Beijing Oriental Yuhong Waterproof Technology (002271) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ¥13.57 billion, down 10.84% year-over-year, with net profit attributable to shareholders at ¥564 million, a 40.16% decrease year-over-year.

• Gross margin declined, and all major business lines saw revenue contraction, especially coatings and engineering services.

• The company maintained a high dividend payout, with a cash dividend of ¥9.25 per 10 shares, totaling over ¥2.2 billion.

• Strategic focus remains on dual-core businesses (waterproofing and dry-mix mortar), retail expansion, and internationalization.

Financial highlights

• Operating income: ¥13.57 billion, down 10.84% year-over-year.

• Net profit attributable to shareholders: ¥564 million, down 40.16% year-over-year.

• Operating cash flow improved to -¥396 million from -¥1.33 billion year-over-year.

• Basic and diluted EPS: ¥0.24, down 38.46% year-over-year.

• Gross margin for waterproofing: 28.41%, down 3.72 percentage points year-over-year.

Outlook and guidance

• Management continues to prioritize risk control and high-quality growth, with no major adverse factors expected to impact ongoing profitability or strategic direction.

• Key risks include policy changes, macroeconomic and downstream volatility, raw material price fluctuations, competition, technology leakage, and receivables risk.

• Focus on expanding non-waterproofing businesses, retail, and overseas markets to drive future growth.