"Profit Warning" MEGAIN estimates a full-year loss of no less than 70 million RMB

MEGAIN Holdings (06939.HK) issued a profit warning, expecting a loss of no less than 60 million RMB for the fiscal year 2025, compared to a net profit of 9.66 million RMB in the previous year. The shift from profit to loss is mainly due to a significant decline in the gross profit margin of the group's compatible printer consumables chip business; increased sales and distribution expenses; increased administrative expenses due to changes at the mainland headquarters and the write-off of raw material costs; and a net operating loss during the period, leading to a substantial increase in asset impairment losses