伟立控股(02372) - 2025 - 中期财报

Company Information Weili Holdings Limited (Stock Code: 2372) is an investment holding company incorporated in the Cayman Islands, primarily engaged in the manufacturing and sale of cigarette packaging paper in China, with key information on its board, committees, and other essential personnel detailed for the reporting period - 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[26] - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since June 30, 2022[27] Board of Directors | Position | Name | | :--- | :--- | | Executive Directors | Mr. Chen Weizhuang (Chairman), Mr. Yu Tianbing (Chief Executive Officer) | | Non-executive Director | Mr. Hu Haoran | | Independent Non-executive Directors | Mr. Liu Yimin, Mr. Chen Yangde, Ms. Feng Yuan | Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, Weili Holdings achieved a profit of RMB 1,020 thousand, reversing a loss of RMB 2,263 thousand in the prior year, driven by effective cost control and reversal of financial asset impairment despite a 19.7% revenue decrease to RMB 45,844 thousand Key Financial Data for the Six Months Ended June 30 (RMB thousand) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 45,844 | 57,061 | -19.7% | | Cost of sales | (39,109) | (52,034) | -24.8% | | Gross profit | 6,735 | 5,027 | +34.0% | | Operating profit/(loss) | 1,124 | (3,273) | N/A | | Profit/(loss) for the period | 1,020 | (2,263) | N/A | | Basic and diluted earnings/(loss) per share (RMB cents) | 0.1 | (0.3) | N/A | - Reversal of impairment loss on financial assets was RMB 2,734 thousand, significantly contributing to profit compared to RMB 946 thousand in the prior year period[14] Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company reported total comprehensive profit of RMB 1,020 thousand, consistent with profit for the period, indicating no other comprehensive income or loss, a stark contrast to the RMB 2,263 thousand total comprehensive loss in the prior year Comprehensive Income for the Six Months Ended June 30 (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(loss) for the period | 1,020 | (2,263) | | Other comprehensive income | – | – | | Total comprehensive profit/(loss) for the period | 1,020 | (2,263) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets were RMB 258,673 thousand, slightly down from RMB 261,747 thousand at December 31, 2024, with net current assets increasing to RMB 170,400 thousand, indicating improved liquidity, alongside a significant decrease in trade receivables and an increase in inventories and cash Key Balance Sheet Data as of June 30 (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 258,673 | 261,747 | -1.2% | | Net current assets | 170,400 | 167,104 | +1.97% | | Trade receivables | 67,325 | 104,249 | -35.5% | | Inventories | 46,973 | 40,631 | +15.6% | | Cash and cash equivalents | 64,547 | 53,200 | +21.3% | | Bank borrowings | 10 | 2,000 | -99.5% | Interim Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, total equity attributable to shareholders increased to RMB 211,740 thousand from RMB 210,720 thousand at the beginning of the year, primarily due to a profit of RMB 1,020 thousand for the period, contrasting with an equity reduction from losses in the prior year Changes in Equity for the Six Months Ended June 30 (RMB thousand) | Indicator | June 30, 2025 | January 1, 2025 | June 30, 2024 | January 1, 2024 | | :--- | :--- | :--- | :--- | :--- | | Share capital | 6,842 | 6,842 | 6,842 | 6,842 | | Other reserves | 169,866 | 169,866 | 169,866 | 169,866 | | Retained earnings | 35,032 | 34,012 | 41,239 | 43,502 | | Total equity | 211,740 | 210,720 | 217,947 | 220,210 | - In the first half of 2025, retained earnings increased by RMB 1,020 thousand, reflecting the profit achieved during the period[22] Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash inflow from operating activities was RMB 25,401 thousand, a significant improvement from a net outflow of RMB 16,485 thousand in the prior year, while net cash outflow from investing activities increased due to fixed deposits, and net cash outflow from financing activities substantially decreased due to reduced bank loan repayments Cash Flows for the Six Months Ended June 30 (RMB thousand) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 25,401 | (16,485) | | Net cash used in investing activities | (12,006) | (844) | | Net cash used in financing activities | (2,015) | (10,650) | | Net increase/(decrease) in cash and cash equivalents | 11,380 | (27,979) | | Cash and cash equivalents at end of period | 64,547 | 67,168 | - In the first half of 2025, the company placed RMB 10,000 thousand in fixed deposits, with no such item in the prior year period[24] - Repayment of bank borrowings significantly decreased from RMB 20,000 thousand in the prior year period to RMB 1,990 thousand in the first half of 2025[24] Notes to the Interim Condensed Consolidated Financial Information This section details the basis of preparation, key accounting estimates, financial