Megain Reports Revenue Decline & Profit Contraction in 2024

Megain Reports Revenue Decline & Profit Contraction in 2024

Megain Holding (Cayman) Co., Ltd. has unveiled its financial results for the fiscal year ending December 31, 2024, reflecting a challenging period marked by a slowdown in revenue and profitability. The company recorded total revenue of approximately RMB 149.7 million (USD 20.6 million), representing a 13.2% decrease compared to the previous year. Meanwhile, net profit attributable to shareholders fell sharply by 58.4% to RMB 9.7 million (USD 1.33 million).

The decline in profitability was evident across key financial indicators. The gross profit margin narrowed from 38.9% in 2023 to 32.2% in 2024, while the net profit margin saw a drop from 13.5% to 6.5%. Return on equity (ROE) and return on assets (ROA) also contracted, slipping from 6.3% to 2.6% and from 5.9% to 2.4%, respectively. These declines were largely attributed to lower sales figures and tighter margins on the company’s core product offerings.

Megain remains a key player in the design, development, and sale of compatible printer consumable chips. Among its business segments, laser printer chips continued to be the primary revenue generator, bringing in RMB 93.2 million (USD 12.82 million), despite a 15.6% year-on-year decline. Inkjet printer chip sales dropped more significantly, plunging 33.3% to RMB 20 million (USD 2.75 million). On a more positive note, the commercial printer chip segment experienced a modest 9.4% growth, reaching RMB 2.57 million (USD 0.35 million). Additionally, other chip and component categories showed robust expansion, with sales surging by 45.4%, and integrated circuits along with other printer-related components climbing 27.8% to RMB 27.2 million (USD 3.74 million).

During the year, Megain ramped up its investment in research and development, leading to increased R&D expenses. Sales and distribution costs also surged by 39.4%, driven by intensified marketing efforts in the IoT chip sector and the expansion of online sales channels. In contrast, administrative costs experienced a slight reduction.

Looking ahead, Megain is focused on stabilizing its core business while actively pursuing growth opportunities in emerging markets, particularly in IoT chip technology. The company aims to refine its cost structure and enhance product competitiveness as it navigates the evolving landscape of the printer consumables industry and adapts to shifting market demand.

Related:

• Megain Relaunches Well-Known Toner Cartridge Brand
• Megain to Display Compatible Printer Chip Solution at RemaxWorld Expo
• Megain Launches Replacement Chips for HP Printers

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