Oriental Yuhong divests assets, restructures debt in strategic shift

Beijing Oriental Yuhong Waterproof Technology (002271.SZ) is undertaking significant strategic changes, including the sale of two commercial properties in Beijing's Changping District for a total of 23,130,765 yuan. This transaction is expected to result in a disposal loss of 23,456,100 yuan. Simultaneously, the company is divesting its 28,405,100 shares in Jinke Smart Services (9666.HK) through a mandatory cash offer for HK$6.67 per share, totaling approximately HK$189,462,017. These asset sales aim to improve cash flow and asset utilization.

In a move to optimize its financial health, Oriental Yuhong is also restructuring debt, both as a creditor and debtor. As a creditor, it is recovering 198,770,100 yuan by acquiring residential, commercial, and office properties from downstream customers. As a debtor, the company is using acquired or owned properties to offset 24,931,500 yuan in its own outstanding debts. These measures are designed to reduce financial leverage and improve overall profitability.

Additionally, the company will undergo a board refresh, electing a new Ninth Board of Directors comprising nine members, including five non-independent, one employee representative, and three independent directors. Shareholders will vote on these changes at the Third Interim Shareholders' Meeting on November 19, 2025. This comprehensive overhaul reflects a strategic effort to enhance governance and align with market best practices.