EDA集团控股(02505) - 2025 - 中期财报

Corporate Profile Company Overview EDA Group Holdings Limited is a leading global AI logistics technology service group, providing cross-border logistics, overseas warehousing, and fulfillment services for China's B2C export e-commerce industry - EDA Group Holdings Limited is a leading global AI logistics technology service group, providing cross-border logistics, overseas warehousing, and fulfillment services for China's B2C export e-commerce industry[6][9] - The company's services are integrated into its self-developed Eda Cloud Platform, which features digital supply management tools empowering ecosystem partners[6][9] - The Group has an extensive network of third-party logistics service providers, including over 60 third-party warehousing service providers and 300 international freight forwarding service providers[7][9] - As of the reporting period, the company contracted 61 overseas warehouses in over 40 cities across three continents, 43 of which are franchised warehouses, making its overseas franchised warehouse network a leader among peers[7][9] Overseas Warehouse Distribution | Region | Number of Overseas Warehouses | | :--- | :--- | | United States | 44 | | Canada | 8 | | United Kingdom | 4 | | Germany | 3 | | Australia | 2 | | China (Temporary Inventory Storage) | 4 | Financial Highlights Key Financial Metrics For the six months ended June 30, 2025, revenue increased by 23.2% to RMB 918,661 thousand, but gross profit, profit before tax, profit for the period, and adjusted net profit all significantly decreased, with adjusted net profit falling by 60.8% Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 918,661 | 745,396 | 23.2% | | Gross Profit | 94,355 | 117,254 | (19.5%) | | Profit Before Tax | 19,714 | 36,824 | (46.5%) | | Profit for the Period | 19,303 | 29,958 | (35.6%) | | Profit Attributable to Owners of the Company | 19,303 | 29,958 | (35.6%) | | Adjusted Net Profit (Non-HKFRS Measure) | 22,168 | 56,592 | (60.8%) | | Adjusted EBITDA (Non-HKFRS Measure) | 99,577 | 89,818 | 10.9% | | Basic Earnings Per Share (RMB) | 0.04 | 0.08 | - | | Diluted Earnings Per Share (RMB) | 0.04 | 0.08 | - | - Adjusted net profit (non-HKFRS measure) is defined as profit for the period plus listing expenses and share-based payment expenses, to better reflect actual business operations[12] - Adjusted EBITDA (non-HKFRS measure) is defined as profit for the period plus listing expenses, share-based payment expenses, net finance costs not related to leases, income tax expense, and depreciation and amortization, to better reflect actual business operations[12] Management Discussion and Analysis BUSINESS REVIEW The Group upgraded its long-term strategic goal in February 2025 to become a "leading global AI logistics technology service group," achieving 23.2% revenue growth driven by last-mile fulfillment, despite declines in gross and net profit due to margin compression and increased operating costs - The Group's long-term strategic goal was upgraded in February 2025 to become a "leading global Artificial Intelligence (AI) logistics technology service group," committed to driving the transformation of the cross-border e-commerce logistics industry towards "intelligence-driven" through AI and large model technologies[14][16] - The 2025 strategic focus is "adhering to long-term growth," with a concrete action plan formulated until 2030, including building a vertical large model for the cross-border e-commerce industry, optimizing overseas warehouse layout, providing AI+robotics process automation services, implementing smart warehousing plans, optimizing the "Octopus Management Model," and strengthening resource integration capabilities[14][16] Revenue and Profit Overview (Six Months Ended June 30, 2025) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 918,661 | 745,396 | 23.2% | | First-mile International Freight Services Revenue | 68,414 | 115,560 | (40.8%) | | Last-mile Fulfillment Services Revenue | 850,247 | 629,836 | 35.0% | | Gross Profit | 94,355 | 117,254 | (19.5%) | | Net Profit | 19,303 | 29,958 | (35.6%) | | Adjusted Net Profit | 22,168 | 56,592 | (60.8%) | - Net profit margin and adjusted net profit margin decreased from 4.0% and 7.6% in the prior period to 2.1% and 2.4%, respectively, primarily due to lower gross profit and increased operating costs from amortization of right-of-use assets for overseas warehouses[18][20] - During the review period, 5 new self-operated overseas warehouses were expanded, increasing total area by approximately 110,000 square meters, with a total of 61 overseas warehouses contracted as of June 30, 2025[22][23] - The number of core customers increased to 109 (73 in the prior period), with core customer sales growing by 17.8% year-on-year to RMB 774,561 thousand[22][23] - SaaS service revenue grew significantly from RMB 168 thousand in the prior period to RMB 1,167 thousand[22][23] - In terms of sales channels, the company deepened cooperation with major e-commerce platforms such as Amazon, eBay, SHEIN, TEMU, AliExpress, and TikTok Shop, following a strategy of "deep cultivation of industrial belts + platform cooperation + private