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.
Share-based compensation represents expenses arising from granting share incentives to senior management and selected employees, which is non-cash in nature.
Summary · p. 20
The decrease of our net losses from 2023 to 2024 was primarily due to (i) a decrease of RMB75.2 million in change in fair value of redemption liabilities on equity shares, mainly because we terminated the redemption rights granted to our Pre-IPO Investors pursuant to certain supplemental agreements in 2024, and we no longer recognized any redemption liabilities on equity shares or any loss or gain on fair value changes of such liabilities thereafter; and (ii) a decrease of RMB45.2 million in research and development expenses, mainly attributable to decreases in clinical trial expenses and preclinical and CMC expenses, which aligned with the evolving progress of respective preclinical and clinical programs of our drug candidates; partially offset by an increase of RMB49.6 million in administrative expenses, mainly attributable to an increase in share-based compensation arising from increases in the number and value of share incentives granted, and an increase in professional service fees mainly in connection with the listing expenses incurred.
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.
This increase was primarily because our administrative expenses increased from RMB33.7 million to RMB56.2 million, in relation to our share-based awards to administrative personnels.
Summary · p. 9
Equity-settled share-based payment expenses consist of non-cash expenses arising from granting share options and restricted share units to eligible individuals under the pre-IPO share incentive plans.
Summary · p. 8
Additionally, our administrative expenses increased from RMB13.9 million in 2022 to RMB33.7 million in 2023, primarily due to an increase in listing expenses, and then increased to RMB56.2 million in 2024, primarily due to our share-based awards granted in 2024.
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.
Our administrative expenses increased during the Track Record Period primarily because (i) our business grew and team expanded, (ii) our share incentive expenses increased, and (iii) we engaged professional services in relation to our out-license and collaboration agreements, equity financing and listing.
Financial Information · p. 440
The decrease in the percentage of research and development expenses relative to total operating expenses in 2024 was primarily due to increase in administrative expenses caused by share incentive expenses and listing expenses.
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 payment expenses relate to the share awards we offered to our employees, directors and consultants under our equity incentive plans, which are primarily non-cash in nature.
Summary · p. 9
This is primarily attributable to (i) the expenses arising from granting awarded shares of RMB65.5 million to our staff; and (ii) expenses for marketing campaigns specifically related to our healthcare service packages of RMB71.5 million.
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.
Meanwhile, to incentivize our employees and retain our talent, we had in place share award schemes, and incurred share-based payments of RMB8.8 million, RMB15.0 million, RMB22.4 million, RMB11.2 million and RMB15.3 million in 2021, 2022 and 2023 and the six months ended June 30, 2023 and 2024, respectively.
Business · p. 289
Share-based payment is a non-cash expense arising from granting share-based awards to selected employees.
The cost of equity-settled transactions is recognized in employee benefit expense, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled.
Our net loss also increased from RMB266.7 million for the five months ended May 31, 2023 to RMB409.4 million for the five months ended May 31, 2024, primarily attributable to (i) a RMB98.4 million increase in share-based payments as we granted options under our employee incentive scheme in January 2024; and (ii) the fact that our revenue was relatively small in the first five months of 2024 due to the seasonality and fluctuations in our customers' demands for application of fuel cell systems and components, which were in relation to their vehicle production schedules, while our costs and expenses such as employee salaries and rent did not decline proportionately, resulting in a gross loss during that period.
Summary · p. 19
Share-based payment was non-cash in nature, representing the employee incentive scheme through which we offered share awards to our employees.
Summary · p. 18
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.
The significant increase in share-based payment expenses in 2021 was mainly due to our Company accelerating the vesting of 75,000,000 RSUs in October 2021.
Summary · p. 20
The reconciling item is non-cash and does not result in cash outflow, and the adjustment has been consistently made during the Track Record Period.
The loss for the period increased from RMB44.2 million in the five months ended May 31, 2023 to RMB96.8 million in the five months ended May 31, 2024, mainly due to an increase in impairment losses under the expected credit loss model, net of reversal, operating expenses, equity-settled share-based payment expenses, listing expenses, and depreciation and amortization.
Summary · p. 16
(iv) our equity-settled share-based payment expenses are expected to continue to increase in 2024;