risk management, fair value estimation of financial instruments, revenue and segment information, expense breakdowns, income tax treatment, earnings per share calculation, balance sheet item changes, share capital and reserves, payables, bank borrowings, related party transactions, dividends, and contingent liabilities, providing essential context and data for understanding the financial statements 1. General Information Weili Holdings Limited was incorporated in the Cayman Islands on April 21, 2021, primarily manufacturing and selling cigarette packaging paper in China, with its shares listed on the HKEX Main Board since June 30, 2022, and these interim financial statements, presented in RMB, were approved by the Board on August 22, 2025, without external auditor review or audit - The company is an investment holding company primarily engaged in the manufacturing and sale of cigarette packaging paper in China[26] - These interim financial statements have not been reviewed or audited by the company's external auditors[28] 2. Basis of Preparation The interim financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and should be read in conjunction with the 2024 annual consolidated financial statements, with the first-time application of HKAS 21 (Amendment) "Lack of Exchangeability" having no significant impact on financial position or performance - The interim financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting"[29] - The application of amendments to Hong Kong Financial Reporting Standards had no significant impact on the Group's financial position and performance[30] 3. Critical Accounting Estimates and Judgements The significant judgments and key sources of estimation uncertainty used in preparing the interim financial information are consistent with those applied in the 2024 financial statements, requiring management to make judgments, estimates, and assumptions affecting the application of accounting policies and reported amounts - The significant judgments and key sources of estimation uncertainty made by management in preparing the interim financial information are the same as those applied in the 2024 financial statements[31] 4. Financial Risk Management and Financial Instruments The Group faces market (foreign exchange, interest rate), credit, and liquidity risks, with unchanged risk management policies since December 31, 2024, prudently managing liquidity through operating cash flows and borrowings, and fair values of financial instruments are categorized into a three-level hierarchy, with no Level 1 instruments, Level 2 primarily comprising bills receivable measured at fair value through other comprehensive income, and Level 3 instruments being zero at period-end - The Group is exposed to market risks (foreign exchange and interest rate risks), credit risk, and liquidity risk, with risk management policies unchanged since December 31, 2024[32][33] Contractual Cash Flows of Non-derivative Financial Liabilities (RMB thousand) | Liability Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank borrowings | 10 | 2,065 | | Trade and other payables | 44,110 | 45,625 | | Total | 44,120 | 47,690 | - The Group has no Level 1 financial instruments, and Level 2 financial instruments primarily consist of bills receivable measured at fair value through other comprehensive income[37][38] Level 2 Financial Instruments (RMB thousand) | Financial Assets | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bills receivable measured at fair value through other comprehensive income | 8,942 | 10,722 | - The closing balance of Level 3 financial instruments was zero, with RMB 31,000 thousand in additions and RMB 31,133 thousand in settlements during the period[43] 5. Revenue and Segment Information The Group primarily manufactures and sells cigarette packaging paper, with management viewing the business as a single segment; for the six months ended June 30, 2025, total revenue was RMB 45,844 thousand, a 19.7% year-on-year decrease, mainly from sales of cigarette packaging paper and raw materials, with all operations and revenue derived from external customers in China - The Group is primarily engaged in the manufacturing and sale of cigarette packaging paper, and management considers the business as a single segment[44] Revenue Sources (RMB thousand) | Revenue Category | 2025 | 2024 | | :--- | :--- | :--- | | Sales of cigarette packaging paper and raw materials | 45,451 | 57,055 | | Processing service income | 393 | 6 | | Total Revenue | 45,844 | 57,061 | Revenue Contribution from Customers Accounting for Over 10% of Total Revenue | Customer | 2025 | 2024 | | :--- | :--- | :--- | | Customer 1 | 47% | 19% | | Customer 2 | 16% | 41% | 6. Other Income For the six months ended June 30, 2025, other income slightly increased to RMB 437 thousand from RMB 393 thousand in the prior year period, primarily due to income-related government grants Other Income Details (RMB thousand) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Government