伟立控股(02372) - 2025 - 中期业绩

Interim Results Summary Overview of Financial Performance Weili Holdings Limited, for the six months ended June 30, 2025, achieved gross profit growth and returned to profitability with positive basic earnings per share, despite a decrease in revenue, through effective cost control and operational efficiency improvements, while no interim dividend was declared | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 45.8 | 57.1 | -19.7% | | Gross Profit | 6.7 | 5.0 | +34.0% | | Profit/(Loss) Attributable to Shareholders | 1.0 (Profit) | (2.3) (Loss) | Returned to Profitability | | Basic Earnings/(Loss) Per Share | 0.1 cent (Profit) | (0.3) cent (Loss) | Turned Positive | | Interim Dividend | None | None | No Change | Interim Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company's revenue decreased by 19.7% year-on-year to RMB 45.8 million, but gross profit increased by 34.0% to RMB 6.7 million due to effective cost of sales control, successfully returning to profitability with RMB 1.0 million profit attributable to shareholders, compared to a loss of RMB 2.3 million in the prior period | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 45,844 | 57,061 | | Cost of Sales | (39,109) | (52,034) | | Gross Profit | 6,735 | 5,027 | | Operating Profit/(Loss) | 1,124 | (3,273) | | Profit/(Loss) for the Period | 1,020 | (2,263) | | Profit/(Loss) Attributable to Shareholders | 1,020 | (2,263) | | Basic Earnings/(Loss) Per Share | 0.1 cent | (0.3) cent | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's total comprehensive profit for the period was RMB 1.02 million, consistent with profit for the period, indicating no other comprehensive income items, compared to a total comprehensive loss of RMB 2.263 million in the prior period | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 1,020 | (2,263) | | Other Comprehensive Income | – | – | | Total Comprehensive Profit/(Loss) for the Period | 1,020 | (2,263) | | Profit/(Loss) Attributable to Shareholders | 1,020 | (2,263) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets slightly decreased to RMB 258.673 million, but net current assets increased. Total equity attributable to shareholders rose to RMB 211.74 million, while total liabilities decreased | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | ASSETS | | | | Non-current Assets | 42,860 | 45,158 | | Current Assets | 215,813 | 216,589 | | Total Assets | 258,673 | 261,747 | | EQUITY | | | | Total Equity | 211,740 | 210,720 | | LIABILITIES | | | | Non-current Liabilities | 1,520 | 1,542 | | Current Liabilities | 45,413 | 49,485 | | Total Liabilities | 46,933 | 51,027 | | Total Equity and Liabilities | 258,673 | 261,747 | | Net Current Assets | 170,400 | 167,104 | Notes to the Interim Condensed Consolidated Financial Information General Information Weili Holdings Limited was incorporated in the Cayman Islands on April 21, 2021, primarily engaged in manufacturing and selling cigarette packaging paper in China. The company's shares have been listed on the Main Board of the Hong Kong Stock Exchange since June 30, 2022, and the interim financial information is presented in RMB and is unaudited - The company was incorporated in the Cayman Islands on April 21, 2021, primarily engaged in the manufacturing and sale of cigarette packaging paper in China[12] - The company's shares have been listed on the Main Board of the Hong Kong Stock Exchange since June 30, 2022[12] - This interim financial information is presented in RMB and is unaudited[12][13] Basis of Preparation The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and should be read in conjunction with the 2024 annual consolidated financial statements. Revisions to Hong Kong Financial Reporting Standards were first applied in this period but had no significant impact on financial position or performance - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[14] - Revisions to Hong Kong Financial Reporting Standards were first applied in this interim period but had no significant impact on the Group's financial position and performance[15] Revenue and Segment Information The company primarily manufactures and sells cigarette packaging paper, with management viewing the business as a single segment. For the six months ended June 30, 2025, revenue mainly derived from the sale of cigarette packaging paper and raw materials, with processing service income being a smaller component. All revenue originated from external customers in China, with significant changes in the proportion of total revenue contributed by Customer 1 and Customer 2 - The Group is primarily engaged in the manufacturing and sale of cigarette packaging paper, and management considers