On January 17, Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (Oriental Yuhong) announced its intention to sell more than forty sets of properties at a reduced price, resulting in losses exceeding 10% of the audited net profit for the latest fiscal year.
According to the “Announcement on Asset Sale” released by Oriental Yuhong on the 17th, the company plans to sell 8 commercial properties in Beijing and Shanghai, as well as 29 office spaces in Harbin. These assets consist of “some real estate acquired and held by the company and its subsidiaries, or certain downstream customer debt assets acquired by the company and its subsidiaries as creditors.”
The announcement also disclosed that the book value of these assets is 75.2212 million yuan (RMB), with a book value of 60.3996 million yuan and a sale price of 32.2712 million yuan.
The “Economic Information Daily” reported that the selling price of the properties in this transaction is at a 43% discount compared to the original value.
The announcement stated, “The cumulative asset disposal loss incurred since the last disclosure of the ‘Announcement on Asset Sale’ on December 9, 2025 amounts to 38.3966 million yuan, exceeding 10% of the audited net profit for the company’s latest fiscal year.”
In explaining the reasons for selling the properties, the announcement mentioned, “Considering the current limited market demand and weaker market liquidity for such assets, timely disposal can prevent further asset devaluation.”
According to the “Third Quarter Report of 2025” released by Oriental Yuhong on November 28, in the third quarter, net profit attributable to shareholders of the listed company decreased by 26.58% year-on-year; for the first three quarters, net profit attributable to the parent company was 810 million yuan, down by 36.61% year-on-year. The report indicated that the book value of investment properties on the company’s books was 1.336 billion yuan.
An industry insider interviewed by the “Economic Information Daily” remarked, “Judging from the discount applied to the more than forty properties sold in this transaction, the 1.336 billion yuan investment properties may face considerable risk of devaluation.”
Public records show that Oriental Yuhong, founded in 1995, is a high-tech enterprise and a listed company engaged in research, development, manufacturing, sales, and construction services of waterproof materials. Its business covers areas such as construction waterproofing, civil building materials, architectural coatings, mortar powder, energy-saving insulation, and building maintenance.
As of the closing on January 6 Beijing time, Oriental Yuhong’s stock was priced at 14.09 per share, down by 1.47%, with a total market value of 33.7 billion yuan.