Meijia Yinkong Holdings (06939.HK): Expected net loss of not less than 60 million yuan for fiscal year 2025, turning from profit to loss year-over-year

Gelonghui March 17 — Meijiayin Holdings (06939.HK) announced that, based on a preliminary assessment of the group’s unaudited consolidated management accounts and other information currently available to the board for the year ending December 31, 2025 (“the Relevant Period”), the group’s attributable net loss for the period is expected to be no less than approximately RMB 60 million, compared to a net profit attributable to the company’s owners of about RMB 9.66 million in the same period in 2024.

The shift from profit to loss is mainly due to (i) a significant decline in gross profit margin of the group’s compatible printer consumables chip business during the Relevant Period, affected by intense competition in the compatible printer consumables chip industry; (ii) increased marketing activities during the period to strengthen the development of new businesses such as IoT chips and online sales, leading to higher sales and distribution expenses; (iii) increased administrative expenses due to the change of the group’s headquarters in the People’s Republic of China and the write-down of raw material costs; and (iv) the group incurred net operating losses during the period, resulting in a substantial increase in impairment losses on assets (including property, plant and equipment, intangible assets, and prepayments).