WEIli Holdings (2372) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell 10.2% YoY to RMB57.1m as major customers temporarily reduced transfer-paper and laminated-paper orders; net loss narrowed to RMB2.3m from RMB3.9m.

• Basic loss per share improved to RMB0.3 cents from RMB0.5 cents; no interim dividend was recommended.

Financial highlights

• Revenue was RMB57.061m vs RMB63.631m YoY; cost of sales was RMB52.034m vs RMB58.429m.

• Gross profit declined 3.8% to RMB5.0m; gross margin improved to 8.8% from 8.2%.

• Operating loss was RMB3.273m vs RMB4.765m; loss before tax was RMB3.112m vs RMB3.752m.

• Net loss narrowed to RMB2.263m from RMB3.864m, mainly on lower administrative expenses from cost controls.

Outlook and guidance

• Major customer orders are expected to resume in H2 2024; management views the order reduction and QR Code Packaging Revision impact as temporary.

• Remaining unutilised listing proceeds are expected to be used by 31 December 2025, including capacity and efficiency projects delayed by temporary order weakness.