Revenue Performance - Total revenue for Q3 2024 was $81.6 million, representing a year-over-year increase of approximately 33.6% compared to $61.1 million in Q3 2023[10] - IoT Platform as a Service (PaaS) revenue reached $57.9 million, up about 26.4% from $45.8 million in Q3 2023[10] - Smart Solutions revenue surged by 102.9% year-over-year to $13.8 million, compared to $6.8 million in Q3 2023[10] - In Q3 2024, the company's total revenue increased by 33.6% year-over-year to $81.6 million, up from $61.1 million in Q3 2023[17] - IoT PaaS revenue rose by 26.4% year-over-year to $57.9 million, driven by increased demand from global economic recovery[18] - Smart solutions revenue surged by 102.9% year-over-year to $13.8 million, reflecting growing customer demand for differentiated smart device solutions[18] Customer and Market Growth - The number of IoT PaaS customers increased to approximately 2,200, up from about 2,100 in Q3 2023[14] - The company achieved a net expansion rate (DBNER) of 124%, significantly up from 78% in Q3 2023[14] - The company aims to enhance its developer community, which has grown to over 1.26 million registered developers, a 26.9% increase from approximately 993,000 as of December 31, 2023[14] Financial Performance - The company reported a net cash flow from operating activities of $23.9 million, compared to $16.1 million in Q3 2023[12] - The overall gross margin was 46.0%, a slight decrease of 0.7 percentage points from 46.7% in Q3 2023[10] - Operating costs increased by 35.4% year-over-year to $44.1 million, aligning with the overall revenue growth trend[19] - Gross profit rose by 31.5% year-over-year to $37.5 million, with a gross margin of 46.0%, slightly down from 46.7% in Q3 2023[21] - The company reported an operating loss of $17.1 million, narrowing from a loss of $18.5 million in Q3 2023, with a non-GAAP operating profit of $7.4 million[26] - Net loss for Q3 2024 was $4.4 million, an improvement from a net loss of $4.9 million in Q3 2023, with a non-GAAP net profit of $20.1 million, up 99.5% year-over-year[27] Cash and Assets - As of September 30, 2024, cash and cash equivalents totaled $1,023.9 million, an increase from $984.3 million as of December 31, 2023[12] - Cash and cash equivalents, along with short-term and long-term investments, totaled $1,023.9 million as of September 30, 2024, compared to $984.3 million at the end of 2023[30] - The company's cash and cash equivalents increased from $498,688 thousand as of December 31, 2023, to $610,901 thousand as of September 30, 2024, reflecting a rise of about 22.5%[45] Liabilities and Equity - Total current liabilities rose from $87,534 thousand to $122,573 thousand, marking an increase of approximately 40%[45] - Shareholders' equity increased from $970,565 thousand to $989,749 thousand, showing a growth of about 2%[46] - The company reported a net loss of $579,636 thousand as of September 30, 2024, compared to a net loss of $574,848 thousand as of December 31, 2023, indicating a slight increase in losses[46] Operational Insights - Tuya Inc. utilizes non-GAAP financial metrics to assess operational performance, which includes non-GAAP operating expenses and non-GAAP net profit metrics[37] - The company emphasizes the importance of considering both GAAP and non-GAAP financial indicators for a comprehensive evaluation of its performance[38] - Tuya Inc. is focused on expanding its cloud developer platform capabilities, integrating cloud computing and generative AI to enhance its service offerings[36] - The company aims to foster a vibrant global developer community, which includes brands, OEMs, AI agents, and system integrators, to create smart solutions[36] Future Outlook - The company remains optimistic about future business prospects, focusing on product innovation, expanding quality customer base, and diversifying revenue sources while acknowledging potential challenges[32] - Tuya Inc. will hold a conference call on November 18, 2024, to discuss its financial performance and future outlook[33]

Core Viewpoint - Tuya, Inc. has appointed Ms. Zhang Yan as a director, enhancing the board's gender diversity and bringing valuable financial expertise to the company [1][3][4]. Group 1: Appointment Details - Ms. Zhang has been the vice president of finance since January 2021 and has extensive experience in financial management, previously working at Ernst & Young Hua Ming LLP [2][4]. - The board now includes four executive directors and four independent directors, promoting a balanced composition [3]. Group 2: Company Overview - Tuya Inc. is a leading global cloud platform service provider focused on building a smart solutions developer ecosystem [5]. - The company offers a comprehensive suite of services, including Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS), aimed at developers of smart devices and applications [5].

