WEIli Holdings (2372) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 41.4% YoY to RMB112.0m; gross profit fell 81.5% to RMB3.3m, and shareholder loss widened to RMB9.5m.

• Temporary order reductions by major customers during a tendering gap, together with an impairment provision for long-term assets, materially hurt results.

Financial highlights

• Revenue was RMB111.977m vs RMB190.944m in FY2023; cost of sales was RMB108.726m vs RMB173.347m.

• Gross profit was RMB3.251m vs RMB17.597m; operating loss was RMB12.047m vs RMB4.934m.

• Loss before tax was RMB11.709m vs RMB3.894m; income tax credit was RMB2.219m vs RMB1.334m; net loss was RMB9.490m vs RMB2.560m.

• Basic and diluted loss per share was RMB1.2 cents vs RMB0.3 cents.

Outlook and guidance

• Management plans to optimise resources, pursue business opportunities supporting long-term growth, and use its expertise to seek market-share gains.

• Demand for mid-to-high-end cigarettes and packaging paper with advanced technical features is expected to increase, supported by industry premiumisation and rising purchasing power.