VEEE Latest Report

Performance of the Quarterly Report

At the end of 2024, Twin Vee PowerCats (stock code: VEEE) had a total operating revenue of RMB18,840,035, a 77.68% decrease from RMB84,450,010 at the end of 2023. This significant decline indicates that the company is facing market challenges or operational issues, leading to a significant reduction in revenue, which may affect the overall financial health of the company.

Key Data in the Quarterly Report

1. The total operating revenue in 2024 was RMB18,840,035, a 77.68% year-on-year decrease, indicating significant difficulties in generating revenue.

2. The gross margin was negative 5% in 2024, compared to positive 10% in 2023, reflecting the impact of low production efficiency and weakening market demand.

3. The operating expense ratio increased from 46% to 96%, indicating a significant impact of high fixed costs on the company's financial situation.

4. Due to a 57% decrease in operating revenue, the company had to handle asset impairment of US$1.674 million.

5. The saltwater outboard market decreased by 18.71% in 2023, further exacerbating the company's sales pressure.

Peer Comparison

1. Industry-wide analysis: If other companies in the same industry also face similar revenue declines, it may indicate a general downturn in the industry; conversely, if the industry as a whole performs well, it may highlight Twin Vee PowerCats' operational issues.

2. Peer evaluation analysis: Twin Vee PowerCats' operating revenue decreased significantly, while the revenue of other companies in the same industry decreased by 22.24% to 39.68% during the same period, showing a trend of intensified competition and weakening market demand.

Summary

Twin Vee PowerCats faced a significant decrease in operating revenue in 2024, mainly due to weakening market demand, declining product competitiveness, operational strategy mistakes, and high fixed costs. Compared with its peers, the company's operational issues are more pronounced, and measures need to be taken to improve market performance.

Opportunities

1. With the implementation of the new government's economic policies, the retail market environment is expected to improve in 2024, which may stimulate the demand for recreational vehicles and boats.

2. The company plans to launch new product lines, including single boats, to meet market demand and expand its business scope, hoping that this strategy can improve its market position.

3. Twin Vee acquired the AquaSport brand in 2023 and plans to launch new models in 2024, enhancing market competitiveness.

Risks

1. Low production efficiency may continue to affect gross margin, leading to a deterioration in the company's financial situation.

2. High fixed costs make the operating expense ratio increase when revenue decreases, putting pressure on the company's finances.

3. Uncertainty in market demand may intensify competition pressure, affecting the company's future sales performance.

4. If the pandemic or other unforeseen events affect production and sales again, it may lead to further decreases in total operating revenue.