Full Truck Alliance Co. Ltd. Files 20-F for Fiscal Year Ended December 31, 2023

TL;DR

<b>Full Truck Alliance Co. Ltd. filed its 20-F, detailing 2023 fiscal year-end information, including government subsidies for its headquarters lease and incentives for freight brokerage services.</b>

AI Summary

Full Truck Alliance Co. Ltd. (YMM) filed a Foreign Annual Report (20-F) with the SEC on April 15, 2024. The company's headquarters lease is subsidized by a local government authority, with RMB81,147 of lease liabilities covered by these subsidies. Government grants are received from local governments to incentivize freight brokerage services. The filing includes data for fiscal years 2021, 2022, and 2023. Specific asset categories mentioned include customer relationships, trademarks, software, vehicles, and leasehold improvements. The company categorizes financial assets based on their past-due status, including those 0-30 days, 31-60 days, 60-89 days, and over 90 days past due.

Why It Matters

For investors and stakeholders tracking Full Truck Alliance Co. Ltd., this filing contains several important signals. The government subsidy for the headquarters lease indicates potential cost savings and a favorable relationship with local authorities, subject to performance targets. The receipt of government grants for freight brokerage services suggests regulatory support and potential financial advantages for this core business segment.

Risk Assessment

Risk Level: low — Full Truck Alliance Co. Ltd. shows low risk based on this filing. The filing is a standard annual report (20-F) and does not contain immediate red flags or significant negative developments.

Analyst Insight

Review the specific performance targets for the headquarters lease subsidy and the terms of the government grants for freight brokerage services to assess ongoing benefits.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-04-15 — Filing Date (Date the 20-F was filed)
• RMB81,147 — Lease Liabilities Subsidized (Portion of lease liabilities covered by government subsidies)

Key Players & Entities

• Full Truck Alliance Co. Ltd. (company) — Filer of the 20-F report
• RMB81,147 (dollar_amount) — Amount of lease liabilities covered by subsidies

FAQ

Risk Factors

• Government Subsidies and Grants [low — financial]: The company benefits from government subsidies for its headquarters lease and grants for freight brokerage services, which are subject to certain performance targets and conditions.

Industry Context

Full Truck Alliance operates in the freight brokerage and logistics sector, a critical component of China's e-commerce and supply chain infrastructure.

Regulatory Implications

The company's operations are influenced by government policies aimed at supporting logistics and incentivizing service providers, as evidenced by lease subsidies and operational grants.

What Investors Should Do

1. Analyze the financial impact of government subsidies on the company's operating expenses.
2. Evaluate the sustainability of government grants and their influence on the freight brokerage segment's profitability.
3. Monitor compliance with performance targets associated with the headquarters lease subsidy.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 20-F filing
• 2024-04-15: Filing Date — Date the 20-F was officially submitted to the SEC

Glossary

Government Grants

Financial assistance provided by government entities to incentivize specific business activities. (Indicates potential financial benefits and regulatory support for the company's freight brokerage services.)

Lease Liabilities

Obligations arising from lease agreements, representing the future payments owed. (Highlights the impact of government subsidies on reducing the company's occupancy costs for its headquarters.)

Year-Over-Year Comparison

This filing represents the annual 20-F report for the fiscal year ended December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.00001 — k Exchange Class A ordinary shares, US$0.00001 par value per share * New York Stock E
• $ — e number of months in such period; "US$," "U.S. dollars," or "dollars" are to t
• $1 — t were made at a rate of RMB7.0999 to US$1.00, the exchange rate set forth in the

