China’s hardware products are no longer a simple concept of “small hardware”, but a huge industrial cluster covering basic manufacturing to high-end intelligent manufacturing.
In order to present the whole picture of this industry more clearly, the following will conduct an in-depth scan from three dimensions: product classification panorama, market segment dynamics and representative companies.
First, let’s take a look at the product panorama of China’s hardware industry.
A picture can give you a bird’s-eye view of the main families and their representatives of China’s hardware products.
You will find that everything from door lock hinges at home, to precision molds in factories, to core components of new energy vehicles, all fall into the category of “hardware”.
Then go into each segment.
In the field of construction and home hardware, this is the largest sector in China’s hardware industry and the most closely related to daily life.
According to QYResearch, the global furniture hardware market alone will be approximately US$23.52 billion in 2025.
This field is highly related to the real estate cycle and is experiencing “pain and transformation”.
On the one hand, the slowdown in the growth rate of the new housing market has put pressure on traditional businesses; on the other hand, the new home decoration model of “whole-house customization, move-in-package” and the secondary decoration of existing houses have created a large number of new demands for high-quality, functional hardware (such as silent slide rails and damping hinges).
Products are evolving from “components” to “system solutions”, with intelligence being the highlight. Smart hardware products with fingerprint recognition and remote control sensing functions are constantly emerging.
The industrial and tool hardware field is the embodiment of China’s strength as the “world’s factory” and is also the area where the pain points of “big but not strong” are most concentrated.
The market fundamentals are huge and growing steadily. iiMedia Research predicts that China’s hardware tools market will reach 143.32 billion yuan in 2026.
However, a large number of companies are still trapped in the low-value-added OEM process, and the profit of a pair of pliers may only be a few cents.
High-end and intelligence are the keys to breakthrough. The demand for high-precision and intelligent professional tools has surged in the upgrading of manufacturing industry. The rise of home DIY culture has also opened up a new consumer market.
The field of electronics and precision hardware is the “hidden champion” field with the most technology-intensive and highest growth potential in the hardware industry.
Products are usually “small and sophisticated” but valuable, and are widely used in popular tracks such as new energy vehicles, 5G communications, and consumer electronics.
As downstream products develop towards high performance and miniaturization, the requirements for precision, materials and stability of precision hardware components are also increasing. For example, precision connectors used in new energy vehicles need to have both high conductivity and high strength.
Based on the above market structure, let’s examine several representative companies.
Kin Long Hardware (002791), as an integrated supplier in the field of construction hardware, is facing severe challenges.
The third quarterly report of 2025 shows that the company’s operating income was 4.297 billion yuan, but the net profit was only 7.956 million yuan. The profitability has declined sharply, reflecting the impact of the in-depth adjustment of the real estate industry on its main business.
However, the agency report pointed out that Kin Long Hardware is actively deploying overseas markets, optimizing sales models, improving human efficiency, and trying to get through the cycle through the two-wheel drive of “going overseas” and “improving management efficiency”.
Xinghui Shares (300464) demonstrates a stable model of “walking on two legs”. Its business is divided into two major sectors: precision hardware and cross-border e-commerce.
In the first half of 2025, the precision hardware business contributed 74.08% of revenue (approximately 538 million yuan) and is a stable source of profit.
In the field of hardware, slide rails are its flagship product, generating revenue of 416 million yuan in the first half of 2025, accounting for 57.26% of the company’s total revenue.
Its products are highly competitive in the international market, with foreign sales accounting for as high as 67.99% in 2024, and the gross profit margin of overseas business (23.42%) is much higher than that of domestic (12.89%).
Zhongjinke Hardware (ZJK.O) is a niche enterprise focusing on precision metal parts. Although it is not as well-known as the first two, its business quality is excellent.
The latest financial report shows that its fundamentals are stable, with operating income of US$24.7 million, net profit of US$5.85 million, and gross profit margin as high as about 50%, which is very rare in the hardware industry.
Its products are mainly used in high-growth fields such as new energy vehicles and 5G communications, explaining the high value-added characteristics of the “electronics and precision hardware” track.
China’s hardware industry is an extremely rich ecosystem.
There are hidden champions like Xinghui Co., Ltd. who have made a simple “slide rail” perfect and sold well all over the world; there are technology pioneers like Zhongjinke Hardware, which rely on precision manufacturing capabilities to obtain high profits in the high-end industrial chain; and there are also pathfinders like Jianlang Hardware, which are industry giants struggling to transform in the wave of the times.