the business as a single segment[16] Revenue by Source | Source of Revenue | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale of cigarette packaging paper and raw materials | 45,451 | 57,055 | | Processing service income | 393 | 6 | | Total Revenue | 45,844 | 57,061 | Revenue by Customer | Customer | 2025 % of Total Revenue | 2024 % of Total Revenue | | :--- | :--- | :--- | | Customer 1 | 47% | 19% | | Customer 2 | 16% | 41% | Expenses by Nature For the six months ended June 30, 2025, the company's total expenses decreased to RMB 47.991 million from RMB 61.858 million in the prior period, primarily due to a significant reduction in the cost of raw materials and goods used | Expense Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials and goods used | 36,013 | 49,310 | | Staff costs | 4,773 | 5,557 | | Depreciation of property, plant and equipment and right-of-use assets | 1,905 | 1,543 | | Travel and entertainment expenses | 1,327 | 891 | | Professional service fees | 975 | 1,022 | | Freight charges | 725 | 1,166 | | Miscellaneous expenses | 145 | 358 | | Total | 47,991 | 61,858 | Income Tax Expense/(Credit) For the six months ended June 30, 2025, the company recorded an income tax expense of RMB 0.381 million, compared to an income tax credit of RMB 0.849 million in the prior period, primarily due to a shift from loss to profit. The company's Chinese subsidiaries, as high-tech enterprises, enjoy a preferential income tax rate of 15% and a 200% super deduction for R&D expenses | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax — China current tax | – | (351) | | Deferred income tax | 381 | (498) | | Income Tax Expense/(Credit) | 381 | (849) | - Entities registered in the Cayman Islands and British Virgin Islands are exempt from local taxation[21] - Hong Kong subsidiaries made no provision for Hong Kong profits tax due to no estimated assessable profits[22] - Chinese subsidiaries, as high-tech enterprises, enjoy a preferential income tax rate of 15% and can deduct 200% of qualified R&D expenses as tax-deductible expenses[23] Cayman Islands and British Virgin Islands Profits Tax The company and its British Virgin Islands subsidiaries, as exempted companies, are not subject to taxation in the Cayman Islands and British Virgin Islands - The Company and its subsidiaries incorporated in the British Virgin Islands are exempted companies and are not subject to Cayman Islands and British Virgin Islands taxation[21] Hong Kong Profits Tax Hong Kong-incorporated subsidiaries are subject to profits tax at a rate of 16.5%, but no provision was made due to no estimated assessable profits during the reporting period - Hong Kong subsidiaries are subject to profits tax at a rate of 16.5%, but no provision was made due to no estimated assessable profits[22] PRC Enterprise Income Tax Chinese subsidiaries, as high-tech enterprises, enjoy a preferential income tax rate of 15% and can deduct 200% of qualified R&D expenses as tax-deductible expenses - Chinese subsidiaries are approved as high-tech enterprises, enjoying a preferential income tax rate of 15%[23] - Enterprises engaged in R&D activities are entitled to claim 200% of qualified R&D expenses as tax-deductible expenses (super deduction)[23] Earnings/(Loss) Per Share For the six months ended June 30, 2025, the company achieved basic earnings per share of RMB 0.1 cent, turning around from a basic loss per share of RMB 0.3 cent in the prior period. Diluted earnings per share were the same as basic earnings per share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Shareholders (RMB thousand) | 1,020 | (2,263) | | Weighted average number of ordinary shares (thousand shares) | 800,000 | 800,000 | | Basic Earnings/(Loss) Per Share (RMB) | 0.1 cent | (0.3) cent | - Diluted earnings/(loss) per share for the six months ended June 30, 2025 and 2024 were identical to basic earnings/(loss) per share[26] Basic Basic earnings per share is calculated by dividing the profit attributable to the company's shareholders for the period by the weighted average number of ordinary shares in issue, which was RMB 0.1 cent for the current period - Basic earnings/(loss) per share is calculated by dividing the profit/(loss) attributable to the company's shareholders for the period by the weighted average number of ordinary shares in issue[24] Diluted Diluted earnings/(loss) per share for the six months ended June 30, 2025 and 2024 were identical to basic earnings/(loss) per share, indicating no potential dilutive ordinary shares - Diluted earnings/(loss) per share for the six months ended June 30, 2025 and 2024 were identical to basic earnings/(loss) per share[26] Dividends The Board has resolved not to