Shares of DAWNRAYS PHARMA (02348) plunged 6.98% in early trading on Monday, following the release of the company's disappointing interim results for 2025. The pharmaceutical firm reported a substantial 78.79% year-over-year decline in net profit attributable to shareholders, despite a modest increase in revenue.

According to the interim report, DAWNRAYS PHARMA's revenue for the period reached approximately 630 million yuan, representing a 9.2% increase compared to the same period last year. However, the company's profitability took a significant hit, with gross profit declining by 7.1% to around 314 million yuan. Most notably, net profit attributable to owners of the parent company plummeted to approximately 105 million yuan, a stark 78.79% decrease from the previous year.

The company announced earnings per share of 0.06961 yuan and declared an interim dividend of 0.015 Hong Kong dollars per share. The dramatic drop in profitability, despite revenue growth, suggests potential challenges in the company's cost management or market conditions. Investors appear to be reacting negatively to these results, as reflected in the sharp decline in the stock price during the pre-market trading session.