HTC Corp. (2498) said its board approved the company’s financial report for the first three quarters at a Nov. 2 meeting. For the period, cumulative consolidated operating revenue reached NT$2.03 billion, while net loss after tax came to NT$303 million, or a loss per share of NT$0.36.
Revenue reached NT$2.03 billion in the first three quarters
HTC reported gross profit of NT$840 million for the first three quarters of year 115, with gross margin at 41.36%. The figures showed that after direct sales costs were deducted, the company’s products and technology services maintained their gross margin level. Even so, the overall revenue base remained limited, and fixed selling, administrative, and research spending continued to weigh on profitability.
Operating loss stood at NT$1.642 billion
Operating expenses put clear pressure on HTC’s core business during the first three quarters, leading to an operating loss of NT$1.642 billion and an operating margin of about -80.87%. With support from non-operating income and expenses, pre-tax net loss narrowed to NT$248 million. Net loss attributable to owners of the parent was NT$303 million, and basic loss per share was NT$0.36.
Assets, liabilities and equity as of Sept. 30
As of Sept. 30 in year 115, HTC’s total assets were NT$42.358 billion and total liabilities were NT$15.674 billion. Equity attributable to owners of the parent at the end of the period was NT$26.684 billion. Based on the figures in the report, liabilities accounted for about 37% of total assets.
Board approves new share issuance tied to employee stock options
The board also approved a capital increase through the issuance of 935,200 new common shares following the exercise of employee stock option warrants. The subscription prices were set at NT$35.5 and NT$35.05.
Using shares outstanding as the basis, the capital increase represented less than 0.12% of total share capital, indicating a relatively limited dilution effect on existing shareholders. According to the source article, the move was mainly intended to support the company’s employee stock option program and retain key research, development, and management talent.