Core Viewpoint - Tuya Inc. reported strong financial performance in Q3 2024, with significant year-over-year revenue growth across all business segments, driven by increased demand for IoT solutions and effective customer strategies [2][6][8]. Financial Highlights - Total revenue for Q3 2024 was US$81.6 million, a 33.6% increase from US$61.1 million in Q3 2023 [2][7]. - IoT PaaS revenue reached US$57.9 million, up 26.4% year-over-year [2][8]. - Smart solution revenue surged by 102.9% to US$13.8 million [2][9]. - Overall gross margin was 46.0%, slightly down from 46.7% in the previous year [2][11]. - Non-GAAP operating margin improved to 9.1%, up 14.8 percentage points from negative 5.7% in Q3 2023 [2][15]. - Net cash generated from operating activities was US$23.9 million, compared to US$16.1 million in Q3 2023 [2][21]. Customer and Market Insights - The number of IoT PaaS customers increased to approximately 2,200, up from 2,100 in Q3 2023 [3]. - The Dollar-based net expansion rate (DBNER) for IoT PaaS was 124%, significantly higher than 78% in the previous year [3][8]. - The registered IoT device and software developers exceeded 1.26 million, reflecting a 26.9% increase from the end of 2023 [3]. Operating Expenses and Profitability - Operating expenses rose to US$54.6 million, primarily due to increased share-based compensation [13]. - Loss from operations narrowed to US$17.1 million, an improvement from US$18.5 million in Q3 2023 [14]. - The company reported a net loss of US$4.4 million, compared to a net loss of US$4.9 million in the same period last year [16]. Cash Position - As of September 30, 2024, total cash and cash equivalents were US$1,023.9 million, up from US$984.3 million at the end of 2023 [2][20]. Business Outlook - The company anticipates continued growth driven by effective customer and product strategies, alongside the integration of emerging technologies like AI [22][23].

Core Viewpoint - Tuya Inc. has entered into a definitive agreement for a strategic investment by 65 Equity Partners, acquiring approximately 13% of Tuya's total issued shares from New Enterprise Associates (NEA) [1] Group 1: Investment Details - 65 Equity Partners is a wholly-owned investment platform of Temasek, focusing on supporting founders and investing in family-owned and entrepreneur-led businesses across various sectors [2][5] - The investment aligns with 65 Equity Partners' mandate to support high-quality businesses seeking a listing on the Singapore Exchange (SGX) [3] - Tuya's CEO expressed delight in welcoming 65 Equity Partners as a significant shareholder, highlighting the investment's alignment with Tuya's international expansion strategy [3] Group 2: Company Overview - Tuya Inc. is a leading global cloud platform service provider, aiming to build a cloud developer ecosystem and enable smart solutions [6] - The company offers a comprehensive suite of services, including Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS), targeting developers of smart devices and commercial applications [6][7] - Tuya has activated a global developer community, striving for a smart solutions ecosystem characterized by green and low-carbon principles, security, efficiency, agility, and openness [7] Group 3: Strategic Importance - The investment from 65 Equity Partners is seen as a significant endorsement of Tuya's vision to capture growing international markets, particularly in the Asia-Pacific region [3] - Tuya aims to empower over one million developers worldwide through its unique cloud platform, positioning itself as a key enabler of global AIoT and intelligent devices [3] - NEA remains a significant shareholder, having been a key stakeholder since Tuya's founding in 2014, indicating ongoing support for Tuya's strategic priorities [3][4]

Group 1 - The 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) will take place in Baku, Azerbaijan from November 11 to 22, 2024, with Tuya Smart participating as a representative of the technology sector [1][2] - Tuya Smart will co-host a side event on November 15 titled "Sustainable Communities and Technology Applications," focusing on how smart technologies can promote sustainable community development [3] - On November 13, Tuya will engage in a side event called "Energy Transition: Challenges and Opportunities," discussing the role of intelligent platforms in energy transformation and sharing its carbon reduction experiences [4] Group 2 - Tuya will debut at the "China Corner" during COP29, participating in a themed side event "Dialogue with the World: Building a Zero Carbon Future Ecology," showcasing its Home Energy Management System (HEMS) and Building Energy Management System (BEMS) [5][6] - The company aims to inspire global cooperation and innovation in smart and green technology, emphasizing its commitment to carbon reduction and sustainable development [7]

SANTA CLARA, Calif., Nov. 5, 2024 /PRNewswire/ -- Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA; HKEX: 2391), a global leading cloud platform service provider, today announced that it will report its third quarter 2024 unaudited financial results after the market closes on Monday, November 18, 2024.Tuya's management will hold a conference call at 07:30 P.M. Eastern Time on Monday, November 18, 2024 (08:30 A.M. Hong Kong Time on Tuesday, November 19, 2024) to discuss the financial results. In advance of th ...

