Wenye Group Holdings Limited (1802) AI Stock Analysis

• Market Cap: HK$37.42M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): <0.1
• Beta (1Y): 1.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 82
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.14
• Shares Outstanding: 831,600,000
• 10 Day Avg. Volume: 287,200
• 30 Day Avg. Volume: 1,230,533
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.04
• Price to Sales (P/S): 2.47
• P/FCF Ratio: -8.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$0.04 ▲(7.50% Upside)

The overall stock score is heavily influenced by the company's poor financial performance, which poses significant risks to its stability. Technical analysis suggests a bearish trend, with some potential for a reversal. Valuation appears low, but this is overshadowed by the company's financial difficulties. The lack of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Strategic Partnerships

Strategic partnerships and joint ventures can enhance market presence and diversify revenue streams, providing long-term growth opportunities.

Market Position

Serving both private and public sectors broadens the company's client base, reducing dependency on a single market and enhancing resilience.

Comprehensive Service Offering

A comprehensive service offering allows the company to cater to diverse client needs, potentially increasing project wins and revenue stability.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market share and competitiveness, impacting long-term financial health and growth potential.

High Leverage

High leverage and negative equity can strain financial flexibility, increasing risk of insolvency and limiting growth investment capacity.

Cash Flow Challenges

Severe cash flow issues limit the company's ability to fund operations and invest in growth, posing risks to long-term sustainability.

Wenye Group Holdings Limited Business Overview & Revenue Model

Company Description

Wenye Group Holdings Limited, an investment holding company, offers interior and exterior building decoration and design services in the People's Republic of China. The company provides construction and design services of indoor and outdoor building decoration, as well as fitment for office buildings, public facilities, high-end star hotels, traffic hubs, commercial properties, residential properties, and curtain walls. It also manufactures and processes decoration materials; and provides customized interior design and curtain wall design services. The company was founded in 1989 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Wenye Group Holdings Limited generates revenue primarily through its real estate development and construction activities. The company earns income by developing residential and commercial properties and subsequently selling or leasing them to generate returns. Additionally, the construction segment contributes to revenue through contracts to build for third parties. The financial services division may also contribute to income through investments and financial transactions. Significant partnerships with local governments and other stakeholders can play a critical role in securing projects and enhancing the company's earnings potential.

Wenye Group Holdings Limited Financial Statement Overview

Summary

Wenye Group Holdings Limited faces substantial financial difficulties across all areas. The income statement reflects declining revenues and persistent losses, the balance sheet shows high leverage and negative equity, and the cash flow statement indicates severe cash flow challenges. These factors collectively pose significant risks to the company's financial health and stability.

Income Statement

The income statement reveals significant challenges, with declining revenues and consistent net losses over the years. The company has experienced a steep revenue decline from 2019 to 2024, with a notable drop in gross profit margin from its earlier figures. Net profit margins are negative, indicating ongoing unprofitability. The EBIT and EBITDA margins are also negative, reflecting operational struggles.

Balance Sheet

The balance sheet shows a concerning financial structure. The company has negative stockholders' equity, indicating that liabilities exceed assets, a potential red flag for solvency. The debt-to-equity ratio is not calculable due to negative equity, but high total debt relative to assets suggests significant leverage. The equity ratio is also negative, which is unfavorable for long-term sustainability.

