Beijing Oriental Yuhong adjusts assets, shifts governance amid impairment provisions

Beijing Oriental Yuhong Waterproof Technology reported total asset impairment provisions of 68.79 bn yuan for the first three quarters of 2025, primarily due to credit impairment losses on accounts receivable and contract assets. This provision will reduce the company's total profit for the period by 68.79 bn yuan. The company also announced a comprehensive debt restructuring plan, acquiring 19.88 bn yuan in debt assets from downstream customers and using 2.49 bn yuan in debt assets to settle its own payables.

In a move to optimize its asset structure, the company plans to sell a property in Beijing's Changping District for 23.13m yuan, which is expected to result in a disposal loss of 2.35 bn yuan. Additionally, the company announced the sale of 28,405,100 shares of Jinke Smart Services Group Co. (HK:9666), held as debt assets, at an offer price of HK$6.67 per share, with an estimated profit reaching 10% of its 2024 audited net profit.

The company is also proposing significant corporate governance changes, including the abolition of the supervisory board and a comprehensive revision of its articles of association. The supervisory board's responsibilities will be transferred to the audit committee of the board of directors. Furthermore, the company will undergo a board re-election, with nine directors, including three independent directors, to be appointed for a three-year term, subject to shareholder approval at the upcoming Extraordinary General Meeting on November 19, 2025.