REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
|
Fengxin Road Jiangsu |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
American Depositary Shares, each representing 20 Class A ordinary shares |
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* | |
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| |
Title of class |
Number of shares outstanding | |
Class A ordinary shares were outstanding as of December 31, 2021 |
||
Class B ordinary shares were outstanding as of December 31, 2021 |
||
|
| |
|
|
Large accelerated filer ☐ | Accelerated filer ☐ | Emerging growth company |
International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ |
Other ☐ |
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3 | ||||
3 | ||||
3 | ||||
76 | ||||
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126 | ||||
160 | ||||
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178 | ||||
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193 |
• | “active shippers” are to the aggregate number of registered shipper accounts on the FTA platform that have posted at least one shipping order on the FTA platform during a given period; some shippers may use more than one account, and/or may share the same account with other shippers; |
• | “ADSs” are to American depositary shares, each of which represents 20 Class A ordinary shares |
• | “CAGR” are to compound annual growth rate; |
• | “China” and the “PRC” are to the People’s Republic of China, excluding, for the purposes of this annual report only, Taiwan, the Hong Kong Special Administrative Region and the Macao Special Administrative Region; |
• | the “CIC Report” are to an industry report commissioned by us and prepared by China Insights Consultancy, or CIC, an independent market research firm, to provide information regarding our industry and our market position in China; |
• | “consolidated affiliates” are to the Group VIEs and their respective subsidiaries; |
• | “FTA platform” are to a digital, standardized and smart digital freight platform that connects shippers and truckers, currently providing services under the brands of Yunmanman Huochebang Shengsheng Huitouche |
• | “fulfilled orders” are to all shipping orders matched through the FTA platform during a given period but exclude (i) shipping orders that are subsequently canceled, and (ii) shipping orders for which platform users failed to specify any freight prices as there are substantial uncertainties as to whether the shipping orders are fulfilled; |
• | “Group” are to Full Truck Alliance Co. Ltd., the Group VIEs and their respective subsidiaries; |
• | “Group VIEs” are to the variable interest entities or VIEs that are 100% owned by PRC citizens and hold certain business operation licenses or approvals, and generally operate businesses in which foreign investment is restricted, and are consolidated into the Group’s consolidated financial statements in accordance with U.S. GAAP; |
• | “GTV” or “gross transaction value” are to the aggregate freight prices specified by platform users for all fulfilled orders on the FTA platform during the period without deducting any commission or service fee charged by us; we make downward adjustments to unreasonably high freight prices specified by users that are apparently due to clerical errors; |
• | “Hong Kong dollar(s)” or “HK dollar(s)” or “HK$” or “HKD” are to Hong Kong dollars, the lawful currency of Hong Kong; |
• | “ Huochebang Huochebang Huochebang Huochebang |
• | “ordinary shares” are to our Class A ordinary shares, US$0.00001 par value per share, and Class B ordinary shares, US$0.00001 par value per share; each Class A ordinary share is entitled to one vote; each Class B ordinary share is entitled to 30 votes; |
• | “quarterly fulfilled orders per average shipper MAU” are calculated by dividing (i) the number of fulfilled orders on the FTA platform for a quarter, by (ii) the average shipper MAUs in such quarter; |
• | “RMB” or “Renminbi” are to the legal currency of China; |
• | “road transportation industry” or “road transportation market” are to the market of transportation services for raw material, semi-finished goods and finished goods by trucks on roads; |
• | “shipper MAUs” are to the number of active shippers in a given month; “average shipper MAUs” in a given period are calculated by dividing (i) the sum of shipper MAUs for each month of such period, by (ii) the number of months in such period; |
• | “US$,” “U.S. dollars,” or “dollars” are to the legal currency of the United States; |
• | “we,” “us,” “our Company,” “our,” or “FTA” are to Full Truck Alliance Co. Ltd. and/or its subsidiaries, as the context requires; and |
• | “ Yunmanman Yunmanman Yunmanman Yunmanman |
• | our goal and strategies; |
• | our expansion plans; |
• | our future business development, financial condition and results of operations; |
• | expected changes in the Group’s revenues, costs or expenses; |
• | industry landscape of, and trends in, China’s road transportation market; |
• | competition in our industry; |
• | our expectations regarding demand for, and market acceptance of, the Group’s services; |
• | our expectations regarding the Group’s relationships with shippers, truckers and other ecosystem participants; |
• | our ability to protect our systems and infrastructures from cyber-attacks; |
• | PRC laws, regulations, and policies relating to the road transportation market; |
• | the results of regulatory review and the duration and impact of any regulatory action taken against us; |
• | the impact of COVID-19 pandemic, extreme weather conditions and production constraints brought by electricity rationing measures; and |
• | general economic and business conditions. |
• | exercise effective control over our Group VIEs and their subsidiaries; |
• | receive substantially all the economic benefits of our Group VIEs; and |
• | have an exclusive option to purchase all or part of the equity interests in all or part of the assets when and to the extent permitted by PRC law. |
(1) | Our PRC subsidiaries, Jiangsu Manyun Logistics Information Co., Ltd, or Jiangsu Manyun, and Full Truck Alliance Information Consulting Co., Ltd., or FTA Information, entered into contractual arrangements with the Group VIEs. Jiangsu Manyun and FTA Information are our wholly foreign owned entities, or WFOEs. Shanghai Xiwei and Beijing Yunmanman were Group VIEs from the beginning of the periods presented below to November 2021. Guiyang Huochebang was a Group VIE from the beginning of the periods presented below to March 2021. In March 2021, Guizhou FTA became a Group VIE, and Guiyang Huochebang became a subsidiary of Guizhou FTA. Shanghai Xiwei and Beijing Yunmanman ceased to be the Group VIEs and became indirectly wholly-owned subsidiaries of Manyun Software in November 2021. We acquired Shanghai Xiwei and Beijing Yunmanman from Manyun Software and they became indirectly wholly-owned subsidiaries of Jiangsu Manyun on January 1, 2022. Guizhou FTA ceased to be a Group VIE following the completion of the Reorganization on January 1, 2022. Manyun Software and Shan’en Technology are currently the Group VIEs. See “Item 4. Information on the Company—C. Organizational Structure.” |
For the Years Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Intercompany Cash Flow Data: |
| |||||||||||||||
Transfer from our Company to our subsidiaries |
52,702 | 724,248 | 2,103,259 | 330,047 | ||||||||||||
Transfer from our subsidiaries to the consolidated affiliates |
1,201,419 | 1,858,922 | 6,323,470 | 992,290 | ||||||||||||
Transfer from the consolidated affiliates to our subsidiaries |
917,727 | 2,031,374 | 4,637,600 | 727,741 |
For the Years Ended December 31, |
||||||||||||||||||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||||||||||||||||||
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
|||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||||||
Freight Matching Services |
— |
1,769,756 |
— |
— |
1,769,756 |
— |
1,947,016 |
— |
— |
1,947,016 |
||||||||||||||||||||||||||||||
Freight brokerage |
— | 1,292,496 | — | — | 1,292,496 | — | 1,365,207 | — | — | 1,365,207 | ||||||||||||||||||||||||||||||
Freight listings |
— | 477,260 | — | — | 477,260 | — | 538,665 | — | — | 538,665 | ||||||||||||||||||||||||||||||
Transaction commission |
— | — | — | — | — | — | 43,144 | — | — | 43,144 | ||||||||||||||||||||||||||||||
Value-added services |
— |
701,953 |
134,022 |
(132,670 |
) |
703,305 |
— |
606,519 |
205,693 |
(178,408 |
) |
633,804 |
||||||||||||||||||||||||||||
Credit solutions |
— | 484,904 | — | — | 484,904 | — | 472,841 | — | — | 472,841 | ||||||||||||||||||||||||||||||
Other value-added services |
— | 217,049 | 134,022 | (132,670 | ) | 218,401 | — | 133,678 | 205,693 | (178,408 | ) | 160,963 | ||||||||||||||||||||||||||||
Net Revenues |
— |
2,471,709 |
134,022 |
(132,670 |
) |
2,473,061 |
— |
2,553,535 |
205,693 |
(178,408 |
) |
2,580,820 |
||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||
Cost of revenues |
— | (1,391,409 | ) | (5,964 | ) | 7,509 | (1,389,864 | ) | (7,842 | ) | (1,278,717 | ) | (39,557 | ) | 10,099 | (1,316,017 | ) | |||||||||||||||||||||||
Sales and marketing expenses |
— | (196,737 | ) | (206,380 | ) | — | (403,117 | ) | (94,640 | ) | (267,003 | ) | (125,525 | ) | 32,825 | (454,343 | ) | |||||||||||||||||||||||
General and administrative expenses |
(712,108 | ) | (364,093 | ) | (238,383 | ) | 125,161 | (1,189,423 | ) | (3,583,893 | ) | (293,715 | ) | (75,580 | ) | 14,623 | (3,938,565 | ) | ||||||||||||||||||||||
Research and development expenses |
— | (392,292 | ) | (4,400 | ) | — | (396,692 | ) | (42,680 | ) | (387,287 | ) | (103,126 | ) | 119,724 | (413,369 | ) | |||||||||||||||||||||||
Provision for loans receivable |
— | (127,790 | ) | — | — | (127,790 | ) | — | (91,688 | ) | (2,472 | ) | — | (94,160 | ) | |||||||||||||||||||||||||
Total operating expenses |
(712,108 |
) |
(2,472,321 |
) |
(455,127 |
) |
132,670 |
(3,506,886 |
) |
(3,729,055 |
) |
(2,318,410 |
) |
(346,260 |
) |
177,271 |
(6,216,454 |
) | ||||||||||||||||||||||
Other operating income |
— | 13,223 | — | — | 13,223 | — | 19,193 | 1,838 | — | 21,031 | ||||||||||||||||||||||||||||||
(Loss) income from operations |
(712,108 |
) |
12,611 |
(321,105 |
) |
— |
(1,020,602 |
) |
(3,729,055 |
) |
254,318 |
(138,729 |
) |
(1,137 |
) |
(3,614,603 |
) | |||||||||||||||||||||||
Other (expense) income |
||||||||||||||||||||||||||||||||||||||||
Interest income |
176,925 | 50,769 | 57,952 | (56,336 | ) | 229,310 | 93,897 | 56,880 | 92,347 | (33,292 | ) | 209,832 | ||||||||||||||||||||||||||||
Interest expenses |
— | (93,932 | ) | (2,400 | ) | 56,336 | (39,996 | ) | — | (43,488 | ) | (169 | ) | 35,290 | (8,367 | ) | ||||||||||||||||||||||||
Foreign exchange loss |
— | (4,125 | ) | (2 | ) | (283 | ) | (4,410 | ) | — | (7,383 | ) | (13,893 | ) | — | (21,276 | ) | |||||||||||||||||||||||
Investment income |
— | — | — | — | — | — | 3,321 | — | — | 3,321 | ||||||||||||||||||||||||||||||
Unrealized gains from fair value changes of trading securities and derivative assets |
— | — | — | — | — | — | 11,798 | 6,342 | — | 18,140 | ||||||||||||||||||||||||||||||
Other (expenses) income, net |
— | (9,757 | ) | 1,172 | — | (8,585 | ) | — | (7,356 | ) | 1,797 | — | (5,559 | ) |
For the Years Ended December 31, |
||||||||||||||||||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||||||||||||||||||
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
|||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||||||
Impairment loss |
— | (697,590 | ) | (12,741 | ) | — | (710,331 | ) | — | (22,030 | ) | — | — | (22,030 | ) | |||||||||||||||||||||||||
Share of loss in equity method investees |
(1,444 | ) | (285 | ) | — | — | (1,729 | ) | (10,975 | ) | (79 | ) | — | — | (11,054 | ) | ||||||||||||||||||||||||
Total other income (loss) |
175,481 |
(754,920 |
) |
43,981 |
(283 |
) |
(535,741 |
) |
82,922 |
(8,337 |
) |
86,424 |
1,998 |
163,007 |
||||||||||||||||||||||||||
Net (loss) income before income tax |
(536,627 |
) |
(742,309 |
) |
(277,124 |
) |
(283 |
) |
(1,556,343 |
) |
(3,646,133 |
) |
245,981 |
(52,305 |
) |
861 |
(3,451,596 |
) | ||||||||||||||||||||||
Income tax benefits (expense) |
— | 12,477 | 2,199 | — | 14,676 | — | (22,032 | ) | (7,854 | ) | 10,550 | (19,336 | ) | |||||||||||||||||||||||||||
Equity in (loss) gains of subsidiaries, and consolidated affiliates |
(987,023 | ) | — | — | 987,023 | — | 175,661 | — | — | (175,661 | ) | — | ||||||||||||||||||||||||||||
Net (loss) income from continuing operations |
(1,523,650 |
) |
(729,832 |
) |
(274,925 |
) |
986,740 |
(1,541,667 |
) |
(3,470,472 |
) |
223,949 |
(60,159 |
) |
(164,250 |
) |
(3,470,932 |
) | ||||||||||||||||||||||
Net (loss) income from discontinued operations, net of tax |
— | (2 | ) | 18,012 | — | 18,010 | — | — | 452 | — | 452 | |||||||||||||||||||||||||||||
Net (loss) income |
(1,523,650 |
) |
(729,834 |
) |
(256,913 |
) |
986,740 |
(1,523,657 |
) |
(3,470,472 |
) |
223,949 |
(59,707 |
) |
(164,250 |
) |
(3,470,480 |
) | ||||||||||||||||||||||
Less: Net loss attributable to noncontrolling interest |
— | (7 | ) | — | — | (7 | ) | — | (8 | ) | — | — | (8 | ) | ||||||||||||||||||||||||||
Net (loss) income attributable to Full Truck Alliance Co. Ltd. |
(1,523,650 |
) |
(729,827 |
) |
(256,913 |
) |
986,740 |
(1,523,650 |
) |
(3,470,472 |
) |
223,957 |
(59,707 |
) |
(164,250 |
) |
(3,470,472 |
) | ||||||||||||||||||||||
Deemed Dividend |
— | — | — | — | — | (120,086 | ) | — | — | — | (120,086 | ) | ||||||||||||||||||||||||||||
Net (loss) income attributable to ordinary shareholders |
(1,523,650 |
) |
(729,827 |
) |
(256,913 |
) |
986,740 |
(1,523,650 |
) |
(3,590,558 |
) |
223,957 |
(59,707 |
) |
(164,250 |
) |
(3,590,558 |
) |
For the Year Ended December 31, 2021 |
||||||||||||||||||||||||||||||||||||||||
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
||||||||||||||||||||||||||||||||||||
RMB |
US$ |
RMB |
US$ |
RMB |
US$ |
RMB |
US$ |
RMB |
US$ |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||||||
Freight Matching Services |
— |
— |
3,946,882 |
619,352 |
— |
— |
— |
— |
3,946,882 |
619,352 |
||||||||||||||||||||||||||||||
Freight brokerage |
— | — | 2,497,779 | 391,956 | — | — | — | — | 2,497,779 | 391,956 | ||||||||||||||||||||||||||||||
Freight listings |
— | — | 753,031 | 118,167 | — | — | — | — | 753,031 | 118,167 | ||||||||||||||||||||||||||||||
Transaction commission |
— | — | 696,072 | 109,229 | — | — | — | — | 696,072 | 109,229 | ||||||||||||||||||||||||||||||
Value-added services |
— |
— |
1,141,867 |
179,184 |
1,056,488 |
165,786 |
(1,488,218 |
) |
(233,534 |
) |
710,137 |
111,436 |
||||||||||||||||||||||||||||
Credit solutions |
— | — | 517,776 | 81,251 | 2,310 | 362 | — | — | 520,086 | 81,613 | ||||||||||||||||||||||||||||||
Other value-added services |
— | — | 624,091 | 97,933 | 1,054,178 | 165,424 | (1,488,218 | ) | (233,534 | ) | 190,051 | 29,823 | ||||||||||||||||||||||||||||
Net Revenues |
— |
— |
5,088,749 |
798,536 |
1,056,488 |
165,786 |
(1,488,218 |
) |
(233,534 |
) |
4,657,019 |
730,788 |
||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||
Cost of revenues |
(3,740 | ) | (587 | ) | (2,949,238 | ) | (462,800 | ) | (39,434 | ) | (6,188 | ) | 452,414 | 70,994 | (2,539,998 | ) | (398,581 | ) | ||||||||||||||||||||||
Sales and marketing expenses |
(56,973 | ) | (8,940 | ) | (495,510 | ) | (77,756 | ) | (309,066 | ) | (48,500 | ) | 24,248 | 3,805 | (837,301 | ) | (131,391 | ) | ||||||||||||||||||||||
General and administrative expenses |
(3,849,809 | ) | (604,119 | ) | (821,435 | ) | (128,901 | ) | (150,883 | ) | (23,677 | ) | 550,975 | 86,460 | (4,271,152 | ) | (670,237 | ) | ||||||||||||||||||||||
Research and development expenses |
(48,777 | ) | (7,654 | ) | (829,404 | ) | (130,152 | ) | (304,249 | ) | (47,743 | ) | 452,762 | 71,048 | (729,668 | ) | (114,501 | ) | ||||||||||||||||||||||
Provision for loans receivable |
— | — | (31,780 | ) | (4,987 | ) | (65,878 | ) | (10,338 | ) | — | — | (97,658 | ) | (15,325 | ) | ||||||||||||||||||||||||
Total operating expenses |
(3,959,299 |
) |
(621,300 |
) |
(5,127,367 |
) |
(804,596 |
) |
(869,510 |
) |
(136,446 |
) |
1,480,399 |
232,307 |
(8,475,777 |
) |
(1,330,035 |
) | ||||||||||||||||||||||
Other operating income |
— | — | 16,905 | 2,653 | 5,910 | 927 | — | — | 22,815 | 3,580 | ||||||||||||||||||||||||||||||
(Loss) income from operations |
(3,959,299 |
) |
(621,300 |
) |
(21,713 |
) |
(3,407 |
) |
192,888 |
30,267 |
(7,819 |
) |
(1,227 |
) |
(3,795,943 |
) |
(595,667 |
) | ||||||||||||||||||||||
Other (expense) income |
||||||||||||||||||||||||||||||||||||||||
Interest income |
153,749 | 24,127 | 49,713 | 7,801 | 42,497 | 6,668 | (11,308 | ) | (1,774 | ) | 234,651 | 36,822 | ||||||||||||||||||||||||||||
Interest expenses |
— | — | (11,788 | ) | (1,850 | ) | (237 | ) | (37 | ) | 11,985 | 1,881 | (40 | ) | (6 | ) | ||||||||||||||||||||||||
Foreign exchange loss |
(2,917 | ) | (458 | ) | (661 | ) | (104 | ) | (11,890 | ) | (1,866 | ) | — | — | (15,468 | ) | (2,428 | ) | ||||||||||||||||||||||
Investment (loss) income |
(379 | ) | (59 | ) | 647 | 102 | 28,049 | 4,401 | — | — | 28,317 | 4,444 | ||||||||||||||||||||||||||||
Unrealized gains from fair value changes of trading securities and derivative assets |
18,333 | 2,877 | — | — | 5,634 | 884 | — | — | 23,967 | 3,761 | ||||||||||||||||||||||||||||||
Other income (expenses) income, net |
2,277 | 357 | 11,305 | 1,774 | (6,515 | ) | (1,022 | ) | — | — | 7,067 | 1,109 | ||||||||||||||||||||||||||||
Impairment loss |
(43,708 | ) | (6,859 | ) | (66,953 | ) | (10,506 | ) | (906 | ) | (142 | ) | — | — | (111,567 | ) | (17,507 | ) | ||||||||||||||||||||||
Share of loss in equity method investees |
(5,696 | ) | (894 | ) | (4,613 | ) | (724 | ) | (1,012 | ) | (159 | ) | — | — | (11,321 | ) | (1,777 | ) | ||||||||||||||||||||||
Total other income (loss) |
121,659 |
19,091 |
(22,350 |
) |
(3,507 |
) |
55,620 |
8,727 |
677 |
107 |
155,606 |
24,418 |
||||||||||||||||||||||||||||
Net (loss) income before income tax |
(3,837,640 |
) |
(602,209 |
) |
(44,063 |
) |
(6,914 |
) |
248,508 |
38,994 |
(7,142 |
) |
(1,120 |
) |
(3,640,337 |
) |
(571,249 |
) | ||||||||||||||||||||||
Income tax (expense) benefits |
(14,090 | ) | (2,211 | ) | (7,956 | ) | (1,248 | ) | 7,855 | 1,232 | — | — | (14,191 | ) | (2,227 | ) | ||||||||||||||||||||||||
Equity in gain (loss) of subsidiaries and consolidated affiliates |
197,282 | 30,957 | — | — | — | — | (197,282 | ) | (30,957 | ) | — | — | ||||||||||||||||||||||||||||
Net (loss) income from continuing operations |
(3,654,448 |
) |
(573,463 |
) |
(52,019 |
) |
(8,162 |
) |
256,363 |
40,226 |
(204,424 |
) |
(32,077 |
) |
(3,654,528 |
) |
(573,476 |
) | ||||||||||||||||||||||
Net income from discontinued operations, net of tax |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net (loss) income |
(3,654,448 |
) |
(573,463 |
) |
