To implement its internationalization strategy and expand overseas markets, Oriental Yuhong officially disclosed a cross-border acquisition plan. Recently, the company's board of directors reviewed relevant proposals and finalized the acquisition of 55% controlling stakes in two Indonesian building materials companies, PT IALK and PT ACUM, through capital increase and equity acquisition. The acquisition was fully funded by the company's Indonesian subsidiary.
Based on the exchange rate of Bank of China on May 29, 2026, the total investment in this acquisition project is approximately IDR 1.43 trillion, equivalent to RMB 542.03 million. It is reported that both Indonesian target companies were established on August 15, 1985, controlled by the same entity, and are local leading waterproof building materials enterprises. Among them, PT IALK primarily produces waterproof coatings, tile adhesives, and other products, with output mainly supplied to related companies; PT ACUM focuses on terminal sales, holding the Aquaproof brand, and has built a complete retail network relying on local wholesalers, building material stores, and large supermarkets. The two companies form a mature production and sales system.
In terms of operating performance, both companies performed steadily in 2025, with stable profitability and revenue. Specific data shows: PT ACUM had revenue of RMB 319 million and net profit of RMB 16.3597 million; PT IALK had revenue of RMB 240 million and net profit of RMB 74.5511 million.
Oriental Yuhong's layout in Indonesia is primarily driven by the favorable investment potential of the local market. Indonesia has a large population base, significant advantages in raw materials and labor costs, and its infrastructure and real estate sectors are continuously expanding, directly driving the steady increase in demand for waterproof building materials. In addition, close economic and trade ties between China and Indonesia, with China being Indonesia's primary trading partner for a long time, have laid a solid market foundation for this cross-border cooperation. The acquisition targets have mature local channels and professional management teams. Subsequently, Oriental Yuhong will leverage its full industry chain and system solution advantages to expand the product range of the target companies and continuously drive revenue growth of the cooperative enterprises.
From a long-term development perspective, this acquisition is a key step in Oriental Yuhong's global layout. The company can leverage the local resources of the target companies to firmly establish itself in the Indonesian market, further radiate to the entire Southeast Asian market, fill gaps in the company's overseas industry chain, and improve its global industrial layout.
At the same time, this acquisition also carries certain potential risks. The high-value acquisition may result in significant goodwill on the financial statements, and the company also needs to address issues such as exchange rate fluctuations and cross-border corporate cultural integration.
Currently, the overseas segment has become a new growth point for the company's performance. As overseas production capacity gradually comes online, Oriental Yuhong's overseas business is expected to maintain rapid growth, becoming an important core driver for the company's long-term stable development.
To implement its internationalization strategy and expand overseas markets, Oriental Yuhong officially disclosed a cross-border acquisition plan. Recently, the company's board of directors reviewed relevant proposals and finalized the acquisition of 55% controlling stakes in two Indonesian building materials companies, PT IALK and PT ACUM, through capital increase and equity acquisition. The acquisition was fully funded by the company's Indonesian subsidiary.
Based on the exchange rate of Bank of China on May 29, 2026, the total investment in this acquisition project is approximately IDR 1.43 trillion, equivalent to RMB 542.03 million. It is reported that both Indonesian target companies were established on August 15, 1985, controlled by the same entity, and are local leading waterproof building materials enterprises. Among them, PT IALK primarily produces waterproof coatings, tile adhesives, and other products, with output mainly supplied to related companies; PT ACUM focuses on terminal sales, holding the Aquaproof brand, and has built a complete retail network relying on local wholesalers, building material stores, and large supermarkets. The two companies form a mature production and sales system.
In terms of operating performance, both companies performed steadily in 2025, with stable profitability and revenue. Specific data shows: PT ACUM had revenue of RMB 319 million and net profit of RMB 16.3597 million; PT IALK had revenue of RMB 240 million and net profit of RMB 74.5511 million.
Oriental Yuhong's layout in Indonesia is primarily driven by the favorable investment potential of the local market. Indonesia has a large population base, significant advantages in raw materials and labor costs, and its infrastructure and real estate sectors are continuously expanding, directly driving the steady increase in demand for waterproof building materials. In addition, close economic and trade ties between China and Indonesia, with China being Indonesia's primary trading partner for a long time, have laid a solid market foundation for this cross-border cooperation. The acquisition targets have mature local channels and professional management teams. Subsequently, Oriental Yuhong will leverage its full industry chain and system solution advantages to expand the product range of the target companies and continuously drive revenue growth of the cooperative enterprises.
From a long-term development perspective, this acquisition is a key step in Oriental Yuhong's global layout. The company can leverage the local resources of the target companies to firmly establish itself in the Indonesian market, further radiate to the entire Southeast Asian market, fill gaps in the company's overseas industry chain, and improve its global industrial layout.
At the same time, this acquisition also carries certain potential risks. The high-value acquisition may result in significant goodwill on the financial statements, and the company also needs to address issues such as exchange rate fluctuations and cross-border corporate cultural integration.
Currently, the overseas segment has become a new growth point for the company's performance. As overseas production capacity gradually comes online, Oriental Yuhong's overseas business is expected to maintain rapid growth, becoming an important core driver for the company's long-term stable development.