Cash Flow

The cash flow statement highlights severe cash flow issues, with no positive free cash flow and erratic operating cash flows, including negative figures in recent years. The operating cash flow to net income and free cash flow to net income ratios are not meaningful due to negative values, underscoring cash generation challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.16M	13.52M	81.34M	378.12M	1.03B	1.25B
Gross Profit	994.00K	1.29M	7.11M	23.66M	77.69M	148.59M
EBITDA	-56.67M	-59.45M	-47.65M	-174.97M	-1.14B	47.72M
Net Income	812.11M	-95.38M	-63.47M	-193.36M	-1.21B	21.07M
Balance Sheet
Total Assets	20.53M	203.09M	239.75M	300.98M	567.80M	1.95B
Cash, Cash Equivalents and Short-Term Investments	10.70M	20.63M	177.00K	344.00K	22.69M	56.86M
Total Debt	13.84M	156.85M	134.81M	144.17M	181.50M	201.86M
Total Liabilities	91.22M	1.13B	1.07B	1.07B	1.15B	1.33B
Stockholders Equity	-70.69M	-932.10M	-836.72M	-773.25M	-579.89M	625.80M
Cash Flow
Free Cash Flow	-5.41M	-4.18M	-15.09M	21.10M	-20.13M	-103.04M
Operating Cash Flow	-5.41M	-4.18M	-15.09M	21.66M	-19.34M	-100.33M
Investing Cash Flow	29.00K	48.00K	58.00K	-1.56M	142.00K	-970.00K
Financing Cash Flow	4.93M	4.45M	14.87M	-42.45M	-15.45M	111.48M

Wenye Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3822	71 Outperform	HK$68.04M	6.22	11.01%	10.34%	52.69%	―
1637	65 Neutral	HK$90.00M	16.67	4.53%	―	-40.54%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1718	48 Neutral	HK$53.81M	-0.49	-46.48%	―	-0.64%	13.72%
1802	44 Neutral	HK$37.42M	0.04	―	―	―	―
1546	41 Neutral	HK$47.20M	-0.92	-41.65%	―	54.20%	-833.33%

Wenye Group Holdings Limited Corporate Events

Wenye Group Holdings Reports Strong Business Recovery Post-Restructuring

Wenye Group Holdings Limited has announced its unaudited financial performance for the four months ending October 31, 2025, showcasing a significant recovery in its business operations. The company reported a total revenue of RMB 78,229,000 and a gross profit of RMB 9,757,000, with a gross profit margin of 12.47%. Despite a challenging financial landscape, the company has managed to improve its cash balance and total assets, although it still faces substantial liabilities. This financial update reflects the company’s ongoing efforts to stabilize and strengthen its market position following the segregation of its former subsidiary.

Wenye Group Holdings Announces Potential Rights Issue

Wenye Group Holdings Limited has announced a potential rights issue, which involves offering four new shares for every existing share held by shareholders. The company has entered into an underwriting agreement with GLAM Capital Limited to fully underwrite up to 3,326,400,000 rights shares at a subscription price of HK$0.045 per share. This move is aimed at increasing the company’s share capital, potentially raising the total number of shares to 4,158,000,000 upon completion. The underwriting agreement ensures that any unsubscribed shares will be fully covered, providing financial stability and supporting the company’s strategic objectives.

Wenye Group Reports Q3 Financial Recovery Amidst Ongoing Challenges

Wenye Group Holdings Limited announced its unaudited financial performance for the third quarter of 2025, showing a significant business recovery with a revenue of RMB 51,886,000 and a gross profit margin of 12.57%. Despite a positive profit after tax of RMB 1,706,000, the company still faces net liabilities, highlighting the ongoing financial challenges. The announcement also includes an invitation to support a potential rights issue, indicating efforts to improve financial stability and investor confidence.

Wenye Group Seeks Final Review of Listing Decision

Wenye Group Holdings Limited has submitted a request to the Listing Review Committee for a final review of a decision made by the Listing Committee regarding the company’s listing status. The outcome of this review is uncertain, and shareholders and potential investors are advised to exercise caution when dealing with the company’s shares.

Wenye Group Faces Listing Suspension Amid Financial Struggles

Wenye Group Holdings Limited has been informed by the Listing Committee of the Stock Exchange of Hong Kong that it has failed to maintain sufficient operations and asset value to support its continued listing. The company’s financial performance has significantly deteriorated, with minimal revenue and substantial net losses over recent years. The disposal of its major subsidiary and challenges in securing new contracts have further impacted its viability. The company’s projections for future revenue are uncertain, and its financial instability raises concerns about its ability to sustain operations and fulfill existing contracts.