(52,019 |
) |
(8,162 |
) |
256,363 |
40,226 |
(204,424 |
) |
(32,077 |
) |
(3,654,528 |
) |
(573,476 |
) | ||||||||||||||||||||||
Less: Net loss attributable to noncontrolling interest |
— | — | (80 | ) | (13 | ) | — | — | — | — | (80 | ) | (13 | ) | ||||||||||||||||||||||||||
Net (loss) income attributable to Full Truck Alliance Co. Ltd. |
(3,654,448 |
) |
(573,463 |
) |
(51,939 |
) |
(8,149 |
) |
256,363 |
40,226 |
(204,424 |
) |
(32,077 |
) |
(3,654,448 |
) |
(573,463 |
) | ||||||||||||||||||||||
Deemed Dividend |
(518,432 | ) | (81,353 | ) | — | — | — | — | — | — | (518,432 | ) | (81,353 | ) | ||||||||||||||||||||||||||
Net (loss) income attributable to ordinary shareholders |
(4,172,880 |
) |
(654,816 |
) |
(51,939 |
) |
(8,149 |
) |
256,363 |
40,226 |
(204,424 |
) |
(32,077 |
) |
(4,172,880 |
) |
(654,816 |
) |
As of December 31, |
||||||||||||||||||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||||||||||||||||||
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
|||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
693,676 | 2,726,157 | 563,888 | — | 3,983,721 | 7,025,967 | 2,226,218 | 808,206 | — | 10,060,391 | ||||||||||||||||||||||||||||||
Restricted cash–current |
— | 95,922 | — | — | 95,922 | — | 84,076 | 2,201 | — | 86,277 | ||||||||||||||||||||||||||||||
Short-term investments |
4,358,361 | — | 1,953,336 | — | 6,311,697 | 6,270,302 | 238,000 | 2,222,893 | — | 8,731,195 | ||||||||||||||||||||||||||||||
Accounts receivable, net |
— | 25,204 | 539 | — | 25,743 | — | 33,751 | 978 | — | 34,729 | ||||||||||||||||||||||||||||||
Amounts due from related parties |
49,359 | 1,130 | — | — | 50,489 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Loans receivable, net |
— | 1,478,742 | 9,353 | — | 1,488,095 | — | 1,312,283 | 1,674 | — | 1,313,957 | ||||||||||||||||||||||||||||||
Prepayments and other current assets |
36,488 | 418,884 | 90,316 | — | 545,688 | 13,762 | 421,371 | 21,669 | — | 456,802 | ||||||||||||||||||||||||||||||
Intercompany receivables |
— | 257,150 | 319,649 | (576,799 | ) | — | — | 92,413 | 250,069 | (342,482 | ) | — | ||||||||||||||||||||||||||||
Total current assets |
5,137,884 |
5,003,189 |
2,937,081 |
(576,799 |
) |
12,501,355 |
13,310,031 |
4,408,112 |
3,307,690 |
(342,482 |
) |
20,683,351 |
||||||||||||||||||||||||||||
Restricted cash–non-current |
— | — | — | — | — | — | 13,500 | — | — | 13,500 | ||||||||||||||||||||||||||||||
Property and equipment, net |
— | 49,031 | 2,327 | — | 51,358 | — | 36,922 | 2,062 | — | 38,984 | ||||||||||||||||||||||||||||||
Investment in and amount due from subsidiaries, and consolidated affiliates |
9,006,518 | — | — | (9,006,518 | ) | — | 9,675,404 | — | — | (9,675,404 | ) | — | ||||||||||||||||||||||||||||
Investments in equity investees |
533,647 | 396,706 | 54,906 | — | 985,259 | 522,672 | 297,628 | 54,905 | — | 875,205 | ||||||||||||||||||||||||||||||
Intangible assets, net |
— | 14,632 | 493,725 | — | 508,357 | — | 15,275 | 476,004 | — | 491,279 | ||||||||||||||||||||||||||||||
Goodwill |
— | — | 2,780,190 | — | 2,780,190 | — | — | 2,865,071 | — | 2,865,071 | ||||||||||||||||||||||||||||||
Deferred tax assets |
— | 17,009 | — | — | 17,009 | — | 18,966 | — | — | 18,966 | ||||||||||||||||||||||||||||||
Other non-current assets |
— | 114,875 | — | — | 114,875 | — | 147,000 | — | — | 147,000 | ||||||||||||||||||||||||||||||
Intercompany receivables |
— | — | 5,101,216 | (5,101,216 | ) | — | — | — | 5,692,605 | (5,692,605 | ) | — | ||||||||||||||||||||||||||||
Total non-current assets |
9,540,165 |
592,253 |
8,432,364 |
(14,107,734 |
) |
4,457,048 |
10,198,076 |
529,291 |
9,090,647 |
(15,368,009 |
) |
4,450,005 |
||||||||||||||||||||||||||||
Total assets |
14,678,049 |
5,595,442 |
11,369,445 |
(14,684,533 |
) |
16,958,403 |
23,508,107 |
4,937,403 |
12,398,337 |
(15,710,491 |
) |
25,133,356 |
||||||||||||||||||||||||||||
Short-term loans |
— | 500,000 | — | — | 500,000 | — | — | — | — | — |
As of December 31, |
||||||||||||||||||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||||||||||||||||||
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
|||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||||||
Accounts payable |
— | 17,588 | 392 | — | 17,980 | — | 23,839 | — | — | 23,839 | ||||||||||||||||||||||||||||||
Amounts due to related parties |
96,465 | 15,000 | — | — | 111,465 | 172,779 | — | — | — | 172,779 | ||||||||||||||||||||||||||||||
Payable to investors of the consolidated trusts |
— | 420,100 | — | — | 420,100 | — | 31,400 | — | — | 31,400 | ||||||||||||||||||||||||||||||
Prepaid for freight listing fees and other service fees |
— | 198,898 | 62,848 | — | 261,746 | — | 319,156 | 768 | — | 319,924 | ||||||||||||||||||||||||||||||
Income tax payable |
— | 4,525 | 5,935 | — | 10,460 | — | 23,554 | 2,370 | — | 25,924 | ||||||||||||||||||||||||||||||
Other tax payable |
— | 439,690 | 745 | — | 440,435 | — | 446,610 | 229 | — | 446,839 | ||||||||||||||||||||||||||||||
Accrued expenses and other current liabilities |
28,316 | 461,782 | 29,088 | — | 519,186 | 283,524 | 620,828 | 37,290 | — | 941,642 | ||||||||||||||||||||||||||||||
Intercompany payables |
— | 314,317 | 2,039,967 | (2,354,284 | ) | — | — | 250,069 | 483,907 | (733,976 | ) | — | ||||||||||||||||||||||||||||
Total current liabilities |
124,781 |
2,371,900 |
2,138,975 |
(2,354,284 |
) |
2,281,372 |
456,303 |
1,715,456 |
524,564 |
(733,976 |
) |
1,962,347 |
||||||||||||||||||||||||||||
Deferred tax liabilities |
— | — | 123,333 | — | 123,333 | — | — | 118,783 | — | 118,783 | ||||||||||||||||||||||||||||||
Total non-current liabilities |
— |
— |
123,333 |
— |
123,333 |
— |
— |
118,783 |
— |
118,783 |
||||||||||||||||||||||||||||||
Total liabilities |
124,781 |
2,371,900 |
2,262,308 |
(2,354,284 |
) |
2,404,705 |
456,303 |
1,715,456 |
643,347 |
(733,976 |
) |
2,081,130 |
As of December 31, 2021 |
||||||||||||||||||||||||||||||||||||||||
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
||||||||||||||||||||||||||||||||||||
RMB |
US$ |
RMB |
US$ |
RMB |
US$ |
RMB |
US$ |
RMB |
US$ |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
1,032,540 | 162,028 | 2,948,946 | 462,754 | 302,805 | 47,517 | — | — | 4,284,291 | 672,299 | ||||||||||||||||||||||||||||||
Restricted cash–current |
— | — | 63,294 | 9,932 | 2,528 | 397 | — | — | 65,822 | 10,329 | ||||||||||||||||||||||||||||||
Short-term investments |
17,866,528 | 2,803,648 | 550,000 | 86,307 | 3,218,114 | 504,992 | — | — | 21,634,642 | 3,394,947 | ||||||||||||||||||||||||||||||
Accounts receivable, net |
— | — | 28,734 | 4,509 | 405 | 64 | — | — | 29,139 | 4,573 | ||||||||||||||||||||||||||||||
Amounts due from related parties |
— | — | 7,075 | 1,110 | — | — | — | — | 7,075 | 1,110 | ||||||||||||||||||||||||||||||
Loans receivable, net |
— | — | 1,774,038 | 278,386 | 3,629 | 569 | — | — | 1,777,667 | 278,955 | ||||||||||||||||||||||||||||||
Prepayments and other current assets |
113,595 | 17,826 | 849,323 | 133,276 | 136,689 | 21,448 | — | — | 1,099,607 | 172,550 | ||||||||||||||||||||||||||||||
Intercompany receivables |
— | — | 526,865 | 82,676 | 681,611 | 106,960 | (1,208,476 | ) | (189,636 | ) | — | — | ||||||||||||||||||||||||||||
Total current assets |
19,012,663 |
2,983,502 |
6,748,275 |
1,058,950 |
4,345,781 |
681,947 |
(1,208,476 |
) |
(189,636 |
) |
28,898,243 |
4,534,763 |
||||||||||||||||||||||||||||
Restricted cash–non-current |
— | — | 13,500 | 2,118 | — | — | — | — | 13,500 | 2,118 | ||||||||||||||||||||||||||||||
Property and equipment, net |
— | — | 100,931 | 15,838 | 1,227 | 193 | — | — | 102,158 | 16,031 | ||||||||||||||||||||||||||||||
Investment in and amount due from subsidiaries, and consolidated affiliates |
11,885,179 | 1,865,044 | — | — | — | — | (11,885,179 | ) | (1,865,044 | ) | — | — | ||||||||||||||||||||||||||||
Investments in equity investees |
1,007,361 | 158,077 | 670,110 | 105,155 | 880 | 138 | — | — | 1,678,351 | 263,370 | ||||||||||||||||||||||||||||||
Intangible assets, net |
— | — | 119,298 | 18,720 | 437,718 | 68,688 | — | — | 557,016 | 87,408 | ||||||||||||||||||||||||||||||
Goodwill |
— | — | 283,256 | 44,449 | 2,841,572 | 445,905 | — | — | 3,124,828 | 490,354 | ||||||||||||||||||||||||||||||
Deferred tax assets |
— | — | 20,492 | 3,216 | — | — | — | — | 20,492 | 3,216 | ||||||||||||||||||||||||||||||
Other non-current assets |
— | — | 3,836 | 602 | 11 | 2 | — | — | 3,847 | 604 | ||||||||||||||||||||||||||||||
Intercompany receivables |
— | — | — | — | 7,533,695 | 1,182,201 | (7,533,695 | ) | (1,182,201 | ) | — | — | ||||||||||||||||||||||||||||
Total non-current assets |
12,892,540 |
2,023,121 |
1,211,423 |
190,098 |
10,815,103 |
1,697,127 |
(19,418,874 |
) |
(3,047,245 |
) |
5,500,192 |
863,101 |
||||||||||||||||||||||||||||
Total assets |
31,905,203 |
5,006,623 |
7,959,698 |
1,249,048 |
15,160,884 |
2,379,074 |
(20,627,350 |
) |
(3,236,881 |
) |
34,398,435 |
5,397,864 |
||||||||||||||||||||||||||||
Short-term loans |
— | — | 9,000 | 1,412 | — | — | — | — | 9,000 | 1,412 | ||||||||||||||||||||||||||||||
Accounts payable |
42 | 7 | 29,077 | 4,563 | 262 | 41 | — | — | 29,381 | 4,611 | ||||||||||||||||||||||||||||||
Amounts due to related parties |
179,859 | 28,224 | — | — | — | — | — | — | 179,859 | 28,224 | ||||||||||||||||||||||||||||||
Payable to investors of the consolidated trusts |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Prepaid for freight listing fees and other service fees |
— | — | 383,153 | 60,125 | 83 | 13 | — | — | 383,236 | 60,138 | ||||||||||||||||||||||||||||||
Income tax payable |
9,084 | 1,425 | 21,573 | 3,386 | 881 | 138 | — | — | 31,538 | 4,949 | ||||||||||||||||||||||||||||||
Other tax payable |
250,008 | 39,232 | 566,479 | 88,893 | 78,105 | 12,256 | — | — | 894,592 | 140,381 | ||||||||||||||||||||||||||||||
Accrued expenses and other current liabilities |
10,765 | 1,690 | 1,045,484 | 164,059 | 149,930 | 23,527 | — | — | 1,206,179 | 189,276 | ||||||||||||||||||||||||||||||
Intercompany payables |
— | — | 681,525 | 106,946 | 859,272 | 134,839 | (1,540,797 | ) | (241,785 | ) | — | — | ||||||||||||||||||||||||||||
Total current liabilities |
449,758 |
70,578 |
2,736,291 |
429,384 |
1,088,533 |
170,814 |
(1,540,797 |
) |
(241,785 |
) |
2,733,785 |
428,991 |
||||||||||||||||||||||||||||
Deferred tax liabilities |
— | — | 26,415 | 4,145 | 109,349 | 17,159 | — | — | 135,764 | 21,304 | ||||||||||||||||||||||||||||||
Total non-current liabilities |
— | — | 26,415 |
4,145 |
109,349 |
17,159 |
— | — | 135,764 |
21,304 |
||||||||||||||||||||||||||||||
Total liabilities |
449,758 |
70,578 |
2,762,706 |
433,529 |
1,197,882 |
187,973 |
(1,540,797 |
) |
(241,785 |
) |
2,869,549 |
450,295 |
For the Years Ended December 31, |
||||||||||||||||||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||||||||||||||||||
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
|||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||||||
Net cash (used in) provided by operating activities |
(50,031 | ) | (466,864 | ) | (367,969 | ) | (39,101 | ) | (923,965 | ) | (12,505 | ) | 551,586 | (195,362 | ) | 231,023 | 574,742 | |||||||||||||||||||||||
Net cash (used in) provided by investing activities |
(1,513,540 | ) | (122,872 | ) | (2,127,625 | ) | 372,838 | (3,391,199 | ) | (2,593,765 | ) | (72,390 | ) | (429,184 | ) | 404,444 | (2,690,895 | ) | ||||||||||||||||||||||
Net cash provided by (used in) financing activities |
1,287,535 | 686,725 | 52,702 | (333,737 | ) | 1,693,225 | 9,213,148 | (977,481 | ) | 724,248 | (635,467 | ) | 8,324,448 |
For the Year Ended December 31, 2021 |
||||||||||||||||||||||||||||||||||||||||
Parent |
Consolidated affiliates |
Subsidiaries |
Eliminating Entries |
Total |
||||||||||||||||||||||||||||||||||||
RMB |
US$ |
RMB |
US$ |
RMB |
US$ |
RMB |
US$ |
RMB |
US$ |
|||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||||||||||
Net cash (used in) provided by operating activities |
(187,969 | ) | (29,496 | ) | (286,501 | ) | (44,958 | ) | 263,051 | 41,278 | — | — | (211,419 | ) | (33,176 | ) | ||||||||||||||||||||||||
Net cash used in investing activities |
(14,562,068 | ) | (2,285,106 | ) | (815,721 | ) | (128,004 | ) | (2,864,575 | ) | (449,515 | ) | 3,843,391 | 603,112 | (14,398,973 | ) | (2,259,513 | ) | ||||||||||||||||||||||
Net cash provided by financing activities |
8,859,414 | 1,390,235 | 1,804,168 | 283,113 | 2,081,323 | 326,606 | (3,843,391 | ) | (603,112 | ) | 8,901,514 | 1,396,842 |
A. |
[Reserved] |
B. |
Capitalization and Indebtedness |
C. |
Reasons for the Offer and Use of Proceeds |
D. |
Risk Factors |
• | The Group’s historical financial and operating performance may not be indicative of its future prospects and results of operations due to the limited operating history of some of the Group’s business lines, evolving business model and changing market; |
• | The Group’s operations have grown substantially since inception. We may not be able to effectively manage the Group’s growth, control the Group’s expenses or implement the Group’s business strategies; |
• | The Group’s business may be affected by fluctuations in China’s road transportation market; |
• | If we are unable to attract or maintain a critical mass of shippers and truckers in a cost-effective manner, whether as a result of competition or other factors, the FTA platform will become less appealing to shippers and truckers, and the Group’s financial results would be adversely impacted; |
• | The Group is currently subject to cybersecurity review by regulatory authorities in China, which could materially and adversely affect its business, results of operations and financial condition; |
• | We may not succeed in continuing to maintain, protect and strengthen the Group’s brands, and any negative publicity about the Group, its business, its management, its ecosystem participants or the road transportation market in general, may materially and adversely affect the Group’s reputation, business, results of operations and growth; |
• | If the Group’s solutions and services do not achieve and maintain sufficient market acceptance or provide the expected benefits to ecosystem participants, its financial condition, results of operations and competitive position will be materially and adversely affected; |
• | If the Group’s users, other ecosystem participants or their employees engage in, or are subject to, criminal, violent, fraudulent, inappropriate or dangerous activities, the Group’s reputation, business, financial condition, and operating results may be adversely impacted; |
• | If we fail to effectively match truckers with shipments and optimize our pricing models, the Group’s business, financial condition and results of operations could be adversely affected; |
• | We cannot guarantee that our monetization strategies or the Group’s business initiatives will be successfully implemented or generate sustainable revenues and profit; |
• | The Group has incurred, and in the future may continue to incur, net losses; and |
• | We may be required to write down goodwill and other identifiable intangible assets. |
• | If the PRC government deems that the contractual arrangements in relation to the Group VIEs do not comply with PRC regulatory restrictions on foreign investment in the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations; |
• | Our contractual arrangements with the Group VIEs may result in adverse tax consequences to us; |
• | We rely on contractual arrangements with the Group VIEs and their shareholders to conduct a substantial part of the Group’s operations in China, which may not be as effective as direct ownership in providing operational control and otherwise have a material adverse effect as to our business; and |
• | The shareholders of the Group VIEs may have potential conflicts of interest with us, which may materially and adversely affect our business and financial condition. |
• | Changes in the political and economic policies of the PRC government may materially and adversely affect the Group’s business, financial condition and results of operations and may result in our inability to sustain our growth and expansion strategies; |
• | There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations; |
• | The audit report included in this annual report filed with the SEC is prepared by an auditor who is not inspected by the PCAOB and, as such, our investors are deprived of the benefits of such inspection; |
• | Due to the enactment of the HFCA Act, we may not be able to maintain our listing on the NYSE; and |
• | You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing original actions in China, based on the United States or other foreign laws, against us, our directors, executive officers or the expert named in this annual report. Therefore, you may not be able to enjoy the protection of such laws in an effective manner. |
• | The trading price of our ADSs has been and is likely to continue to be volatile, which could result in substantial losses to holders of our ADSs; |
• | We may fail to meet our publicly announced guidance or other expectations about the Group’s business, which could cause our stock price to decline; |
• | If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about the Group’s business, the market price for our ADSs and their trading volume could decline; and |
• | Because we do not expect to pay cash dividends in the foreseeable future, you may not receive any return on your investment unless you sell your ADSs for a price greater than that which you paid for them. |
• | continue to maintain, protect and strengthen the Group’s brands and reputation; |
• | attract or maintain a critical mass of shippers and truckers; |
• | continue to provide superior experience to shippers and truckers; |
• | keep up with the technological developments and implementation of advanced technologies; |
• | effectively match truckers with shipments and optimize the related pricing models; |
• | capture monetization opportunities on the FTA platform; |
• | comply with complex and evolving laws and regulations; |
• | maintain and expand cooperative relationships or strategic partnerships with other ecosystem participants; |
• | improve the Group’s operational efficiency; |
• | attract, retain and motivate talented employees, particularly sales and marketing and research and development personnel to support the Group’s business growth; |
• | navigate economic conditions and fluctuations; |
• | implement the Group’s business strategies, including the offering of new services; and |
• | comply with evolving laws, rules, policies, guidelines and regulatory requirements and resolve legal actions and regulatory actions. |
• | a reduction in overall cargo volumes reduces the Group’s revenue and opportunities for growth; in addition, a decline in the volume of cargo shipped due to a downturn in shippers’ business cycles or other factors generally results in decreases in order pricing, as truckers compete for shipping orders to maintain truck productivity, which will affect the Group’s monetization opportunities; |
