As 2025 performance forecasts are released one after another, the performance of the coatings and waterproofing industry has attracted much attention.
Although the leading companies in the industry, Dongfang Yuhong and Beijing New Construction Building Materials, have not yet announced their results, judging from the four companies that have released forecasts: Sankeshu, Keshun, Asia Energy, and Karen, the industry performance has changed significantly, showing a trend of fierce differentiation.
Among these four companies, the performance differentiation is particularly obvious at the poles of profit and loss.
3TREES ranks first with an estimated net profit attributable to the parent company of 760 million to 960 million yuan, with a year-on-year increase of up to 189.21%.
Asia Pacific Innovation is expected to lose 830 million to 1.25 billion yuan, becoming the company with the heaviest losses.
In addition, the trends of the two waterproof companies are also completely opposite. Keshun Co., Ltd. is expected to turn from profit to loss, while Karen Co., Ltd. is expected to turn losses into profit.
The reasons for the changes in the performance of these four companies can be mainly attributed to three aspects.
The first is the operating environment of the real estate market and construction industry.
Asias Innovation bluntly stated that it has been affected by the deep adjustment of the real estate and construction industries. The decline in orders has led to a decrease in revenue and gross profit margin. At the same time, it has made provisions for asset impairment, resulting in a loss in profits.
The second is the fluctuation of raw material prices.
The industry-wide decline in raw material prices has led to an improvement in profit margins, which has created favorable conditions for some companies with outstanding management capabilities. Three Trees is one of the beneficiaries.
The last step is the company’s own strategic adjustment and asset impairment provision.
Keshun Co., Ltd. proactively reduced the proportion of real estate customers, reduced orders with higher risk of repayment, and strictly controlled the credit period, resulting in a decline in operating income. In addition, it also made sufficient impairment provisions. It is estimated that the impact of credit and asset impairment losses will be about 750 million yuan. Under the influence of various comprehensive factors, it turned from profit to loss.
In contrast, 3TREES has achieved a double improvement in production efficiency and gross profit margin by actively adjusting its product structure, broadening channels and promoting digital transformation, thus bucking the trend and growing significantly.
Karen Shares’ turnaround was partly due to the successful integration of the newly acquired company Suzhou Jiazhicai Optoelectronics Technology, which has brought significant profit contribution since May 2025. At the same time, it strengthened the management of accounts receivable and significantly reduced credit impairment losses, demonstrating the path to finding new growth points through extended mergers and acquisitions and creating profits through excellent operations and financial risk control capabilities.
In the face of industry changes, corporate strategic adjustments have brought significant performance pain in the short term, which is especially obvious among waterproof companies.
But despite the challenges faced by the industry, companies can still achieve breakthroughs through differentiated strategies and refined management.
For example, 3TREES’s endogenous growth model of product optimization and digital transformation, as well as Karen Co., Ltd.’s external mergers and acquisitions and strengthened operation and management model, have provided lessons for other companies in the industry to learn from.