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The shares of several Chinese technology companies experienced significant declines. Notably, Tuniu (TOUR, Financial) dropped by nearly 8%, and Tiger Securities (TIGR) saw a decrease of close to 7%. Other companies such as Bilibili (BILI), DouYu (DOYU), and Zeekr fell by over 5%. Additionally, iQIYI (IQ), Weibo (WB), KE Holdings (BEKE), XPeng Motors (XPEV), NIO Inc. (NIO), Pinduoduo (PDD), Miniso Group (MNSO), Futu Holdings (FUTU), and Baidu (BIDU) all experienced declines exceeding 3%.These market moves hi ...

Tuya Inc. Sponsored ADR (TUYA) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate ...

[Company Information](index=2&type=section&id=Company%20Information) [Executive Summary](index=4&type=section&id=Executive%20Summary) The company achieved strong financial and operational growth in H1 2024, with total revenue up 29.1% to $134.9 million, improved gross margin to 47.9%, first-time non-GAAP operating profit, and a significant increase in IoT PaaS DBNER to 127% [Financial Highlights](index=4&type=section&id=Financial%20Highlights) For the six months ended June 30, 2024, the company significantly improved its financial performance, with total revenue growing 29.1% to $134.9 million, overall gross margin increasing to 47.9%, substantial narrowing of losses, non-GAAP profitability, and operating cash flow reaching $26.3 million Key Financial Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $134.9 million USD | $104.5 million USD | +29.1% | | **IoT PaaS Revenue** | $99.9 million USD | $74.7 million USD | +33.7% | | **SaaS and Other Revenue** | $18.2 million USD | $17.8 million USD | +2.1% | | **Overall Gross Margin** | 47.9% | 45.6% | +2.3 percentage points | | **IoT PaaS Gross Margin** | 47.1% | 42.5% | +4.6 percentage points | | **Net Profit Margin** | -0.3% | -42.7% | +42.4 percentage points | | **Non-GAAP Net Profit Margin** | 24.5% | -2.1% | +26.6 percentage points | | **Net Cash Generated from Operating Activities** | $26.3 million USD | -$11.4 million USD | +331.1% | - As of June 30, 2024, the company held a robust financial position with total cash, cash equivalents, and short/long-term investments amounting to **$1,000.1 million**[6](index=6&type=chunk) [Operational Highlights](index=5&type=section&id=Operational%20Highlights) As of June 30, 2024, the company's operational strategy focused on large clients, increasing premium IoT PaaS clients to 280, contributing 85.1% of PaaS revenue, while the IoT PaaS DBNER significantly rose from 58% to 127%, and registered developers grew by 20.1% Key Operational Indicators for H1 2024 | Indicator | As of June 30, 2024 | As of June 30, 2023 | Change | | :--- | :--- | :--- | :--- | | **Premium IoT PaaS Clients** | 280 units | 251 units | +29 units | | **Premium Client PaaS Revenue Contribution** | 85.1% | 81.1% | +4.0 percentage points | | **IoT PaaS DBNER** | 127% | 58% | +69 percentage points | | **Registered Developers** | >1,192,000 units | (As of 2023/12/31) ~993,000 units | +20.1% (vs. end of 2023) | - Although the total number of IoT PaaS clients slightly decreased from 2,900 to 2,700, the growth in premium clients and their increased revenue contribution indicate the success of the company's large client strategy[7](index=7&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section details the company's H1 2024 financial performance, highlighting revenue growth driven by strong demand in IoT PaaS and smart solutions, improved gross margins from product optimization, significantly reduced operating expenses leading to narrowed losses and non-GAAP operating profit, and a healthy cash flow position with no interest-bearing debt [Financial Performance Analysis](index=7&type=section&id=Financial%20Performance%20Analysis) In H1 2024, total revenue grew 29.1% to $134.9 million, with IoT PaaS and smart solutions showing strong growth, overall gross margin improved to 47.9% due to PaaS, operating expenses decreased by 18.0%, and operating loss significantly narrowed to $26.7 million, achieving non-GAAP operating profit of $6.8 million Revenue and Gross Margin by Business Segment | Business Segment | H1 2024 Revenue (million USD) | YoY Growth | H1 2024 Gross Margin | YoY Change | | :--- | :--- | :--- | :--- | :--- | | IoT PaaS | 99.9 | +33.7% | 47.1% | +4.6pp | | SaaS and Other | 18.2 | +2.1% | 71.6% | -2.7pp | | Smart Solutions | 16.8 | +41.1% | 