ORIENTAL YUHONG(002271) 新浪财经·2025-03-19 04:12Core Viewpoint - The company, Oriental Yuhong, is facing significant scrutiny over its decision to distribute high dividends despite a drastic decline in net profit, raising concerns about its financial health and potential motives behind the dividend strategy [1][4]. Financial Performance - In 2024, Oriental Yuhong's net profit plummeted by 95.24% to only 108 million yuan, while it planned to distribute dividends amounting to 4.419 billion yuan, which is 41 times its net profit for the year [1]. - The company adjusted its dividend plan to 2.21 billion yuan, but this still raised concerns about its ability to maintain shareholder returns amidst declining profits [1]. - The company's cash reserves, including cash and trading financial assets, stood at 7.797 billion yuan, which could support the dividend but also masked underlying financial risks [1]. Debt and Liquidity Concerns - Prior to the dividend announcement, Oriental Yuhong's debt-to-asset ratio was 43.4%, with interest-bearing debt at 15.11%. If the full dividend is paid, the debt-to-asset ratio would rise to 48.14% and interest-bearing debt to 16.8% [2]. - By the end of 2024, the company's short-term debt reached 5.539 billion yuan, nearly equal to its remaining cash after dividends, indicating potential liquidity issues if cash flow does not improve [2]. - The company revealed a debt restructuring plan, indicating financial operations may rely on "mutual indebtedness," with significant amounts owed to suppliers and customers [2]. Bad Debt Risk - Oriental Yuhong has seen a continuous increase in credit impairment losses, escalating from 2.18 billion yuan in 2020 to 8.87 billion yuan in 2024, indicating rising bad debt risks [2][3]. Shareholder Dynamics - The controlling shareholder, Li Weiguo, holds 21.79% of the company, with 79.58% of his shares pledged, potentially leading to conflicts of interest regarding the high dividend payout [4]. - The adjusted dividend plan could provide Li Weiguo with approximately 491 million yuan, which may alleviate his financial pressure from share pledges [4]. Market Position and Strategic Adjustments - Oriental Yuhong's market share has declined from 17% in 2021 to 12.5% in 2024, with competitors gaining ground [5]. - The company is attempting strategic adjustments, including reducing direct sales to real estate companies and enhancing engineering and retail channel layouts, but these efforts have yet to yield significant results [5]. - Sales expenses increased by 16% in 2024, further compressing profit margins amid industry downturns, raising doubts about future profitability [5]. Conclusion - While the high dividend may temporarily boost market sentiment, the underlying financial risks, operational pressures, and potential conflicts of interest present significant concerns for investors [6].