Wenling Zhejiang Measuring and Cutting Tools Trading Centre Company Limited (abbreviated as WENLING MCT) reported a resilient 2025 performance, with net profit climbing 8.1% to RMB 16.29 million despite largely flat top-line growth.

Revenue and Margins • Revenue in 2025 edged up 0.2% year on year to RMB 68.97 million, supported by steady occupancy at both the flagship Trading Centre (97.0% leased) and the Science and Technology Innovation Park (72.0% leased). • Gross profit slipped 0.8% to RMB 54.99 million; gross margin softened 0.9 ppt to 79.7%. • Net profit margin improved to 23.6% (2024: 21.9%), aided by a jump in other net income to RMB 1.45 million (2024: RMB 0.04 million) on compensation collected from a construction dispute.

Key Expenses and Valuation Impact • Valuation losses on investment properties remained heavy at RMB 24.36 million, reflecting lower market rents and land-use term adjustments. • Administrative expenses rose 4.6% to RMB 9.38 million, while finance costs were negligible at RMB 0.17 million. • Income tax fell 9.2% to RMB 5.36 million, lowering the effective tax rate to 24.7%.

Balance Sheet and Liquidity • Net assets totalled RMB 799.70 million; gearing remained minimal with no outstanding bank borrowings and RMB 308.90 million of undrawn facilities. • Net current liabilities widened to RMB 26.55 million, offset by confirmed credit lines and management’s going-concern assessment. • Cash and cash equivalents fell to RMB 18.89 million (2024: RMB 86.39 million) due to higher capital outlays.

Capital Expenditure and Commitments • 2025 capex surged to RMB 35.50 million, mainly for the new “Shanhaitianqiao” mixed-use project, which has recorded RMB 69.60 million in cumulative investment. • Outstanding capital commitments reached RMB 214.91 million. • The Group holds investment properties valued at RMB 1.02 billion, including the Trading Centre (RMB 812.0 million) and the Science and Technology Innovation Park (RMB 172.8 million).

Dividend Policy • The Board proposes a final dividend of RMB 0.12 per share (2024: RMB 0.23), representing a 47.8% cut and a payout of RMB 9.60 million. Payment dates are 18 May 2026 for domestic shareholders and 1 June 2026 for H-share investors.

Operational Highlights • Trading Centre’s average monthly rent stood at RMB 364.5/sq.m for ground-floor units; overall occupancy improved to 96.7%. • Science and Technology Innovation Park hosted 25 tenants, with factory space let at RMB 15.5/sq.m per month. • The Group’s integrated innovation complex advanced R&D collaborations, and the proprietary tool brand “WENCERL” secured its first overseas order (USD 85,300).

Outlook Management targets further tenant mix optimisation, accelerated leasing of Shanhaitianqiao (scheduled completion: 4Q 2027), and deeper industry-academia partnerships to capitalise on China’s push toward high-end, intelligent manufacturing.