As a result of this long-term growth strategy, we have been in a loss-making position during the Track Record Period and we expect to incur increasing and substantial net losses and net operating cash outflow for the fiscal year ended March 31, 2023, and we may not be able to become profitable in the short term.
Summary · 第 10 页
Fair value changes of our redeemable convertible preferred shares are also expected to contribute to the substantial increase in our loss for the period till the completion of the Global Offering.
Summary · 第 19 页
We intend to continue to invest in upgrading our integrated cloud-based HCM solutions, enhancing our technology development capabilities and ramping up customer acquisition and retention efforts to drive our long-term profitability.
We expect to incur a net loss in 2023, which may be more significant than that in 2022, primarily as a result of our continued store expansion and entry into new markets, the ongoing ramp-up of revenues per store, store-level costs and expenses, corporate level costs and expenses relating to our investment in our talent pool for store development, regional store management, IT and other functions as well as share-based compensation for directors, senior management and certain employees, the resumption of normal brand-building activities driven by changes in China’s COVID-19 policy, and listing expenses.
Summary · 第 25 页
Our Directors confirm that, up to the date of this document, there has been no material adverse change in our financial or trading position or prospects since December 31, 2022, the end of the period reported on in the Accountant’s Report set out in Appendix I to this document.
In the three months ended December 31, 2022, our Online GTV amounted to RMB9.3 billion, representing a 3.9% decrease from the three months ended December 31, 2021, primarily due to a decrease in our business volume as a result of the regional lockdown from October 2022 to early December 2022 and a significant increase in COVID-19 cases in December 2022.
Financial Information · 第 356 页
Despite the net profit we incurred in 2020, 2021 and the nine months ended September 2021 and 2022, we expect our net profit in 2022, even after excluding the impact of the incurrence of listing expenses related to this Global Offering, to be significantly lower than that in 2021, primarily due to (i) an expected decrease in revenue resulted from a decrease in our Online GTV from RMB38.0 billion in 2021 to RMB36.6 billion in 2022, as a result of the adverse impact of the COVID-19 resurgence in 2022, which adversely affected the macroeconomic conditions and the road freight transportation industry in China, the number of truckers available to fulfill shipping orders and the shippers’ demand for digital freight services, and continued to affect our business since the end of the Track Record Period and up to the Latest Practicable Date;
Financial Information · 第 357 页
CIC is of the view, and our Directors concur that, the relaxation of restrictive measures by the PRC government since December 2022 adversely affected the road freight transportation industry in China in the short run since the surge in COVID-19 cases led to increased infection by truckers and employees of shippers, but is expected to benefit the road freight transportation industry in the long run considering that (i) the revival in the macroeconomic conditions and in the production and operating activities of private enterprises in China are expected to boost the demand for road freight transportation; and (ii) the relaxation of restrictive measures is also expected to increase the number of truckers available to fulfill shipping orders because their activities will no longer be affected by lockdown and quarantine requirements, which will benefit our operations.