Electric Vehicle (EV) Strategy - The company aims to transform into a comprehensive electric vehicle (EV) technology solutions provider, leveraging the growth momentum of China's new energy vehicle market[7]. - The acquisition of GLM Co., Ltd. in 2017 marked the company's entry into the EV sector, focusing on powertrain technology and engineering solutions[8]. - Investment in Divergent Technologies, Inc. established 3D metal printing technology as an innovative method for automotive manufacturing, significantly reducing capital expenditure and improving profit margins[9]. - The company recognizes a significant shortage in EV charging infrastructure in China, with plans to invest in EV Power Holding Limited to capitalize on this market potential[10]. - A joint venture with Shanghai United Investment Co., Ltd. aims to produce at least 10,000 electric vehicles annually using Divergent's design and 3D printing technology[12]. - The company plans to expand its EV-related business, including charging solutions, in response to supportive government policies in China[14]. - The company aims to leverage synergies from its investments to enhance its position in the electric vehicle market and expand its value chain[24]. - The company plans to establish a joint venture in Shanghai to design and assemble electric vehicles, targeting an annual production capacity of at least 10,000 vehicles[23]. - The company plans to leverage the investment in TOM Group Limited to create synergies and potential collaboration opportunities in the electric vehicle charging business across China[53]. - Approximately 90% of the net proceeds from the December 2018 subscription, estimated at HKD 152,300,000, will be used for potential acquisitions or investments in electric vehicle-related businesses or technologies[56]. Financial Performance - The company's revenue increased by approximately 31.4% year-on-year to about HKD 717 million, compared to HKD 545.5 million in the previous year[27]. - The gross profit for the year was approximately HKD 215 million, with a gross margin of about 30.0%, down from 41.0% in 2017[27]. - The operating loss for the year was HKD (103,522,000), an improvement from a loss of HKD (698,162,000) in the previous year[92]. - The pre-tax loss for the year was HKD (109,107,000), compared to a loss of HKD (702,280,000) in 2017, indicating a significant reduction in losses[92]. - The net loss attributable to the company's owners was HKD (94,096,000), down from HKD (700,128,000) in the prior year, reflecting a 86.6% improvement[92]. - Other income and net gains increased by approximately 34.1% to about HKD 86,900,000 from approximately HKD 64,800,000 last year, mainly due to fair value gains on financial assets[28]. - Sales and distribution expenses decreased by approximately 21.2% to about HKD 36,300,000 from approximately HKD 46,100,000 last year, attributed to stricter cost control measures[28]. - General and administrative expenses increased by approximately 109.4% to about HKD 252,000,000 from approximately HKD 120,300,000 last year, primarily due to an increase in share-based payments related to the company's share option plan[28]. Investments and Acquisitions - The company invested in EV Power, acquiring a total of 9,019,918 ordinary shares and 81,700,524 preferred shares, holding approximately 35.79% of EV Power's issued share capital[22]. - The company also invested in Divergent, holding about 30% of its issued share capital, which focuses on 3D printing technology for automotive structures[20]. - The net proceeds from the December 2017 subscription amounted to approximately HKD 376,000,000, with about HKD 273,000,000 allocated for the investment in Divergent[50]. - The remaining net proceeds from the December 2017 subscription are intended for general working capital and future investment opportunities[50]. - The company aims to solidify its foundation in the electric vehicle industry through the funds raised from the December 2018 subscription[56]. Corporate Governance and Management - The company has appointed Mr. He Zhijie as the CEO since October 9, 2017, responsible for overall management, business strategy, and M&A activities[64]. - The company has a strong board with members holding significant experience in finance and corporate governance, including Mr. Zhang Zhenming, who has over 21 years of accounting and finance experience[69]. - The company emphasizes corporate governance, with multiple committees in place, including audit and remuneration committees[69]. - The company has a diverse management team with expertise across various industries, including consumer products, retail, and telecommunications[65]. - The company has been actively involved in mergers and acquisitions, with Mr. He leading acquisition activities in the Greater China region[65]. - The company has established an Investment Committee to oversee investment strategies and decisions[191]. - The board consists of six members, three of whom are independent non-executive directors, contributing to a diverse governance structure[187]. - The company has adopted a board diversity policy since September 1, 2013, considering various factors such as age, cultural background, and professional experience[187]. Employee and Operational Insights - The total employee count as of September 30, 2018, was 240, an increase from 215 in the previous year[58]. - Employee costs for the year amounted to approximately HKD 173,000,000, significantly up from HKD 49,100,000 in the previous year[58]. - The company is committed to providing a safe and fair working environment, promoting employee development, and ensuring competitive compensation and benefits[80]. - The company emphasizes the importance of maintaining strong relationships with employees, customers, and business partners to support ongoing development[80]. Risk Management and Compliance - The company continues to face significant business risks primarily due to its operations being concentrated in China, which may impact future performance[84]. - Financial risk management details are provided in the financial statements, indicating a structured approach to managing potential financial uncertainties[85]. - The company has confirmed compliance with applicable laws and regulations without significant violations impacting operations[151]. - The company has complied with the code regarding risk management and internal control systems, ensuring their effectiveness and sufficiency[195]. Shareholder Relations - The management team is committed to seizing market opportunities to deliver optimal returns for shareholders[14]. - The company expresses gratitude to shareholders and partners for their continued support and trust[14]. - The company did not recommend any dividend payment for the year, consistent with last year[40]. - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the year[102].
APOLLO出行(00860) - 2018 - 年度财报