grants related to income | 200 | – | | Amortisation of deferred income | 22 | 22 | | Others | 215 | 371 | | Total | 437 | 393 | 7. Expenses by Nature For the six months ended June 30, 2025, total expenses significantly decreased to RMB 47,991 thousand from RMB 61,858 thousand in the prior year, primarily due to a substantial reduction in raw materials and goods consumed, alongside decreases in staff costs, freight, and professional service fees Expenses by Nature (RMB thousand) | Expense Category | 2025 | 2024 | | :--- | :--- | :--- | | Raw materials and goods consumed | 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 | | Total | 47,991 | 61,858 | 8. Other Gains — Net For the six months ended June 30, 2025, other gains, net, decreased to RMB 100 thousand from RMB 185 thousand in the prior year period, primarily due to increased foreign exchange losses and reduced non-operating income Other Gains, Net Details (RMB thousand) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Foreign exchange gains | – | 24 | | Dividend income from financial assets at fair value through profit or loss | 133 | 138 | | Other gains | 133 | 240 | | Foreign exchange losses | (33) | – | | Loss on disposal of property, plant and equipment | – | (55) | | Other losses | (33) | (55) | | Other Gains — Net | 100 | 185 | 9. Income Tax Expense/(Credit) For the six months ended June 30, 2025, the company recorded an income tax expense of RMB 381 thousand, compared to an income tax credit of RMB 849 thousand in the prior year, primarily due to a shift from a loss before income tax to a profit, with Chinese subsidiaries enjoying a 15% preferential income tax rate as high-tech enterprises and a 200% super deduction for eligible R&D expenses Income Tax Expense/(Credit) (RMB thousand) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Current income tax — China current tax | – | (351) | | Deferred income tax | 381 | (498) | | Total | 381 | (849) | - Chinese subsidiaries, as high-tech enterprises, enjoy a 15% preferential income tax rate and can deduct 200% of eligible R&D expenses for tax purposes[57] 10. Earnings/(Loss) Per Share For the six months ended June 30, 2025, basic earnings per share were RMB 0.1 cents, compared to a basic loss per share of RMB 0.3 cents in the prior year, reflecting the company's return to profitability, with diluted earnings per share being the same as basic earnings per share for the period Earnings/(Loss) Per Share (RMB) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the Company (RMB thousand) | 1,020 | (2,263) | | Weighted average number of ordinary shares (thousand shares) | 800,000 | 800,000 | | Basic earnings/(loss) per share | 0.1 cents | (0.3) cents | - Diluted earnings/(loss) per share for the six months ended June 30, 2025 and 2024 were the same as basic earnings/(loss) per share[60] 11. Property, Plant and Equipment, Construction in Progress and Right-of-Use Assets As of June 30, 2025, the net book value of property, plant and equipment was RMB 36,669 thousand, and right-of-use assets were RMB 2,808 thousand, with construction in progress transferred to property, plant and equipment, indicating project completion, and certain property, plant and equipment and leasehold land use rights pledged as security for bills payable Net Book Value of Property, Plant and Equipment, Construction in Progress and Right-of-Use Assets (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property, plant and equipment | 36,669 | 38,536 | | Right-of-use assets — Land use rights | 2,808 | 2,846 | | Construction in progress | – | 21,812 | - In the first half of 2025, construction in progress of RMB 21,812 thousand was transferred to property, plant and equipment[62] - Property, plant and equipment with a net book value of approximately RMB 6,391 thousand and leasehold land use rights of approximately RMB 2,808 thousand have been pledged as security for bills payable[62][63] 12. Deferred Income Tax As of June 30, 2025, total deferred income tax assets were RMB 3,323 thousand, a decrease from RMB 3,704 thousand at December 31, 2024, primarily reflecting a reduction in deferred income tax assets related to impairment loss provisions Deferred Income Tax Assets (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Recoverable within 12 months | 870 | 1,461 | | Recoverable after more than 12 months | 2,453 | 2,243 | | Total | 3,323 | 3,704 | - The change in deferred income tax assets was primarily influenced by impairment loss provisions, decreasing by RMB 382 thousand in the first half of 2025[64] 13. Inventories As of June 30, 2025, net inventories increased to RMB 46,973 thousand from RMB 40,631 thousand at December 31, 2024, primarily due to an increase in raw materials and finished goods inventories Inventory Composition (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | 35,563 | 31,755 | | Work in progress | 1,146 | 71 | | Finished goods | 11,635 | 9,890 | | Packing materials and others | – | 