News & Press
Weng Fine Art: Subsidiary ArtXX evolves into a platform for collectors, dealers and investors
3 Mai 2022 / Pressemitteilungen
ArtXX AG (ArtXX), the Swiss subsidiary of Weng Fine Art AG (WFA), is one of the most successful companies in the international market for art editions. It specializes in trading in important editions by world-renowned contemporary artists, which are offered through its own online platform "Weng Contemporary" www.wengcontemporary.com.
This and the coming year, ArtXX plans to offer its own edition products and tokenized art in addition to its retail business. An important step is to establish a separate platform on which art can be purchased as an item of capital investment. The launch is currently planned for the fall season of 2022.
The Management is aware that there are currently a number of stress factors affecting the overall economy, and the art market, which could have an impact on the company's plans. Therefore, the entire WFA Group has strengthened itself with further financing commitments so that it could continue to operate in a proactive manner even in a weaker environment.
ArtXX's business is not directly affected by the war in Ukraine, as in the past it had only conducted a small amount of business (less than 0.5% of its sales) with customers from Russia and Ukraine. Since ArtXX AG, as a trading company, does not run an energy-intensive operation, it is only slightly exposed to the sharp rise in energy prices. The significant increase in credit interest rates has had hardly any impact on ArtXX at the moment, as it is currently only debt financed to a relatively small extent.
In principle, a decline in demand from retail customers would not be surprising given the significant increase in inflation. On the contrary, art as a tangible asset is traditionally regarded as a hedge against inflation. ArtXX should be able to counter a decline in global demand by expanding its customer base, especially since the editions business is considered to have the greatest potential within the art market. Management estimates that the company has addressed less than 10% of its target market so far.
The WFA Management will present its plans at the Munich Capital Markets Conference (MKK) to be held today and will specify them at the Annual General Meeting of WFA on June 28, 2022.