Point Mobile, Sales of 49.4 Billion KRW... 20.5% Decrease Year-on-Year

Derivative Valuation Losses Due to Stock Price Increase
“Accounting Loss Without Cash Outflow”

[Asia Economy Reporter Kim Heeyoon] Point Mobile recorded sales of 49.4 billion KRW in annual performance last year.

On the 26th, Point Mobile announced through the Financial Supervisory Service's electronic disclosure system that it recorded sales of 49.4 billion KRW and operating profit of 969.48 million KRW in annual performance last year. This represents a decrease of 20.5% in sales and 89.2% in operating profit compared to the previous year.

Point Mobile explained, "A derivative product valuation loss of 21.6 billion KRW occurred due to the stock price increase at the end of December last year," adding, "This is an accounting valuation loss without cash outflow, so it does not affect the company's liquidity, and when convertible bonds are converted into stocks, the face value of the convertible bonds along with the loss will be fully converted into capital."

They continued, "There were also impacts from restrictions on business activities due to the COVID-19 pandemic and delays in large order projects," adding, "Additionally, operating losses expanded due to profit decreases caused by exchange rate declines."

Earlier, Point Mobile signed a contract worth 220 billion KRW with Amazon last year and recorded a market capitalization of 90 billion KRW through an initial public offering (IPO). Regarding this, North Coast Research, a US market research firm, stated in a report last month, "The short-term risk for Zebra, the global number one in the industrial PDA market, is a slowdown in growth due to Point Mobile," and "Amazon recognizes only Point Mobile and Zebra as mobile device suppliers, and considering the contract with Aldi (Europe's number one supermarket company), Point Mobile is expected to easily exceed 110 billion KRW in sales this year."

A Point Mobile official said, "As Amazon sales alone reached 14 billion KRW in the first quarter, we plan to focus on business progress in line with market expansion in the future based on consolidated financial soundness."