HIGEN Motor (160190) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was KRW 18.17 billion, down from KRW 19.35 billion in Q1 2024, with a net loss of KRW 2.43 billion compared to a net profit of KRW 317 million in the prior year.

• Gross profit margin declined sharply, and operating loss widened due to increased SG&A expenses and lower sales.

• The company maintains a strong cash position and continues to invest in R&D, with a focus on robotics and mobility solutions.

Financial highlights

• Q1 2025 revenue: KRW 18.17 billion (down 6.1% year-over-year).

• Operating loss: KRW 2.38 billion (compared to operating profit of KRW 579 million in Q1 2024).

• Net loss: KRW 2.43 billion (compared to net profit of KRW 317 million in Q1 2024).

• Gross margin: 4.4% in Q1 2025, down from 13.0% in Q1 2024.

• Cash and cash equivalents at quarter-end: KRW 9.61 billion.

Outlook and guidance

• The company is targeting growth in robotics, EV, and high-efficiency motor markets, leveraging ongoing R&D and government projects.

• Anticipates increased demand from regulatory changes (IE4 efficiency standards) and expansion into new markets such as India and Southeast Asia.