recommend the declaration of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Company did not declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[27] Trade Receivables As of June 30, 2025, net trade receivables significantly decreased to RMB 67.325 million from RMB 104.249 million as of December 31, 2024. The credit period generally ranges from 60 to 180 days, and the aging analysis shows a decrease in receivables across all terms Trade Receivables - Net | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 71,513 | 111,282 | | Less: Loss allowance | (4,188) | (7,033) | | Trade receivables — net | 67,325 | 104,249 | - The credit period for trade receivables generally ranges from 60 to 180 days from the invoice date[28] Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 21,744 | 29,245 | | 31 to 90 days | 9,256 | 15,255 | | 91 to 180 days | 5,671 | 30,409 | | 181 days to 1 year | 17,758 | 15,530 | | Over 1 year | 17,084 | 20,843 | | Total | 71,513 | 111,282 | Bills Receivable As of June 30, 2025, bills receivable amounted to RMB 8.942 million, a decrease from RMB 10.722 million as of December 31, 2024. No bills receivable measured at fair value through other comprehensive income were pledged as collateral at the end of the period Bills Receivable | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bills receivable | 8,942 | 10,722 | - As of June 30, 2025, the Group had no bills receivable measured at fair value through other comprehensive income pledged to secure the Group's bills payable (December 31, 2024: RMB 3,000,000)[30] Trade and Other Payables As of June 30, 2025, total trade and other payables slightly decreased to RMB 45.403 million from RMB 47.485 million as of December 31, 2024, with a reduction in trade payables and an increase in bills payable Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 27,404 | 32,067 | | Bills payable | 15,600 | 9,694 | | Accrued staff welfare | 986 | 1,460 | | Other accrued expenses | 1,106 | 3,864 | | Refund liabilities | 261 | 215 | | Other taxes payable other than income tax liabilities | 46 | 185 | | Total | 45,403 | 47,485 | - Aging analysis of trade payables shows a significant increase in payables within 30 days, while payables from 91 to 180 days and over 1 year decreased[31] - As of June 30, 2025, bills payable were secured by the Group's bank deposits, buildings, and land use rights[32] Share Capital As of June 30, 2025, and December 31, 2024, the company's authorized ordinary share capital remained unchanged at 10,000,000 thousand shares, with 800,000 thousand shares issued and share capital of RMB 6.842 million Share Capital | Item | Number of Shares (thousand shares) | Amount (RMB thousand) | | :--- | :--- | :--- | | Authorized ordinary shares | 10,000,000 | 100,000 (HKD) | | Issued shares | 800,000 | 6,842 | Management Discussion and Analysis Business Review and Future Outlook Weili Holdings, a Chinese cigarette packaging paper manufacturer, primarily supplies customized products to manufacturers in Hubei and Henan. During the reporting period, despite a temporary decrease in orders from key customers leading to lower revenue, gross profit increased and the company returned to profitability through cost control and operational efficiency improvements. The company anticipates order recovery in the second half of 2025 and is optimistic about the future prospects of the mid-to-high-end cigarette packaging paper market - The Group is a Chinese cigarette packaging paper manufacturer with R&D capabilities to supply customized products, primarily serving customers in Hubei and Henan provinces[34] - During the reporting period, certain key customers temporarily reduced orders for transfer paper and composite paper, but gross profit margin improved and impairment losses were reversed due to reduced trade receivables balances, ultimately achieving a turnaround from loss to profit through effective operational cost control and efficiency improvements[35] - Directors anticipate the sales decrease is temporary, with orders expected to recover in the second half of 2025, and are optimistic about the cigarette packaging paper industry's prospects driven by the shift towards mid-to-high-end products and increased consumer purchasing power[35][36] Financial Performance Analysis This section details the changes in financial metrics and their primary drivers during the reporting period. Revenue declined mainly due to reduced orders from key customers, but effective cost of sales control and operational efficiency improvements led to significant growth in gross profit and gross margin, ultimately achieving a return to profitability. Selling expenses increased due to market expansion, administrative