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
In addition, we estimate that our revenue from sales of Regent RVs will decrease significantly in 2024, primarily because we plan to gradually phase down the Discoverer series under Regent, and that our revenue from sales of NEWGEN RVs will decrease in 2024, primarily due to a planned
Summary · p. 28
Furthermore, we estimate that our revenue from sales of Snowy River RVs will increase in 2024, fueled by strong market demand, particularly due to the increasing popularity of our SRC and SRT series, as well as significant revenue contributions from the newly launched models under the SRP series.
Summary · p. 28
We expect that our profit for the year will decrease in 2024, primarily due to the listing expenses relating to this Global Offering of the Company.
In September 2024, the PBoC and NAFR announced the removal of the distinction between first and second-home commercial personal housing loans, setting a uniform minimum down payment ratio of 15%.
Summary · p. 26
Nevertheless, the reduction in mortgage loan interest rates may potentially decrease our interest income from existing loans.
Summary · p. 26
While the removal of the mortgage interest rate floor and declining interest rates may exert short-term pressure on our interest income and net interest margin, the long-term recovery of the real estate market is expected to enhance economic growth, increase loan volumes and stabilize the value of mortgaged properties.
our Company expects to record a significant decrease in the consolidated profit attributable to equity owners of our Company for FY2024 as compared to that for FY2023.
Summary · p. 2
For 6M2024, our revenue amounted to approximately RMB146.1 million, representing a decrease of approximately RMB46.0 million from approximately RMB192.1 million for 6M2023.
Business · p. 167
Our gross profit margin remained relatively stable at approximately 73.0%, 74.4%, 75.2% and 75.8% for FY2021, FY2022, FY2023 and 6M2023, respectively, and slightly decreased to approximately 71.9% for 6M2024.
Although the revenue from PHC Services and Regional Healthcare Solutions slightly decreased in the eleven months ended November 30, 2024 as compared with the same period in 2023 because of the deceleration in the procurement and contract finalization process of healthcare administrators since the end of 2022 to 2024, the number of customers with whom we signed contracts to implement projects and the number of projects involved in these contracts under our PHC Services and Regional Healthcare Solutions increased from the eleven months ended November 30, 2023 to the same period in 2024.
Summary · p. 23
Despite our continued expansion in customer base and increase in revenue, we may continue to incur net losses in the near future, including the years ending December 31, 2024, mainly due to our continued investments in research and development as well as selling expenses.
Our net profit decreased from HK$18.3 million in 6M2023 to HK$7.5 million in 6M2024, which is primarily attributable to the expenses incurred in connection with the Listing of HK$9.9 million.
Summary · p. 2
We expect to record a decrease in net profit for FY2024 compared to that of FY2023, mainly attributable to (a) the expenses expected to be incurred in connection with the Listing; and (b) the expected increase in (i) the selling and distribution cost such as staff cost and advertising and promotion expenses; and (ii) the administrative and operating expense such as depreciation and rental and other premise expenses, in anticipation of the new self-operated stores to be opened, alongside an expected growth in revenue not commensurate with the increase in the aforementioned expenses for FY2024 as the new self-operated stores will take time to ramp up sales.
Summary · p. 16
Despite the overall challenging retail environment in Hong Kong, we managed to maintain a relatively stable financial performance in 6M2024.
We expect to record an increase in net losses for the year ending December 31, 2024, primarily due to a significant rise in share-based payments resulting from the grant of options under our employee incentive scheme in 2024, which will mainly be recognized as administrative, research and development, and selling and marketing expenses.
Summary · p. 30
Our Directors confirm that up to the date of this prospectus, there had been no material adverse change in our financial, operational or prospects since May 31, 2024, being the date of our latest reviewed financial statements, and there is no event since May 31, 2024 that would materially affect the information as set out in the Accountants' Report set out in Appendix I to this prospectus.
