Hong Kong IPO disclosure precedents · 206 companies, 206 items
Net losses in every period of the track record, disclosed with causes (heavy R&D, limited commercialization, lack of scale/economies, ramp-up costs) and any narrowing trend or path to profitability.
We experienced losses during the Track Record Period as we prioritized strategic path formulation and business model optimization.
Summary · p. 4
In summary, we experienced losses during the Track Record Period as we prioritized strategic path formulation and business model optimization over immediate breakeven.
Summary · p. 8
We expect to continue incurring net loss and net operating cash outflow in the near future as we continue to invest in user growth and the skills to capture the substantial opportunities in various specialized aspects of the industry and strengthen competitive moats.
During the Track Record Period, the Company was loss-making and expects to incur net losses and net operating cash outflow in the foreseeable future. It is primarily attributable to selling and marketing activities for business expansion and investment in our other businesses.
Summary · p. 7
We had adjusted net loss during the Track Record Period mainly because we incurred a large amount of selling and marketing expenses as we were still at the stage of rapid business expansion.
Summary · p. 16
After adjusting the equity-settled share-based payment expenses, listing expenses and changes in fair value of financial liabilities at FVTPL, our adjusted net loss margin, a non-IFRS measure, narrowed down from negative 4.6% in 2020 to negative 3.4% in 2021, and further to negative 0.9% in 2022.
Despite our continuous growth in revenue and gross profit margin, we recorded net losses during the Track Record Period.
Summary · p. 17
For the years ended December 31, 2020, 2021 and 2022, respectively, we recorded net losses of RMB88.4 million, RMB348.2 million and RMB611.6 million, respectively, mainly due to the significant financial liabilities measured at fair value through profit or loss ("FVTPL").
Summary · p. 17
While our net loss in 2021 and 2022 was RMB348.2 million and RMB611.6 million, we achieved positive adjusted net profit (non-IFRS measure) of RMB93.5 million and RMB135.2 million in respective periods.
Profit/(Loss) for the year | 28,914 | (151,030) | (99,881)
Summary · p. 22
These fair value changes are non-cash in nature.
Summary · p. 22
Upon completion of the Capitalization Issue and the Global Offering, such convertible redeemable preferred shares will be automatically converted into ordinary shares of our Company at the applicable ratio with prior written approval from holders of such preferred shares and no fair value losses will be recorded.
We have historically recorded adjusted net loss (non-IFRS measure) for the fiscal years of 2019, 2020, 2021 and 2022 and the six months ended September 30, 2022, primarily because we have strategically prioritized scale and geographic expansion, customer growth and engagement, and product development and innovations, over short-term profitability to capture opportunities offered by the emerging and rapidly growing cloud-based HCM market in China.
Summary · p. 9
For these reasons, the breakeven period for SaaS service providers, including those focusing their services on the HCM vertical market, is usually long, and it is common for cloud-based HCM solution companies around the world, including in the United States and China, to remain loss-making for over 15 years before becoming profitable.
Summary · p. 18
Going forward, we plan to achieve long-term profitability primarily by further (i) expanding our customer base, (ii) expanding customers’ usage of our solutions, and (iii) managing costs and improving operational efficiency.
During the Track Record Period, amidst the rapid expansion of our store network, we recorded net losses of RMB274.1 million, RMB471.1 million and RMB222.6 million in 2020, 2021 and 2022, respectively.
Summary · p. 3
These losses were primarily the result of our strategic decision to prioritize the expansion of our store network over immediate bottom-line profitability.
Summary · p. 18
Notwithstanding the foregoing, we expect to remain loss-making for at least another three years.