VESYNC(02148) - 2024 - 中期财报

Financial Performance - Revenue for the first half of 2024 reached approximately $296.2 million, with a gross profit of$143.8 million, and net profit attributable to parent company owners of $44.9 million, representing year-over-year growth of 7.0$296.2 million, a 7.0% increase compared to the same period in 2023[12] - Gross profit increased by 14.9% to approximately $143.8 million, with net profit attributable to shareholders rising by 37.5$44.9 million[12] - Net profit for the first half of 2024 increased to $44.857 million, up from$32.586 million in the same period of 2023, representing a growth of approximately 37.6%[85] - Total comprehensive income for the first half of 2024 reached $40.230 million, compared to$29.649 million in the first half of 2023, reflecting a 35.7% increase[85] - Basic earnings per share for the first half of 2024 rose to 4.13 cents, up from 2.89 cents in the same period of 2023, marking a 42.9% increase[85] - Total revenue for the six months ended June 30, 2024, was $296.194 million, compared to$276.932 million in the same period in 2023, representing a 7% increase[99][103] - The parent company's profit attributable to ordinary equity holders for calculating basic and diluted earnings per share was $44,857k[119] Market Share and Product Performance - Levoit air purifiers and humidifiers maintained their leading market share in the U.S., with sales shares of approximately 33$192.7 million in H1 2024, driven by growth in air purifiers, vacuum cleaners, and tower fans[19] Regional Revenue Performance - North America market revenue reached approximately $224.9 million, a 13.0$53.2 million, a decrease of $12.1 million or 18.6$18.1 million, driven by strong performance in Japan and the Middle East[10] - Revenue from North America increased by 13.0% to $224.9 million in H1 2024, driven by growth in non-Amazon channels and new TikTok retail channels[16] - Revenue from Europe decreased by 18.6$53.2 million in H1 2024, primarily due to reduced demand for air fryers in Turkey, partially offset by growth in Germany (39.1%) and Hungary (38.6%)[17] - Revenue from Asia increased by 43.4% to $18.1 million in H1 2024, driven by growth in Japan and the Middle East markets[18] - Revenue from North America increased to$224.931 million in 2024 from $199.017 million in 2023, a 13$53.159 million from $65.293 million, a 19$160.9 million as of June 30, 2024, up from $104.3 million as of December 31, 2023[37] - Total bank borrowings decreased to$12.7 million as of June 30, 2024, from $29.8 million as of December 31, 2023, with$10.4 million at fixed interest rates and $2.3 million at floating rates[38][39] - The company's asset-liability ratio decreased to 7.6$35.0 million as of June 30, 2024, from $82.4 million as of December 31, 2023[47] - Cash flow from operating activities increased significantly to$80.553 million, up from $36.069 million in the previous year[92] - The company's cash and cash equivalents at the end of the period stood at$160.906 million, compared to $113.990 million in the previous year[93] - Inventory decreased by$2.078 million, contributing to the positive cash flow from operations[92] - Trade receivables and bills receivable decreased by $31.959 million, improving cash flow[92] - Cash flow from financing activities was negative at$24.061 million, primarily due to share repurchases and loan repayments[93] - The company's investment activities resulted in a net cash inflow of $3.676 million, compared to a net outflow of$14.170 million in the previous year[93] Expenses and Costs - Sales and distribution expenses decreased by 3.5% to $46.1 million in H1 2024, driven by reduced marketing and advertising expenses and improved inventory turnover efficiency[24] - Administrative expenses decreased by 2.0$42.2 million in H1 2024, primarily due to reduced professional fees[26] - Financial costs increased to $1.2 million in H1 2024, mainly due to factoring fees and supplier discount interest returns[29] - The company's total employee costs increased to$40.8 million for the six months ended June 30, 2024, up from $37.0 million in the same period in 2023[43] - Cost of goods sold decreased slightly to$126.544 million in 2024 from $128.242 million in 2023[108] Tax and Other Income - The company's subsidiaries in China enjoy a preferential corporate income tax rate of 15$7.8 million, an increase of $6.8 million compared to the same period in 2023, primarily due to higher pre-tax profits[35] - Other income and gains decreased by 56.6$3.7 million in H1 2024, mainly due to reduced government grants, fair value gains, and foreign exchange gains[22] - Other income and gains totaled $3.722 million in 2024, down from$8.581 million in 2023, primarily due to lower government grants and exchange gains[107] - The company's effective tax rate in Hong Kong is 16.5%, with a reduced rate of 8.25% for the first HK$2 million of taxable profits for eligible entities[110] - In mainland China, the company benefits from a preferential corporate income tax rate of 15$7,817k, with significant contributions from the US ($3,837k), Singapore ($2,354k), and Mainland China ($1,096k)[115] Shareholder and Equity Information - The company's attributable profit to parent company owners increased by$12.3 million or 37.5% to $44.9 million for the six months ended June 30, 2024, compared to$32.6 million in the same period in 2023[36] - The company's total issued shares as of June 30, 2024, amounted to 1,146,616,800 shares[61] - Yang Lin holds 406,040,800 shares through a discretionary trust, representing a significant portion of the company's equity[59] - Yang Lin, Yang Hai, and Yang Yuzheng collectively hold 789,260,200 shares, accounting for 68.83% of the company's total equity[60] - Yang Lin has the right to exercise 1,150,000 share options under the share option plan[61] - Chen Zhaojun holds 5,240,000 shares, representing 0.457% of the company's equity[60] - Fang He, Gu Jiong, and Tan Wen each hold 200,000 shares, representing 0.017% of the company's equity[60] - Arceus Co., Ltd holds 8,067,200 shares, fully owned by