We expect our net loss to experience a significant increase for the year ending December 31, 2024 primarily due to fair value changes of convertible redeemable preferred shares and fair value change in financial assets measured at FVPL as a result of the decreased valuation of Guoquan, in which we made an equity investment.
Summary · p. 17
To the best of our knowledge, since June 30, 2024 (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, or guarantees.
After the Track Record Period, gold prices continued to show volatility, rising from RMB549.2/g as of July 1, 2024, to RMB563.3/g as of July 31, 2024, then increasing to RMB573.4/g as of August 30, 2024, and further to RMB603.1/g as of the Latest Practicable Date, according to the closing gold price of Au9999 quoted on the Shanghai Gold Exchange.
Summary · p. 32
Such increase in gold price resulted in our loss from Au (T+D) contracts and gold loans, and our net profits and net profit margins for the year ending December 31, 2024 may also be negatively affected if the gold prices continue to trend upwards in the remaining period of 2024.
Summary · p. 32
On the other hand, the continuous rise in gold prices after June 2024 has positively impacted our gross profit and gross profit margin.
We expect to experience a significant increase in net loss in 2024 and such loss-making position may continue to increase in the future, given the preliminary stage of China's hydrogen energy industry.
Summary · p. 23
(iv) our equity-settled share-based payment expenses are expected to continue to increase in 2024; and (v) the scale of operating assets (trade receivables and inventories) needed in our business operations are expected to increase along with our revenue growth in 2024, which will require additional working capital.
Summary · p. 23
However, we intend to adopt certain measures to maintain sustainability and continue to grow our business to achieve profitability.
While we expect to maintain the momentum of revenue growth in 2024, we expect to continue recording a net loss for the year ended December 31, 2024, primarily because we expect to incur (i) R&D expenses as we continue to advance our clinical plans for product candidates; (ii) selling and distribution expenses as we continue enhancing our efforts in marketing, promotion and sales of our Core Product; and (iii) listing expenses in relation to the Listing.
Since late September 2024, our lithium-mica concentrate provider has suspended its supply to us considering lithium carbonate market conditions.
Summary · p. 29
In the first half of 2024, we processed approximately 220,000 tons of lithium-mica concentrate from the lithium-mica concentrate provider, representing approximately RMB162.2 million in value with which our facility produced 6,495.0 tons of lithium carbonate.
Summary · p. 29
These agreements also provide that if the supplier cannot meet our full production needs and does not allow us to source from third parties, or if an alternative cooperation model cannot be agreed upon, the supplier shall compensate us for economic losses due to idle capacity.
We expect a significant increase in loss for the year ending December 31, 2024
Summary · p. 32
As CARIZON was established on November 20, 2023 and is still in ramp-up stage with no revenue, we expect to continuously pick up share of losses of investments in CARIZON for the year ending December 31, 2024.
We did not experience any significant decrease in revenue or any unexpected increase in the direct costs and other costs subsequent to the Track Record Period and up to the Latest Practicable Date.
Summary · p. 15
However, (i) the impact of the Listing expenses on our combined statement of profit or loss; and (ii) our Group’s legal and professional fees and staff costs are expected to increase after the Listing which has posed or will pose a material adverse change in the financial or trading position or prospects of our Group since 31 March 2024.
Summary · p. 15
Save as disclosed above, our Directors confirm that, up to the date of this prospectus, there has been no material change in our financial or trading positions or prospects of our Group since 31 March 2024 (being the date of which our Group’s latest audited combined financial statements were made up) and there had been no event since 31 March 2024 which would materially affect the information shown in the Accountant’s Report in Appendix I to this prospectus.
Nonetheless, our Company expects a decrease in forecast profit for the year ending 31 December 2024 mainly due to (i) the increases in depreciation of fixed assets and right-of-use assets and interest expenses of lease liabilities in connection with our relocation plan (as detailed in “Business – Properties – Relocation plan”); (ii) the decrease in our gross profit margin in the year primarily attributable to the anticipated increases in direct labour costs and depreciation in connection with our staff recruitment and purchases of machineries in 2024 according to our business strategies and future plans (as set out in detail in “Future Plans and Use of Proceeds”) while we anticipate on a conservative basis to only generate stable revenue streams from our plans in later financial periods; and (iii) the increase in our general and administrative expenses in connection with the Listing as well as professional fees and expenses anticipated to be incurred after the Listing.