27.5% | +5.4pp | Operating Expense Changes | Expense Item | H1 2024 (million USD) | H1 2023 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 46.5 | 54.5 | -14.8% | | Sales and Marketing Expenses | 18.4 | 20.1 | -8.5% | | General and Administrative Expenses | 32.3 | 41.1 | -21.3% | | **Total Operating Expenses** | **91.4** | **111.4** | **-18.0%** | - Net loss significantly narrowed by **99.1%** from **$44.6 million** in the prior year period to **$0.4 million**, primarily due to operational improvements and **$25.3 million** in interest income, while non-GAAP net profit reached **$33.1 million**[13](index=13&type=chunk) [Liquidity and Capital Resources](index=9&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a robust financial position with total cash, cash equivalents, and investments reaching $1,000.1 million as of June 30, 2024, significantly improved operating cash flow of $26.3 million, no interest-bearing bank borrowings or asset pledges, and strategic investments in treasury bonds for capital preservation and appreciation - As of June 30, 2024, total cash and cash equivalents, along with time deposits and treasury bonds classified as short-term and long-term investments, amounted to **$1,000.1 million**, which the company deems sufficient to meet its liquidity and working capital needs[15](index=15&type=chunk)[17](index=17&type=chunk) - During the reporting period, the company acquired treasury bonds with a book value of **$123.2 million** under shareholder authorization, representing approximately **11.3%** of total assets, generating approximately **$2.9 million** in investment income[20](index=20&type=chunk) - As of June 30, 2024, the company had no interest-bearing bank borrowings, asset pledges, or capital expenditure commitments, indicating a healthy financial structure[17](index=17&type=chunk)[18](index=18&type=chunk)[21](index=21&type=chunk) [Risk Management](index=12&type=section&id=Risk%20Management) The company's primary risk exposures are foreign exchange and interest rate risks; fluctuations in RMB to USD exchange rates impact reported earnings as most revenues and expenses are RMB-denominated, with no current hedging, while interest rate risk from idle cash is not considered material - The company's primary foreign exchange risk arises from conversion differences between RMB-denominated business activities and USD as the reporting currency, with no hedging instruments currently held[22](index=22&type=chunk) - Interest rate risk is primarily associated with interest income from interest-bearing bank deposits, and the company does not anticipate significant risk from interest rate changes[23](index=23&type=chunk) [Employees and Remuneration Policy](index=13&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the group had 1,450 salaried employees, with research and development personnel comprising the majority at 1,041, supported by competitive compensation, benefits, and a systematic recruitment and training system Number of Employees by Function (as of June 30, 2024) | Function | Number of Employees | | :--- | :--- | | Research and Development | 1,041 | | Sales and Marketing | 302 | | General and Administrative and Others | 107 | | **Total** | **1,450** | [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) In H1 2024, Tuya Smart achieved a historic breakthrough with its first quarterly non-GAAP operating profit and declared its first special dividend, driven by strong IoT PaaS growth and successful smart solutions transformation, while fully embracing generative AI to enhance products and developer platforms, expressing confidence in future innovation despite macroeconomic uncertainties [Business Review for the Reporting Period](index=14&type=section&id=Business%20Review%20for%20the%20Reporting%20Period) In Q2 2024, the company achieved its first quarterly non-GAAP operating profit and declared a special cash dividend of approximately $33 million, marking a new phase of sustainable development, with IoT PaaS growing 33.7% and smart solutions 41.1%, while deepening global partnerships and enhancing smart solutions' revenue and gross margin through high-value software integration - The company achieved its first-ever quarterly operating profit on a non-GAAP basis in Q2 2024, with an operating profit of approximately **$7.4 million**[25](index=25&type=chunk) - The company announced its first cash dividend of approximately **$33 