EDA Group Holdings (2505) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 61.6% YoY to RMB745.4m; net profit increased 3.5% to RMB30.0m, while adjusted net profit grew 42.1% to RMB56.6m.

• Listed on 28 May 2024; connected EDA Cloud with TEMU in Q2 and achieved TEMU-Certified Warehouse status.

Financial highlights

• Gross profit rose 39.3% YoY to RMB117.3m; profit before tax was RMB36.8m versus RMB34.9m.

• Adjusted EBITDA increased 29.3% to RMB94.5m; basic and diluted EPS were RMB0.08.

• Operating cash flow rose to RMB48.4m from RMB11.1m; period-end cash and cash equivalents were RMB311.3m.

Outlook and guidance

• Priorities include investing in AI, machine learning and IoT for EDA Cloud, deepening platform partnerships, pursuing selective M&A, and expanding overseas warehouses and logistics networks.

• Management expects positive operating cash flows and considers cash, deposits and unused banking facilities sufficient for operations and development.

• China’s pre-sale stocking B2C export e-commerce logistics market is projected to reach RMB387bn by 2028, with a 13.7% CAGR.