Powerwin Tech (2405) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell 15.9% YoY to US$7.368m; net profit declined 83.3% to US$0.338m amid competition, promotional measures and higher expected credit losses.

• Gross billings to marketers rose to US$450.5m from US$288.4m; more than 2,900 marketers were served as of June 30, 2024.

Financial highlights

• Gross profit decreased 17.9% to US$6.229m from US$7.588m; gross margin was 84.5% vs 86.6%.

• Operating profit declined to US$2.922m from US$4.358m; profit before tax was US$0.297m vs US$2.371m.

• Basic and diluted EPS was US$0.04 cents vs US$0.29 cents; net profit margin fell to 4.6% from 23.1%.

• Administrative expenses fell to US$1.8m from US$2.9m; H1 2024 had no prior-year IPO listing expenses of US$1.057m.

• Expected credit losses on trade receivables rose to US$1.6m from US$0.1m; finance costs increased to US$2.680m from US$2.016m.

Outlook and guidance

• Since June 30, digital-marketing and online-shop SaaS businesses continued to grow gross billings despite intensified digital-marketing competition.

• Priorities include strengthening customer service and share of wallet, upgrading Adorado and Powershopy, expanding marketer coverage and sales channels, and using RPA to improve efficiency.

• Plans include growing overseas presence and localization, including in Southeast Asia and the Middle East, and selectively pursuing strategic cooperation or investment.