As of June 30, 2024, we had 263 projects carrying forward to the next financial period with a total amount of RMB193.2 million.
Business · p. 306
As of June 30, 2024, we had carried over 263 projects, with 172 projects expected to expire in 2024 and 91 projects expected to expire thereafter.
Business · p. 289
In 2021, 2022, 2023 and June 30, 2024, we submitted 57, 99, 157 and 76 tenders, respectively, among which 47, 86, 138 and 64 tenders were awarded to us, respectively, representing a tender success rate of approximately 83%, 87%, 88% and 84%, respectively.
In the intelligent driving solutions segment, for design wins secured in 2021, 2022 and 2023, the rate of commencing mass production by the end of the Track Record Period was 96.2%, 83.9% and 50.0%, respectively; for design wins secured in 2023 and the six months ended June 30, 2024, the rate of commencing mass production by the Latest Practicable Date was 90.9% and 58.3%, respectively.
Summary · p. 4
Despite the growing number of design wins obtained by us during the Track Record Period, there is no guarantee that such projects will eventually reach mass production nor any guarantee on the respective selling prices and commercial terms of our solutions.
However, due to the impact of COVID-19, the construction of Phase I of the Integration Project was delayed.
Business · p. 307
In light of the above, and through discussion with Qilu Hydrogen, it was mutually agreed by both parties that the delivery of the relevant equipment for hydrogen liquefaction and the storage and transportation of liquid hydrogen to Qilu Hydrogen would be delayed.
Business · p. 308
We delivered the relevant products to Qilu Hydrogen by batches starting from April to December 2023, and Qilu Hydrogen has confirmed its acceptance of our products.
We have accumulatively obtained design-wins for 44, 101, 210 and 275 car models, net of terminated projects, as of December 31, 2021, 2022 and 2023 and June 30, 2024, respectively.
Summary · p. 4
As of the Latest Practicable Date, among our total design-wins, over 135 car models were under development process towards mass production, representing our backlogs of potential orders for vehicles not yet mass-produced.
Summary · p. 25
Of the 44 car models for which we obtained design-wins as of December 31, 2021, 42 car models were mass produced during the Track Record Period, and the remaining two also generated revenue during the same period.
In addition, we maintain a substantial project backlog of over RMB1.6 billion as of March 31, 2024, involving around 3,500 projects for software products and digital services.
Summary · p. 6
For example, from the six months ended June 30, 2023 to the same period in 2024, our contracts newly acquired increased by 7.8% to RMB325.1 million.
During the Track Record Period, some of our contracts with our customers were material loss-making contracts, defined as contracts that incurred a gross loss of more than RMB50,000 as of a given date.
Business · p. 264
Such contracts are mainly related to our digital SMO business management service because such service lacked economies of scale when we offered it in the early stage and that some of the projects encountered unexpected delays which would increase the impact of inflation and rising costs on the eventual profitability of the projects.
Business · p. 264
In addition, there has been early termination of our contracts with customers during the same period related to substantially all of our solutions (excluding early terminations due to earlier-than-expected completion of contracts with customers).
Our backlog value increased significantly from approximately HK$221.4 million as at 31 March 2022 to approximately HK$722.0 million as at 31 March 2023.
Business · p. 180
Our backlog value then remained relatively stable at approximately HK$707.6 million as at 31 March 2024, in which the addition of value of contact works for projects awarded during FY2023/24 (including Project No. #10, Project No. #11 and Project No. #13) roughly outweighed the service revenue recognised during the same financial year.
Business · p. 181
Our tender success rate decreased from approximately 33.9% for FY2021/22 to approximately 28.4% for FY2022/23 and remained relatively stable at approximately 29.0% for FY2023/24.
We expect to recognise RMB5.9 million, RMB2.6 million and RMB1.0 million of the backlog amount as at the Latest Practicable Date as revenue by 31 December 2024, 31 December 2025 and after 31 December 2025, respectively.
Business · p. 211
It is important to note that not all of the contracts nor service orders entered into by us and our customers include a specified contract sum or fixed amount for the services to be provided.
In the second quarter of 2023 and 2024, the value of orders we fulfilled was RMB77.2 million and RMB153.6 million, respectively.
Summary · p. 3
We provide Huashan A1000 SoCs for Geely’s Lynk & Co 08 mass produced in September 2023, and anticipate a steady growth in the revenue from this model as its sales continues in 2024.
As of the Latest Practicable Date, we had a backlog of 1,320 aircraft, which will support our production for several years.
Summary · p. 3
The decrease in the number of orders was primarily due to the significant number of orders arising as a result of increased customer demand and consumption preferences following the COVID-19 pandemic in 2021 and 2022, and a change in general macroeconomic conditions, in particular, general increases in interest rates, which affected the level of consumer spending on premium and lifestyle products, including our aircraft.
Business · p. 242
The increase in the number of net deliveries resulting from improvements in our average production rate, when taken together with the decrease in the number of orders over the same period, resulted in a reduction in our backlog for 2023, as compared to the previous year.
As at the 31 December 2021, 2022 and 2023 and up to the Latest Practicable Date, the aggregate contract value of our backlog (exclusive of VAT) was approximately RMB186.5 million, RMB409.0 million, RMB366.5 million and RMB421.0 million, respectively.
