Core Insights - The article highlights the development of the calcium carbonate industry in Hezhou, Guangxi, which has evolved into a billion-dollar industry, focusing on eco-friendly packaging materials that are gaining international traction [1][3]. Industry Overview - Hezhou is recognized as "China's Heavy Calcium Capital," with significant reserves of calcium carbonate, including 7 billion tons of marble, accounting for 1/8 of China's total marble resources [3]. - The city has established itself as a key player in the industrial transfer and collaborative development within the Guangdong-Hong Kong-Macao Greater Bay Area, fostering a circular industrial chain centered around high-end calcium carbonate new materials [3][4]. Company Developments - Hezhou Lushui Environmental Technology Co., Ltd. has 12 production lines and has achieved an output value of over 38 million yuan from January to November 2023, with expectations to exceed 40 million yuan for the entire year [1][4]. - The company exports 52% of its products to countries including the United States, Canada, Vietnam, and Thailand, and plans to expand its production capacity significantly by 2027 [4][5]. - Guangxi Changhong Biomaterials Co., Ltd., a key project in Hezhou, plans to invest 3 billion yuan and aims to become the largest production base for biodegradable masterbatches in China [4][5]. Future Prospects - The focus for companies includes developing high-end powder materials and expanding into new applications such as eco-friendly packaging and construction materials [5]. - The local government has been supportive in optimizing the business environment, facilitating the growth of the industry by addressing operational challenges faced by companies [5][6].

Core Insights - The calcium carbonate industry in Hezhou is advancing towards high-end production, supported by a pilot research base that enhances the industry's upgrade [1][2][3] - Hezhou has established a comprehensive calcium carbonate ecological circular industry chain, contributing significantly to the local economy [2][3] Group 1: Industry Development - Hezhou has built a complete calcium carbonate ecological circular industry chain, including mining, natural stone products, calcium carbonate powder, artificial stone, composite new materials, and solid waste comprehensive utilization [2] - As of January to September, the industrial output value of Hezhou's calcium carbonate industry reached 16.039 billion yuan, with over 265 scale industrial enterprises, accounting for more than 50% of the city's total [2] Group 2: Technological Advancements - The establishment of 33 new innovation platforms has strengthened Hezhou's technological capabilities, including national torch bases and technology incubators [3] - The pilot research base has developed several key technologies, including high-performance artificial stone and high-value utilization of solid waste, addressing industry challenges [2][3] Group 3: Company Performance - Hezhou Green Tree Environmental Technology Co., Ltd. reported a production value of 32 million yuan from January to October, with an expected annual output exceeding 40 million yuan, and 52% of its products are exported [1] - The company operates 12 production lines that run continuously, producing high-quality calcium carbonate-based packaging materials suitable for extreme temperatures [1]

Core Viewpoint - The company, Oriental Yuhong, is actively pursuing overseas expansion while simultaneously managing debt recovery in response to underwhelming domestic market performance [1][4]. Group 1: Acquisition Details - Oriental Yuhong announced plans to acquire 100% of Chilean company Construmart S.A. for 880 million RMB, with the acquisition pending necessary approvals [1]. - Construmart reported revenues of approximately 2.82 trillion Chilean Pesos (around 2.09 billion RMB) and a net profit of 476.6 billion Chilean Pesos (approximately 35 million RMB) for 2024 [1]. - The acquisition is expected to leverage synergies in brand, research and development, supply chain, and cost control [3]. Group 2: Financial Performance - In 2024, Oriental Yuhong's revenue decreased by 14.52% to 28.06 billion RMB, with net profit dropping by 95.24% to 108 million RMB [5]. - For the first half of 2025, the company reported a revenue decline of 10.84% to 13.57 billion RMB and a net profit decrease of 40.16% to 564 million RMB [5]. - The core business of waterproof materials saw a revenue drop of 12.48%, reflecting challenges in the downstream real estate sector [5]. Group 3: Debt Recovery Efforts - The company is accelerating debt recovery from downstream real estate firms, with a total of approximately 839 million RMB in receivables being settled through asset exchanges [7]. - The total liabilities of Oriental Yuhong reached about 20.95 billion RMB, with an asset-liability ratio of 47.55% [8]. Group 4: International Expansion - Oriental Yuhong has been expanding its international presence since 2005, with ongoing projects in Saudi Arabia, Canada, and Malaysia [8]. - The company achieved overseas revenue of 576 million RMB in the first half of 2025, marking a 42.16% increase year-on-year [9]. Group 5: New Business Ventures - The company has acquired mining rights for marble in Jiangxi Province, aiming to enter the marble slab and calcium carbonate industries [9]. - However, the marble slab industry is facing significant competition, with a reported 18.6% decline in production in 2024 [10]. Group 6: Dividend Policy - Despite declining revenues and profits, Oriental Yuhong announced a cash dividend of 9.25 RMB per 10 shares, totaling approximately 2.21 billion RMB [12]. - The dividend is intended to provide timely returns to investors, although it has raised concerns regarding the financial health of the company and its controlling shareholder [13].