Hong Kong IPO disclosure precedents · 281 companies, 282 items
Trade receivables/notes growing with business expansion and rising or fluctuating turnover days, generally within normal credit terms, with aging profile and subsequent settlement disclosed.
The increase in trade and bills receivables and contract assets turnover days from 2022 to 2023 and further to 2024 was primarily due to (i) a significant portion of sales made in the third and fourth quarters of 2024 had not yet become due or settled as of the end of 2024; (ii) changes in payment terms for certain customers, where upfront payment requirements were reduced and replaced with longer credit terms; and (iii) changes in invoicing practices for certain customers, where invoicing was delayed from the month of delivery to the following month, resulting in an extended collection cycle.
Financial Information · p. 445
As of February 28, 2025, approximately RMB1,016.1 million, or 54.6% of our trade receivables as of December 31, 2024, and 80.7%, of our trade receivables (after excluding the one-off impact of the WM Customer related impairment) as of December 31, 2024 had been settled.
Our net trade and bills receivables amounted to approximately RMB121.2 million, RMB199.9 million, RMB213.8 million and RMB257.6 million as at 31 December 2021, 31 December 2022, 31 December 2023 and 30 September 2024, respectively.
Financial Information · p. 451
Our average trade and bills receivables turnover days were approximately 21.3 days, 44.1 days and 53.9 days for FY2021, FY2022 and FY2023, respectively.
Financial Information · p. 455
Having considered the expected loss rate applied in calculating the loss allowance and that a substantially higher expected loss rates were applied to longer past due trade receivables, our Directors are of the view that there are not recoverability issue for our net trade receivables balance.
As at 30 September 2024, our trade receivables, net of loss allowances, increased from approximately RMB34.9 million as at 31 December 2023 to approximately RMB77.6 million as at 30 September 2024. This closing balance is mainly composed of the outstanding receivables from Russian Top-tier Retailer which was substantially subsequently settled as at the Latest Practicable Date.
Financial Information · p. 306
Our other receivables increased from approximately RMB34.4 million as at 31 December 2023 to approximately RMB62.5 million as at 30 September 2024. This increase was mainly due to (i) promotion expenses of approximately RMB14.6 million prepaid to certain marketing agents for the promotion on digital platforms in 9M2024, which was expected to be recognised in profit or loss within one year; and (ii) increase in value-added tax and other tax recoverables of approximately RMB10.1 million.
Financial Information · p. 307
As at 31 December 2021, 2022, 2023 and 30 September 2024, our trade receivables, net of loss allowances, of approximately RMB19.8 million, RMB15.6 million, RMB13.1 million and RMB8.8 million, respectively, were past due. Such amounts were due from our customers whom, to the best knowledge of our Directors, had no financial difficulties. Based on the previous experience of business cooperation, the overdue amounts can be recovered.
Our trade receivables increased from US$11.5 million as at 31 December 2022 to US$62.6 million as at 31 December 2023, which was in line with our increase in revenue in FY2023.
Financial Information · p. 346
Our trade receivables turnover days were within the typical credit term of within 30 working days granted to our customers, and amounted to 10 days, 20 days and 22 days in FY2022, FY2023 and 9M2024, respectively.
Financial Information · p. 346
As at 31 January 2025, US$46.2 million, or 100.0% of our trade receivables outstanding as at 30 September 2024, had been settled.
Our trade and notes receivables increased from RMB15.3 million as of December 31, 2022 to RMB38.3 million as of December 31, 2023, and further to RMB63.3 million as of June 30, 2024, primarily due to the expansion of our sales network and the sales growth of our assembly character toys.
Financial Information · p. 297
Approximately 25.3%, 25.1%, 24.6% and 22.5% of our distributors as of December 31, 2021, 2022 and 2023 and June 30, 2024 were granted credit terms by us.
Business · p. 210
As of October 31, 2024, 98.2% of our total trade and notes receivables as of June 30, 2024, or RMB62.8 million, were settled.
Our trade receivables increased from RMB1.1 million as of December 31, 2021 to RMB8.4 million as of December 31, 2022, further to RMB50.7 million as of December 31, 2023, and further to RMB78.8 million as of June 30, 2024, primarily due to an increase in revenue under our various types of service and the resulting increase in sales on credit, as well as because we established new cooperation with research institutions under our research projects business, which led to increased credit period at the initial cooperation stage.
Financial Information · p. 456
The average trade receivables turnover days were 114.6 days in 2021, 153.3 days in 2022, 160.7 days in 2023 and 227.2 days for the six months ended June 30, 2024.
Financial Information · p. 457
As of October 31, 2024, RMB23.1 million, representing 29.4% of the trade receivables outstanding as of June 30, 2024 were subsequently settled.
