Financial Performance - Revenue for 2023 decreased to RMB 11,168,422 thousand, down from RMB 12,144,980 thousand in 2022[10] - Gross profit for 2023 was RMB 4,334,446 thousand, with a gross margin of 38.8%, compared to 43.3% in 2022[10] - Net profit for 2023 was RMB 1,645,090 thousand, with a net profit margin of 14.7%, down from 20.7% in 2022[10] - Total assets increased to RMB 25,508,284 thousand in 2023, up from RMB 24,359,317 thousand in 2022[10] - Cash and cash equivalents decreased significantly to RMB 5,332,076 thousand in 2023 from RMB 9,762,933 thousand in 2022[10] - Total sales revenue for the period was approximately RMB 11,168,422 thousand, a decrease of 8.0% year-over-year[40] - Revenue from the Chinese mainland market was approximately RMB 163,008 thousand, a significant decrease of 92.7% year-over-year, accounting for 1.5% of total revenue[40] - Revenue from overseas markets was approximately RMB 11,005,414 thousand, an increase of 11.2% year-over-year, accounting for 98.5% of total revenue[40] - Revenue from enterprise customers decreased by 12.7% year-over-year, accounting for 83.5% of total revenue[40] - Revenue from the company's own brand business increased by 26.0% year-over-year, accounting for 16.5% of total revenue[40] - Revenue from the US market for enterprise customers was approximately RMB 4,083,779 thousand, an increase of 8.2% year-over-year, accounting for 36.6% of total revenue[41] - Revenue from Europe and other markets for enterprise customers was approximately RMB 5,074,276 thousand, an increase of 8.9% year-over-year, accounting for 45.4% of total revenue[43] - Revenue from disposable e-vapor products in Europe and other markets was approximately RMB 3,370,149 thousand, a significant increase of 74.5% year-over-year, accounting for 30.2% of total revenue[43] - Revenue from the company's own brand business was approximately RMB 1,847,359 thousand, an increase of 26.0% year-over-year[44] - The company's total R&D expenditure in 2023 was approximately RMB 1,482,846 thousand, an increase of 8.1% compared to the previous year, accounting for 13.3% of revenue[50][51] - The company's R&D expenditure in the electronic nicotine delivery systems sector (including e-cigarettes and heated non-combustible products) was RMB 1,033,899 thousand, accounting for 69.7% of total R&D spending[50] - The company's R&D expenditure in the atomized medical and beauty products sector increased by 67.4% to RMB 277,627 thousand, accounting for 18.7% of total R&D spending[50] - The company's total revenue for the review period was approximately RMB 11,168,422 thousand, a decrease of 8.0% year-on-year[61] - The company's gross profit for the review period was approximately RMB 4,334,446 thousand, a decrease of 17.6% year-on-year, with a gross margin of 38.8% compared to 43.3% in 2022[61] - Revenue from enterprise customers decreased by 12.7% to approximately RMB 9,321,063 thousand, with a significant drop of 92.7% in revenue from the Chinese mainland market[63] - Revenue from the US market increased by 8.2% to approximately RMB 4,083,779 thousand, accounting for 36.6% of total revenue[63] - Revenue from Europe and other regions increased by 8.9% to approximately RMB 5,074,276 thousand, accounting for 45.4% of total revenue[63] - The company's own brand business sales increased by 26.0% to approximately RMB 1,847,359 thousand, accounting for 16.5% of total revenue[62] - Revenue from the company's own-brand business reached approximately RMB 1,847,359 thousand, a year-on-year increase of 26.0%, with revenue from the US at RMB 372,192 thousand (up 8.8%) and from Europe and other regions at RMB 1,475,167 thousand (up 31.3%)[64] - Total revenue for 2023 was RMB 11,168,422 thousand, a decrease of 8.0% compared to 2022, with revenue from Europe and other regions accounting for 45.4% (RMB 5,065,271 thousand), the US at 10.8% (RMB 1,210,769 thousand), and Hong Kong at 36.0% (RMB 4,016,522 thousand)[65] - Revenue from the Chinese mainland market was approximately RMB 875,860 thousand, a significant decrease of 92.7% compared to 2022, accounting for only 1.5% of total revenue after adjustments[66] - Gross profit for 2023 was RMB 4,334,446 thousand, a decrease of 17.6% year-on-year, with the gross margin dropping from 43.3% to 38.8% due to lower-margin products and reduced revenue from the Chinese mainland market[68] - Distribution and sales expenses increased by 35.7% to RMB 526,238 thousand, accounting for 4.7% of total revenue, driven by the expansion of localized marketing teams and increased promotional activities in overseas markets[69] - Employee compensation and benefits within distribution and sales expenses grew by 44.4% to RMB 269,416 thousand, reflecting the company's efforts to strengthen overseas market presence[69] - Market development