**Times reporter Sun Xianchao.
Oriental Group (600811) held a third quarter 2023 results briefing on December 13, and key members of the company's management such as Sun Mingtao, chairman and president, communicated with investors.
In recent years, affected by factors such as the market environment, the company has faced phased difficulties, the profit level of its main business has declined, and the disposal of assets in the real estate sector has not met expectations, which has also had a great impact on the company. The company's management is taking steps to improve its operating conditions and promote the acquisition of United Energy Group (0467.).HK) 25% equity project, increasing the company's new profit growth point, and actively promoting the seawater potassium extraction project, committed to improving the company's overall profitability and anti-risk ability. Sun Mingtao said.
According to the third quarter report of Oriental Group in 2023, the company achieved operating income of 64 from January to September 20231.8 billion yuan, a year-on-year decrease of 3751%；Achieved net profit of -10.3 billion yuan, a year-on-year decrease of 1361%。
In response to investors' questions, Sun Mingtao said that Oriental Group still takes modern agriculture and health food as its core business, and the seawater potassium extraction project is a positive measure to expand the agricultural industry chain.
Oriental Group's seawater potassium extraction project has attracted much attention from the capital market. According to the 2023 semi-annual report of Oriental Group, the groundbreaking ceremony of the company's subsidiary Oriental Sea Potassium (Putian) Marine Science and Technology *** with an annual output of 100,000 tons of seawater to extract potassium chloride was held in the North Shore Economic Development Zone of Putian City, and the seawater potassium extraction project entered the construction stage.
The construction period of the seawater potassium extraction project is expected to be 10 months, and the civil construction and related equipment processing and manufacturing of the project are steadily advancing, and the cost and profitability are subject to the data after the actual production. Sun Mingtao introduced.
According to the announcement of Oriental Group on the evening of December 13, 2022, Qinglonghu Jiahe, a wholly-owned subsidiary of the company, intends to acquire United Energy Group 65. by paying cash through its overseas SPV company7.2 billion shares, representing approximately 25% of UEG's total share capital. Upon completion of the transaction, the Company will hold a 25% stake in UEG. The transaction** of this transaction is determined to be 7US$2.3 billion, with the transaction required to be funded** by the company or self-funded.
United Energy Group is an independent international oil and gas upstream company, mainly engaged in the exploration, development and production of oil and gas. Headquartered in Hong Kong, China, with its operational management headquarters in Beijing, and operations in Pakistan, Iraq and Egypt. Through the injection of assets in Iraq and Egypt, UEG has significantly increased its reserve base, and has achieved steady growth in performance in recent years, with strong profitability and good sustainable development prospects.
Sun Mingtao said that the purpose of the company's acquisition of 25% equity of United Energy Group is to increase the company's new profit growth point, and optimize the company's profit structure by obtaining investment income and dividend income.
It is worth mentioning that Oriental Group announced on January 29, 2022 that it intends to repurchase the company** with its own funds of 400 million to 600 million yuan, and the repurchase ** will not exceed 45 yuan shares, the repurchase period shall not exceed 12 months. On March 25, 2022, Oriental Group held a general meeting of shareholders to deliberate and approve the above-mentioned repurchase plan. On March 24, 2023, the repurchase period has expired, and Oriental Group will repurchase 40 shares of the company through centralized bidding transactions580,000 shares, accounting for 001%, the total amount of funds used is 1 million yuan, which is only 025%。For this reason, the Shanghai Stock Exchange publicly reprimanded the Oriental Group and the relevant responsible persons in September this year.
We are deeply sorry for the non-fulfillment of share buybacks, and the management team has done their best to get rid of the impact of the real estate sector on the company and improve the company's performance. Sun Mingtao said.