① From 2020 to 2022, Oriental Group's net profit was 240 million yuan, -1,719 million yuan, and -996 million yuan respectively. Performance declined continuously, with a net loss of 103 million yuan in the first three quarters of this year; ② The performance growth points developed by the company, the Haishui Potassium Enhancement Project and the acquisition of United Energy shares are still in progress, and implementation is still to be realized.
Financial News Agency, December 13 (Reporters Liu Jian and Wang Ping An) Oriental Group (600811.SH)'s performance in recent years has not been satisfactory. While the main business has shrunk, the real estate business has also experienced losses. Furthermore, the company has been striving to develop new performance growth points, whether it is a seawater potassium extraction project or the acquisition of a 25% stake in United Energy, still needs to wait before they are realized. Support for future growth in the company's performance is still unknown.
At today's performance briefing, investors initially directly addressed the company's performance pain points in recent years: why is it difficult to increase the profit margin of the company's main business, and does the company have any improvement measures?
Sun Mingtao, chairman of the company, also confessed, “In recent years, due to factors such as the market environment, the company has faced phased difficulties. The profit level of its main business has declined, and asset disposal in the real estate sector that has not met expectations has also had a great impact on the company. The company management is taking active steps to improve business conditions.”
It is worth mentioning that the company's performance difficulties can be peeked into whether it is in terms of performance trends or implementation of specific projects. Some investors have bluntly pointed out whether the company's plant-based meat layout can be considered a failure from the side? “As demand in the domestic plant-based meat market falls short of expectations, purchasing power declines due to lower consumer demand, and the overall plant-based meat market is cooling. The company has adjusted its business strategy. While retaining R&D technology, it will carry out business depending on the situation in the plant-based meat market.” Sun Mingtao explained.
In fact, in order to cope with difficult performance, the company has been continuously seeking new performance growth points in recent years, including the seawater potash extraction project and the acquisition of 25% of United Energy's shares. The acquisition of United Energy's shares at the end of last year even drew attention from the Shanghai Stock Exchange to issue a letter requesting clarification on the necessity, rationality, and funding sources of the transaction. According to Sun Mingtao, the corresponding projects may improve the company's overall profitability in the future. “The company is actively promoting the acquisition of the 25% equity project of United Energy Group Co., Ltd., to increase the company's new profit growth points, and at the same time actively promote the seawater potassium extraction project, aiming to enhance the company's overall profitability and resilience to risks.”
It should be noted that in May, the company previously stated on an interactive platform that asset disposal for some real estate projects would make substantial progress before the end of the year. Regarding the current progress, Sun Mingtao said, “The relevant land owned by Dongfang Anyi (Beijing) Urban Development and Investment Co., Ltd., a subsidiary of the company, is within the scope of the Jingxi shantytown renovation project, and work related to the collection and storage of state-owned construction land use rights is in progress.”
Kang Wenjie, vice president of the company, added, “The disposal of the Qinglong Lake project involves the local government and other relevant parties. The company has arranged for special personnel to connect on a weekly and daily basis. Management and shareholders have the same concerns, and they will do their best to seek early disposal and resolution.”
According to public information, the company's performance has been unsatisfactory in recent years, and there has been a continuous decline. From 2020 to 2022, Oriental Group's net profit was 240 million yuan, -1,719 million yuan, and -996 million yuan respectively, and the company's net loss in the first three quarters of this year was 103 million yuan.