Financial Performance - Revenue for the six months ended June 30, 2024, was 296,194thousand,representinga7.0276,932 thousand in the same period of 2023[2] - Gross profit increased to 143,790thousand,up14.9125,118 thousand year-over-year, with a gross margin of 48.5% compared to 45.2% in 2023[2] - Profit before tax rose significantly by 56.7% to 52,674thousand,comparedto33,620 thousand in the prior year[4] - Net profit attributable to equity holders of the parent was 44,857thousand,a37.532,619 thousand in the previous year[2] - Basic earnings per share increased to 4.13 cents, up 42.9% from 2.89 cents in the same period last year[6] - The company reported other income and gains of 3,722thousandfortheperiod,contributingtooverallfinancialperformance[4]−Thegroup’sincometaxexpenseforthesixmonthsendedJune30,2024,totaled7,817,000, compared to 1,034,000forthesameperiodin2023,reflectingasignificantincrease[28]−Thegrouprecordedataxexpenseofapproximately7.8 million for the six months ended June 30, 2024, an increase of about 6.8millioncomparedtothesameperiodin2023,primarilyduetoanincreaseinprofitbeforetax[65]AssetsandLiabilities−Totalnon−currentassetsasofJune30,2024,amountedto93,674 thousand, compared to 59,247thousandasofDecember31,2023[7]−Currentassetsdecreasedto479,753 thousand from 505,887thousandattheendof2023,withinventoryat76,529 thousand[8] - Current liabilities totaled 224,752thousand,slightlydownfrom228,248 thousand at the end of 2023[8] - The company's total equity increased to 335,946thousandfrom327,516 thousand at the end of the previous year[8] - Trade receivables as of June 30, 2024, amounted to 65,154,000,adecreasefrom192,082,000 as of December 31, 2023[32] - Trade payables as of June 30, 2024, totaled 102,539,000,comparedto113,112,000 as of December 31, 2023[35] - The group had approximately 35.0millioninpledgedassetsasofJune30,2024,downfrom82.4 million as of December 31, 2023[74] Revenue Breakdown - North America generated 224,931,000inrevenue,upfrom199,017,000, reflecting a growth of 13.0%[14] - Revenue from North America increased by approximately 13.0% to 224.9millioninH12024comparedto199.0 million in H1 2023, driven by growth in non-Amazon channels[46] - Revenue from Europe decreased by approximately 18.6% to 53.2millioninH12024,primarilyduetoreduceddemandforairfryersinTurkey,despitegrowthinGermanyandHungaryofapproximately39.118.1 million in H1 2024, mainly driven by growth in Japan and the Middle East[47] - Revenue from non-Amazon channels increased significantly by approximately 46.5% year-over-year, primarily due to a substantial rise in sales through chain retailers and the expansion into TikTok retail channels[45] Market Performance - Levoit air purifiers and humidifiers maintained the top sales share in the U.S. market, with sales shares of approximately 33% and 24%, respectively, marking an increase of about 6 percentage points compared to the same period in 2023[39] - Levoit vacuum cleaners achieved the top seller ranking in both the U.S. and German Amazon channels in the first half of 2024, continuing the success of its air purifiers and humidifiers[39] - Cosori air fryers maintained the top sales share in the Spanish market, demonstrating strong performance in Europe[39] - Levoit brand revenue increased by approximately 47.1% to 192.7millioninH12024,supportedbyhighersalesofairpurifiers,vacuumcleaners,andtowerfans[48]ProductDevelopmentandInnovation−Thecompanyiscommittedtolong−terminvestmentsinproductdevelopmentandinnovation,despiteshort−termpressuresonoperatingprofitmargins[37]−TheintroductionofthePawsyncbrandaimstocreateasmarthealthecosystemforpets,enhancinguserexperiencethroughtechnology[37]−Thecompanylaunchednewproductsin2024,includinghigh−efficiencyfansandversatileairfryers,tomeetdiverseconsumerneedsandenhancebrandshare[41]−Newproductlaunchesinthesecondhalfof2024willincludeadvancedsmartairpurifiers,centralairconditioningfilters,smartpetfeeders,andsmartbodyscales[77]CorporateGovernanceandCompliance−Theauditcommittee,consistingofthreeindependentnon−executivedirectors,hasreviewedtheunauditedinterimfinancialinformationforthesixmonthsendedJune30,2024[85]−Thecompanyhasadoptedthecorporategovernancecodeandhasconfirmedcompliancewithallapplicableprovisionsduringthereportingperiod[84]−VesyncCo.,Ltd.isfocusedonexpandingitsmarketpresenceandenhancingitsproductofferingsintheInternetofThingssector[90]ShareholderReturns−ThegroupdeclaredafinaldividendofHKD0.1569pershare,totalingapproximatelyHKD179,171,000(equivalentto22,923,000) for the year ended December 31, 2023[29] - The interim dividend declared is HKD 0.0888 per share, compared to HKD 0.0539 in 2023, with payment scheduled for October 22, 2024[78] - A total of 8,883,000 shares were repurchased during the reporting period at a total cost of HKD 45,526,600[80] Operational Efficiency - Total sales and distribution expenses decreased by approximately 3.5% to 46.1millioninH12024from47.8 million in H1 2023, attributed to improved marketing efficiency and inventory turnover[54] - Administrative expenses decreased by approximately 2.0% to 42.2millioninH12024from43.0 million in H1 2023, mainly due to a reduction in professional fees[56] - Financial costs for H1 2024 totaled approximately 1.2million,anincreasefrom925,000 in H1 2023, driven by higher factoring fees and supplier discount interest[59] Future Outlook - The company aims to enhance its user-centric product portfolio and expand its offerings in the second half of 2024, focusing on smart home devices and increasing market presence in Europe[76] - The company is increasing its retail presence outside of Amazon, particularly through TikTok and mainstream supermarkets[77] - The company has committed to investing in technology to develop the Ve Sync app into a comprehensive home IoT platform[76]