96 | | Less: Inventory provision | (1,371) | (1,181) | | Net | 46,973 | 40,631 | 14. Trade Receivables As of June 30, 2025, net trade receivables significantly decreased by 35.5% to RMB 67,325 thousand from RMB 104,249 thousand at December 31, 2024, primarily due to a reduction in outstanding trade receivables, with credit terms generally ranging from 60 to 180 days Net Trade Receivables (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 71,513 | 111,282 | | Less: Loss allowance | (4,188) | (7,033) | | Net | 67,325 | 104,249 | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 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 | 15. Bills Receivable As of June 30, 2025, bills receivable decreased to RMB 8,942 thousand from RMB 10,722 thousand at December 31, 2024, with no bills receivable measured at fair value through other comprehensive income pledged as collateral at period-end, compared to RMB 3,000 thousand pledged at the end of 2024 Bills Receivable (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bills receivable | 8,942 | 10,722 | - As of June 30, 2025, no bills receivable measured at fair value through other comprehensive income were pledged as collateral, compared to RMB 3,000 thousand pledged at December 31, 2024[68] 16. Prepayments and Other Receivables As of June 30, 2025, net prepayments and other receivables significantly increased to RMB 10,226 thousand from RMB 3,440 thousand at December 31, 2024, primarily due to an increase in other receivables and recoverable VAT Prepayments and Other Receivables (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Other receivables | 9,697 | 2,461 | | Recoverable VAT | 482 | 11 | | Prepayments for purchases and raw materials | – | 821 | | Less: Loss allowance | (176) | (53) | | Net | 10,226 | 3,440 | 17. Cash and Cash Equivalents and Restricted Cash As of June 30, 2025, cash and cash equivalents increased to RMB 64,547 thousand from RMB 53,200 thousand at December 31, 2024, with restricted cash rising to RMB 7,800 thousand, primarily for pledging bank acceptance bills Cash and Cash Equivalents and Restricted Cash (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash at bank and in hand | 72,347 | 57,547 | | Less: Restricted cash | (7,800) | (4,347) | | Cash and cash equivalents | 64,547 | 53,200 | - Restricted cash of RMB 7,800 thousand is pledged as security for bank acceptance bills issued for future settlement of amounts payable to suppliers[70] 18. Fixed Deposits As of June 30, 2025, the company held fixed deposits of RMB 10,000 thousand with original maturities over three months, bearing an annual interest rate of 1.2%, with no such deposits at the end of 2024 - As of June 30, 2025, fixed deposits amounted to RMB 10,000 thousand, bearing interest at a prevailing market annual rate of 1.2%[71] 19. Share Capital As of June 30, 2025, the company's authorized ordinary share capital was 10,000,000 thousand shares, with issued share capital of 800,000 thousand shares at a par value of HKD 0.01, equivalent to RMB 6,842 thousand, remaining unchanged from December 31, 2024 Share Capital Information (RMB thousand) | Category | Number of Shares (thousand shares) | HKD thousand | RMB thousand | | :--- | :--- | :--- | :--- | | Authorized ordinary shares | 10,000,000 | 100,000 | N/A | | Issued shares | 800,000 | 8,000 | 6,842 | 20. Other Reserves As of June 30, 2025, total other reserves remained unchanged at RMB 169,866 thousand from December 31, 2024, comprising share premium, statutory reserve, and capital reserve, with Chinese subsidiaries required to transfer at least 10% of their after-tax profit to the statutory reserve fund Other Reserves Composition (RMB thousand) | Category | Share Premium | Statutory Reserve | Capital Reserve | Total | | :--- | :--- | :--- | :--- | :--- | | June 30, 2025 | 89,979 | 19,886 | 60,001 | 169,866 | | December 31, 2024 | 89,979 | 19,886 | 60,001 | 169,866 | - Chinese subsidiaries are required to transfer at least 10% of their after-tax profit to the statutory reserve fund until the accumulated amount reaches 50% of their registered capital[74] 21. Trade and Other Payables As of June 30, 2025, total trade and other payables slightly decreased to RMB 45,403 thousand from RMB 47,485 thousand at December 31, 2024, with trade payables and bills payable being the main components, and bills payable secured by bank deposits, buildings, and land use rights Trade and Other Payables (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 27,404 | 32,067 | | Bills payable | 15,600 | 9,694 | | Employee benefit payables | 986 | 1,460 | | Other accrued expenses | 1,106 | 3,864 | | Total | 45,403 | 47,485 | - Bills payable are secured by the Group's bank deposits, buildings, and land use rights[76] 22. Bank Borrowings As of June 30, 2025, bank borrowings significantly decreased to RMB 10 thousand from RMB 2,000 thousand at December 31, 2024; all borrowings are unsecured, repayable within one year, with a weighted average effective