million**, roughly equivalent to its non-GAAP net profit for H1 2024, demonstrating confidence in future cash flows[25](index=25&type=chunk) - The company expanded global collaborations, including a partnership with France's AX Tech Group to explore the energy-saving market, and collaborations with major telecom and internet service providers in Latin America and Asia-Pacific[26](index=26&type=chunk) - The smart device distribution segment was officially renamed 'Smart Solutions,' offering high-value products by integrating generative AI, operating systems, and cloud software, with this business's revenue growing **41.1%** year-over-year and a gross margin of **27.5%**[27](index=27&type=chunk) [Full Embrace of Generative AI](index=15&type=section&id=Full%20Embrace%20of%20Generative%20AI) Since early 2023, the company has fully embraced generative AI, deepening its application in device and edge AI in H1 2024 by integrating GenAI into products like smart light strips and pet cameras to enhance user experience and market competitiveness, and into smart scene configuration and developer platforms to lower user barriers and improve developer efficiency - The company leverages generative AI to enhance product intelligence, for instance, smart light strips can interpret user emotions to adjust lighting, and pet cameras can intelligently capture and generate videos[28](index=28&type=chunk) - The company plans to launch more generative AI-driven products in H2 2024 to enrich its solutions[28](index=28&type=chunk) [Outlook](index=16&type=section&id=Outlook) Looking ahead, with macroeconomic stability and normalized downstream inventory, the industry shows positive momentum; the company is confident in its business prospects, committed to product iteration, expanding premium clientele, and investing in innovation, while acknowledging challenges from changing consumer spending patterns and geopolitical uncertainties - The company maintains an optimistic outlook on future business prospects, primarily based on a stable macroeconomic environment, normalized downstream inventory, and growing demand for consumer electronics products[29](index=29&type=chunk) - The company will continue to focus on product iteration, enhancing software and hardware capabilities, expanding its premium customer base, investing in innovation, and optimizing operational efficiency[29](index=29&type=chunk) [Corporate Governance](index=16&type=section&id=Corporate%20Governance) This section outlines the company's corporate governance structure, including its Weighted Voting Rights (WVR) framework granting founders Mr. Wang Xueji and Mr. Chen Liaohan greater voting power, compliance with most Corporate Governance Code provisions despite the Chairman and CEO roles being combined, and the establishment of audit, remuneration, nomination, and corporate governance committees to ensure balanced power and effective oversight [Weighted Voting Rights (WVR)](index=17&type=section&id=Weighted%20Voting%20Rights) The company employs a Weighted Voting Rights structure where Class A ordinary shares have one vote and Class B ordinary shares have ten votes, enabling WVR beneficiaries Mr. Wang Xueji and Mr. Chen Liaohan to exercise voting control without majority economic interest, ensuring long-term vision stability, with both beneficiaries collectively controlling approximately 64.91% of voting rights as of the latest practicable date - The company's share capital is divided into A (one vote per share) and B (ten votes per share) ordinary shares, with B shares held by Weighted Voting Rights beneficiaries Mr. Wang Xueji and Mr. Chen Liaohan[31](index=31&type=chunk) - As of the latest practicable date, Mr. Wang and Mr. Chen collectively controlled approximately **64.91%** of the effective voting rights[32](index=32&type=chunk) [Compliance with Corporate Governance Code](index=18&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) During the reporting period, the company complied with all Corporate Governance Code provisions, with the sole deviation being the combined roles of Chairman and CEO held by Mr. Wang Xueji, which the Board believes facilitates effective strategy execution and information flow, with power balance maintained through independent non-executive directors and collective board decision-making - The company deviated from the Corporate Governance Code's provision requiring separation of Chairman