Modern Chinese Medicine Group reported QQ1 2025 revenue of 32,378,999 CNY, down 15.49% year over year and 52.88% quarter over quarter, reflecting a challenging start to the year after a small base in the prior year. Gross profit was 8,095,000 CNY with a gross margin of 25.0%, indicating margin resilience despite weaker top-line performance. Operating income reached 1,013,499 CNY (operating margin 3.13%), and net income was 1,226,500 CNY, translating to a net margin of 3.79%. EBITDA stood at 3,275,500 CNY (EBITDA margin 10.12%), underscoring cash-flow positivity at the operating level even as revenue declines persist. Selling, general and administrative expenses totaled 7,081,500 CNY, with depreciation and amortization of 2,262,000 CNY; R&D expenses are not disclosed in the reported figures, creating a partial view of the company’s investment in future product development. There is no formal forward guidance provided in the available data. In the near term, the key drivers for performance will likely be demand for proprietary Chinese medicines in China, the regulatory environment, and the company’s ability to sustain cost discipline while expanding its distribution footprint. Investors should monitor seasonality, regulatory changes, and any announced product launches or partnerships in subsequent quarters. Based on the QQ1 results, the company demonstrates margin flexibility but faces meaningful topline headwinds; a longer runway for growth will depend on product pipeline execution and geographic or channel expansion within China.