Wenyuan Group Corp. (formerly Longwen Group Corp.) reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting significant changes in revenue and profitability compared to the previous fiscal period.
For the three months ended September 30, 2024, total revenues reached $11,263, a notable increase from $0 in the same quarter of 2023. This growth was primarily driven by offline product sales of cultural and health products. In contrast, the company reported no revenue from consulting services or online product sales during this period. For the nine months ended September 30, 2024, total revenues amounted to $67,968, compared to $0 for the same period in 2023, indicating a substantial shift in the company's revenue generation strategy.
Gross profit for the third quarter was $5,249, while for the nine months, it totaled $27,920. However, the company experienced a loss from operations of $(86,447) for the third quarter and $(885,885) for the nine months, reflecting ongoing challenges in managing operational costs. The net loss from continuing operations for the third quarter was $(84,985), down from $(186,614) in the same quarter of 2023, indicating an improvement in financial performance. For the nine months, the net loss was $(882,004), a decrease from $(932,368) in the prior year.
The company's total current assets as of September 30, 2024, were $212,323, a significant decline from $585,019 at the end of 2023. Total assets also decreased to $509,150 from $843,723. Conversely, total current liabilities dropped sharply to $143,325 from $920,158, resulting in total stockholders’ equity improving to $365,825 from a deficit of $(76,435) at the end of 2023.
Strategically, Wenyuan Group has undergone several changes, including the acquisition of Hangzhou Wenyuan Enterprise Management Co., Ltd. and Hangzhou Wenyuan Art and Culture Co., Ltd. in 2022, and the establishment of Huzhou Wohong Fishery Co., Ltd. in 2023, which was later classified as discontinued operations due to underperformance. The company also reported a gain from the sale of discontinued operations amounting to $3,404.
In terms of financing, net cash provided by financing activities from continuing operations for the nine months ended September 30, 2024, was $496,637, up from $205,447 in the same period of 2023. The company ended the reporting period with cash and cash equivalents of $153,716, a significant increase from $5,638 at the end of the previous year.
Overall, Wenyuan Group's financial results indicate a strategic pivot towards offline product sales, with a focus on improving operational efficiency and reducing losses.
About Longwen Group Corp.
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