In 2024, we generated 58.6% of our revenue offshore, including 39.3% in special supervision territory in China, 8.7% in Asia (excluding mainland China and Vietnam), 7.0% in Vietnam and 2.9% in North America (within which, 2.7% was from the United States).
Summary · 第 19 页
In 2022, 2023 and 2024, our direct sales to the United States amounted to RMB1,468.9 million, RMB1,896.1 million and RMB1,908.0 million, which only accounted for 3.1%, 3.5% and 2.7% of our total revenue for the respective years.
Summary · 第 20 页
We believe that the Additional US Tariffs, including the corresponding tariff policies introduced by other countries, assuming they are enforced as proposed, will not have a material and adverse impact on our business and results of operations, on the bases that (i) we make very limited direct exports to the United States, and therefore has insignificant direct exposure to the tariffs imposed by the United States; (ii) brand companies, including our customers, who import the end products incorporating our products in the United States, are responsible for the tariffs; (iii) changing industry landscape mitigate the risk exposure of leading industry players regarding the Additional US Tariffs; and (iv) we have also taken active measures to mitigate our risks (the ''Directors' Views on the Additional US Tariffs'').
Our most significant foreign currency exposure is to the Thai Baht, the Hong Kong dollar and the Japanese Yen, details of which are set out in Note 29 to the Accountants’ Report included in Appendix I.
Financial Information · 第 364 页
We do not currently hedge our revenues or our net equity position in any of our operating subsidiaries.
Financial Information · 第 364 页
We seek to limit our exposure to foreign exchange rate risk by ensuring that our financial assets are predominantly denominated in the same currencies (or in the case of Hong Kong, US dollars) as our insurance liabilities in each of our geographic markets.
We have entered into a number of out-license and collaboration agreements with certain overseas customers.
Financial Information · 第 452 页
During the Track Record Period, U.S. dollar-denominated balances consistently represented approximately 50% or more of our cash and cash equivalents.
Financial Information · 第 454 页
Such political tensions and policy changes could have an adverse effect on global economic conditions, the stability of global financial markets, and international trade policies.
During the Track Record Period, due to the Russo- Ukrainian War, our Directors observed that Russian customers’ demand shifted from international brands to private label brands.
Revenue from Russia declined 36.7% to RMB206.2 million from RMB325.7 million in 9M2023, primarily due to a 22.9% decrease in Contract Manufacturing babycare products sales volume and an 8.9% decrease in average selling price as a result of the continuous depreciation of the Ruble against RMB since early 2024. This currency weakness has reduced Russian importers’ purchasing power for Chinese goods.
We have also established a growing presence in markets outside mainland China, with approximately 4,800 stores as of September 30, 2024.
Business · 第 201 页
Outside of mainland China, we have expanded across the Southeast Asia market since 2018, which we remain focused on cultivating.
Business · 第 203 页
The inventories aged over one year increased from RMB4.8 million as of December 31, 2023 to RMB116.0 million as of September 30, 2024, primarily due to a slowdown in sales of goods and equipment to franchisees outside mainland China.
To capture the benefit of our integrated manufacturing capabilities in the PRC and our local decade-long presence, extensive sales and distribution network and rich marketing experience in the RV industry in Australasia, we produce our frame and chassis in China utilizing the latest vacuum press technology and advanced craftsmanship, and then ship them to our assembly lines in Melbourne to be assembled according to Australian federal standards that can be marketed in both Australia and New Zealand.
Business · 第 192 页
Furthermore, we expect to launch hybrid off-road towable RVs and motorized RVs first in Australasia by the end of 2024 and eventually roll out our RV collections in the European and Canadian markets.
Business · 第 191 页
As confirmed by Frost & Sullivan, no import duty was applicable to RVs of a Chinese origin exported into Europe or Canada as of the Latest Practicable Date.
As we started to expand overseas, our revenue from sales to customers outside mainland of the PRC amounted to RMB58.0 million and RMB40.4 million in 2023 and the six months ended June 30, 2024, respectively, accounting for 9.8% and 10.5% of our total revenue for the respective periods.
Business · 第 244 页
Revenue from overseas customers increased from RMB0.2 million in 2021 to RMB6.1 million in 2022, and then to RMB58.0 million in 2023 and increased from RMB9.1 million in the six months ended June 30, 2023 to RMB40.4 million in the six months ended June 30, 2024, accounting for 0.3%, 4.5%, 9.8%, 3.0% and 10.5% of our total revenue for the respective periods, which indicates the fast expansion of our business overseas.
Financial Information · 第 376 页
Meanwhile, we have deployed R&D resources internationally and established R&D teams in overseas countries, focusing on product design, R&D and reliability assessment to facilitate the understating of local customers and achieve design-win.
Our revenue from markets outside of China increased both in absolute amount and as a percentage of our total revenue, accounting for 48.1%, 58.1%, 59.1% and 61.4% of our total revenue in 2021, 2022, 2023 and the six months ended June 30, 2024, respectively.
Financial Information · 第 293 页
The increase was primarily due to our enhanced sales and marketing efforts, especially in connection with our overseas business expansion in 2023.
