On the evening of January 29, 2026, Kinlong Hardware (002791.SZ) released its 2025 performance forecast.
According to the announcement, Kin Long Hardware expects that the net profit attributable to the parent company and non-net profit after deduction will turn from profit to loss year-on-year in 2025. The net profit attributable to the parent company is expected to be a loss of 70 million to 95 million yuan, and the non-net profit after deduction is expected to be a loss of 95 million to 115 million yuan.
As for the reason for the current loss, Kinlang Hardware stated that market competition in the domestic construction and building materials industry will continue to intensify in 2025, coupled with the shrinking demand caused by the in-depth adjustment of the real estate market, which will have a certain impact on the company’s operations.
“In 2025, the company will continue to work around the strategic positioning of the integrated supply of building accessories. In response to market changes, the company actively optimizes its business structure. However, the company’s domestic business orders that are highly related to real estate have decreased; at the same time, the company has strengthened risk prevention and control and prudently carried out large-scale engineering project cooperation, resulting in a year-on-year decline in engineering channel revenue; the development progress of new products and new scenario business is relatively lagging behind.”
In terms of overseas markets, the company has maintained a good growth trend relying on its previous market development accumulation and customer resources. However, the overall proportion of overseas business is still small and cannot offset the impact of the decline in domestic business.
Therefore, the company’s overall operating income in 2025 is expected to drop by about 15% year-on-year.
From the perspective of market environment, competition in the domestic construction and building materials industry is increasing day by day, with many companies competing for a limited market share.
The in-depth adjustment of the real estate market has brought huge challenges to Kin Long Hardware’s business. The contraction of demand has caused a significant reduction in real estate-related business orders.
Although the company actively responded to market changes, optimized its business structure, and strengthened risk prevention and control, the results were not ideal against the backdrop of declining domestic business.
The decline in revenue from engineering channels and the lag in business development of new products and new scenarios all reflect the difficulties the company faces in market changes.
Although the overseas market shows a good growth trend, due to its relatively small proportion, it is difficult to support the overall performance.
In addition, Jianlang Hardware pointed out that some of the company’s assets showed signs of impairment due to changes in the market environment during the current period. Based on the principle of prudence, the company made corresponding impairment provisions for related assets that may be impaired in accordance with relevant regulations.
This also further affected the company’s profits.
This pre-performance loss is a severe challenge for Kin Long Hardware. The company needs to further adjust its strategy, increase business expansion in the domestic market, accelerate the development of new products and new scenario businesses, and at the same time continue to consolidate the development of overseas markets to enhance the company’s overall competitiveness and profitability and cope with the increasingly complex market environment.