domain traffic management"[24][26][27][28] - Technology innovation is a key driver of business growth; the company has achieved comprehensive cooperation with Huawei Cloud Computing to explore the application of AI and big data in overseas warehouses and cross-border e-commerce, fully integrated DeepSeek, and was selected as a global service case by Amazon Web Services[30][32](index=32&type=chunk] BUSINESS OUTLOOK AND FUTURE STRATEGIES Despite global trade uncertainties, the cross-border e-commerce industry is rapidly growing, with overseas warehouse models becoming increasingly important for cost reduction, efficiency improvement, and tariff policy adaptation, driving the company's focus on technology, AI, and market expansion for sustainable growth - In the first half of 2025, China's GDP grew by 5.3% year-on-year, with total goods trade imports and exports reaching RMB 21.79 trillion, a year-on-year increase of 2.9%, of which exports grew by 7.2%[34][36] - China's cross-border e-commerce import and export volume reached RMB 1.32 trillion, a year-on-year increase of 5.7%, with industry trends shifting towards branding, localization, and refined operations[35][37] - The overseas warehouse model offers advantages over direct mail in reducing logistics costs, improving delivery timeliness and stability, and effectively addressing increased tariff costs and customs clearance uncertainties from recent cancellations of de minimis thresholds for small parcels in the US and Europe[35][37][38] - The company believes the overseas warehouse logistics market is vast and fragmented, with significant room for market share growth, and the industry is trending towards scale, automation, and digitalization[39][41] - Future strategies include: strengthening supply chain solution capabilities, increasing investment in IT infrastructure and SaaS platform development, optimizing customer structure, seeking strategic partnerships and M&A opportunities, and fully embracing AI and large model technologies[46][47] - Competitive advantages include: continuous R&D investment in technology and systems, strong global network coordination capabilities, deep insights into customer business scenarios, a high-quality and stable customer structure, an expanding overseas warehouse network, and deepened cooperation with major e-commerce platforms[43][45] FINANCIAL REVIEW Total revenue increased by 23.2% driven by last-mile fulfillment services, but gross profit declined by 19.5% due to lower gross margins, while the company maintained a healthy financial position with sufficient working capital Revenue by Service Type (RMB '000) | Service Type | 2025 | % of Total | 2024 | % of Total | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | First-mile International Freight Services | 68,414 | 7.4 | 115,560 | 15.5 | (40.8%) | | Last-mile Fulfillment Services | 850,247 | 92.6 | 629,836 | 84.5 | 35.0% | | Total | 918,661 | 100.0 | 745,396 | 100.0 | 23.2% | - The decrease in first-mile international freight services revenue was primarily due to reduced ocean container volume, lower freight rates, and the termination of air small parcel direct mail business in March 2024[49][50] - The increase in last-mile fulfillment services revenue was mainly due to an increase in order volume, but order prices decreased due to local delivery service market prices[49][50] Revenue by Country (RMB '000) | Country | 2025 | % of Total | 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | United States | 703,782 | 76.6 | 622,375 | 83.5 | | Canada | 69,896 | 7.6 | 40,621 | 5.4 | | United Kingdom | 44,163 | 4.8 | 36,267 | 4.9 | | Germany | 83,260 | 9.1 | 40,135 | 5.4 | | Australia | 17,560 | 1.9 | 5,998 | 0.8 | | Total | 918,661 | 100.0 | 745,396 | 100.0 | - Revenue from the United States, Canada, and Germany combined increased by RMB 153,807 thousand, primarily attributed to continuous investment in overseas warehouses and increased sales channel efforts in these regions[54] Cost of Sales by Service Type (RMB '000) | Service Type | 2025 | % of Total | 2024 | % of Total | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | First-mile International Freight Services | 65,289 | 7.9 | 116,877 | 18.6 | (44.1%) | | Last-mile Fulfillment Services | 759,017 | 92.1 | 511,265 | 81.4 | 48.5% | | Total | 824,306 | 100.0 | 628,142 | 100.0 | 31.2% | Cost of Sales by Nature (RMB '000) | Cost Category | 2025 | % of Total | 2024 | % of Total | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Logistics Costs | 520,650 | 63.2 | 450,402 | 71.7 | 15.6% | | Warehouse Operating Costs | 168,105 | 20.3 | 90,925 | 14.4 | 84.9% | | Staff Costs | 135,303 | 16.4 | 86,442 | 13.8 | 56.5% | | Share-based Payment Expenses | 248 | 0.1 | 373 | 0.1 | (33.5%) | | Total | 824,306 | 100.0 | 628,142 | 100.0 | 31.2% | Gross Profit and Gross Margin (Six Months Ended June 30, 2025) | Service Type | 2025 Gross Profit (RMB '000) | 2025 Gross Margin (%) | 2024 Gross Profit (RMB '000) | 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | First-mile International Freight Services | 3,125 | 4.6 | (1,317) | (1.1) | | Last-mile Fulfillment Services | 91,230 | 10.7 | 118,571 | 18.8 | | Total | 