Hiwin Technologies Corp. posted a challenging start to 2024, with both revenue and profitability under pressure. The company’s first-quarter sales declined by 4% year-on-year to NT$5.5 billion (US$177.5 million), reflecting broader market challenges. This downturn marks a continuation of the company’s difficulties, with sales consistently softening over the past few quarters.
Operating performance also showed signs of strain. Gross profit for the quarter decreased by 9% compared to the same period last year, totaling NT$1.59 billion (US$51.3 million). The gross margin slipped to 28.9%, down from 30.4% in the previous year, highlighting increasing cost pressures.
Despite efforts to manage operating expenses, which fell by 11% quarter-on-quarter, Hiwin’s operating profit was down by a stark 30% year-on-year, coming in at NT$400 million (US$12.9 million). The company’s net profit followed a similar downward trajectory, shrinking by 11% compared to Q1 2023.
Looking ahead, Hiwin faces the challenge of stabilizing its revenue streams and improving profitability amid an uncertain economic environment. The company will need to address these headwinds if it is to regain momentum in the coming quarters.
