Revenue Performance - Revenue for the year ended December 31, 2022, was $490,378 thousand, representing an 8.0% increase from $454,250 thousand in 2021[2] - Total revenue for the year ended December 31, 2022, was approximately $405.1 million, an increase from $338.5 million in 2021, primarily from sales to a major retail customer[17] - The total revenue for 2022 was $490.4 million, compared to $454.3 million in 2021, reflecting a growth of approximately 8%[18] - Revenue from external customers in North America for 2022 was $366.2 million, up from $358.1 million in 2021, while Europe saw an increase to $107.9 million from $81.0 million[15] - Revenue from non-Amazon channels grew approximately 95.1%, increasing its share of total revenue from about 9% in 2021 to approximately 16.3%[48] - Sales in the European market increased by approximately $26.9 million, or about 33.2%, compared to the same period in 2021[48] Profitability and Loss - Gross profit decreased to $142,289 thousand, down 19.2% from $176,107 thousand in the previous year, resulting in a gross margin of 29.0%, a decline of 9.8 percentage points[2] - The company reported a loss before tax of $21,841 thousand, compared to a profit of $51,009 thousand in 2021, marking a 142.8% decrease[3] - Net loss attributable to equity holders of the parent was $16,276 thousand, a significant decline from a profit of $41,588 thousand in the prior year, reflecting a 139.1% decrease[5] - Basic and diluted loss per share was $(1.44) cents, compared to earnings of 3.68 cents per share in 2021, indicating a 139.1% decline[5] - The company reported a pre-tax loss of $21,841,000 for 2022, compared to a profit of $51,009,000 in 2021[36] - The company reported a loss attributable to equity holders of approximately $16.3 million for the year ended December 31, 2022, compared to a profit of approximately $41.6 million for the year ended December 31, 2021[66] Assets and Liabilities - Total assets less current liabilities decreased to $289,042 thousand in 2022 from $327,991 thousand in 2021[7] - Current liabilities increased to $168,252 thousand from $132,816 thousand in 2021, indicating a rise in short-term obligations[6] - Non-current assets totaled $61,229 thousand, an increase from $45,138 thousand in the previous year[6] - Non-current assets in North America decreased to $5.6 million in 2022 from $6.8 million in 2021, while non-current assets in China increased to $25.3 million from $22.9 million[16] - Trade receivables increased to $149,255,000 in 2022 from $106,398,000 in 2021, with a provision for impairment of $175,000[38] - Trade payables increased to $60,751,000 in 2022 from $37,739,000 in 2021[42] Research and Development - The company engaged in research and development of smart home appliances and devices, primarily manufacturing in China and selling to markets including the USA, Canada, and several European countries[10] - Research and development costs increased significantly to 29,954 thousand USD in 2022 from 17,308 thousand USD in 2021, marking a growth of about 73.3%[25] - The company established a product development and quality control team consisting of 519 employees, accounting for 40.5% of the total workforce[48] Income and Expenses - The company reported other income and gains of $4,042 thousand, up from $1,377 thousand in 2021, indicating growth in additional revenue streams[3] - Other income included bank interest income of $775,000 in 2022, up from $665,000 in 2021, and government grants increased to $2.6 million from $469,000[21] - Sales and distribution expenses rose by approximately 29.6% to about $89.2 million in 2022, driven by increased marketing and advertising expenses to boost market share[59] - Administrative expenses increased by approximately 36.1% to about $69.6 million in 2022, primarily due to higher R&D expenses for product upgrades and new product development[61] - Financial costs increased from approximately $0.8 million in 2021 to about $1.7 million in 2022, mainly due to higher interest on bank loans and other borrowings[63] Taxation - The total tax expense for the year was (5,524) thousand USD, a decrease from 9,421 thousand USD in 2021, indicating a significant reduction in tax liabilities[33] - The company reported a tax expense of $(5,524,000) for 2022, compared to $9,421,000 in 2021[36] - The company’s effective tax rate in China is 25%, with certain subsidiaries qualifying for reduced rates of 15% due to high-tech enterprise status and regional tax incentives[64] - The group’s deferred tax impact contributed to a tax benefit of approximately $5.5 million for the year ended December 31, 2022, compared to a tax expense of approximately $9.4 million for the year ended December 31, 2021[65] Inventory and Impairments - The company’s inventory impairment net amount was 2,028 thousand USD in 2022, up from 1,625 thousand USD in 2021, indicating challenges in inventory management[24] - Inventory provisions increased to $(8,045,000) in 2022 from $(6,017,000) in 2021[38] - The net impairment of trade receivables was recorded at (204) thousand USD in 2022, compared to 172 thousand USD in 2021, indicating a deterioration in receivables quality[24] Market Position and Strategy - Levoit air purifiers ranked first in the US market with a market share of approximately 33% in sales volume and 23% in sales revenue, an increase of about 10 percentage points and 7 percentage points compared to 2021[46] - Levoit humidifiers achieved a year-on-year sales growth of approximately 68%, becoming the second highest in sales revenue in the US market with a market share of about 20.2%[47] - The company faced challenges in 2022, including increased sales costs and inventory reduction by distributors, prompting a strengthening of organizational capabilities[46] - The company aims to enhance product advantages, operational efficiency, and regional expansion capabilities to improve market performance[46] - The company plans to expand its geographical coverage, particularly increasing market share for Cosori and Levoit products in Europe[78] Corporate Governance and Compliance - The company adopted revised Hong Kong Financial Reporting Standards effective January 1, 2022, with no significant impact on financial performance due to the absence of business combinations during the year[12] - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2022, and recommended their approval to the board[86] - The company has adopted the corporate governance code and confirmed compliance with all applicable provisions during the reporting period[83] Shareholder Returns - The company did not declare any final ordinary or special dividends for 2022, compared to 9,274 thousand USD in dividends declared in 2021[35] - The company has not recommended any final dividend for the year ending December 31, 2022[79] - The company repurchased a total of 2,165,000 shares during the reporting period at a total cost of HKD 15,963,038.07, with a price range of HKD 6.67 to HKD 8.16 per share[81][82] Future Outlook - The company aims to enhance its product portfolio in 2023, focusing on smart home devices and plans to launch advanced air purifiers, air humidifiers, dual-basket air fryers, and other new categories[78] - The company is committed to developing the Ve Sync application into a home IoT platform, enhancing consumer engagement[78] - The company will continue to invest in technology to support its product development and quality control capabilities[78]
VESYNC(02148) - 2022 - 年度业绩