Shenzhen Woer Heat-Shrinkable Material Co., Ltd. 2025 Annual Report: Detailed Investor Summary

Key Financial and Strategic Highlights

• Record Profit Growth: The Group reported a profit attributable to owners of the Company of RMB 1,143.9 million for 2025, marking a 34.96% year-on-year increase. Total comprehensive income reached RMB 1,110.3 million, with basic and diluted EPS at RMB 0.92 (up from RMB 0.68).
• Revenue Performance: Total revenue by business segment (2025):
  • Electronic material products: RMB 2,851.4 million (+9.69% YoY)
  • Telecoms cable products: RMB 2,550.6 million
  • NEV power transmission products: RMB 1,381.4 million
  • Electrical cable accessories: RMB 1,027.3 million
  • Wind power and others: RMB 307.2 million
• Dividend Growth: Proposed final dividend of RMB 1.65 per 10 ordinary shares (tax inclusive), a significant increase from RMB 1.3664 in 2024. Total dividend payout is set at approximately RMB 229.28 million.

Major Corporate Developments

• Hong Kong Listing Milestone: The Company successfully listed its H Shares on the Main Board of the Hong Kong Stock Exchange (Stock Code: 9981) on February 13, 2026. This dual-listing (A+H) is a major milestone, expanding the Company’s access to international capital and investor base. The global offering raised net proceeds of approximately RMB 2,422.4 million to be deployed across product development, global expansion, and strategic investments.
• Strategic Focus: The Group is doubling down on its “electronic communications + new energy power” core businesses, leveraging industry trends in data centers, AI, and NEVs. Significant investments have been made to expand both domestic and overseas production capacity, optimizing global resource allocation, and enhancing the international marketing network.
• Innovation and R&D: The Group continued to invest heavily in R&D to develop new products and technologies, with a focus on high-speed copper cables, NEV-related components, and intelligent manufacturing. It has also strengthened partnerships with leading universities to build a robust R&D talent pipeline.
• Lean Management and Operational Efficiency: The Company adopted lean production systems, increased automation and digitalization, and optimized cost structures to improve operational efficiency and resource utilization.
• Talent Incentives: To attract and retain key talent, the Group implemented both a 2025 Share Option Incentive Scheme and a 2025 Restricted Share Scheme, aligning employee interests with long-term corporate growth.

Future Outlook and Strategic Plans

• Industry Trends: The Company anticipates continued growth in electronic materials, telecoms, and NEV sectors, driven by high-tech applications and national policies supporting high-quality manufacturing development.
• 2026 and Beyond: The Group will continue its focus on technology-driven product innovation, market expansion (with a special emphasis on overseas markets post-HK listing), and refined management to drive long-term, stable, and high-quality growth.
• Risk Management: Management recognizes macroeconomic, policy, competition, raw material price, and technology risks. The Group has established robust risk management, internal controls, and regular monitoring mechanisms, and will adjust strategies as needed to mitigate these risks.

Capital and Financial Position

• Strong Balance Sheet: As of December 31, 2025, the Company had distributable reserves of approximately RMB 1,935.6 million.
• Use of Proceeds: Of the RMB 2.42 billion raised in the Global Offering, only RMB 106.3 million has been utilized so far. The funds are earmarked for product development, production capacity expansion, global expansion, potential M&A, and working capital.
• Major Customers & Suppliers: The top five customers accounted for 18.42% of revenue, with the largest at 8.71%. The top five suppliers accounted for 20.64% of purchases, with the largest at 5.40%. All are independent third parties.

Corporate Governance, ESG, and Compliance

• Corporate Governance: Adoption of the CG Code, enhanced board and committee practices, and compliance with the Model Code for securities transactions since HK listing.
• ESG Commitment: The Group is fully compliant with environmental laws and has established robust environmental management and energy systems, with a commitment to green operations and high-quality, sustainable development.
• Transparency: The Company maintains active communication with shareholders through regular reports, meetings, website updates, and dedicated investor relations contact points. No material litigation or regulatory non-compliance was reported during the year.

Potential Price-Sensitive Information for Investors

• Significant Profit Growth: The substantial YoY increase in profit and EPS, alongside a higher dividend, demonstrates improved operational leverage and could positively impact the stock price.
• Successful Dual-Listing and Strong Capital Injection: The successful listing in Hong Kong and the sizable capital raise strengthen the Group’s balance sheet, enable global expansion, and could enhance valuation multiples and liquidity.
• Unutilized Proceeds: The majority of the capital raised remains unutilized, indicating significant dry powder for future growth initiatives, acquisitions, and market expansion, which may be price moving upon deployment announcements.
• Ongoing Strategic Transformation: The Group’s focus on high-tech sectors (AI, NEVs, data centers) and the commitment to R&D and global market expansion position the Company for continued above-market growth, which could drive share price appreciation if successful.
• Enhanced Dividend Policy: The increased dividend signals management’s confidence in future cash flows and profitability and may attract income-focused investors.

Other Noteworthy Information

• The Company does not have any controlling shareholder, and no significant connected transactions were reported.
• No material litigation, claims, or regulatory issues were outstanding as of the reporting date.
• Audit was conducted by Moore CPA Limited (overseas) and Zandar Certified Public Accountants LLP (domestic).
• The Company continues to maintain a sufficient public float, with approximately 10.07% of H Shares held by the public after listing.

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