Edianyun Limited (2416) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 8.2% YoY to RMB699.6m; net profit increased 177.6% to RMB45.7m, while gross margin fell to 41.2% from 42.8%.

• Active customers grew 5.3% to 52,357, devices under service rose 11.3% to 1.48m, and net dollar retention improved to 96.8% from 88.8%.

Financial highlights

• Revenue was RMB699.6m, up 8.2% YoY; cost of sales rose 11.3% to RMB411.7m and gross profit increased 4.0% to RMB287.9m.

• Profit before tax rose 154.2% to RMB54.1m; net profit was RMB45.7m versus RMB16.5m, and basic and diluted EPS were RMB0.09 versus RMB0.03.

• Adjusted net profit, excluding share-based payment expense, rose 66.6% to RMB51.2m; adjusted EBITDA increased 20.1% to RMB385.0m.

• G&A expenses fell 39.8% to RMB42.6m, mainly due to lower share-based payment expense and AI-tool efficiencies; R&D expenses declined 9.1% to RMB30.0m.

• Operating cash flow was RMB241.8m versus RMB244.2m; cash and cash equivalents fell to RMB400.6m from RMB556.7m at Dec. 31, 2024.

Outlook and guidance

• Several key products are planned for H2 2025, alongside increased sales-team hiring and training and AI-based analysis to improve sales efficiency.

• Investment in remanufacturing technology and automation aims to improve yields and digitalization and reduce unit costs; a self-developed keyboard inspection robot is already operating.

• Management expects rising adoption of flexible office IT solutions to support performance, while noting ongoing challenges in SME recovery during 2025.