When talking about Oriental Yuhong, the first thing that everyone may think of is building waterproofing, which is indeed the company’s core business.
But now, it is no longer limited to selling only waterproof products. Instead, relying on its main waterproofing business, it has expanded into mortar powder, home decoration and building materials, insulation repair and other businesses, and has become a service provider that can provide a complete set of construction services, with a very broad business territory.
As the basic business of Oriental Yuhong, waterproofing has strong strength.
In 2025, its waterproofing membrane circulation reached more than 800 million square meters, enough to circle the earth’s equator more than 40 times, firmly ranking first in the world.
Whether it is major national projects such as the Bird’s Nest or large airports, or ordinary real estate and infrastructure projects, Oriental Yuhong’s products can be seen, achieving full coverage of the high, middle and low-end markets, and its product quality is highly recognized around the world.
Mortar powder has become the company’s second growth engine.
In 2025, its production and sales will directly exceed 12 million tons, an increase of half compared with last year, and its revenue proportion will also reach 14.7%, becoming the second largest business after waterproofing.
Taking advantage of the channel synergy with waterproof products, the two are sold in bundles, seizing a large share in the old house repair and home decoration market, with stable profits, and gross profit margins have remained above 25%.
The civil building materials business for ordinary consumers has also developed vigorously.
Waterproofing, seams, paint and other home improvement necessities are all available, and Yuhong home service has also been launched to provide one-stop construction solutions.
There are nearly 5,000 offline dealers and more than 220,000 stores, covering more than 300 cities across the country.
In the first half of 2025, the revenue from engineering plus channels accounted for as high as 84%, becoming an important support for the company to withstand market fluctuations.
Emerging businesses are showing a trend of blooming in many places.
The building repair business will achieve a profit of 2.65 billion in 2024, with a growth rate of 32.4%, riding on the east wind of old community renovation and urban renewal and reaping a lot; high-performance industrial coatings are expected to be put into production in 2026, focusing on high-end equipment and marine engineering fields, with gross profit margins expected to exceed 35%; the photovoltaic waterproofing business follows the trend of the dual-carbon policy and has won more than 30% of domestic photovoltaic roof waterproofing orders.
Overseas business is the third growth curve of Oriental Yuhong.
The company has established production bases in Malaysia, the United States and other countries, and acquired companies in Chile. Its products are exported to more than 100 countries.
In the first half of 2025, overseas revenue grew by more than 42%. In the next three years, the company plans to increase the proportion of overseas revenue to more than 15% to hedge against cyclical fluctuations in the domestic market.
From the perspective of the overall environment of the waterproof industry, the market size will reach 210 billion in 2025. However, in the past, the market was relatively fragmented, with tens of thousands of small and medium-sized enterprises competing fiercely, and low-priced and substandard products disrupted the market order.
However, in recent years, with the introduction of new industry regulations and increasingly stringent environmental protection requirements, small and medium-sized manufacturers have gradually been eliminated, and the industry has begun to concentrate on leading companies.
As the industry leader, Oriental Yuhong will have a market share of 22% in 2024, far exceeding the 10% of the second-place Keshun Co., Ltd. and the 3% of the third-place Beixin Building Materials.
The market share of the top five in the industry has increased from 21.7% in 2019 to 48% in 2025. The leading effect has become increasingly significant. It is expected that Oriental Yuhong’s market share will further increase to more than 23% in 2026.
Oriental Yuhong is able to secure its position as the industry leader, thanks to its advantages in many aspects.
In terms of technology, it has a national key laboratory with more than 1,900 patents. It has also taken the lead in formulating 42 national industry standards, and its products have obtained authoritative European and American certifications. In terms of production capacity, it has established 68 production bases around the world, all close to core city clusters, and can be supplied within 500 kilometers. The logistics cost is 10% lower than that of its peers –
15%, with efficient delivery and low cost; in terms of channels, it takes into account both engineering and retail, with more than 220,000 outlets, deep in villages and towns, and extremely high customer stickiness; in terms of brand, it is the only company in the waterproofing industry selected into the top 500 Chinese brand values. It is favored by the top 500 real estate companies, and its price premium ability is far superior to its peers.
Previously, the price war in the industry was fierce, and many small and medium-sized enterprises suffered serious losses.
In June and July of 2025, leading companies finally raised prices collectively, with product prices rising by 12% from the lowest point, and the era of low-price competition came to an end.
Relying on its scale, cost and brand advantages, Oriental Yuhong took the initiative in the price increase process, and its profits gradually recovered. Industry competition has also shifted from price competition to value competition, and the profit margins of leading companies have continued to expand.
In short, Oriental Yuhong has transformed the seemingly inconspicuous small business of waterproofing into a large ecosystem with four moats of technology, production capacity, channels, and brand, far ahead of its peers.
As for the actual results of its transformation and growth, let us wait and see the financial data in the third quarter of 2025.