Our trade and other receivables then increased to RMB337.0 million and RMB387.6 million as of December 31, 2023 and June 30, 2024, primarily due to the increase in trade receivables, net of loss allowance, which is attributable to our strong sales growth.
Financial Information · p. 416
Our trade receivable turnover days further shortened to 132.5 days in 2023, and remained relatively stable at 133.2 days in the six months ended June 30, 2024.
Financial Information · p. 417
As of October 31, 2024, RMB188.9 million, or 66.9% of our trade receivables as of June 30, 2024 had been settled.
Our trade receivables, net of loss allowance from third parties increased from RMB33.9 million as of December 31, 2022 to RMB112.1 million as of December 31, 2023, primarily due to the business expansion and revenue growth of our information technology services, RWS support services and pharmaceutical sales business, for which we granted credit periods of around 30 days to customers.
Financial Information · p. 467
Our average trade receivables turnover days increased from 21.8 days in 2023 to 29.3 days for the six months ended June 30, 2024, primarily because we offered more favorable credit terms to our customers to strengthen customer relationship and drive long-term business growth and stability.
Financial Information · p. 469
As of October 31, 2024, RMB74.8 million, or 87.3% of our trade receivables as of June 30, 2024 had been settled.
Our trade and notes receivables increased from RMB100.9 million as of December 31, 2021 to RMB217.7 million as of December 31, 2022, further to RMB333.6 million as of December 31, 2023, and then increased to RMB398.4 million as of June 30, 2024, primarily due to our business growth throughout the Track Record Period.
Financial Information · p. 408
Our trade and notes receivables turnover days increased from 220 days in 2023 to 294 days in the six months ended June 30, 2024, primarily because the increase in our trade receivables in the first half of 2024 outpaced the increase in our revenue in the same period, which was affected by the seasonal fluctuations in demand of our solutions.
Financial Information · p. 410
Our Directors believe that there is no material recoverability issue with respect to our trade and notes receivables and that we have sufficient provision for impairment in light of the prevailing circumstances as of the Latest Practicable Date, based on (i) our periodic evaluation to closely monitor our credit risks and make proper provision for expected impairment, (ii) our stringent internal controls on the management of trade and notes receivables, and (iii) the creditability of our major customers, which are reputable with solid track record in the industry.
We had trade and bills receivables of RMB16.4 million, RMB40.4 million, RMB41.6 million and RMB33.0 million as of December 31, 2021, 2022 and 2023 and June 30, 2024, respectively.
Financial Information · p. 324
Our trade receivables turnover days increased during the Track Record Period, as we continued to grow our customer base and granted credit periods to accommodate customers' payment practices, mainly for overseas customers.
Financial Information · p. 324
As of October 31, 2024, RMB22.1 million or approximately 60.8% of our trade receivables as of June 30, 2024 had been settled.
As of December 31, 2021, 2022, 2023 and May 31, 2024, our trade and bills receivables were RMB509.0 million, RMB583.2 million, RMB669.5 million and RMB747.6 million, respectively.
Financial Information · p. 408
Our trade and bills receivables turnover days increased from 112 in 2021 to 144 in 2022, and decreased to 124 in 2023, mainly because some of our customers changed their payment methods between commercial acceptance drafts and bank acceptance drafts during the Track Record Period.
Financial Information · p. 409
As of August 31, 2024, RMB468.4 million, or 79.0%, of our trade receivables as of May 31, 2024 had been settled.
Our trade receivables net of allowance increased by 72.7% from RMB467.5 million as of December 31, 2022 to RMB807.5 million as of December 31, 2023, mainly attributable to an increase in trade receivables in line with our business growth, particularly those due from Wayfair and Amazon which have relatively longer credit terms.
Financial Information · p. 367
Our trade receivables turnover days subsequently increased from 28.6 in 2023 to 34.3 in the four months ended April 30, 2024, mainly due to the relatively lower revenue from sales of goods for March and April 2024 compared with holiday seasons in the U.S. and European markets during November and December 2023, most of which had been collected as of April 30, 2024.
Financial Information · p. 368
RMB624.7 million, or 92.4%, of our trade receivables as of April 30, 2024 had been settled as of August 31, 2024.
Our trade and other receivables increased significantly by 190.2% from RMB1,662.8 million as of December 31, 2021 to RMB4,825.2 million as of December 31, 2022, primarily due to our expansion in the LFP cathode material business through the acquisitions of Tianjin Beiterui Nano and Jiangsu Beiterui Nano in June 2021.
