Hong Kong IPO disclosure precedents · 192 companies, 193 items
deterioration after the track record period (lower revenue or margin, loss of a major customer or supplier, regulatory change), or an expected loss for the current year
We expect to incur net loss for the year ending December 31, 2023, because, despite the expected increase in revenue and gross profit, our gross profit generated was unable to compensate for our operating expenses, including selling and distribution expenses, research and development expenses and administrative expenses.
Summary · p. 27
Since April 1, 2023, we have witnessed growth in our business operations, including, but not limited to, increases in the service volumes of both the Internet medical services and health management services in the first seven months of 2023 compared to the same period in 2022.
Our revenue for the six months ended June 30, 2023 experienced a decrease as compared to the same period in 2022 based on our unaudited management accounts, primarily due to (i) the delay in the launch of certain new game products, and (ii) certain existing game products entering into a later stage of their lifecyle, which typically result in a significant decrease of revenue generated under the self-run model.
Summary · p. 33
We expect to experience a decrease in net profit in 2023 compared to 2022, primarily attributable to an increase in share-based compensation resulting from the new options granted under the Pre- IPO Share Option Plan.
Summary · p. 33
(iii) conducted the background search through an independent background search agent on the PRC Operating Entities, where no material adverse findings with respect to the market outlook and its impact on the business operations and financial results of the Group were identified, the Joint Sponsors concur with our Directors’ view as set out above.
Our average MAUs, average monthly subscribing members and average monthly fitness product customers were 26.3 million, 2.8 million and 0.4 million in the three months ended March 31, 2023, respectively, compared to 34.3 million, 3.5 million and 0.5 million in the same period in 2022, respectively.
Summary · p. 16
Overall, we have seen the improvement of average MAUs and average monthly subscribing members in April 2023 as compared to those in March 2023.
For the three months ended March 31, 2023, we recorded total revenues of RMB768.0 million, a decline of 31.0% as compared to the same period in 2022, among which revenues generated from medical diagnostic testing services totaled RMB700.0 million, accounting for 91.1% of our total revenues, showing a decline of 31.7% compared to the same period in 2022.
Summary · p. 10
We expect our net profit for the year ending December 31, 2023 to decrease significantly compared to the year ended December 31, 2022, as a result of expected decline of revenues contributed by COVID-19 testing services in 2023.
Summary · p. 10
However, with the lift of COVID-19 restrictions, demand for our base testing services rebounded, which boosted our non-COVID revenue growth.
We expect that we will possibly continue to be loss-making in 2023 primarily due to the loss from the fair value change of financial liabilities at fair value through profit or loss and a large amount of selling and marketing expenses as we are still at the stage of rapid business expansion.
We expect to incur a significant increase in net loss for 2023 due to (i) the anticipated costs associated with increased research and development activities, (ii) fair value loss of financial liabilities at fair value through profit or loss, (iii) the anticipated increase in staff costs for administrative activities, and sales and marketing activities as we expand our business operations in 2023, and (iv) expenses in connection with the Listing incurred in 2023.
Summary · p. 30
Our Directors confirm that up to the date of this Prospectus, there has been no material adverse change in our financial, operational or trading positions or prospects since December 31, 2022, being the end of the period reported on as set out in the Accountants’ Report included in Appendix I to this Prospectus.
We experienced a decrease in NDRR and NDRR for pay-as-you-go office IT integrated solutions in 2022 primarily because although our customers largely maintained business relationship with us, growth in demands from our customers was moderated during the same year, primarily in relation to such customers' lowered rate of business growth or even downsized workforce.
Summary · p. 29
In 2023, we expect to record an increase in net losses due to (i) fair value changes of financial liabilities at FVTPL, representing non-cash expenses arising from granting preferred shares, warrants and convertible bonds to investors, and (ii) listing expenses.
For the three months ended March 31, 2023, the utilization rate for aerial work platform, neo-excavation support system and neo-formwork system were 58.2%, 60.2% and 67.2%, respectively.
Summary · p. 21
Based on our unaudited management accounts, we recorded a slight increase in revenue for the three months ended March 31, 2023 as compared with the same period in the previous year; while our gross profit for the three months ended March 31, 2023 decreased as compared with the same period in the previous year, primarily due to our increase in equipment volume without a corresponding increase in utilization rate for our equipment volume, which was because the market demand for our equipment remained relatively stable and modest during the first quarter of the relevant years as a result of seasonality in our business.
