In the context of the continued downturn in the domestic real estate market and shrinking demand for building waterproofing, Keshun Co., Ltd., a leading enterprise in the waterproofing industry, has recently made an important strategic layout.
On May 28, 2026, Keshun Waterproof Technology Co., Ltd. acquired 70% of the equity of Dalian Paint Co., Ltd. and subscribed a capital contribution of 15.61 million yuan.
This marks that this company, which ranks second in sales of waterproof materials in China, has officially entered the coatings industry through capital acquisitions after many previous trials.
Behind this cross-border merger and acquisition of Keshun shares is the unprecedented cold winter that the waterproofing industry is experiencing.
In recent years, the real estate market has continued to decline, which has directly impacted the demand for building waterproofing.
At the same time, consumer demand for home decoration has also shrunk significantly, resulting in sluggish sales at the retail end.
Due to the superposition of multiple factors, waterproofing companies in the lower reaches of the industrial chain have deeply felt the chill of the market.
Keshun’s financial data clearly reflects this dilemma.
According to the financial report, the company’s operating income from 2019 to 2025 was 4.652 billion yuan, 6.238 billion yuan, 7.771 billion yuan, 7.661 billion yuan, 7.944 billion yuan, 6.829 billion yuan, and 6.044 billion yuan respectively.
From the perspective of growth rate, high-speed growth of 50.22% and 34.09% was maintained in 2019 and 2020, but the growth rate has slowed to 24.57% in 2021, and there will be a negative growth of 1.42% in 2022.
Although it rebounded slightly to 3.70% in 2023, it fell sharply by 14.04% and 11.49% in 2024 and 2025 respectively.
What is even more serious is the profitability situation.
Keshun Co., Ltd.’s net profit once climbed from 363.4 million yuan in 2019 to a high of 890.3 million yuan in 2020, but then continued to decline, reaching 672.6 million yuan in 2021, plummeting to 178.2 million yuan in 2022, and a loss of 337.6 million yuan in 2023.
Although it barely turned a profit in 2024 and achieved a meager profit of 35.5 million yuan, the loss expanded significantly to 535 million yuan in 2025.
The performance growth rate has slowed down and the loss has expanded. What Keshun Co., Ltd. faces is not an individual case, but a general dilemma in the entire waterproofing industry.
In order to seek new growth space, various waterproofing companies have begun to diversify their layouts.
Oriental Yuhong cross-border into the construction and industrial coatings industry, Yuzhongqing invests in architectural coatings and insulation decorative panels, Nuwa Waterproofing deploys new marine antifouling coatings for ships, Karen Co., Ltd. cross-borders into fire-retardant coatings… Cross-border competition has become an industry trend.
The acquisition of Dalian Paint by Keshun Co., Ltd. was not an impulse, but after years of exploration and preparation.
As early as 2018, Keshun Co., Ltd. showed strong interest in the coating field.
On December 25, 2018, the company invested in the establishment of Shenzhen Qianhai Platinum New Materials Co., Ltd. to engage in the industrial coatings business, and specially hired the technical and sales backbone of the international coatings giant Hempel to come and operate.
However, this attempt did not last long. Qianhai Platinum Shield was canceled on September 23, 2019, and the development of the coatings business was terminated immediately.
But Keshun Co., Ltd. did not give up its paint dream.
On January 3, 2025, the company invested in the establishment of a wholly-owned subsidiary, Guangdong Shunyijie New Material Technology Co., Ltd., and launched its independently developed self-cleaning nano-coating technology that year.
This technology product can be widely used in photovoltaics, power generation, building curtain walls, housing construction, municipal buildings, transportation facilities, highway signs, street lights, high-speed rail trains, buses, family cars and other fields, marking Keshun’s substantial breakthrough in the research and development of coating technology.
At the same time, Keshun shares have also made frequent moves in the layout of production bases.
Anhui Keshun New Materials Technology Co., Ltd., a wholly-owned subsidiary of its subsidiary, will invest 510 million yuan in 2025 to build an intelligent production base project for coatings, waterproof materials and supporting raw materials, including a water-based architectural coatings project with an annual output of 50,000 tons.
Another wholly-owned subsidiary, Dezhou Keshun Building Materials Co., Ltd., also invested 8 million yuan to build a new coating production project with an annual output of 16,100 tons. The products include polyurethane grouting materials, polyurea waterproof coatings, epoxy floor coatings, and solvent-based and water-based anti-corrosion coatings.
In terms of organizational structure, Keshun shares also take frequent actions.
On January 5, 2026, Keshun Floor Material Technology (Guangdong) Co., Ltd. was registered and established with a registered capital of 50 million yuan. Its business scope includes coating manufacturing, coating sales, and anti-corrosion material sales.
The company also jointly invested with Zhengyu Zhumeng Construction Group Co., Ltd. to establish Keshun Paint Technology (Foshan) Co., Ltd., and based on this investment to establish Henan Keshun Paint Technology Co., Ltd.
Although the four companies invested and established in 2025, Keshun Paint Technology (Linyi) Co., Ltd., Shaanxi Keshun Paint Technology Co., Ltd., Changsha Keshun Paint Technology Co., Ltd., and Guangxi Keshun Building Materials Technology Co., Ltd., have all been canceled recently, this reflects Keshun’s adjustment of layout strategy through continuous trial and error.