Financial Information · p. 430
Our trade receivable turnover days then increased to 89.8 days in 2023, primarily due to the increase in trade receivable turnover days of LFP cathode materials as a result of reduced revenue contribution from LFP cathode materials and the delay of payment from certain customer in consideration of the slowdown of the overall market condition in 2023.
Financial Information · p. 431
Our Directors are of the view that the provision for impairment losses of our trade receivables is sufficient and not excessive.
Our trade and notes receivables increased from RMB101.2 million as of December 31, 2021 to RMB129.7 million as of December 31, 2022, primarily due to our increased revenue and the prolonged payment cycle of our customers mainly caused by the COVID-19.
Financial Information · p. 409
Our trade and notes receivables turnover days then increased from 76.7 days in 2022 to 87.9 days in 2023, and further to 99.7 days in the first three months of 2024, primarily due to the prolonged payment cycle of our customers affected by the market condition.
Financial Information · p. 410
As of July 31, 2024, approximately RMB63.3 million, or 43.3% of our trade and notes receivables as of March 31, 2024, had been settled.
Our trade and note receivables at amortized cost increased by 24.9% from RMB38.4 billion as at 31 December 2023 to RMB48.0 billion as at 30 April 2024 and increased by 16.4% from RMB33.0 billion as at 31 December 2022 to RMB38.4 billion as at 31 December 2023, as a result of the growth of our overseas business, which generally features longer credit terms compared with domestic business.
Financial Information · p. 276
As at 31 July 2024, RMB35.8 billion, or 80.3% of our trade receivables at amortized cost as at 30 April 2024 had been settled.
Financial Information · p. 276
For a substantial portion of our Smart Home Solutions in mainland China, we generally require full payment upon delivery of goods.
Our net accounts receivables increased from RMB12.0 million as at 31 December 2021 to RMB21.1 million as at 31 December 2022, and further increased to RMB30.8 million as at 31 December 2023.
Financial Information · p. 353
Our average accounts receivables turnover days increased from 34.6 days for FY2021 to 40.7 days for FY2022, 54.5 days for FY2023, and further to 59.8 days for 4M2024 which was in line with our credit policy.
Financial Information · p. 354
As at 31 May 2024, RMB12.8 million or 47.0% of our accounts receivables outstanding as at 30 April 2024 were settled.
As of December 31, 2021, 2022 and 2023, our net trade receivables amounted to RMB215.7 million, RMB312.6 million and RMB582.8 million, respectively.
Financial Information · p. 446
Our trade receivables turnover days further increased from 222 days in 2022 to 243 days in 2023, primarily driven by our customers/enterprise-level users' adjustment of their internal policies for settling with their service providers in accordance with the macro-economic changes in the aftermath of the pandemic, which was in line with market practice according to the iResearch Report, and therefore slowed the pace at which the outstanding payments were being settled compared with previous years.
Financial Information · p. 449
Notwithstanding the foregoing, our Directors are of the view that there is no material recoverability issue with our trade receivables, based upon the reasons set forth below:
For the years ended December 31, 2021, 2022 and 2023, our average trade and bills receivables turnover days were 24 days, 33 days and increased to 42 days, respectively.
Financial Information · p. 303
Our bills receivables further increased to RMB199.7 million in 2023 despite a decrease in sales volume due to our customers' increased use of bills as their payment method as a result of our customers' need to maintain short-term liquidity in an overall challenging market environment.
Financial Information · p. 302
As of the Latest Practicable Date, RMB268.0 million or 90.3% of the RMB296.9 million trade and bills receivables balance (before impairment) as of December 31, 2023 were subsequently settled.
Trade receivables of Shenzhen EDA Group amounted to RMB44.2 million as of December 31, 2021 and our Group’s trade receivables further increased to RMB70.4 million as of December 31, 2022 and RMB142.4 million as of December 31, 2023, in line with our business growth.
Financial Information · p. 375
Therefore, we had decided to write off these fully impaired outstanding trade receivables of RMB10.5 million and RMB11.4 million in FY2022 and in FY2023, respectively.
Financial Information · p. 376
Shenzhen EDA Group’s average turnover days of trade receivables was 24 days for FY2021, and our Group’s average turnover days of trade receivables was 30 days and 32 days during FY2022 and FY2023, respectively.
Our trade receivables turnover days were 11.6 days, 13.9 days, 18.1 days, 26.0 days and 22.2 days in 2020, 2021, 2022 and for the nine months ended September 30, 2022 and 2023, respectively.
Financial Information · p. 430
The increase in trade receivables turnover days was mainly due to a change in our customer mix by engaging more commercial banks, which generally have a settlement period of one to three months.
Financial Information · p. 430
As of January 31, 2024, RMB65.3 million of trade receivables, representing 76.0% of trade receivables as of September 30, 2023, were subsequently settled.