Hefei Hengxin's July Surge: 500 Million for New Factory, 60 Million for Land, Another 40 Million Contract!

Amidst the global wave of sustainable development, Hefei Hengxin Life Technology Co., Ltd. (hereinafter referred to as "Hengxin Life"), which focuses on the field of green degradable products, is accelerating its strategic layout. During July, the company announced a series of major developments, including plans to invest over 500 million yuan to build a new production base in Hefei. Previously, it acquired land for its Shanghai subsidiary for less than 60 million yuan and actively participated in equity investments. Meanwhile, Hengxin Life also secured a large order from China Southern Airlines, demonstrating its strong capabilities and broad prospects in the eco-friendly packaging sector.

Major Expansion: Establishing a Green Biodegradable Products Manufacturing Base in Hefei

On the evening of July 27, 2025, Hengxin Life released a noteworthy announcement titled "Announcement on the Proposed Purchase of Land Use Rights and Investment in Construction Projects." The announcement disclosed that on July 26, the company held the seventh meeting of its second board of directors, at which the "Proposal on the Proposed Purchase of Land Use Rights and Investment in Construction Projects" was reviewed and unanimously approved.

According to the proposal, Hengxin Life and its subsidiaries plan to invest in the construction of a project in Changfeng County, Hefei City, Anhui Province, using their own funds, bank loans, or other financing methods.A brand-new production base for green biodegradable products。The total investment of the project is expected not to exceed RMB 505 million, which includes the land use rights transfer fee.The company stated that the final total investment of the project will be flexibly adjusted based on actual scale layout, project land conditions, and environmental capacity factors.

Hengxin Life pointed out that the purchase of land use rights and investment in the construction of a new production base is a necessary move to meet the company's actual business development needs. This initiative will greatly help the company improve its industrial layout, optimize its product structure, and further expand its business scale, in order to better meet the growing customer demand for green and biodegradable products.

In addition, the construction of the new base will effectively expand the production capacity of the company’s advantageous products, thereby comprehensively enhancing the company’s overall strength. This is highly consistent with the company’s established strategic planning and business development direction, and will have a positive and far-reaching impact on the company’s future development.

It is worth mentioning that Hengxin Life believes the implementation of this investment project will also help the company attract and cultivate more professional technical talents, further enhance its level and innovation capability in the field of technological research and development, and lay a solid foundation for the company’s sustainable development in the future.

Previous Arrangement: The Shanghai subsidiary bid for land to expand packaging product manufacturing.

On July 18, Hengxin Life released the "Progress Announcement on the Acquisition of Land Use Rights by a Controlling Subsidiary Through Auction and External Investment," disclosing another significant layout in Shanghai. The announcement traces back to the first board of directors' ninth meeting held on March 23, 2023, and the 2022 annual general meeting held on April 13 of the same year. At that time, the meetings reviewed and approved the "Proposal on the Participation of the Company's Subsidiary Shanghai Yike Environmental Protection Technology Co., Ltd. in the Land Auction."

According to the proposal, Hengxin Life's subsidiary, Shanghai Yike Environmental Technology Co., Ltd., plans to bid for a plot of land approximately 53 mu in size in Zhujing Town, Jinshan District, Shanghai. The expected transaction amount will not exceed RMB 60 million. After successfully obtaining the land use rights, the plot is planned to be used for the construction of a packaging products manufacturing project, with a total investment not exceeding RMB 500 million. The company also authorizes the management team of Shanghai Yike Environmental Technology Co., Ltd. to communicate with the local government on the above matters and to handle the necessary procedures such as project filing, signing of relevant agreements, land bidding, and the construction and implementation of the project.

Recently, the company's holding subsidiary, Shanghai Eko Environmental Technology Co., Ltd., successfully won the state-owned construction land use rights for the plot numbered "Jinshan District JSS2-0401 Unit 11-12 Plot (CB_201207005)" offered by the Shanghai Jinshan District Planning and Natural Resources Bureau. They signed the "Shanghai State-Owned Construction Land Use Rights Transfer Contract" and obtained the real estate ownership certificate.Hengxin Life stated that the successful acquisition of the land use rights for the aforementioned plot in this auction is primarily to meet the construction needs of the packaging products manufacturing project. This will facilitate the smooth progress and implementation of the project, further improve the company’s industrial layout, thereby ensuring the company’s continuous and stable development. It fully aligns with the company’s long-term development strategy and also provides a solid guarantee for the company’s sustainable development in the future.

