Regal Partners’ QQ1 2025 results show a pronounced top-line contraction accompanied by a continuation of profitability headwinds. Revenue declined to 20,957,500 CNY, down 44.18% year-over-year and 5.63% quarter-over-quarter. The company delivered a gross profit of 5,598,000 CNY, yielding a gross margin of 26.71%, indicating that unit economics at the gross level remained modestly constructive but are insufficient to offset the fixed cost burden. Operating expenses were materially elevated at 15,333,000 CNY, driving an EBITDA of -9,122,250 CNY and an operating income of -9,735,000 CNY, or -46.45% of revenue, on top of -5,441,500 CNY in net other income/expenses. As a result, net income fell to -14,443,000 CNY with an EPS of -0.0048. The quarterly performance underscores a heightened need for operating leverage improvements and cost discipline to move toward breakeven. Sequential gross profit improvement of 47.53% QoQ suggests some benefit from better cost control on the cost of revenue or mix, but the structure remains earnings-negative given fixed overheads and depreciation. Absent a transcript, qualitative management insights from QQ1 earnings calls are not captured here; investors should monitor future filings and calls for guidance on cost-reduction initiatives, channel strategy, and margin expansion plans. Overall, the near-term investment thesis remains cautious until profitability and cash efficiency indicators show material improvement.