During FY2021, FY2022 and 6M2023, we received compensation from Shandong Guoda in respect of sulfuric acid generated during the smelting process amounted to approximately RMB1.4 million, RMB10.5 million and RMB2.4 million, respectively.
Financial Information · p. 365
Our other income and gains increased from approximately RMB3.6 million in FY2021 to approximately RMB13.4 million in FY2022, representing an increase of approximately RMB9.8 million or approximately 272.2%, primarily due to the increase in compensation income from the sale of sulfuric acid in gold concentrate generated during the smelting process of approximately RMB10.5 million as compared to approximately RMB1.4 million in FY2021.
Financial Information · p. 373
The average monthly market price of sulfuric acid experienced a significant decrease from RMB859.2 per tonne in 6M2022 to RMB133.7 per tonne in 6M2023, representing a decrease of approximately 84.4%.
During the Track Record Period, the investment payback period for a self-operated stores typically ranged from six months to 35 months.
Business · p. 194
During the same period, the number of our loss-making self-operated stores was seven, 14, 12 and 12 during each year/period of the Track Record Period, respectively.
Business · p. 194
Such loss-making self-operated stores were typically in their ramp-up period as we tapped into a new market.
During the Track Record Period, the decrease in interest spread was mainly due to increase in cost of funding as a result of the increase in interest rate of our bank borrowings in 2022.
Business · p. 191
We currently do not have an interest rate hedging policy to mitigate interest rate risk.
Business · p. 191
For the years ended December 31, 2020, 2021 and 2022 and five months ended May 31, 2023, if market interest rates had been 1% higher or lower with all other variables held constant, our profit before income tax in 2020, 2021 and 2022 and five months ended May 31, 2023 would have been HK$3.3 million, HK$3.3 million, HK$3.0 million and HK$1.1 million lower or higher as a result of an increase in net interest expense on the borrowings netted with loan receivables, respectively.
For the years ended 31 December 2020, 2021 and 2022 and the six months ended 30 June 2022 and 2023, our employee benefit expenses recorded in our cost of services were approximately RMB208.8 million, RMB254.5 million, RMB291.9 million, RMB142.4 million and RMB151.1 million, representing approximately 54.1%, 53.7%, 58.4%, 58.5% and 60.2% of our cost of services, respectively.
Financial Information · p. 277
The following table sets forth the sensitivity analysis illustrating the impact of hypothetical fluctuations of our employee benefit expenses and subcontracting labour cost in our cost of services on our gross profit for the year during the Track Record Period with all other variables being held constant.
Financial Information · p. 278
Our profitability is largely affected by our ability to control our operating costs, in particular, employee benefit expenses and subcontracting labour costs.
During the Track Record Period, Supplier C and Supplier H (Company E) were also our funding providers.
Business · p. 246
The amount of transaction value from Supplier C and Supplier H for the years ended 31 December 2020, 2021, 2022 and the six months ended 30 June 2023 were approximately RMB42.1 million, RMB55.7 million, RMB50.2 million and RMB7.3 million, respectively, accounted for 11.2%, 7.7%, 6.2% and 1.8% of our total transaction value with our automobile suppliers for the respective years, respectively.
Business · p. 246
Our Directors confirm that negotiations of the terms of our purchases from and our debt financings from all the above mentioned entities were conducted on individual basis and the terms of transactions with all these entities are similar to those transactions with our other suppliers or funding providers.
We are currently considering a subscription of certain shares in J&T Global Express Limited (極兔速遞環球有限公司) (“J&T Global”) (a company incorporated in the Cayman Islands which is seeking listing on the Stock Exchange), an Independent Third Party, as a placee in the global offering of J&T Global at its offer price, with total consideration not exceeding US$17 million.
Summary · p. 20
Such proposed investment is in line with our investment policy to make equity investments in companies that are synergistic to our overseas expansion plans, having considered the core competitiveness, strategic value and growth potential of J&T Global as a global logistics service provider.
Along with such trends, we have actively engaged various corporate and institutional customers which include shared mobility service providers, such as Qingju Bike (青桔單車) and Hello Bike (哈囉單車), on-demand e-commerce companies, as well as logistics companies and certain government organizations.