expenses rose by 42.4% to RMB 129,155 thousand, primarily due to increased marketing activities for new product launches in overseas markets[69] - Travel expenses increased by 22.4% to RMB 34,525 thousand, as the company intensified its overseas market expansion and promotional efforts[70] - Raw material costs accounted for 49.4% of total revenue, up from 41.5% in 2022, driven by the increased proportion of lower-margin disposable e-vapor products[68] - Labor costs decreased by 30.6% to RMB 608,898 thousand, reflecting improved production efficiency and automation, reducing the need for manual labor[68] - Administrative expenses decreased by 24.5% to approximately RMB 867,154 thousand, accounting for 7.8% of revenue, down from 9.5% in the previous year[71] - Employee compensation and benefits decreased by 17.8% to approximately RMB 564,044 thousand, accounting for 5.1% of revenue, down from 5.6% in the previous year[71] - Professional service fees decreased by 38.8% to approximately RMB 100,073 thousand, accounting for 0.9% of revenue, down from 1.3% in the previous year[71] - R&D expenses increased by 8.1% to approximately RMB 1,482,846 thousand, accounting for 13.3% of revenue, up from 11.3% in the previous year[73] - Development costs increased by 25.8% to approximately RMB 466,953 thousand, accounting for 4.2% of revenue, up from 3.1% in the previous year[74] - Other income increased by 24.6% to approximately RMB 619,147 thousand, with bank deposit interest income increasing by 23.9% to RMB 515,056 thousand[75] - Other losses totaled approximately RMB 103,740 thousand, compared to other gains of RMB 133,266 thousand in the previous year[76] - Tax expenses decreased by 34.4% to approximately RMB 291,449 thousand, primarily due to a decrease in taxable profits and the impact of preferential tax rates[78] - Comprehensive income for the year decreased by 37.2% to approximately RMB 1,566,470 thousand, primarily due to a decline in revenue and gross profit margin[79] - The company's current ratio increased to 548.8% as of December 31, 2023, up from 534.9% in the previous year, primarily due to an increase in short-term bank deposits[80][81] - The company's asset-liability ratio was approximately 19.1% as of December 31, 2023, compared to 19.5% in the previous year[84] - The company recorded foreign exchange gains of approximately RMB 19,509 thousand in 2023, compared to RMB 126,711 thousand in 2022[86] - The company incurred losses of approximately RMB 95,810 thousand from forward foreign exchange contracts in 2023, compared to RMB 50,029 thousand in 2022[86] - Approximately 60% of the company's revenue was settled in USD, while 40% was settled in RMB during the reporting period[87] - A 10% increase in the USD/RMB exchange rate would increase the company's comprehensive income by approximately RMB 599,744 thousand, while a 10% decrease would reduce it by the same amount[88] - The company's total employee costs accounted for approximately 23.0% of revenue in 2023, down from 25.0% in 2022[90] - The company invested approximately RMB 1,155,547 thousand in property, plant, equipment, and intangible assets in 2023, compared to RMB 2,478,206 thousand in 2022[92] - As of December 31, 2023, the company had capital commitments of approximately RMB 494,304 thousand for property, plant, and equipment[93] - The company had no bank or financial institution borrowings as of December 31, 2023, and held a bank credit line of RMB 6,000.0 million, of which RMB 1,102.2 million was utilized[83] - The company had no significant contingent liabilities as of December 31, 2023[96] - The annual transaction caps for battery procurement are set at RMB 4,500,000 thousand, RMB 6,000,000 thousand, and RMB 7,500,000 thousand for the years ending December 31, 2023, 2024, and 2025, respectively[101] - Battery product procurement transactions during the review period amounted to approximately RMB 548,638 thousand, accounting for 9.9% of the company's total procurement[102] - The company's independent non-executive directors confirmed that the ongoing connected transactions are conducted under normal commercial terms and are fair and reasonable, aligning with the overall interests of shareholders[104] - The company's auditors issued an unqualified opinion on the ongoing connected transactions, confirming compliance with the relevant agreements and not exceeding the annual cap for 2023[105] - Available distributable reserves stood at RMB 7,440.8 million as of December 31, 2023[155] - Charitable donations amounted to RMB 6.3 million in 2023, down from RMB 8.6 million in 2022[156] - The company proposed a final dividend of HK$0.05 per ordinary share for 2023[160] - The share-based compensation plan accounted for approximately 0.94% of the weighted average number of shares issued in 