Diversified Investment: Partnering with Professional Institutions to Strategically Allocate Equity Investments

In addition to direct investments in the production base, Hengxin Life also disclosed its latest developments in the investment field this month. According to the company's strategic planning needs, to further expand its business areas and better leverage the expertise and resource advantages of professional investment institutions, Hengxin Life intends to collaborate with Beijing Fangyuan Jinding Investment Management Co., Ltd. (referred to as "Beijing Jinding", which is also the fund manager, general partner, and executive affairs partner) and other limited partners to jointly make investments.

Hengxin Life Plan, as a limited partner, subscribed to the fund shares of Gongqingcheng Jinchi with its own funds amounting to RMB 10 million. It is understood that the investment direction of this partnership will focus on a single investment target, namely, achieving the capital appreciation of the partnership through equity investment in Shandong Tailv Yuan Food Technology Co., Ltd.

Hengxin Life believes that the company's joint investment with professional investment institutions can effectively leverage the resources and advantages of these institutions in the field of equity investment, while ensuring the stable development of its main business. This will allow the company to venture into investment business, improve the efficiency of its capital operations, and further enhance its overall competitiveness and profitability.

Outstanding Performance and Industry Strength: China Southern Airlines’ Large Orders and the Reputation as a High-Tech Enterprise

Behind this series of strategic layouts is Hengxin Life's strong performance and profound industry strength. According to Qichacha data, Hengxin Life officially announced on July 28, 2025, that it won the bid for the procurement project of China Southern Airlines Jiayuan (Guangzhou) Aviation Supplies Co., Ltd., with a bid amount as high as 39.457 million yuan, which is undoubtedly an important milestone in its business development.

Financial data shows that Hengxin Life achieved an operating income of 1.594 billion yuan in 2024, with a year-on-year growth rate of 11.86%. Among its main product composition, degradable products accounted for as much as 54.71%, non-degradable products accounted for 43.26%, and other businesses accounted for 2.03%, highlighting its prominent advantage in the environmental protection product sector. During the same period, the net profit attributable to the parent company's shareholders was 220 million yuan, a year-on-year increase of 2.82%, and the return on equity reached 23.54%. In the first quarter of 2025, the company's performance continued to maintain rapid growth, with operating income of 419 million yuan, a year-on-year increase of 24.18%; net profit attributable to the parent company's shareholders was 82 million yuan, a substantial year-on-year increase of 79.79%.

As a high-tech enterprise focused on the research, development, production, and sales of paper and plastic tableware, Hengxin Life possesses the full process capabilities from product design to production. Its products widely cover various consumer fields such as fast food, takeout, and beverages, and are exported to many countries and regions in Asia, North America, Oceania, and Europe, demonstrating its strong global layout capability.

In the field of biodegradable catering utensils, Hengxin Life holds a significant advantage. The company has been listed as one of the "Top Ten Degradable Plastic Enterprises in China's Light Industry" for six consecutive years and has been awarded numerous honors such as the national-level "Little Giant" enterprise specializing in niche markets, and the champion enterprise of Anhui Province specialized in niche markets. In addition, several of the company's products have received national green design product certification, highlighting its leading position in environmental technology and product innovation. As a vice-chairman unit of the Degradable Plastics Professional Committee of the China Plastics Processing Industry Association, Hengxin Life has led or participated in the formulation of several national standards, demonstrating its strong technical strength and industry influence.

Hefei Hengxin Life's recent series of actions undoubtedly outline its clear and proactive development blueprint. Against the backdrop of environmental protection and sustainable development becoming a global consensus, Hengxin Life aligns with the pulse of the times, striving to dominate the promising market of green degradable products through multidimensional planning. The company is accelerating the construction of its comprehensive competitive advantage in the field of green degradable products through a dual-driven model of "industry + investment."

Supported by national policies and driven by market demand, this "specialized, refined, and innovative" small giant is expected to achieve an even more brilliant future in the broad field of sustainable packaging. Its series of well-organized strategic deployments is a vivid example of how excellent Chinese manufacturing enterprises actively respond to challenges and seize opportunities amid the global wave of green transformation.