Business · p. 152
As at the Latest Practicable Date, our ending value of backlog of approximately RMB421.0 million, which was derived from sale orders of SRU and VOCs incineration equipment, catalytic cracking equipment, process burners and heat exchangers of approximately RMB172.5 million, RMB179.5 million, RMB40.8 million and RMB28.2 million, respectively.
During the Track Record Period, we recorded one, three and three loss-making contracts, with aggregate gross loss of approximately RMB0.5 million, RMB0.7 million and RMB0.1 million, for the years ended 31 December 2021, 2022 and 2023, respectively
Business · p. 154
In order to minimise the risk of loss-making contracts, the pricing and estimated cost of our products and contracts is overseen by our management team
Our Group generally do not compile backlog data for our sales of in-vehicle hardware products business line or the SaaS value added business line during the Track Record Period.
Business · p. 293
As at 31 December 2023, we had over 4,000 orders in our backlog for our SaaS subscription services.
Business · p. 293
Out of the amount not yet recognised of RMB69.5 million as at 31 December 2023, it is expected that approximately RMB47.6 million will be recognised for the year ending 31 December 2024 and approximately RMB21.9 million will be recognised after 31 December 2024.
In 2021, 2022 and 2023, we incurred losses on 30, 39 and 40 projects, respectively. The total losses from these projects amounted to RMB19.2 million, RMB15.3 million and RMB19.6 million, respectively.
Business · p. 195
As such, our Directors are of the view that we could gradually reduce the losses that we incurred from the Signature Projects in the future through additional cost-saving measures, such as further streamlining our labor management to lower our operational costs and standardizing our service procedures.
Business · p. 201
As of December 31, 2023, we had withdrawn from all resettlement housing projects.
The closing balance of the Group’s backlog during the Track Record Period amounted to approximately RMB584.4 million, RMB1,135.6 million and RMB876.7 million, respectively, and the Group’s Infrastructure Construction Services business sub-segment was its main contributor.
Business · p. 216
For the years ended 31 December 2021, 2022 and 2023, the conversion rate of contract value into actualised work orders for the Completed Projects for Telecommunications Infrastructure Services was approximately 66.2%, 68.2% and 72.2%, respectively.
Business · p. 214
During the Track Record Period and up to the Latest Practicable Date, nine of the Group’s Completed Projects which are also Major Projects (comprising six Infrastructure Construction Services projects and three Infrastructure Maintenance Services projects) recorded a significant shortfall of approximately 50% or above between the contract value and the amount of revenue recognised up to the Latest Practicable Date.
In 2021, 2022 and 2023, three, four and 12 of the data management solution projects went through a bidding process, measured by the signing date of the relevant project agreements, representing RMB35.8 million, RMB17.1 million and RMB19.3 million of the total project value, respectively.
Business · p. 204
In 2021, 2022 and 2023, we participated in 14, 15 and 21 bidding process, respectively. Our bidding success rate was 21.4%, 46.7% and 66.7%, respectively.
Business · p. 204
Any project with a bidding price above RMB2.0 million shall also be approved by our CEO.
For the three years ended 31 December 2023, the numbers of successful tender bidding were five, seven and four, representing the success rates of 55.6%, 87.5% and 80.0%, respectively.
Business · p. 246
Thus our sales and marketing practices are essentially consistent with industry norms.
According to the payment terms of our existing revenue-generating contracts as of February 29, 2024 (“Existing Contracts”), which provide for monthly or quarterly payments, upfront payments, milestone payments and contingent payments, among others, our total contract value (excluding potential royalties under our collaboration programs) is not less than US$280 million (equivalent to HK$2,188 million).
Business · p. 447
Based on the payment schedules as set out in our Existing Contracts as well as our revenue pattern during the Track Record Period, we expect that the majority of our revenue to be generated in 2024 would be attributable to contracts awarded in 2024 rather than to contracts entered into prior to 2024, as our contracts are generally program-based and in particular, for our solid-state R&D services, are typically short term with a contract performance period of less than six months.
Business · p. 447
We believe that our High Confidence Revenue will be achieved, as it mostly represents upfront payments and monthly or quarterly payments, which will be recognized by lapse of time.
As our marketing service under each project is typically implemented and delivered in one week to three months, during the Track Record Period, our backlog contract value of marketing projects as of the end of a period is significantly lower that the revenue of marketing service for that period.
Business · p. 231
Therefore, our backlog contract value at the end of 2022 was significantly lower than that as of the end of previous years during the Track Record Period. As we experienced a steady growth in 2023, our backlog contract value as of December 31, 2023 increased.
For the years ended December 31, 2021 and 2022, we had six and 14 loss-making projects, respectively, which were all landscaping and engineering projects.
Business · p. 217
In 2022, we experienced greater loss in comparison to 2021 because we actively expanded our landscaping and engineering business and offered substantial discounts to our customers if such discounts are likely to attract future project opportunities from the customers which may render greater profit to our Group.
Business · p. 217
We believe that we could gradually reduce losses in the future by effectively organizing construction and implementing various cost-saving measures.