expenses decreased due to lower staff and professional consultant costs, and financial asset loss allowances were reversed due to reduced trade receivables Revenue The Group's overall revenue decreased by 19.7% from approximately RMB 57.1 million in the prior period of 2024 to approximately RMB 45.8 million in the reporting period, primarily due to a temporary reduction in orders from key customers - Revenue decreased by approximately 19.7% to RMB 45.8 million (2024 prior period: RMB 57.1 million)[37] - The primary reason was a temporary reduction in orders for transfer paper and composite paper products from certain key customers, with directors expecting orders to recover in the second half of 2025[37] Cost of Sales Cost of sales decreased by 24.8% from approximately RMB 52.0 million in the prior period of 2024 to approximately RMB 39.1 million in the reporting period, primarily due to the combined effect of reduced revenue and effective operating cost control measures - Cost of sales decreased by approximately 24.8% to RMB 39.1 million (2024 prior period: RMB 52.0 million)[38] - Primarily due to a 19.7% decrease in revenue and the Group's effective operating cost control measures[38] Gross Profit and Gross Profit Margin Gross profit increased by 34.0% from approximately RMB 5.0 million in the prior period of 2024 to approximately RMB 6.7 million in the reporting period. Gross profit margin rose from approximately 8.8% to 14.7%, primarily benefiting from effective operating cost control measures and improved operational efficiency - Gross profit increased by approximately 34.0% to RMB 6.7 million (2024 prior period: RMB 5.0 million)[39] - Gross profit margin increased from approximately 8.8% to 14.7%, primarily due to effective operating cost control measures and improved operational efficiency[39] Selling Expenses Selling expenses increased by 9.1% from approximately RMB 2.5 million in the prior period of 2024 to approximately RMB 2.7 million in the reporting period, primarily due to increased market development and sales costs to expand the customer base in Henan and Hubei - Selling expenses increased by approximately 9.1% to RMB 2.7 million (2024 prior period: RMB 2.5 million)[40] - Primarily due to increased market development and sales costs to expand the customer base in Henan and Hubei and enhance sales volume[40] Administrative Expenses Administrative expenses decreased from approximately RMB 7.3 million in the prior period of 2024 to approximately RMB 6.1 million in the reporting period, primarily due to lower staff costs and professional consultant fees - Administrative expenses decreased to RMB 6.1 million (2024 prior period: RMB 7.3 million)[41] - Primarily due to a decrease in staff costs and professional consultant fees during the reporting period[41] Reversal of Loss Allowance for Financial Assets The reversal of loss allowance for financial assets increased from approximately RMB 0.9 million in the prior period of 2024 to approximately RMB 2.7 million in the reporting period, primarily due to a decrease in outstanding trade receivables - Reversal of loss allowance for financial assets increased to RMB 2.7 million (2024 prior period: RMB 0.9 million)[42] - Primarily due to a decrease in the outstanding amount of trade receivables as of June 30, 2025[42] Other Income Other income remained stable at approximately RMB 0.4 million during the reporting period, primarily from income-related government grants - Other income remained stable at approximately RMB 0.4 million[43] - Primarily derived from income-related government grants[43] Other Gains — Net Other gains — net decreased from approximately RMB 0.2 million in the prior period of 2024 to approximately RMB 0.1 million in the reporting period, primarily due to the combined effect of increased exchange losses and decreased non-operating income - Other gains — net decreased to RMB 0.1 million (2024 prior period: RMB 0.2 million)[44] - Primarily due to the combined effect of increased exchange losses and decreased non-operating income[44] Finance Income — Net Finance income — net increased from approximately RMB 0.2 million in the prior period of 2024 to approximately RMB 0.3 million in the reporting period, primarily due to a decrease in bank borrowing interest expenses - Finance income — net increased to RMB 0.3 million (2024 prior period: RMB 0.2 million)[45] - Primarily due to a decrease in bank borrowing interest expenses during the reporting period[45] Income Tax (Expense)/Credit During the reporting period, the company recorded a profit before income tax of approximately RMB 1.4 million, compared to a loss of approximately RMB 3.1 million in the prior