• | a number of truckers may go out of business and the Group may be unable to have sufficient truckers to meet shippers’ demand when the market recovers; and |
• | the Group may not be able to appropriately adjust its expenses to changing platform activities. In periods of rapid change, it is more difficult to match the Group’s staffing levels to its business needs. In addition, the Group has other expenses that are fixed for a period of time, and it may not be able to adequately adjust them in a period of rapid change in platform activities. |
• | maintain the quality and reliability of services offered on the FTA platform; |
• | maintain and develop relationships with shippers, truckers, and other ecosystem participants; |
• | provide prospective and existing shippers and truckers with superior experiences; |
• | effectively manage and resolve user complaints; and |
• | effectively protect personal information and privacy of, and any sensitive data received from shippers and truckers. |
• | our failure to predict market demand accurately and supply solutions and services that meet this demand in a timely fashion; |
• | ecosystem participants may not like, find useful or agree with the functions and features of the Group’s solutions and/or services, fees charged for the Group’s solutions and/or services, or any changes we make; |
• | our failure to properly price new solutions and services; |
• | negative publicity about the Group’s solutions and services or the FTA platform’s performance or effectiveness; |
• | the Group’s failure to satisfy the expectations of the quality or reliability of its solutions and/or services; |
• | views taken by regulatory authorities that the Group’s solutions and services or platform changes do not comply with PRC laws, rules or regulations applicable to us; and |
• | the introduction or anticipated introduction of competing solutions and services by our competitors, particularly in the intra-city and LTL segments. |
• | protecting the data in and hosted on the Group’s system, including against attacks on its system by external parties or misbehavior by its employees; |
• | addressing concerns related to privacy, security and other factors; and |
• | complying with applicable laws, rules and regulations relating to the processing and security of data that include personal information and data that may be deemed core data or material data, including any requests from regulatory and government authorities relating to such data. |
• | dissatisfaction with these online payment services or decreased use of their services by shippers, truckers and other ecosystem participants; |
• | increasing competition, including from other established Chinese internet companies, payment service providers and companies engaged in other financial technology services; |
• | changes to rules or practices applicable to payment systems that third-party online payment service providers reply on; |
• | breach of users’ personal information and concerns over the use and security of information collected from users; |
• | service outages, system failures or failures to effectively scale the system to handle large and growing transaction volumes; |
• | increasing costs to third-party online payment service providers, including fees charged by commercial banks processing transactions through online payment channels, which could in turn be passed on to us and increase the Group’s costs of revenues; and |
• | failure to manage funds accurately or loss of funds, whether due to employee fraud, security breaches, technical errors or otherwise. |
• | the Group’s ability to attract or maintain a critical mass of shippers and truckers; |
• | the levels of user engagement and transaction activities; |
• | the mix of solutions and services we offer; |
• | the amount and timing of incurrence of the Group’s operating cost and expenses and the maintenance and expansion of its business, operations and infrastructure; |
• | the Group’s focus on the long-term success and future growth, instead of near-term profit; |
• | the Group’s ability to execute its monetization strategies; |
• | network outages or security breaches; |
• | general economic, industry and market conditions; and |
• | changes in applicable laws and regulations, as well as our involvement in legal or regulatory actions. |
• | difficulties in assimilating and integrating the operations, personnel, systems, data, technologies, products and services of the acquired business; |
• | inability of the acquired technologies, products or businesses to achieve expected levels of revenue, profitability, productivity or other benefits, including the inability to successfully further develop the acquired technology; |
• | difficulties in retaining, training, motivating and integrating key personnel; |
• | diversion of management’s time and resources from the Group’s normal daily operations and potential disruptions to its ongoing business; |
• | strain on the Group’s liquidity and capital resources; |
• | difficulties in executing intended business plans and achieving the intended objectives, benefits, revenue-enhancing opportunities or synergies from such strategic investments or acquisitions; |
• | difficulties in maintaining uniform standards, controls, procedures and policies within the overall organization; |
• | difficulties in retaining relationships with existing business partners of the acquired business; |
• | risks of entering markets in which the Group has limited or no prior experience; |
• | regulatory risks, including remaining in good standing with existing regulatory bodies or receiving any necessary pre-closing or post-closing approvals, as well as being subject to new regulators with oversight over an acquired business; |
• | assumption of contractual obligations that contain terms that are not beneficial to the Group, require it to license or waive intellectual property rights or increase its risk for liability; |
• | liability for activities of the acquired business before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities and litigations and other proceedings initiated in connection therewith; |
• | in the case of overseas acquisitions, the need to integrate operations across different cultures and languages and to address the particular economic, currency, political and regulatory risks associated with specific countries; and |
• | unexpected costs and unknown risks and liabilities associated with strategic in-vestments or acquisitions. |
• | these companies have limited operating histories in evolving industries and may have less predictable operating results; |
• | these companies may be privately owned and, as a result, limited public information is available and we may not learn all the material information regarding these businesses; |
• | these companies may be domiciled and operate in countries with particular economic, tax, political, legal, safety, regulatory and public health risks, including the extent of the impact of the COVID-19 pandemic on their businesses; |
• | these companies depend on the management talents and efforts of a small group of individuals, and, as a result, the death, disability, resignation, or termination of one or more of these individuals could have an adverse effect on the relevant company’s operations; and |
• | these companies will likely require substantial additional capital to support their operations and expansion and to maintain their competitive positions. Any of these risks could materially affect the value of our assets, which could have an adverse effect on the Group’s business, financial condition or results of operations. |
• | revoking the Group’s relevant business and operating licenses; |
• | imposing fines on us; |
• | confiscating any of the Group’s income that they deem to be obtained through illegal operations; |
• | shutting down the Group’s relevant services; |
• | discontinuing or restricting the Group’s operations in China; |
• | imposing conditions or requirements with which we may not be able to comply; |
• | requiring us to change our corporate structure and contractual arrangements; |
• | restricting or prohibiting our use of the proceeds from overseas offering to finance our PRC subsidiaries’ and the consolidated affiliates’ business and operations; and |
• | taking other regulatory or enforcement actions that could be harmful to the Group’s business. |
• | the composition of our board of directors and, through it, any determinations with respect to the Group’s operations, business direction and policies, including the appointment and removal of officers; |
• | any determinations with respect to mergers or other business combinations; |
• | our disposition of substantially all of our assets; and |
• | any change in control. |
• | regulatory developments affecting us or our industry; |
• | announcements of studies and reports relating to the quality of the Group’s service offerings or those of our competitors; |
• | changes in the economic performance or market valuations of other providers of similar services; |
• | actual or anticipated fluctuations in the Group’s quarterly results of operations and changes or revisions of its expected results; |
• | changes in financial estimates by securities research analysts; |
• | announcements by us or our competitors of new service offerings, acquisitions, strategic relationships, joint ventures, capital raisings or capital commitments; |
• | additions to or departures of our senior management; |
• | fluctuations of exchange rates between the Renminbi and the U.S. dollar; |
• | release or expiry of lock-up or other transfer restrictions on our ordinary shares or ADSs; and |
• | sales or perceived potential sales of additional Class A ordinary shares or ADSs. |
• | any derivative action or proceeding brought on behalf of our Company, |
• | any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to our Company or our shareholders, |
• | any action asserting a claim under any provision of the Companies Act, Cap. 22 (Act 3 of 1961, as consolidated and revised), as amended, of the Cayman Islands, or Cayman Companies Act, or our Articles, including but not limited to any purchase or acquisition of shares, security or guarantee provided in consideration thereof, or |
• | any action asserting a claim against our Company which if brought in the United States would be a claim arising under the internal affairs doctrine (as such concept is recognized under the laws of the United States). |
• | we have instructed the depositary that we do not wish a discretionary proxy to be given; |
• | we have informed the depositary that there is substantial opposition as to a matter to be voted on at the meeting; |
• | a matter to be voted on at the meeting would materially and adversely affect the rights of shareholders; or |
• | the voting at the meeting is to be made on a show of hands. |
A. |
History and Development of the Company |
B. |
Business Overview |
• | Freight Listing Service Huochebang Yunmanman Yunmanman Huochebang non-paying shippers. |
• | Freight Brokerage Service. end-to-end |
• | Online Transaction Service |
transact through the FTA platform. Truckers are required to make payments for freight deposits to the FTA platform to secure a shipping order, which contributes to better service quality and higher fulfillment rates. In the third quarter of 2020, the Group began monetization of its online transaction service by collecting commissions from truckers on selected types of shipping orders originating from an initial batch of three cities, namely Hangzhou, Huzhou and Shaoxing. The FTA platform’s daily average order volume and trucker retention remained stable in these cities since then, demonstrating platform users’ acceptance of such commissions. The Group started collecting commissions on selected types of shipping orders originating from certain other cities in the fourth quarter of 2020. In the three months ended December 31, 2021, the Group collected commissions in a total of 105 cities on shipping orders with GTV of RMB36.9 billion, representing 53.0% of the total nationwide GTV facilitated through the FTA platform in the same period. The Group’s total transaction commission revenue was RMB267.5 million in the three months ended December 31, 2021. We plan to roll out commissions in more cities in the future. |
• | Efficient Freight Matching . Shippers can post shipping orders in a standardized manner on their mobile phones anytime and anywhere, without having to go through intermediaries or travel to logistics parks. Shippers can get quotes from reliable truckers often within minutes rather than days and make informed decisions about their suitability based on truckers’ profiles and track records. Truckers can find shipments in minutes on mobile devices, without having to travel to and wait for days at logistics parks. They also save on the mileage and time of traveling long distance to and from logistics parks between shipments. |
• | Better Profitability . The FTA platform helps promote the financial wellbeing of millions of shippers and truckers. Shippers enjoy lower shipping costs and more transparent pricing as they can interface directly with truckers, cutting out layers of middlemen and the need to rent space at logistics parks. According to the CIC Report, a shipping transaction may involve multiple middlemen, and their fees typically accounted for a 10-15% of the freight fees paid by shippers in the past. Truckers can achieve higher income and utilization rates as less time and mileage is spent finding shipments. According to a trucker survey conducted by China Insights Consultancy in 2020, 63% of the respondents found an increase in their monthly shipping orders after using digital freight platforms. They can optimize their schedule and routes, leading to more visible incomes. With the transaction standards established by us, they also have higher certainty of freight fee collection and shorter receivable days. |
• | Smarter Operations . We enable shippers and truckers to operate in a smarter and more efficient manner. Shippers are supported by software that improves their operations such as transportation management systems as well as artificial intelligence, or AI, models that recommend suitable pricing for shipments. Truckers are supported by software and AI models that recommend suitable shipments and simplify their operations. |
• | Greater Assurance of Service Quality . The Group facilitates every part of the logistics transaction from end to end. Interactions and transactions are recorded on the FTA platform, improving accountability and providing a source of support for dispute resolution. The FTA platform can act as an escrow agent |
through which freight deposits are made to and held by the FTA platform until shippers confirm that the relevant transactions are completed, allowing shippers and truckers to transact with greater assurance. The Group provides round-the-clock, |
• | Access to Value-added Services . The Group provides a comprehensive range of value-added services to shippers and truckers, catering to their diverse and complex needs and addressing various pain points. It only collaborates with business partners that have a reliable track record to ensure the quality of value-added services offered to users. |
(1) | in the year ended December 31, 2021. |
(2) | as of December 31, 2021. |
(3) | in the three months ended December 31, 2021. |
(4) | Over 3.5 million truckers fulfilled shipping orders on the FTA platform in 2021, representing approximately 25% of China’s 14.3 million heavy-duty and medium-duty truckers in 2021 |
• | Dry Van Trucks 箱式卡车 ). Equipped with a steel compartment, a dry van truck offers aerodynamic and weather protection and is typically used to carry high value consumer products. |
• | Flatbed Trucks 平板卡车 ). A flatbed truck (including drop-deck truck) has a heavily reinforced steel platform with no roof or walls to the side. Flatbed trucks are typically used to move heavy cargo, such as steel plates and steel coils. |
• | Stake Body Trucks 高 栏 卡车 ). A stake body truck is a flatbed truck with stake sides. Stake body trucks are typically used to transport light cargo, such as cargo packed in cardboard boxes and consumer products. |
Truck Length |
Typical Route |
Maximum Cargo Weight | ||
4.2 meters |
short-to-medium-haul |
2.5 tons | ||
6.8 to 9.6 meters |
medium-to-long-haul |
8 to 19 tons | ||
13 to 17.5 meters |
long-haul | 25 to 33 tons |
• | Matching Algorithms . The Group’s matching algorithms are mainly used in two scenarios: search and recommendation of shipments. With respect to searches, relevant shipments are pulled based on a trucker’s searching criteria, such as routes and truck type. The matching algorithm predicts the trucker’s probability of accepting an order based on the correlation between the freight labels and the trucker labels. The search results are then ranked taking into account such probability. With respect to recommendations, the algorithm analyzes transaction records, current location and recent searches to determine truckers’ preferences such as freight types and routes. Truckers receive recommended shipping orders when the system identifies suitable freights located on or near truckers’ preferred routes. |
• | Pricing Algorithms . The Group’s machine learning-based pricing algorithms estimate freight prices, which are used by shippers as references in price negotiations. The pricing methodology depends on the availability of comparable historical transaction data. If a shipping order fits into a standardized category, the recommended price of such shipping order will be based on the average price of recent transactions within such category. If a shipping order does not fit into any standardized category, the system estimates the price using a machine learning model (clustering + lightGBM) that has been trained with a massive amount of historical transaction data. The Group’s clustering algorithms help create groups of observations that are similar to each other in terms of how the value of their features affects their prediction. LightGBM is a fast, distributed, high-performance gradient boosting framework based on decision tree algorithms, which is used for ranking, classification and many other machine learning tasks. LightGBM has the advantages of faster training speed, high-efficiency parallel training, better model accuracy and fast processing of massive data. By clustering data affecting pricing and applying such data to LightGBM model, the Group obtains more accurate results in price estimation. |
• | Environmentally Friendly |
• | Socially Responsible |
