Against the backdrop of overall pressure on the construction materials industry in H1 2025, Beijing New Building Materials Public Limited Company delivered its semi-annual report: revenue of 13.558 billion yuan in H1 2025, down 0.29% year-over-year; operating profit of 2.188 billion yuan, down 11.50% YoY; total profit of 2.183 billion yuan, down 10.64% YoY; net profit attributable to shareholders of 1.930 billion yuan, down 12.85% YoY; adjusted net profit attributable to shareholders of 1.892 billion yuan, down 12.35% YoY. Basic earnings per share reached 1.142 yuan, down 12.82% YoY.
Notably, the paint business achieved revenue of 2.511 billion yuan, surging 40.82% YoY, accounting for 18.52% of total company revenue, forming a "dual-engine drive" pattern alongside the waterproofing business at 18.40%. This data not only marks the substantial rise of the paint segment in Beijing New Building Materials' "one core, two wings" strategy, but also reveals structural breakthroughs achieved through brand matrix restructuring, technological innovation, and market cultivation.
**From 13.11% to 18.52%: Strategic Leap of the Paint Segment**
Behind these results lies a tale of "ice and fire" across business segments. Revenue from lightweight building materials (gypsum board and keels), the traditional main business, declined 8.67% YoY, with gypsum board revenue of 6.677 billion yuan, down 8.57% YoY. This contrasts sharply with the strong growth of paint materials.
Of the 2.511 billion yuan paint revenue, Carpoly contributed over 1.8 billion yuan, while Longpai Paint, Tianjin Lighthouse, and Zhejiang Daqiao (newly consolidated in February 2025) jointly built a diversified product matrix. The paint segment achieved a gross margin of 31.8%, up 0.5 percentage points YoY, significantly higher than the waterproofing materials' gross margin of 18.64%. Net cash flow from operating activities declined 52.86% YoY, mainly affected by Carpoly's consolidation factors. Its credit policy in January-February led to temporarily negative cash flow, which is expected to improve as business integration deepens.
Notably, in H1 2024, Beijing New Building Materials' paint business accounted for only 13.11%, while the H1 2025 report shows this proportion has approached the waterproofing business's 18.40%. This rapid catch-up reflects Beijing New Building Materials' "overtaking on curves" through capital integration and market operations.
Taking Carpoly as an example, its H1 2025 revenue reached 1.825 billion yuan, up 38.66% YoY, accounting for 72.7% of Beijing New Building Materials' total paint business revenue, becoming the absolute core. Carpoly's expansion path is highly representative: through "artistic paint + stone paint" dual-engine drive, it added over 290 high-end stores in H1, covering core markets in East and South China. This "policy dividend + channel sinking" combination strategy increased its market penetration rate in third and fourth-tier cities by 12 percentage points.
Meanwhile, Beijing New Building Materials quickly entered the industrial paint field through acquiring Zhejiang Daqiao Paint (consolidated in February 2025). As a leading industrial paint company in East China, Zhejiang Daqiao possesses 100,000 tons of capacity and provincial "specialized, refined, distinctive, and innovative" qualifications. Its integration increased Beijing New Building Materials' industrial paint capacity by 30% and formed a "Tianjin Lighthouse (North) + Zhejiang Daqiao (East China)" dual-pivot layout in the Yangtze River Delta.
**Brand Matrix Evolution: From Single Product Breakthrough to Ecosystem Construction**
Beijing New Building Materials' paint business has formed a three-dimensional brand matrix of "consumer + industrial + specialty fields," with each brand's differentiated strategies in segmented markets weaving into a competitive network covering all scenarios.
As the "ballast stone" of the paint segment, Carpoly reshapes consumer market perception through "premiumization + scenario-based" approaches: its "Mijing Series" wall paint achieves over 50,000 scrub resistance cycles through nano anti-stain technology, with market share climbing to 18% in the high-end residential market; artistic paint and stone paint categories operate through dual tracks of "experience stores + designer channels." This "product premium + channel density" dual advantage allows Carpoly to maintain a 25% gross margin despite industry-wide price wars.
Complementing Carpoly's consumer breakthrough is Longpai Paint's national trend innovation in architectural coatings. Leveraging synergies with Beijing New Building Materials' gypsum board industry, Longpai launched "National Trend Boards" integrating Mount Tai culture and auspicious symbols, transforming traditional patterns into modern decorative language, achieving monthly sales exceeding 1 million square meters; its heating boards achieve 1-2 minute rapid heating through short-wave radiation technology, saving 30% energy compared to traditional floor heating, becoming preferred products for aging-friendly renovations and affordable housing projects.
More noteworthy is Longpai's self-developed 123mm sound insulation wall system, which achieves 51-decibel sound insulation even in complex scenarios with six electrical boxes embedded, and has been included in the "Green Building Evaluation Standard" recommendation list, upgrading from "product sales" to "system solutions."
Tianjin Lighthouse carries the banner of industrial and specialty paints, converting century-old military technology into market competitiveness. High-temperature coatings developed for aerospace can withstand 700°C temperatures and are now applied to wind turbine blade protection, extending blade life by 20%; epoxy low surface treatment primer can be applied without rust removal, reducing cement plant equipment maintenance costs by 40%, with over 25% market share in North China's industrial anti-corrosion market. In H1 2025, Lighthouse Paint was selected as one of Tianjin's first batch of "Cheetah Enterprises," with its Nangang green intelligent manufacturing base producing 50,000 tons of paint annually. Products have passed EU CE certification and are exported to 12 countries including Southeast Asia and the Middle East, becoming an important pillar of Beijing New Building Materials' internationalization strategy.