and CEO roles, with founder Mr. Wang Xueji concurrently serving as Co-Chairman and CEO[35](index=35&type=chunk) - The Board believes this arrangement does not compromise the balance of power, as all significant decisions are made after collective discussion by the Board, including four independent non-executive directors[35](index=35&type=chunk) [Board Committees](index=19&type=section&id=Board%20Committees) The Board has established four committees—Audit, Remuneration, Nomination, and Corporate Governance—to oversee specific matters, each comprising multiple directors, with independent non-executive directors playing key roles and serving as chairpersons to ensure independence and professionalism, and the Audit Committee having reviewed the current financial statements - The Audit Committee comprises three independent non-executive directors, chaired by Mr. Huang Xuande, and is responsible for overseeing financial reporting and internal controls[38](index=38&type=chunk) - The Remuneration Committee consists of Mr. Wang and two independent non-executive directors, chaired by Mr. Qiu Changheng, and is responsible for reviewing remuneration policies[39](index=39&type=chunk) - The Nomination Committee comprises Mr. Chen and two independent non-executive directors, chaired by Mr. Qiu Changheng, and is responsible for director nominations and board composition[41](index=41&type=chunk) - The Corporate Governance Committee consists of two independent non-executive directors, chaired by Mr. Qiu Changheng, and is responsible for overseeing the implementation of corporate governance principles, particularly safeguards related to the Weighted Voting Rights structure[42](index=42&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section provides supplementary information on director and major shareholder holdings, share incentive plans, dividend policy, share repurchases, use of proceeds, and significant litigation, noting stable holdings by core management and major shareholders, the adoption of a new share plan in 2024, the declaration of a special dividend, minor share repurchases, planned use of global offering proceeds, and an ongoing securities class action lawsuit in the US [Directors' and Major Shareholders' Interests](index=22&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) As of June 30, 2024, company founders Mr. Wang Xueji and Mr. Chen Liaohan are controlling shareholders, holding significant Class A and B ordinary shares through their controlled entities and trusts, with other major shareholders including New Enterprise Associates and Tencent, indicating a clear ownership structure and strong alignment of core management interests with the company - Founders Mr. Wang Xueji and Mr. Chen Liaohan hold **61.79%** and **38.21%** respectively of the company's Class B ordinary shares, constituting the controlling shareholders and Weighted Voting Rights beneficiaries[44](index=44&type=chunk) - Among institutional investors, New Enterprise Associates holds approximately **21.76%** of Class A ordinary shares, and Tencent holds approximately **11.56%** of Class A ordinary shares[50](index=50&type=chunk) [Share Plans](index=25&type=section&id=Share%20Plans) On June 20, 2024, the company adopted a new '2024 Share Plan' and terminated the '2015 Share Incentive Plan,' aiming to better incentivize and retain talent in compliance with updated listing rules, while during the reporting period, a small number of restricted share units were granted and some share options exercised or lapsed under the old plan - The company adopted a new '2024 Share Plan' on June 20, 2024, and terminated the '2015 Share Incentive Plan,' with all new awards thereafter to be granted under the new plan[53](index=53&type=chunk)[56](index=56&type=chunk) - The total limit for the 2024 Share Plan is **57,459,259** Class A ordinary shares, representing approximately **10%** of the total issued shares on the adoption date[64](index=64&type=chunk) - As of June 30, 2024, under the 2015 Plan, there were **51,037,005** unexercised share options and **7,261,875** unvested restricted share units outstanding[58](index=58&type=chunk)[59](index=59&type=chunk)[61](index=61&type=chunk) [Dividends](index=36&type=section&id=Dividends) On August 26, 2024, the Board approved the declaration and distribution of a special dividend of **$0.0589** per ordinary share (or ADS), totaling approximately **$33 million**, marking