• | Quality Governance |
Function |
Number of employees |
% of total employees |
||||||
Customer services and operations |
1,062 | 15.0 | ||||||
Research and development |
1,688 | 23.8 | ||||||
General and administration |
550 | 7.7 | ||||||
Sales and marketing |
3,803 | 53.5 | ||||||
Total |
7,103 |
100.0 |
||||||
|
|
|
|
License/Permit |
Holder |
Grant Date |
Expiration Date | |||
Value-Added Telecommunication Business Operation License | Manyun Software | January 5, 2022 | January 5, 2027 | |||
Value-Added Telecommunication Business Operation License | Manyun Software | August 21, 2018 | August 21, 2023 | |||
Internet Culture Operating License | Manyun Software | November 27, 2019 | November 26, 2022 | |||
License for Production and Operation of Radio and TV Programs | Manyun Software | April 30, 2021 | April 30, 2023 | |||
Permit for Road Transport Business | Manyun Software | March 29, 2022 | December 31, 2023 | |||
Approval of the Establishment of Huochebang Microfinance | Guizhou Huochebang Microfinance Co., Ltd., or Huochebang Microfinance | July 13, 2016 | N/A | |||
Approval of the Operation of Huochebang Microfinance | Huochebang Microfinance | December 15, 2016 | N/A | |||
Permit for Insurance Brokerage Business | Shan’en Insurance | March 5, 2018 | March 4, 2024 | |||
Permit for Road Transport Business | Shan’en Technology | December 16, 2021 | December 15, 2024 | |||
Value-Added Telecommunication Business Operation License | Shan’en Technology | January 4, 2022 | December 19, 2026 | |||
Value-Added Telecommunication Business Operation License | Hainan Manyun Software Technology Co., Ltd, or Hainan Manyun | May 22, 2020 | May 22, 2025 | |||
Permit for Road Transport Business | Hainan Manyun | June 3, 2020 | June 2, 2024 |
C. |
Organizational Structure |
(1) | Besides FTA Information, FTA HK’s subsidiaries include two insignificant subsidiaries incorporated in the PRC that are wholly-owned by FTA HK and one insignificant subsidiary incorporated in the British Virgin Islands that is wholly-owned by FTA HK. |
(2) | Includes two insignificant subsidiaries that are wholly-owned by FTA. |
(3) | Mr. Peter Hui Zhang and Ms. Guizhen Ma hold 70% and 30% equity interest, respectively, in Manyun Software. Manyun Software and its subsidiaries are primarily involved in operating the Yunmanman Shengsheng Huitouche |
(4) | Includes six insignificant subsidiaries that are wholly-owned by Jiangsu Manyun. |
(5) | Mr. Peter Hui Zhang and Ms. Guizhen Ma hold 70% and 30% equity interest, respectively, in Shan’en Technology. Shan’en Technology and its subsidiaries are primarily involved in operating the Huochebang |
(6) | Includes four insignificant subsidiaries that are wholly-owned by Manyun Software and two insignificant subsidiaries that are majority-owned by Manyun Software. |
(7) | Previously, Guiyang Huochebang was a Group VIE of FTA Information. In March 2021, as directed by FTA Information, Guizhou FTA, a newly established entity, acquired 100% of equity interest in Guiyang Huochebang for a nominal price from the shareholders of Guiyang Huochebang, and FTA Information gained control over Guizhou FTA through a series of contractual arrangements with Guizhou FTA and its shareholders. As a result, Guizhou FTA became a Group VIE, and Guiyang Huochebang became a subsidiary of Guizhou FTA. |
(8) | Includes 20 insignificant subsidiaries that are wholly-owned by Guiyang Huochebang. |
(9) | Include two insignificant subsidiaries that are wholly-owned by Chengdu Yunli. |
(1) | Our PRC subsidiaries, Jiangsu Manyun and FTA Information, entered into contractual arrangements with the Group VIEs, which are Manyun Software and Shan’en Technology, respectively. |
• | exercise effective control over our Group VIEs and their subsidiaries; |
• | receive substantially all the economic benefits of our Group VIEs; and |
• | have an exclusive option to purchase all or part of the equity interests in all or part of the assets when and to the extent permitted by PRC law. |
• | the ownership structures of Jiangsu Manyun, FTA Information, Manyun Software and Shan’en Technology in China do not violate any applicable PRC law, regulation, or rule currently in effect; and |
• | before the termination date of the contractual arrangements with respect to Beijing Yunmanman, Shanghai Xiwei, and Guizhou FTA, the ownership structures of Jiangsu Manyun, FTA Information, Beijing Yunmanman, Shanghai Xiwei and Guizhou FTA in China do not violate any applicable PRC law, regulation, or rule then in effect; |
• | the contractual arrangements with respect to Manyun Software and Shan’en Technology governed by PRC laws are valid, binding and enforceable in accordance with their terms and applicable PRC laws, rules, and regulations currently in effect, and do not violate any applicable PRC law, regulation, or rule currently in effect; and |
• | before the termination date of the contractual arrangements with respect to Beijing Yunmanman, Shanghai Xiwei, and Guizhou FTA, the contractual arrangements governed by PRC laws were valid, binding and enforceable in accordance with their terms and applicable PRC laws, rules, and regulations then in effect, and do not violate any applicable PRC law, regulation, or rule then in effect. |
D. |
Property, Plants and Equipment |
ITEM 4A. |
UNRESOLVED STAFF COMMENTS |
ITEM 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. |
Operating Results |
For the Three Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 |
June 30, 2019 |
September 30, 2019 |
December 31, 2019 |
March 31, 2020 |
June 30, 2020 |
September 30, 2020 |
December 31, 2020 |
March 31, 2021 (2) |
June 30, 2021 |
September 30, 2021 |
December 31, 2021 |
|||||||||||||||||||||||||||||||||||||
Average shipper MAUs ( in millions |
0.41 | 0.56 | 0.72 | 0.88 | 0.73 | 1.09 | 1.22 | 1.31 | 1.22 | 1.53 | 1.61 | 1.57 | ||||||||||||||||||||||||||||||||||||
Fulfilled orders ( in millions |
N/A | (1) |
N/A | (1) |
10.0 | 11.5 | 8.2 | 19.2 | 19.8 | 24.6 | 22.1 | 36.0 | 35.3 | (3) |
34.8 | (3) | ||||||||||||||||||||||||||||||||
GTV ( RMB in billions |
N/A | (1) |
N/A | (1) |
27.7 | 33.3 | 24.7 | 46.9 | 45.2 | 56.9 | 51.5 | 74.0 | 67.3 | (3) |
69.5 |
(1) | GTV and number of fulfilled orders were not systematically collected from truckers and shippers prior to the third quarter of 2019 as we did not request truckers or shippers to provide such information. Therefore, GTV and fulfilled orders in the first and second quarters of 2019 are unavailable to us. The GTV and fulfilled orders of Shengsheng Huitouche Shengsheng Huitouche Shengsheng Huitouche |
(2) | Due to the Chinese New Year holiday season, the Group experienced a decrease in transaction activities on the FTA platform in the first quarter of 2021, compared to the fourth quarter of 2020. |
(3) | The number of fulfilled orders and GTV facilitated through the FTA platform decreased sequentially in the third quarter of 2021 from the second quarter of 2021 due to (i) inclement weather conditions and the COVID-19 outbreaks in certain parts of China in the third quarter of 2021, which had an adverse effect on road transportation industry in those regions and (ii) the suspension of new user registration due to the cybersecurity review since July 2021. In addition to regional COVID-19 outbreaks and the suspension of new user registration, the production constraints brought by electricity rationing measures also contributed to the sequential decrease in the number of fulfilled orders facilitated through the FTA platform in the fourth quarter of 2021 from the third quarter of 2021. |
For the Years Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||||||||||||||
Revenues (1) |
| |||||||||||||||||||||||||||
Freight matching services |
1,769,756 |
71.6 |
1,947,016 |
75.5 |
3,946,882 |
619,352 |
84.7 |
|||||||||||||||||||||
Freight brokerage |
1,292,496 | 52.3 | 1,365,207 | 52.9 | 2,497,779 | 391,956 | 53.6 | |||||||||||||||||||||
Freight listings |
477,260 | 19.3 | 538,665 | 20.9 | 753,031 | 118,167 | 16.2 | |||||||||||||||||||||
Transaction commission |
— | — | 43,144 | 1.7 | 696,072 | 109,229 | 14.9 | |||||||||||||||||||||
Value-added services |
703,305 |
28.4 |
633,804 |
24.5 |
710,137 |
111,436 |
15.3 |
|||||||||||||||||||||
Credit solutions |
484,904 | 19.6 | 472,841 | 18.3 | 520,086 | 81,613 | 11.2 | |||||||||||||||||||||
Other value-added services |
218,401 | 8.8 | 160,963 | 6.2 | 190,051 | 29,823 | 4.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
2,473,061 |
100.0 |
2,580,820 |
100.0 |
4,657,019 |
730,788 |
100.0 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | The Group recognizes revenue without deducting the related VAT, as we determine that the Group is the primary obligor of the VAT in the PRC, and such VAT are included in the cost of revenues. RMB1,359 million, RMB1,434 million and RMB2,620 million (US$411 million) of the Group’s revenues were attributable to VAT in the years ended December 31, 2019, 2020 and 2021, respectively, which were primarily related to VAT charged for freight brokerage services. The gross amount of VAT included in the cost of revenues was RMB1,813.9 million, RMB1,832.6 million and RMB3,510.7 million (US$550.9 million) in the years ended December 31, 2019, 2020 and 2021, respectively, which was primarily related to VAT charged for freight brokerage services. |
Revenue Recognized in Income Statement |
Amount (RMB) |
Explanatory note | ||||
Shipping fee and platform service fee received from the shipper, including VAT of RMB89 assuming VAT rate of 9% |
1,068 | VAT is included in the transaction price with the shipper. | ||||
Less: shipping fee paid to the trucker |
(1,000 | ) | The shipping fee is agreed between the shipper and the trucker. | |||
Net revenue recognized |
68 | The difference between the amount the consolidated affiliates collect from the shippers and the amount they pay to the truckers is the FTA platform service fee. |
Cost of Revenue Recognized in Income Statement (1) |
Amount (RMB) |
Explanatory note | ||||
VAT payable to tax authorities and recorded in cost of revenue |
89 | |||||
Less: Government subsidies based on VAT |
(45 | ) | The consolidated affiliates receive VAT refunds from local government authorities, and the rate of refund may vary across jurisdictions and over time. | |||
Net VAT recognized in cost of revenues |
44 |
(1) | While there are other less significant tax costs associated with an actual freight brokerage transaction, only VAT and related refunds are included in the calculation above. |
For the Years Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||||||||||||||
Cost of revenues |
| |||||||||||||||||||||||||||
VAT, related tax surcharges and other tax costs, net of tax refund from government authorities (1) |
1,140,318 | 46.1 | 1,099,661 | 42.6 | 2,257,721 | 354,286 | 48.5 | |||||||||||||||||||||
Payroll and related expenses for employees |
52,844 | 2.1 | 62,349 | 2.4 | 99,055 | 15,544 | 2.1 | |||||||||||||||||||||
Technology service fee |
36,416 | 1.5 | 37,461 | 1.5 | 115,815 | 18,174 | 2.5 | |||||||||||||||||||||
Commission fee paid to third-party payment platform |
71,118 | 2.9 | 59,127 | 2.3 | 35,892 | 5,632 | 0.8 | |||||||||||||||||||||
Funding costs related to credit solution services |
27,746 | 1.1 | 37,232 | 1.4 | 13,495 | 2,118 | 0.3 | |||||||||||||||||||||
Others |
61,422 | 2.5 | 20,187 | 0.8 | 18,020 | 2,827 | 0.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
1,389,864 |
56.2 |
1,316,017 |
51.0 |
2,539,998 |
398,581 |
54.5 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | In the years ended December 31, 2019, 2020 and 2021, the gross amount of VAT was RMB1,813.9 million, RMB1,832.6 million and RMB3,510.7 million (US$550.9 million), respectively, of which RMB1,747.7 million, RMB1,763.4 million and RMB3,380.9 million (US$530.5 million) was related to freight brokerage service; the amount of related tax surcharges and other tax costs was RMB329.3 million, RMB305.9 million and RMB594.6 million (US$93.3 million), respectively, substantially all of which was related to freight brokerage service; the amount of tax refunds (including refunds on VAT and related tax surcharges) from government authorities was RMB1,002.9 million, RMB1,038.8 million and |
RMB1,847.6 million (US$289.9 million), respectively, substantially all of which was related to freight brokerage service. |
For the Years Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
General and administrative expenses |
455,634 | 3,341,145 | 3,728,421 | 585,071 | ||||||||||||
Sales and marketing expenses |
— | 94,640 | 56,975 | 8,941 | ||||||||||||
Research and development expenses |
— | 42,680 | 48,777 | 7,654 | ||||||||||||
Cost of revenues |
— | 7,842 | 3,740 | 587 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
455,634 |
3,486,307 |
3,837,913 |
602,253 |
||||||||||||
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||||||||||||||
Net revenues |
2,473,061 |
100.0 |
2,580,820 |
100.0 |
4,657,019 |
730,788 |
100.0 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cost of revenues (including VAT net of refund of VAT, of RMB953,200, RMB893,909 and RMB 1,950,935 for the years ended December 31, 2019, 2020 and 2021, respectively) |
(1,389,864 | ) | (56.2 | ) | (1,316,017 | ) | (51.0 | ) | (2,539,998 | ) | (398,581 | ) | (54.5 | ) | ||||||||||||||
Sales and marketing expenses |
(403,117 | ) | (16.3 | ) | (454,343 | ) | (17.6 | ) | (837,301 | ) | (131,391 | ) | (18.0 | ) | ||||||||||||||
General and administrative expenses |
(1,189,423 | ) | (48.1 | ) | (3,938,565 | ) | (152.6 | ) | (4,271,152 | ) | (670,237 | ) | (91.7 | ) | ||||||||||||||
Research and development expenses |
(396,692 | (16.0 | ) | (413,369 | ) | (16.0 | ) | (729,668 | ) | (114,501 | ) | (15.7 | ) | |||||||||||||||
Provision for loans receivables |
(127,790 | ) | (5.2 | ) | (94,160 | ) | (3.6 | ) | (97,658 | ) | (15,325 | ) | (2.1 | ) | ||||||||||||||
Total operating expenses |
(3,506,886 |
) |
(141.8 |
) |
(6,216,454 |
) |
(240.9 |
) |
(8,475,777 |
) |
(1,330,035 |
) |
(182.0 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other operating income |
13,223 | 0.5 | 21,031 | 0.8 | 22,815 | 3,580 | 0.5 | |||||||||||||||||||||
Loss from operations |
(1,020,602 |
) |
(41.3 |
) |
(3,614,603 |
) | (140.1 |
) |
(3,795,943 |
) |
(595,667 |
) |
(81.5 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other (expense) income: |
| |||||||||||||||||||||||||||
Interest income |
229,310 | 9.3 | 209,832 | 8.1 | 234,651 | 36,822 | 5.0 | |||||||||||||||||||||
Interest expenses |
(39,996 | ) | (1.6 | ) | (8,367 | ) | (0.3 | ) | (40 | ) | (6 | ) | (0.0 | ) | ||||||||||||||
Foreign exchange loss |
(4,410 | ) | (0.2 | ) | (21,276 | ) | (0.8 | ) | (15,468 | ) | (2,428 | ) | (0.3 | ) | ||||||||||||||
Investment income |
— | — | 3,321 | 0.1 | 28,317 | 4,444 | 0.6 | |||||||||||||||||||||
Unrealized gains from fair value changes of trading securities and derivative assets |
— | — | 18,140 | 0.7 | 23,967 | 3,761 | 0.5 | |||||||||||||||||||||
Other (expenses) income, net |
(8,585 | ) | (0.3 | ) | (5,559 | ) | (0.2 | ) | 7,067 | 1,109 | 0.2 | |||||||||||||||||
Impairment loss |
(710,331 | ) | (28.7 | ) | (22,030 | ) | (0.9 | ) | (111,567 | ) | (17,507 | ) | (2.4 | ) | ||||||||||||||
Share of loss in equity method investees |
(1,729 | ) | (0.1 | ) | (11,054 | ) | (0.4 | ) | (11,321 | ) | (1,777 | ) | (0.2 | ) | ||||||||||||||
Total other (loss) income |
(535,741 |
) |
(21.7 |
) | 163,007 |
6.3 |
155,606 |
24,418 |
3.3 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net loss before income tax |
(1,556,343 |
) |
(62.9 |
) |
(3,451,596 |
) |
(133.7 |
) |
(3,640,337 |
) |
(571,249 |
) |
(78.2 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income tax benefit (expense) |
14,676 | 0.6 | (19,336 | ) | (0.7 | ) | (14,191 | ) | (2,227 | ) | (0.3 | ) | ||||||||||||||||
Net loss from continuing operations |
(1,541,667 |
) |
(62.3 |
) |
(3,470,932 |
) |
(134.5 |
) |
(3,654,528 |
) |
(573,476 |
) |
(78.5 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income from discontinued operations, net of tax |
18,010 | 0.7 | 452 | 0.0 | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net loss |
(1,523,657 |
) |
(61.6 |
) |
(3,470,480 |
) |
(134.5 |
) |
(3,654,528 |
) |
(573,476 |
) |
(78.5 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
• | Revenue from freight brokerage service increased by 83.0% from RMB1,365.2 million in 2020 to RMB2,497.8 million (US$392.0 million) in 2021, primarily driven by significant growth in transaction volume, partially offset by a decrease in the Group’s average fee rate to attract more shippers to the Group’s service. |
• | Revenue from freight listing service increased by 39.8% from RMB538.7 million in 2020 to RMB753.0 million (US$118.2 million) in 2021, primarily attributable to an increase in total paying members resulting from increased shipper demand for the Group’s service as the Group’s business continued to expand. |
• | Revenue from transaction commission increased by 15 times from RMB43.1 million in 2020 to RMB RMB696.1 million (US$109.2 million) in 2021, primarily driven by an increase in commissioned GTV as the Group started to monetize its online transaction service in more cities. The Group started generating revenue from transaction commission by collecting commissions from truckers on selected types of shipping orders originating from an initial batch of three cities in the third quarter of 2020. This number grew significantly in 2021. In the fourth quarter of 2021, the Group collected commissions in a total of 105 cities on shipping orders with GTV of RMB36.9 billion, representing 85.0% of the total GTV originating from these 105 cities and 53.0% of the total nationwide GTV facilitated through the FTA platform in the same period. |
• | Revenues from credit solutions increased by 10.0% from RMB472.8 million in 2020 to RMB520.1 million (US$81.6 million) in 2021, primarily due to an increase in the amount of loans funded and facilitated by the Group to address market demand. |
• | Revenues from other value-added services increased by 18.1% from RMB161.0 million in 2020 to RMB190.1 million (US$29.8 million) in 2021, primarily due to an increase in revenues from ETC, energy and insurance brokerage services, driven by heightened user engagement, partially offset by a reduction in revenue of RMB40.0 million from other value-added services that was recorded as a result of the Group’s strategic user incentive plans offering various forms of incentives to the shippers and truckers using the FTA platform in connection with new business initiatives. |
For the Years Ended December 31, |
||||||||||||||||||||
2020 |
2021 |
|||||||||||||||||||
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||||||
Sales and marketing expenses |
454,343 | 17.6 | 837,301 | 131,391 | 18.0 | |||||||||||||||
