Equity-settled share-based transactions represent the non-cash employee benefit expenses incurred in connection with our award to key employees after taxation adjustment.
Summary · 第 5 页
Our losses during the Track Record Period were primarily due to (i) intensified market competition, which led us to adjust our product prices to remain competitive price-wise, (ii) our substantial investment in R&D and market expansion, and (iii) equity-settled share-based transactions in relation to the implementation of a restricted share incentive plan following our A-share listing.
We expect that there will be an increase in our net loss for the year ending December 31, 2025 as compared to that for the year ended December 31, 2024, primarily due to (i) an increase in our administrative expenses, mainly driven by an increase in share-based compensation expenses arising from the granting of restricted shares pursuant to a new restricted share scheme adopted in 2025 and an increase in listing expenses.
Summary · 第 23 页
In 2023 and 2024 and the first four months of 2024 and 2025, our administrative expenses amounted to RMB51.2 million, RMB65.1 million, RMB20.5 million and RMB52.2 million, respectively.
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 · 第 9 页
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 · 第 8 页
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.
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 · 第 9 页
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.
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 · 第 19 页
Share-based payment was non-cash in nature, representing the employee incentive scheme through which we offered share awards to our employees.
Summary · 第 18 页
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.
During the Track Record Period, we granted share economic rights in our share incentive platforms to our senior management and employees, and we incurred substantial share-based payment expenses of RMB161.4 million, RMB10.5 million and RMB191.1 million in 2021, 2022 and 2023, respectively, accounting for 35.6%, 2.0% and 26.8% of our total revenue in the same periods, respectively.
Financial Information · 第 348 页
We have implemented a number of internal procedures to ensure the effectiveness and efficiency of our hiring practice, including review and approval procedures for staff recruitment, and additional staffing and the corresponding budget will require the approval of the head of department and/or the CFO.
The operating loss was generally due to our (i) share-based compensation of RMB64.5 million, RMB156.4 million, RMB204.4 million, RMB114.9 million and RMB179.5 million, in FY2020, FY2021, FY2022, 6M2022 and 6M2023, respectively; and (ii) one-off share-based payments to facilitate acquisition of a subsidiary of RMB92.0 million in FY2022.
Summary · 第 15 页
Changes in these estimates and assumptions could have a material effect on the determination of the timing and amount of RSUs to vest, which may in turn significantly impact the amount of share-based compensation expenses for the respective years.
We have engaged an independent valuer to determine the total fair value of the equity incentive tools granted to employees.
Financial Information · 第 382 页
The Forfeiture Rate of the restricted shares awarded of our Group to managements and employees were assessed to be 15% to 30%, 25% to 45%, 25% to 45% and 25% to 45% as of December 31, 2020, 2021 and 2022 and June 30, 2023, respectively.
Share-based payment consisted of non-cash expenses arising from granting options to eligible individuals under the 2020 Incentive Scheme and the Pre-IPO Incentive Scheme and does not result in cash outflow.
Summary · 第 13 页
Such increase was primarily due to the increase in general and administrative expenses mainly attributable to an increase in share-based payments recognized in 2023 in relation to share incentives granted to our employees.
Our net loss increased from RMB198.8 million as of December 31, 2020 to RMB294.7 million as of December 31, 2021, mainly attributable to an increase in share-based compensation expenses due to our issuance of Pre-IPO SOS Options to our employees in January 2021.
Summary · 第 17 页
In particular, the share-based compensation expenses are a non-cash expense arising from granting share-based awards to selected employees.
Summary · 第 16 页
The decrease in our share-based compensation expenses were mainly because we granted Pre-IPO SOS Options before July 2021 and recognized a majority of share-based compensation expenses by the end of 2022
Our net loss decreased from RMB1,802.1 million in 2021 to RMB1,653.4 million in 2022, primarily due to the decrease of our share-based compensation expenses.