the company's first dividend, funded by surplus cash - The company declared a special dividend of **$0.0589** per share, totaling approximately **$33 million**, to be paid from surplus cash[69](index=69&type=chunk) [Purchases, Sales or Redemptions of the Company's Listed Securities](index=36&type=section&id=Purchases%2C%20Sales%20or%20Redemptions%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, the company repurchased **223,773** American Depositary Shares from the open market for a total consideration of **$0.4 million**, holding no treasury shares as of the reporting date - During the reporting period, the company repurchased **223,773** American Depositary Shares for a total consideration of **$0.4 million**[70](index=70&type=chunk) [Use of Proceeds from Global Offering](index=37&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company's net proceeds of approximately **HK$70 million** from its July 2022 Hong Kong listing are being steadily utilized as planned in the prospectus, primarily for enhancing IoT technology, expanding product offerings, marketing, and strategic investments, with approximately **HK$41.8 million** remaining unused as of June 30, 2024 Use of Proceeds from Global Offering (million HKD) | Planned Use | Planned Amount | Unused as of 2024/6/30 | Expected Time of Use | | :--- | :--- | :--- | :--- | | Enhancing IoT Technology and Infrastructure | 21.0 | 12.6 | Next three and a half years | | Expanding and Enhancing Product Offerings | 21.0 | 12.6 | Next three and a half years | | Marketing and Branding Activities | 10.5 | 6.2 | Next three and a half years | | Strategic Partnerships, Investments, and Acquisitions | 10.5 | 6.2 | Next three and a half years | | General Corporate Purposes and Working Capital | 7.0 | 4.2 | Next three and a half years | | **Total** | **70.0** | **41.8** | | [Significant Litigation](index=39&type=section&id=Significant%20Litigation) The company is currently addressing a securities class action lawsuit filed in the US in August 2022, alleging materially misleading statements in its US listing registration statement, which remains ongoing with no estimable potential loss, and no other significant litigation or arbitration - The company and certain of its executives are named as defendants in a securities class action lawsuit in the US related to the company's 2021 US listing[76](index=76&type=chunk) - As of the reporting date, the lawsuit remains ongoing, and the company cannot estimate potential losses nor has it accrued significant liabilities in connection therewith[76](index=76&type=chunk) [Use of Non-GAAP Financial Measures](index=40&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company uses Non-GAAP financial measures as supplementary metrics to assess operating performance, primarily excluding the impact of share-based compensation, credit-related impairment of long-term investments, and litigation expenses, with detailed reconciliations to the most comparable US GAAP measures provided in the report Reconciliation of Operating Loss to Non-GAAP Operating Profit (thousand USD) | Item | For the Six Months Ended June 30, 2024 | | :--- | :--- | | **Operating Loss (GAAP)** | **(26,711)** | | Add: Share-based compensation | 31,223 | | Add: Credit-related impairment of long-term investments | 189 | | Add: Litigation expenses | 2,100 | | **Non-GAAP Operating Profit** | **6,801** | Reconciliation of Net Loss to Non-GAAP Net Profit (thousand USD) | Item | For the Six Months Ended June 30, 2024 | | :--- | :--- | | **Net Loss (GAAP)** | **(415)** | | Add: Share-based compensation | 31,223 | | Add: Credit-related impairment of long-term investments | 189 | | Add: Litigation expenses | 2,100 | | **Non-GAAP Net Profit** | **33,097** | [Interim Financial Information Review Report](index=42&type=section&id=Interim%20Financial%20Information%20Review%20Report) PricewaterhouseCoopers, the company's independent auditor, has reviewed the interim financial information in accordance with International Standards on Review Engagements, concluding that nothing has come to their attention to suggest the interim financial information is not prepared in all material respects in accordance with US GAAP - Independent auditor PricewaterhouseCoopers reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[82](index=82&type=chunk) - The review concluded that nothing significant came to their attention indicating the