2023[165] - The pre-IPO share option plan allows for the issuance of up to 319,032,000 shares, representing approximately 5.20% of total issued shares[168] - The exercise price for each share option under the pre-IPO share option plan is RMB 0.38[171] - The pre-IPO share option plan has a validity period from the adoption date (September 30, 2019) to the listing date (July 10, 2020), after which no further options will be granted[172] - Each grantee must pay HKD 1 as consideration for accepting the share options under the pre-IPO share option plan, which is non-refundable and not part of the exercise price[171] - The term of share options is determined by the board and shall not exceed ten years from the date of the option offer[170] - Any unexercised share options will expire after the option term ends[170] - The company granted a total of 16,000,000 share options to Director Chen Zhiping, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.04 to HKD 2.08 per option[174] - Director Wang Guisheng was granted 6,000,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Director Wang Xin received 1,428,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Director Bu Zhiqiang was granted 544,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Director Bu Weiqiang received 290,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.31 to HKD 2.42 per option[174] - Director Li Xiaoping was granted 1,192,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Director Yuan Xiang received 52,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.31 to HKD 2.42 per option[174] - Director Xiong Fei was granted 81,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.34 to HKD 2.42 per option[174] - Non-director employees were granted a total of 73,219,000 share options, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.31 to HKD 2.42 per option[174] - The company granted an additional 37,000 share options to non-director employees, with an exercise price of HKD 0.38 and a fair value ranging from HKD 2.08 to HKD 2.11 per option[174] - The number of share options available under the post-IPO share option plan at the beginning of 2023 was 160,063,272 shares, and at the end of 2023, it was 86,793,572 shares[175] - The maximum number of shares that can be issued under the post-IPO share option plan and other share option plans combined is 574,351,272 shares, which is 10% of the total issued shares as of the listing date[177] - The total number of shares that can be issued under the post-IPO share option plan is 255,319,272 shares, representing approximately 4.16% of the total issued shares of 6,137,238,720 as of the annual report date[177] - The post-IPO share option plan is valid for ten years from the listing date (July 10, 2020), after which no further options will be granted[183] - In 2023, the company granted a total of 85,475,100 share options under the post-IPO share option plan on April 19, July 20, August 23, and October 20[184] - 319,150 stock options were granted to Director Wang Guisheng on 2023/08/23, with exercise prices of HKD 7.79 and fair values ranging from HKD 2.15 to HKD 3.06[185] - 172,825 stock options were granted to Director Xiong Shaoming on 2023/08/23, with exercise prices of HKD 7.79 and fair values ranging from HKD 2.15 to HKD 3.06[185] - 87,650 stock options were granted to Director Wang Xin on 2023/08/23, with exercise prices of HKD 7.79 and fair values ranging from HKD 2.15 to HKD 3.06[185] - 66,500 stock options were granted to Director Wang Guisheng on 2022/11/09, with an exercise price of HKD 11.11 and a fair value of HKD 2.77[185] - 117,000 stock options were granted to Director Xiong Shaoming on 2022/11/09, with an exercise price of HKD 11.11 and fair values of HKD 2.77 and HKD 3.19[185] - 7,500 stock options were granted to Director Wang Xin on 2022/11/09, with an exercise price of HKD 11.11 and fair values of HKD 2.77 and HKD 3.19[185] - 44,333 stock options were granted to Director Wang Guisheng on 2021/04/01, with an exercise price of HKD 51.05 and fair values ranging from HKD 10.15 to HKD 12.40[185] - 78,000 stock options were granted to Director Xiong Shaoming on 2021/04/01, with an exercise price of HKD 51.05 and fair values ranging from HKD 10.15 to HKD 12.40[185] - 5,000 stock options were granted to Director Wang Xin on 2021/04/01, with an exercise price of HKD 51.05 and fair values ranging from HKD 10.15 to HKD 12.40[185] - 21,667 stock options were granted to Li Xiaoping (Director) on 2021/04/01 with an exercise price of HK$51.05 and a vesting period from 2021/04/01 to 2023/03/31[186] - 32,500 stock options were granted to Li Xiaoping (Director) on 2022/11/09 with an exercise price of HK$11.11 and a vesting period from 2022/11/09 to 2024/03/31[186] - 33,550 stock options were granted to Bu
思摩尔国际(06969) - 2023 - 年度财报