Material equity-settled share-based payment expense
Hong Kong IPO disclosure precedents · 102 companies, 102 items
Disclosure of equity-settled share-based payment expenses granted to directors, management and key employees whose amounts are material to the results for the track record period.
For the years ended December 31, 2022, 2023 and 2024, we recorded RMB325.4 million, RMB931.8 million and RMB1,187.9 million (US$165.8 million) of share-based compensation expenses in the consolidated statements of profit or loss.
Financial Information · p. 409
For the six months ended June 30, 2024 and 2025, we recorded RMB291.9 million and RMB219.5 million (US$30.6 million) of share-based compensation expenses in the consolidated statements of profit or loss.
Financial Information · p. 409
We may record substantial share-based compensation expense in the future.
For the years ended December 31, 2022, 2023, 2024 and the six months ended June 30, 2024 and 2025, the share-based compensation expenses were US$18.6 million, US$3.8 million, US$127.0 million, US$1.5 million and US$16.2 million, respectively, of which US$13.4 million, US$1.8 million, US$102.4 million, US$0.6 million and US$11.9 million, respectively, were included in R&D expenses and US$5.2 million, US$1.9 million, US$24.6 million, US$0.9 million and US$4.3 million, respectively, were included in selling, general and administrative expenses on the consolidated statements of operations and comprehensive loss.
Financial Information · p. 500
We recorded a significant amount of share-based compensation expenses in 2024 due to the vesting of our equity awards upon the completion of our initial public offering in the United States in November 2024.
Share-based payment expenses mainly represent the consideration in the form of equity instruments for services performed by our employees, which are not expected to result in future cash payments, and are therefore non-cash in nature.
Financial Information · p. 357
The fair value is determined by an external valuer using a binomial model, further details of which are given in Note 35 of the Accountants’ Report in Appendix I to this document.
Share-based payment expenses represent the non-cash employee benefit expenses incurred in connection with our award to management and key employees.
Summary · p. 20
Our net losses decreased from RMB655.2 million in 2022 to RMB502.9 million in 2023, primarily due to a significant decrease in changes in fair value of financial liabilities at shares with preferential rights, partially offset by an increase in administrative expenses in relation to the Employee Incentive Scheme adopted by us in 2023 to recognize the contribution of employees, attract and retain talents.
The difference between the subscription price and the fair value of the share awards granted to employees is recognized as an employee cost with a corresponding increase in share-based payments reserve within equity.
Financial Information · p. 414
Selling and marketing expenses as a percentage of our total revenue increased in the first five months of 2025, primarily attributable to increased sales and marketing personnel for business expansion in non-hotel scenarios and overseas, and distribution network expansion, as well as increased share-based payments expenses relating to the share awards granted to our sales and marketing personnel under the Pre-IPO ESOP.
Our equity-settled share-based payments consist of non-cash expenses arising from granting restricted ordinary shares to eligible individuals.
Summary · p. 13
Listing expenses are the expenses arising from activities in relation to the proposed Listing and Global Offering.
Financial Information · p. 365
we expect our equity-settled share-based payment expenses to further increase for the year ending December 31, 2025, taking into consideration the share-based compensation awards under the pre-IPO share option scheme adopted by our Company in August 2025 which would have one-off impact on our operating results and dilution effect to our Shareholders
We define adjusted profit (non-HKFRS measure) as profit for the year/period adjusted by adding equity-settled share-based compensation expenses.
Summary · p. 15
Non-cash expenses arising from shares granted to selected employees.
Summary · p. 15
The use of these non-HKFRS measures has limitations as an analytical tool, and you should not consider them in isolation from, or as a substitute for an analysis of, our results of operations or financial condition as reported under HKFRSs.
Equitysettled share-based payment expenses represent non-cash expenses related to the granting of Share Options to eligible individuals under the Share Incentive Plan.
Summary · p. 22
We have used binomial option-pricing model to determine the total fair value of the Share Options granted.
Share-based payment expenses are non-cash expenses arising from vesting share options to selected employees and transferring shares from our Shareholders to employees and other parties.
The difference between the fair value of the shares on the transfer date and the actual transaction amount is recognized as share-based payment expenses, with a corresponding increase in equity in the consolidated financial statements.
We incurred RMB105.2 million, RMB234.6 million, and RMB116.1 million and RMB26.2 million (US$3.6 million) in share-based compensation expenses in 2022, 2023, 2024 and the three months ended March 31, 2025, respectively.
Business · p. 309
We define adjusted loss from operations (non-GAAP measure) and adjusted net income/(loss) (non-GAAP measure) as loss from operations and net loss adjusted for the impact of share-based compensation expenses, which are non-cash in nature.
Summary · p. 16
We believe that these non-GAAP measures facilitate comparisons of operating performance from period to period and with peer companies.
As a result, we had incurred share-based payments during the Track Record Period in our R&D expenses, selling and distribution expenses and administrative expenses, respectively.
Financial Information · p. 200
We expect to continue our share incentive plan and, as a result, incur share-based payments in the future, and the future share-based payments may increase in terms of the absolute amount and/or as a percentage of our revenue.
(1) Share-based payment expenses, which are non-cash in nature, mainly represent the employee benefit expenses incurred in connection with our award to key employees.
Summary · p. 15
We define adjusted net profit (non-IFRS measure) as the profit for the year adjusted by adding back share-based payment expenses and listing expenses.
While our administrative expenses as a percentage of our revenue decreased from 25.9% in 2022 to 20.2% in 2023 due to economies of scale, our administrative expenses as a percentage of our revenue increased to 27.1% in 2024 mainly due to certain share-based payments to incentivize our staff and an increase in consultancy and professional expenses during the year.
Our grant of equity instruments to the employees of our subsidiaries and Consolidated Affiliated Entities are made in exchange for their services related to the subsidiaries and Consolidated Affiliated Entities.
The total amount of share-based compensation was expensed over the vesting period which started from the respective dates of grant since 2017 and until 31 December 2022, according to the ESOP.
Financial Information · p. 332
The fair value of each award share grant under the ESOP and other issues during the Track Record Period was determined by reference to the consideration paid by third party investors in the latest equity investment transactions value during the latest external financing before or after the date of grant.
We define adjusted profit (non-IFRS measure) as profit for the year, adjusted by adding back equity-settled share-based payment expenses.
Summary · p. 11
The use of adjusted profit (non-IFRS measure) has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute of, our consolidated statements of comprehensive income or financial condition as reported under IFRS.
Summary · p. 11
We grant restricted shares to certain management and employees under share award plans for incentives.
In April 2024, the Board granted share options to certain employees under the Share Incentive Scheme and the vast majority of such share options were vested immediately after the grant.
Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date.
(2) Equity-settled share-based payment expenses is non-cash in nature and mainly represents the arrangement that we receive services from employees as consideration for our equity instruments.
Summary · p. 15
Our selling and marketing expenses increased from RMB44.8 million in the six months ended June 30, 2023 to RMB50.7 million in the six months ended June 30, 2024, primarily due to an increase in employee expenses, which was primarily due to the share-based payment expenses related to the RSU Scheme, and travelling and promotion expenses, as we actively attended trade shows to expand the market.