94,355 | 10.3 | 117,254 | 15.7 | - The decline in last-mile gross margin was primarily due to the ramp-up period of newly leased overseas warehouses in the second half of 2024 and first half of 2025, increased overseas order prices, overseas warehouse labor costs, and rental costs[70][72] - As of June 30, 2025, total debt was RMB 1,119,650 thousand, the debt-to-asset ratio was 34%, the current ratio was 1.5, and cash and bank deposits were RMB 301,131 thousand; the Board believes working capital is sufficient[76][77][78][79] Other Financial Information Pledged deposits increased, no significant contingent liabilities, total employees were 397, and 5 new overseas warehouses were leased; the company also engaged in financial investments, fund establishment, and a significant related party transaction involving a subsidiary's equity and acquisition - As of June 30, 2025, pledged deposits were RMB 44,003 thousand, a significant increase from RMB 14,164 thousand as of December 31, 2024[80][85] - As of the end of the review period, the Group had 397 employees, with total staff costs (including share-based payment expenses) of RMB 170,436 thousand[82][87] - During the review period, 5 new overseas warehouses were leased, located in the United States, Canada, and the United Kingdom, increasing total area by approximately 110,000 square meters[83][88] Financial Investment Overview (RMB '000) | Metric | Amount | | :--- | :--- | | Short-term Financial Investments | 49,278 | | Unrealized Investment Loss (at Fair Value) | (3,230) | | Realized Investment Income | 719 | - The company collaborated with Beijing Xizheng Private Equity Fund Management Co., Ltd. to establish two funds with an initial total size of RMB 200 million, with the Group intending to subscribe for no more than RMB 100 million, primarily investing in cross-border e-commerce innovation industries and AI technology, and smart warehousing[93][94][98] - A capital injection of RMB 83,800,000 by Beijing Liqian into PT Flexlogis Investment Indonesia resulted in the Group's equity interest in PT Flexlogis decreasing from 100% to 48.84%, making PT Flexlogis and its subsidiaries joint ventures of the Group, no longer subsidiaries[100][104][106][109] - A related party transaction was completed to acquire the entire equity of PT Samanea Logistics Property for approximately RMB 6,179,146, a company primarily engaged in logistics real estate investment and property management in Indonesia[108][111] Corporate Governance and Other Information Corporate Governance Overview The company maintains high standards of corporate governance, with its audit committee reviewing financial statements, strategically adopting an asset-light model, and complying with Listing Rules and anti-corruption policies - The Audit Committee has reviewed this report and the unaudited condensed consolidated financial statements, which were reviewed by Ernst & Young, independent auditors, in accordance with Hong Kong Standard on Review Engagements 2410[119][124] - The company adopts an asset-light model, optimizing operational efficiency and enhancing customer experience through improvements to the Eda Cloud Platform and investment in R&D activities[120][125] - The company is committed to maintaining high standards of corporate governance, having adopted and complied with the Corporate Governance Code set out in Part 2 of Appendix C1 and the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[126][127][128][129] - The company has established an anti-corruption risk management policy and continuously provides anti-corruption training to employees to promote a culture of integrity and compliance[123][125] Directors' and Shareholders' Interests As of June 30, 2025, directors and major shareholders held significant interests in the company's shares, with Mr. Liu Yong holding 37.8% and a group of directors and Samanea China Holdings Limited collectively holding 40.8% through concert party agreements Directors' and Chief Executive's Interests in Shares (As of June 30, 2025) | Name | Beneficial Owner (Shares) | Controlled Corporation Interest (Shares) | Other Interests (Shares) | Jointly Held Interests with Another Person (Shares) | Total (Shares) | % of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liu Yong | 15,414,000 | — | 152,295,000 | — | 167,709,000 | 37.8 | | Li Qin | 13,198,000 | — | — | — | 13,198,000 | 2.9 | | Zhang Wenyu | 3,314,000 | 10,269,000 | — | 167,391,000 | 180,974,000 | 40.8 | | Luo Jianfeng | — | 10,269,000 | — | 170,705,000 | 180,974,000 | 40.8 | | Zuo Manlun | — | 10,269,000 | — | 170,705,000 | 180,974,000 | 40.8 | - Mr. Liu Yong's interests include shares granted under the Pre-IPO Share Option Scheme and Restricted Share Unit Scheme, as well as shares held through trust structures[133][135] - The jointly held interests of Mr. Zhang Wenyu, Mr. Luo Jianfeng, and Mr. Zuo Manlun arise from a concert party agreement signed with Samanea China Holdings Limited[133][135] Other Shareholders' Interests in Shares (As of June 30, 2025) | Shareholder Name | Capacity | Number of Ordinary Shares Held (Shares) | % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Sovereign