Business · p. 261
In 2020, 2021 and 2022 and the four months ended April 30, 2022 and 2023, revenue generated from corporate and institutional clients was RMB554.0 million, RMB421.0 million, RMB96.4 million, RMB17.9 million and RMB94.6 million, respectively, representing 23.5%, 12.5%, 2.1%, 1.6% and 5.8% of our revenue from sales of products of the relevant periods.
The negative IRR for fully exited and realized portions was mainly due to the liquidation or disposal of a few investees that experienced particular difficulties in business operations or did not perform as expected.
Summary · p. 11
The invested cost of such fully exited positions only accounted for 2.6% of the total NAV of these two funds as of March 31, 2023.
For the purpose of strengthening industry synergy and forming a strategic alliance, in September 2022, Jiangxi Tanwan, one of our PRC Operating Entities, obtained 55,175,000 shares of Client B, a public company listed on the Shenzhen Stock Exchange and one of our five largest clients for each period during the Track Record Period.
Business · p. 285
As of the Latest Practicable Date, we have sold all of our investments in Client B.
Due to our strategies to constantly engage and retain core group of end-users who demonstrate high paying potential and substantial purchasing capabilities, gross billings contributed from our top 1% paying users accounted for 55.4%, 60.2%, 60.1% and 49.8%, respectively, of our total gross billings in 2020, 2021, 2022 and the four months ended April 30, 2023.
Summary · p. 14
We have adopted a comprehensive approach in effectively mitigating revenue concentration from a small number of paying end-users.
Our revenue generated from Sage Platform and applications as a percentage of our total revenue decreased from 65.7% in 2020 to 50.3% in 2021 and further decreased to 48.4% in 2022, and decreased from 51.4% in the three months ended March 31, 2022 to 42.2% in the three months ended March 31, 2023, as the percentage of total revenue attributed to our application development and other services increased over the same years, driven by the increased demand for customized AI applications due to the expansion of our user base in 2021 and 2022.
Summary · p. 7
Our revenue generated from Sage Platform and applications as a percentage of total revenue decreased from 51.4% in the three months ended March 31, 2022 to 42.2% in the three months ended March 31, 2023 primarily due to the increased revenue contribution from application development and other services over the same periods, driven by the increased demand for customized AI applications.
In order to support the development of a primary medical institution in Shenyang for the purposes of accumulating patient base and strengthen the local service capabilities for the potential opportunities to develop our Internet medical services with such medical institution, we purchased medical equipment on behalf of such medical institution in 2020.
Financial Information · p. 426
In 2021, we provided full provision on the relevant outstanding balances of RMB5.6 million as of December 31, 2020.
In 2020, 2021 and 2022, our staff costs of on-site staff under our cost of sales amounted to approximately RMB111.9 million, RMB138.1 million, and RMB153.2 million , accounting for approximately 77.8%, 74.8%, and 75.3% of our cost of sales.
Financial Information · p. 361
To cope with the rising staff costs, we strive to implement a number of cost-saving measures, such as application of intelligent technologies and facilities to reduce our reliance on manual labor, standardization of procedures and provision of professional trainings to our employees, to improve operational efficiency effectively and manage our staff costs while ensuring consistent service quality.
However, our Group does not receive any actual payment in cash from the relevant government authorities.
Summary · p. 10
As a result of the aforementioned business model, we incur significant cash outflow for the cost of the construction in the early years of our heat service projects, and are exposed to operational risk and the credit risk of our customers until the end of the concession term.
Financial Information · p. 463
Therefore, it results in a cash flow mismatch between the construction phase and the operation phase.
For the three years ended December 31, 2020, 2021 and 2022, revenue generated from construction industry customers represented 94.5%, 94.5% and 95.1% of our total revenue, respectively.
Financial Information · p. 376
In terms of the construction projects that our customers are engaged in, for the year ended December 31, 2022, by our Directors' estimates, for our revenue generated from construction projects, key contributors included infrastructure projects, industrial plants, commercial real estate and our involvement in providing services in the residential property market is considered to be minimal.
Business · p. 222
The demand for our operating lease services is closely related to the level of government spending on urbanization and infrastructure in the PRC, which in turn, largely depends on the PRC general economic conditions and governmental policies.
