In 2025, after the building materials industry entered a period of deep adjustment, through a series of “anti-involution” measures, the performance of some building materials companies has significantly improved.
Represented by the cement industry, some companies expect annual net profits to increase by more than 10% year-on-year in 2025.
Institutions believe that this year, as the “anti-involution” further advances, the supply and demand relationship for building materials is expected to be gradually restored.
At the same time, leading building materials companies are seizing opportunities such as “good houses” and urban renewal, carrying out brand reforms during the industry adjustment period, improving product quality, and using brand power and product power as the core ballast of the company.
Some building materials companies have experienced growth in performance.
Huaxin Building Materials Group Co., Ltd. issued an announcement stating that it expects to achieve a net profit attributable to the owners of the parent company of 2.70 billion to 2.95 billion yuan in 2025, an increase of 280 million yuan to 530 million yuan compared with the same period last year, and a year-on-year increase of 11.6% to 21.9%.
“During the reporting period, the company’s overseas business scale continued to grow and its performance contribution was significant. The market competition environment faced by the domestic business is still severe, but thanks to the decline in fuel costs and the company’s unswerving deepening of various cost reduction and efficiency improvement measures, the unit profits of the main products have recovered.” Huaxin Building Materials analyzed the reasons for the increase in performance.
Data released by Guangdong Tapai Group Co., Ltd. show that operating income in 2025 will be 4.107 billion yuan, a year-on-year decrease of 3.99%; the net profit attributable to shareholders of listed companies will be 634 million yuan, a year-on-year increase of 17.87%.
Tapai Group stated that in 2025, domestic cement prices will show a trend of “high at first and then low, with shock and downward” throughout the year. In the first quarter, driven by policy guidance and industry self-discipline, the “anti-involution” process achieved phased results, and the company’s cost reduction, efficiency increase and diversified operations were combined, and the overall net profit was restored.
However, after the second quarter, the industry situation took a turn for the worse, with both volume and price falling. In particular, the profit recovery effect in the fourth quarter was not significant, which resulted in the industry’s profit advantage accumulated in the first half of the year being weakened.
A research report released by Galaxy Securities shows that in 2025, various sub-sectors of building materials will actively respond to the call for “anti-involution” and have already made phased progress.
Looking forward to 2026, with the further advancement of “anti-involution” policies and green policies, more building materials sub-sectors will usher in substantial overcapacity reduction, the supply and demand relationship will gradually be restored, and the industry’s competition order will transform into a benign one.
The industry landscape has changed.
“Anti-involution” will still be one of the main themes of the building materials industry in the future.
This year’s government work report pointed out that we will strengthen anti-monopoly and anti-unfair competition, strengthen the rigid constraints of fair competition review, comprehensively use production capacity regulation, standard guidance, price guidance, quality supervision and other means to deeply rectify “involution” competition.
At the same time as “anti-involution”, currently, the building materials and home furnishing industry has entered a period of deep adjustment, and the market operating logic is undergoing fundamental changes.
From the demand side, customers are no longer satisfied with purchasing a single material, but expect complete delivery, reliable services and systematic solutions.
From single category to multiple categories, from products to services, this has become a definite trend in the development of the industry.
On March 20, the relevant person in charge of BNBM said that the structure of the building materials industry is undergoing profound changes, new demand opportunities are constantly emerging, and the construction of good houses, urban renewal, and beautiful countryside are continuing to create new market space.
At present, the building materials industry is shifting from incremental expansion to stock game, and the market structure, consumption logic, and competition logic are all undergoing profound changes.
How can brands break through in the market competition?
Some insiders believe that the arrival of the era of stock housing marks a fundamental change in the ecology of the home improvement market.
Leading brands continue to iterate products and services around the pain points of decoration companies. Only by deeply cultivating technology and building quality can they empower their brands with products and win long-term market recognition.
Brand upgrade is the last word.
On March 20, Beixin Building Materials Dragon Brand, a subsidiary of China National Building Materials Co., Ltd., carried out a brand refresh.
The relevant person in charge said that as a brand with nearly 50 years of accumulation, Longpai is both imperative and confident to implement brand renewal, transformation and upgrading in response to the new situation.
What is released this time is not only a new product, but also a set of system solutions for the new era launched by Longpai based on its technology accumulation and combined with in-depth thinking on future industrial development.
“Beijing Building Materials uses ‘four transformations’ to build green building materials solutions that cover all scenarios, all cycles, and all people. The Dragon brand refresh is not only a refresh of the visual image, but also uses the leading effect to drive the industry away from low-level involution and promote the establishment of a good industry development ecosystem.” The relevant person in charge said at the brand refresh ceremony.
Specifically, this time Dragon Brand has launched a new generation of home improvement retail products such as Chinese Red, Dragon, National Treasure, National Chao, and Wufu series.
Taking Dragon Brand Cloud Sense Warming Board as an example, the product targets newlyweds, parenting families, and elderly people as its original users. Focusing on the core functions of cleansing, warmth, and non-sensory protection, it creates a minimalist, luxurious, and comfortable technology product style, allowing Dragon Brand Cloud Sense Warming Board to blend into the space.
In addition, at the technical level, Longpai has released a new generation of Longpai high-sound insulation and fire-resistant partition ceiling system solutions, focusing on the pain points of residential noise. The sound insulation reaches 53 decibels, which is better than traditional walls, while saving indoor space and reducing the weight of the building.