annual interest rate of 3.20% Bank Borrowings (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank borrowings — Unsecured | 10 | 2,000 | - Bank borrowings are repayable within one year, with a weighted average effective annual interest rate of 3.20% (December 31, 2024: 3.75%)[77] 23. Related Party Transactions This section discloses key management personnel compensation, totaling RMB 712 thousand for the six months ended June 30, 2025, which remained largely consistent with the prior year period Key Management Personnel Compensation (RMB thousand) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Basic salaries, bonuses, housing provident fund, medical insurance and other social insurance | 685 | 640 | | Pension costs — Defined contribution plans | 27 | 71 | | Total | 712 | 711 | 24. Dividends The company did not declare any interim dividends for the six months ended June 30, 2025, consistent with the prior year period - The company did not declare any interim dividends for the six months ended June 30, 2025[82] 25. Contingent Liabilities As of June 30, 2025, and December 31, 2024, the company had no significant contingent liabilities - As of June 30, 2025, and December 31, 2024, the company had no significant contingent liabilities[83] 26. Events After the Reporting Period From June 30, 2025, to the date of this report, the Board of Directors is not aware of any significant events requiring disclosure - From June 30, 2025, to the date of this report, the Board of Directors is not aware of any significant events requiring disclosure[84] Management Discussion and Analysis This section reviews Weili Holdings' business performance and financial position for the six months ended June 30, 2025, highlighting significant gross profit growth and a return to profitability despite reduced revenue, driven by effective cost control and operational efficiency, with management optimistic about the cigarette packaging paper industry's future and detailing liquidity, capital structure, use of proceeds, and employee information Business Review and Future Outlook Weili Holdings, a Chinese cigarette packaging paper manufacturer supplying customized products to clients in Hubei and Henan provinces, achieved improved gross margin and returned to profitability despite a 19.7% revenue decrease due to temporary order reductions, with the Board anticipating order recovery in the second half of 2025 and maintaining an optimistic outlook for the mid-to-high-end cigarette packaging paper market - The Group is primarily engaged in the manufacturing and sale of cigarette packaging paper in China, with products used for cigarette packaging of well-known Chinese tobacco brands[85] - During the reporting period, revenue decreased by 19.7%, but gross margin improved, and the company turned from a loss to a profit[85] - The Directors believe the sales decrease is temporary and expect orders to recover in the second half of 2025, maintaining a positive outlook for the cigarette packaging paper industry[85][86] Financial Review This section provides a detailed analysis of financial indicator changes during the reporting period, showing a 19.7% year-on-year revenue decrease and a 24.8% decrease in cost of sales, leading to a 34.0% increase in gross profit and an improved gross margin from 8.8% to 14.7%, alongside a slight increase in selling expenses, a decrease in administrative expenses, a significant increase in reversal of impairment loss on financial assets, and higher net finance income, ultimately resulting in a shift from a loss before income tax to a profit for the period Revenue The Group's total revenue decreased by 19.7% from approximately RMB 57.1 million in the prior year period to approximately RMB 45.8 million in the reporting period, primarily due to a temporary reduction in orders for transfer paper and laminated paper products from key customers - Revenue decreased by 19.7% year-on-year to RMB 45.8 million, primarily due to a temporary reduction in orders from key customers[88] Cost of Sales Cost of sales decreased by 24.8% from approximately RMB 52.0 million in the prior year period to approximately RMB 39.1 million in the reporting period, primarily due to the combined effect of reduced revenue and effective operational cost control measures - Cost of sales decreased by 24.8% year-on-year to RMB 39.1 million, primarily benefiting from reduced revenue and cost control[89] Gross Profit and Gross Margin Gross profit increased by 34.0% from approximately RMB 5.0 million in the prior year period to approximately RMB 6.7 million in the reporting period, with gross margin rising from 8.8% to 14.7%, primarily attributable to effective implementation of operational cost control measures and improved operating efficiency - Gross profit increased by 34.0% year-on-year to RMB 6.7 million[90] - Gross margin increased from 8.8% to 14.7%, primarily due to cost control and improved efficiency[90] Selling Expenses Selling expenses increased