It is worth noting that Keshun Co., Ltd.’s paint strategy is not limited to the domestic market, and its overseas layout is also advancing simultaneously.
In 2025, Keshun Co., Ltd. reached a strategic cooperation with SAC Group and established two modern production bases in Malaysia: Batu Gajah Base in Perak and Johor Bahru Base.
Among them, the business of the Perak production base covers water-based architectural coatings, waterproof coatings, industrial coatings, powder waterproof building materials and construction chemicals, with an annual output of up to 27 million liters; the Johor Bahru base integrates headquarters, production, quality inspection, R&D, warehousing, and color mixing, with its core focus on high-performance fields such as floor coatings, heavy-duty anti-corrosion coatings, and industrial coatings.
This overseas layout not only helps Keshun Co., Ltd. expand the Southeast Asian market, but also lays the foundation for its global integration of resources and improvement of competitiveness.
The Dalian Paint Co., Ltd. acquired this time is an old paint company with a history of more than 100 years.
Dalian Paint was founded in 1919. It was renamed Dalian Paint Factory in 1950. It was placed under Dahua Group Co., Ltd. in 1996. In 2003, it was restructured from a state-owned enterprise to a private enterprise. In December 2015, it was officially renamed Dalian Paint Co., Ltd.
In terms of technology accumulation, Dalian Paint has a glorious history: in 1957, it successfully developed perchlorethylene paint products and filled the domestic gap; in 1958, it took the lead in successfully developing automotive exterior paint; in 1970, it successfully trial-produced a new process for the production of bisphenol A by ion method, filling the technical gap in Liaoning Province.
At present, Dalian Paint owns its own brand “Seagull”, and its products cover many categories such as ship coatings, vehicle coatings, port machinery coatings, rolling stock coatings, steel structure anticorrosive coatings, industrial protective coatings, engineering machinery coatings, special coatings, architectural coatings, wood coatings, etc.
Some analysts believe that for Keshun Co., Ltd., the acquisition of Dalian Paint has multiple strategic significance.
First of all, through this acquisition, Keshun can directly obtain Dalian Paint’s mature product line, technology accumulation and brand influence, greatly shortening the time to enter the coatings market.
Secondly, Dalian Paint’s professional capabilities in the fields of ship coatings, industrial anti-corrosion coatings and other fields are highly consistent with the goal of Keshun Co., Ltd.’s 2026 strategic plan of “industrial anti-corrosion coatings will make full use of existing classification society certifications and military qualifications to accelerate product and market transformation and enter the high-end ship coatings field.”
According to the five major business plans for 2026 proposed by Keshun Co., Ltd. in the 2025 annual report, the company clearly stated that it will “accelerate the volume of emerging businesses and occupy the market high ground.”
Specific to coating-related fields, the company has planned a clear development path: accelerating the development of nano-self-cleaning materials in the photovoltaic field, continuing to optimize the composite business model of “material sales + operation and maintenance services + energy management”, and actively exploring the self-cleaning civilian market; radiation manufacturing
Cold products focus on new productivity markets such as data centers, base station computer rooms, and granary cold storage. With their excellent cooling and heat dissipation functions, they can truly achieve the effect of “liquid air conditioning”; industrial anti-corrosion coatings will enter the field of high-end ship coatings with the help of various classification society certifications and military qualifications.
Analysts believe that Keshun Co., Ltd.’s cross-border entry into the coatings industry is mainly based on two considerations: First, the waterproof material field where the company is located has sluggish growth and needs to open up new performance growth points; second, it seeks greater development space.
Affected by the continued downturn in the real estate market, the growth of Keshun Co., Ltd.’s main waterproofing business has slowed down in recent years, and its performance has even declined.
Cross-border entry into the new field of coatings can not only complement and hedge the waterproofing business, but also spread risks through diversified operations.
Business diversification can have the same risk diversification effect as an investment portfolio.
Different industries are in different life cycles, and companies operating across industries can avoid the risk of earnings fluctuations caused by overreliance on a certain industry.
At the same time, relying on the customer resources accumulated in its main waterproofing business, the synergy of sales channels, R&D strength and good brand influence, Keshun has natural advantages in extending to the coatings industry.
This will not only provide customers with more complete building materials system solutions, build a deeper and wider moat for the company, but also bring new profit growth points.
From its first test in 2018 to its formal acquisition of Dalian Paint in 2026, Keshun Co., Ltd. took eight years to complete its strategic layout in the coatings field.
There have been failures and adjustments during this process, but the company has never given up its determination to cross borders.
However, at a time when the main waterproofing business is facing severe challenges, cross-border coatings have become a key measure for Keshun Co., Ltd. to open up a second growth curve.
The development of new markets will bring strategic depth to the future development of Keshun Co., Ltd., so as to achieve strategic goals better and faster.
By acquiring Dalian Paint, a century-old store, Keshun Co., Ltd. not only gained technology and product accumulation, but also gained valuable time and market access.
This diversified breakthrough battle for anti-faucet has just begun.
