Reconstruction of Waterproof Industry Landscape: Beixin Fully Acquires Subsidiary, Three Giants Alliance Substantially Dissolves, Dongfang Yuhong Remains Industry Leader

Image of waterproof membrane (Image source: Doubao AI)

In December 2025, a landmark event occurred in the waterproofing industry—Beixin New Materials (Jinzhou) Co., Ltd. completed a significant adjustment in its equity structure. According to the industrial and commercial change records, on December 24, 2025, Keshun Waterproof Technology Co., Ltd. and Jiangsu Kairun Building Materials Co., Ltd. formally exited the shareholder ranks, and Beixin Waterproof Co., Ltd. increased its shareholding ratio from 70% to 100%, achieving full ownership. On the same day, the company's registered capital was reduced from 300 million RMB to 90 million RMB, the legal representative was changed from Ding Shanghua to Bai Hongcheng, and several senior executives were simultaneously adjusted.

Source: Beixin New Materials

This change marks the substantive termination of the "Beixin-Keshun-Kailun" tripartite strategic cooperation project initiated in 2021. Looking back, the joint venture was established on August 5, 2021, with an initial equity structure of Beixin Waterproof 70%, Keshun Co., Ltd. 10%, Kailun Co., Ltd. 10%, and Tianlong New Materials 10%, aimed at laying out the production of polyester substrate fabric for upstream waterproof raw materials. On November 8, 2023, the first phase of the Jinzhou project for producing 53,000 tons of polyester spunbond substrate fabric annually commenced construction, with a planned annual capacity of 28,000 tons. However, after four years, the three parties ultimately parted ways.

Image source: Beijing New Building Materials

It is worth noting that this is not the first adjustment of the tripartite cooperation. On September 3, 2025, the Beijing Tech Kai Supply Chain Management Co., Ltd. (established in December 2021), jointly set up by the three parties, has completed its deregistration. Thus, both major cooperative platforms, from supply chain procurement to raw material production, have substantially dissolved.

The deeper logic behind the event: whyHuddlingDifficult to sustain?

1. Industry Environment Under Dramatic Change: Dual Pressure of Real Estate Downturn and Demand Contraction

In 2025, the waterproofing industry faced unprecedented challenges. Data from the National Bureau of Statistics shows that the national sales area of commercial housing fell to 1.21 billion square meters in 2024, a year-on-year decrease of 10.9%, marking a continuous decline for three consecutive years. As the main downstream application field for waterproof materials, the sluggish real estate market directly impacted the order volumes for enterprises. In 2025, the main business income of large-scale waterproof companies experienced negative growth for the first time in nearly a decade, with a particularly noticeable shrinkage in demand from the engineering channel. Some small and medium-sized enterprises even fell into a state of production suspension.

In this context, maintaining the synergy of cross-enterprise supply chain platforms becomes difficult to achieve and instead becomes a cost burden. Beixin New Materials (Jinzhou) Co., Ltd. chose to reduce capital and change its equity structure by the end of 2025, essentially to cut losses on prior investments and make a strategic adjustment.

2. Three companies' strategic paths diverge: fromCollaboration Each fighting their own battle
The transition of three companies from collaborating to parting ways was not a coincidence. Behind this are the intertwined effects of sudden changes in the macro environment, the divergence of corporate strategies, and internal governance conflicts. Specifically, it can be summarized into the following three core reasons.

Beixin Waterproof: Counter-Cyclical Expansion under the Background of State-Owned Enterprises

As a wholly-owned subsidiary of BNBM (000786.SZ), BNBM Waterproofing continues to expand by leveraging resources from central enterprises. In the first three quarters of 2025, BNBM Waterproofing achieved an operating income of 3.766 billion yuan, a year-on-year increase of 5.24%, and a net profit of 216 million yuan, a year-on-year increase of 15.80%, achieving growth against the trend in the context of overall industry pressure.2025November26th of the month North New Waterproof completed the acquisition of 80% equity in Yuanda Hongyu (Tangshan) and Yuanda Hongyu (Suzhou) for approximately 419 million yuan, further strengthening its national production capacity layout. The Jinzhou base, serving as the supply chain hub for the Northeast region, aligns closely with North New Waterproof's "industry chain integration" strategy. Full ownership is beneficial for enhancing supply chain stability and cost competitiveness.

Keshun Co., Ltd.: Strategic Retrenchment Under Profit Pressure

In the first three quarters of 2025, Keshun Co., Ltd. (300737.SZ) faced significant pressure on its performance: operating revenue was 4.703 billion yuan, a year-on-year decrease of 8.43%; net profit attributable to shareholders was only 20.0877 million yuan, a substantial year-on-year decline of 84.08%. The net cash flow from operating activities was -824 million yuan, indicating pressure on the capital chain. Against this backdrop, Keshun's decision to exit the Jinzhou project, in which it held only a 10% stake and had limited investment, aligns with its business strategy of "narrowing focus and concentrating on core operations."

In 2025, Keshun significantly increased its investment in the civilian building materials market, established Keshun Building Materials Group, launched the comprehensive brand "Keshun Building Materials," and shifted its strategic focus to the C-end retail market to reduce dependence on the real estate engineering sector.

