Executive Summary
Healthconn Corp posted Q2 2024 revenue of 298.6 million TWD, down 51.9% year over year from the prior-year quarter, with gross profit of 53.7 million and a gross margin of approximately 18%. The company reported an operating loss of 4.19 million and an EBITDA of 2.02 million, yielding an EBITDA margin near 0.68%. Net income reached 0.11 million, translating to a thin net margin of about 0.036% for the quarter, while basic earnings per share stood at 0.0023 TWD. Despite a sharp revenue decline, the company delivered a modest year-over-year improvement in net income, supported by otherwise positive non-operating items and a favorable tax line on a quarterly basis. Cash flow metrics remained challenging: operating cash flow was negative (-14.7 million), and free cash flow was negative (-17.3 million), contributing to a net decrease in cash for the period; however, the balance sheet reflects robust liquidity with significant cash and short-term investments, suggesting substantial headroom for strategic investments or working capital optimization. The divergence between reported cash flow weakness and a solid cash position warrants close attention to working capital dynamics and potential one-off effects in the quarter.
Key Performance Indicators
Key Insights
Revenue: 298.57m (YoY -51.89%, QoQ 0.00%). Gross Profit: 53.70m (Gross Margin ~17.99%, YoY -51.42%). Operating Income: -4.19m (Margin -1.40%, YoY -0.35%). EBITDA: 2.02m (EBITDA Margin ~0.68%). Net Income: 0.11m (Net Margin ~0.04%, YoY +101.27%). EPS: 0.0023, Diluted 0.0023 (YoY EPS +101.21%). Cash Flow: Operating cash flow -14.70m, Free cash flow -17.32m; Net change in cash -140.36m. Balance Sheet: Total assets 1,413.64m; Cash & equivalents 368.94m; Short-term investments 301.61m; Total curr...
Financial Highlights
Revenue: 298.57m (YoY -51.89%, QoQ 0.00%). Gross Profit: 53.70m (Gross Margin ~17.99%, YoY -51.42%). Operating Income: -4.19m (Margin -1.40%, YoY -0.35%). EBITDA: 2.02m (EBITDA Margin ~0.68%). Net Income: 0.11m (Net Margin ~0.04%, YoY +101.27%). EPS: 0.0023, Diluted 0.0023 (YoY EPS +101.21%). Cash Flow: Operating cash flow -14.70m, Free cash flow -17.32m; Net change in cash -140.36m. Balance Sheet: Total assets 1,413.64m; Cash & equivalents 368.94m; Short-term investments 301.61m; Total current assets 1,081.04m; Total liabilities 488.27m; Total stockholders’ equity 925.38m; Net debt -80.23m (net cash). Liquidity: Current ratio 2.67, Quick ratio 2.36, Cash ratio 0.912.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
298.57M |
-51.89% |
0.00% |
| Gross Profit |
53.70M |
-51.42% |
0.00% |
| Operating Income |
-4.19M |
-0.35% |
0.00% |
| Net Income |
106.50K |
101.27% |
0.00% |
| EPS |
0.00 |
101.21% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-1.4%
operatingCashFlowPerShare
$-0.32
freeCashFlowPerShare
$-0.38
priceEarningsRatio
3050.47
Management Commentary
No earnings call transcript was provided in the data set. Unable to extract management quotes or thematic highlights from an accompanying call. The qualitative assessment below relies on reported results and disclosed metrics.
Forward Guidance
Management did not publish formal guidance within the provided data set. Given the revenue decline in Q2 2024 and the company’s ongoing investments in health management services and related platforms, the key near-term questions relate to margin recovery and cash generation. Investors should monitor: (1) trajectory of revenue stability or rebound, particularly in core Healthconn services and any recurring revenue streams; (2) working capital evolution and inventory/receivables management to convert operations into positive cash flow; (3) progress on cost control, SG&A efficiency, and potential operating leverage as scale increases; (4) any new contracts, partnerships, or product launches under Smart Health 365 or related health-management offerings; and (5) changes in regulatory or reimbursement environments that impact service pricing or utilization. If management communicates a credible plan to restore operating margins and generate sustaining FCF, the stock could re-rate, given the balance sheet strength and ample liquidity supporting capex or strategic initiatives.