Financial Performance - Revenue for the year ended December 31, 2023, was $585,484 thousand, representing a 19.4% increase from $490,378 thousand in 2022[2] - Gross profit for the same period was $274,372 thousand, a significant increase of 92.8% compared to $142,289 thousand in 2022[2] - The gross profit margin improved to 46.9%, up from 29.0%, reflecting a 17.9 percentage point increase[2] - The company reported a profit before tax of $87,472 thousand, recovering from a loss of $21,841 thousand in the previous year[3] - Net profit attributable to shareholders for the year was $77,481 thousand, compared to a loss of $16,276 thousand in 2022[2] - Basic and diluted earnings per share were both 6.92 cents, a recovery from a loss of 1.44 cents per share in the previous year[5] Revenue Breakdown - Revenue from North America was $429,936,000 in 2023, up from $366,182,000 in 2022, indicating a growth of 17.4%[16] - Revenue from Europe increased to $125,741,000 in 2023 from $107,946,000 in 2022, reflecting a growth of 16.5%[16] - Revenue from Asia rose significantly to $29,807,000 in 2023, compared to $16,250,000 in 2022, marking an increase of 83.6%[16] - The company generated approximately $444,124,000 in revenue from a major customer, up from $405,097,000 in the previous year[18] Assets and Liabilities - Total current assets increased to $505,887 thousand from $396,065 thousand in 2022[6] - Total current liabilities rose to $228,248 thousand, up from $168,252 thousand in the previous year[7] - The net asset value increased to $327,516 thousand from $277,457 thousand in 2022[9] - Non-current liabilities decreased to $9,370 thousand from $11,585 thousand in the previous year[9] Expenses and Costs - Employee benefits expenses, excluding directors and key management personnel, rose to $76,859,000 in 2023 from $67,595,000 in 2022, with salaries and wages increasing to $61,895,000 from $51,538,000[24] - Research and development costs increased to $34,161,000 in 2023 from $29,954,000 in 2022, reflecting a focus on innovation[26] - The cost of goods sold increased to $259,433,000 in 2023 from $235,781,000 in 2022, reflecting higher sales volume[26] - Selling and distribution expenses rose by approximately 11.2% to about $99.2 million in 2023, driven by increased marketing and warehousing costs[62] Taxation - The total income tax expense for the year was $10,042,000 in 2023, compared to a tax credit of $5,524,000 in 2022, indicating a significant change in tax obligations[32] - The effective tax expense for the group was $10,042,000 in 2023, compared to a tax benefit of $5,524,000 in 2022[34] Cash Flow and Dividends - Net cash flow from operating activities for 2023 was approximately $106.1 million, a significant increase from $1.3 million in 2022, supporting the development of user-centered innovative products and market expansion[53] - The total cash dividend for the period ending June 30, 2023, was approximately HKD 62,679,000 (about $8,000,000), with HKD 22,811,000 (about $2,915,000) distributed during the year[34] - The proposed total dividend for the year ending December 31, 2023, is approximately HKD 179,904,000 (about $23,000,000), subject to shareholder approval[35] Market and Product Development - The company has focused on enhancing product development capabilities and expanding non-Amazon channels over the past three years[47] - The company continues to invest in product development and innovation, which has put pressure on short-term operating profit margins but is expected to yield long-term returns[47] - New product launches included five new categories and several upgraded models, enhancing the brand's market share and addressing diverse consumer needs[50] - The company plans to launch over ten new products in 2024, including smart air purifiers, smart humidifiers, and multifunctional smart air fryers[80] Corporate Governance - The company has established a compensation committee to review and recommend compensation policies for all directors and senior management[77] - The company has maintained compliance with all applicable corporate governance codes during the reporting period, except for the separation of the roles of Chairman and CEO, which are currently held by the same person, Yang Lin[87] - The Audit Committee, composed of three independent non-executive directors, has reviewed and recommended the approval of the audited consolidated financial statements for the year ending December 31, 2023[88] Employee and Operational Insights - The group has a total of 1,296 employees as of December 31, 2023, with 1,164 located in China, 125 in the United States, and 7 in other regions[77] - The company has repurchased a total of 12,659,000 shares during the reporting period at a total cost of HK$61,390,430[84] Future Outlook - The company aims to enhance its product portfolio and expand its geographical reach, particularly in the European market for Cosori and Levoit products[80] - The company is committed to developing the Ve Sync app into a home IoT platform and increasing brand awareness through enhanced marketing efforts[80]
VESYNC(02148) - 2023 - 年度业绩