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Wenye Group Holdings Limited (HK:1802)
:1802
Hong Kong Market
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Wenye Group Holdings Limited (1802) AI Stock Analysis

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HK:1802

Wenye Group Holdings Limited

(1802)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The overall stock score is primarily impacted by the company's poor financial performance, which poses significant risks to its stability. Technical analysis provides some neutral signals, but the valuation suggests potential undervaluation amidst financial struggles. The lack of earnings call data and corporate events limits additional insights.

Wenye Group Holdings Limited (1802) vs. iShares MSCI Hong Kong ETF (EWH)

Wenye Group Holdings Limited Business Overview & Revenue Model

Company DescriptionWenye 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 MoneyWenye Group Holdings Limited generates revenue through its comprehensive suite of construction and engineering services. The company primarily earns money by securing contracts for building construction and civil engineering projects. These projects range from residential and commercial buildings to infrastructure developments. Revenue is typically recognized based on the progress of construction projects and the fulfillment of contractual obligations. Key revenue streams include project fees, management contracts, and other ancillary services related to construction. Additionally, the company may engage in strategic partnerships and joint ventures to expand its project portfolio and enhance its market presence, contributing to its earnings.

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
20
Very Negative
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
15
Very Negative
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
25
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.52M81.34M378.12M1.03B1.25B
Gross Profit1.29M7.11M23.66M77.69M148.59M
EBITDA-59.45M-47.65M-174.97M-1.14B47.72M
Net Income-95.38M-63.47M-193.36M-1.21B21.07M
Balance Sheet
Total Assets203.09M239.75M300.98M567.80M1.95B
Cash, Cash Equivalents and Short-Term Investments20.63M177.00K344.00K22.69M56.86M
Total Debt156.85M134.81M144.17M181.50M201.86M
Total Liabilities1.13B1.07B1.07B1.15B1.33B
Stockholders Equity-932.10M-836.72M-773.25M-579.89M625.80M
Cash Flow
Free Cash Flow-4.18M-15.09M21.10M-20.13M-103.04M
Operating Cash Flow-4.18M-15.09M21.66M-19.34M-100.33M
Investing Cash Flow48.00K58.00K-1.56M142.00K-970.00K
Financing Cash Flow4.45M14.87M-42.45M-15.45M111.48M

Wenye Group Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.04
Price Trends
50DMA
0.05
Negative
100DMA
0.06
Negative
200DMA
0.06
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
31.93
Neutral
STOCH
44.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1802, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.93 is Neutral, neither overbought nor oversold. The STOCH value of 44.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1802.

Wenye Group Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
80.00M14.302.30%-30.55%
58
Neutral
84.00M7.672.28%92.38%
45
Neutral
HK$39.92M0.03
44
Neutral
70.08M-0.64-101.04%4.32%-143.93%
41
Neutral
50.40M-0.98-43.41%55.11%-717.31%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1802
Wenye Group Holdings Limited
0.04
0.00
0.00%
HK:1546
Thelloy Development Group Limited
0.06
-0.04
-40.00%
HK:1637
SH Group (Holdings) Limited
0.19
0.11
137.50%
HK:1718
Wan Kei Group Holdings Limited
0.28
0.10
55.56%
HK:1722
Kin Pang Holdings Ltd.
0.06
0.00
0.00%
HK:3822
Sam Woo Construction Group Ltd.
1.00
0.04
4.17%

Wenye Group Holdings Limited Corporate Events

Wenye Group Reports Strong Interim Profit Turnaround
Aug 29, 2025

Wenye Group Holdings Limited announced its unaudited interim results for the first half of 2025, reporting a significant turnaround with a profit of RMB 885,804 thousand compared to a loss in the same period the previous year. The company’s gross profit margin improved to 12.0% from 5.9%, indicating a positive shift in financial performance, which could enhance its market position and stakeholder confidence.

