Beijing Oriental Yuhong receives significant government subsidies

Beijing Oriental Yuhong Waterproof Technology Co. and its subsidiaries recently received government subsidies totaling 12,863,558.54 yuan. Of this, 12,693,558.54 yuan relates to income, and 170,000.00 yuan relates to assets. The company's subsidiary, Tiandingfeng Non-woven Fabric Co., notably received a single subsidy of 5,200,000.00 yuan. All income-related subsidies have been received in cash.

These subsidies are projected to positively impact the company’s 2025 total profit by 12,710,558.54 yuan, which represents 11.75% of its 2024 audited net profit attributable to shareholders. The income-related subsidies will be recognized as other income, while asset-related subsidies will be deferred and amortized over the asset's useful life. The asset-related subsidies are expected to contribute 17,000.00 yuan to the 2025 total profit.

The company emphasizes that the final accounting treatment and impact on its financial figures will be subject to confirmation by its auditors during the annual audit. Investors are advised to exercise caution due to this inherent risk.