Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) announced on the evening of November 12 that it plans to sell certain commercial and office properties in Beijing’s Miyun District and Hangzhou’s Jianggan District (now renamed Shangcheng District) to optimize its asset structure and improve financial conditions. The proceeds will be used for daily operations.

The company expects an asset disposal loss of RMB25.8085 million, accounting for over 10% of its audited net profit in the latest fiscal year. The proposal was unanimously approved by the board on November 11 and does not require shareholder approval. The transaction is neither a related-party deal nor a major asset restructuring.

Notably, 10 of the 11 properties in Beijing were purchased as recently as July 3 this year, meaning the company plans to sell them less than five months after acquisition. These properties were initially bought as primary market transactions. Meanwhile, 13 properties in Hangzhou, acquired in December 2021, will be sold first at a total transfer price of approximately RMB7.8276 million.

Beijing Oriental Yuhong stated that the sale aligns with its strategic adjustments, aiming for quicker cash recovery. The company acknowledged that the Hangzhou properties were purchased during a peak in the real estate market, but sluggish demand and weak liquidity led to the discounted sale, which it deemed consistent with market practices.

The announcement follows similar moves by other A-share firms, including Aerospace Software and Shanghai Phoenix, which recently disclosed plans to sell idle properties in Beijing and Shanghai, respectively.

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