by 9.1% from approximately RMB 2.5 million in the prior year period to approximately RMB 2.7 million in the reporting period, primarily due to increased market development and sales costs aimed at expanding the customer base in Henan and Hubei regions - Selling expenses increased by 9.1% year-on-year to RMB 2.7 million, primarily for market development[91] Administrative Expenses Administrative expenses decreased from approximately RMB 7.3 million in the prior year period to approximately RMB 6.1 million in the reporting period, primarily due to lower staff costs and professional consultant fees - Administrative expenses decreased year-on-year to RMB 6.1 million, mainly due to lower staff costs and professional consultant fees[92] Reversal of Impairment Loss on Financial Assets Reversal of impairment loss on financial assets increased from approximately RMB 0.9 million in the prior year period to approximately RMB 2.7 million in the reporting period, primarily due to a reduction in outstanding trade receivables - Reversal of impairment loss on financial assets increased to RMB 2.7 million, primarily due to a decrease in trade receivables[93] Other Income Other income remained stable at approximately RMB 0.4 million during the reporting period, primarily derived from income-related government grants - Other income remained stable at RMB 0.4 million, primarily from government grants[94] Other Gains — Net Other gains, net, decreased from approximately RMB 0.2 million in the prior year period to approximately RMB 0.1 million in the reporting period, primarily due to the combined effect of increased foreign exchange losses and reduced non-operating income - Other gains, net, decreased to RMB 0.1 million, primarily affected by increased foreign exchange losses and reduced non-operating income[95] Finance Income — Net Net finance income increased from approximately RMB 0.2 million in the prior year period to approximately RMB 0.3 million in the reporting period, primarily due to a reduction in bank borrowing interest expenses - Net finance income increased to RMB 0.3 million, primarily due to reduced bank borrowing interest expenses[96] Income Tax (Expense)/Credit The company shifted from an income tax credit of approximately RMB 0.8 million in the prior year period to an income tax expense of approximately RMB 0.4 million in the reporting period, primarily due to a transition from a loss before income tax to a profit - The company transitioned from an income tax credit to an income tax expense, primarily due to a shift from a loss before income tax to a profit[97] Profit/(Loss) and Total Comprehensive Income/(Loss) The Group transitioned from a loss and total comprehensive loss of approximately RMB 2.3 million in the prior year period to a profit and total comprehensive income of approximately RMB 1.0 million in the reporting period, primarily benefiting from cost control measures, increased gross profit, and the reversal of impairment loss on financial assets - The company turned from a loss to a profit, primarily benefiting from cost control, increased gross profit, and the reversal of impairment loss[98] Liquidity, Financial Resources and Capital Structure The Group's capital structure has remained unchanged since its listing date; as of June 30, 2025, cash and cash equivalents increased to RMB 64.5 million, bank borrowings significantly decreased to RMB 10 thousand, and the gearing ratio fell to approximately 0.0% - The Group's capital structure has remained unchanged from the listing date to the date of this report[100] - As of June 30, 2025, cash and cash equivalents amounted to RMB 64.5 million, and bank borrowings were RMB 10 thousand[100] - The gearing ratio decreased to approximately 0.0% (December 31, 2024: approximately 0.9%)[100] Treasury Policy The Group has implemented internal control policies and regulations to ensure investments are for capital and liquidity maintenance purposes, with investment products purchased only under specific conditions, and the finance department manages investment activities, whose strategies and decisions require review and approval by the Board and management team - The Group has implemented internal control policies to ensure investments are for capital and liquidity maintenance purposes[101] - The finance department is responsible for investment activities, with strategies and decisions requiring approval from the Board and management team[101] Foreign Exchange Risk The Group primarily transacts in RMB, but retains some HKD 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 its HKD listing proceeds are exposed to foreign exchange risk[102] - The Board believes there was no significant foreign exchange risk during the reporting period, and no foreign exchange hedging was undertaken[102] Capital Expenditure During the reporting period, the Group incurred capital expenditure of approximately RMB 2.1 million for machine purchases, an increase from approximately RMB 0.6 million