EDA Group Holdings Limited released a profit warning indicating an anticipated turnaround to a net loss of roughly RMB12.00 million for the year ended 31 December 2025, versus a net profit of about RMB47.10 million in 2024.
Adjusted for listing and share-based payment expenses, management expects an adjusted net loss of around RMB8.50 million, compared with an adjusted net profit of RMB113.90 million a year earlier.
Key drivers behind the projected deficit: 1. Strategic expansion into leased overseas warehouses since H2 2024 elevated costs through amortisation of right-of-use assets and lease-related interest. 2. Tariff policy changes heightened market uncertainty and industry competition, pressuring order unit prices. 3. Rising overseas logistics and labour expenses pushed up overall operating costs. 4. Provision for expected credit losses on accounts receivable increased by approximately RMB7.70 million due to lengthening payment cycles.
The figures are based on the Group’s unaudited management accounts and may change upon finalisation. The audited results are scheduled for release before end-March 2026. Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares.
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