HIGEN Motor (160190) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 was KRW 75.9 billion, down 2% year-over-year, with an operating loss of KRW 369 million and a net loss of KRW 1.09 billion, reversing prior year profits.

• Gross profit margin declined as cost of sales remained high amid stagnant sales and increased R&D investment.

• The company maintains a strong financial position with a debt ratio of 75.8% and a current ratio of 172.7%.

• Major investments were made in expanding production capacity and R&D for new business areas, including robotics and EV mobility.

Financial highlights

• FY2024 revenue: KRW 75.9 billion (down from KRW 77.2 billion in FY2023).

• Operating loss: KRW 369 million (vs. operating profit of KRW 4.3 billion in FY2023).

• Net loss: KRW 1.09 billion (vs. net profit of KRW 2.65 billion in FY2023).

• Cash and cash equivalents at year-end: KRW 10.2 billion.

• R&D expenses increased to KRW 3.57 billion, 4.7% of sales.

Outlook and guidance

• Management expects sales growth and improved profitability in 2025 as new product lines in robotics actuators and EV mobility enter mass production.

• The company plans to continue investing in R&D and production capacity to support business diversification.