Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (Oriental Yuhong) reported a net profit of only 1 billion yuan in 2024, but its dividend amount reached 4.4 billion yuan, with the chairman himself receiving nearly 1 billion yuan.
In its “2024 Annual Report,” Oriental Yuhong revealed that the company achieved operating income of 28.056 billion yuan, a decrease of 14.52% year-on-year, and a net profit attributable to shareholders of listed companies of 108 million yuan, a decrease of 95.24% year-on-year.
“Investment Express” stated on March 8 that the company’s profitability has regressed to the level of net profit more than a decade ago, comparable to 2011.
According to another announcement named “Summary of the 2024 Annual Report of Beijing Oriental Yuhong Waterproof Technology Co., Ltd.,” the company plans to distribute a cash dividend of 18.50 yuan for every 10 shares, totaling about 4.419 billion yuan. Several Chinese media outlets reported that based on this calculation, Chairman Li Weiguo received 963 million yuan.
Market information indicates that the company’s disclosure shows that in the first half of 2024, the company had already implemented an interim dividend scheme of 6 yuan (tax included) per 10 shares, totaling 1.462 billion yuan. Therefore, Oriental Yuhong’s total cash dividend for 2024 reached 5.881 billion yuan.
“Ivestment Express” revealed that by the end of 2024, the company’s cash funds amounted to 7.259 billion yuan, but after the dividend distribution, it would decrease to approximately 2.8 billion yuan. Correspondingly, the company’s short-term borrowings stood at a high of 4.612 billion yuan, and non-current liabilities due within a year were 927 million yuan.
According to “Huaxia Times” on March 7, Oriental Yuhong’s strategy of low profitability and high dividends has raised market doubts, with the company’s controlling shareholder Li Weiguo repeatedly facing suspicion about holding a high percentage of pledged shares that could pose risks.
Concerning issues regarding performance and dividends, “Huaxia Times” attempted to interview Oriental Yuhong but was informed that an outline needed to be sent to the company’s branding department for approval. While the media complied with the request and sent the outline, as of the publication date on March 7, there was no response received from Oriental Yuhong.
Public records show that Oriental Yuhong was founded in 1995 and is a leading company in the Chinese waterproofing industry, integrating research and development, manufacturing, sales, and construction services for waterproof materials.
In 2012, with the rapid development of China’s real estate sector, Oriental Yuhong shifted its focus to centralized purchasing by real estate developers. Leveraging its close ties with the real estate industry, Oriental Yuhong’s performance and stock price soared.
As a leader in the construction materials sector, Oriental Yuhong’s performance is deeply intertwined with real estate companies, with clients including Vanke, Poly, Ronshine, and Country Garden, among other renowned enterprises. However, as the real estate industry’s prosperity declined, the company’s performance followed suit.
In June 2021, Oriental Yuhong’s stock price hit a historic high of 62.54 yuan per share, more than four times the current price.
As of the stock market closing on March 7, Oriental Yuhong was trading at 13.34 yuan per share on the A-share market with a total market value of 32.5 billion yuan.