The integration of Zhejiang Daqiao completes the crucial piece of regional industrial markets in this matrix. Beijing New Building Materials completed the acquisition of 51.42% equity in Zhejiang Daqiao Paint Co., Ltd. on February 28, 2025, and has consolidated it. According to financial reports, from the purchase date to period end, the acquired entity's sales revenue was 135.9 million yuan, net profit was 13.1349 million yuan, and cash flow was -95.9629 million yuan.
As an established industrial paint enterprise in East China, Daqiao Paint has accumulated mature technology in ship anti-corrosion and steel structure protection. Its "Red Lion" brand ship paint holds a 15% market share in the Yangtze River basin, forming "paint + waterproofing" synergistic service capabilities with Beijing New Building Materials' waterproofing water conservancy engineering business.
**Technology R&D and Manufacturing Upgrades: Underlying Logic Supporting Growth**
The explosive growth of Beijing New Building Materials' paint business is not simply scale expansion, but innovation reconstruction rooted in the entire "technology-manufacturing-application" chain. In R&D, the company's R&D investment increased 29.36% YoY in H1, laying out 7 major scientific research projects around high-performance paints and low-carbon intelligent factories. Among these, phase-change gypsum boards developed in cooperation with the Chinese Academy of Sciences can automatically regulate indoor temperature through material phase changes, and have been implemented in green building pilot projects in Xiong'an New Area; deep-well explosion-proof paints developed for oil and gas extraction have passed ATEX certification, filling the technical gap in domestic ultra-deep well anti-corrosion materials, and are currently applied in multiple key projects of PetroChina and Sinopec. This "application-oriented" R&D strategy maintains a technology achievement transformation rate above 85%.
The improvement of green manufacturing systems lays the foundation for sustainable growth. As of June 2025, 12 enterprises in Beijing New Building Materials' paint segment have been rated as national-level green factories. Through clean energy substitution and production process optimization, unit energy consumption of main products decreased 8% YoY. Carpoly's Jiangmen base photovoltaic power generation system generates 15 million kWh annually, reducing CO2 emissions by 12,000 tons; Tianjin Lighthouse's Nangang base adopts "zero discharge" wastewater treatment technology with 98% VOCs treatment efficiency. The low-VOCs industrial paint produced has obtained German Blue Angel certification, opening channels to European high-end markets.
When industry total output declined 1.6% YoY, Beijing New Building Materials' paint revenue grew 40.82% - this seemingly contradictory phenomenon reflects the inevitable acceleration of industry concentration. Leading enterprises continue to squeeze the survival space of small and medium brands through capital, technology, and channel advantages. In H1 2025, the paint industry's CR10 (top 10 enterprise concentration) increased 5 percentage points compared to the same period last year, with the Matthew effect becoming increasingly significant.
Deeper changes lie in the upgrade of competitive dimensions. From Carpoly's artistic paints to Lighthouse's wind power protective coatings, Beijing New Building Materials' growth logic has shifted from "price competition" to "value competition," with technological barriers becoming the core variable determining market position. Data shows its paint business R&D investment ratio reaches 5.8%, far above the industry average of 2.3%. This "technology cultivation" strategy enables its sustained premium capability in high-end markets, with product average prices 18% higher than industry average while maintaining competitiveness.
Notably, Beijing New Building Materials' internationalization strategy is extending to the paint business. The semi-annual report shows overseas sales revenue reached 324 million yuan, up 68.78% YoY, becoming the fastest-growing market segment. Current international layout focuses on four major regions: Southeast Asia, Central Asia, Africa, and Europe and the Mediterranean.
Currently, Beijing New Building Materials' Tanzania and Uzbekistan production bases continue to achieve double-digit growth in revenue and profit; Thailand's annual 40 million square meter gypsum board production line has entered trial production; the Bosnia and Herzegovina project is also progressing orderly.
This 18% share essentially represents a "strategic execution report card." Beijing New Building Materials used Carpoly to stabilize the consumer base, Longpai to bind architectural scenarios, and Lighthouse and Daqiao to tackle industrial challenges, assembling the paint business into an "all-scenario team" like building blocks.
Behind this lies dedication to the "one core, two wings" strategy: while others were busy cutting costs, it invested in R&D to develop phase-change paints; while others were trapped in domestic markets, it opened factories in Tanzania and Uzbekistan; while others struggled with "paint is just paint," it early bundled paint with gypsum boards and waterproofing into "construction solutions."
For the industry, this data set serves as a mirror. As the paint industry shifts from "incremental competition" to "stock game," real competitiveness long ago moved from "who has larger capacity" to "who is closer to customers," "who has harder technology," and "who has a complete ecosystem."
In the second half of the building materials industry, companies that can turn "strategic blueprints" into "market effectiveness" are the ones who can smile while making the pie bigger. After all, the industry never lacks observers - what it lacks are action-takers who dare to turn "impossible" into "semi-annual report data."
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