financial information was not prepared in accordance with US GAAP[83](index=83&type=chunk) [Unaudited Condensed Consolidated Financial Statements and Notes](index=43&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements%20and%20Notes) This section includes the company's unaudited condensed consolidated balance sheets, statements of comprehensive loss, changes in shareholders' equity, and cash flows as of June 30, 2024, along with detailed notes explaining accounting policies, account specifics (e.g., revenue, investments, share-based payments), and reconciliation differences with IFRS, showing total assets of $1.09 billion, total liabilities of $89.78 million, and shareholders' equity of $1 billion [Unaudited Condensed Consolidated Financial Statements](index=43&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) As of June 30, 2024, financial statements show total assets increased to $1.09 billion, total liabilities decreased to $89.78 million, indicating a healthy balance sheet, while the statement of comprehensive loss shows net loss significantly narrowed to $0.415 million, and the cash flow statement reflects strong net cash inflow from operating activities of $116 million, with cash and cash equivalents reaching $615 million at period-end Condensed Consolidated Balance Sheets Summary (thousand USD) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **1,089,650** | **1,066,400** | | Current Assets | 851,286 | 847,798 | | Non-current Assets | 238,364 | 218,602 | | **Total Liabilities** | **89,783** | **95,835** | | Current Liabilities | 84,938 | 87,534 | | **Total Shareholders' Equity** | **999,867** | **970,565** | Condensed Consolidated Statements of Comprehensive Loss Summary (thousand USD) | Item | For the Six Months Ended June 30, 2024 | For the Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 134,941 | 104,489 | | Gross Profit | 64,677 | 47,669 | | Operating Loss | (26,711) | (63,713) | | **Net Loss** | **(415)** | **(44,594)** | Condensed Consolidated Statements of Cash Flows Summary (thousand USD) | Item | For the Six Months Ended June 30, 2024 | For the Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 26,319 | (11,387) | | Net Cash from Investing Activities | 90,085 | (22,335) | | Net Cash from Financing Activities | 150 | (2,067) | | **Cash and Cash Equivalents at End of Period** | **614,919** | **94,542** | [Notes to Financial Statements](index=52&type=section&id=Notes%20to%20Financial%20Statements) The notes provide detailed explanations and supplementary information to the financial statements, including revenue recognition (Note 13) detailing segment revenues, share-based compensation (Note 16) disclosing equity incentive plan details and expense recognition, commitments and contingencies (Note 19) outlining contractual commitments and significant litigation, fair value measurements (Note 21) presenting financial asset hierarchy, and Note 24 offering a detailed reconciliation between US GAAP and IFRS, primarily differing in accounting for share-based compensation, operating leases, and long-term investments - Note 13 (Revenue): Details the amounts for the three major revenue streams: IoT PaaS, Smart Solutions, and SaaS and Others[127](index=127&type=chunk) - Note 16 (Share-based Compensation): As of June 30, 2024, unrecognized share-based compensation expenses related to share options and restricted share units were **$38.8 million** and **$14.9 million**, respectively[137](index=137&type=chunk)[139](index=139&type=chunk) - Note 19 (Commitments and Contingencies): The company has non-cancelable contractual commitments related to third-party cloud infrastructure, with a remaining amount of **$13.81 million**[151](index=151&type=chunk) - Note 24 (US GAAP and IFRS Reconciliation): Key differences between the two accounting standards resulted in a net profit of **$19.82 million** for H1 2024 under IFRS, compared to a net loss of **$0.415 million** under US GAAP, primarily due to differing recognition methods for share-based compensation expenses[171](index=171&type=chunk)[176](index=176&type=chunk) [Definitions](index=84&type=section&id=Definitions) This section defines key terms used in the report, such as different share classes (Class A, Class B), company entities, share incentive plans, Weighted Voting Rights structure, and related beneficiaries, providing essential background information for understanding the report's content