EDA Group Holdings (2505) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 23.2% YoY to RMB918.661m, while gross profit fell 19.5% to RMB94.355m and net profit declined 35.6% to RMB19.303m.

• Strategy targets five-year high growth through 2030, centered on AI-enabled logistics, overseas warehouse expansion and SaaS commercialization.

Financial highlights

• Revenue increased 23.2% to RMB918.661m; cost of sales grew 31.2% to RMB824.306m, outpacing revenue growth.

• Gross profit declined 19.5% to RMB94.355m; profit before tax was RMB19.714m versus RMB36.824m, and net profit was RMB19.303m versus RMB29.958m.

• Adjusted net profit fell 60.8% to RMB22.168m from RMB56.592m, excluding listing and share-based payment expenses; net and adjusted net profit margins were 2.1% and 2.4%.

• Adjusted EBITDA rose 10.9% to RMB99.577m; basic and diluted EPS were RMB0.04 versus RMB0.08.

• Other income and gains were RMB14.328m, including a RMB7.714m gain on loss of control of subsidiaries; finance costs rose to RMB26.570m from RMB5.769m.

Outlook and guidance

• Five-year high-growth plans through 2030 include AI and large-model applications, smart warehousing, warehouse optimization, SaaS expansion and operational efficiency improvements.

• Priorities include fulfillment-network expansion, IT and SaaS investment, stronger brand-customer relationships, strategic partnerships and M&A, and AI-driven efficiency and cost improvements.

• Expansion opportunities are being explored in Europe, Southeast Asia and the Middle East, with continued focus on brand-oriented and integrated industrial-trade customers.

• Profitability initiatives include improving service quality and delivery stability, expanding warehouse fulfillment, optimizing customer mix and applying AI to lower costs.