EDA Group flags 2025 loss on overseas expansion and rising costs

EDA Group Holdings Limited ( (HK:2505) ) has provided an announcement.

EDA Group Holdings Limited has warned that it expects to swing from a net profit of about RMB47.1 million in 2024 to a net loss of roughly RMB12 million for the year ended 31 December 2025, with adjusted results shifting from a profit of RMB113.9 million to an adjusted net loss of around RMB8.5 million. The downturn is mainly attributed to upfront costs and amortisation from strategic expansion into new overseas warehouses, pressure on order unit prices from tariff policy changes and heightened competition, higher overseas logistics and labour expenses, and a larger provision for expected credit losses as receivables age, signalling near-term margin pressure even as management frames the warehouse investments as critical to sustaining long-term growth.

The board underscored that the adjusted net loss measure excludes listing and share-based payment expenses, which it views as non-operational or one-off items, to provide a clearer view of underlying performance. Final audited results for 2025 have yet to be completed and may differ from these preliminary figures, leaving investors to weigh short-term earnings weakness against the potential strategic benefits of the company’s expanded international logistics infrastructure.

The most recent analyst rating on (HK:2505) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on EDA Group Holdings Limited stock, see the HK:2505 Stock Forecast page.

More about EDA Group Holdings Limited

EDA Group Holdings Limited operates in the cross-border logistics and warehousing sector, focusing on overseas warehouse leasing and related logistics services for international trade customers. The group has been expanding its footprint by adding new leased overseas warehouses since the second half of 2024 to support long-term growth in global markets.

Average Trading Volume: 157,964

Technical Sentiment Signal: Sell

Current Market Cap: HK$263.7M

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