ShenZhen Woer Heat-Shrinkable Material (002130) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached ¥1.76 billion, up 26.60% year-over-year, driven by growth in electronic materials, communication cables, and new energy vehicle products.

• Net profit attributable to shareholders was ¥250.39 million, a 35.86% increase year-over-year, with adjusted net profit up 39.48%.

• Cash flow from operating activities rose 136.66% year-over-year to ¥124.18 million, reflecting stronger sales and collections.

Financial highlights

• Gross margin improved to 32.53% from 27.79% year-over-year.

• Basic and diluted EPS were ¥0.2009, up from ¥0.1463 year-over-year.

• Total assets increased 6.37% from year-end 2024 to ¥10.92 billion; shareholders’ equity rose 4.15% to ¥5.76 billion.

• R&D expenses grew 20.57% year-over-year to ¥94.13 million, supporting product innovation.

• Financial expenses decreased 30.25% year-over-year due to lower interest costs.

Outlook and guidance

• Continued focus on expanding overseas markets, with new subsidiaries and production base established in Malaysia.

• Implementation of employee stock ownership and stock option incentive plans to align interests and drive growth.