Against the backdrop of in-depth adjustments in the real estate industry, the building materials industry as a whole is facing pressure from shrinking demand.
Beijing New Construction Building Materials, which had bucked the trend for two consecutive years, failed to continue its upward trend in 2025, and its performance showed a quarter-to-quarter decline.
In the first three quarters of this year, the company’s operating income fell by 2.25% year-on-year, net profit attributable to the parent company dropped by 17.77% year-on-year, and gross profit margin and net profit margin also fell simultaneously.
Single-quarter data showed even greater pressure, with positive growth in the first quarter turning to year-on-year declines in the second and third quarters, and the decline continued to expand.
Behind the performance changes, it is not only affected by the decline in real estate investment leading to insufficient demand for the core business of gypsum board and intensified market competition, but also reflects the phased challenges in the industry’s transformation period.
In this context, as of October 31, the stock price of Beijing New Construction Building Materials has fallen by 19.29% during the year, fluctuating downwards.
In order to break through the predicament, BNBM has focused on its coating and waterproofing “two-wing” businesses to achieve high growth, and at the same time increased its overseas presence to seek new growth. However, it still faces multiple tests such as industry differentiation and overseas litigation. Whether its transformation path can hedge against performance pressure has attracted market attention.
Development investment in the real estate industry is the core driving force for demand for building materials.
Today, the real estate industry is still in a period of deep adjustment, and the living space and nutrient supply of the building materials industry have become very limited.
From 2023 to 2024, although the overall revenue and profits of the building materials industry continue to decline, BNBM’s business still maintained growth despite the trend.
However, entering 2025, BNBM has failed to maintain its performance gains.
Judging from the single-quarter data, Beijing New Construction Building Materials’ performance trend has also shown a decline quarter by quarter.
BNBM’s overall profitability is also weakening.
In the first three quarters of this year, BNBM’s gross profit margin was 29.53%, a decrease of 1.12 percentage points year-on-year, and its net profit margin was 13.34%, a decrease of 2.37 percentage points from the same period last year.
The decline in BNBM’s performance was largely affected by the decline in investment in real estate development.
It is worth noting that with the decline in operations, Beijing New Construction Building Materials’ stock price performance this year is not very satisfactory.
Since 2025, BNBM’s stock price has shown an overall volatile downward trend.
Overall, the gypsum board business is still the core business of BNBM, accounting for the largest proportion of total revenue.
In the first three quarters of this year, BNBM’s gypsum business was under overall pressure and faced challenges such as declining sales and prices.
In recent years, the building materials industry is trying to get out of the haze of real estate and transformation has become the norm. BNBM is also making diversified attempts and developing “two wings” of business.
In the first three quarters of this year, BNBM’s “two wings” business showed high growth.
However, in the first three quarters of 2025, the operations of related companies in the coatings industry and waterproofing industry have shown a state of differentiation.
Going overseas is also an important choice for BNBM to seek new growth.
In fact, BNBM has already made plans for going overseas.
In recent years, BNBM has been increasing its business in Southeast Asia, Africa, Central Asia and other regions.
In the first half of this year, overseas business still accounted for a small proportion of BNBM’s main business, but it showed strong growth momentum.
However, it is worth noting that BNBM’s overseas expansion has not been easy and it is facing severe market tests.
Since 2009, many house owners in the United States have filed multiple lawsuits against many companies, including Beixin Building Materials, demanding compensation for losses on the grounds of quality problems with gypsum boards.
This caused certain economic losses and reputational damage to BNBM.
However, Taishan Gypsum has reached settlements with most of the plaintiffs in the multi-district consolidated lawsuit.
However, there is still one case that is still ongoing. Beijing New Building Materials said that it is currently unable to accurately estimate the economic losses that the case may cause and its impact on the company’s profits.
Some analysts believe that BNBM should strengthen product quality control and standard compliance to ensure compliance with international norms and reduce disputes from the source.
