehicle and accessories segment contributing RMB 34,543.6 million and the battery segment contributing RMB 4,631.3 million[15] Research and Development - The company holds over 1,900 patents and employs more than 1,000 R&D experts[5] - R&D expenses increased by 7.8% from RMB 1,105.8 million in 2022 to RMB 1,192.0 million in 2023[16] - The company plans to focus on R&D for core component technologies to enhance product differentiation and cost efficiency[83] Financial Expenses and Costs - Financial expenses decreased by 25.5% from RMB 59.4 million in 2022 to RMB 44.2 million in 2023, primarily due to reduced interest expenses from decreased bank borrowings[17] - Sales and distribution expenses increased by 5.7% from RMB 1,358.2 million in 2022 to RMB 1,435.5 million in 2023[16] - Administrative expenses increased by 23.4% from RMB 896.1 million in 2022 to RMB 1,105.4 million in 2023[16] - The company's total borrowings as of December 31, 2023, were RMB 267.3 million, with interest rates ranging from 0.9% to 2.02%[16] - Total employee costs increased by 16.9% to RMB 2,707.6 million in 2023, driven by higher headcount and average salaries[18] Cash Flow - Operating cash flow for the year ended December 31, 2023, was RMB 3,992,126 thousand, an increase from RMB 3,375,012 thousand in 2022[132] - Net cash from operating activities in 2023 was RMB 3,580,146 thousand, compared to RMB 3,078,429 thousand in 2022[132] - Net cash used in investing activities in 2023 was RMB 430,314 thousand, a significant decrease from RMB 2,055,994 thousand in 2022[132] - Net cash used in financing activities in 2023 was RMB 2,036,894 thousand, compared to RMB 379,389 thousand in 2022[132] - Cash and cash equivalents at the end of 2023 were RMB 7,913,807 thousand, up from RMB 6,782,622 thousand at the end of 2022[132] Corporate Governance - The board of directors consists of 8 members, including 3 executive directors, 1 non-executive director, and 4 independent non-executive directors[27] - Three new independent non-executive directors, Chen Mingyu, Ma Chenguang, and Liang Qin, were appointed on June 16, 2023[28] - The company renewed service contracts with executive directors Dong Jingui, Qian Jinghong, and Shen Yu for three years starting from May 19, 2022[29] - Three independent non-executive directors, Li Zongwei, Wu Biguang, and Yao Naisheng, resigned on June 16, 2023[30] - All directors participated in continuous professional development in 2023, including attending courses/seminars and reading regulatory materials[31] - The attendance of directors at board and committee meetings, as well as shareholder meetings, is recorded for the year ended December 31, 2023[34] - The company has established a mechanism to ensure the Board has a strong independent element, enabling effective independent judgment to better protect shareholder interests[38] - The Board consists of a majority of non-executive directors, with at least one independent non-executive director possessing appropriate professional qualifications or expertise in accounting or financial management[38] - The nomination committee annually evaluates the independence of independent non-executive directors to ensure they can continue to make independent judgments[38] - Directors, including independent non-executive directors, can seek independent professional advice at the company's expense to assist in fulfilling their duties[38] - The Board reviews the time commitment and attendance of independent non-executive directors at Board and committee meetings to ensure they dedicate sufficient time to their duties[38] - The roles of Chairman and CEO are clearly separated, with Mr. Dong Jinggui serving as Chairman and Ms. Qian Jinghong as CEO, ensuring a balance of power and authority[39] - The company has written documentation clearly defining the division of responsibilities between the Chairman and CEO[39] - The Board believes that the operation of the Board, including executive, non-executive, and independent non-executive directors, maintains a balance of power and authority[39] - The company's dividend policy aims to provide shareholders with an ideal and reasonable dividend return, considering factors such as actual and expected financial performance, legal and compliance restrictions, and overall business conditions[40] - The company's board of directors consists of seven members, including two executive directors, one non-executive director, and four independent non-executive directors[40] - The company's gender diversity ratio as of December 31, 2023, was approximately 68% male and 32% female across all employees, including senior management[42] - The company has three female directors, achieving female representation on the board[43] - The company's nomination committee is responsible for reviewing the board's structure, size, and composition, and making recommendations for any changes[40] - The company's dividend policy allows for the payment of interim dividends in cash or shares, subject to the company's available profits and compliance with the articles of association[42] - The company's board diversity policy, adopted on April 22, 2016, emphasizes the benefits of board diversity and considers factors such as professional experience, gender, age, race, and cultural background when appointing directors[42] - The company's nomination policy ensures a balanced board in terms of skills, experience, knowledge, and diverse perspectives, aligning with the company's business needs[42] - The Nomination Committee held 1 meeting in 2023 to review the structure, size, and composition of the Board, the independence of independent non-executive directors, and the qualifications of retiring directors for re-election at the 2023 Annual General Meeting[45] - The Remuneration Committee consists of 4 members, including 1 non-executive director and 3 independent non-executive directors, and held 2 meetings