MEGAIN (06939) announced that the group expects to record a net loss attributable to owners of approximately RMB 40 million to RMB 60 million for the first half of 2025, compared to a net profit attributable to owners of approximately RMB 0.405 million for the same period in 2024.

According to the announcement, the shift from profit to loss is primarily attributed to several factors: the group's compatible printer consumable chips business experienced a significant decline in gross margin during the period due to intense competition in the compatible printer consumable chips industry; increased sales and distribution expenses resulted from expanded marketing activities to strengthen the development of the group's new businesses, including IoT chips and online sales; administrative expenses increased due to headquarters relocation within the People's Republic of China and write-offs of raw material costs; and the group's net operating losses during the period led to a substantial increase in asset impairment provisions.