Product Recall A Near-term Negative for Vesync; Cutting FVE to HKD 6.80

Vesync focuses on online marketing and sales of self-designed and self-developed small home appliances and smart home devices, mainly through Amazon (more than 90% of sales in 2021). According to Frost & Sullivan, Vesync ranked third in terms of retail sales generated through Amazon and fifth through all online channels in 2019 in the U.S., among small home appliances retailers. Its air purifiers ranked first and air fryers ranked second in their respective categories in 2019, in terms of retail sales generated through Amazon in the U.S. North America contributed more than 75% of Vesync’s sales in 2021.