Fiduciaries (Hong Kong) Limited | Trustee | 152,295,000 | 34.3 | | Edaurora Holdings Limited | Beneficiary of Trust | 152,295,000 | 34.3 | | Skyline Investment International Limited | Controlled Corporation Interest | 152,295,000 | 34.3 | | EDA Shine International Limited | Beneficial Owner | 152,295,000 | 34.3 | | Samanea China Holdings Limited | Beneficial Owner/Controlled Corporation Interest/Jointly Held Interests | 180,974,000 | 40.8 | | China Lesso Group Holdings Limited | Controlled Corporation Interest | 180,974,000 | 40.8 | - The Lesso Consortium members (including Samanea China Holdings Limited and its affiliates) collectively hold approximately 40.1% of the company's shares and are considered controlling shareholders[233][238] Share Schemes The company operates Pre-IPO and Post-IPO Share Option and Restricted Share Unit Schemes to incentivize employees and attract talent, with repurchases made for future awards and specific grants under the Pre-IPO schemes - During the review period, the company repurchased 6,313,000 shares on the Stock Exchange for future share payment plans, with a total consideration of approximately RMB 16.0 million[144][149][399] - The Pre-IPO Share Option Scheme, adopted on May 14, 2024, granted options for a total of 31,212,000 shares to 32 grantees, representing 7.05% of the issued share capital[150][153][154][156][157] Changes in Pre-IPO Share Option Scheme (As of June 30, 2025) | Name/Category of Grantee | Number of Shares Subject to Unexercised Options as at January 1, 2025 | Granted during the Review Period | Vested during the Review Period | Number of Shares Subject to Unexercised Options as at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Liu Yong | 9,248,000 | — | — | 9,248,000 | | Li Qin | 7,919,000 | — | — | 7,919,000 | | Zhang Wenyu | 1,989,000 | — | — | 1,989,000 | | Li Hongjun (Senior Management Member) | 942,000 | — | 314,000 | 942,000 | | Employees (Other Grantees) | 8,029,500 | — | 2,676,500 | 8,029,500 | | Total | 28,127,500 | — | 2,990,500 | 28,127,500 | - The Post-IPO Share Option Scheme, adopted on May 14, 2024, has a 10-year validity, with a total number of shares that can be granted not exceeding 10% of the issued shares on the listing date (expected maximum of 21,997,000 shares), and a 12-month limit of 1% for a single participant; no grants, exercises, cancellations, or lapses occurred during the review period[163][165][169][170][173][174][178] - The Pre-IPO Restricted Share Unit Scheme, adopted on May 14, 2024, has a 3-year validity, granted a total of 12,770,000 restricted share units to 3 grantees, which fully vested 180 days after the listing date[182][187][192][193][194] Changes in Pre-IPO Restricted Share Unit Scheme (As of June 30, 2025) | Name/Category of Grantee | Outstanding as at January 1, 2025 | Outstanding as at June 30, 2025 | | :--- | :--- | :--- | | Liu Yong | 6,166,000 | 6,166,000 | | Li Qin | 5,279,000 | 5,279,000 | | Zhang Wenyu | 1,325,000 | 1,325,000 | | Total | 12,770,000 | 12,770,000 | - The Post-IPO Restricted Share Unit Scheme, adopted on May 14, 2024, has a 10-year validity, with a scheme limit of 21,997,000 shares (4.97% of issued shares), and a 12-month limit of 1% for a single participant; no restricted shares have been granted as of the reporting date[199][202][206][208][209][211][213] - The Share Award Scheme, adopted on February 14, 2025, has a 10-year validity, aiming to recognize and reward eligible participants' contributions and attract talent; the scheme limit is 44,293,050 shares (10% of issued shares), with a sub-limit for service providers of 4,429,305 shares (1%), and an individual limit of 1%; no shares have been granted as of the reporting date[215][216][217][221][222][223][228][230] Compliance and Other Disclosures Controlling shareholders comply with non-competition undertakings, no director information changes, global offering proceeds were utilized for strategic initiatives, an interim dividend was declared, and a post-period partnership for digital asset payment solutions was formed - The company's controlling shareholders (including Mr. Liu Yong and his affiliates, and the Lesso Consortium members) have entered into a non-competition undertaking, which independent non-executive directors have reviewed and confirmed its compliance and effective enforcement[232][233][234][235][236][238][239] - During the review period, there were no changes in directors' information requiring disclosure under Rule 13.51B(1) of the Listing Rules[240][241] Use of Net Proceeds from Global Offering (As of June 30, 2025) | Intended Use | Expected Utilization Ratio Disclosed in Prospectus (%) | Expected Utilized Amount (HKD Million) | Amount Utilized as of June 30, 2025 (HKD Million) | Balance as of June 30, 2025 (HKD Million) | Expected Time of Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Strengthening Global Logistics Network | 62 | 100.0 | 91.4 | 8.6 | On or before May 31, 2027 | | Improving Smart Systems to Optimize Operational Efficiency | 16 | 25.8 | 6.3 | 19.5 | On or before May 31, 2027 | | Attracting New Customers and Maintaining Relationships with Core Customers | 16 | 25.8 | 10.5 | 15.3 | On