Share-based compensation expense included in sales and marketing expenses |
94,640 | 3.7 | 56,975 | 8,941 | 1.2 |
For the Years Ended December 31, |
||||||||||||||||||||
2020 |
2021 |
|||||||||||||||||||
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||||||
General and administrative expenses |
3,938,565 | 152.6 | 4,271,152 | 670,237 | 91.7 | |||||||||||||||
Share-based compensation expense included in general and administrative expenses |
3,341,145 | 129.5 | 3,728,421 | 585,071 | 80.1 | |||||||||||||||
Compensation expense resulting from repurchase of ordinary shares and convertible redeemable preferred shares in excess of fair value included in general and administrative expenses |
234,113 | 9.1 | 78,478 | 12,315 | 1.7 |
For the Years Ended December 31, |
||||||||||||||||||||
2020 |
2021 |
|||||||||||||||||||
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||||||
Research and development expenses |
413,369 | 16.0 | 729,668 | 114,501 | 15.7 | |||||||||||||||
Share-based compensation expense included in research and development expenses |
42,680 | 1.7 | 48,777 | 7,654 | 1.0 |
• | Revenue from freight brokerage service increased by 5.6% from RMB1,292.5 million in 2019 to RMB1,365.2 million in 2020, primarily due to an increase in the Group’s average fee rate, partially offset by (i) a decrease in transaction activities involving the freight brokerage service, which was primarily due to the impact of the COVID-19 pandemic, and (ii) a decrease in market rate for road transportation due to lower fuel cost and toll fees, which resulted in lower average service fee for freight brokerage transactions. For further information, see “—Impact of COVID-19.” |
• | Revenue from freight listing service increased by 12.9% from RMB477.3 million in 2019 to RMB538.7 million in 2020, primarily attributable to an increase in total paying members as a result of the Group’s successful paying member acquisition efforts. The number of users with active paying memberships increased from 348 thousand as of December 31, 2019 to 507 thousand as of December 31, 2020. |
• | In 2020, the Group started monetizing online transaction service by collecting commissions from truckers on certain shipping orders. Transaction commission amounted to RMB43.1 million in 2020. |
• | Revenues from credit solutions decreased by 2.5% from RMB484.9 million in 2019 to RMB472.8 million in 2020, primarily due to a decrease in the amount of loans funded and facilitated by the Group’s, as the Group terminated certain cash loan products and implemented conservative credit policies to enhance the quality of loan portfolio in light of the impact of the COVID-19 pandemic on the credit market and in response to regulatory developments in the credit market. |
• | Revenues from other value-added services decreased by 26.3% from RMB218.4 million in 2019 to RMB161.0 million in 2020, primarily due to a decrease in revenues from ETC services. Because all highway tolls were waived in China from February to May 2020 in response to the COVID-19 outbreak and the industry shifted from ETC debit card to ETC credit card in response to regulatory change, fees from ETC account top-up service declined significantly in 2020, which resulted in the decrease in revenues from ETC services. |
For the Years Ended December 31, |
||||||||||||||||
2019 |
2020 |
|||||||||||||||
RMB |
% |
RMB |
% |
|||||||||||||
(in thousands, except percentages) |
||||||||||||||||
Sales and marketing expenses |
403,117 | 16.3 | 454,343 | 17.6 | ||||||||||||
Share-based compensation expense included in sales and marketing expenses |
— | — | 94,640 | 3.7 |
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
|||||||||||||||
RMB |
% |
RMB |
% |
|||||||||||||
(in thousands, except percentages) |
||||||||||||||||
General and administrative expenses |
1,189,423 | 48.1 | 3,938,565 | 152.6 | ||||||||||||
Share-based compensation expense included general and administrative expenses |
455,635 | 18.4 | 3,341,145 | 129.5 | ||||||||||||
Compensation expense resulting from repurchase of ordinary shares in excess of fair value included in general and administrative expenses |
251,891 | 10.2 | 234,113 | 9.1 |
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
|||||||||||||||
RMB |
% |
RMB |
% |
|||||||||||||
(in thousands, except percentages) |
||||||||||||||||
Research and development expenses |
396,692 | 16.0 | 413,369 | 16.0 | ||||||||||||
Share-based compensation expense included in research and development expenses |
— | — | 42,680 | 1.7 |
For the Years Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Loss from operations |
(1,020,602 |
) |
(3,614,603 |
) |
(3,795,943 |
) |
(595,667 |
) | ||||||||
Add: |
||||||||||||||||
Share-based compensation expense |
455,634 | 3,486,307 | 3,837,913 | 602,253 | ||||||||||||
Compensation expense resulting from repurchase of ordinary shares in excess of fair value |
251,891 | 234,113 | 78,478 | 12,315 | ||||||||||||
Amortization of intangible assets resulting from business acquisitions |
41,333 | 42,200 | 45,204 | 7,093 | ||||||||||||
Compensation cost incurred in relation to business acquisitions |
— | — | 43,153 | 6,772 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP adjusted operating (loss)/income |
(271,744 |
) |
148,017 |
208,805 |
32,766 |
|||||||||||
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Net Loss |
(1,523,657 |
) |
(3,470,480 |
) |
(3,654,528 |
) |
(573,476 |
) | ||||||||
Add: |
||||||||||||||||
Share-based compensation expense |
455,634 | 3,486,307 | 3,837,913 | 602,253 | ||||||||||||
Compensation expense resulting from repurchase of ordinary shares in excess of fair value |
251,891 | 234,113 | 78,478 | 12,315 | ||||||||||||
Amortization of intangible assets resulting from business acquisitions |
41,333 | 42,200 | 45,204 | 7,093 | ||||||||||||
Compensation cost incurred in relation to business acquisitions |
— | — | 43,153 | 6,772 | ||||||||||||
Impairment loss related to one-time write-off and provision for long-term investment |
710,331 | — | 111,567 | 17,507 | ||||||||||||
Tax effects of non-GAAP adjustments(1) |
(10,333 | ) | (10,550 | ) | (11,301 | ) | (1,773 | ) | ||||||||
Less |
||||||||||||||||
Net income from discontinued operations, net of tax |
18,010 | 452 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP adjusted net (loss)/income |
(92,811 |
) |
281,138 |
450,486 |
70,691 |
|||||||||||
|
|
|
|
|
|
|
|
(1) | Comprise tax effects relating to amortization of intangible assets resulting from business acquisitions. |
B. |
Liquidity and Capital Resources |
As of December 31, 2021 |
||||
(in thousands) |
||||
Cash located outside of the PRC |
||||
— in U.S. dollars |
US$171,195 | |||
— in HK dollars |
HK$2,042 (US$262) | (1) | ||
— in RMB |
RMB639 (US$100) | |||
Cash located in the PRC |
||||
— held by our subsidiaries in U.S. dollars |
US$10,044 | |||
— held by our subsidiaries in RMB |
RMB1,192,742 (US$187,167) | |||
— held by the Group VIEs and their subsidiaries in RMB |
RMB1,933,714 (US$303,442) |
(1) | The translations from HK dollars to U.S. dollars were made at a rate of HK$7.7996 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 30, 2021. |
For the Years Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Summary Consolidated Cash Flow Data: |
| |||||||||||||||
Net cash (used in)/provided by operating activities |
(923,965 | ) | 574,742 | (211,419 | ) | (33,176 | ) | |||||||||
Net cash used in investing activities |
(3,391,199 | ) | (2,690,895 | ) | (14,398,973 | ) | (2,259,513 | ) | ||||||||
Net cash provided by financing activities |
1,693,225 | 8,324,448 | 8,901,514 | 1,396,842 | ||||||||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
19,884 | (127,770 | ) | (87,677 | ) | (13,759 | ) |
Payment due by period |
||||||||||||||||||||||||
Total |
Less than 1 Year |
1 – 3 Years |
3 – 5 Years |
More than 5 Years |
||||||||||||||||||||
RMB |
US$ |
RMB |
||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Operating lease commitments |
44,155 | 6,929 | 18,746 | 21,089 | 4,320 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
44,155 | 6,929 | 18,746 | 21,089 | 4,320 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
C. |
Research and Development |
D. |
Trend Information |
E. |
Critical Accounting Estimates |
For the Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Expected volatility |
34.2%~35.9 | % | 35.9%~39.3 | % | 37.2%-38.1 |
% | ||||||
Risk-free interest rate (per annum) |
1.67%~2.46 | % | 0.30%~1.04 | % | 1.00%~1.96 | % | ||||||
Exercise multiples |
2.80 | 2.80 | 2.80 | (1) | ||||||||
Expected dividend yield |
0.00 | % | 0.00 | % | 0.00 | % | ||||||
Fair value of underlying ordinary shares |
$ | 0.216~0.259 | $ | 0.261~0.395 | $ | 0.370~1.050 | ||||||
Fair value of share option |
$ | 0.293~0.305 | $ | 0.294~0.395 | $ | 0.370~1.050 |
(1) | Exercise multiples defines the early exercise strategy of the grantees and only applies to binomial option pricing model. |
• | our operating and financial performance; |
• | current business conditions and projections; |
• | our stage of development; |
• | the prices, rights, preferences and privileges of our redeemable convertible preferred shares relative to our ordinary shares; |
• | the likelihood of occurrence of liquidity event and redemption event; |
• | any adjustment necessary to recognize a lack of marketability for our ordinary shares; and |
• | the market performance of industry peers. |
ITEM 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. |
Directors and Senior Management |
Name |
Age |
Position(s) | ||
Peter Hui Zhang |
43 | Founder, chairman, chief executive officer and director | ||
Shanshan Guo |
42 | Independent director | ||
Guizhen Ma |
40 | Director | ||
Wenjian Dai |
47 | Director | ||
Richard Weidong Ji |
54 | Director | ||
Jennifer Xinzhe Li |
54 | Independent Director | ||
Mr. Simon Chong Cai |
39 | Chief Financial Officer | ||
Langbo Guo |
50 | Chief Strategy Officer | ||
Mr. Kai Shen |
41 | Chief Risk Officer and General Counsel | ||
Mr. Zhenghong Wang |
45 | Chief Customer Officer |
B. |
Compensation |
Name |
Position |
Class A Ordinary Shares Underlying Options |
Option Exercise Price (US$) |
Grant Date |
Expiration Date |
|||||||||||||
Peter Hui Zhang |
Founder, chairman and chief executive officer |
310,119,632 | 0.00001 | June 11, 2021 | June 10, 2031 | |||||||||||||
Simon Chong Cai |
Chief financial officer | * | 0.00001 | June 11, 2021 | June 10, 2031 | |||||||||||||
Kai Shen |
Chief risk officer and general counsel |
* | 0.00001 | June 11, 2021 | June 10, 2031 |
* | Less than 1% of our issued shares, assuming conversion of all of our preferred shares into ordinary shares. |
Name |
Position |
Ordinary Shares Granted |
Grant Date |
|||||||||
Peter Hui Zhang |
|
Founder, chairman and chief executive officer |
|
* | (1) |
November 25, 2021 | ||||||
* | (1) |
November 30, 2021 | ||||||||||
* | (1) |
December 15, 2021 | ||||||||||
Jennifer Xinzhe Li |
Independent director | * | November 23, 2021 |
* | Less than 1% of our total outstanding shares. |
(1) | Class B ordinary shares. |
C. |
Board Practices |
• | conducting and managing the business of our Company; |
• | representing our Company in contracts and deals; |
• | appointing attorneys for our Company; |
• | select senior management such as managing directors and executive directors; |
• | providing employee benefits and pension; |
• | managing our Company’s finance and bank accounts; |
• | exercising the borrowing powers of our Company and mortgaging the property of our Company; and |
• | exercising any other powers conferred by the shareholders meetings or under our memorandum and articles of association, as amended and restated from time to time. |
• | selecting the independent auditor; |
• | pre-approving auditing and non-auditing services permitted to be performed by the independent auditor; |
• | annually reviewing the independent auditor’s report describing the auditing firm’s internal quality control procedures, any material issues raised by the most recent internal quality control review, or peer review, of the independent auditors and all relationships between the independent auditor and our Company; |
• | setting clear hiring policies for employees and former employees of the independent auditors; |
• | reviewing with the independent auditor any audit problems or difficulties and management’s response; |
• | reviewing and, if material, approving all related party transactions on an ongoing basis; |
• | reviewing and discussing the annual audited financial statements with management and the independent auditor; |
• | reviewing and discussing with management and the independent auditors major issues regarding accounting principles and financial statement presentations; |
• | reviewing reports prepared by management or the independent auditors relating to significant financial reporting issues and judgments; |
• | discussing earnings press releases with management, as well as financial information and earnings guidance provided to analysts and rating agencies; |
• | reviewing with management and the independent auditors the effect of regulatory and accounting initiatives, as well as off-balance sheet structures, on our financial statements; |
• | discussing policies with respect to risk assessment and risk management with management, internal auditors and the independent auditor; |
• | timely reviewing reports from the independent auditor regarding all critical accounting policies and practices to be used by our Company, all alternative treatments of financial information within U.S. GAAP that have been discussed with management and all other material written communications between the independent auditor and management; |
• | establishing procedures for the receipt, retention and treatment of complaints received from our employees regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission by our employees of concerns regarding questionable accounting or auditing matters; |
• | annually reviewing and reassessing the adequacy of our audit committee charter; |
• | such other matters that are specifically delegated to our audit committee by our board of directors from time to time; |
• | meeting separately, periodically, with management, internal auditors and the independent auditor; and |
• | reporting regularly to the full board of directors. |
• | reviewing, evaluating and, if necessary, revising our overall compensation policies; |
• | reviewing and evaluating the performance of our directors and senior officers and determining the compensation of our senior officers; |
• | reviewing and approving our senior officers’ employment agreements with us; |
• | setting performance targets for our senior officers with respect to our incentive—compensation plan and equity-based compensation plans; |
• | administering our equity-based compensation plans in accordance with the terms thereof; and such other matters that are specifically delegated to the remuneration committee by our board of directors from time to time. |
• | selecting and recommending to the board nominees for election by the shareholders or appointment by the board; |
• | reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience and diversity; |
• | making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and |
• | advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken. |
D. |
Employees |
E. |
Share Ownership |
• | each of our directors and executive officers; and |
• | each person known to us to own beneficially 5.0% or more of our ordinary shares. |
Ordinary Shares Beneficially Owned |
||||||||||||||||
Number of Class A ordinary shares |
Number of Class B ordinary shares |
% of total ordinary shares† |
% of voting power†† |
|||||||||||||
Directors and Executive Officers**: |
||||||||||||||||
Peter Hui Zhang (1) |
250,688,631 | 2,259,145,068 | 11.3 | % | 77.6 | % | ||||||||||
Shanshan Guo |
— | — | — | — | ||||||||||||
Guizhen Ma |
* | — | * | * | ||||||||||||
Wenjian Dai |
* | — | * | * | ||||||||||||
Richard Weidong Ji (2) |
971,369,260 | — | 4.4 | % | 1.1 | % | ||||||||||
Jennifer Xinzhe Li |
* | — | * | * | ||||||||||||
Simon Chong Cai |
* | — | * | * | ||||||||||||
Langbo Guo |
* | — | * | * | ||||||||||||
Kai Shen |
* | — | * | * | ||||||||||||
Zhenghong Wang |
* | — | * | * | ||||||||||||
All directors and executive officers as a Group |
1,393,775,590 | 2,259,145,068 | 16.5 | % | 78.9 | % | ||||||||||
Principal Shareholders: |
||||||||||||||||
SVF entities (3) |
4,402,158,648 | — | 19.9 | % | 5.0 | % | ||||||||||
Full Load Logistics (1) |
— | 2,259,145,068 | 10.2 | % | 77.3 | % | ||||||||||
Sequoia Funds (4) |
1,374,341,875 | — | 6.2 | % | 1.6 | % |
* | Less than 1% of our total outstanding shares. |
** | The business addresses for our directors and executive officers are No. 123 Kaifa Avenue, Economic and Technical Development Zone, Guiyang, Guizhou 550009, People’s Republic of China and Wanbo Science and Technology Park, 20 Fengxin Road, Yuhuatai District, Nanjing, Jiangsu 210012, People’s Republic of China. |
† | For each person and group included in this column, percentage ownership is calculated by dividing the number of ordinary shares beneficially owned by such person or group, including shares that such person or group has the right to acquire within 60 days after March 31, 2022, by the sum of (i) the total number of ordinary shares issued and outstanding as of March 31, 2022, and (ii) the number of ordinary shares that such person or group has the right to acquire beneficial ownership within 60 days after March 31, 2022. |
†† | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our Class A and Class B ordinary shares as a single class. In respect of matters requiring a shareholder vote, each Class A ordinary share will be entitled to one vote, and each Class B ordinary share will be entitled to 30 votes. Each Class B ordinary share will be convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares will not be convertible into Class B ordinary shares under any circumstances. |
(1) | The number of ordinary shares beneficially owned is as of March 31, 2022, and consists of (i) 2,259,145,068 Class B ordinary shares held by Full Load Logistics, and (ii) 250,688,631 of the Class A ordinary shares held by Master Quality Group Limited, which Mr. Peter Hui Zhang has dispositive power over due to his right to receive such shares within 60 days after March 31, 2022. The number of Class B ordinary shares held by Full Load Logistics increased from 1,766,332,475 as of June 21, 2021 to 2,259,145,068 as of March 31, 2022 due to (i) the grant of an aggregate number of 261,100,400 Class B ordinary shares to Full Load Logistics in the fourth quarter of 2021 and the first quarter of 2022 under the 2021 Plan, after giving effect to our tax withholding obligations, and (ii) the exchange of 231,712,193 Class A ordinary shares held by Full Load Logistics for 231,712,193 Class B ordinary shares. On the other hands, Mr. Peter Hui Zhang no longer holds the voting power over the shares held by Master Quality Group Limited. Full Load Logistics is a limited liability company incorporated in the British Virgin Islands with |
