NNK Group profit drops 41% despite revenue growth amid expansion costs

Yinsheng Digifavor Company Limited (NNK Group) reported a profit attributable to owners of RMB12.5 million for the six months ended June 30, 2025. This was a substantial decrease of approximately 41.3% from RMB21.3 million in the same period of 2024. The decline was primarily attributed to increased research and development investment, staff costs, and business sales expenses as the Group expanded its operations.

Despite the profit dip, revenue for the period saw a 14.0% increase, reaching RMB69.9 million, up from RMB61.3 million in 2024. This growth was driven by a significant surge in digital marketing services, which generated RMB34.3 million compared to RMB8.9 million in the prior year, now accounting for 49.1% of total income. However, gross profit fell by 8.3% to RMB44.1 million from RMB48.1 million. The cost of revenue more than doubled, rising by 114.3% to RMB25.5 million.

NNK Group continues its strategic pivot towards digital intelligence, increasing R&D expenses by 15.1% to RMB6.1 million. It aims to broaden its market reach, particularly in the digital equity product trading sector, and plans to accelerate overseas business expansion in the second half of 2025. The gearing ratio increased to 56.1% as of June 30, 2025, reflecting higher bank borrowings to fund new projects.