Megmeet reports strong revenue growth, but H1 2025 profit dips sharply

Shenzhen Megmeet Electrical Co., Ltd. reported a 16.52% increase in operating revenue to RMB 4.67 billion for the first half of 2025, compared to RMB 4.01 billion in the same period last year. However, the company's net profit attributable to shareholders decreased by 44.82% to RMB 173.59 million, down from RMB 314.58 million in H1 2024. Diluted earnings per share fell by 47.25% to RMB 0.3152.

The company attributed the revenue growth to an increase in sales for new energy and rail transit components (up 150.94% to RMB 508.13 million) and industrial automation products (up 27.90% to RMB 388.64 million). The gross profit margin for power electronics decreased by 3.70%. Operating cash flow saw a significant increase of 190.36% to RMB 192.10 million, reflecting improved sales collection.

Megmeet noted heightened market competition, price wars, and increased costs, particularly impacting its variable frequency home appliance business. The company plans to address these challenges through increased R&D investment, expansion into emerging sectors like AI server power systems, and strengthening its global market presence. The company also confirmed its intention not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the first half of 2025.