period, primarily benefiting from increased gross profit due to cost control measures. Income tax shifted from a credit in the prior period to an expense in the current period, reflecting improved profitability - Profit before income tax of approximately RMB 1.4 million was recorded during the reporting period, compared to a loss of approximately RMB 3.1 million in the 2024 prior period[46] - Income tax shifted from a credit of approximately RMB 0.8 million in the 2024 prior period to an expense of approximately RMB 0.4 million in the reporting period, primarily due to a change from a loss before income tax to a profit before income tax[46] Profit/(Loss) and Total Comprehensive Income/(Loss) The Group recorded a profit and total comprehensive income of approximately RMB 1.0 million during the reporting period, a significant improvement from a loss and total comprehensive loss of approximately RMB 2.3 million in the prior period, primarily attributable to reduced cost of sales, increased gross profit due to cost control measures, and the reversal of impairment losses from decreased trade receivables balances - Profit and total comprehensive income of approximately RMB 1.0 million was recorded during the reporting period, compared to a loss and total comprehensive loss of approximately RMB 2.3 million in the 2024 prior period[47] - This change was primarily due to reduced cost of sales from cost control measures, leading to increased gross profit, and the reversal of impairment losses due to decreased trade receivables balances[47] Liquidity, Financial Resources and Capital Structure The Group's capital structure has remained unchanged since the listing date. As of June 30, 2025, cash and cash equivalents increased to approximately RMB 64.5 million, and bank borrowings significantly decreased to RMB 10 thousand. The gearing ratio substantially declined to approximately 0.0%, indicating a robust financial position - The Group's capital structure remained unchanged from the listing date to the date of this announcement[48] Liquidity and Gearing | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and cash equivalents | 64.5 | 53.2 | | Bank borrowings | 0.01 | 2.0 | | Gearing ratio | 0.0% | 0.9% | - As of June 30, 2025, the Group had no unutilized bank loans[48] Treasury Policy The Group implements strict internal control policies to manage investment activities, ensuring investments aim to preserve capital and liquidity, and are conducted under the review and approval of the Board and management team. The company adopts a prudent approach to selecting investment products and assesses whether sufficient working capital remains after investment - The Group has implemented a series of internal control policies and regulations for investments to ensure they are for the purpose of preserving capital and liquidity[50] - The finance department manages investment activities, with strategies and decisions subject to review and approval by the Board and management team[50] - The Group adopts a prudent approach to selecting investment products and assesses whether sufficient working capital remains after investment[50] Foreign Exchange Risk The Group primarily transacts in RMB but holds some Hong Kong dollar listing proceeds, exposing it to foreign exchange risk. The Board believes there was no significant foreign exchange risk during the reporting period, and no foreign exchange hedging was undertaken - The Group primarily transacts in RMB but holds certain listing proceeds in HKD, exposing it to foreign exchange risk[51] - The Board believes there was no significant foreign exchange risk for the Group during the reporting period, and no foreign exchange hedging was undertaken[51] Capital Expenditure During the reporting period, the Group incurred capital expenditure of approximately RMB 2.1 million for the purchase of machinery, an increase compared to the prior period - During the reporting period, the Group incurred capital expenditure of approximately RMB 2.1 million for the purchase of machinery[52] - In the prior period, approximately RMB 0.6 million was incurred for machinery purchases and approximately RMB 0.4 million for electronic and other equipment purchases[52] Capital Commitments and Contingent Liabilities As of June 30, 2025, and December 31, 2024, the Group had no capital commitments or significant contingent liabilities - As of June 30, 2025, and December 31, 2024, the Group had no capital commitments[53] - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[54] Significant Acquisitions or Disposals and Future Investment Plans During the reporting period, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures. As of June 30, 2025, the