This month, Shenzhen-based smart home solutions provider VeSync officially went private, delisting from the Hong Kong Stock Exchange at a 33.3% premium. The move marked the end of a six-month-long retreat from public markets.
Founded in 2011 by 38-year-old Yang Lin, VeSync began with smart outlets and other small appliances. Over time, it evolved into a global brand offering a wide range of smart home and kitchen products. The company made its market debut in Hong Kong in 2020.
Yet the delisting appears to be a reset, not a retreat.
From launching in a basement to dominating Amazon niche categories, VeSync reached USD 650 million in revenue in 2024. Despite this strong performance, the company chose to go private, likely in response to mounting pressure for short-term profitability and the high costs associated with being publicly traded.
Delisting, it seems, was just the opening move. According to VeSync, the bigger game is only beginning, and it’s one that calls for more flexibility to scale further.
An uncommon retreat at a high point
In 2011, Yang started VeSync in a basement somewhere in the US, long before the smart home category took off. Spotting an opportunity early, the company initially focused on small appliances like kitchen scales and smart outlets.
The breakthrough came in 2012 with the launch of its first brand, Etekcity. Within three months, its smart body fat scale reportedly topped Amazon’s category rankings, thanks to accurate data tracking and aggressive pricing.
A year later, Yang established the company’s headquarters in Shenzhen and began expanding its product lines. Today, VeSync’s key brands include:
- Levoit, specializing in air purifiers and humidifiers.
- Cosori, focused on air fryers and coffee machines.
- Etekcity, centered on health monitoring and personal care.
- Pawsync, a newcomer targeting the smart pet device market.
In 2020, VeSync went public in Hong Kong, but its first years as a listed company were bumpy. From 2020 to 2022, revenues rose, but profitability did not. In 2022, it posted net losses of USD 16.28 million, largely due to rising supply chain costs.
By 2023, the tide began to turn. In 2024, the company reported USD 650 million in revenue, up 11.5% year-on-year, and a net profit of USD 93 million, achieving double-digit growth.
So why go private now?
In its delisting announcement, VeSync cited the multifaceted benefits of privatization for both shareholders and the company. In a challenging climate marked by geopolitical tensions and a low-liquidity market, going private offered investors a premium exit.
For VeSync, continued listing no longer aligned with its strategy. Delisting means fewer disclosure requirements and less pressure for quarterly performance, giving the company room to focus on long-term goals.
“At the beginning of 2025, we are faced with numerous challenges, including heightened geopolitical tensions and the intensification of tariff barriers,” VeSync noted in its 2024 annual report.
Over 70% of VeSync’s revenue comes from North America, where shifting tariff policies have significantly raised compliance costs. Operating privately gives the company more leeway to adapt overseas strategies without the regulatory burden.
Public markets have also failed to fully capture the value of cross-border e-commerce brands. VeSync went public in 2020 with a valuation of over HKD 26 billion (about USD 3.3 billion). However, uneven earnings and stock volatility dragged its market cap down to HKD 8 billion (USD 1 billion) in 2022, and just HKD 6.35 billion (USD 810.1 million) by the time of its delisting.
A bruising chapter on the Hong Kong exchange
VeSync’s departure from the stock market bucks the conventional startup arc, where rising earnings usually herald further capital expansion.
The decision sent ripples through the cross-border e-commerce industry.
For companies in this space, going public has long been seen as a milestone not just for raising funds but also for enhancing governance and brand credibility. Yet public markets can be unforgiving.
Compared with peers listed in A-shares or in the US, VeSync’s valuation fell short. Anker, listed in China’s A-share market, boasts a market cap exceeding RMB 50 billion (USD 7 billion). Ugreen, traded on the ChiNext board, is valued around RMB 18 billion (USD 2.5 billion). Sailvan Times once hit RMB 15 billion (USD 2.1 billion) and still trades above RMB 8 billion (USD 1.1 billion).
Meanwhile, small appliance rival SharkNinja, listed in the US, has benefited from investor enthusiasm for consumer brands, reaching a valuation high of USD 16 billion this year.
This shift signals a new phase for cross-border e-commerce: one defined by higher investment requirements and slower returns. VeSync, like many top Amazon sellers, grew rapidly during boom years but now faces stiffer competition and the need to build deeper moats.
Loctek, for example, is investing heavily in overseas warehouses and smart home products. These are long-term plays that may not immediately translate to profit, showing up instead as high costs and low short-term returns in earnings reports.
VeSync is charting a similar course. The company is ramping up investment in TikTok content channels, growing its offline retail footprint, and expanding further into Europe. These efforts demand both time and fresh capital.
Whether VeSync remains private or pursues a new listing in another market, one thing is clear: delisting was only its first move. The real breakthrough may still lie ahead.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Ou Xue for 36Kr.