EDA GROUP HLDGS (02505) announced that the group expects to achieve a net profit of approximately RMB 18 million to RMB 21 million during the reporting period (six months ended June 30, 2025), representing an expected decline of 30%-40% compared to the same period in 2024.

The group anticipates achieving an adjusted net profit (non-HKFRS measure, defined as net profit adjusted by adding back listing expenses and share-based compensation expenses related to share incentive plans) of approximately RMB 20 million to RMB 25 million during the reporting period, representing an expected decline of 55%-65% compared to the same period in 2024.

The main reasons for the aforementioned decline include: (1) Due to new overseas warehouse leases in the second half of 2024 and the first half of 2025, while overseas warehouses typically require time to achieve profitability, the related operating costs increased significantly as the right-of-use assets for these facilities began depreciation, resulting in a decline in gross profit margin; (2) Tariff policy adjustments during the reporting period increased market environment uncertainty and intensified industry competition, leading to continuous decline in order unit prices; (3) Both overseas logistics costs and labor costs increased during the reporting period, resulting in a significant rise in overall costs.