Group had no future plans for significant investments or capital assets, other than those disclosed in the prospectus business plan - During the reporting period, the Group had no significant acquisitions or disposals of any subsidiaries, associates, or joint ventures[55] - Other than the business plans disclosed in the prospectus, as of June 30, 2025, the Group had no future plans for significant investments or capital assets[55] Significant Investments Held During the reporting period, the Group held no significant investments - During the reporting period, the Group held no significant investments[56] Pledge of Assets As of June 30, 2025, buildings with a net book value of approximately RMB 6.4 million and leasehold land use rights of approximately RMB 2.8 million were pledged to secure bills payable. Restricted cash was also pledged as collateral for bank acceptance bills - As of June 30, 2025, buildings with a net book value of approximately RMB 6.4 million were pledged to secure the Group's bills payable (December 31, 2024: approximately RMB 9.9 million)[57] - As of June 30, 2025, leasehold land use rights with a net book value of approximately RMB 2.8 million were pledged as security for the Group's bills payable[57] - The Group's restricted cash refers to bank deposits pledged to banks for the issuance of bank acceptance bills to settle future payments to the Group's suppliers[58] Interim Dividend The Board has resolved not to recommend the declaration of an interim dividend for the reporting period, consistent with the prior period - The Board has resolved not to recommend the declaration of an interim dividend for the reporting period (six months ended June 30, 2024: nil)[59] Use of Proceeds The net proceeds from the listing were approximately HKD 90.3 million. As of June 30, 2025, approximately HKD 40.8 million had been utilized, primarily for acquiring printing and positioning slitting machines, and enhancing production capacity and efficiency. Approximately HKD 49.5 million remains unutilized, expected to be used for capacity enhancement, R&D, and marketing before December 31, 2025 - Net proceeds from the listing (after deducting related expenses) were approximately HKD 90.3 million[60] Use of Net Proceeds | Description | Intended Use of Proceeds (HKD million) | Amount Utilized as of June 30, 2025 (HKD million) | Amount Unutilized as of June 30, 2025 (HKD million) | Expected Timeline for Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Enhance the Group's production capacity, efficiency, and expand product portfolio | 33.3 | 2.3 | 31.0 | Before December 31, 2025 | | Strengthen the Group's R&D capabilities | 17.6 | 1.1 | 16.5 | Before December 31, 2025 | | Improve the Group's ERP and infrastructure systems | 0.1 | 0.1 | – | Fully utilized | | Increase the Group's marketing efforts | 2.6 | 0.6 | 2.0 | Before December 31, 2025 | | Acquire printing and positioning slitting machines for producing colored cigarette packaging paper | 22.9 | 22.9 | – | Fully utilized | | Reserved for the Group's general working capital | 13.8 | 13.8 | – | Fully utilized | | Total | 90.3 | 40.8 | 49.5 | | - As of June 30, 2025, all net proceeds have been utilized in accordance with the prospectus disclosure and the company's announcement on October 27, 2023, regarding the acquisition of machinery and change in use of net proceeds[63] Events After the Reporting Period The temporary decrease in sales orders during the reporting period was primarily attributed to small-scale trial production, experimental testing, and initial verification for new customers, as well as a transitional period due to major customer product upgrades. The Board considers these impacts temporary and expects order volumes to recover with product generation completion and commercialization of new orders. There were no other significant events from the end of the reporting period to the date of this announcement - The temporary decrease in sales orders during the reporting period was primarily attributed to small-scale trial production, experimental testing, and initial verification for new customers, and a transitional period due to major customer product upgrades[64] - The Board considers these impacts temporary and expects order volumes to recover in the foreseeable future[64] - There were no significant events from the end of the reporting period to the date of this announcement[67] Employees and Remuneration Policy As of June 30, 2025, the Group had 85 employees, a decrease from 109 in the prior period. Total staff costs amounted to approximately RMB 4.8 million. The company adjusts remuneration and promotions through annual appraisals and provides diverse on-the-job