Oriental Yuhong’s Biannual Report for 2020: Net Profit Grew by 50.63% Year-on-Year
BEIJING, Sept. 1, 2020 /PRNewswire/ — On August 29th, 2020, Oriental Yuhong Waterproof Technology Co. Ltd. (hereinafter referred to as “Oriental Yuhong”, stock code: SZ002271) published the biannual report for 2020. According to the report, the operating income in the first half of the year reached approximately USD 1.254 billion, an increase of 11% year-on-year. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses stood at approximately USD 148 million, up 50.63% year-on-year. In 2020, the revenue and profit of Oriental Yuhong will continue to grow.
Oriental Yuhong has been expanding and deepening their presence in the market, and demonstrates high market concentration ratio. According to the report, the sales revenue of waterproof materials was about USD 1.006 billion, a year-on-year increase of 6.87%, and the construction income arising from waterproof engineering projects was about USD 199 million, an increase of 35.79% year-on-year. Other streams of income reached about USD 44 million, up by 18.13% year-on-year, and the sales revenue of materials was about USD 4,753,200, up by 27.27% year-on-year.
Reviewing the performance of Oriental Yuhong in the first half of the year, the pandemic took a toll on the company’s performance in the first quarter, as it took home an operating income of USD 353 million. However, the company recovered rapidly in the second quarter by gaining traction from policies and intensifying their presence in the market. In the first half of the year, the operating income was USD 1.254 billion, and the net profit increased significantly. Despite the tense and complex international economic situation, Oriental Yuhong continues to do well with a steady increase in their sales performance. There are three main reasons: First, it is stimulated by the national infrastructure construction and old house renovation policies, and driven by downstream demand; Second, as a building materials service provider, the competitiveness and quality of Oriental Yuhong products have steadily improved; Third, the concentration ratio has increased, and the brand advantage is further expanded.
Oriental Yuhong drives the growth of enterprise value with high-quality products and services, and adheres to lean production and intelligent manufacturing. It sets a benchmark for high productivity, high precision and high stability in the industry, and has created a strong reputation for the company with its high-quality products. The company went public in 2008, and its compound growth rate reached 34% in 11 years. With the market transformation, especially the maturing of the real estate industry, Oriental Yuhong is also actively deploying its resources and entering a broader market. Its business areas have formed a multi-sector joint development of building materials system service capabilities.
Its products and services are exported to more than 100 countries and regions such as Germany, Brazil, Russia, Japan and Singapore.
Oriental Yuhong is committed to becoming the most valuable enterprise in the global building materials industry, and will continue to safeguard building safety and practise corporate social responsibility. During the pamdemic, Oriental Yuhong joined other business partners and their affiliates and subsidiaries to lend their assistance to more than 20 important emergency projects such as Huoshenshan Hospital and Leishenshan Hospital in Wuhan, and others in Jingmen, Xiaogan, Xi’an, Guiyang, Harbin, Zhuhai and Shenzhen. They donated medical resources such as masks to international partners to protect the safety of doctors and patients, and this act was widely praised by the international community.
During the reporting period, Oriental Yuhong was listed on the 2020 China Brand Value Evaluation Information List with a brand strength of 939 and brand value of RMB 13.189 billion. The brand value increased by 40% year-on-year, and it was first listed in the Fortune China Top 500 list in July. At the same time, the brand “Yuhong” was approved for registration in Canada. In addition, it was selected as the “Top 50 core assets” of A shares in 2020 and listed as “A shares – Top 50 in Financial Health”, and its brand awareness is increasing by day.
In recent years, as the concentration of the real estate industry and the construction industry has accelerated, market shares have been concentrated in large companies, causing agglomeration effects. The increase in market share of large companies has also led to an increase in the demand for quality in the building materials market. In the future, infrastructure construction will also become the norm, and the construction of underground comprehensive pipe corridors and sponge cities, the improvement of railways, highways and water conservancy facilities will become increasingly common. As the industry demand increases, Oriental Yuhong will gain more room for growth.
In terms of financial status, the company has a healthy financial status. As of June 30, 2020, the company’s total assets were USD 3.481 billion, a year-on-year increase of 9%. The net cash flow from operating activities increased by 68%, as compared to the same period last year.
About Oriental Yuhong
Oriental Yuhong entered the building waterproofing industry in 1995. For more than 20 years, Oriental Yuhong has provided high-quality building materials system solutions for major infrastructure construction, industrial buildings, and civil and commercial buildings. The company’s investment involves building waterproofing, building coatings, building powder, non-woven fabrics, thermal insulation and energy saving, special mortars and building repairs and other fields. Oriental Yuhong holds more than 50 subsidiaries, including Shanghai Oriental Yuhong, Hong Kong Oriental Yuhong, and Oriental Yuhong North America Co., Ltd., and has deployed 28 production R&D logistics bases in China.
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