V View Financial Report | Weixing New Materials' 2025 Operating Goals Not Achieved

Ask AI · How does Weixing New Materials respond to the challenge of declining market demand?

China News and Insight (Jingwei), April 2 — Weixing New Materials disclosed its 2025 annual report on the evening of the 2nd, showing that in 2025 the company achieved operating revenue of 5.382 billion yuan, down 14.12% from the same period last year; net profit attributable to shareholders of listed companies was 741 million yuan, down 22.24% from the same period last year.

Annual report screenshot

The company said that, due to multiple factors, the company’s operating performance in 2025 did not meet the operating targets set at the beginning of the year. The decline in operating revenue was mainly due to factors including an overall decline in market demand and intensified competition. The company responded by implementing corresponding adjustments; the cultivation of new quality productivity and new momentum is still in the process of being advanced, resulting in overall sales under pressure.

The main reasons for the decline in total profit and net profit attributable to shareholders of listed companies are: first, the impact of lower operating revenue and gross profit margin; second, although the company strictly controls costs and expenses and sales expenses declined significantly, day-to-day operating expenditures such as administrative expenses are relatively fixed and were not able to decrease proportionally with operating revenue; and third, due to the downward trend in bank interest rates, interest income from deposits and returns from wealth management products declined significantly.

At the same time, the annual report shows that Weixing New Materials’ R&D investment in 2025 decreased by 9.43% compared with 2024; financial expenses increased by 77.71% year over year, mainly due to a decline in interest income during the current period.

Looking ahead to 2026, the company proposed its goal for the year: for 2026, the company will strive to achieve an operating revenue target of 5.700 billion yuan, and strive to control costs and expenses at around 4.720 billion yuan.

Regarding dividends, according to the “Company 2025 Annual Profit Distribution Proposal” disclosed on the same day, the company plans to use 1,571,867,988 shares as the basis—being the company’s current total share capital after excluding the 20,170,000 shares repurchased—as the basis for distributing a cash dividend of 3.50 yuan for every 10 shares to all shareholders, with tax included, totaling 501,537,95.80 yuan.

The announcement states that the company’s profit distribution plan for the first half of 2025 was to distribute a cash dividend of 1.00 yuan for every 10 shares to all shareholders, with tax included, totaling 157,186,798.80 yuan, which was completed on October 30, 2025. If this profit distribution proposal is approved by the 2025 annual general meeting of shareholders, the company’s total cumulative cash dividend amount for 2025 will be 707,340,594.60 yuan, accounting for 95.49% of the net profit attributable to shareholders of listed companies for the current year.

According to the company’s corporate website introduction, Weixing New Materials was founded in 1999 and successfully went public in 2010. The company focuses on the research and development, production, and sales of high-quality, high value-added new plastic pipe products including PP-R pipe pipe fittings, PE pipe pipe fittings, PVC pipe pipe fittings, and PB underfloor heating pipe pipe fittings, among other series of products, and actively expands its businesses in water purification equipment and waterproofing.

In the secondary market, Weixing New Materials closed at 11.30 yuan on the 2nd, up 0.98%. The company’s latest market capitalization is 179.9 billion yuan. (China News and Insight (Jingwei) APP)