Powerwin Tech (2405) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 55.9% YoY to US$3.250m; gross profit declined to US$2.258m and results swung to a US$3.758m net loss. More than 3,000 marketers had been served by June 30, 2025.

• Client budget cuts, competition, tighter margins and higher digital advertising costs pressured profitability; cash and borrowings both decreased, and a July disposal was completed for US$1.95m.

Financial highlights

• Revenue was US$3.250m vs US$7.368m; gross profit was US$2.258m vs US$6.229m, and gross margin fell to 69.5% from 84.5%.

• Operating loss was US$2.382m vs operating profit of US$2.922m; loss before tax was US$4.149m vs profit of US$0.297m.

• Net loss was US$3.758m vs net profit of US$0.338m; basic and diluted EPS was a loss of 0.47 US cents vs earnings of 0.04 US cents.

• Expected credit losses on trade receivables rose to US$2.409m from US$1.576m; administrative expenses increased to US$2.193m from US$1.763m, partly due to staff optimization costs.

• Finance costs declined to US$1.871m from US$2.680m; an income tax credit of US$0.391m compared with US$0.041m, primarily from deferred tax on credit-loss allowances.

Outlook and guidance

• Priorities include improving service quality and customer ROI, investing in AI, data analytics and automation, deepening customer partnerships, and pursuing emerging and niche markets.

• Adorado and Powershopy are intended to use AI, hyper-personalization and real-time data for campaign optimization and tailored experiences; plans also include customized services and targeted campaigns with media partners.

• Plans include sustaining cross-border digital marketing growth, monitoring emerging cross-border industries, and assessing strategic collaboration and investment opportunities.