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.
As we strive to advance our pipeline and enhance our drug development capabilities, we expect that we will continue to recognize net losses in 2023, primarily because we will continue to incur significant costs and expenses in relation to our R&D activities as we carry out and expand our preclinical and clinical development programs.
Summary · p. 21
For the years ended December 31, 2021 and 2022, our costs and expenses in relation to R&D activities, which represented our cost of sales and research and development expenses, were RMB748.2 million and RMB1,122.8 million, respectively.
Financial Information · p. 503
Based on the expected approval timeline of each late-stage project in our pipeline, we expect to receive conditional marketing approval from the NMPA for A167 (PD-L1 mAb), our first innovative drug in NDA registration stage, in the second half of 2023 or the first half of 2024.
We expect that we will continue to incur loss for the year ending December 31, 2023, primarily from (i) increasing expenses for clinical development and pre-clinical research and
Summary · p. 29
(ii) listing expenses. All of our Preferred Shares will be automatically and irrevocably converted into the Shares upon Listing, after which we do not expect to recognize any further loss or gain on the fair value changes of financial instruments issued to investors.
Summary · p. 29
Although we currently have no product approved for commercial sale and have not generated any revenue from product sales, we expect to commercialize one or more of our drug candidates over the coming years as they move towards the final stages of development.
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.
We recorded a net loss of RMB3.3 million in 2019, and net profits of RMB26.1 million, RMB50.7 million and RMB3.7 million in 2020, 2021 and the nine months ended September 30, 2022, respectively.
Summary · p. 4
We incurred net loss and adjusted loss (non-IFRS measure) in 2019, as we were in the early stage of developing our digital freight business, and were not able to fully leverage on the economy of scale to generate enough revenue to cover the costs and expenses incurred.