Wenye Group Holdings Ltd. has issued a positive profit alert, signaling a significant turnaround from a loss in 1H2024 to an expected net profit of no less than approximately RMB800 million for 1H2025. This remarkable improvement is attributed to a substantial increase in other income, primarily from the disposal of companies holding interest in Wenye Decoration, part of the winding up of Sosang (HK) Holdings Limited. This move also resulted in a significant reduction in net liabilities, as Wenye Decoration, which held most of the Group's debts, was segregated from the Group's liabilities. The net liabilities of Wenye Group are anticipated to decrease from approximately RMB930 million at the end of 2024 to no more than RMB70 million for 1H2025. Despite a decrease in revenue due to challenging macroeconomic conditions and issues within the real estate market, these strategic financial decisions have contributed to the Group's improved financial outlook. Shareholders and potential investors are advised to exercise caution when dealing with the Company's securities, as the interim results for 1H2025 are still being finalized and the information provided is based on preliminary assessments.