SKE company Sikary posted 540 million yuan in revenue last year, missed performance targets, and set

Recently, Yinghe Technology released its 2022 annual report, which disclosed the performance of its subsidiary Sikary. The annual report shows that Sikary achieved a revenue of 540 million yuan (RMB, the same below) and a net profit of 85.35 million yuan in 2022.

It is reported that Sikary owns the electronic cigarette brands Sikary and SKE. According to NielsenIQ data, SKE ranks in the top 10 in the UK electronic cigarette market.

The annual report indicates that according to the "Capital Increase Agreement" and the "Supplementary Agreement," Sikary promised a net profit of no less than 200 million yuan for 2022, but ultimately only achieved a profit of 85.35 million yuan, failing to meet its performance commitment for the year. The report disclosed that the reason for not meeting the performance commitment was due to changes in domestic policies.

Additionally, according to the announcement from Shenzhen Yinghe Technology Co., Ltd. regarding the investment of its subsidiary to establish a UK subsidiary, Sikary will set up a wholly-owned subsidiary in Manchester, UK, with a registered capital of 250,000 pounds (approximately 2 million RMB), focusing on the UK and European markets.

It is understood that Manchester is a well-known hub for electronic cigarette distribution channels in the UK, gathering many Chinese electronic cigarette brands such as VAPORESSO, VOOPOO, ELFBAR, SMOK, GEEK BAR, and others.