Mr. Yang Hai, who also holds 1,150,000 share options[62] - Caerus Co., Ltd holds 364,719,200 shares, fully owned by Acevation Trust, with Mr. Yang Yuzheng as the settler[62] - North Point Trust Company LLC holds 406,040,800 shares, representing 35.41% of the company's equity[64] - Karis I LLC holds 243,624,800 shares, representing 21.25% of the company's equity[64] - Karis II LLC holds 162,416,000 shares, representing 14.16% of the company's equity[64] - Mr. Xu Bo and his spouse hold 789,260,200 shares, representing 68.83% of the company's equity[64] - HHLR Advisors, Ltd. holds 98,286,000 shares, representing 8.57% of the company's equity[64] - HHLR Fund, L.P. holds 94,860,000 shares, representing 8.27% of the company's equity[64] - The company has a total of 1,146,616,800 shares issued as of June 30, 2024[65] - The company's share option plan allows for the granting of up to 107,210,480 share options, with vesting over a 5-year period[69] - The total number of unexercised share options as of June 30, 2024, is 5,100,000, with each director holding options ranging from 200,000 to 2,000,000 shares[70] - The company adopted a post-IPO share incentive plan on July 20, 2021, and revised it on October 24, 2023, to only use existing shares for the plan[71] - A total of 8,669,800 share awards were granted under the post-IPO share incentive plan, with 6,687,100 shares remaining unexercised as of June 30, 2024[72] - No share awards were granted to the company's directors as of January 1, 2024, and June 30, 2024[73] - 27,500 share awards vested in 2024, and 1,222,000 share awards are scheduled to vest between 2024 and 2026[74] - 187,200 share awards are scheduled to vest between 2024 and 2025, with 73,000 share awards already expired in 2024[74] - 802,400 share awards are scheduled to vest between 2024 and 2025[74] - 1,080,000 share awards are scheduled to vest between 2024 and 2027[74] - 3,097,800 share awards are scheduled to vest between 2024 and 2027, with 73,600 share awards already expired in 2024[74] - 1,519,500 share awards expired in 2024[75] - 411,000 share awards will vest according to the following schedule: 82,200 in 2024, 123,300 in 2025, and 205,500 in 2026[75] - 232,000 share awards will vest according to the following schedule: 46,400 in 2024, 69,600 in 2025, and 116,000 in 2026[75] - 200,000 share awards will vest according to the following schedule: 40,000 in 2025, 60,000 in 2026, and 100,000 in 2027[75] - 83,000 share awards will vest according to the following schedule: 16,600 in 2025, 24,900 in 2026, and 41,500 in 2027[75] - 234,000 share awards will vest according to the following schedule: 78,000 in 2025, 78,000 in 2026, and 78,000 in 2027[75] - 269,000 share awards will vest according to the following schedule: 53,800 in 2025, 80,700 in 2026, and 134,500 in 2027[75] - The fair value of the granted awards is HKD 70,059,000[76] - The company repurchased a total of 8,883,000 shares during the reporting period at a total cost of HKD 45,526,600[78][79] - The company declared an interim dividend of HKD 0.0888 per share, equivalent to approximately USD 0.0114[81] - The company repurchased shares worth $5.820 million during the first half of 2024[88] - A dividend of$21.576 million was declared during the first half of 2024[88] - The company repurchased 12,659,000 shares in 2023 at a total cost of $61,390k, which were subsequently canceled in March 2024[126] - The company repurchased 8,883,000 shares on the Hong Kong Stock Exchange for a total consideration of HKD 45,527,000 during the six months ended June 30, 2024[127] - The trustee repurchased 8,611,000 shares under the post-IPO share incentive plan for a total consideration of HKD 43,182,000 during the six months ended June 30, 2024, compared to 1,157,000 shares for HKD 4,102,000 in the same period last year[127] Corporate Governance and Compliance - The company adheres to the Corporate Governance Code, with the exception of the separation of Chairman and CEO roles, which are both held by Yang Lin[56] - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, and all directors and relevant employees have confirmed compliance during the reporting period[57] - No directors have interests in any businesses that directly or indirectly compete with the company's operations[58] Financial Instruments and Fair Value - The fair value change of equity investments recognized in other comprehensive income was a loss of$764,000 for the first half of 2024[88] - The exchange rate difference from the translation of foreign operations resulted in a loss of $3.583 million for the first half of 2024[88] - The fair value of financial instruments measured using significant unobservable inputs (Level 3) was USD 5,081,000 as of June 30, 2024[134] - The fair value of derivative financial instruments was USD 365,000 as of June 30, 2024, measured using significant observable inputs (Level 2)[134] - The fair value of trade receivables and bills receivable was USD 14,316,000 as of June 30, 2024, measured using significant observable inputs (Level 2)[134] - The fair value of financial liabilities measured using significant observable inputs (Level 2) was USD 647,000 as of June 30, 2024[137] - Derivative financial instruments are valued at$214 thousand, with no significant observable or unobservable inputs[138] - The fair value of liabilities measured at Level 3 showed changes during the period[139] - Equity investments designated at fair value through other comprehensive income decreased from $1,778 thousand to$1,726 thousand due to exchange adjustments[140] - Financial assets at fair value through profit or loss were purchased for $3,355 thousand during the period[140] - No transfers between Level 1 and Level 2 fair value measurements occurred during the period[140] - The company's financial instruments are categorized into different fair value levels, with no transfers in or out of Level 3[140] - The company's financial instruments are measured at fair value, with no significant changes in valuation techniques or inputs[140] Related Party Transactions - Outstanding balances with related parties