registered office at Portcullis Chambers, 4th Floor, Ellen Skelton Building, 3076 Sir Francis Drake Highway, Road Town, Tortola, British Virgin Islands, VG1110. Full Load Logistics is wholly owned by Mr. Peter Hui Zhang. |
(2) | The number of ordinary shares beneficially owned is as of March 31, 2022, and consists of (i) 586,444,180 Class A ordinary shares held by All-Stars SP VI Limited, (ii) 68,045,540 Class A ordinary shares held by All-Stars SP VIII Limited, (iii) 234,187,020 Class A ordinary shares held by All-Stars PESP II Limited, (iv) 34,821,060 Class A ordinary shares held by All-Stars PEIISP IV Limited and (v) 47,871,460 Class A ordinary shares held by PESP VIII Limited. |
(3) | The number of ordinary shares beneficially owned as of March 31, 2022 consists of 4,402,158,648 Class A ordinary shares, including (i) 3,940,559,749 Class A ordinary shares held by SVF Truck (Singapore) Pte. Ltd. (“SVF Truck”) as record holder, and 461,598,899 Class A ordinary shares held by SVF II Cortex Subco (DE) LLC (“SVF II Cortex”) as record holder. |
(4) | The number of ordinary shares beneficially owned is as of December 31, 2021, as reported in the Amendment No.1 to the Schedule 13G filed jointly by the Sequoia funds and their control persons on February 25, 2022, and consists of 1,374,341,875 Class A ordinary shares, including (i) 261,158,080 Class A ordinary shares held by Sequoia Capital Global Growth Fund III—Endurance Partners, L.P., an exempted limited partnership formed under the laws of the Cayman Islands, (ii) 383,031,855 Class A |
ordinary shares in the form of 19,151,592 ADSs held by Sequoia Capital Global Growth Fund III—2020-B, L.P., an exempted limited partnership formed under the laws of the Cayman Islands, (iii) 566,842,620 Class A ordinary shares held by SCC Venture V Holdco I, Ltd., an exempted company with limited liability incorporated under the laws of the Cayman Islands, and (iv) 163,309,320 Class A ordinary shares held by SCC Growth IV 2018-H, L.P., an exempted limited partnership formed under the laws of the Cayman Islands. |
ITEM 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. |
Major Shareholders |
B. |
Related Party Transactions |
C. |
Interests of Experts and Counsel |
A. |
Consolidated Statements and Other Financial Information |
B. |
Significant Changes |
ITEM 9. |
THE OFFER AND LISTING |
A. |
Offer and Listing Details |
B. |
Plan of Distribution |
C. |
Markets |
D. |
Selling Shareholders |
E. |
Dilution |
F. |
Expenses of the Issue |
ITEM 10. |
ADDITIONAL INFORMATION |
A. |
Share Capital |
B. |
Memorandum and Articles of Association |
C. |
Material Contracts |
D. |
Exchange Controls |
E. |
Taxation |
• | an individual citizen or resident of the United States; |
• | a corporation (or other entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; |
• | an estate the income of which is subject to United States federal income taxation regardless of its source; or |
• | a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person. |
• | a dealer or broker in securities or currencies; |
• | a financial institution; |
• | a regulated investment company; |
• | a real estate investment trust; |
• | an insurance company; |
• | a tax-exempt organization; |
• | a person holding our ADSs or Class A ordinary shares as part of a hedging, integrated or conversion transaction, a constructive sale or a straddle; |
• | a trader in securities that has elected the mark-to-market |
• | a person liable for alternative minimum tax; |
• | a person who owns or is deemed to own 10% or more of our stock by vote or value; |
• | a partnership or other pass-through entity for United States federal income tax purposes; |
• | a person required to accelerate the recognition of any item of gross income with respect to our ADSs or Class A ordinary shares as a result of such income being recognized on an applicable financial statement; or |
• | a person whose “functional currency” is not the United States dollar. |
• | at least 75% of our gross income is passive income, or |
• | at least 50% of the value (generally determined based on a quarterly average) of our assets is attributable to assets that produce or are held for the production of passive income. |
• | the excess distribution or gain will be allocated ratably over your holding period for the ADSs or Class A ordinary shares, |
• | the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and |
• | the amount allocated to each other year will be subject to tax at the highest tax rate in effect for individuals or corporations, as applicable, for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year. |
F. |
Dividends and Paying Agents |
G. |
Statement by Experts |
H. |
Documents on Display |
I. |
Subsidiary Information |
A. |
Debt Securities |
B. |
Warrants and Rights |
C. |
Other Securities |
D. |
American Depositary Shares |
Service |
Fees | |
To any person to which ADSs are issued or to any person to which a distribution is made in respect of ADS distributions pursuant to stock dividends or other free distributions of stock, bonus distributions, stock splits or other distributions (except where converted to cash) | Up to US$0.05 per ADS issued | |
Cancellation of ADSs, including the case of termination of the deposit agreement | Up to US$0.05 per ADS cancelled | |
Distribution of cash dividends | Up to US$0.05 per ADS held | |
Distribution of cash entitlements (other than cash dividends) and/or cash proceeds from the sale of rights, securities and other entitlements | Up to US$0.05 per ADS held | |
Distribution of ADSs pursuant to exercise of rights. | Up to US$0.05 per ADS held | |
Distribution of securities other than ADSs or rights to purchase additional ADSs | Up to US$0.05 per ADS held | |
Depositary services | Up to US$0.05 per ADS held on the applicable record date(s) established by the depositary bank |
• | Fees for the transfer and registration of ordinary shares charged by the registrar and transfer agent for the ordinary shares in the Cayman Islands (i.e., upon deposit and withdrawal of ordinary shares). |
• | Expenses incurred for converting foreign currency into U.S. dollars. |
• | Expenses for cable, telex and fax transmissions and for delivery of securities. |
• | Taxes and duties upon the transfer of securities, including any applicable stamp duties, any stock transfer charges or withholding taxes (i.e., when ordinary shares are deposited or withdrawn from deposit). |
• | Fees and expenses incurred in connection with the delivery or servicing of ordinary shares on deposit. |
• | Fees and expenses incurred in connection with complying with exchange control regulations and other regulatory requirements applicable to ordinary shares, deposited securities, ADSs and ADRs. |
• | Any applicable fees and penalties thereon. |
For the Year Ended December 31, |
||||||||
2020 |
2021 |
|||||||
(In thousands of US dollars) |
||||||||
Audit Fees (1) |
1,400 | 2,000 | ||||||
Audit-Related Fees (2) |
100 | 126 | ||||||
|
|
|
|
|||||
Total |
1,500 |
2,126 |
||||||
|
|
|
|
(1) | “Audit Fees” represents the aggregate fees billed for each of the fiscal years listed for professional services rendered by our principal auditors for the audit of our annual financial statements and assistance with and review of documents filed with the SEC and other statutory and regulatory filings. The amount includes audit fees relating to our initial public offering. |
(2) | This category includes the aggregate fees billed in each of the fiscal years listed for assurance and related services by our independent registered public accounting firm that are reasonably related to the performance of the audit or review of our consolidated financial statements and are not reported under “Audit fees”. |
Exhibit Number |
Description of Exhibit | |
1.1 |
||
2.1 |
||
2.2 |
Exhibit Number |
Description of Exhibit | |
2.3 |
||
2.4* |
||
4.1 |
||
4.2 |
||
4.3* |
||
4.4* |
||
4.5* |
||
4.6* |
||
4.7* |
||
4.8* |
||
4.9* |
||
4.10* |
||
4.11* |
||
4.12* |
||
4.13* |
||
4.14 |
||
4.15 |
Exhibit Number |
Description of Exhibit | |
4.16* |
||
4.17 |
||
4.18 |
||
4.19* |
||
4.20 |
||
4.21 |
||
4.22* |
||
4.23 |
||
8.1* |
||
11.1 |
||
12.1* |
||
12.2* |
||
13.1** |
||
13.2** |
||
15.1* |
||
15.2* |
||
15.3* |
||
101.INS* |
Inline XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
Exhibit Number |
Description of Exhibit | |
101.SCH* |
Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL* |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* |
Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* |
Inline XBRL Taxonomy Extension Labels Linkbase Document. | |
101.PRE* |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104 |
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* |
Filed herewith. |
** |
Furnished herewith |
FULL TRUCK ALLIANCE CO. LTD. | ||||||
By: |
/s/ Peter Hui Zhang | |||||
Name: Peter Hui Zhang | ||||||
Title: Chairman and Chief Executive Officer | ||||||
Date: April 25, 2022 |
Page |
||||
F-2 |
||||
F-3 |
||||
F-6 |
||||
F-7 |
||||
F-9 |
||||
F-12 |
||||
F-57 |
As of December 31, |
||||||||||||||||
Note |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
USD |
||||||||||||||
(Note 2) |
||||||||||||||||
ASSETS |
||||||||||||||||
Current assets: |
||||||||||||||||
Cash and cash equivalents |
||||||||||||||||
Restricted cash—current (including RMB |
||||||||||||||||
Short-term investments |
6 |
|||||||||||||||
Accounts receivable, net (net of allowance for doubtful accounts of RMB |
7 |
|||||||||||||||
Amounts due from related parties |
1 9 |
|||||||||||||||
Loans receivable, net (including RMB |
8 |
|||||||||||||||
Prepayments and other current assets (including RMB |
9 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
Total current assets |
||||||||||||||||
Restricted cash—non-current |
||||||||||||||||
Property and equipment, net |
10 |
|||||||||||||||
Investments in equity investees |
1 1 |
|||||||||||||||
Intangible assets, net |
1 2 |
|||||||||||||||
Goodwill |
2 |
|||||||||||||||
Deferred tax assets |
1 8 |
|||||||||||||||
Other non-current assets |
1 3 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
Total non-current assets |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL ASSETS |
||||||||||||||||
|
|
|
|
|
|
As of December 31, |
||||||||||||||||
Note |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
USD |
||||||||||||||
(Note 2) |
||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY |
||||||||||||||||
Current liabilities |
||||||||||||||||
Short-term loans (including |
1 4 |
— | ||||||||||||||
Accounts payable (including RMB |
||||||||||||||||
Amounts due to related parties |
1 9 |
|||||||||||||||
Payable to investors of the consolidated trusts (including RMB |
||||||||||||||||
Prepaid for freight listing fees and other service fees (including RMB |
2.18 | |||||||||||||||
Income tax payable (including RMB |
||||||||||||||||
Other tax payable (including RMB |
||||||||||||||||
Accrued expenses and other current liabilities (including RMB |
15 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
Total current liabilities. |
||||||||||||||||
Deferred tax liabilities (including |
1 8 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
Total non-current liabilities |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL LIABILITIES |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Commitments and contingencies (Note 2 5 ) |
As of December 31, |
||||||||||||||||
Note |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
USD |
||||||||||||||
(Note 2) |
||||||||||||||||
MEZZANINE EQUITY |
||||||||||||||||
Convertible redeemable preferred shares (US$ |
1 6 |
|||||||||||||||
Subscription receivables |
1 6 |
( |
) | |||||||||||||
(DEFICIT) EQUITY |
||||||||||||||||
Class A ordinary shares (US$ |
1 7 |
|||||||||||||||
Class B ordinary shares (US$ |
1 7 |
|||||||||||||||
Additional paid-in capital |
||||||||||||||||
Accumulated other comprehensive income |
||||||||||||||||
Subscription receivables |
— |
( |
) | ( |
) | |||||||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL FULL TRUCK ALLIANCE CO. LTD. (DEFICIT) EQUITY |
( |
) |
||||||||||||||
Non-controlling interests |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL (DEFICIT) EQUITY |
( |
) |
||||||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND (DEFICIT) EQUITY |
||||||||||||||||
|
|
|
|
|
|
Years ended December 31, |
||||||||||||||||||||
Note |
2019 |
2020 |
2021 |
|||||||||||||||||
RMB |
RMB |
USD |
||||||||||||||||||
(Note 2) |
||||||||||||||||||||
Net Revenues |
2 | |||||||||||||||||||
Operating expenses |
||||||||||||||||||||
Cost of revenues (including VAT net of refund of VAT, of RMB |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Sales and marketing expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Research and development expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Provision for loans receivable |
8 |
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total operating expenses |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Other operating income |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Loss from operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Other (expense) income |
||||||||||||||||||||
Interest income |
||||||||||||||||||||
Interest expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Foreign exchange loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Investment income |
||||||||||||||||||||
Unrealized gains from fair value changes of trading securities and derivative assets |
||||||||||||||||||||
Other (expenses) income, net |
( |
) | ( |
) | ||||||||||||||||
Impairment loss |
11 |
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Share of loss in equity method investees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total other (loss) income |
( |
) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss before income tax |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Income tax benefit (expense) |
1 8 |
( |
) | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Net income from discontinued operations, net of tax |
3 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Less: net loss attributable to non-controlling interests |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss attributable to Full Truck Alliance Co. Ltd. |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Deemed dividend |
1 6 |
( |
) | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss attributable to ordinary shareholders |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net (loss) earning per ordinary share: |
||||||||||||||||||||
Continuing operations |
2 1 |
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Discontinued operations |
21 |
|||||||||||||||||||
Basic and diluted—ordinary shares |
21 |
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Weighted average shares used in calculating net loss per ordinary share: |
||||||||||||||||||||
Basic |
21 |
|||||||||||||||||||
Diluted |
21 |
|||||||||||||||||||
Net loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||||
Foreign currency translation adjustments, net of tax of nil |
( |
) | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Less: comprehensive loss attributable to non-controlling interests |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Comprehensive loss attributable to Full Truck Alliance Co. Ltd. |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Deemed dividend |
( |
) | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Comprehensive loss attributable to ordinary shareholders |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
Class A Ordinary shares |
Class B Ordinary shares |
Additional Paid in Capital |
Accumulated deficit |
Accumulated other comprehensive income |
Total |
Non— controlling interests |
Total deficit |
|||||||||||||||||||||||||||||||||
Numbers of shares |
Amount |
Numbers of shares |
Amount |
|||||||||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Ordinary shares issued for vested restricted shares |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Exercise of stock options granted to employees |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
( |
) | ( |
) | — | — | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of December 31, 2019 |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Ordinary shares issued for vested restricted shares |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Exercise of stock options granted to employees |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Accretion and modification of convertible redeemable preferred shares |
— | — | — | — | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
Modifications to share options |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Ordinary shares reclassification |
( |
) | ( |
) | — | — | — | — | — | |||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
( |
) | ( |
) | — | — | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of December 31, 2020 |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Ordinary shares |
Class B Ordinary shares |
Additional Paid in Capital |
Accumulated deficit |
Subscription Receivables |
Accumulated OCI |
Total |
Non— controlling interests |
Total (deficit) equity |
||||||||||||||||||||||||||||||||||||
Numbers of shares |
Amount |
Numbers of shares |
Amount |
|||||||||||||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Capital contribution from non-controlling interests shareholders |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||
Exercise of stock options granted to employees |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Accretion of convertible redeemable preferred shares |
— | — | — | — | ( |
) | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||
Modifications to share options |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
( |
) | ( |
) | ( |
) |
( |
) |
( |
) | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Repurchase of convertible redeemable preferred shares |
— | — | — | — | ( |
) | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||
Issuance of ordinary shares for initial public offering (“USIPO”), net of issuance RMB |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Ordinary shares reclassification |
( |
) | ( |
) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Conversion of convertible redeemable preferred shares to ordinary shares upon USIPO |
— | — | ( |
) | — | — | ||||||||||||||||||||||||||||||||||||||
Decrease of non-controlling interest from disposal of a subsidiary |
— | — | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Retirement of o rdinary shares |
