Vesync (2148) H2 2024 earnings summary

Executive summary

• Revenue grew 11.5% year-over-year to US$652.6 million, with gross profit up 11.7% to US$306.6 million and net profit attributable to owners rising 20.1% to US$93.0 million.

• Gross profit margin remained stable at 47.0%, and profit margin improved by 1.1 percentage points to 14.3%.

• Strong growth in non-Amazon channels (up 29.0%) and significant expansion in North America, Europe, and Asia, with new product launches and increased market share in key categories.

• Major product brands (Levoit, Cosori, Etekcity) achieved leading market positions in the US and Europe, with Levoit air purifiers and humidifiers ranking No. 1 in the US.

• The company is subject to a privatization proposal, offering shareholders a cash or share alternative, pending approval.

Financial highlights

• Revenue: US$652.6 million (+11.5% YoY); Gross profit: US$306.6 million (+11.7% YoY); Net profit: US$93.0 million (+20.1% YoY).

• Basic EPS: US8.64 cents (+24.9% YoY); Diluted EPS: US8.60 cents (+24.3% YoY).

• Operating cash flow: US$144.8 million (vs. US$106.1 million in 2023).

• Gross profit margin: 47.0% (flat YoY); Profit margin: 14.3% (+1.1 p.p. YoY).

• Interim dividend of HK8.88 cents per share paid; no final dividend proposed for 2024.

Outlook and guidance

• Focus on expanding non-Amazon channels, especially TikTok and retail, and deepening market share in Europe.

• Plans to launch new smart home products in 2025, including smart air purifiers, fryers, pet feeders, and fitness scales.

• Continued investment in VeSync App and brand marketing to enhance user engagement and product ecosystem.