Wenyuan Group Corp. (formerly Longwen Group Corp.) reported a net loss of $1.17 million for the fiscal year ending December 31, 2024, compared to a net loss of $1.03 million in 2023. The company's total revenue for 2024 was $60,285, a significant increase from $21,086 in the previous year, primarily driven by offline sales of cultural and health products, which generated $60,285 in revenue. This marks a notable shift from the previous year when the company had no offline sales. The company’s consulting services, however, saw a complete decline, with no revenue generated in 2024 compared to $15,004 in 2023.
The company underwent significant operational changes during the fiscal year, including the discontinuation of its aquaculture product sales segment, which had previously generated $2.05 million in revenue in 2023. This decision was made due to lower-than-expected sales and changing economic conditions. The company recognized a litigation loss of $264,071 related to a purchase agreement for an office suite, which has contributed to the overall increase in net loss. As of December 31, 2024, Wenyuan's total assets decreased to $415,573 from $843,723 in 2023, reflecting the impact of discontinued operations and ongoing financial challenges.
Wenyuan Group has also made strategic acquisitions, including the purchase of Hangzhou Wenyuan Enterprise Management Co., Ltd. and Hangzhou Wenyuan Art and Culture Co., Ltd., which are now wholly-owned subsidiaries. The company has focused on expanding its cultural and health product sales through its subsidiary, Hangzhou Wenyuan Art and Culture Co., Ltd. Additionally, the company launched an online store through Tencent’s WeChat platform in December 2022, which has become a significant revenue source.
As of April 2, 2025, Wenyuan Group employed seven individuals in China and has engaged various part-time services. The company’s management has expressed concerns regarding its ability to continue as a going concern, citing recurring losses, a working capital deficit of $184,093, and the need for additional financing to support operations. The company plans to raise funds through equity and debt securities but acknowledges the uncertainty surrounding the availability of such financing.
Looking ahead, Wenyuan Group aims to improve its business profitability and generate sufficient cash flow from operations. The company is also in the process of developing a mobile application to promote and sell cultural products, expected to launch in the first half of 2025. However, the management has indicated that there can be no assurance that these plans will be successful or that the company will be able to secure the necessary funding to support its operations.
About Longwen Group Corp.
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