W-Scope Chungju Plant (393890) Q4 2024 earnings summary

Executive summary

• Revenue in 4Q24 dropped sharply to KRW 17.5bn, down 74.7% year-over-year and 48.0% quarter-over-quarter.

• All profitability metrics turned negative, with gross, operating, and net profit margins deeply in the red.

• Significant inventory adjustments in the EV segment and delayed micro-mobility shipments impacted results.

Financial highlights

• Gross profit fell to -KRW 44.0bn (margin -251.4%), a steep decline from -KRW 14.7bn in 3Q24.

• Operating profit dropped to -KRW 48.4bn (margin -276.5%), worsening from -KRW 19.4bn in 3Q24.

• Net profit was -KRW 51.7bn (margin 295.4%), compared to -KRW 21.0bn in 3Q24.

• EBITDA turned negative at -KRW 33.8bn (margin -193.1%).

• CAPEX increased to KRW 175.0bn, up 34.8% year-over-year.

Outlook and guidance

• 1Q25 expects micro-mobility shipments to begin and continued inventory control in EV.

• Management aims to promote new products, diversify customers, and implement cost reduction strategies.

• 2025 goals include building global competitiveness and winning long-term agreements.