( |
) | ( |
) |
— | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balance as of December 31, 2021 |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
USD |
|||||||||||||
(Note 2) |
||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Adjustments to reconcile net loss to net cash used in operating activities |
||||||||||||||||
Depreciation and amortization |
||||||||||||||||
Share-based compensation |
||||||||||||||||
Modification of options |
||||||||||||||||
Allowance for doubtful accounts |
||||||||||||||||
Provision for loans receivable |
||||||||||||||||
(Gain) Loss from disposal of property and equipment |
( |
) | ||||||||||||||
Net loss from disposal of investment in equity investees |
||||||||||||||||
Investment income from forward contract |
( |
) | ( |
) | ||||||||||||
Share of loss in equity method investees |
||||||||||||||||
Unrealized gains from fair value changes of trading securities and derivative |
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Impairment loss and others |
||||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Accounts receivable |
( |
) | ( |
) | ||||||||||||
Amounts due from related parties |
( |
) | ( |
) | ||||||||||||
Loans receivable |
( |
) | ( |
) | ( |
) | ||||||||||
Prepayments and other current assets |
( |
) | ( |
) | ( |
) | ||||||||||
Deferred tax assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Accounts payable |
( |
) | ||||||||||||||
Prepaid for freight listing fees and other service fees |
( |
) | ||||||||||||||
Income tax payable |
||||||||||||||||
Other tax payable |
( |
) | ||||||||||||||
Amounts due to related parties |
( |
) | ( |
) | ||||||||||||
Accrued expenses and other current liabilities |
( |
) | ||||||||||||||
Deferred tax liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash (used in) provided by operating activities |
( |
) |
( |
) |
( |
) | ||||||||||
Cash flows from investing activities: |
||||||||||||||||
Purchases of short-term investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Maturity of short-term investments |
||||||||||||||||
Maturity of forward contracts |
||||||||||||||||
Payments for investment in equity investees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Acquisition of subsidiaries, net of cash acquired |
( |
) | ( |
) | ( |
) | ||||||||||
Prepayments for long-term investments |
( |
) | ||||||||||||||
Net cash out in relation to disposal of a subsidiary |
( |
) | ( |
) | ||||||||||||
Return of prepayments for equity investments |
||||||||||||||||
Return from dissolution of an equity investmen t |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to related parties |
( |
) | ( |
) | ||||||||||||
Repayments of loans from related parties |
||||||||||||||||
Loans to a third party company |
( |
) | ||||||||||||||
Repayments of loans from a third party company |
||||||||||||||||
Purchases of property and equipment and intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds from disposal of property and equipment and intangible assets |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash used in investing activities |
( |
) |
( |
) |
( |
) |
( |
) |
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
USD |
|||||||||||||
(Note 2) |
||||||||||||||||
Cash flows from financing activities: |
||||||||||||||||
Proceeds from short-term loans |
||||||||||||||||
Repayments of short-term loans |
( |
) | ( |
) | ||||||||||||
Cash received from investors of the consolidated trusts |
||||||||||||||||
Cash paid to investors of the consolidated trusts |
( |
) | ( |
) | ( |
) | ||||||||||
Proceeds from exercise of share options |
||||||||||||||||
Cash paid for repurchase of ordinary shares and convertible redeemable preferred shares |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Taxes paid for employees through repurchase of ordinary share s |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Proceeds from initial public offering, net of issuance cost paid of RMB |
||||||||||||||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance cost paid of |
||||||||||||||||
Capital received from non-controlling interests |
||||||||||||||||
Loans to a shareholder pledged by convertible redeemable preferred shares |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by financing activities |
||||||||||||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
( |
) |
( |
) |
( |
) | ||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash |
( |
) |
( |
) |
( |
) | ||||||||||
Cash and cash equivalents and restricted cash, beginning of the year |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents and restricted cash, end of the year |
Cash and cash equivalents |
||||||||||||||||
Restricted cash, current |
||||||||||||||||
Restricted cash, non-current |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cash, cash equivalents, and restricted cash |
||||||||||||||||
Supplemental disclosure of cash flow information: |
||||||||||||||||
Cash paid for interest (excluding interest paid to investors of consolidated trusts) |
||||||||||||||||
Income taxes paid |
||||||||||||||||
Supplemental disclosure of non-cash investing and financing activities: |
||||||||||||||||
Acquisition of intangible assets and property and equipment through prepayments made in prior year |
— | |||||||||||||||
Investment in equity investees through prepayments made in prior yea r |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Waiver of payable to an equity investe e |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Repurchase of ordinary shares through offsetting loans or interests receivable |
||||||||||||||||
Consideration payable for repurchase of ordinary shares and convertible redeemable preferred shares |
||||||||||||||||
Consideration payable for repurchase of share options |
— | — | — | |||||||||||||
Consideration payable for purchasing equity investments |
— | — | — | |||||||||||||
Consideration payable for acquisitio n |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Tax payable for employees through repurchase of ordinary share s |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
1. |
ORGANIZATION AND NATURE OF OPERATIONS |
Name of Company |
Place of incorporation |
Date of incorporation |
Percentage of direct or indirect economic ownership |
Principal activities | ||||||||||
Subsidiaries |
||||||||||||||
% | ||||||||||||||
% | ||||||||||||||
C | % | |||||||||||||
C | % | |||||||||||||
VIEs |
||||||||||||||
C | % | |||||||||||||
C | % | |||||||||||||
C |
% |
|||||||||||||
VIEs’ subsidiaries |
||||||||||||||
C |
% |
|||||||||||||
C |
% |
|||||||||||||
C |
% |
|||||||||||||
C | % | |||||||||||||
C |
% |
|||||||||||||
C | % |
1. |
ORGANIZATION AND NATURE OF OPERATIONS - continued |
Name of Company |
Place of incorporation |
Date of incorporation |
Percentage of direct or indirect economic ownership |
Principal activities | ||||||
C |
% |
|||||||||
C |
% |
|||||||||
C |
% |
2. |
PRINCIPAL ACCOUNTING POLICIES |
2.1 |
Basis of presentation |
2.2 |
Basis of consolidation |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.2 |
Basis of consolidation - continued |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.2 |
Basis of consolidation - continued |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.2 |
Basis of consolidation - continued |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
ASSETS |
||||||||
Cash and cash equivalents |
||||||||
Restricted cash—current |
||||||||
Short-term investments |
||||||||
Accounts receivable, net of allowance for doubtful accounts |
||||||||
Amounts due from related parties |
||||||||
Loans receivable, net |
||||||||
Prepayments and other current assets |
||||||||
Restricted cash—non-current |
||||||||
Property and equipment, net |
||||||||
Investments in equity investees |
||||||||
Intangible assets, net |
||||||||
Goodwill |
||||||||
Deferred tax assets |
||||||||
Other non-current assets |
||||||||
|
|
|
|
|||||
TOTAL ASSETS |
||||||||
|
|
|
|
|||||
LIABILITIES |
||||||||
Short-term loans |
— | |||||||
Accounts payable |
||||||||
Payable to investors of the consolidated trusts |
||||||||
Prepaid freight listing fees and other service fees |
||||||||
Income tax payable |
||||||||
Other tax payable |
||||||||
Accrued expenses and other current liabilities |
||||||||
Deferred tax liabilities |
— | |||||||
|
|
|
|
|||||
TOTAL LIABILITIES |
||||||||
|
|
|
|
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.2 |
Basis of consolidation - continued |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Net Revenues |
||||||||||||
Net (loss) income |
( |
) | ( |
) | ||||||||
Net cash (used in) provided by operating activities |
( |
) | ( |
) | ||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ||||||
Net cash provided by (used in) financing activities |
( |
) |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.2 |
Basis of consolidation - continued |
2.3 |
Consolidated Trusts |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.3 |
Consolidated Trusts - continued |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
ASSETS |
||||||||
Restricted cash |
||||||||
Loans receivable, net |
||||||||
Prepaid expenses and other assets |
||||||||
|
|
|
|
|||||
Total Assets |
||||||||
|
|
|
|
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
LIABILITIES |
||||||||
Payable to investors of the consolidated trusts |
||||||||
Other tax payable |
||||||||
|
|
|
|
|||||
Total Liabilities |
||||||||
|
|
|
|
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Net revenues |
||||||||||||
Net income |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Net cash (used in) provided by operating activities |
( |
) | ( |
) | ||||||||
Net cash provided by (used in) financing activities |
( |
) | ( |
) |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.3 |
Consolidated Trusts - continued |
2.4 |
Use of estimates |
2.5 |
Functional currency and foreign currency translation |
2.6 |
Cash and cash equivalents |
2.7 |
Restricted cash |
2.8 |
Short-term investments |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.8 |
Short-term investments - continued |
2.9 |
Accounts receivable, net |
2.10 |
Loans receivable, net |
2.11 |
Property and equipment, net |
Category |
Estimated useful lives | |
Furniture, fixtures and equipment |
||
Motor vehicles |
||
Leasehold improvement |
2.12 |
Business combinations |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.12 |
Business combinations - continued |
2.13 |
Intangible assets, net |
The identifiable intangible assets |
Amortization Years | |
Software |
||
Trademarks |
||
Platform |
||
Customer relationship |
||
Non-compete commitment |
2.14 |
Goodwill |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.14 |
Goodwill - continued |
2.15 |
Investments in equity investees |
2.16 |
Other non-current assets |
2.17 |
Fair value measurement |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.17 |
Fair value measurement - continued |
2.18 |
Revenue recognition |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.18 |
Revenue recognition - continued |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.18 |
Revenue recognition - continued |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.18 |
Revenue recognition - continued |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Freight matching services(1) |
||||||||||||
Freight brokerage-satisfied at a point of time |
||||||||||||
Freight listings-satisfied over time |
||||||||||||
Transaction commission-satisfied at a point of time |
||||||||||||
Value-added services(1) |
||||||||||||
Credit solutions-satisfied over time |
||||||||||||
Other value-added services-satisfied at a point of time |
||||||||||||
Total net revenues |
||||||||||||
(1) | RMB million, RMB |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.18 |
Revenue recognition - continued |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Contract balances |
||||||||
Freight listings |
||||||||
Others |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
2.19 |
Cost of revenues |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Gross VAT |
||||||||||||
Less: VAT refund |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
VAT, net |
||||||||||||
|
|
|
|
|
|
2.20 |
Sales and marketing expenses |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.21 |
Research and development expenses |
2.22 |
General and Administrative expenses |
2.23 |
Operating leases |
2.24 |
Share-based compensation |
2.25 |
Loss per share |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.25 |
Loss per share - continued |
2.26 |
Government grants |
2.27 |
Taxation |
2.28 |
Segment reporting |
2. |
PRINCIPAL ACCOUNTING POLICIES - continued |
2.28 |
Segment reporting - continued |
2.29 |
Comprehensive loss |
2.30 |
Recent accounting pronouncements |
2.31 |
Convenience translation |
3. |
DISCONTINUED OPERATIONS |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Gross revenues |
— | |||||||||||
Cost of revenues and other operating expenses |
( |
) | ( |
) | — | |||||||
Net income from discontinued operations, net of tax of |
— |
|||||||||||
4. |
FAIR VALUE MEASUREMENTS |
As of December 31, 2020 |
Fair Value Measurement at Reporting Date Using |
|||||||||||||||
Description |
Fair Value as of December 31 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level2) |
Significant Unobservable Inputs (Level3) |
||||||||||||
RMB |
RMB |
RMB |
RMB |
|||||||||||||
Exchange traded fund products |
||||||||||||||||
Wealth management products |
||||||||||||||||
Foreign currency forward contracts |
As of December 31, 2021 |
Fair Value Measurement at Reporting Date Using |
|||||||||||||||
Description |
Fair Value as of December 31 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level2) |
Significant Unobservable Inputs (Level3) |
||||||||||||
RMB |
RMB |
RMB |
RMB |
|||||||||||||
Exchange traded fund products |
||||||||||||||||
Wealth management products |
||||||||||||||||
Foreign currency forward contracts |
4. |
FAIR VALUE MEASUREMENTS - continued |
5. |
BUSINESS COMBINATION |
5. |
BUSINESS COMBINATION - continued |
Amount |
||||
RMB |
||||
Net assets acquired (including cash and cash equivalents of RMB |
||||
Intangible assets: |
||||
Trademark with an estimated useful life of |
||||
Platform with an estimated useful life of |
||||
Goodwill |
||||
Deferred tax liabilities |
( |
) | ||
Total |
||||
Amount |
||||
RMB |
||||
Total purchase price is comprised of: |
||||
Additional cash consideration paid in 2020 |
||||
Fair value of equity interest in preferred shares previously acquired |
||||
5. |
BUSINESS COMBINATION - continued |
Amount |
||||
RMB |
||||
Net assets acquired (including cash and cash equivalents of RMB |
||||
Intangible assets: |
||||
Customer relationship with an estimated useful life of |
||||
Software with an estimated useful life of |
||||
Goodwill |
||||
Deferred tax liabilities |
( |
) | ||
Total |
||||
Amount |
||||
RMB |
||||
Total purchase price is comprised of: |
||||
Cash consideration paid in 2021 |
||||
Fair value of equity interest in preferred shares previously acquired |
||||
5. |
BUSINESS COMBINATION - continued |
Amount |
||||
RMB |
||||
Net assets acquired (including cash and cash equivalents of RMB |
||||
Intangible assets: |
||||
Trademark with an estimated useful life of |
||||
Non-compete commitment with an estimated useful life of |
||||
Goodwill |
||||
Deferred tax liabilities |
( |
) | ||
Total |
||||
Amount |
||||
RMB |
||||
Total purchase price is comprised of: |
||||
Cash consideration paid in 2021 |
||||
Consideration payable |
||||
6. |
SHORT-TERM INVESTMENTS |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Time deposits |
||||||||
Trading securities |
||||||||
Total Short-term investments |
||||||||
7 . |
ACCOUNTS RECEIVABLE, NET |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Trade Receivable |
||||||||
Less: bad debt provision |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total Accounts receivable, net |
||||||||
|
|
|
|
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance at beginning of year |
( |
) | ( |
) | ( |
) | ||||||
Provisions for doubtful accounts |
( |
) | ( |
) | ||||||||
Write-off |
||||||||||||
|
|
|
|
|
|
|||||||
Balance at end of year |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
8 . |
LOANS RECEIVABLE, NET |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Loans receivable |
||||||||
Less: allowance for loan losses |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Loans receivable, net |
||||||||
|
|
|
|
0-30 days past due |
31-60 days past due |
Over 60 days past due |
Total amount past due |
Current |
Total loans |
|||||||||||||||||||
December 31, 2020 (RMB) |
||||||||||||||||||||||||
December 31, 2021 (RMB) |
8. |
LOANS RECEIVABLE, NET - continued |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance at beginning of year |
( |
) | ( |
) | ( |
) | ||||||
Provisions for doubtful accounts |
( |
) | ( |
) | ( |
) | ||||||
Write-off |
||||||||||||
|
|
|
|
|
|
|||||||
Balance at end of year |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
9. |
PREPAYMENTS AND OTHER CURRENT ASSETS |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
VAT refund receivable (1) |
||||||||
Funds receivable from third party payment channels |
||||||||
Advance to suppliers |
||||||||
Interest receivable |
||||||||
Deposits mainly for value added services |
||||||||
VAT recoverable and prepaid income taxes |
— | |||||||
Others |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
(1) |
VAT refund receivable represents the VAT refund from local governments to incentivize the freight brokerage service. |
10 . |
PROPERTY AND EQUIPMENT, NET |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Furniture, fixtures and equipment |
||||||||
Motor vehicles |
||||||||
Leasehold improvement |
||||||||
Construction in progress |
||||||||
Total cost |
||||||||
Less: Accumulated depreciation |
( |
) | ( |
) | ||||
Property and equipment, net |
||||||||
11 . |
INVESTMENTS IN EQUITY INVESTEES |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Equity Investments without Readily Determinable Fair Value |
||||||||
Plus Corp (“Plus”) (1) |
||||||||
Jiayibingding (Beijing) E-commerce Limited (“JYBD”)(2) |
||||||||
Others (3) |
||||||||
Equity Method Investments |
||||||||
Guizhou Fubao Digital Venture Capital Partnership (“Fubao Fund”) (4) |
||||||||
Others (5) |
||||||||
Total Investment |
||||||||