Summary · p. 18
There had been no material adverse change in our financial and trading position since the end of the Track Record Period, and there is no event since 30 June 2024 up to the date of this prospectus which would materially affect the information shown in the Accountant’s Report set out in Appendix I to this prospectus.
Despite our expanding business scale, we expect to record an increased amount of loss in 2024, primarily because we expect to grant all the remaining RSUs under our existing share-based incentive plan in 2024, which will result in a significant increase in administrative expenses arising from increased share-based compensation.
Notwithstanding the continuous growth in our business, we expect to continue to incur loss in 2024, which is mainly due to (i) an expected increase in cost of revenue in relation to drivers’ service fee, service costs of third-party mobility service platform and cost of auto service center, and (ii) an expected increase in research and development expenses, in light of our R&D activities of autonomous driving and Robotaxi operation service in the future.
Summary · p. 24
Our Directors have confirmed that, up to the date of this prospectus, there has been no material adverse change in our financial or trading position or prospects since December 31, 2023, being the end date of our latest audited financial statements, and there has been no event since December 31, 2023 that would materially affect the information shown in the Accountants’ Report included in Appendix I to this prospectus.
For the five months ended May 31, 2024, we produced 251 aircraft (214 SR2X Series aircraft and 37 Vision Jet) and delivered 186 aircraft (158 SR2X Series aircraft and 28 Vision Jet), as compared to 272 aircraft produced (235 SR2X Series aircraft and 37 Vision Jet) and 188 aircraft delivered (155 SR2X Series aircraft and 33 Vision Jet) for the five months ended May 31, 2023.
Summary · p. 23
The decrease in average weekly output and utilization rate in relation to the SR2X Series for the five months ended May 31, 2024 as compared to the five months ended May 31, 2023 was primarily due to preparing the existing manufacturing processes for the new product content related to the seventh generation of the SR2X Series which was launched in January 2024.
As at the Latest Practicable Date, the Group had a total of 130 On-going Projects and Pre-revenue Projects, comprising 122 Telecommunications Infrastructure Services projects and eight Digitalisation Solution Services projects, with a total outstanding project backlog of approximately RMB819.4 million and RMB15.1 million, respectively.
Summary · p. 14
Having given due consideration to all these relevant factors, the Directors have concluded that the Group’s net profit for the year ending 31 December 2024 is expected to be lower than the net profit for the year ended 31 December 2023.
The GTV generated from our taxi online-hailing services and the number of taxi online-hailing rides we facilitated decreased in the two months ended February 29, 2024 compared to the corresponding periods ended February 28, 2021, 2022 and 2023, respectively, primarily due to the same reasons for the decrease in 2023 as detailed above.
Summary · p. 25
Meanwhile, we generated revenue of RMB32.6 million, RMB19.4 million and RMB11.3 million from our smart taxi services in the same years, respectively, representing 4.2%, 3.4% and 1.4% of our total revenue, respectively.
Summary · p. 2
Going forward, we expect to gradually charge service fees in the other cities after achieving daily completed rides of approximately 1,000 with a response rate of approximately 50%, subject to variations based on the size of the city, which we consider can ensure minimally satisfactory user experience.
Nonetheless, our Directors expect that we will record a decrease in net profit for the year ending 31 December 2024 as compared to that of the year ended 31 December 2023, primarily because of one-off factors which consist of (i) the expected increase in other expenses due to the surcharge of the tax installment payment after the Withdrawal, amounted to approximately HK$2.1 million for the year ending 31 December 2024; and (ii) the listing expenses expected to be incurred after Listing of approximately HK$8.0 million for the year ending 31 December 2024.