Executive Summary
MEGAIN Holding Cayman Co Ltd reported QQ1 2025 revenue of 35,383,000 CNY, up 7.6% versus QQ1 2024 but down 15.7% QoQ from the trailing quarter. The company continued to incur meaningful losses: gross profit was 4,969,000 CNY with a gross margin of 14.04%, while operating income was negative 11,034,500 CNY and net income posted a loss of 19,287,500 CNY (EPS -0.0372). EBITDA was negative 9,460,000 CNY, signaling significant operating deleveraging, likely tied to ongoing investments in R&D and SG&A intensity. The quarter reflects a volume/price-sensitive technology components business exposed to competitive pressures in cartridge chip design and related IC components, with a modest revenue YoY uplift overshadowed by steep cost structure and a negative operating trajectory. Management commentary (where available) would be critical to assess whether the revenue traction can translate into improving profitability in the near term, given the scale and cadence of investments required to compete in a crowded Chinese and international chip/component market. Investors should monitor gross margin progression, control of operating expenses, and any forward-looking guidance on product mix, customer concentration, and potential strategic partnerships that could alter the profitability path.
Key Performance Indicators
QoQ: -63.10% | YoY:-53.43%
QoQ: -1 173.46% | YoY:-503.87%
QoQ: -516.71% | YoY:-9 615.35%
QoQ: -517.98% | YoY:-10 169.29%
Key Insights
QQ1 2025 Revenue: 35,383,000 CNY (YoY +7.55%, QoQ -15.68%).
Gross Profit: 4,969,000 CNY; Gross Margin: 14.04%.
Operating Expenses: 16,003,500 CNY (R&D 5,100,500 CNY; G&A 7,122,000 CNY; Selling & SG&A 3,473,000 CNY).
EBITDA: -9,460,000 CNY; EBITDAR: -0.267x; Operating Income: -11,034,500 CNY; Operating Income Margin: -31.19%.
Income Before Tax: -18,353,500 CNY; Net Income: -19,287,500 CNY; Net Income Margin: -54.51%.
EPS (basic/diluted): -0.0372 CNY; Weighted Avg Shares: ~518.8 mi...
Financial Highlights
QQ1 2025 Revenue: 35,383,000 CNY (YoY +7.55%, QoQ -15.68%).
Gross Profit: 4,969,000 CNY; Gross Margin: 14.04%.
Operating Expenses: 16,003,500 CNY (R&D 5,100,500 CNY; G&A 7,122,000 CNY; Selling & SG&A 3,473,000 CNY).
EBITDA: -9,460,000 CNY; EBITDAR: -0.267x; Operating Income: -11,034,500 CNY; Operating Income Margin: -31.19%.
Income Before Tax: -18,353,500 CNY; Net Income: -19,287,500 CNY; Net Income Margin: -54.51%.
EPS (basic/diluted): -0.0372 CNY; Weighted Avg Shares: ~518.8 million.
Trailing four-quarter revenue signal remains modest in scale with meaningful profitability gap evident in QQ1 2025 versus peers with higher gross margins in similar hardware/chip segments.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
35.38M |
7.55% |
-15.68% |
| Gross Profit |
4.97M |
-53.43% |
-63.10% |
| Operating Income |
-11.03M |
-503.87% |
-1 173.46% |
| Net Income |
-19.29M |
-9 615.35% |
-516.71% |
| EPS |
-0.04 |
-10 169.29% |
-517.98% |
Management Commentary
Transcript highlights not provided in the prompt. Unable to extract direct management quotes or thematic notes from the QQ1 2025 earnings call.
Transcript not provided in the prompt.
— Management
Transcript not provided in the prompt.
— Management
Forward Guidance
No explicit forward guidance is present in the provided data. Given the substantial quarterly operating loss and negative net income, the near-term trajectory will hinge on: (i) gross margin stabilization or improvement (through product mix, pricing, or cost discipline); (ii) rationalization of operating expenses, particularly R&D and SG&A intensity relative to revenue; (iii) potential strategic actions (partnerships, accelerated product introductions, or geographic expansion) that could lift top-line growth without proportionally increasing the cost base. Investors should monitor any upcoming management commentary on target gross margin, break-even timelines, and capex/intensity of product development that could influence profitability in the remainder of 2025 and beyond.