training. The company participates in defined contribution retirement schemes for its Chinese employees - As of June 30, 2025, the Group had 85 employees (June 30, 2024: 109 employees)[65] - Total staff costs incurred by the Group during the reporting period were approximately RMB 4.8 million (2024 prior period: RMB 5.6 million)[65] - The company assesses employee performance through annual appraisals and provides new employee induction training, on-the-job training, team-building training, and external training[65] - The Group participates in various defined contribution retirement schemes for its Chinese employees in accordance with PRC regulations[66] Other Information Corporate Governance Code The company is committed to maintaining high standards of corporate governance and has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules - The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[68] Model Code for Securities Transactions The company has adopted the Model Code set out in Appendix C3 to the Listing Rules as the required standard for directors' securities transactions and confirms that all directors complied with the code during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[69] - All Directors confirmed compliance with the required standards set out in the Model Code for the six months ended June 30, 2025, and up to the date of this announcement[69] Purchase, Sale or Redemption of the Company's Listed Securities From the six months ended June 30, 2025, to the date of this announcement, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - From the six months ended June 30, 2025, to the date of this announcement, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[70] Directors' Interests in Material Transactions, Arrangements or Contracts As of June 30, 2025, or at any time during the reporting period, no material transactions, arrangements, or contracts related to the company's business existed in which a director or their connected entity had a direct or indirect material interest - As of June 30, 2025, or at any time during the six months ended June 30, 2025, no material transactions, arrangements, or contracts related to the Company's business existed in which a Director or a Director's connected entity had a direct or indirect material interest[71] Directors' and Chief Executive's Interests in Shares of the Company and its Associated Corporations As of June 30, 2025, Executive Directors Mr. Chan Wai Chong and Mr. Yu Tianbing held 42.38% and 12.00% equity interests in the company, respectively, through controlled corporations. Other than these, no other directors or chief executives held disclosable equity interests Directors' and Chief Executive's Interests | Name of Director | Capacity/Nature of Interest | Number of Shares Held/Interested (L) | Percentage | | :--- | :--- | :--- | :--- | | Mr. Chan Wai Chong | Interest in controlled corporation | 339,040,000 | 42.38% | | Mr. Yu Tianbing | Interest in controlled corporation | 96,000,000 | 12.00% | - Mr. Chan Wai Chong holds shares through City Ease Limited, which is wholly owned by him, and Mr. Yu Tianbing holds shares through Wing Ning Limited, which is wholly owned by him[76] - Save as disclosed above, no other Directors or chief executives held any interests or short positions required to be disclosed under the Securities and Futures Ordinance[75] Substantial Shareholders' Interests in Shares of the Company As of June 30, 2025, substantial shareholders included City Ease Limited (wholly owned by Mr. Chan Wai Chong) and his spouse Ms. Liu Yuechu, each holding 42.38% interest; Kai Tung Limited holding 18.37% interest; and Wing Ning Limited (wholly owned by Mr. Yu Tianbing) and his spouse Ms. Zhou Huaqin, each holding 12.00% interest Substantial Shareholders' Interests | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Held/Interested (L) | Percentage of Interest | | :--- | :--- | :--- | :--- | | City Ease Limited | Beneficial owner | 339,040,000 | 42.38% | | Ms. Liu Yuechu | Interest of spouse | 339,040,000 | 42.38% | | Kai Tung Limited | Beneficial owner | 146,960,000 | 18.37% | | Wing Ning Limited | Beneficial owner | 96,000,000 | 12.00% | | Ms. Zhou Huaqin | Interest of spouse | 96,000,000 | 12.00% | - City Ease Limited is wholly owned by Mr. Chan Wai Chong, and Ms. Liu Yuechu is Mr. Chan Wai Chong's spouse[78] - Wing Ning Limited is wholly owned by Mr. Yu Tianbing, and Ms. Zhou Huaqin is Mr. Yu Tianbing's spouse[78][82] - Kai Tung Limited is held by Mr. Hu Haoran (Non-executive Director) and other shareholders, and neither he nor his close associates control one-third or more of the voting rights at Kai Tung's general meetings[78] Share Option Scheme