Wenye Group Holdings Reports Positive Profit Turnaround for 1H2025
Aug 28, 2025

Wenye Group Holdings Limited has announced a positive profit alert for the first half of 2025, despite a significant decrease in revenue from RMB13.5 million to no less than RMB4 million. The company expects to turn a previous loss into a profit of no less than RMB800 million, with net liabilities significantly reduced from RMB930 million to no more than RMB70 million. This turnaround is attributed to increased other income from the disposal of interests in Wenye Decoration, a former subsidiary, and the segregation of its liabilities, which has helped the company stabilize its financial position.

Wenye Group Holdings Limited Restructures to Improve Financial Position
Aug 7, 2025

Wenye Group Holdings Limited announced a significant restructuring move by winding up its subsidiary Sosang, which held interests in Wenye Decoration, to address financial concerns and improve its net liability position. This strategic decision has led to a substantial reduction in the company’s liabilities and has restored confidence among customers and subcontractors, allowing the company to secure new projects and improve its financial standing. The company is actively seeking new investments and financing options to further stabilize its operations and resolve outstanding litigation issues.

Wenye Group Holdings Limited Announces Board Composition
Jul 24, 2025

Wenye Group Holdings Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The announcement details the roles and functions of each director, highlighting the leadership structure within the company. This update provides clarity on the governance and oversight within the organization, potentially impacting its strategic direction and stakeholder confidence.

Wenye Group Holdings Seeks Review of Stock Exchange Decision
Jul 24, 2025

Wenye Group Holdings Limited, a company incorporated in the Cayman Islands, has announced its intention to request a review of a decision made by the Stock Exchange of Hong Kong regarding Listing Rule 13.24. The company has submitted a written request for the decision to be reviewed by the Listing Committee, allowing trading in its shares to continue. Shareholders and potential investors are advised to exercise caution, as the outcome of the review remains uncertain.

Wenye Group Announces Board Changes with New Non-Executive Director Appointment
Jul 24, 2025

Wenye Group Holdings Limited has announced changes in its board of directors, with the resignation of Mr. Li Hongxing as Non-Executive Director and the appointment of Ms. Jia Yuanyuan to the same position, effective July 24, 2025. Ms. Jia brings over 15 years of experience in financial management and education, which is expected to strengthen the company’s financial oversight and strategic planning capabilities. The board expressed gratitude to Mr. Li for his contributions and welcomed Ms. Jia, highlighting the company’s commitment to maintaining strong governance and leadership.

Wenye Group Faces Delisting Due to Insufficient Operations
Jul 15, 2025

Wenye Group Holdings Limited has been notified by the Hong Kong Stock Exchange of its failure to maintain sufficient operations and assets to justify its continued listing. The company’s building decorative and design business has significantly diminished, with revenue declining by 99% over the past five years and ongoing financial difficulties, including net liabilities and impaired trade receivables, raising concerns about its viability and sustainability.

Wenye Group Holdings Secures Unanimous Approval at AGM
Jun 30, 2025

Wenye Group Holdings Limited announced the successful passage of all resolutions during its Annual General Meeting held on June 30, 2025. The resolutions included the adoption of audited financial statements for the year ending December 31, 2024, re-election of directors, and authorization for the board to manage share allotments and repurchases. The unanimous approval of these resolutions indicates strong shareholder support and positions the company for continued operational stability and strategic flexibility.

Wenye Group Holdings Limited Streamlines Operations Through Subsidiary Winding-Up
Jun 12, 2025

Wenye Group Holdings Limited has announced the voluntary winding-up of its subsidiary, Sosang (HK) Holdings Limited, as part of a strategic move to address financial uncertainties and reduce liabilities. The sale of Sosang’s interests in its subsidiaries for HK$1,300,000 is expected to deconsolidate significant liabilities from the group’s balance sheet, thus improving its financial position without adversely affecting its overall operations, as another subsidiary retains the necessary licenses to continue decoration work in China.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 18, 2025