Hong Kong IPO disclosure precedents · 64 companies, 64 items
Redemption liabilities arising from redemption rights granted to pre-IPO/special-rights investors, including accretion of interest, interest or financing expenses recognised through the track record, and derecognition or restructuring of such liabilities.
Our redemption liabilities were RMB2,147.0 million, RMB5,822.2 million, RMB6,493.2 million, RMB6,683.9 million and RMB6,797.3 million, respectively, as of December 31, 2020, 2021, 2022, March 31, 2023 and July 31, 2023.
Financial Information · p. 361
We expect to turn our net liabilities position into net assets upon Listing, as the carrying amount of redemption liabilities will be reclassified from financial liabilities to equity as a result of the termination of the aforesaid preferred rights.
Meanwhile, the redeemable rights arose from an investment agreement entered into by the Company and a certain investor in round C investments, pursuant to which the Company has an obligation to repurchase its ordinary shares issued to this investor in round C investments.
Summary · p. 16
The redeemable rights are recognized as a financial liability and will be automatically cancelled upon the Listing. We are not expected to have any additional interest expenses for financial liability for redeemable rights.
Summary · p. 16
If the redeemable rights expire without delivery, the carrying amount of the financial liability is reclassified to equity.
Our interest expense on financial instrument with redemption rights was arising from and relating to our Pre-IPO Investments, which is non-cash in nature.
Summary · p. 11
Financial instrument with redemption rights | 163,520 | – | – | 163,520
Financial Information · p. 483
Financial instrument with redemption rights | 178,654 | – | – | 178,654
As of December 31, 2021 and 2022, our redemption liabilities on ordinary shares amounted to RMB1,306.4 million and RMB1,427.1 million, respectively.
Financial Information · p. 391
Such rights of redemption liabilities on ordinary shares will be terminated upon Listing and reclassified as equity.
Financial Information · p. 391
Such foreign exchange losses/gains and interest expenses will not recur after the Listing as the redemption liabilities on ordinary shares will be reclassified as equity upon the Listing.