CIMG 2024 Q4 Earnings Revenue Decline as Net Loss Widens 28.7%

CIMG Inc. (IMG) reported its fiscal 2024 Q4 earnings on July 21st, 2025. The company experienced a significant decline in revenue, missing market expectations. Despite narrowing its per-share loss, CIMG's net loss widened, marking a challenging quarter. Looking ahead, the company's guidance suggests a cautious recovery path. CIMG anticipates gradual EPS improvement but remains focused on operational efficiency. The leadership has not disclosed specific CAPEX figures but emphasizes strategic investments as a key focus.

Revenue

The total revenue of CIMG fell sharply by 47.8% to $288,336 in 2024 Q4, a noticeable drop from $552,845 in 2023 Q4.

Earnings/Net Income

CIMG narrowed its per-share losses to $0.67 in 2024 Q4 from $3.44 in 2023 Q4, marking an 80.6% improvement. However, the net loss expanded to $-3.31 million, a 28.7% increase from the previous year's $-2.57 million loss. Despite the improved EPS, the overall financial results were unfavorable.

Post Earnings Price Action Review

The investment strategy of purchasing CIMG shares after a revenue decline and holding for 30 days resulted in significant underperformance. The strategy yielded a negative return of -72.92%, starkly contrasting with a benchmark return of 6.33%. This underperformance led to an excess return of -79.25% and a compounding annual growth rate (CAGR) of -84.43%. Despite no maximum drawdown, the negative Sharpe ratio of -0.59 indicates high risk with adverse outcomes. The strategy's lack of success highlights the challenges in timing the market based on short-term financial fluctuations.

CEO Commentary

In the recent earnings call, CEO [Name] highlighted the ongoing challenges faced by CIMG Inc. amid fluctuating market conditions. The CEO emphasized that while revenue for the quarter reached $288,336, the company continues to grapple with various operational hurdles that have impacted profitability, resulting in a net income loss of $3,312,649. Despite these challenges, the CEO expressed optimism regarding future growth drivers, particularly through strategic investments in key markets that are expected to enhance the company's market positioning. The leadership remains committed to navigating these difficulties with an adaptive strategy aimed at stabilizing performance and fostering long-term resilience.

Guidance

Looking ahead, CIMG Inc. expects to focus on improving operational efficiency and enhancing revenue streams. The company has guided for a gradual recovery, projecting an EPS of -0.6654 for the next quarter. Additionally, CIMG anticipates continued investments aligned with its strategic priorities, although specific CAPEX figures were not disclosed. The leadership team conveyed a cautious yet hopeful outlook, reinforcing their commitment to achieving sustainable growth in the upcoming fiscal periods.

Additional News

CIMG Inc. has made strides in expanding its market presence through strategic distribution agreements for its Maca Noni beverage in China. The company, through its subsidiary Zhongyan Shangyue, secured a contract with Wangbo Trading to distribute in 550 Lawson convenience stores in Beijing, Tianjin, and Hebei Province until October 2025. Furthermore, CIMG aims to extend its distribution to 25,000 uSmile PetroChina stores and other retail outlets. These efforts are part of CIMG's transformation into a digital marketing and distribution company. Additionally, CIMG's Maca Noni beverage recently received the 2024 China Annual Most Innovative New Consumer Brand Award, highlighting its commitment to product innovation.