Wenye Group proposes rights issue amidst business recovery

Wenye Group Holdings Limited reported unaudited financial performance for the third quarter ended 30 September 2025, showing a robust business recovery. For the three months, revenue reached RMB51,886, with a gross profit of RMB6,523 and a net profit after tax of RMB1,706. The company also reported a cash balance of RMB36,258 and total assets of RMB90,515, against total liabilities of RMB159,497, resulting in net liabilities of RMB68,982.

To further support this recovery, Wenye Group is considering a fully-underwritten 4-for-1 rights issue to raise approximately HK$150 million in gross proceeds. The subscription price is set at HK$0.045 per rights share. The funds are intended to repay outstanding debts (HK$80-90 million) and for general working capital (HK$60-70 million). If successful, the company anticipates shifting from a net liability position of approximately RMB70 million to a net asset position of approximately RMB70 million.

The rights issue is conditional on several factors, including independent shareholders' approval and, critically, the Stock Exchange's listing approval, which remains uncertain given concerns regarding Rule 13.24 of the Listing Rules. Shareholders are encouraged to contact the company to signify their support.