Building materials and home furnishing companies are undergoing a round of in-depth adjustments.
In the 2025 financial reporting season, statistics on the operating performance of 56 listed building materials and home furnishing companies show that the industry faces many challenges and the restructuring of the structure is accelerating.
From the perspective of operating income, the incremental “dividends” of the home building materials industry have faded, and the development of each segment has become significantly differentiated.
Among the 56 companies included in this statistics, only 20% achieved positive growth in operating income.
Grandland Group and Keda Manufacturing led the way in operating income growth. Keda Manufacturing’s annual operating income was 17.39 billion yuan. Overseas orders for ceramic machinery accounted for more than 60%. Overseas markets have successfully hedged against the downward pressure on domestic real estate demand. Grandland Group’s substantial growth stemmed from an extremely low base in the previous year. It is a phased recovery and is still facing high debt pressure.
Nearly 80% of companies have experienced a year-on-year decline in operating income, with companies that rely heavily on new home development and engineering decoration channels experiencing sharp declines, such as Zhejiang Meida, Jiangshan Oppein, and Martian.
The operating income of leading companies in the field of customized home furnishings has generally fallen, the operation of traditional home furnishing stores has been under pressure, and the ceramic sector has also continued its downward trend.
Although the top five companies in the industry’s operating income are dominated by leading traditional building materials companies, all of them are showing a downward trend.
The 56 listed building materials and home furnishing companies have different profit performance, and the overall development is facing challenges.
Conch Cement has become the industry’s “profit king” by virtue of cost control and production capacity optimization. The net profit attributable to the parent company in 2025 will reach 8.113 billion yuan, a year-on-year increase of 5.42%.
Companies such as Oppein Home Furnishing and Keda Manufacturing also rely on their main business operations to achieve profitability.
Macalline has become the company with the most serious losses in the industry. In 2025, the net profit attributable to the parent company will be a loss of 23.722 billion yuan, a year-on-year plunge of 695.12%. It was affected by multiple factors such as a sharp decline in customer flow in home furnishing stores and a decline in rental income.
Affected by Macalline’s huge losses, the overall net profit of 56 companies totaled a total loss of 11.6 billion yuan. If Macalline is excluded, the remaining 55 companies were profitable overall, but more than 60% of the companies’ net profits fell year-on-year, and nearly 30% of companies fell into losses. It is difficult to repair the overall profit of the industry.
From the perspective of debt scale, the industry’s high leverage risks are mainly concentrated in home furnishing stores, engineering decoration, waterproof building materials and other tracks.
Enterprises such as Grandland Group have high debt ratios and high short-term debt repayment pressures. Affected by the delay in payment collection by real estate companies, it is difficult to eliminate debt and accumulate financial risks.
Leading building materials and stable consumer home furnishing companies such as Zhejiang Meida and Tapai Group have sufficient financial security, prominent low leverage advantages, and outstanding anti-cyclical capabilities.
From the perspective of operating cash flow performance, the industry’s cash hematopoiesis capabilities are significantly polarized.
Traditional cement leaders are the core cash contributors to the industry, such as Conch Cement and Tianshan Co., Ltd. leading the way in net operating cash flow.
The cash flow performance of companies such as Oriental Yuhong is also stable.
Small and medium-sized home furnishing companies and tail-end companies continue to lose cash flow and face severe operating pressure. The core reasons are concentrated on the shrinkage of bulk business in the real estate chain and the lag in project payment collection, which has significantly weakened the company’s endogenous hematopoietic capabilities.
Overall, in the building materials and home furnishing industry in 2025, under the background of continued weak real estate demand and intensified industry stock involution, leading companies with abundant cash flow, low leverage, and stable main businesses will continue to go through the cycle. Companies with high debt, weak collections, and high dependence on real estate will continue to face financial clearing pressure, and the industry structure is accelerating restructuring.
