Financial Performance - In the first half of 2022, the company's revenue was approximately $223.3 million, representing a growth of about 12.0% compared to $199.3 million in the same period of 2021[17]. - The gross profit for the first half of 2022 was approximately $87.6 million, slightly down by about 1.1% from the previous year[17]. - The net profit attributable to the parent company was approximately $15.5 million, a decrease of about 51.6% compared to $32.0 million in the first half of 2021[17]. - Total revenue for the first half of 2022 was approximately $223.3 million, an increase of about 12.1% compared to $199.3 million in the first half of 2021[19]. - Revenue from North America was approximately $171.9 million, an increase of about 7.4% from $160.2 million in the previous year[21]. - Revenue from Europe increased approximately 28.1% year-over-year, driven by sales growth in Spain, Germany, and the UK[21]. - The company's profit attributable to owners for the six months ended June 30, 2022, was approximately $15.5 million, a decrease from $32.0 million for the same period in 2021[33]. - The pre-tax profit for the period was $16.466 million, a decrease from $36.982 million in the previous year, indicating a decline of approximately 55.5%[74]. - Basic earnings per share for the period were 1.37 cents, down from 2.75 cents in the same period of 2021[74]. - The company reported a profit of $15,480 thousand for the six months ended June 30, 2022[77]. - The total comprehensive income for the period was $12,823 thousand, reflecting a decrease due to foreign exchange differences[77]. Sales and Market Performance - The number of activated devices on the VeSync app reached approximately 3.5 million as of June 30, 2022, an increase of about 25% from approximately 2.8 million as of December 31, 2021[13]. - The sales of humidifiers grew over 100% year-on-year, with the product achieving the 1 market share on Amazon[14]. - Non-Amazon channel revenue increased by approximately 182% year-on-year, rising from about 5.4% of total revenue in the first half of 2021 to about 13.7% in the first half of 2022[16]. - Sales in the European market increased by approximately $9 million, or about 28.1%, compared to the first half of 2021[16]. - The overall conversion rate on Amazon's US site grew by about 19% in the first half of 2022 compared to the same period in 2021[16]. - The Levoit air purifier ranked first in the US market in both sales volume and sales revenue according to NPD Group statistics[13]. - Revenue from Levoit and Cosori brands increased to approximately $197 million for the six months ended June 30, 2022[47]. Expenses and Costs - Sales and distribution expenses increased approximately 24.4% to about $37.7 million from $30.3 million in the previous year, driven by increased marketing and advertising expenses[26]. - Administrative expenses rose approximately 37.7% to about $31.0 million from $22.5 million, mainly due to increased R&D expenses for product upgrades and new products[28]. - Financial costs increased from approximately $0.4 million to about $0.9 million, primarily due to higher bank loan interest[30]. - The cost of goods sold for the six months ended June 30, 2022, was $102,696,000, compared to $84,327,000 in 2021, reflecting a significant increase[104]. Assets and Liabilities - As of June 30, 2022, the total bank borrowings amounted to approximately $38.9 million, an increase from $34.9 million as of December 31, 2021[35]. - The company's cash and cash equivalents decreased to $94,176 thousand, down 25.5% from $126,659 thousand as of December 31, 2021[75]. - Total liabilities remained stable with current liabilities at $131,910 thousand, slightly down from $132,816 thousand as of December 31, 2021[76]. - The total inventory as of June 30, 2022, was $124,711,000, a decrease of 3% from $128,547,000 as of December 31, 2021[117]. - Trade receivables as of June 30, 2022, amounted to $118,659,000, an increase of 11.9% from $106,019,000 as of December 31, 2021[119]. Corporate Governance and Structure - The company has a significant ownership structure, with directors and key executives holding approximately 67.84% of the company's equity, totaling 788,909,200 shares[55]. - The company has maintained compliance with corporate governance codes, ensuring effective internal control measures and high standards of ethics and transparency[53]. - The company is committed to reviewing and considering the separation of the roles of Chairman and CEO to ensure appropriate arrangements in response to changing circumstances[53]. - The company has maintained the public float as required by the listing rules throughout the reporting period[70]. Future Plans and Investments - The company plans to allocate 15% of the net proceeds (approximately HKD 249.4 million) for R&D of new products and upgrades, with a timeline for utilization by December 2023[50]. - The company aims to expand its market share in key regions, including North America, Europe, and Japan, with a focus on increasing brand awareness and sales channels[48]. - The company has taken measures to mitigate the impact of COVID-19, including enhancing health protocols and ensuring employee vaccinations[45]. - The company plans to acquire or collaborate with companies in the data technology sector, allocating 15% of total funds, which equals HKD 249.4 million[51]. Shareholder Information - The company repurchased a total of 2,165,000 shares at a total cost of HKD 15,963,038.07, with a highest price per share of HKD 8.16 and a lowest price of HKD 6.67[72][71]. - The company declared a final ordinary dividend of HKD 0.064 per share for the year ended December 31, 2021, totaling approximately $19,071,000, compared to $18,561,000 for the previous period[113]. - The total remuneration paid to key management personnel amounted to $1,017,000 for the six months ended June 30, 2022, down from $1,071,000 in the same period of 2021, representing a decrease of approximately 5%[123].
VESYNC(02148) - 2022 - 中期财报