WEIli Holdings (2372) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 19.7% YoY to RMB45.844m as major customers temporarily reduced transfer- and laminated-paper orders; gross profit rose 34.0% to RMB6.735m and results turned to a RMB1.020m profit from a RMB2.263m loss.

• Improved profitability reflected cost controls, operational efficiency and a larger reversal of financial-asset loss allowances; management expects orders to recover in H2 2025.

Financial highlights

• Revenue was RMB45.844m versus RMB57.061m YoY; cost of sales declined 24.8% to RMB39.109m.

• Gross profit rose to RMB6.735m from RMB5.027m; gross margin improved to 14.7% from 8.8%.

• Operating profit was RMB1.124m versus an operating loss of RMB3.273m; net profit was RMB1.020m versus a net loss of RMB2.263m.

• Reversal of financial-asset loss allowances rose to RMB2.734m from RMB0.946m, mainly reflecting lower outstanding trade receivables.

• Selling expenses rose to RMB2.736m from RMB2.507m to support market development; administrative expenses fell to RMB6.146m from RMB7.317m.

Outlook and guidance

• Management expects temporarily reduced orders to resume in H2 2025 as major-customer product transitions finish and new orders move from trials and pilot batches to commercial scale.

• Newly secured customer products were in small-scale trials and pilot testing, while major customers transitioned to upgraded product models.

• No interim dividend was recommended for H1 2025.