in 2023 to review and recommend remuneration policies, determine executive and senior management compensation, and discuss employee stock option grants[46][47] - Senior management compensation for 2023 ranged as follows: 3 individuals earned between RMB 1,500,001 and RMB 2,000,000, and 2 individuals earned over RMB 2,000,000[47] - The Audit Committee, composed of 4 independent non-executive directors and 1 non-executive director, reviewed the Group's financial reporting procedures, internal control systems, and risk management, including the consolidated financial statements for the year ended December 31, 2023[48] - The Nomination Committee evaluates candidates for directorship based on diversity, commitment, qualifications, independence, reputation for integrity, and potential contributions to the Board[44] - The Remuneration Committee's terms of reference were revised and adopted by the Board on December 2, 2022, and are available on the company's website and the Stock Exchange's website[46] - The Audit Committee is responsible for overseeing the financial reporting process, internal control systems, and risk management, and ensuring arrangements are in place for employees to report concerns about financial reporting or other misconduct[48] - The Nomination Committee follows a structured process for recommending director appointments, including preparing a skills and experience list, sourcing candidates through various channels, conducting interviews, and making recommendations to the Board[44] - The Remuneration Committee's responsibilities include establishing transparent procedures for determining executive and senior management compensation and aligning remuneration policies with the Board's corporate objectives[46] - The Audit Committee discussed and reviewed the Group's accounting principles, risk management, internal controls, and financial reporting matters, including the consolidated financial statements for the year ended December 31, 2023[48] - The company's audit committee held three meetings during the year ended December 31, 2023, to review financial statements, annual reports, and other governance matters[50] - The company paid a total of RMB 6,749,000 to its external auditors for audit and non-audit services during the year ended December 31, 2023, with RMB 6,300,000 for audit services and RMB 449,000 for non-audit (tax) services[53] - The board of directors confirmed its responsibility for preparing the company's financial statements for the year ended December 31, 2023, and ensuring compliance with listing rules and regulatory requirements[51] - The company's risk management and internal control systems are designed to identify, assess, and report potential risks, with a focus on mitigating risks related to achieving business objectives[54] - The audit committee reviewed the company's financial reporting system, risk management, and internal control procedures for the year ended December 31, 2023[50] - The company's external auditors provided a statement on their reporting responsibilities for the financial statements in the independent auditor's report[52] - The board of directors is responsible for maintaining a robust and effective risk management and internal control system to protect shareholders' investments and company assets[54] - The company's management is responsible for providing necessary explanations and information to the board for informed assessment of financial statements[51] - The audit committee reviewed the company's unaudited interim financial statements for the six months ended June 30, 2023[50] - The company's risk management system includes a comprehensive financial accounting system to ensure compliance with relevant rules and provide performance metrics[54] - The company has established four risk categories: strategic risk, financial risk, operational risk, and legal risk, with a focus on identifying and managing these risks through qualitative and quantitative analysis[55] - The Board of Directors conducts regular reviews of the risk management and internal control systems, ensuring their effectiveness and adequacy in managing resources, employee qualifications, and training programs[55] - The company maintains effective communication with shareholders through various channels, including interim reports, annual reports, shareholder meetings, and updates on the company's website[56] - The company organizes investor engagement activities, including site visits to headquarters, production bases, and product exhibitions, to enhance investor understanding of the business[56] - The company's joint company secretaries, Mr. Shen Yu and Mr. Leung Chi Kit, have completed at least 15 hours of professional training to update their technical knowledge and skills[56] - The Board of Directors is not aware of any significant uncertainties that could cast doubt on the company's ability to continue as a going concern[57] - Shareholders holding at least 10% of the issued share capital can request the Board to convene an extraordinary general meeting within 21 days of submitting the request[58] - Shareholders can propose resolutions for consideration at general meetings by submitting written proposals to the Board, which will be reviewed for suitability and presented at the next appropriate meeting[59] - Shareholders can submit inquiries to the board via mail or email, with signed written requests required for processing[60] - No changes were made to the company's charter documents as of December 31, 2023[61] - The company has established a system for timely disclosure of insider information in compliance with regulatory requirements[61] - The company actively implements policies on environmental, social, and governance (ESG) issues and continuously reviews its sustainability efforts[62] Shareholder and Equity Information - The company's distributable reserves as of December 31, 2023, amounted to