YADEA(HK:01585)2021-04-27 09:00Financial Performance - Yadea sold approximately 10,803,323 electric two-wheelers in 2020, including 5,578,973 electric scooters and 5,224,350 electric bicycles, representing a growth of approximately 77.3% compared to the previous year[20]. - The company's revenue for 2020 increased by approximately 61.8% to RMB 19,360.3 million, up from RMB 11,968.2 million in 2019[20]. - Gross profit rose by approximately 47.9% to RMB 3,073.2 million in 2020, compared to RMB 2,078.1 million in 2019, driven by increased demand for personalized short-distance travel[20]. - The company achieved a profit before tax of RMB 1,186.8 million in 2020, significantly higher than RMB 600.2 million in 2019[17]. - Profit attributable to owners increased by approximately 89.6% to about RMB 957.4 million for the year ended December 31, 2020[145]. - Operating profit increased to RMB 1,193,700 thousand from RMB 602,432 thousand, reflecting a significant rise of approximately 98.5%[185]. - Net profit for the year was RMB 959,289 thousand, up from RMB 508,692 thousand in 2019, marking an increase of around 88.2%[187]. Assets and Liabilities - The total assets of Yadea as of December 31, 2020, were RMB 16,016.4 million, an increase from RMB 10,707.3 million in 2019[18]. - Total liabilities stood at RMB 12,413.5 million as of December 31, 2020, compared to RMB 7,639.7 million in 2019[18]. - The company's cash and cash equivalents reached RMB 3,420,934 thousand, up from RMB 2,636,553 thousand in 2019, indicating an increase of about 29.8%[189]. - The debt-to-equity ratio as of December 31, 2020, was 2.7%, compared to zero on December 31, 2019[36]. Production and Operations - The company operates seven self-owned production facilities with an annual production capacity of approximately 15 million units, supported by over 8,000 employees[11]. - The distribution network covers nearly all administrative regions in China, consisting of 2,955 distributors and over 17,000 sales points as of December 31, 2020[11]. - The company sold over 670,000 units of the new "Crown" series electric scooters since its launch in August 2020[21]. - The company has a strong R&D team of 626 professionals focused on electric two-wheelers, enhancing its product design capabilities[11]. Environmental Impact - Total greenhouse gas emissions for 2020 amounted to 23,809.85 tons of CO2 equivalent, with a per-unit emission of 2.48 kg CO2 equivalent[55]. - Total wastewater discharge increased from 272,977.66 tons in 2019 to 371,993.30 tons in 2020, representing a 36% increase[56]. - The total amount of hazardous waste generated rose from 352.70 tons in 2019 to 593.73 tons in 2020, indicating a significant increase[56]. - The company achieved compliance with all routine inspections by local environmental protection departments in 2020[52]. Research and Development - Research and development expenses rose by approximately 56.7% to RMB 605.2 million in 2020, driven by increased employee benefits and new product development projects[29]. - The total number of patent applications rose from 820 in 2019 to 1,006 in 2020, an increase of 22.7%[88]. - The graphene battery offers over 10% improved endurance compared to traditional batteries and has a cycle life exceeding 1,000 times, which is three times longer than standard batteries[90]. Corporate Governance - The board of directors consists of eight members, including three executive directors, one non-executive director, and four independent non-executive directors[102]. - The company has adopted high corporate governance standards, fully complying with the corporate governance code as of December 31, 2020[98]. - The company has established three committees: Nomination Committee, Remuneration Committee, and Audit Committee, to oversee specific aspects of its affairs[109]. Employee Management - Total employee count increased from 4,341 on December 31, 2019, to 8,184 on December 31, 2020, with total employee costs rising approximately 113.1% to RMB 1,141.1 million[38]. - The company reported zero fatalities and zero work-related injuries in both 2019 and 2020, indicating a strong safety performance[72]. - The company has implemented various internal measures to protect employee rights and ensure equal treatment in the workplace[65]. Market Strategy - The company plans to enhance brand influence, expand production capacity, and develop overseas markets in the future[21]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within the next two years[135]. - New product launches are anticipated, including a next-generation device expected to contribute an additional $100 million in revenue[134]. Social Responsibility - In 2020, the company donated RMB 30 million for medical supplies in response to the pandemic and provided approximately 10,000 electric two-wheelers to Hubei Province to enhance mobility for healthcare workers[96]. - The company is committed to fulfilling its social responsibilities through active implementation of environmental, social, and governance policies during the reporting period[132]. Financial Reporting and Audit - The independent auditor's report confirmed that the consolidated financial statements reflect the group's financial position accurately as of December 31, 2020[176]. - The audit report was issued by PwC, with the audit engagement partner being Li Yingjie[183]. - The auditors did not identify any significant misstatements in the other information provided in the annual report[180].