ShenZhen Woer Heat-Shrinkable Material (002130) Q1 2026 earnings summary

Executive summary

• Revenue increased by 15.52% year-over-year to ¥2.03 billion, driven by business expansion despite a decline in high-margin power and wind energy product sales.

• Net profit attributable to shareholders fell 7.63% year-over-year to ¥231 million, mainly due to lower gross margin and higher expenses.

• Gross margin declined as raw material costs rose and were not yet reflected in product prices.

• Significant increase in R&D, sales, and management expenses as part of ongoing market expansion and product development.

• H-share issuance completed in Q1, increasing total share capital and cash reserves.

Financial highlights

• Operating income: ¥2.03 billion, up 15.52% year-over-year.

• Net profit attributable to shareholders: ¥231 million, down 7.63% year-over-year.

• Basic EPS: ¥0.1726, down 14.09% year-over-year.

• Operating cash flow: ¥45.6 million, down 63.24% year-over-year.

• Total assets: ¥14.76 billion, up 19.78% from year-end 2025.

• Shareholders’ equity: ¥9.15 billion, up 40.84% from year-end 2025.

Outlook and guidance

• Continued focus on expanding market share and developing new products to enhance competitiveness.

• Ongoing investment in R&D and capacity expansion, particularly in communication cable and new materials.