Megain Holding (Cayman) Co. Ltd. released its interim financial results for the six months ended June 30, 2025. Revenue increased by 7.7% to RMB 70.8 million from RMB 65.7 million in the same period of 2024. Despite the increase in revenue, the company reported a significant downturn in profitability. Gross profit declined by 53.4% to RMB 9.9 million from RMB 21.3 million, and the gross profit margin dropped from 32% to 14%. The company recorded a loss before tax of RMB 36.7 million, a major shift from a profit of RMB 0.43 million in the prior period. Profit for the period turned into a loss of RMB 38.6 million from a profit of RMB 0.41 million previously. This transition from profit to loss reflects the challenges faced by the company during the period. The decrease in gross profit margin was attributed mainly to the high proportion of sales of trading in other cartridge components, which have a lower gross profit margin. Other net income also decreased by 28.1% to RMB 3.0 million due to delayed distribution of government grants. The company recognized a provision for impairment losses of assets during the period. No specific outlook or guidance for future periods was provided in the report.