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EDA Group Swings to 2025 Loss Despite Double-Digit Revenue Growth

Story Highlights
  • EDA Group grew 2025 revenue by 17.6% but saw gross profit decline as rising costs eroded margins.
  • Higher impairments and finance costs drove a swing to net and adjusted losses, weakening shareholder returns.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
EDA Group Swings to 2025 Loss Despite Double-Digit Revenue Growth

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

EDA Group Holdings Limited reported a 17.6% rise in revenue to RMB1.99 billion for the year ended 31 December 2025, but gross profit fell 20.9% to RMB198.5 million as cost of sales outpaced top-line growth. Administrative and research costs declined, yet higher impairment losses, other expenses and a sharp jump in finance costs pushed the company to a net loss of RMB12.2 million, reversing a RMB47.1 million profit a year earlier.

The group also swung from an adjusted net profit of RMB113.9 million in 2024 to an adjusted net loss of RMB8.4 million, underscoring weakened underlying profitability despite revenue expansion. Basic and diluted loss per share were both RMB0.03, signalling a deterioration in returns for shareholders and highlighting the financial strain from increased borrowing costs and asset quality issues on the company’s earnings profile.

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 is a Hong Kong-listed company engaged in manufacturing and related services, generating its revenues primarily in renminbi. The group operates in an industry where revenue growth can be offset by rising costs, impairments and finance expenses, making profitability sensitive to margin pressure and capital structure decisions.

Average Trading Volume: 652,383

Technical Sentiment Signal: Sell

Current Market Cap: HK$145.1M

Find detailed analytics on 2505 stock on TipRanks’ Stock Analysis page.

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