Karen Co., Ltd.: Focus Shift Amid Cross-Industry Transformation

Karen Stock (300715.SZ) has chosen a different path.2025 Month 21 The company completed the acquisition of a 51% stake in Suzhou Jiazhi Cai Light Technology Co., Ltd., officially entering the display panel inspection and compensation repair business, thus initiating a dual-main business model of "waterproofing + display panels." In the first three quarters of 2025, Kairun's net profit attributable to the parent company reached 26.41 million yuan, a significant year-on-year increase of 182.15%, mainly driven by the new business. With sluggish growth in the waterproofing main business and weak synergy in the Jinzhou project, exiting becomes a rational choice.

3. The mismatch between governance mechanisms and strategic objectives.

The deeper issue lies in the inconsistency between the tripartite governance mechanism and strategic goals. As a state-owned enterprise, Beixin Waterproof emphasizes long-term stability and compliance control in decision-making. On the other hand, Keshun and Kailun, as private enterprises, have stronger demands for operational flexibility and market responsiveness. When the external environment deteriorates and the cooperative benefits fail to materialize, the three companies begin to reassess their development paths and accelerate the shift towards differentiated competition strategies.

Three, 2025The evolution of the waterproofing industry landscape: from "The three-legged cauldron (tripod). "One strong entity dominates many strong competitors."

In 2025, the waterproofing industry presents a pattern of "weak demand and concentration among leading players." According to industry data, the market share of the top ten brands has exceeded 60%, an increase of about 18 percentage points compared to five years ago. However, the differentiation among leading companies has intensified.

Dongfang Yuhong (002271.SZ)): Leading Position Remains Firm

Source: Oriental Yuhong

In the first three quarters of 2025, Oriental Yuhong achieved an operating income of 20.601 billion yuan and a net profit attributable to the parent company of 810 million yuan, maintaining relative resilience despite the overall pressure in the industry.2025DecemberMonth 24 The company announced that its annual shipment of waterproof membranes has exceeded 800 million square meters, further increasing its market share. Through measures such as optimizing channel structure (with the retail channel ratio expected to rise to 37% by June 30, 2025) and expanding overseas operations (establishing a production, research, and logistics base in Mexico, and acquiring a 60% stake in Brazil's Novakem), the company continues to solidify its position as the industry leader.
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Beixin Waterproof: The Second Pole of Growth Against the Trend

As previously mentioned, Beixin Waterproof will achieve both revenue and profit growth by 2025. Through mergers and acquisitions (full acquisition of Yuanda Hongyu and Jinzhou base), it will strengthen its nationwide presence, narrowing the gap with Oriental Yuhong.

Keshun Co., Ltd. and Kairun Co., Ltd.: Facing the Pain of Transformation

Keshun Co., Ltd. is significantly impacted by the downturn in the real estate market, with noticeable pressure on its performance expected by 2025. Although Karen Co., Ltd. has achieved profit growth through cross-industry acquisitions, its main waterproofing business lacks growth momentum. Both companies face challenges in maintaining their positions in the industry's second tier.

In 2025, the clearance process in the waterproofing industry accelerated. According to incomplete statistics, the number of large-scale waterproofing enterprises decreased by about 15% compared to 2021. Some regional small and medium-sized enterprises exited the market due to shrinking orders and broken capital chains. Industry competition gradually shifted from "price wars" to "value competition," with leading enterprises that have technological advantages, channel advantages, and financial strength continuously increasing their market share.

Four, 2026Industry Trend Outlook: Differentiation, Integration, and Innovation

As we enter 2026, the waterproofing industry shows signs of marginal improvement. On one hand, there is a marginal easing of real estate policies, with measures such as "urban village renovation" and "affordable housing construction" being introduced, bringing structural demand to the industry. On the other hand, after a deep adjustment, the supply-demand relationship is gradually moving towards equilibrium. However, overall recovery will still take time, and the pattern of differentiation among enterprises will continue.

Looking ahead to the future of the waterproofing industry, Zhuansu Vision believes that three major trends will reshape the industry landscape.

Trend 1: Acceleration of Vertical Integration in the Industrial Chain

Beixin Waterproof fully controls the Jinzhou base and acquires Yuanda Hongyu, while Oriental Yuhong is laying out upstream raw materials. Leading enterprises are strengthening their supply chain control through vertical integration to reduce the risk of raw material price fluctuations. This trend is expected to continue in 2026, and companies with integrated industrial chain capabilities will gain cost advantages.

Trend Two: Diversification of Business Layout Deepens

Keshun Co., Ltd. is focusing on retail in the civilian building materials sector, Kailun Co., Ltd. is entering the display panel industry, and Dongfang Yuhong is expanding into overseas markets. Leading companies are all seeking a second growth curve. By 2026, non-real estate sectors (infrastructure, industrial, municipal engineering), building renovation, and overseas markets will become important growth points.

Trend 3: Technological Innovation and Green Transformation

With the implementation of GB 55030-2022 "General Specification for Waterproofing of Building and Municipal Engineering," the performance requirements for waterproof materials have been enhanced, making high-performance, durable, and environmentally-friendly products mainstream. Emerging application scenarios such as photovoltaic roofing waterproofing and underground utility tunnel waterproofing demand higher material technology standards, and companies with technical research and development capabilities will gain a competitive advantage.

Edited by: Lily
Source of materials: Tianyancha, Tonghuashun, NetEase Finance, Securities Star, Eastmoney, China Securities Journal, Kailun Co., Ltd. official announcements, and related reports from China Securities Network.