WEIli Holdings (2372) investor relations material

Executive summary

• H1 2026 revenue rose 43.2% YoY to RMB65.640m, while gross profit fell 70.1% to RMB2.017m and the period turned to a RMB14.390m net loss from RMB1.020m profit.

• Higher orders from major customers supported sales growth; higher unit manufacturing costs, weaker product mix and a specific customer impairment provision pressured results.

Financial highlights

• Revenue was RMB65.640m versus RMB45.844m; cost of sales rose to RMB63.623m from RMB39.109m.

• Gross profit declined 70.1% to RMB2.017m; gross margin fell to 3.1% from 14.7%.

• Net loss attributable to shareholders was RMB14.390m versus net profit of RMB1.020m; basic loss per share was RMB1.8 cents versus earnings of RMB0.1 cents.

• Net ECL impairment losses were RMB7.992m, versus a RMB2.734m reversal in H1 2025; the charge included a specific provision for one customer.

• Net operating cash generated was RMB12.145m versus RMB25.099m; cash and cash equivalents were RMB101.354m at 30 June 2026.

Outlook and guidance

• Board expects a positive near-term outlook for cigarette packaging paper, citing generally inelastic tobacco demand and anticipated growth in mid- to high-end cigarettes requiring advanced packaging paper.

• PRC smoker numbers are expected to remain stable in the foreseeable future despite government smoking-control policies.