Automotive Market Trends - The global automotive market is projected to reach 66 million units in 2021, with electric vehicle sales showing a strong growth momentum, nearly 2.5 times the sales of the same period in 2020[7]. - In the first half of 2021, global electric vehicle sales reached approximately 2.6 million units, representing a year-on-year growth of 160%, with China accounting for about 1.1 million units, or 12% of the global total[7]. - The global passenger electric vehicle sales are expected to reach 5 million units by the end of 2021, indicating a compound annual growth rate of approximately 86% since 2011[8]. - The electric vehicle industry is expected to see strong growth momentum, driven by declining prices and increased model availability, with a significant market shift anticipated by 2030[47]. Company Growth and Strategy - The company continues to strengthen its market position as a leading mobility technology solutions provider, focusing on three main business pillars: engineering services outsourcing, technology development, and automotive manufacturing[14]. - The company completed the acquisition of Ideenion, a German automotive engineering service provider, enhancing its capabilities in advanced mobility solutions[15]. - A new production facility was opened in Wolfsburg, Germany, strategically located near Volkswagen's headquarters, to strengthen the company's position in the engineering services outsourcing market[18]. - The company aims to enhance its engineering services outsourcing business by strengthening collaborations with existing clients and exploring opportunities with new clients in the electric vehicle sector[48]. - The collaboration with WM Motor is expected to elevate the group's engineering services and new energy vehicle business to new heights, enhancing product design and quality[52]. Financial Performance - The company's revenue increased by approximately 47.8% year-on-year to about HKD 528.6 million, compared to HKD 357.7 million last year[55]. - Gross profit for the year was approximately HKD 131.5 million, with a gross margin of about 24.9%, down from 35.2% last year[56]. - The company reported a loss of approximately HKD 359.4 million for the year, unchanged from the previous year[59]. - The operating loss for the year was HKD (349,386,000), an increase from HKD (69,713,000) in the previous year[183]. - The net loss for the year was HKD (359,353,000), slightly lower than the loss of HKD (359,363,000) in 2020[183]. Investments and Capital Management - The company raised approximately HKD 374 million through the issuance of new shares, strengthening its financial position for future strategic partnerships[37]. - The group raised HKD 163.8 million (approximately USD 21 million) through the issuance of convertible bonds to expand into mobility technology solutions and related business opportunities[42]. - The company aims to strengthen its financial position and expand its capital base through the issuance of convertible bonds, which will not immediately dilute existing shareholders' equity[157]. - Approximately 90% (around HKD 76,500,000) of the funds will be used for investment opportunities to expand into automotive technology solutions and related businesses[159]. Research and Development - The R&D team achieved breakthroughs in developing proprietary technologies and updating existing technologies[19]. - The flat powertrain developed by Apollo Advanced Technology enables electric vehicles to operate on an 800V system, featuring a unique dual-motor layout for enhanced flexibility[20]. - The company is developing proprietary technologies, including a next-generation 800V silicon carbide dual inverter system, to solidify its leading position in the field[49]. Customer and Supplier Relationships - The top five customers accounted for approximately 39% of total sales, with the largest customer contributing about 17%[192]. - The top five suppliers represented around 67% of total procurement, with the largest supplier accounting for approximately 50%[193]. Employee and Operational Insights - As of September 30, 2021, the number of employees was 193, down from 204 in 2020[162]. - The company acknowledges the importance of maintaining good relationships with employees, customers, and business partners for sustainable development[171]. Licensing and Partnerships - An authorization agreement with De Tomaso Automobili Limited includes a minimum total licensing fee of USD 10,000,000 (approximately HKD 78,000,000)[199]. - The annual cap for licensing fees payable by De Tomaso to Apollo Automobil is set at USD 5,000,000 (approximately HKD 39,000,000) for the current year[200]. - The company plans to leverage the partnership with De Tomaso to enhance its business strategy for creating immediately usable platforms for future mobility[199].
APOLLO出行(00860) - 2021 - 年度财报