E-commerce company PChome Online Inc (網路家庭) yesterday said its board of directors has decided to make PChome Store Inc (商店街市集) a wholly owned subsidiary of PChome eBay Co (露天市集), as the company aims to improve operational efficiency.
PChome Store is a subsidiary of PChome Online that focuses on business-to-business-to-consumer services, while PChome eBay is a joint venture between PChome Online and eBay Inc that provides consumer-to-consumer auction services.
The board’s decision comes as PChome Online restructures its corporate organization and streamlines its major business units to catch up with its peers and return to profitability.
Photo: Ou Yu-hsiang, Taipei Times
The shakeup began with Alica Chang (張瑜珊) taking over as CEO in August last year. As part of the plans, PChome Online is on March 11 to shut down PChomeSEA, a cross-border e-commerce platform that helps Taiwanese merchants tap Southeast Asian markets.
PChome Online yesterday reported NT$8.18 million (US$268,946) in net profit for the fourth quarter of last year, ending four consecutive quarters of losses. Earnings per share were NT$0.06 for the quarter.
The figure reflects improved business performance across all of the company’s units, including e-commerce, online marketplace, mobile payment and other Internet services, as well as its effective cost-control measures during the traditional high season, it said.
Consolidated revenue rose 31.8 percent to NT$13.19 billion last quarter from NT$10.01 billion the previous quarter, but the figure was down 5.38 percent from NT$13.95 billion a year earlier.
For the whole of last year, PChome Online fell into the red for the first time in four years, with a net loss of NT$52.79 million, compared with a net profit of NT$97.44 million in 2021.
That translated into net losses per share of NT$0.42, versus earnings per share of NT$0.84 the previous year. The company last reported losses per share in 2018, with a loss of NT$8.49.
PChome Online chairman Jan Hung-tze (詹宏志) recently said that he would continue receiving no salary and the company would suspend performance bonuses, due to its lackluster performance last year.
The company’s consolidated revenue last month declined 16.76 percent year-on-year to NT$3.56 billion, the weakest January performance in three years, while rival Momo.com Inc (富邦媒體) saw its revenue grow 4 percent to NT$8.75 billion, the companies’ regulatory filings showed earlier this month.
Analysts have said it remains to be seen whether PChome Online could maintain its growth momentum amid intensifying competition in the local e-commerce market and a changing business environment.
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