Summary · p. 21
Our Directors confirm that, since December 31, 2022 (being the date on which the latest consolidated financial information of our Group was prepared) and up to the date of this Prospectus, there has been no material adverse change in our business operations, the business environment in which we operate, as well as our financial or trading position, indebtedness, mortgage, contingent liabilities, guarantees or prospects.
Our net profit may experience a decrease for the year ending 31 December 2023 as compared to that of the year ended 31 December 2022, mainly due to (i) the expected Listing expenses to be incurred during the year; and (ii) the possible decrease in our other income as majority of our government grants received in FY2022 were non-recurring in nature and the timing, amounts and conditions of these government grants were within the sole discretion of the government, which we may not be able to receive those government grants at similar levels in 2023.
We expect that we will record net loss in 2023, primarily because we expect to continue to incur research and development expenses as we advance the development of our pipeline.
Summary · p. 28
In particular, we expect to complete the Phase II clinical trial for LZ901 in China in the second quarter of 2023, and initiate a Phase III clinical trial in the second quarter of 2023, which would expect to result in a significant increase in research and development expenses in 2023.
As a result of this long-term growth strategy, we have been in a loss-making position during the Track Record Period and we expect to incur increasing and substantial net losses and net operating cash outflow for the fiscal year ended March 31, 2023, and we may not be able to become profitable in the short term.
Summary · p. 10
Fair value changes of our redeemable convertible preferred shares are also expected to contribute to the substantial increase in our loss for the period till the completion of the Global Offering.
Summary · p. 19
We intend to continue to invest in upgrading our integrated cloud-based HCM solutions, enhancing our technology development capabilities and ramping up customer acquisition and retention efforts to drive our long-term profitability.
We expect to incur a net loss in 2023, which may be more significant than that in 2022, primarily as a result of our continued store expansion and entry into new markets, the ongoing ramp-up of revenues per store, store-level costs and expenses, corporate level costs and expenses relating to our investment in our talent pool for store development, regional store management, IT and other functions as well as share-based compensation for directors, senior management and certain employees, the resumption of normal brand-building activities driven by changes in China’s COVID-19 policy, and listing expenses.
Summary · p. 25
Our Directors confirm that, up to the date of this document, there has been no material adverse change in our financial or trading position or prospects since December 31, 2022, the end of the period reported on in the Accountant’s Report set out in Appendix I to this document.
In the three months ended December 31, 2022, our Online GTV amounted to RMB9.3 billion, representing a 3.9% decrease from the three months ended December 31, 2021, primarily due to a decrease in our business volume as a result of the regional lockdown from October 2022 to early December 2022 and a significant increase in COVID-19 cases in December 2022.
Financial Information · p. 356
Despite the net profit we incurred in 2020, 2021 and the nine months ended September 2021 and 2022, we expect our net profit in 2022, even after excluding the impact of the incurrence of listing expenses related to this Global Offering, to be significantly lower than that in 2021, primarily due to (i) an expected decrease in revenue resulted from a decrease in our Online GTV from RMB38.0 billion in 2021 to RMB36.6 billion in 2022, as a result of the adverse impact of the COVID-19 resurgence in 2022, which adversely affected the macroeconomic conditions and the road freight transportation industry in China, the number of truckers available to fulfill shipping orders and the shippers’ demand for digital freight services, and continued to affect our business since the end of the Track Record Period and up to the Latest Practicable Date;
Financial Information · p. 357
CIC is of the view, and our Directors concur that, the relaxation of restrictive measures by the PRC government since December 2022 adversely affected the road freight transportation industry in China in the short run since the surge in COVID-19 cases led to increased infection by truckers and employees of shippers, but is expected to benefit the road freight transportation industry in the long run considering that (i) the revival in the macroeconomic conditions and in the production and operating activities of private enterprises in China are expected to boost the demand for road freight transportation; and (ii) the relaxation of restrictive measures is also expected to increase the number of truckers available to fulfill shipping orders because their activities will no longer be affected by lockdown and quarantine requirements, which will benefit our operations.