Shares of DAWNRAYS PHARMA (02348) plummeted 6.98% in the pre-market trading session on Monday, following the release of its interim results for 2025. The pharmaceutical company reported a significant decline in profitability, despite a moderate increase in revenue.

According to the interim report, DAWNRAYS PHARMA's revenue rose by 9.2% year-over-year to approximately 630 million yuan. However, the company's gross profit decreased by 7.1% compared to the same period last year, reaching about 314 million yuan. Most notably, the net profit attributable to shareholders plunged by 78.79% to approximately 105 million yuan, a figure that appears to have spooked investors.

The sharp decline in net profit, despite revenue growth, suggests potential challenges in the company's cost management or market competitiveness. DAWNRAYS PHARMA announced earnings per share of 0.06961 yuan and declared an interim dividend of 0.015 Hong Kong dollars per share. The market's negative reaction indicates that investors may be concerned about the company's future growth prospects and profitability in light of these results.