MEGAIN (06939) issued a profit warning, expecting an annual net loss attributable to shareholders of not less than approximately 60 million yuan, compared to a profit in the same period last year.

MEGAIN (06939) announced an expected net loss attributable to owners of the company of not less than approximately RMB 60 million for the year ending on December 31, 2025, compared to a net profit attributable to owners of approximately RMB 9.66 million in the same period in 2024. The main reason for the change from profit to loss is the fierce competition in the compatible printer consumable chip industry, which resulted in a significant decrease in the gross profit margin of the group's compatible printer consumable chip business during the relevant period; to strengthen the development of the group's new businesses such as IoT chips and online sales, the group increased its marketing activities during the relevant period, leading to an increase in sales and distribution expenses; the relocation of the group's headquarters in China and the depreciation of raw material costs led to an increase in administrative expenses for the group; and the group incurred a net operating loss during the relevant period, leading to a significant increase in impairment losses on assets (including property, plants and equipment, intangible assets, and prepayments).