Market Growth Projections - The global luxury car market is projected to grow from $582.19 billion in 2023 to $623.9 billion in 2024, representing a year-on-year increase of 7.2%[9]. - The global high-performance car market is expected to grow from $19.16 billion in 2023 to $25.6 billion in 2024, with a year-on-year growth rate of 33.6%[7]. - In China, the luxury car market is estimated to reach $161.55 billion in 2024, with a compound annual growth rate (CAGR) of 2.0% until 2031[10]. - The global new energy vehicle market is valued at approximately $1,328.08 billion in 2024, with a projected CAGR of 32.5% from 2025 to 2030[12]. - In 2024, sales of new energy vehicles in China exceeded 11 million units, accounting for nearly two-thirds of global registrations, reflecting a year-on-year increase of over 40%[12]. - The Japanese new energy vehicle market is projected to grow from approximately USD 43.32 billion in 2024 to about USD 94.51 billion by 2029, driven by government incentives and increasing environmental awareness[19]. - The global top-tier supercar market is projected to reach $84.76 billion by 2029, with a compound annual growth rate (CAGR) of 26.0% from 2025 to 2029[28]. Company Strategy and Innovation - The company is focusing on innovation in lightweight composite materials and hybrid power systems to enhance vehicle performance and safety[7]. - The company is committed to sustainable transportation solutions, aligning with global trends towards electrification and stricter emission regulations[12]. - The company plans to invest in R&D to ensure the Apollo supercar series incorporates cutting-edge technology and unparalleled performance, funded by proceeds from various subscription agreements and the sale of Divergen[15]. - The company aims to redefine luxury and performance standards in the luxury electric vehicle market, which is expected to grow significantly post-2025[30]. - The investment in Divergent Technologies Inc. is expected to create synergies with the company's mobility business, leveraging patented 3D printing technology for vehicle structures[43]. - The company aims to utilize its proprietary electric vehicle technology to establish strong synergies with EV Power, enhancing the overall value chain in mobility[42]. Financial Performance - Revenue for the year ended December 31, 2024, increased by approximately 21.8% to about HKD 340,200,000, compared to approximately HKD 279,200,000 for the previous year[34]. - The company's gross profit for the year was approximately HKD 15,700,000, with a gross margin of about 4.6%, down from 22.6% in the previous year[35]. - The company reported a net loss attributable to shareholders of approximately HKD 1,538,300,000 for the year, compared to a loss of HKD 860,500,000 in the previous year, indicating a significant increase in losses[39]. - The impairment of goodwill was recognized at approximately HKD 646,100,000, up from HKD 410,200,000 in the previous year, primarily due to increased competition in the mobility industry and global economic uncertainties[37]. - The company confirmed an impairment loss of approximately HKD 201,300,000 for other receivables, which included HKD 165,300,000 for bills receivable and HKD 35,900,000 for consideration receivable[38]. - The total current assets and current liabilities as of December 31, 2024, are approximately HKD 1,549,800,000 and HKD 854,700,000, respectively, compared to HKD 719,300,000 and HKD 524,800,000 as of December 31, 2023[53]. - The group’s cash and cash equivalents amounted to approximately HKD 464,800,000 as of December 31, 2024, a significant increase from HKD 64,300,000 as of December 31, 2023[53]. - The group’s asset-liability ratio as of December 31, 2024, is approximately 0.8%, down from 1.1% as of December 31, 2023[56]. - The group has no write-offs of receivables as of December 31, 2024, indicating effective credit risk management[50]. Share Issuance and Capital Structure - The company completed a share placement on January 24, 2024, issuing 96,130,985 shares at HKD 0.51 each, enhancing its capital structure[21]. - A subsequent share placement on May 13, 2024, involved the issuance of 445,652,177 shares at HKD 0.46 each, further optimizing the company's equity structure[23]. - The company issued HKD 300,000,000 of 5% convertible bonds, with net proceeds of approximately HKD 299,200,000 intended for R&D of supercars and electric vehicles[25]. - The company sold 4,931,588 shares of Divergent Technologies Inc., representing approximately 12.87% of its total issued shares, for a total consideration of $101,533,292.15 (approximately HKD 793,000,000)[24]. - The net proceeds from the sale are expected to be approximately HKD 790,000,000, with around HKD 711,000,000 allocated for R&D of high-performance supercars and electric vehicles[24]. Corporate Governance and Management - The company has complied with the corporate governance code as per the listing rules during the year[128]. - The board of directors includes a mix of executive and independent non-executive directors, ensuring independence and accountability[153]. - The company has established a corporate governance committee to review policies and ensure compliance with legal and regulatory requirements since November 24, 2017[158]. - The audit committee consists of independent non-executive directors, with Li Qiao En appointed as the chairperson effective June 13, 2024[162]. - The company has appointed Mr. Xu Jinying as the executive director and chairman of the board since September 20, 2023[138]. - The company has maintained sufficient public float as per listing rules prior to the report's publication[127]. - The board is committed to maintaining high levels of business integrity and corporate governance practices to enhance shareholder value[150]. Employee and Talent Management - The company aims to attract and retain top talent through the Share Option Scheme, which was designed to incentivize employees and promote business success[103]. - The total employee cost for the year was approximately HKD 48,800,000, down from HKD 66,600,000 in the previous year[65]. - The total employee gender ratio is approximately 2.2:1 (male to female), with efforts to improve female representation in senior positions[173]. - The company aims to provide training and support to enhance the competitiveness of female employees in the traditionally male-dominated automotive industry[173]. Risk Management and Compliance - The company identified various financial and operational risks, particularly related to its operations primarily located in China[77][78]. - The audit committee has reviewed the effectiveness of the company's risk management and internal control systems, confirming their adequacy for the fiscal year ending December 31, 2024[184]. - The company has no internal audit department but considers hiring external professionals for internal audit functions to meet its needs cost-effectively[183]. - The company continues to monitor foreign exchange risks, primarily from sales and purchases in HKD, RMB, EUR, and JPY, without significant operational difficulties anticipated[60].
APOLLO出行(00860) - 2024 - 年度财报