(1) | Plus is a technology company devoted to autonomous vehicle development. In 2018, the Group acquired period, with an aggregate cash consideration of RMB equity interest of Plus as of then. In November 2020, the Group’s shareholding was diluted to as a result of the financing activities of Plus. According to the amended Article of the Associate of Plus, certain preferred shares held by the Group are entitled to voting rights as of December 31, 2020. During the year ended December 31, 2021, after a series of financing transactions of Plus, including the Group’s exercise of its warrant acquired in 2018 with a cash consideration of RM B preferred shares with a cash consideration of RMB voting rights. However, the Group has no control over Plus as it has no control over the board of directors that makes all significant decisions in relation to the operating and financing activities of Plus. As the preferred shares are not in substance common stock due to the liquidation preference and other preferential rights and have no readily determinable fair value, the Group has accounted for its investment in Plus as an equity investment without readily determinable fair value. |
11. |
INVESTMENTS IN EQUITY INVESTEES - continued |
(2) | JYBD is an E-commerce platform for selling products related to vehicle maintenance and modification. In June 2018, the Group acquired preferred shares of JYBD with a cash consideration of RMBmillion in JYBD’s preferred shares. As of December 31, 2020, the preferred shares held by the Group represented further subscribed preferred shares of JYBDamounting RMBto |
(3) | During the year ended December 31, 2021, the Group recorded a full impairment loss of RMB an equity investment without readily determinable fair value as the shareholding was not in substance common stock. |
(4) |
Fubao fund is a private equity fund incorporated in Guizhou, the PRC. The Group, as a limited partner, acquired |
(5) |
The Group also held an equity method investment in a holding company incorporated in Cayman Island, which invested in a logistic company in Brazil. In the fourth quarter of 2021, the Group recorded a full impairment loss of RMB |
1 2 . |
INTANGIBLE ASSETS, NET |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Software |
||||||||
Trademarks |
||||||||
Platform |
||||||||
Customer relationship |
||||||||
Non-compete commitment |
||||||||
Less: Accumulated amortization |
( |
) | ( |
) | ||||
Intangible assets, net |
||||||||
12. |
INTANGIBLE ASSETS, NET - continued |
Future amortization expenses |
||||
RMB |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
Total |
||||
13. |
OTHER NON-CURRENT ASSETS |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Prepayment for a new equity method investment |
||||||||
Prepayment for an office building |
||||||||
Deposits |
||||||||
Prepayment for furniture, fixtures and equipment |
||||||||
Total |
14. |
SHORT-TERM LOANS |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Short-term borrowing—banks |
— |
|||||||
Total |
— |
|||||||
15. |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Advance from shippers and truckers(1) |
||||||||
Payables for repurchase of ordinary shares and share options from employees |
— | |||||||
Salaries and welfare payables |
||||||||
Consideration payable for acquisition of TYT |
— | |||||||
Deposit from truckers for value added service |
||||||||
Accrued rental and other service fees |
||||||||
Others |
||||||||
Total |
||||||||
(1) |
Representing the refundable prepayments from shippers and truckers for future shipping arrangements under freight brokerage services and value-added services. |
16. |
MEZZANINE EQUITY |
Series |
Average Issue Price per Share |
Issuance Date |
Shares Issued at issuance date |
Issued and Outstanding shares before conversion upon |
Proceeds from Issuance, net of issuance cost |
Accretion of interest |
Modification of Mezzanine equity |
Repurchase of preferred shares |
Conversion of preferred shares Amount |
Carrying Amount |
||||||||||||||||||||||||||||||
USD |
USD |
USD |
USD |
USD |
USD |
USD |
||||||||||||||||||||||||||||||||||
A-1 |
/05/2015 | — | — | ( |
) | ( |
) | — | ||||||||||||||||||||||||||||||||
A-2 |
/08/2015 | — | — | ( |
) | ( |
) | — | ||||||||||||||||||||||||||||||||
A-3 |
/07/2016 | — | — | ( |
) | ( |
) | — | ||||||||||||||||||||||||||||||||
A-4 |
/04/2017 | — | ( |
) | ( |
) | — | |||||||||||||||||||||||||||||||||
A-5 |
/03/2014 | — | ( |
) | ( |
) | — | |||||||||||||||||||||||||||||||||
A-5 |
/05/2018 | — | — | — | ( |
) | — | |||||||||||||||||||||||||||||||||
A-6 |
/06/2014 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-7 |
/01/2015 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-8 |
/07/2015 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-9 |
/ 07/2016 |
— |
( |
) |
( |
) |
— |
|||||||||||||||||||||||||||||||||
A-10 |
/12/2016 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-10 |
/12/2017 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-11 |
/03/2017 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-12 |
/09/2017 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-13 |
/10/2018 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-14 |
/01/2018 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-15 |
/05/2018 | — | ( |
) | — | |||||||||||||||||||||||||||||||||||
A-16 |
/11/2020 | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||
A-16 |
/06/2021 | — | — | — | ( |
) | — | |||||||||||||||||||||||||||||||||
Total |
( |
) |
( |
) |
— |
16. |
MEZZANINE EQUITY - continued |
17. |
ORDINARY SHARES |
17. |
ORDINARY SHARES - continued |
18. |
INCOME TAXES |
18. |
INCOME TAXES - continued |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Net loss (income) from PRC operations |
( |
) | ( |
) | ||||||||
Net loss from non-PRC operations |
||||||||||||
Total net loss before tax |
||||||||||||
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Current tax expenses |
||||||||||||
Deferred tax benefits |
( |
) | ( |
) | ( |
) | ||||||
Income tax (benefit) expense |
( |
) |
||||||||||
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
PRC statutory tax rate |
||||||||||||
Effect of different tax rates of subsidiaries operating in other jurisdictions |
||||||||||||
Preferential tax rates and local tax exemptions |
( |
) |
( |
) |
( |
) | ||||||
Expenses/losses not deductible for tax purposes |
( |
) |
( |
) |
( |
) | ||||||
Research and development expenses super deduction |
||||||||||||
Compensation cost in relation to ordinary shares and options |
( |
) |
( |
) |
( |
) | ||||||
True up |
( |
) |
( |
) |
( |
) | ||||||
Effect of change of valuation allowance |
( |
) |
( |
) |
( |
) | ||||||
Effective tax rate |
( |
) |
( |
) | ||||||||
18. |
INCOME TAXES - continued |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Deferred tax assets |
||||||||
—Advertising and business promotion expenditure |
||||||||
—Impairment loss |
||||||||
—Allowance for doubtful accounts |
||||||||
—Loan loss provision |
||||||||
—Accrued expense |
||||||||
—Net operating loss carry forwards |
||||||||
—Others |
||||||||
Less: valuation allowance |
( |
) | ( |
) | ||||
Net deferred tax assets |
||||||||
Deferred tax liabilities |
||||||||
—Identifiable intangible assets from business combination |
||||||||
Total deferred tax liabilities |
||||||||
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance at beginning of the year |
||||||||||||
Addition |
||||||||||||
Total |
||||||||||||
19. |
RELATED PARTY TRANSACTIONS |
Related Party |
Relationship with the Group | |
JYBD |
||
Euclidean |
||
Sigma |
||
Plus |
||
Hangzhou Yinghuo Internet Technology Limited (Yinghuo) |
||
Horgos Yinghuo Management Consulting Co., Ltd. (Horgos) |
||
Truck Champion Limited (Champion) |
||
Dai WJ Holding limited (DWJ) |
||
Capital Champion Holdings Limited (Capital) |
||
DWJ Partners Limited (DWJ Partners) |
||
Liu XF Holdings Limited (LXF) |
||
Tang TG Holdings Limited (TTG) |
||
Luo P Holdings Limited (LP) |
||
Geng XF Holding Limited (GXF) |
||
SVF Bumble (Cayman) Limited (SVF) |
||
Others |
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Value-added service revenue from JYBD |
— | — | ||||||||||
Value-added service revenue from Horgos |
— | — | ||||||||||
Value-added service revenue from Yinghuo |
— | — | ||||||||||
Total |
— |
|||||||||||
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Service fee to JYBD |
— |
— |
||||||||||
Total |
— | — | ||||||||||
19. |
RELATED PARTY TRANSACTIONS - continued |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Current assets: |
||||||||
Service fee prepaid to JYBD |
— |
|||||||
Total |
— |
|||||||
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Current liabilities: |
||||||||
Consideration payable for repurchase of ordinary shares and options from executives of the Group |
||||||||
Consideration payable for repurchase of ordinary shares from DWJ . |
||||||||
Consideration payable for repurchase of ordinary shares from LXF |
||||||||
Consideration payable for repurchase of ordinary shares from Euclidean |
||||||||
Consideration payable for repurchase of ordinary shares from Sigma |
||||||||
Consideration payable for equity investment in Plus |
||||||||
Consideration payable for repurchase of ordinary shares from TTG |
||||||||
Consideration payable for repurchase of ordinary shares from DWJ Partners |
||||||||
Consideration payable for repurchase of ordinary shares from GXF |
||||||||
Consideration payable for repurchase of ordinary shares from C apital |
||||||||
Total |
||||||||
20 . |
SHARE-BASED COMPENSATION |
Employee |
options: |
• | Options classified as liability |
20. |
SHARE-BASED COMPENSATION - continued |
Employee |
options : - continued |
• | Options classified as liability - continued |
Number of options |
Weighted average exercise price |
Aggregate intrinsic value |
||||||||||
US$ |
US$ |
|||||||||||
Outstanding at January 1, 2019 |
||||||||||||
Exercised |
( |
) | — | |||||||||
Outstanding at December 31, 2019 |
||||||||||||
Exercised |
( |
) | — | |||||||||
Reclassified as equity |
( |
) | ||||||||||
Outstanding at December 31, 2020 |
||||||||||||
Exercisable at December 31, 2020 |
• | Options classified as equity |
20. |
SHARE-BASED COMPENSATION - continued |
Employee |
options: - continued |
• |
Options classified as equity - continued |
Number of options |
Weighted average exercise price |
Weighted average remaining contract life |
Weighted average grant date fair value |
Aggregate intrinsic value |
||||||||||||||||
US$ |
US$ |
|||||||||||||||||||
Outstanding at December 31, 2020 |
||||||||||||||||||||
Granted |
||||||||||||||||||||
Exercised |
( |
) | ||||||||||||||||||
Forfeited |
( |
) | ||||||||||||||||||
Outstanding at December 31, 2021 |
||||||||||||||||||||
Vested and expected to vest |
||||||||||||||||||||
Exercisable at December 31, 2021 |
||||||||||||||||||||
20. |
SHARE-BASED COMPENSATION - continued |
Employee |
options: - continued |
• |
Options classified as equity - continued |
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Expected volatility |
||||||||||||
Risk-free interest rate (per annum) |
||||||||||||
Exercise multiples |
(1) |
|||||||||||
Expected dividend yield |
||||||||||||
Fair value of underlying ordinary shares |
$ | $ | $ | |||||||||
Fair value of share option |
$ | $ | $ |
(1) | Exercise multiples defines the early exercise strategy of the grantees and only applies to binomial option pricing model. |
20. |
SHARE-BASED COMPENSATION - continued |
Employee |
options: - continued |
• |
Options classified as equity - continued |
Number of restricted share units |
Weighted average grant date fair value |
|||||||
USD |
||||||||
Unvested at January 1, 2019 |
||||||||
Vested |
( |
) |
||||||
Unvested at December 31, 2019 |
||||||||
Vested |
( |
) | ||||||
Unvested at December 31, 2020 |
||||||||
|
|
|
|
Number of restricted share s |
Weighted average grant date fair value |
|||||||
USD |
||||||||
At January 1, 2021 |
||||||||
Grant |
||||||||
|
|
|
|
|
|
|
|
|
Unvested at December 31, 2021 |
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
General and administrative expenses |
||||||||||||
Selling and marketing expense |
— | |||||||||||
Research and development expense |
— | |||||||||||
Cost of revenues |
— | |||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
21. |
LOSS PER SHARE |
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Numerator |
||||||||||||
Net loss available to Full Truck Alliance Co. Ltd. from continuing operations |
( |
) | ( |
) | ( |
) | ||||||
Net income available to Full Truck Alliance Co. Ltd. from discontinued operations |
||||||||||||
Net loss available to Full Truck Alliance Co. Ltd |
( |
) | ( |
) | ( |
) | ||||||
Deemed dividend |
( |
) | ( |
) | ||||||||
Net loss available to ordinary shareholders—basic and diluted |
( |
) | ( |
) | ( |
) | ||||||
Denominator |
||||||||||||
Weighted average number of ordinary shares outstanding—basic and diluted |
||||||||||||
Basic and diluted loss per share-continuing operations |
( |
) | ( |
) | ( |
) | ||||||
Basic and diluted earnings per share-discontinued operations |
||||||||||||
|
|
|
|
|
|
|||||||
Basic and diluted loss per share |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Convertible redeemable preferred shares |
||||||||
Share options |
22. |
EMPLOYEE BENEFIT |
23. |
RISKS AND CONCENTRATIONS |
24. |
RESTRICTED NET ASSETS |
25. |
COMMITMENTS AND CONTINGENCIES |
As of December 31, 2021 |
||||
RMB |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
25. |
COMMITMENTS AND CONTINGENCIES - continued |
26. |
SUBSEQUENT EVENT |
26. |
SUBSEQUENT EVENT - continued |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
USD |
||||||||||
(Note 2) |
||||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
||||||||||||
Short-term investments |
||||||||||||
Prepayments and other current assets |
||||||||||||
|
|
|
|
|
|
|||||||
Total current assets |
||||||||||||
Investment in and amount due from subsidiaries/VIEs |
||||||||||||
Long-term investments |
||||||||||||
|
|
|
|
|
|
|||||||
Total non-current assets |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
||||||||||||
|
|
|
|
|
|
|||||||
LIABILITIES |
||||||||||||
Accounts payable |
||||||||||||
Amounts due to related parties |
||||||||||||
Income tax payable |
||||||||||||
Other tax payable |
||||||||||||
Accrued expenses and other current liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES |
||||||||||||
|
|
|
|
|
|
|||||||
MEZZANINE EQUITY |
||||||||||||
SHAREHOLDERS’ (DEFICIT) EQUITY |
||||||||||||
Class A Ordinary shares (US$ |
||||||||||||
Class B Ordinary shares (US$ and shares authorized, |
||||||||||||
Additional paid-in capital |
||||||||||||
Accumulated other comprehensive income |
||||||||||||
Subscription receivable |
( |
) | ( |
) | ||||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS’ (DEFICIT) EQUITY |
( |
) |
||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT) EQUITY |
||||||||||||
|
|
|
|
|
|
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
USD |
|||||||||||||
(Note 2) |
||||||||||||||||
Cost and operating expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest income |
||||||||||||||||
Investment income |
— | — | ( |
) | ( |
) | ||||||||||
Fair value change in trading securities |
— | — | ||||||||||||||
Impairment loss and others |
— | — | ( |
) | ( |
) | ||||||||||
Equity in losses of equity investees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income tax expenses |
— | — | ( |
) | ( |
) | ||||||||||
Equity in (loss) profit income of subsidiaries, VIEs and VIEs’ subsidiaries |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss attributable to Full Truck Alliance Co. Ltd. |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) |
||||||||||||||||
Foreign currency translation adjustments, net of tax of nil |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive loss attributable to Full Truck Alliance Co. Ltd. |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|
|
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
USD |
|||||||||||||
Cash flows from operating activities: |
(Note 2) |
|||||||||||||||
Net loss attribute to ordinary shareholders |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Adjustments to reconcile net loss to net cash used in operating activities |
||||||||||||||||
Equity in income (loss) of subsidiaries, VIEs and VIEs’ subsidiaries |
( |
) | ( |
) | ( |
) | ||||||||||
Share-based compensation |
||||||||||||||||
Modification of share options |
||||||||||||||||
Equity in loss of unconsolidated investees |
||||||||||||||||
Net gain from disposal of investment in equity investees |
— | — | ||||||||||||||
Unrealized gains from fair value changes of trading securities |
— | — | ( |
) | ( |
) | ||||||||||
Foreign exchange loss |
— |
— |
||||||||||||||
Impairment loss |
— | — | ||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Prepayments and other current assets |
( |
) | ( |
) | ||||||||||||
Accounts payable |
— | — | ||||||||||||||
Amounts due to related parties |
( |
) | ( |
) | ||||||||||||
Income tax payable |
— | — | ||||||||||||||
Accrued expenses and other current liabilities |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Cash flows from investing activities: |
||||||||||||||||
Purchases of short-term investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Maturity of short-term investments |
||||||||||||||||
Payment for investment in equity investees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Return from dissolution of an equity investment |
— | — | ||||||||||||||
Loans to related parties |
( |
) | ( |
) | ||||||||||||
Repayment of loans from related parties |
||||||||||||||||
Investment in subsidiaries and VIEs |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Cash flows from financing activities: |
||||||||||||||||
Cash paid for repurchase of ordinary shares and preferred shares |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds from issuing preferred shares, net of issuance cost |
— | — | ||||||||||||||
Proceeds from initial public offerings, net |
— | — | ||||||||||||||
Proceeds from exercise of share options |
||||||||||||||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance cost |
||||||||||||||||
Loan to a shareholder pledged by preferred shares |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) |
( |
) |
( |
) | ||||||||||
Net (decrease) increase in cash and cash equivalents |
( |
) |
( |
) |
( |
) | ||||||||||
Cash and cash equivalents, beginning of the year |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of the year |
||||||||||||||||
|
|
|
|
|
|
|
|
1) | Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed |
2) | The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries and VIEs. For the parent company, the Company records its investments in subsidiaries and VIEs under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries and VIEs” and the subsidiaries and VIE’s profit or loss as “Equity in losses of subsidiaries, VIEs and VIEs’ subsidiaries” on the Condensed Statements of Operations and Comprehensive Loss. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries and VIE in investment in and amount due from subsidiaries and VIEs even though the parent company is not obligated to provide continuing support or fund losses. |
3) | For the years ended December 31, 2019, 2020 and 2021, there were |