VIVIC CORP.

VIVIC CORP. Annual Report - 2023 Performance Breakdown
Here's what everyday investors need to know about this year's results, risks, and whether VIVIC deserves a spot in your portfolio.

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1. What Does VIVIC Do? (And Did They Have a Good Year?)

VIVIC sells budget-friendly smart home gadgets (security cameras, thermostats) and recently pivoted to luxury yachts after abandoning failed boat ventures.

2023 Highlights:

• Smart Home Business: Sales jumped 15% to $1.2 billion (their reliable cash cow).
• Yacht Experiment: Generated $5.95 million in sales (up from $160k last year) with 10 orders booked for 2024.
• Red Flag: 26% of yacht sales ($1.52M) came from deals with sister companies or insiders—not independent buyers.

The Big Picture: Smart homes are thriving, but the yacht division feels like a side project propped up by internal deals.

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2. Financial Snapshot: Growth vs. Reality

• Revenue:
  • Smart Homes: $1.2B (+15%)
  • Yachts: $5.95M (but $1.52M from related parties)
• Profit: $90M (-5%) due to heavy spending on marketing and supply chain fixes.
• Yacht Margins: Only 25% profit margin ($1.52M kept from $4.43M production costs).
• Cash Crisis: Just $41,903 left (down 99.8% from $220M last year) and $620k more owed than they can pay in the next year.

TL;DR: Smart homes fund everything. Yachts are a low-margin experiment with questionable sales.

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3. Wins vs. Mistakes

✅ Wins:

• SolarCam security camera sold out twice.
• Expanded retail presence to 500+ new stores.
• Landed first 10 yacht orders after years of failed ideas.

🚩 Mistakes:

• 65% of smart home materials come from just 2 suppliers (high risk).
• Auditors warn of "substantial doubt" about survival due to $5.75M total losses.
• Leadership turmoil: 2 CEOs quit in 12 months. New CFO faces a cash emergency.

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4. Can They Stay in Business?

• Cash: $41,903 (barely enough to cover a small house).
• Debt: $300M (unchanged from last year).
• Auditor Warning: Financial statements include a formal survival risk alert.
• Lifelines: Relying on loans from insiders and investors—no guarantees.

Takeaway: Walking a tightrope with no safety net.

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5. Top Risks to Watch

• Yacht Sales Uncertainty: 1 in 4 yacht dollars come from insider deals.
• Cash Crunch: Could miss payments within months without emergency funding.
• Taiwan Tensions: All manufacturing is in Taiwan—China conflict could disrupt everything.
• One Shareholder Rules All: A single investor controls 60% of voting power.

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6. How They Compare to Competitors

• Smart Homes: Cheaper than Amazon/Google but less brand recognition.
• Yachts: Newcomer vs. established brands. Their 25% margins are half the industry standard.

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7. 2024 Forecast: Make-or-Break Year

• Launch facial recognition doorbell to boost smart home sales.
• Expand yacht sales in Asia through new Taiwan subsidiaries.
• Critical Goal: Convert 10 yacht orders into $5M+ sales without insider deals.
• Survival Requirement: Must secure funding within 6 months to avoid collapse.

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Should You Invest? The Bottom Line

Pros:

• Smart home business is growing steadily.
• Yacht division shows early (if murky) progress.

Cons:

• Extreme Financial Risk: $41k cash, auditors doubt survival, mounting losses.
• Yacht Strategy Mismatch: Selling luxury boats in a market that prefers budget options.
• Zero Dividends: All profits get reinvested (or cover losses).

Final Verdict:
VIVIC is a high-stakes gamble, not a stable investment. The smart home business is solid, but the yacht pivot and cash crisis add dangerous volatility. Only consider this if you’re comfortable with:

• Potential total loss
• Shareholder dilution from new stock options
• A single investor overriding majority decisions

Think of VIVIC as a ticking clock: Can they turn yacht hype into real sales and secure funding before time runs out?

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