or before May 31, 2027 | | General Working Capital | 6 | 9.7 | 9.7 | — | On or before May 31, 2027 | | Total | 100 | 161.3 | 117.9 | 43.4 | | - The Board has resolved to declare an interim dividend of HKD 3.5 cents per ordinary share for the six months ended June 30, 2025, expected to be distributed on or about October 31, 2025[245][248] - After the reporting period, on August 27, 2025, the company entered into a cooperation agreement with UTCPAY Limited to provide digital asset payment service solutions for cross-border e-commerce customers, which is considered a normal operating activity within the company's regular business scope[247][250][251][252] Report on Review of Condensed Consolidated Financial Statements Independent Auditor's Review Report Ernst & Young reviewed the condensed consolidated financial information for the six months ended June 30, 2025, in accordance with HKSRS 2410, and found no material non-compliance with HKAS 34, though no audit opinion is expressed - Independent auditors Ernst & Young reviewed the company's condensed consolidated financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[253][254][256][258] - The scope of the review is substantially less than an audit, and therefore no audit opinion is expressed[256][258] - Based on the review, nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[257][259] Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, revenue increased by 23.2% to RMB 918,661 thousand, but profit for the period decreased by 35.6% to RMB 19,303 thousand, with total comprehensive income at RMB 18,831 thousand and basic and diluted EPS at RMB 0.04 Overview of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30, 2025) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 918,661 | 745,396 | | Cost of Sales | (824,306) | (628,142) | | Gross Profit | 94,355 | 117,254 | | Other Income and Gains | 14,328 | 6,504 | | Selling and Distribution Expenses | (9,811) | (7,891) | | Administrative Expenses | (36,301) | (47,963) | | Research and Development Expenses | (10,583) | (17,488) | | Reversal of Impairment Losses on Financial and Contract Assets / (Impairment Losses) Net | 4,377 | (5,322) | | Other Expenses | (9,984) | (2,501) | | Finance Costs | (26,570) | (5,769) | | Share of Results of Joint Ventures | (97) | — | | Profit Before Tax | 19,714 | 36,824 | | Income Tax Expense | (411) | (6,866) | | Profit for the Period | 19,303 | 29,958 | | Exchange Differences Arising from Translation of Foreign Operations | (472) | (239) | | Total Comprehensive Income for the Period | 18,831 | 29,719 | | Profit Attributable to Owners of the Parent | 19,303 | 29,958 | | Total Comprehensive Income Attributable to Owners of the Parent | 18,831 | 29,719 | | Basic Earnings Per Share (RMB) | 0.04 | 0.08 | | Diluted Earnings Per Share (RMB) | 0.04 | 0.08 | Interim Condensed Consolidated Statement of Financial Position Financial Position Overview As of June 30, 2025, total assets less current liabilities were RMB 1,435,423 thousand, with net assets of RMB 587,664 thousand, reflecting increased right-of-use assets, investments in joint ventures, borrowings, and lease liabilities Financial Position Overview (As of June 30, 2025) | Metric | 2025 June 30 (RMB '000) | 2024 December 31 (RMB '000) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 29,986 | 14,033 | | Right-of-use Assets | 866,005 | 735,965 | | Investments in Joint Ventures | 96,622 | 45,461 | | Total Non-current Assets | 1,202,644 | 1,053,100 | | Current Assets | | | | Trade Receivables | 167,819 | 197,366 | | Prepayments, Deposits and Other Receivables | 213,991 | 92,102 | | Cash and Bank Deposits | 301,131 | 310,045 | | Total Current Assets | 732,219 | 652,226 | | Current Liabilities | | | | Trade Payables | 118,169 | 148,261 | | Borrowings | 200,054 | 118,938 | | Lease Liabilities (Current Portion) | 106,564 | 85,176 | | Total Current Liabilities | 499,440 | 423,874 | | Net Current Assets | 232,779 | 228,352 | | Total Assets Less Current Liabilities | 1,435,423 | 1,281,452 | | Non-current Liabilities | | | | Lease Liabilities (Non-current Portion) | 813,032 | 675,872 | | Other Financial Liabilities | 26,048 | — | | Total Non-current Liabilities | 847,759 | 685,241 | | Net Assets | 587,664 | 596,211 | | Total Equity | 587,664 | 596,211 | - Right-of-use assets increased from RMB 735,965 thousand to RMB 866,005 thousand, reflecting overseas warehouse expansion[264][265] - Investments in joint ventures increased from RMB 45,461 thousand to RMB 96,622 thousand, primarily due to capital injection into PT Flexlogis Investment Indonesia[264][265] - Borrowings increased from RMB 118,938 thousand to RMB 200,054 thousand, and total lease liabilities increased from RMB 761,048 thousand to RMB 919,596 thousand[264][265][266] Interim Condensed Consolidated Statement of Changes in Equity Equity Changes Overview Total equity decreased from RMB 596,211 thousand to RMB 587,664 thousand for the six months ended June 30, 2025, influenced by profit for the period, exchange fluctuations, declared dividends, share repurchases, and loss of subsidiary control Overview of Equity Changes (Six Months Ended June 30, 2025) | Item | Share Capital (RMB '000) | Treasury Shares (RMB '000) | Share Premium (RMB '000) | Capital Reserve (RMB '000) | Statutory Surplus Reserve (RMB '000) | Share-based Payment Reserve (RMB '000) | Exchange Fluctuation Reserve (RMB '000) | Retained Profits (RMB '000) | Total Equity (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As at December 31, 2024 | 31,493 | — | 154,761 | 200,055 | 19,160 | 52,545 | (80) | 138,288 | 596,211 | | Profit for the period | — | — | — | — | — | — | — | 19,303 | 19,303 | | Exchange differences | — | — | — | — | — | — | (472) | — | (472) | | Recognition of share-based payment expenses | — | — | — | — | — | 2,865 | — | — | 2,865 | | Final dividend declared for 2024 | — | — | — | (14,246) | — | — | — | — | (14,246) | | Loss of control of a subsidiary | — | — | — | — | — | — | 46 | — | 46 | | Shares repurchased for share payment scheme | — | (16,043) | — | — | — | — | — | — | (16,043) | | Appropriation to statutory surplus reserve | — | — | — | — | 3,023 | — | — | (3,023) | — | | As at June 30, 2025 | 31,493 | (16,043) | 154,761 | 185,809 | 22,183 | 55,410 | (506) | 154,568 | 587,664 | - RMB 16,043 thousand was recognized under treasury shares, reflecting the repurchase of shares for the share payment scheme[268] - Capital reserve decreased by RMB 14,246 thousand due to the final dividend declared for 2024[268] - Statutory surplus reserve increased by RMB 3,023 thousand, with a corresponding decrease in retained profits[268] Interim Condensed Consolidated Statement of Cash Flows Cash Flows Overview For the six months ended June 30, 2025, net cash from operating activities increased to RMB 73,162 thousand, while investing activities used RMB 72,418 thousand and financing activities used RMB 60,249 thousand, resulting in a net decrease in cash and cash equivalents of RMB 59,505 thousand Overview of Cash Flows (Six Months Ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 73,162 | 48,362 | | Net Cash Flows Used in Investing Activities | (72,418) | (158,836) | | Net Cash Flows Used in Financing Activities | (60,249) | 200,006 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (59,505) | 89,532 | | Cash and Cash Equivalents at Beginning of Period | 295,787 | 221,009 | | Effect of Exchange Rate Changes, Net | 225 | 801 | | Cash and Cash Equivalents at End of Period | 236,507 | 311,342 | - Net cash flow from operating activities increased, primarily due to a decrease in trade receivables and an increase in other payables and accruals[272] - Net cash flow used in investing activities decreased, primarily due to reduced expenditure on purchasing other financial assets and increased proceeds from disposal of other financial assets[273] - Cash flow from financing activities shifted from a net inflow in the prior period to a net outflow, mainly due to reduced new borrowings, increased repayment of borrowings, dividend payments, and repayment of lease liabilities[273] Notes to Interim Condensed Consolidated Financial Statements 1. CORPORATE AND GROUP INFORMATION The company, incorporated in the Cayman Islands, primarily provides first-mile international freight services and last-mile fulfillment services, including overseas warehousing, other value-added services, and delivery, for cross-border e-commerce participants in mainland China - The company is incorporated in the Cayman Islands, with its principal business being the provision of first-mile international freight services and last-mile fulfillment services, including overseas warehousing, value-added services, and delivery, serving cross-border e-commerce participants in mainland China[277][278][280] 2. BASIS OF PREPARATION The interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34, using the historical cost convention, and presented in RMB, with all amounts rounded to the nearest thousand - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting," using the historical cost convention, and presented in RMB[279][281] 3. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES The revised Hong Kong Accounting Standard 21 "Lack of Exchangeability" was adopted for the first time in this period's financial information, but it had no significant impact on the interim condensed consolidated financial information as the Group's transaction and functional currencies are convertible - The revised Hong Kong Accounting Standard 21 "Lack of Exchangeability" was adopted for the first time, but it had no impact on the interim condensed consolidated financial information as the Group's transaction and functional currencies are convertible[282][283][286][287] 4. OPERATING SEGMENT INFORMATION The Group primarily engages in first-mile international freight and last-mile fulfillment services, with no separate operating segment data presented as the Board manages the Group as a single entity; revenue and non-current assets are concentrated in the US, Canada, and Germany, and a single external customer accounted for 10.8% of total revenue - The Group primarily engages in first-mile international freight services and last-mile fulfillment services, and no separate operating segment information is presented as the Board views the Group