HK Stock Market Move | EDA GROUP HLDGS(02505) rose nearly 100% during trading. The company's overseas warehouse expansion has dragged down performance. The effects of globalization layout are beginning to show.

EDA GROUP HLDGS (02505) rose nearly 100% during trading hours, rising 76.74% to HK$0.76 as of press time, with a trading volume of HK$8.8543 million. In terms of news, EDA GROUP HLDGS released its annual results, reporting a revenue of 1.987 billion yuan, a year-on-year increase of 17.58%. The company's net loss attributable to its parent company amounted to 12.156 million yuan, a shift from profit to loss compared to the same period last year. This was mainly due to the significant increase in costs incurred from overseas warehouse strategic investments, intensified industry competition triggered by tariff policies, rising overseas logistics and labor costs, and an increase in the provision for expected credit losses on accounts receivable. It is worth noting that the accelerated expansion of overseas warehouses is a core reason for the pressure on short-term profits. By 2025, EDA Group has added 6 new overseas warehouses globally, with an additional area of approximately 130,000 square meters. These new warehouses are currently in a ramp-up phase. However, the company's globalization strategy is beginning to show results. The revenue contribution from the US market decreased from 80.5% in 2024 to 73.3%, while the revenue contribution from the European region increased from 12.1% to 17.2%. Emerging markets also showed impressive growth, with the German market revenue increasing by 90.1% year-on-year, and the Australian market revenue increasing by 131.8%. Canada and the UK also saw year-on-year revenue growth of 36.4% and 36.3%, respectively.