In a nutshell As a financial liability rather than an equity instrument at the accounting measurement level, which increas Gu Ming’s debt ratio.
Horizon, a list company in the intelligent driving field, has also appear. Horizon has receiv investments
from Volkswagen’s CARIAD, SAIC, 5Y Capital, Hillhouse saint vincent and the grenadines email list 100000 contact leads Capital, Sequoia Capital and others.
From 2021 to 2023, the company’s “preferr shares and other financial liabilities at fair value through
profit or loss” were 18.341 billion yuan, 26.451 billion yuan and 39.240 billion yuan respectively.
As a result, the company’s debt ratio is relatively high, at 179%, 276% and 255% respectively.
It’s not just Horizon
Many Hong Konglist companies also had high debts due to this before listing. This is actually a routine
operation for companies in the early stages of development to seek financial support for expansion,
operations, and R&D. If they can also get endorsement holiday marketing trends: what to expect in campaigns and strategies for the season from wellknown investment institutions, it can also lay a good foundation for IPO for companies planning to go public.
It does not affect operations and cash flow, and is better than other industries under the same caliber
The debt data in the financial reports do not actually refer to “debt” in the traditional sense. A look at these leading highend manufacturing companies also shows that debt ratios do not always correspond to high risks.
Generally speaking, liabilities can be divid into interestfree liabilities and interestbearing liabilities depending on whether they bear interest
Interestfree liabilities often refer to the temporary occupation of upstream and downstream funds by
an enterprise during the production and operation process, such as advance payments and contract
payables. The enterprise does not ne to pay interest, and this part of the liability may be partially
convert into income in the future.
Interestbearing liabilities often refer to money trust review that a company borrows from banks and other institutions. The company nes to pay the corresponding interest and repay the principal when due In a nutshell.