WEIli Holdings (2372) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 5.4% to RMB106.0m as lower-margin orders were reduced; gross profit rose 248.5% to RMB11.5m on improved product mix and cost control.

• Net loss narrowed to RMB4.1m from RMB9.5m in FY2024; basic loss per share improved to RMB0.5 cents from RMB1.2 cents.

Financial highlights

• Revenue was RMB106.025m, down from RMB111.977m; cost of sales declined 13.0% to RMB94.571m.

• Gross profit rose to RMB11.454m from RMB3.251m; gross margin expanded to 10.8% from 2.9%.

• Loss before tax was RMB4.012m versus RMB11.709m; FY2025 income tax expense was RMB0.088m, compared with a FY2024 tax credit of RMB2.219m.

• Other income declined to RMB1.618m from RMB4.987m, mainly as government grants fell to RMB0.232m from RMB3.338m.

Outlook and guidance

• Management expects demand for mid- to high-end cigarettes and technically advanced packaging paper to grow, supported by industry focus on higher-end products and rising PRC purchasing power.

• Plans include prudent resource management and strategies to capture business opportunities and increase market share.

• Unutilised listing proceeds are planned for deployment as the cigarette packaging sector recovers; the timing will reflect the pace of recovery.