Zhejiang Weixing New Material Co., Ltd. 2025 Board of Directors Work Report
In 2025, Zhejiang Weixing New Material Co., Ltd. (hereinafter referred to as the "Company") strictly adhered to the "Company Law of the People's Republic of China," the "Shenzhen Stock Exchange Stock Listing Rules," and the "Articles of Association," and the "Board of Directors Meeting Rules" and other relevant regulations. The company diligently implemented all resolutions from shareholder meetings, prudently exercised decision-making power, continuously optimized strategic choices, improved corporate governance and decision-making mechanisms, strictly controlled various operational risks, and fully promoted the company's healthy development. The main points of the Board of Directors' work report for 2025 are as follows:
I. 2025 Macroeconomic Situation and Company Operations Overview
In 2025, the domestic and international macroeconomic environment was complex and volatile. Global economic growth slowed, unilateralism and protectionism intensified, the multilateral trading system was hindered, impacting the stability of global industrial chains and supply chains. Simultaneously, geopolitical conflicts continued, affecting global market expectations and investment confidence, and exacerbating international market volatility. Domestically, the economy underwent profound transformation. Investment, consumption, and exports, the three drivers of economic growth, lacked momentum, but the overall economic operation remained stable, demonstrating strong resilience in the transition of old and new growth drivers. The plastic pipe industry, affected by factors such as real estate, municipal infrastructure investment, and consumption, experienced weak market demand and fierce price competition, leading to a continued decline in overall industry scale. However, policies such as urban renewal, new urbanization, and "quality housing" created structural opportunities, stimulating diversified market demand. Market momentum shifted from primarily incremental expansion to incremental optimization, driving the industry towards transformation and quality improvement.
During the reporting period, the company consistently adhered to "long-term sustainable development" as its guide, upholding the guiding principles of "seeking progress while maintaining stability, with risk control first" and the "high-end brand" positioning. The company maintained strategic focus, united in its efforts, and proceeded steadily. It consolidated its core business in the pipeline sector, strengthened its foundation, and fostered new quality productive forces through innovation. Simultaneously, it focused on lean management of "input-output" to reduce costs and increase efficiency. Despite the impact of various factors, the company's operating performance in 2025 did not meet the targets set at the beginning of the year. However, the company's overall development trend remained positive, with healthy operating cash flow and relatively stable profitability indicators such as gross profit margin, aligning with industry development trends.