as a whole for resource allocation and performance assessment[284][285][288] Revenue from External Customers by Location of Service Provision (RMB '000) | Region | 2025 | 2024 | | :--- | :--- | :--- | | China | 68,414 | 115,560 | | United States | 647,178 | 516,775 | | Canada | 65,573 | 38,361 | | United Kingdom | 39,516 | 31,635 | | Germany | 81,069 | 37,275 | | Australia | 16,911 | 5,790 | | Total | 918,661 | 745,396 | Non-current Assets by Location of Assets (RMB '000) | Region | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | China | 107,085 | 180,588 | | United States | 748,389 | 642,284 | | United Kingdom | 85,425 | 20,296 | | Canada | 5,391 | 3,439 | | Germany | 97,141 | 92,189 | | Indonesia | 51,258 | 21,550 | | Australia | 226 | 258 | | Total | 1,094,915 | 960,604 | - For the six months ended June 30, 2025, transaction revenue from a single external customer accounted for 10.8% of the Group's total revenue[293][296] 5. REVENUE, OTHER INCOME AND GAINS For the six months ended June 30, 2025, total revenue was RMB 918,661 thousand, primarily from last-mile fulfillment services, with other income and gains significantly increasing to RMB 14,328 thousand due to gains from loss of control over a subsidiary, credit card rebates, and rental income Revenue by Service Type (RMB '000) | Service Type | 2025 | 2024 | | :--- | :--- | :--- | | First-mile International Freight Services | 68,414 | 115,560 | | Last-mile Fulfillment Services | 850,247 | 629,836 | | Total | 918,661 | 745,396 | - All revenue is recognized for services transferred over time[300] Other Income and Gains (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest income | 1,175 | 2,416 | | Government grants | — | 32 | | Surcharge for overdue balances | 645 | 609 | | Net exchange gains | 238 | 2,089 | | Gains from fair value changes of financial assets at fair value through profit or loss | — | 558 | | Rebates from credit cards | 2,065 | 342 | | Rental income | 1,158 | — | | Gains on bargain purchase | 192 | — | | Gains on loss of control of a subsidiary | 7,714 | — | | Others | 1,141 | 458 | | Total | 14,328 | 6,504 | - Gains on loss of control of a subsidiary of RMB 7,714 thousand were the primary reason for the increase in other income and gains during this period[302][303] 6. FINANCE COSTS For the six months ended June 30, 2025, finance costs significantly increased to RMB 26,570 thousand, primarily due to a substantial rise in interest expenses on lease liabilities Analysis of Finance Costs (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest expense on borrowings | 2,733 | 1,075 | | Interest expense on lease liabilities | 23,837 | 4,694 | | Total | 26,570 | 5,769 | - Interest expense on lease liabilities significantly increased from RMB 4,694 thousand in the prior period to RMB 23,837 thousand[306][307] 7. PROFIT BEFORE TAX For the six months ended June 30, 2025, profit before tax decreased to RMB 19,714 thousand from RMB 36,824 thousand, mainly due to increased last-mile fulfillment costs, right-of-use asset depreciation, finance costs, and R&D expenses, despite some offsetting gains Profit Before Tax Adjustment Items (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of providing first-mile international freight services | 65,289 | 116,877 | | Cost of providing last-mile fulfillment services | 759,017 | 511,265 | | Depreciation of property, plant and equipment | 3,962 | 1,608 | | Depreciation of right-of-use assets | 67,813 | 22,428 | | Amortization of other intangible assets | 3,665 | 3,665 | | Listing expenses | — | 10,454 | | Share-based payment expenses | 2,865 | 16,180 | | Research and development expenses | 10,583 | 17,488 | | Fair value changes of financial assets | 2,511 | (558) | | (Reversal of impairment losses)/impairment losses on trade receivables | (4,377) | 5,329 | | Gains on loss of control of a subsidiary | (7,714) | — | - Depreciation of right-of-use assets significantly increased from RMB 22,428 thousand to RMB 67,813 thousand, a major factor in cost increases[309][310] - R&D expenses decreased from RMB 17,488 thousand to RMB 10,583 thousand[309][310] 8. INCOME TAX EXPENSE For the six months ended June 30, 2025, total income tax expense significantly decreased to RMB 411 thousand, primarily due to deferred tax reversal and changes in current tax expenses across various regions, with mainland China subsidiaries benefiting from preferential tax rates Analysis of Income Tax Expense (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax | | | | Mainland China | 3,546 | 3,297 | | Hong Kong | 504 | 2,828 | | United States | 1,410 | 384 | | Canada | 832 | 251 | | Germany | 1,660 | 239 | | United Kingdom | 248 | 73 | | Australia | 106 | 48 | | Indonesia | 44 | — | | Total current tax | 8,350 | 7,120 | | Deferred tax | (7,939) | (254) | | Total tax expense for the period | 411 | 6,866 | - Mainland China subsidiaries enjoy a 15% preferential corporate income tax rate, including high-tech enterprise qualifications and preferential policies in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone[314][315][319] - US subsidiaries have a federal tax rate of 21% and state tax rates ranging from 5.39% to 