1. What Happened at Newkizon?
Newkizon announced its 2025 first-half earnings on August 14, 2025. While sales surpassed expectations at 24.1 billion won, a net loss of 3 billion won shocked the market. The stock price plummeted following the announcement.
2. What Caused the Net Loss?
The primary reason for the net loss is one-time costs related to the SPAC merger. However, high inventory levels and fierce market competition also contribute to profitability pressures.
3. What Does the Future Hold for Newkizon?
In the short term, Newkizon needs to focus on improving profitability by eliminating merger-related costs and improving inventory management efficiency. In the medium to long term, the company must secure growth drivers through the expansion of its ‘Newkiki’ brand mall and new product lines leveraging global character IPs.
4. What Should Investors Do?
- Short-term investors: Caution is advised due to high stock volatility. It’s best to make investment decisions after confirming the elimination of one-time costs and signs of profitability improvement.
- Long-term investors: Focus on the company’s growth potential and continuously monitor inventory management, profitability improvement, and new business performance.
Q: What was Newkizon’s revenue for the first half of 2025?
A: Newkizon’s revenue for the first half of 2025 was 24.1 billion won.
Q: Why did Newkizon record a net loss?
A: One-time costs associated with the SPAC merger were the main cause. High inventory and increased market competition also played a role.
Q: Should I invest in Newkizon?
A: Short-term investment requires caution, while long-term investment should be considered based on the company’s growth potential. Continuous monitoring of inventory management, profitability improvement, and new business performance is essential.