EDA GROUP HLDGS (02505) saw its stock price surge by nearly 100% during the trading session. At the time of writing, the shares were up 76.74%, trading at HK$0.76, with a turnover of HK$8.8543 million.

The company released its annual results, reporting revenue of RMB 1.987 billion, a year-on-year increase of 17.58%. However, the loss attributable to owners of the parent company was RMB 12.156 million, shifting from a profit to a loss compared to the previous year. This was primarily due to a sharp rise in costs from strategic investments in overseas warehouses, intensified industry competition triggered by tariff policies, increased overseas logistics and labor expenses, and a higher provision for expected credit losses on receivables.

Notably, the accelerated expansion of overseas warehouses has been the main factor putting short-term profitability under pressure. In 2025, the company added six new overseas warehouses globally, increasing the total area by approximately 130,000 square meters. These newly established warehouses are currently in a "ramp-up phase."

Despite the near-term challenges, the company's global strategy is beginning to yield results. The revenue contribution from the U.S. market decreased from 80.5% in 2024 to 73.3%, while Europe's share rose from 12.1% to 17.2%. Emerging markets showed strong growth, with Germany’s revenue increasing by 90.1% year-on-year, Australia by 131.8%, and Canada and the UK growing by 36.4% and 36.3%, respectively.