Wat co. posts strong 2025 earnings growth, core businesses bloom simultaneously

On April 20, Wote Co., Ltd. released its 2025 Annual Report: revenue amounted to RMB 2.052 billion, an increase of 8.17% year-on-year; net profit attributable to shareholders of the parent company totaled RMB 64.3972 million, up 75.97% year-on-year; net profit attributable to shareholders of the parent company, excluding non-recurring gains and losses, amounted to RMB 38.5991 million, up 38.70% year-on-year; net cash flow from operating activities reached RMB 221 million, a substantial year-on-year increase of 135.90%, representing a multiple of net profit.3.43 times;Profit quality has significantly improved, mainly due toCash received from sales of goods and provision of services increased this period, along with the company's improved inventory turnover ratio.caused by.

During the reporting period,Specialty polymer materials generated revenue of RMB 1.013 billion, accounting for 49.37% of total revenue. High-end production capacities—including 20,000 tons of liquid crystal polymer (LCP) and 500 tons of polyether ether ketone (PEEK) at the Chongqing base—have been successfully commissioned. Products serve core sectors including high-frequency communications, semiconductors, new-energy vehicles, low-altitude economy, and robotics.

Shenzhen Water New Material Co., Ltd. was established in 2001 and listed on Shenzhen Stock Exchange in 2017. The company mainly engages in the research, development, production, sales and technical services of high-performance functional polymer materials. As a national "Key Small Giant" for specialized, refined, unique and innovative enterprises, and a high-tech enterprise, the company has built a CNAS laboratory and an Academician Workstation, and holds more than 400 domestic and overseas patents. With a global layout of R&D and production bases, it provides comprehensive material solutions across the entire industry chain.

Core business and strategy, continuously and comprehensively advancing

In terms of R&D, the company's investment in research and development will reach a certain level by 2025. Note: The original Chinese sentence does not specify the exact amount or level of investment, so the translation keeps it general as "reach a certain level." If you have a specific figure or level in mind, please provide it for a more accurate translation.123 million yuan6.0% of revenue; a total of 272 R&D personnel, accounting for 18.38% of the total number of employees; the companyA total of 412 patents have been granted both domestically and internationally, including 268 invention patents.The core technology has been fully realized with independent control; among them, the related authorized patents for special polymer materials such as LCP, PPA, PAEK, PPS, PTFE, and polysulfone reach 370, and semiconductor sealing materials, LCP materials for 5G applications have achieved large-scale production.

Breakthroughs achieved in multiple industry-critical “bottleneck” materialsPPA resin has achieved full industrial chain autonomy, breaking the long-standing monopoly of BASF and DuPont; PEEK resin purity reaches 99.99%, meeting the requirements for medical implants and aerospace applications; polysulfone series materials have completed pilot-scale trials and are expected to enter mass production in the second half of 2026, filling a domestic gap.

In terms of production capacity layout, the company has established global manufacturing bases in Chongqing, Jiangsu, Huizhou, Shanghai, and Vietnam, with high-end capacity continuously being deployed.

① The 20,000-ton-per-year LCP resin project of Chongqing base has been officially put into production in Phase I and II; ② The 500-ton-per-year PEEK project of Chongqing base has been smoothly put into production in Phase I; ③ The capacity of special nylon resin has reached 10,000 tons. The shipment volume of modified materials from the Vietnamese base continues to increase, and the layout of the overseas market is further deepened.

In 2025, the company completed the acquisition of 100% equity in Shanghai Wotehua Sealing Components.This acquisition generated an extraordinary gain of RMB 17 million due to the purchase price being lower than the appraised value.Notably, the company is the core asset of the original Japanese Wanca in China, with over 60 years of sealing technology accumulation, and its clients include global semiconductor giants such as TSMC, Samsung, and Intel. This acquisition forms a "resin synthesis - modification processing - sealing products" full industry chain with the existing PTFE and PFA fluororesin businesses of Shanghai Huaben Semiconductor, establishing a complete industrial chain and breaking the long-term foreign monopoly on high-end semiconductor sealing components, achieving a breakthrough in domestic replacement in this field. Additionally, in January of this year, the company dissolved the Chongqing Wote Zhirong subsidiary, which was not engaged in any business, optimizing its industrial layout and organizational structure.

The core tracks under its umbrella are welcoming a "multi-point explosion"

Semiconductor materials exceed expectations: full industry chain layout is implemented, the overall revenue of the semiconductor sector is expected to grow by 42% year-on-year in 2025, and the growth rate is expected to exceed 50% in 2026.

Batch deployment in the new energy vehicle sector: PA66, PPA, and LCP materials have been certified by leading companies such as BYD, CATL, and Tesla, with a 68% year-on-year revenue growth in this field by 2025; flame-retardant PP materials for battery packs and high-temperature resistant insulation materials for motors have achieved large-scale production.

Consolidating its leading position in the 5G/6G communications sector: The company holds the No. 1 domestic market share for LCP materials in high-frequency, high-speed connectors and 5G base station radomes, and has been integrated into Huawei’s and ZTE’s core supply chains. Ultra-low dielectric constant LCP materials for 6G applications have been successfully developed and are currently undergoing customer validation.

Robots and the low-altitude economy are gaining first-mover advantages: wear-resistant PAEK materials for robot joints and self-lubricating PPS materials for reducers have already entered small-batch supply; carbon fiber-reinforced composites for the low-altitude economy have been certified by multiple drone companies and are expected to become a new growth driver by 2026.

Important Company Developments in the Past Six Months

In December last year, the process of dealing with subsidiaries without actual business operations was completed.Chongqing Water Intelligent Far Materials Technology Research Institute Co., Ltd.Deregistration, optimizing the group's asset structure;

In the same month, its subsidiary Shanghai Water Home Semiconductor was awardedNational High-Tech Enterprise Certification: Eligible for a preferential 15% corporate income tax rate from 2025 to 2027; this certification was officially disclosed in March 2026.It signifies the official and authoritative recognition of the company’s R&D qualifications and technical capabilities in semiconductor materials.

As of April 20, the technical upgrade of the first-phase production line for polysulfone (PSU/PES/PPSU) at the Chongqing facility has been completed, and the relevant government acceptance procedures are currently underway.

On April 21, the company showcased three core specialty materials at CHINAPLAS 2026 International Plastics & Rubber Exhibition (Booth No.: 7.2B80).

① Next-generation Wouper@PPA 6T/DT Specialty ResinSpecifically designed for high-temperature, precision, and high-load scenarios, with outstanding moisture and heat aging resistance, it retains over 92% of its strength in high-temperature and high-humidity environments. It also features lightweight and low warpage characteristics, making it a viable alternative to metal for applications in automotive electronics, industrial structural components, and more.

② DuraKraft® PEEK-LM Low-Melt Polyetheretherketone: The melting temperature is reduced to 280℃-343℃, the processing temperature is decreased by 18%, the particle size is precisely controllable, suitable for SLS 3D printing, composite material pre-impregnation, and other scenarios, balancing processability and material performance protection;

③ Wouper@ Bio-based PA46 ResinMade from bio-based raw materials, it offers high resistance to creep, excellent wear resistance across a wide temperature range, and high flowability for thin-wall molding, meeting the demanding requirements of automotive transmission systems and precision electronic connectors, thereby breaking the foreign monopoly on similar products.