Audientes A/S: Q3 2024 Financial Report

Company announcement no. 33-2024
November 21, 2024

Audientes A/S (“Audientes” or the “Company”), CVR 36047631, announces its unaudited financial results for Q3 2024. The Company provides updates on progress in its key markets and adjusts its sales and financial objectives for the full year 2024 because some expected sales orders are now likely to first materialize in 2025.

Operating Highlights Q3 2024

• In Q3 2024, Audientes focused on expanding its market presence in China, Japan, India, and Europe by establishing strategic partnerships and collaborations with key entities.

• Over 1,000 fully localized Companion products were shipped to Audientes in Japan, with marketing campaigns and partner dialogues underway to prepare for retail launches in Q4 coupled with collaborations with prospective corporates and OEMs.

• Preparations for the Greater China launch of ‘ZhiYinYou,’ our localized Companion product, have been completed, and we started in Q3 to fulfil initial pre-paid orders (from 2023) to our partner Hengtong.

• Ven™ as a medical grade hearing aid for the Chinese market is under development as part of the joint venture collaboration with Hengtong; market launch expected in late 2025.

• Begun the development of a 'Behind-the-Ear' (BTE) hearing aid in the 'Receiver in Canal' (RIC) style to expand the company’s market presence into the mainstream hearing aid segment. The initial target markets are China and India, but the product is also aimed at other countries. ​

Financial highlights for Q3 2024

In April 2024, the nominal value per share was reduced from DKK 0,10 to DKK 0,01.

• Sales revenue of TDKK 63 generated in Q3 2024 from the delivery of initial pre-paid products ordered by the Chinese distributor Shenzhen Hengtong Partner Company Ltd.

• Remainder of the pre-paid revenue of approximately TDKK 560 from pre-paid products ordered by the Chinese distributor Shenzhen Hengtong Partner Company Ltd. is expected to be delivered and recognized in Q4 2024.

• EBITDA in Q3 2024 realized at TDKK -901 (TDKK -3,930 for Q1-Q3 2024) compared to TDKK -1,838 in Q3 2023 (TDKK -6,680 in Q1-Q3 2023).

Operating Highlights after Q3 2024

• The joint venture with Shenzhen Hengtong Partner Co. in China is now established as “ZhiYinYou Technology Limited” and operational, marking the beginning of the development of localized smart hearing solutions tailored for the Greater Chinese market.

• Audientes has a 40% shareholding in the new joint venture company, as announced. ​Besides being a shareholder in the joint venture company, Audientes will provide a range of billable product creation services.

• Audientes continues to advance the software licensing strategy and associated product development services as part of new Ven and BTE/RIC hearing aid projects. ​The joint venture is the first licensee partner of Audientes software platform for smart hearing products, which is anticipated to become a significant component of Audientes' future business model.

• Strengthened our European sales presence with the appointment of Mr. Stefan Lundström as European Sales and Marketing Director, with extensive experience in the consumer electronics sector for wellness products.

• Audientes completed recently in Q4 2024 a directed issue via a cash capital increase of TDKK 1,280 and conversion of debt of TDKK 420, total TDKK 1,700. This will primarily support operational expenditures associated with the market entry in Japan and China as well as expanding the existing activities in Europe and India. Related activities including product maintenance, customer support and some new product development is also in scope.

• We have recently entered a long-term partnership with Kogai Invest AB with whom we will work to strengthen the brand and engage more investors to create greater awareness around our company and its opportunities for future growth. Kogai Invest AB has agreed to convert debt of approx. TDKK 1,090 million to shares and has therefore become a major shareholder.  

Outlook

• The sales expectations for 2024 have been revised due to certain new product orders are now expected to materialize in 2025.

• With the expanded sales platform in place and operational in Japan, China, India and in Europe it bodes well for what we can achieve in 2025.

• As a result, the expected revenue for the year has been adjusted to a range of DKK 1.5 to 2.5 million (previously DKK 3.8 to 4.8 million) distributed amongst the primary markets of Japan, China, and India, with a minor number in Europe and the Rest of the World.

• The operating result (EBITDA) for the financial year 2024 is now expected to be in the range of DKK -4.5 to -5.5 million (previously DKK -4.0 to -5.0 million).

Financial calendar

The Company’s financial calendar is updated to cover all of 2025 and the beginning of 2026, as follows:

For further information, please contact:

Steen Thygesen, CEO, Audientes A/S

Phone: ‭+45 77 34 16 80‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Email: st@audientes.com

About Audientes A/S

Audientes A/S is a Danish hearing health company specializing in smart, self-fitting and affordable hearing aids and advanced hearables. Audientes’ unique hearing aid solution, Ven™ by Audientes, is available for purchase in the Indian and Nepalese markets and will be introduced in other markets in the coming years. Companion by Audientes is an advanced hearable, a consumer electronics product, marketed in Japan, China, Europe and other select markets worldwide.

Audientes’ mission is to make high-quality hearing aids and hearables for hearing improvement or hearing enhancement accessible to everyone who needs them globally. Audientes is listed on Spotlight Stock Market Denmark (AUDNTS) and headquartered in Copenhagen, Denmark with subsidiaries in Hyderabad, India and in Tokyo, Japan.

For additional information please refer to the company’s websites, www.audientes.com, www.audientes.eu or www.audientes.in.