Shenzhen Weiye Decoration Group Co Ltd

Weiye Shares released its 2026 interim report, showing total operating revenue of 2.445 billion yuan, down 39.01% year-on-year. Net profit attributable to the parent company was negative 122 million yuan, swinging from profit to loss year-on-year, a decline of 1,271.87%. Net cash inflow from operating activities was 239 million yuan, an increase of 551 million yuan year-on-year. The company's asset-liability ratio rose to 97.05%, gross margin fell to 4.79%, return on equity was negative 29.89%, and diluted earnings per share was negative 0.59 yuan.

Weiye Corporation disclosed in an announcement that its board of directors recently received written resignation reports from Vice Chairman Zhang Hanwei and Director Tang Tao. Zhang Hanwei applied to resign from the vice chairman position due to work adjustments, and will continue to serve as a director and a member of the Strategy and ESG Committee after resigning. Tang Tao applied to resign from all positions including director, vice president, and chief engineer for personal reasons, and will no longer hold any position in the company or its subsidiaries after resigning. The original terms of both individuals were set to run until October 9, 2027, and the resignations will not affect the normal operation of the board or the company's daily operations. Weiye Corporation reported net losses of 407 million yuan and 45.63 million yuan for the full year 2025 and the first quarter of 2026 respectively. As of March 31, 2026, its debt-to-asset ratio reached 96.17 percent, with accounts receivable of 5.66 billion yuan, up 41.37 percent year on year. As of the close on August 21, the company's share price stood at 7.35 yuan per share, with a total market value of 1.53 billion yuan and a cumulative decline of 12.60 percent for the year.

Weiye Co. disclosed that 45 bank accounts of the company and its subsidiaries were frozen by a court due to engineering disputes, with actual frozen funds of 295 million yuan. The announcement shows that the freeze involves two types of litigation matters. The first is an enforcement case concerning the Lijiang Heyue Huameida Plaza Hotel project, involving 19 frozen accounts and about 18.98 million yuan. The second is pre-litigation preservation for multiple engineering payment settlement disputes, involving 26 frozen accounts and about 340 million yuan. The two types of freeze together involve 45 bank accounts, with a cumulative book frozen amount of 359 million yuan. After excluding 55.42 million yuan of double-counted frozen amounts and 8.57 million yuan of funds already paid and pending release, the company's actual frozen funds are 295 million yuan. The company explained that all these are court-imposed limited preservation freezes, and excess funds in the accounts can still be paid normally, with no full account seizure occurring. Regarding the Lijiang enforcement case, the company has submitted an enforcement objection to the Lijiang Intermediate People's Court, requesting the release of the excessively frozen portion, and has also submitted a retrial application to the Supreme People's Court regarding the original judgment, pending case acceptance review. The company stated that this freeze is a temporary judicial preservation measure, not a default on its own debts, and that the remaining unfrozen accounts have sufficient cash flow, with its main business and daily capital turnover not materially and significantly impacted.