Research Express | Weixing New Materials hosts over 60 institutions including Changjiang Securities, with a 2026 revenue target of 5.7 billion yuan; overseas business growth expected

On the morning of April 3rd, Zhejiang Weixing New Building Materials Co., Ltd. (hereinafter referred to as “Weixing New Materials”) held a conference call to receive research visits from over 60 institutional investors including Changjiang Securities, Chuangjin Hexin Fund, Dongxing Fund, Tianfeng Securities (rights protection) Asset Management, Everbright Securities Proprietary Trading, and others. The company engaged in in-depth exchanges with institutions on industry development status, operational prospects for 2025, target planning for 2026, and responses to raw material price fluctuations.

Basic Information on Investor Relations Activities

Industry and Company Core Operational Insights

Industry: Structural Optimization Accelerates Under Total Pressure

Weixing New Materials pointed out during the research that, affected by increased external uncertainties, slowing economic growth, urbanization transformation, and insufficient market demand, the total volume of the plastic pipe industry continues to decline, but the scale remains considerable, demonstrating strong resilience. Currently, the industry is shifting from scale expansion to stock optimization and quality improvement, moving towards a high-quality development model. Policy guidance and market demand changes are driving deeper structural adjustments.

2025 Operational Outlook: Short-term Performance Pressure, Profitability Remains Resilient

In 2025, the company achieved operating revenue of 5.38B yuan, down 14.12% year-on-year; net profit attributable to shareholders of the listed company was 741 million yuan, down 22.24% year-on-year; main business gross profit margin was 41.14%, asset-liability ratio 23.06%, current ratio 2.85, quick ratio 2.23. The decline in performance was mainly due to decreased market demand, intensified competition, and reduced interest income, but operating cash flow remained healthy, and profitability indicators stayed relatively stable.

The company’s 2025 operational highlights include: firstly, maintaining high-end brand positioning amid price wars, with retail business pricing stabilizing; secondly, retail market share steadily increasing; thirdly, significant reductions in sales expenses through internal efficiency improvements, optimized management expenses, maintaining a healthy overall development trend.

2026 Goals: Revenue Target of 5.7 Billion Yuan, Leading Growth in Overseas Business

The company has set a clear revenue target of 5.7 billion yuan for 2026, representing approximately 6% year-on-year growth, with costs and expenses controlled around 4.72 billion yuan. Notably, the company expects overseas revenue growth to surpass domestic, with accelerated international expansion.

Key Points of Interactive Communication

Response to Raw Material Price Increases: Cost Markup + Internal Efficiency

In response to rising raw material prices, the company applies a cost markup principle, partly absorbing some cost pressures through internal efficiency improvements, and also raising prices on certain products.

Terminal Store Layout: Planned Upgrades, Gradual Effectiveness

The company is advancing the upgrade and layout of flagship stores and specialized retail outlets as planned, with the effects of sales promotion expected to gradually manifest over time.

Increased Provision for Inventory Write-downs: New Product Launches and Prudence Principles

In 2025, the company launched a series of new products. Aiming for prudence, it conducted comprehensive inventory checks at factories and sales ports and made provisions for inventory write-downs, strengthening risk control.

Reasons for Decline in Overseas Revenue: Project Cycles and Subsidiary Performance Fluctuations

The decline in overseas revenue in 2025 was mainly due to the completion of municipal engineering projects in the previous period, with some projects suspended or delayed, and a year-on-year decrease in Singapore Jieliu’s revenue.

Q4 Sales Revenue Drop: Dual Pressure from Engineering and Retail

Sales revenue in Q4 2025 declined, partly due to high base effects, project delays, and strengthened risk controls in engineering, and also due to decreased consumer demand impacting retail sales.

Weixing New Materials stated that in 2026, the focus will be on core pipeline business, promoting waterproof and related businesses, accelerating digital and intelligent driving, upgrading manufacturing, cultivating new productivity, and pushing forward continuous transformation and upgrading.

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