May Day Vision Loss Doubles to RMB 182M Despite Revenue Growth

Edgen Stock

·Mar 25 2026, 20:10

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Key Takeaways

May Day Vision reported a 21% increase in annual revenue to RMB 348 million, but its net loss more than doubled to RMB 182 million. The results highlight severe profitability challenges that overshadowed top-line growth, raising significant questions about the company's cost structure and operational efficiency.

Widening Loss: The company's annual loss for 2025 expanded to RMB 182 million from RMB 79.13 million in the prior year, despite a 21% revenue increase.
Negative Market Reaction: The stock (06651.HK) dropped 4.26% as investors reacted to the deteriorating bottom line and a loss per share of RMB 0.48.
No Dividend: Management announced that no final dividend will be distributed, signaling a focus on cash preservation as profitability concerns mount.

Losses Swell to RMB 182M, Erasing 21% Revenue Gain

May Day Vision (06651.HK) announced concerning 2025 annual results that revealed a significant disconnect between its revenue growth and profitability. The company reported that revenue climbed 21% year-over-year to reach RMB 348 million. However, this top-line expansion was completely overshadowed by a severe deterioration in its financial health. The net loss attributable to shareholders ballooned to RMB 182 million, more than doubling from the RMB 79.13 million loss recorded in the previous year. This translated to a loss per share of RMB 0.48.

Profitability Crisis Triggers Stock Drop and Dividend Cut

The market delivered a swift verdict on the earnings report, sending May Day Vision's stock down 4.262%. The widening losses point to a potential crisis in the company's operational efficiency and cost management structure, as expenses are clearly outpacing sales growth. Underscoring the financial pressure, the board decided to withhold a final dividend, a move that suggests a pressing need to conserve cash rather than reward shareholders. The results raise serious doubts about the company's business model and its path to profitability, likely prompting a negative re-evaluation from analysts and investors.