Weixing New Materials' revenue and net profit are both expected to decline in 2025, with cash flow increasing by 2.70% year-over-year.

Blue Whale News, April 2: On April 2, Zhejiang Weixing New Materials released its 2025 performance report. The data show that Weixing Co., Ltd. achieved operating revenue of RMB 5.38B in 2025, down 14.12% year over year; net profit attributable to shareholders was RMB 741 million, down 22.24% year over year; and non-recurring profit or loss adjusted net profit was RMB 684 million, down 25.37% year over year.

The gross margin fell by 0.83 percentage points year over year. Combined with the decline in bank interest rates that led to a significant reduction in deposit interest and wealth management product returns, it further compressed profit margins. Although selling expenses fell 13.55% year over year, slightly faster than the revenue decline, providing some support for profits, rigid expenses such as administrative expenses were not reduced in proportion to the year-over-year decline in revenue, weakening the effectiveness of cost control.

For the full year, net cash flow from operating activities was RMB 1.18B, up 2.70% year over year; however, the subtotal of cash inflows from operating activities fell 11.50% year over year, mainly due to a decrease in cash received from selling goods and providing services.

The product structure remains increasingly concentrated: the PPR series accounted for 46.31% of revenue, while the PE series accounted for 21.68%. Together, the two series made up nearly seventy percent of主营业务收入 (main business revenue), further improving compared with previous years.

The regional layout shows characteristics of “strong East China, stable in the central and western regions, and weak overseas”: East China’s revenue accounted for 50.90%, maintaining its position as the largest market; the shares for the western region and North China were 13.56% and 13.45%, respectively, basically unchanged; and overseas revenue accounted for 5.80%.

In terms of R&D, full-year R&D investment was RMB 174 million, down 9.43% year over year; there were 641 R&D personnel, down 26 from the previous year; and the R&D expense ratio was 3.23%, remaining relatively stable despite the revenue downturn.

Total non-recurring profit and loss was RMB 56.4658 million, accounting for 7.63% of net profit attributable to shareholders. Of this, investment income from associates and joint ventures was RMB 47.4363 million, and government subsidies included in current profit or loss (excluding parts unrelated to normal operations) were RMB 13.3265 million.

In the fourth quarter, the company reported single-quarter operating revenue of RMB 2.01B, net profit attributable to shareholders of RMB 201 million, and non-recurring profit or loss adjusted net profit of RMB 195 million. These figures accounted for 37.44%, 27.13%, and 28.51% of the corresponding full-year indicators, respectively.

Regarding dividends, the company used 1.57B shares after excluding repurchased shares as the base; for every 10 shares, it will distribute RMB 3.50 in cash dividends (tax included), totaling RMB 550 million; for 2025, cumulative cash dividends were RMB 707 million, accounting for 95.49% of net profit attributable to shareholders.