The company adopted a share option scheme on June 2, 2022. As of June 30, 2025, the number of share options available for grant under the scheme was 80,000,000 shares, representing 10% of the issued shares. Since adoption, no share options have been granted, exercised, cancelled, or lapsed - The Company conditionally adopted a share option scheme on June 2, 2022[80] - As of June 30, 2025, the number of share options available for grant under the share option scheme was 80,000,000 shares, representing 10% of the issued shares[80] - Since the adoption of the share option scheme, no share options have been granted, exercised, cancelled, or lapsed under the scheme[80] Management Contracts During the reporting period, no management and administration contracts concerning the whole or any substantial part of the company's business were entered into or subsisted, other than service contracts with any director or any person employed full-time by the company - During the reporting period, no management and administration contracts concerning the whole or any substantial part of the Company's business were entered into or subsisted, other than service contracts with any Director or any person employed full-time by the Company[81] Sufficiency of Public Float Based on publicly available information and to the best of the Directors' knowledge, at least 25% of the company's total issued share capital was held by the public during the reporting period and up to the date of this announcement, meeting listing requirements - During the reporting period and up to the date of this announcement, at least 25% of the Company's total issued share capital was held by the public[83] Audit Committee The company established an Audit Committee on June 2, 2022, comprising three independent non-executive directors, chaired by Mr. Chan Yeung Tak. Its primary responsibilities include advising on external auditors, reviewing financial statements, and overseeing financial reporting, internal control, and risk management systems - The Company established an Audit Committee on June 2, 2022, comprising three independent non-executive Directors, chaired by Mr. Chan Yeung Tak[84] - The Audit Committee's primary responsibilities include recommending the appointment, reappointment, and removal of external auditors, reviewing financial statements and providing significant opinions on financial reporting, and overseeing the Company's financial reporting process, internal control, risk management systems, and audit procedures[84] Review of Interim Financial Results by Audit Committee The Group's unaudited consolidated interim financial information for the six months ended June 30, 2025, and the accounting information contained in this announcement have been reviewed by the Audit Committee, which agreed with the accounting treatments adopted by the company and deemed them compliant with applicable accounting standards and requirements, and adequately disclosed - The Group's unaudited consolidated interim financial information for the six months ended June 30, 2025, and the accounting information contained in this announcement have been reviewed by the Audit Committee[85] - The Audit Committee agreed with the accounting treatments adopted by the Company and considered that the preparation of such accounting information complied with applicable accounting standards and requirements, as well as the Listing Rules, and was adequately disclosed[85] Publication of Interim Results and Interim Report The interim results announcement has been published on the company's website and the Stock Exchange website. The interim report for the six months ended June 30, 2025, will be published in due course as required by the Listing Rules - The interim results announcement has been published on the Company's website www.weiliholdings.com and the Stock Exchange website **www.hkexnews.hk**[86](index=86&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be published in due course by the Company as required by the Listing Rules[86] Acknowledgement Acknowledgement The Board sincerely thanks the Group's management and all employees for their hard work and dedication, as well as shareholders, business partners, and other professionals for their support during the period. This announcement is issued by Mr. Chan Wai Chong, Chairman and Executive Director, on behalf of the Board - The Board thanks the Group's management and all employees for their hard work and dedication[87] - The Board also thanks shareholders, business partners, and other professionals for their support during the period[87] - This announcement is issued by Mr. Chan Wai Chong, Chairman and Executive Director, on behalf of the Board[87]