Since our inception in 2001 and prior to the Series A Financing in 2019, we primarily relied on (i) capital injections from our shareholders, primarily due to which our registered capital increased from RMB0.5 million as of 2001 to RMB78.6 million as of 2019, (ii) one-off or milestone payments of RMB34.8 million in total received from our historically developed products that had been transferred or out-licensed to third-parties prior to the Track Record Period, and (iii) revenue generated from the sales of the Immunoreagent Testing Kits to support our business operations, which amounted to RMB9.1 million from 2004 to 2018.
Summary · p. 2
As of the Latest Practicable Date, Zhifei Biopharma had paid us a total of RMB15.0 million under the 2011 Zhifei License Agreement.
Business · p. 292
In order to leverage Beijing Science Sun’s R&D capabilities in developing anti-cancer drugs and its commercialization team that is mainly engaged in the sales of anti-cancer drugs to accelerate the R&D and commercialization of K11, we entered into the Beijing Science Sun Licensing Agreement in July 2019 and transferred all assets and intellectual property rights in and to K11 to Beijing Science Sun.
(i) prospective customers might resort to other plastic alternatives due to their internal policy (for example: a French-based multinational sports retailer, one of the Company's customers during the Track Record Period, adopted the policy of not using any plastic shopping bag (irrespective of whether biodegradable or not) in their sales since FY2021);
Business · p. 264
In any event, we have been able to acquire new customers each year and the total number of customers did not fluctuate significantly as a whole during the Track Record Period.
Therefore, for some relatively large-scale public infrastructure projects or landmark building construction projects, we may undertake these projects even if the construction project stipulated some special payment terms (i.e. substantial upfront project cost to be incurred with little or no prepayment or progress payment from the customer in the early stage of the project or with lower progress billable percentages) after considering, among other things, (i) the benefit to our reputation and market position after undertaking the projects; (ii) the expected profitability to the project; and (iii) the impact to the financial and liquidity position of our Group.
Business · p. 235
Accordingly, during the Track Record Period, as we incur material costs and subcontracting costs during the initial stage of some projects, we experience a net cash outflow before reaching the milestone that we were entitled to bill our customers.
Business · p. 237
We would only enter into such construction contracts only if it has obtained unanimous approval by the members of the tender assessment committee.
For the years ended December 31, 2019, 2020 and 2021 and the nine months ended September 30, 2022, our Group recorded 9, 10, 13 and 19 loss-making transactions with a gross loss of more than USD0.2 million for our shipping services, respectively and the aggregate gross loss for such transactions were approximately USD3.0 million, USD4.0 million, USD7.0 million and USD8.0 million, respectively, representing approximately 2.8%, 2.9%, 2.2% and 2.8% of our total revenue for the shipping services business segment for the corresponding periods.
Business · p. 238
Our Directors are of the view that the above loss-making transactions are acceptable losses that may arise out of our ordinary course of business and that the profitability of our business taken as a whole would not be adversely affected in the long run.
Business · p. 238
Our Directors believe that through our sequencing strategy, our sizable vessel fleet, well-established relationships and wide access to vast pool of shipping capacity suppliers, brokers and end-customers which facilitate matching or identifying of shipping capacity and shipping demand in a prompt and efficient manner, and the generally shorter charter periods of our chartered-in vessel engagements, we are able to sufficiently mitigate against any material loss-making transactions in respect of our shipping services business segment.
The total refund amount of our all three offerings was RMB45.0 million, RMB146.1 million, RMB383.3 million, RMB283.7 million and RMB508.5 million, respectively, with a refund rate of 9.8%, 12.5%, 16.1%, 16.1% and 25.2%, respectively, in 2019, 2020, 2021 and the ten months ended October 31, 2021 and 2022, respectively.
Business · p. 243
In line with the industry trend, we experienced an increase in the refund rate in 2022 for our products and offerings, mainly because the unsatisfying performance of the overall financial market under the general slowdown in economic conditions and the general negative impact of the COVID-19 pandemic has weakened the customers’ confidence in the market in the short term and their demand in investment decision-making solutions, resulting in an increase in refunds under unconditional refund policy, unsatisfactory products/services or customers’ personal reasons.
Summary · p. 8
As the financial market is expected to improve in the 2023 with the alleviation of COVID-19 restrictive measures, we have observed a decreasing trend in refund rate for our major product offerings since November 2022.