AuGroup SHENZHEN Cross-Border Business (2519) H1 2025 earnings summary

Executive summary

• H1 revenue rose 29.3% YoY to RMB5,607.2m, while net profit fell 58.9% to RMB116.6m amid higher freight, tariff, warehouse and project costs.

• Gross profit increased 8.0% to RMB1,602.4m, but gross margin declined to 28.6% from 34.2%; logistics solutions grew 86.4% and reached 30.1% of revenue.

Financial highlights

• Revenue was RMB5,607.2m vs RMB4,335.0m; gross profit RMB1,602.4m vs RMB1,483.4m; profit before tax RMB143.6m vs RMB350.9m.

• Net profit was RMB116.6m vs RMB283.9m; profit attributable to owners RMB107.9m vs RMB258.9m; basic and diluted EPS RMB0.26 vs RMB0.67.

• Cost of sales rose 40.4% to RMB4,004.9m; selling expenses increased 18.6% to RMB1,071.0m, while the selling-expense ratio eased to 19.1% from 20.8%.

• Finance costs increased to RMB127.3m from RMB43.5m, mainly due to lease liabilities for expanded logistics operations and new warehouses.

Outlook and guidance

• Priorities include diversifying and localizing supply and procurement, expanding in Europe and Southeast Asia, strengthening brands and product differentiation, and developing mid- to high-end offerings.

• Plans include expanding overseas logistics capacity, improving delivery and after-sales service, and applying AI to market analysis, demand forecasting, procurement and inventory management.

• H1 added 924,000 sq. ft. of overseas warehouse area; product development included 79 patent applications and 17 international design awards.