in the prior year period - During the reporting period, capital expenditure for machine purchases amounted to approximately RMB 2.1 million, higher than the prior year period[103] 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 or significant contingent liabilities[104][105] Material Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures, and Future Plans for Material Investments or Capital Assets During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any future plans for material investments or capital assets beyond those disclosed in the prospectus - During the reporting period, the Group had no material acquisitions or disposals, nor any future plans for material investments or capital assets beyond those disclosed in the prospectus[106] Material Investments Held During the reporting period, the Group held no material investments - During the reporting period, the Group held no material investments[107] Pledges of Assets As of June 30, 2025, buildings of approximately RMB 6.4 million and leasehold land use rights of approximately RMB 2.8 million were pledged as security for bills payable, with restricted cash also used to secure bank acceptance bills - As of June 30, 2025, buildings of approximately RMB 6.4 million and leasehold land use rights of approximately RMB 2.8 million were pledged as security for bills payable[108][109] - Restricted cash is used as collateral for bank acceptance bills issued for future settlement of amounts payable to suppliers[109] Interim Dividend The Board has resolved not to recommend the declaration of an interim dividend for the reporting period, consistent with the prior year period - The Board has resolved not to recommend the declaration of an interim dividend for the reporting period[111] Use of Proceeds Net proceeds from the listing were approximately HKD 90.3 million, with HKD 40.8 million utilized and HKD 49.5 million unutilized as of June 30, 2025; the unutilized portion is primarily for enhancing production capacity, R&D capabilities, and marketing efforts, expected to be used by December 31, 2025 Use of Proceeds from Listing and Utilization (HKD million) | Description | Intended Use | Utilized as of June 30, 2025 | Unutilized as of June 30, 2025 | Expected Timeline for Utilizing Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Enhance production capacity, efficiency, and expand product portfolio | 33.3 | 2.3 | 31.0 | Before December 31, 2025 | | Strengthen R&D capabilities | 17.6 | 1.1 | 16.5 | Before December 31, 2025 | | Improve ERP and infrastructure systems | 0.1 | 0.1 | – | Fully utilized | | Increase marketing efforts | 2.6 | 0.6 | 2.0 | Before December 31, 2025 | | Acquire printing and positioning slitting machines for colored cigarette packaging paper production | 22.9 | 22.9 | – | Fully utilized | | Reserve for general working capital of the Group | 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 disclosures in the prospectus and company announcements[112] Employees and Remuneration Policy As of June 30, 2025, the Group had 85 employees, a decrease from 109 in the prior year period, with total staff costs of RMB 4.8 million during the reporting period; the company conducts annual performance reviews for salary adjustments and promotions and provides various on-the-job training programs - As of June 30, 2025, the Group had 85 employees (June 30, 2024: 109 employees)[114] - Total staff costs for the reporting period were approximately RMB 4.8 million, lower than RMB 5.6 million in the prior year period[114] - The company participates in various defined contribution retirement schemes for its employees in China and provides various on-the-job training programs[114] Events After Reporting Period From the end of the reporting period to the date of this report, the Group had no significant events - From the end of the reporting period to the date of this report, the Group had no significant events[115] Corporate Governance and Other Information This section outlines Weili Holdings' corporate governance practices, including compliance with the Corporate Governance Code and the Model Code for Securities Transactions, confirming no purchases, sales, or redemptions of listed securities, no material director interests in significant transactions, detailed equity interests of directors and major shareholders, and the status of the share option scheme, with the audit committee having reviewed the interim financial results Corporate Governance Code The Group 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[117] Model Code for Securities Transactions The company has adopted the Model Code for Securities Transactions set out in Appendix C3 to the Listing Rules and confirms that all Directors have complied with it during the reporting period and up to the date of this interim report - The company has adopted the Model Code for Securities Transactions set out in Appendix C3 to the Listing Rules, and all Directors confirm