WEIli Holdings FY2025: Gross Profit Jumps 248.5%, Net Loss Halved Amid 5.4% Revenue Dip

WEIli Holdings Limited reported FY2025 revenue of RMB 106.03 million, down 5.4% year on year, after deliberately scaling back low-margin orders.

Gross profit rose 248.5% to RMB 11.45 million, lifting gross margin to 10.8% from 2.9% a year earlier. The improvement stemmed from a more favorable product mix and tighter cost controls, which pushed cost of sales down 13.0% to RMB 94.57 million.

Loss attributable to shareholders narrowed 56.8% to RMB 4.10 million. Basic loss per share improved to RMB 0.5 cents from RMB 1.2 cents in FY2024. The Board proposed no final dividend.

Operating metrics showed mixed movements: • Selling expenses edged up 11.5% to RMB 5.75 million, reflecting higher sales commissions on finished products. • Administrative expenses slipped 2.7% to RMB 13.07 million due to head-count rationalisation. • A net ECL reversal of RMB 1.33 million contrasted with a RMB 1.10 million impairment loss in FY2024. • Other income fell to RMB 1.62 million (-67.6%) as government grants declined to RMB 0.23 million. • Finance costs dropped sharply to RMB 25,000 after the repayment of all bank borrowings.

Balance-sheet indicators remained solid: • Cash and cash equivalents climbed to RMB 89.24 million (31 Dec 2024: RMB 53.20 million). • Net current assets stood at RMB 166.86 million, while net assets totaled RMB 206.62 million. • The company carried no interest-bearing debt, bringing the gearing ratio to nil (31 Dec 2024: 1%). • Pledged assets comprised RMB 9.50 million of buildings and RMB 2.77 million of land-use rights securing bills payable.

Capital expenditure reached RMB 3.0 million, mainly for property, plant and equipment. No material capital commitments, contingent liabilities or post-balance-sheet events were disclosed.

Headcount fell slightly to 80 employees, and total staff costs decreased 9.9% to RMB 9.42 million.

Management noted that demand for higher-end cigarette packaging should underpin future growth, while the company will continue to optimize its product portfolio and maintain prudent capital management.