9%; UK profit tax rate is 19%, Canada profit tax rate is 26.5%, Germany profit tax rate is 32.8%, and Australia profit tax rate is 30%[321][322] 9. DIVIDENDS The Board has declared an interim dividend of HKD 3.5 cents per ordinary share for the six months ended June 30, 2025, totaling HKD 15,500,000, expected to be distributed on or about October 31, 2025 Dividend Declaration (Six Months Ended June 30, 2025) | Item | HKD per share | HKD '000 | Equivalent RMB '000 | | :--- | :--- | :--- | :--- | | Final dividend declared for 2024 | 0.35 | 15,500 | 14,246 | | Less: Dividend on shares held for share payment scheme | 0.35 | (168) | - | | Total | | 15,332 | 14,246 | - Subsequent to the reporting period, the Board has declared an interim dividend of HKD 3.5 cents per ordinary share for the six months ended June 30, 2025, totaling HKD 15,500,000, to be distributed on or about October 31, 2025[326] 10. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT For the six months ended June 30, 2025, basic and diluted earnings per share both decreased to RMB 0.04 from RMB 0.08 in the prior period, calculated based on profit attributable to ordinary equity holders and adjusted weighted average ordinary shares outstanding Earnings Per Share Calculation (Six Months Ended June 30, 2025) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit (RMB '000) | 19,303 | 29,958 | | Weighted average number of ordinary shares in issue | 440,569,439 | 360,114,033 | | Dilutive effect - share option scheme adjustment | 21,363,125 | 6,365,833 | | Dilutive effect - restricted share unit adjustment | 12,770,000 | 2,604,501 | | Adjusted weighted average number of ordinary shares in issue for calculating diluted earnings per share | 474,702,564 | 369,084,367 | | Basic earnings per share (RMB) | 0.04 | 0.08 | | Diluted earnings per share (RMB) | 0.04 | 0.08 | - Both basic and diluted earnings per share decreased from RMB 0.08 in the prior period to RMB 0.04[330][331] 11. PROPERTY, PLANT AND EQUIPMENT During the review period, the total cost of property, plant, and equipment purchased by the company was RMB 19,420,000, with depreciation of RMB 3,962,000 recognized - Total cost of property, plant, and equipment purchased during the period was RMB 19,420,000, an increase from RMB 8,970,000 in the prior period[334] - Depreciation of RMB 3,962,000 was recognized, and property, plant, and equipment with a total carrying amount of RMB 17,000 were disposed of[334] 12. INVESTMENT PROPERTIES During the review period, the company added RMB 29,894,000 in investment properties and disposed of RMB 50,786,000 in investment properties due to loss of control over a subsidiary - Additions to investment properties during the period amounted to RMB 29,894,000[336] - Investment properties of RMB 50,786,000 were disposed of due to loss of control over a subsidiary[336] 13. LEASES During the review period, the company additionally recognized right-of-use assets with a total cost of RMB 188,628,000 and recognized depreciation of RMB 67,813,000. Concurrently, new lease liabilities of RMB 188,628,000 were recognized, lease liabilities of RMB 63,147,000 were paid, and interest expenses of RMB 23,837,000 were recognized - During the period, additional right-of-use assets with a total cost of RMB 188,628,000 were recognized, and depreciation of RMB 67,813,000 was recognized[337][340] - During the period, new lease liabilities of RMB 188,628,000 were recognized, lease liabilities of RMB 63,147,000 were paid, and interest expenses of RMB 23,837,000 were recognized[338][341] 14. GOODWILL As of June 30, 2025, the company's goodwill balance was RMB 76,443 thousand, consistent with December 31, 2024 Goodwill Balance (RMB '000) | Date | Amount | | :--- | :--- | | As at June 30, 2025 | 76,443 | | As at December 31, 2024 | 76,443 | 15. OTHER INTANGIBLE ASSETS During the review period, the company neither acquired nor disposed of intangible assets, but recognized amortization of RMB 3,665,000 - No intangible assets were acquired or disposed of during the period, and amortization of RMB 3,665,000 was recognized[344][346] 16. INVESTMENTS IN JOINT VENTURES As of June 30, 2025, investments in joint ventures significantly increased to RMB 96,622 thousand, primarily including Hubei Ezhou Yida Cloud Enterprise Management Partnership and PT Flexlogis Investment Indonesia Investments in Joint Ventures (RMB '000) | Date | Amount | | :--- | :--- | | As at June 30, 2025 | 96,622 | | As at December 31, 2024 | 45,461 | Details of Major Joint Ventures | Name | Place of Registration | Group's Attributable Ownership Interest (%) | Principal Activities | | :--- | :--- | :--- | :--- | | Hubei Ezhou Yida Cloud Enterprise Management Partnership (Limited Partnership) | Mainland China | 49.95 | Investment | | PT Flexlogis Investment Indonesia | Indonesia | 48.84 | Property Investment | 17. DEFERRED TAX As of June 30, 2025, deferred tax liabilities totaled RMB 248,618 thousand and assets RMB 258,225 thousand, primarily from right-of-use assets and lease liabilities, with no recognition for Hong Kong tax losses or mainland China undistributed profit withholding tax due to business development