compliance[118] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, and up to the date of this interim report, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period and up to the date of this interim report, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[119] Directors' Interests in Significant Transactions, Arrangements or Contracts As of June 30, 2025, or at any time during the reporting period, there were no significant transactions, arrangements, or contracts related to the company's business in which a Director or their connected entity had a material interest - During the reporting period, no Director or their connected entity had a material interest in any significant transaction, arrangement, or contract related to the company's business[120] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations As of June 30, 2025, Executive Directors Mr. Chen Weizhuang and Mr. Yu Tianbing held 42.38% and 12.00% equity interests in the company, respectively, through controlled corporations; no other Directors or chief executive held any disclosable interests or short positions in shares Directors' Interests in Shares of the Company | Name of Director | Capacity/Nature of Interest | Number of Shares Held (L) | Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Chen Weizhuang | Interest in controlled corporation | 339,040,000 | 42.38% | | Mr. Yu Tianbing | Interest in controlled corporation | 96,000,000 | 12.00% | - Save as disclosed above, no other Directors or chief executive had any disclosable interests or short positions in the shares, underlying shares, or debentures of the company or any of its associated corporations[122] Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company As of June 30, 2025, substantial shareholders included City Ease Limited (wholly owned by Mr. Chen Weizhuang) holding 42.38% of shares, with Ms. Liu Yuezhu (Mr. Chen's spouse) deemed to have the same interest; Qidong Limited held 18.37%, and Yongning Limited (wholly owned by Mr. Yu Tianbing) held 12.00%, with Ms. Zhou Huaqin (Mr. Yu's spouse) deemed to have the same interest Substantial Shareholders' Interests in Shares of the Company | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Held (L) | Percentage of Interest | | :--- | :--- | :--- | :--- | | City Ease Limited | Beneficial owner | 339,040,000 | 42.38% | | Ms. Liu Yuezhu | Interest of spouse | 339,040,000 | 42.38% | | Qidong Limited | Beneficial owner | 146,960,000 | 18.37% | | Yongning Limited | Beneficial owner | 96,000,000 | 12.00% | | Ms. Zhou Huaqin | Interest of spouse | 96,000,000 | 12.00% | Share Option Scheme The company adopted a share option scheme on June 2, 2022, allowing for the grant of 80,000,000 shares, representing 10% of issued shares; since its adoption, no share options have been granted, exercised, cancelled, or lapsed under the scheme, and there were no outstanding share options during the reporting period - The share option scheme allows for the grant of 80,000,000 shares, representing 10% of the issued shares[127] - Since the adoption of the share option scheme, no share options have been granted, exercised, cancelled, or lapsed[127] 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[128] Sufficiency of Public Float Based on public information and to the best knowledge of the Directors, 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 interim report - During the reporting period and up to the date of this interim report, at least 25% of the company's total issued share capital was held by the public[129] Audit Committee The company established an Audit Committee on June 2, 2022, comprising three independent non-executive directors, with Mr. Chen Yangde as Chairman; its responsibilities include providing recommendations on external auditors, reviewing financial statements, and overseeing financial reporting, internal control, and risk management systems - The Audit Committee comprises three independent non-executive directors, with Mr. Chen Yangde as Chairman[130] - The committee's responsibilities include providing recommendations on external auditors, reviewing financial statements, and overseeing financial reporting procedures, internal control, and risk management systems[130] Audit Committee Review of Interim Financial Results The Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, has been reviewed by the Audit Committee, which concurred with the accounting treatments adopted and deemed the financial information to comply with applicable accounting standards and the Listing Rules - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial information and considers it to comply with applicable accounting standards and the Listing Rules[132] Acknowledgement The Board of Directors extends its sincere gratitude to management, all employees, shareholders, business partners, and other professionals for their support during the period - The Board of Directors thanks management, employees, shareholders, business partners, and professionals for their support[133]