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 pattern is also changing.
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 listed building materials and home furnishing companies counted in this statistics, 12 companies have achieved positive growth in operating income, accounting for 20%.
Among them, Grandland Group and Keda Manufacturing led the industry in operating income growth, reaching 111.18% and 38.01% respectively.
According to analysis, Keda Manufacturing’s annual operating income was 17.39 billion yuan, and overseas orders for ceramic machinery accounted for more than 60%. Overseas markets have successfully hedged against the downward pressure on domestic real estate demand, becoming a scarce high-growth benchmark in the industry.
Grandland Group’s substantial growth stems from an extremely low base in the previous year, which is a phased recovery. It still faces high debt pressure and is not a general reference for the industry.
Nearly 80% of companies have experienced a year-on-year decline in operating income, and the overall industry demand is weak.
Among them, companies that rely heavily on new home development and engineering decoration channels have experienced prominent declines. The operating income of Zhejiang Meida, Jiangshan Oppein, and Martian fell by 48.24%, 45.85%, and 44% respectively year-on-year, a significant decline.
In the field of customized home furnishings, the operating income of leading companies has generally fallen. The operating income of Oppein Home Furnishing and Sophia fell 8.94% and 10.74% respectively. The operation of traditional home furnishing stores is also under obvious pressure. Meike
The operating income of Long and Juran Smart Home fell by 15.85% and 14.05% respectively year-on-year; the ceramic sector also continued its downward trend, with the operating income of Marco Polo and Mona Lisa falling by 11.83% and 15.28% respectively year-on-year.
In addition, although the top five companies in terms of industry operating income are all dominated by leading traditional building materials companies, they are also showing a downward trend across the board.
Among them, Conch Cement ranked first in the industry with operating income of 82.53 billion yuan, down 9.33% year-on-year; Tianshan Co., Ltd. ranked second with operating income of 74.5 billion yuan, down 14.4% year-on-year; Oriental Yuhong ranked second with operating income of 27.58 billion yuan.
Industry revenue ranked third, down slightly by 1.7% year-on-year; BBMG Jidong ranked fourth with operating revenue of 24.5 billion yuan, down 3.11% year-on-year; Jangho Group ranked fifth with operating revenue of 21.85 billion yuan, down 2.5% year-on-year.
The 56 listed building materials and home furnishing companies have different profit performance, and their overall development faces 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%, reversing the decline in net profit attributable to the parent company in 2024.
The core reason is that in 2025, the company will continue to clear out inefficient production capacity, achieve systematic cost reduction through centralized procurement, technological transformation and fuel optimization, increase the proportion of high-end high-margin cement products, and release the increase in overseas high-profit business. Multiple advantages will offset the downward pressure on domestic operating income, and achieve steady growth in main business operating profits.
Following them are Oppein Home Furnishing, Keda Manufacturing, Robam Electric, Marco Polo, and 3TREES, which also rely on their main business operations to achieve profitability. The net profits attributable to the parent company in 2025 will be 1.997 billion yuan, 1.309 billion yuan, 1.256 billion yuan, 1.21 billion yuan, and 775 million yuan respectively.
Taking Keda Manufacturing as an example, operating income in 2025 will be 17.39 billion yuan, a year-on-year increase of 38.01%; net profit attributable to the parent company is 1.309 billion yuan, a year-on-year increase of 30.07%. The core benefit is from the explosion of overseas orders for ceramic machinery, overseas operating income accounts for more than 60%, and the global layout has achieved remarkable results.
Among the building materials and home furnishing companies that rely on their main business for profit, Macalline has become the company with the most serious losses in the industry.
In 2025, the net profit loss attributable to the parent company will be 23.722 billion yuan, a year-on-year plunge of 695.12%, setting an industry loss record.
Macalline’s management stated that the huge losses were caused by the combination of multiple factors such as a sharp decline in home store customer flow, a decline in rental income, a significant decline in the fair value of investment properties, and an increase in asset impairment provisions.
Among them, the loss from changes in the fair value of investment real estate exceeded 23.4 billion yuan, and the operating income during the same period was only 6.58 billion yuan, a year-on-year decrease of 15.85%.
Overall, dragged down by Macalline’s huge single loss of over 23.7 billion yuan, the overall net profit of 56 listed building materials companies totaled a loss of 11.6 billion yuan.
If Macalline is excluded, although the remaining 55 companies have achieved overall profitability, the industry is still facing general pressure. Over 60% of companies have seen a year-on-year decline in net profit, and nearly 30% of companies have fallen into losses. The average net profit margin continues to be under pressure, and it is difficult to repair the overall profitability 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.
From the perspective of asset-liability ratio, among the 56 listed building materials and home furnishing companies, the ones with higher debt ratios are Grandland Group, 3Tree Trees, Macalline, Jangho Group, and Keshun, which are 83.47%, 75.83%, 72.62%, 71.79%, and 67.32%.
Among them, Grandland Group’s debt ratio exceeded 80%, the highest in the industry, and short-term debt repayment pressure remains high. Such high-debt companies are deeply tied to the real estate engineering business. Affected by the delay in payment collection by real estate companies and the increase in bad debt provisions, it is increasingly difficult to eliminate debts and financial risks continue to accumulate.
Some leading building materials and stable consumer home furnishing companies have sufficient financial security, outstanding low leverage advantages, and outstanding anti-cyclical capabilities.
The asset-liability ratios of Zhejiang Meida, Tapai Group, Fusenmei, Haodaitai, and Conch Cement are at the absolute lowest in the industry, only 9.35%, 10.23%, 13.15%, 16.49%, and 20.42% respectively. The corporate debt burden is extremely light, and they have strong risk resistance in the industry down cycle. The “Matthew Effect” of industry finance continues to strengthen.
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. Conch Cement and Tianshan Co., Ltd. lead the industry in net operating cash flow, reaching 16.64 billion yuan and 12.26 billion yuan respectively. They have excellent repayment quality and extremely stable operating cash flow.
The cash flow performance of Oriental Yuhong, BBMG Jidong, Oppein Furniture, and Marco Polo was also stable, with net operating cash flows of 3.554 billion yuan, 3.351 billion yuan, 3.397 billion yuan, and 2.1 billion yuan respectively. The main business hematopoiesis capabilities are solid.
Small and medium-sized home furnishing companies and tail-end companies continue to lose cash flow and face severe operating pressure.
Sophia, Shangpin Home Delivery, Daya Shengxiang, Jiangshan Oppein, Martian and other companies have negative operating cash flows, which are -321 million yuan, -263 million yuan, -35 million yuan, -66 million yuan, respectively.
-201 million yuan. The core reasons are concentrated in the shrinkage of bulk business in the real estate chain, lag in project payment collection, increase in impairment of accounts receivable, and concentrated carry-over of early accounts received in advance. Combined with weak demand for offline retail terminals and continued weak transactions, the capital pressure on downstream real estate companies has led to a sharp contraction in cash inflows of home building materials companies, which has significantly weakened the company’s endogenous hematopoietic ability.
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.
