Yangtze River Business Daily reporter Shen Yourong
"Waterproof Mao" Oriental Yuhong (002271. SZ) business performance is back on the growth track, but risks are hidden.
According to the latest disclosed annual report, in 2023, Oriental Yuhong will achieve operating income of more than 30 billion yuan and net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") of 2.273 billion yuan, both of which have increased from the previous year.
However, in the fourth quarter of 2023, the company's net profit loss was 80.1682 million yuan, which was the first quarterly loss in nearly 10 years.
Dongfang Yuhong's notes receivable and accounts receivable decreased slightly, but they still exceeded 10 billion yuan by the end of 2023.
In the secondary market, Dongfang Yuhong's share price is still falling, falling by more than 50% in the past year. On April 22, its stock price closed at 13.37 yuan per share, a new low since October 2019.
Since the beginning of this year, Li Weiguo, the actual controller of Dongfang Yuhong, has cashed out about 652 million yuan through the secondary market. At present, the pledge rate of Dongfang Yuhong's equity held by Li Weiguo and his concerted actors is 64%.
The stock price has fallen sharply, the pledge rate is high, and the risks faced by Li Weiguo need to be resolved urgently.
Visual China Diagram
Rare loss in the fourth quarter
Oriental Yuhong's operating performance in the fourth quarter showed a rare loss.
On April 19, Dongfang Yuhong disclosed its 2023 annual report. During the current period, the company achieved operating income of 32.823 billion yuan, a year-on-year increase of 5.15%, net profit of 2.273 billion yuan, a year-on-year increase of 7.16%, and net profit after deducting non-recurring gains and losses (hereinafter referred to as "non-net profit") of 1.841 billion yuan, a year-on-year increase of 2.05%.
In 2022, the company's operating income, net profit, and non-net profit after deduction will be 31.214 billion yuan, 2.121 billion yuan, and 1.804 billion yuan, respectively, a year-on-year decrease of 2.26%, 49.55%, and 53.36%.
Oriental Yuhong is known as "waterproof mao", which stems from its excellent business performance. In September 2008, Dongfang Yuhong landed on the A-share market, and from 2008 to 2021, the company's annual operating income and net profit have continued to grow.
In 2008, the company's operating income and net profit were 712 million yuan and 44 million yuan respectively, and after uninterrupted growth, in 2021, the operating income and net profit were 31.934 billion yuan and 4.205 billion yuan respectively. In 2021, the company's operating income and net profit increased by 43.85 times and 94.57 times respectively compared with 2008.
In 2022, it is the first time that Dongfang Yuhong's annual operating income and net profit have declined after its listing. In 2023, although the company's performance has turned from decline to increase, it seems to be performing well, but there are "joys and worries".
A reporter from the Yangtze River Business Daily found that in 2023, Dongfang Yuhong's operating income hit a new high, but the net profit was far less than that in 2020 and 2021, and only slightly higher than in 2019. The year-on-year growth rate of non-net profit deducted for the year was only 2.05%, which was not only significantly lower than that in 2020 and 2021, but also lower than the level in 2019.
Much attention is paid to the fact that in the fourth quarter of 2023, the company incurred a loss. In the fourth quarter, the company's operating income was 7.462 billion yuan, down 4.76% year-on-year, and net profit and non-net profit were -80.1682 million yuan and -331 million yuan respectively, down 117.18% and 217.46% year-on-year. In the fourth quarter of 2022, the company's net profit and non-net profit were 467 million yuan and 282 million yuan, respectively.
The Yangtze River Business Daily reporter found that the single-quarter loss was the first time in nearly 10 years that Oriental Yuhong had lost money.
The quarterly loss was mainly due to asset impairment. In the fourth quarter of 2023, Oriental Yuhong's asset impairment loss (letter credit impairment loss) was 433 million yuan.
Strange cash dividends of more than 1.5 billion
There are also some risks associated with Dongfang Yuhong.
The problem of high receivables has improved slightly, but it is still high. As of the end of 2023, Oriental Yuhong's notes receivable and accounts receivable were 10.185 billion yuan, a decrease from 11.387 billion yuan at the end of 2022, but still more than 10 billion. At the end of the period, the company's inventory was 2.511 billion yuan, an increase of 936 million yuan or 59.43% over the same period of last year, which was significantly higher than the increase in operating income.
Oriental Yuhong's financial situation has improved. As of the end of 2023, the company's asset-liability ratio was 43.90%, down 2.35 percentage points from the same period last year. At the end of the period, the company's monetary funds were 9.120 billion yuan, and interest-bearing liabilities were 7.005 billion yuan. In 2023, the company's financial expenses will be 129 million yuan.
In the secondary market, although Oriental Yuhong's operating income and net profit changed from a decline to an increase, the stock price trend was not affected and continued to fall.
The K-line chart shows that on June 1, 2021, Dongfang Yuhong's share price reached a high of 63.74 yuan / share, and since then the stock price has continued to fall, falling to 13.37 yuan / share on April 22 this year, with a share price range decline of 79.02%.
Among them, in the past year, Dongfang Yuhong's share price has fallen from 31.53 yuan per share to this day, a decline of more than 50%.
The stock price fell, and the risk of Li Weiguo, the actual controller of the company, increased. Previously, Li Weiguo promised to cover the bottom because of the call on employees to increase their holdings, and the company's stock price fell to increase employee losses, and since the beginning of this year, Li Weiguo has reduced his holdings through the secondary market and cashed out 652 million yuan to make up for employee losses.
Li Weiguo also has his own risks. On April 18 this year, Dongfang Yuhong issued an announcement that Li Weiguo added part of the company's share pledge. As of the date of the announcement, Li Weiguo and Li Xingguo, who acted in concert, held a total of 21.51% of the shares of Dongfang Yuhong, of which 13.84% of the shares were pledged, with a pledge rate of 64.37%.
With the sharp drop in stock prices, Li Weiguo's pledge risk has increased. According to the disclosure, the cumulative number of pledged shares that will expire in the next year by Li Weiguo and Li Xingguo, who acts in concert, is about 259 million shares, accounting for 47.78% of the shares held by him, accounting for 10.28% of the company's total share capital, and the remaining financing balance is about 1.827 billion yuan. Among them, the cumulative number of pledged shares that will expire in the next six months is about 152 million shares, accounting for 28.07% of its shares, accounting for 6.04% of the company's total share capital, and the remaining financing balance is 1.077 billion yuan.
In 2023, Oriental Yuhong unexpectedly paid a large proportion of dividends. The company plans to distribute a cash dividend of 6 yuan (tax included) to all shareholders for every 10 shares, with a total cash dividend of 1.511 billion yuan, accounting for 66.48% of the net profit of the year.
From 2008 to 2022, the company's cumulative cash dividends amounted to 3.360 billion yuan, and the cash dividends in 2023 accounted for 44.97% of the dividends in the past 15 years.
At present, Dongfang Yuhong's operation is still under pressure, is it necessary to pay such a high proportion of dividends?
In 2023, Li Weiguo and his concerted actors will receive a total of 325 million yuan in cash dividends.
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