EDA Group Holdings (2505) investor relations material

Executive summary

• H1 2026 revenue rose 14.3% YoY to RMB1,049.6m, while gross profit fell 28.1% to RMB67.8m and results swung to a RMB42.2m net loss from RMB19.3m profit.

• Adjusted net loss was RMB41.1m versus adjusted net profit of RMB22.2m; adjusted EBITDA remained positive at RMB75.0m, down 24.7% YoY.

• Pricing pressure, warehouse ramp-up and higher overseas costs weighed on margins; expansion, AI/RPA adoption and the 2025–2030 growth plan remained strategic priorities.

Financial highlights

• Revenue increased 14.3% to RMB1,049.6m; cost of sales rose 19.1% to RMB981.7m, outpacing revenue growth.

• Gross profit declined 28.1% to RMB67.8m and gross margin contracted to 6.5% from 10.3%.

• Net loss was RMB42.2m versus net profit of RMB19.3m; adjusted net loss was RMB41.1m versus adjusted net profit of RMB22.2m.

• Basic and diluted loss per share were both RMB0.10, versus earnings per share of RMB0.04; potential ordinary shares were anti-dilutive.

• Adjusted EBITDA was RMB75.0m versus RMB99.6m; finance costs increased to RMB39.9m from RMB26.6m.

Outlook and guidance

• H2 plans included adding Germany and UK warehouses in Q3, scaling the New Jersey site and preparing seasonal labor, trucking and delivery capacity for peak trading.

• Priorities include expanding self-operated warehouses in Europe and North America, advancing the Indonesia warehouse project, and increasing AI, RPA and smart warehousing deployment.

• Short-term profit pressure was expected from competition and warehouse ramp-up, while overseas warehouses were viewed as increasingly strategic amid tighter small-parcel policies.

• No interim dividend was proposed for H1 2026, versus HK$0.035 per share for H1 2025.