Filing Documents

• d569306d20f.htm (20-F) — 4660KB
• d569306dex11.htm (EX-1.1) — 383KB
• d569306dex43.htm (EX-4.3) — 45KB
• d569306dex44.htm (EX-4.4) — 10KB
• d569306dex47.htm (EX-4.7) — 46KB
• d569306dex81.htm (EX-8.1) — 27KB
• d569306dex121.htm (EX-12.1) — 11KB
• d569306dex122.htm (EX-12.2) — 11KB
• d569306dex131.htm (EX-13.1) — 3KB
• d569306dex132.htm (EX-13.2) — 3KB
• d569306dex151.htm (EX-15.1) — 3KB
• d569306dex152.htm (EX-15.2) — 4KB
• d569306dex971.htm (EX-97.1) — 19KB
• g569306alogo1.jpg (GRAPHIC) — 7KB
• g569306alogo2.jpg (GRAPHIC) — 14KB
• g569306g01g19.jpg (GRAPHIC) — 132KB
• g569306g05g05.jpg (GRAPHIC) — 144KB
• g569306g16z33.jpg (GRAPHIC) — 56KB
• g569306g83g83.jpg (GRAPHIC) — 148KB
• g569306g90g02.jpg (GRAPHIC) — 71KB
• g569306g90g90.jpg (GRAPHIC) — 84KB
• g569306g91g01.jpg (GRAPHIC) — 104KB
• g569306snap1.jpg (GRAPHIC) — 12KB
• 0001193125-24-095461.txt (&nbsp;) — 19506KB
• ymm-20231231.xsd (EX-101.SCH) — 118KB
• ymm-20231231_cal.xml (EX-101.CAL) — 93KB
• ymm-20231231_def.xml (EX-101.DEF) — 553KB
• ymm-20231231_lab.xml (EX-101.LAB) — 776KB
• ymm-20231231_pre.xml (EX-101.PRE) — 749KB
• d569306d20f_htm.xml (XML) — 2996KB

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 3

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 3

KEY INFORMATION

ITEM 3. KEY INFORMATION 3

INFORMATION ON THE COMPANY

ITEM 4. INFORMATION ON THE COMPANY 76 ITEM4A UNRESOLVED STAFF COMMENTS 124

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 124

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 147

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 159

FINANCIAL INFORMATION

ITEM 8. FINANCIAL INFORMATION 162

THE OFFER AND LISTING

ITEM 9. THE OFFER AND LISTING 163

ADDITIONAL INFORMATION

ITEM 10. ADDITIONAL INFORMATION 164

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 172

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 173 PART II 175

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 175

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 175

CONTROLS AND PROCEDURES

ITEM 15. CONTROLS AND PROCEDURES 175

AUDIT COMMITTEE FINANCIAL EXPERT

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT 176

CODE OF ETHICS

ITEM 16B. CODE OF ETHICS 176

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 177

EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 178

PURCHASE OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

ITEM 16E. PURCHASE OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 178

CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT

ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT 179

CORPORATE GOVERNANCE

ITEM 16G. CORPORATE GOVERNANCE 179

MINE SAFETY

ITEM 16H. MINE SAFETY 179

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 179

INSIDER TRADING POLICIES

ITEM 16J. INSIDER TRADING POLICIES 179

CYBERSECURITY

ITEM 16K. CYBERSECURITY. 180 PART III 183

FINANCIAL STATEMENTS

ITEM 17. FINANCIAL STATEMENTS 183

FINANCIAL STATEMENTS

ITEM 18. FINANCIAL STATEMENTS 184

EXHIBIT INDEX

ITEM 19. EXHIBIT INDEX 184 i Table of Contents Conventions That Apply to This Annual Report on Form 20-F Unless we indicate otherwise, references in this annual report on Form 20-F to: "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 in our Company; "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; "consolidated affiliates" are to the Group VIEs and their respective subsidiaries; "FTA platform" are to a digital, standardized and smart freight platform that connects shippers and truckers, currently providing services under the brands of Yunmanman , Huochebang , Shengsheng and Yunmanman Cold Chain ; "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; "Hong Kong dollar(s)" or "HK dollar(s)" or "HK

View Full Filing

View this 20-F filing on SEC EDGAR