Our net cash generated from operating activities was RMB56.2 million and RMB37.4 million, respectively, in 2020 and 2021, and our net cash used in operating activities was RMB14.0 million in 2022.
Financial Information · 第 421 页
Our Directors are of the opinion that, taking into account the estimated net proceeds from the Global Offering, the expected cash generated from operating activities and other future equity or debt financing opportunities, we have sufficient working capital for our present requirements and for the next 12 months from the date of this Prospectus.
Net cash used in operating activities for the year ended December 31, 2022 was RMB710.6 million, which consisted primarily of profit before taxation of RMB1,435.1 million, adjusted for certain non-cash and non-operating items.
Summary · 第 10 页
Net cash generated from operating activities decreased from RMB1,524.0 million in 2020 to RMB969.0 million in 2021, primarily due to the increase in inventories of RMB1,912.4 million as we have continued to expand our baijiu production catering to the growing market demand for our products.
We recorded net cash outflow from operating activities of RMB83.4 million, RMB65.5 million, RMB156.0 million and RMB186.1 million for the fiscal years ended March 31, 2019, 2020 and 2022 and the six months ended September 30, 2022 respectively, which were attributable primarily to our operating loss for the same periods.
Summary · 第 16 页
This was primarily due to our narrowed operating loss during the same year as a result of (i) our efforts to optimize our internal organizational structure and headcount, and to a lesser extent, (ii) the reduction in the amount of social insurance contributions for our operation and product support staff due to the PRC government’s relief policies in response to the COVID-19 pandemic.
Summary · 第 17 页
While these investments typically would not translate into immediate financial returns and have in part contributed to our historical operating loss positions, we believe that they are indispensable to achieving our current scale and market leadership, as well as long-term path to profitability.
We recorded net cash used in operating activities of US$5.4 million and US$28.1 million for the year ended December 31, 2019 and 2021, respectively.
Financial Information · 第 340 页
This was primarily due to (i) the relatively longer credit terms we granted to our marketers during the Track Record Period (being generally 30 to 90 days from date of invoice) than those granted by media publishers to us (being generally 30 to 60 days from date of invoice); and (ii) an increase in trade receivables, primarily reflecting our business expansion and the extended credit term we granted in 2021 to Marketer A, one of our major customers, from 60 days to 90 days from date of invoice.
Financial Information · 第 340 页
We recorded net cash generated from operating activities of US$23.7 million for the nine months ended September 30, 2022 as compared to an operating cash outflow in 2021, which was primarily due to a decrease in gross spending with media publishers over the same period together with our accelerated collection of payments from customers as we implemented the aforementioned measures to improve our operating cash flow position.