During the Track Record Period, the revenue derived from overseas countries and regions increased from RMB5.5 million in 2021, to RMB8.6 million in 2022, and further increased to RMB23.2 million in 2023.
Business · 第 335 页
In April 2024, we entered into sales contract with certain customer in Korea, achieving our first overseas bulk sale, with contract price exceeding RMB30.0 million.
Business · 第 335 页
In addition, for overseas countries, we had one subsidiary in Stuttgart, Germany and one subsidiary in Vancouver, Canada.
In 2021, 2022 and 2023, and the six months ended June 30, 2023 and 2024, our overseas revenue accounted for 2.4%, 6.0%, 7.8%, 7.6% and 8.0% of our revenue, respectively.
Financial Information · 第 351 页
Apart from the Chinese mainland, we have successfully expanded our businesses into markets outside the Chinese mainland, namely Hong Kong SAR, Cambodia, Singapore, Malaysia, Poland, Macau SAR, Indonesia, the Philippines and Brunei.
Summary · 第 10 页
In particular, we plan to replicate our business model and expand our footprint in overseas markets in Southeast Asia and Europe, generating high-quality and sustainable revenue.
In 2023, we had the largest international operations among all Asia-based integrated logistics service providers in terms of international revenue, according to Frost & Sullivan.
Summary · 第 3 页
We have a robust presence in Southeast Asia, where we provide local express delivery services in many countries therein.
Business · 第 250 页
Our international services in general adopt an asset-appropriate approach. In particular, our international freight forwarding service is asset-light, whereby a majority of transportation needs are provided by external carriers, and customs clearance is partly outsourced to external customs brokers.
Revenue of our branded business from the U.S. market increased substantially from RMB46.6 million in 2021 to RMB740.1 million in 2023, reaching RMB269.8 million in the three months ended March 31, 2024.
Business · 第 243 页
For instance, our successful entry into Walmart’s online marketplace in 2022 significantly boosted our U.S. market revenue.
Business · 第 243 页
In particular, we experienced rapid sales growth in the United States compared to the same period of 2023, primarily driven by increased customer demand and our enhanced brand recognition.
For the years ended December 31, 2021, 2022 and 2023, revenue generated from our sales in the international markets amounted to RMB618.4 million, RMB681.8 million and RMB617.1 million, accounting for 22.2%, 21.8% and 23.1% of our total revenue, respectively.
Business · 第 167 页
During the Track Record Period, the gross profit margin of our products sold in the overseas markets was relatively higher than that in the PRC because we were able to charge a relatively higher price considering the higher production costs of overseas manufacturers and we were benefited from the lower production costs in the PRC.
Business · 第 167 页
Our gross profit margin in the overseas markets experienced an overall decrease in 2023 due to the downward trend in the overseas market demands for the same reasons as for domestic sales as well as the higher inventory purchased by overseas customers in 2022 in light of the then transportation restriction amid COVID-19 related measures in the PRC.
For the nine months ended September 30, 2023, our revenue from overseas merchants and enterprises increased significantly with rapid expansion in Southeast Asia countries and across other parts of the world.
Financial Information · 第 398 页
while our TPV of digital payments services in relation to overseas merchants and enterprises increased from RMB 398.3 million to RMB 2,545.1 million during the same period, mainly driven by enhanced knowhows and experience in digital payment services as well as economies of scale.
Our revenue generated from overseas increased approximately five-fold from RMB22.7 million in 2020 to RMB111.2 million in 2022, growing from 13.3% to 21.0% of our total revenue.
During the Track Record Period, the majority of our revenue was generated from sales in the PRC (constituting 92.2%, 92.2%, 87.0% and 73.3% of the total revenue for FY2020, FY2021, FY2022 and 6M2023, respectively), whereas the remaining revenue was generated from other overseas countries which mainly included the United States and Japan.
Summary · 第 10 页
Our Directors consider that although the COVID-19 pandemic had restricted our participation at industry marketing events and exhibitions, especially international events which allowed us to reach out to our international audience, and has severely affected our sales volume and revenue derived from overseas markets, the COVID-19 pandemic has brought about new opportunities to our business landscape and to explore contactless interactions in our daily lives.
Business · 第 395 页
Our Directors anticipate there will be a recovery of the general economic environment and rebound in market demands, and we will be able to resume participating at international marketing events and exhibitions to promote, sale and deliver our products and services overseas and thereby increase our revenue contribution from overseas countries.
During the Track Record Period, we generated a significant amount of revenue from overseas ultimate customers (based on the locations of their headquarters), who contributed to RMB27.7 million, RMB182.7 million, RMB684.2 million and RMB637.4 million in revenue, accounting for 28.7%, 58.7%, 69.1% and 64.1% of our total revenue during the years ended December 31, 2020, 2021 and 2022 and the six months ended June 30, 2023, respectively.
Business · 第 182 页
Outside of China, we are planning to establish a manufacturing base in Singapore to meet the growing demand from customers worldwide for comprehensive bioconjugate CRDMO services and implement a “global dual sourcing” strategy, which supports continuous and timely provision of services to our customers around the globe.