Zinwell Corporation (2485) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, was NT$2,232 million, down 51% year-over-year from NT$4,558 million.

• Net loss for the same period was NT$481 million, compared to net income of NT$60 million year-over-year.

• Gross margin turned negative at -7% for the nine months, compared to 9% in the prior year.

• Significant impairment losses on intangible assets and R&D prepayments impacted results.

Financial highlights

• Operating loss for the nine months was NT$572 million, versus an operating loss of NT$150 million year-over-year.

• Basic and diluted EPS for the nine months was -NT$1.51, compared to NT$0.19 year-over-year.

• Cash and cash equivalents at September 30, 2024, were NT$2,082 million, up from NT$1,689 million a year ago.

• Total assets decreased to NT$7,405 million from NT$9,117 million year-over-year.

• Total liabilities dropped to NT$1,549 million from NT$2,547 million year-over-year.

Outlook and guidance

• No dividends will be distributed for FY2023 due to the annual net loss.

• The group will continue to evaluate ongoing R&D projects and adjust contract terms as needed.