Oriental Yuhong Bundle
What is the history of Oriental Yuhong?
Founded in 1995, this company started as Changsha Changhong Building Waterproof Engineering Co., Ltd. It has grown into a major player in China's waterproofing industry.
A key milestone was its 2008 listing on the Shenzhen Stock Exchange, fueling R&D and expansion. This move transformed it from a local entity into a national leader.
The company offers a broad range of waterproofing products, including membranes and coatings, serving construction and infrastructure. In 2023, it was recognized among Fortune China Top 500 Listed Companies and a Top 100 Global Building Materials company. As of July 22, 2025, its market capitalization was around $4.21 billion USD. The global waterproofing market, valued at $70.31 billion USD in 2024, is expected to reach $121.71 billion USD by 2032, with a 7.1% CAGR. Explore the Oriental Yuhong Porter's Five Forces Analysis to understand its competitive landscape.
What is the Oriental Yuhong Founding Story?
The Oriental Yuhong company history began in 1995 with the establishment of Changsha Changhong Building Waterproof Engineering Co., Ltd. This marked the initial step in what would become a significant player in the construction materials industry.
The Genesis of Oriental Yuhong
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. was founded in 1995 by Li Weiguo, who envisioned providing superior waterproofing solutions for China's burgeoning infrastructure. The company's predecessor, Changsha Changhong Building Waterproof Engineering Co., Ltd., laid the groundwork for this ambitious venture.
- Founded in 1995 by Li Weiguo.
- Initial focus on waterproof construction projects.
- Early success in critical national projects.
- Vision to offer comprehensive waterproofing systems.
Li Weiguo, born in 1965 and holding a bachelor's degree from Hunan Agricultural University, brought valuable experience to the founding of the company. Before embarking on this entrepreneurial path, he served as an educator at Changsha Vocational Secondary School and Hunan Institute of Economics and Management, and also worked at the Hunan Provincial Bureau of Statistics from 1993 to 1995. This diverse background likely contributed to his strategic approach in establishing and growing the business. The company's early development was significantly bolstered by its successful undertaking of waterproof maintenance for the Mausoleum of Mao Zedong, a project that garnered national recognition and cemented its reputation for quality and reliability. This achievement was a key milestone in the Brief History of Oriental Yuhong, paving the way for its subsequent expansion and evolution in the waterproofing sector.
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What Drove the Early Growth of Oriental Yuhong?
Oriental Yuhong's early growth was built on a foundation of high-quality waterproof materials and a strategic focus on significant construction projects. Since its establishment in 1995, the company has systematically broadened its offerings from core waterproofing solutions to a wider array of building materials.
Founding and Early Focus
Founded in 1995, the company's initial strategy centered on delivering superior waterproof materials for major construction endeavors. This early period saw a deliberate expansion of its product portfolio beyond its initial waterproofing focus.
Quality Assurance Milestones
A key development in its early years was achieving recognition as one of the first exemption enterprises for waterproof products by the General Administration of Quality Supervision, Inspection and Quarantine of PRC in 2004. This was complemented by Oriental Yuhong Waterproof Material Testing Co., Ltd. securing CNACL authentication for its testing capabilities.
Public Listing and Investment
The company marked a significant financial and strategic turning point with its listing on the Shenzhen Stock Exchange on September 10, 2008. This Initial Public Offering (IPO) successfully raised approximately RMB 1.8 billion, funds vital for bolstering its research and development and accelerating overall expansion.
Capacity Expansion and Market Reach
By 2021, the company had substantially grown its manufacturing capacity, establishing new facilities and enhancing its distribution network to reach a total production capacity of 300,000 tons per year. This expansion was crucial for meeting escalating market demands both domestically and internationally. The company's Growth Strategy of Oriental Yuhong has been instrumental in this phase.
Channel Transformation and Revenue Growth
In 2024, the company continued its strategic channel transformation efforts. Revenue from its engineering and retail channels combined reached 23.562 billion yuan, representing 83.9% of its total revenue. The retail segment alone generated operating revenue of 10.209 billion yuan in 2024, showing a year-on-year increase of 9.92%.
International Expansion Initiatives
The company initiated its strategic international expansion with plans for a new production, R&D, and logistics hub in Houston, Texas, USA. Groundbreaking for this facility occurred in August 2024, with completion anticipated in 2025. This North American venture is projected to create approximately 100 jobs and aims to further develop global sales channels.
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What are the key Milestones in Oriental Yuhong history?
The Oriental Yuhong company history is marked by significant achievements in waterproofing technology and a robust patent portfolio, alongside navigating economic challenges. The company's commitment to innovation and quality has been recognized through various accolades, underscoring its position in the industry.
| Year | Milestone |
|---|---|
| 2019 | Recognized as a leader in waterproof technology by the China Waterproof Association. |
| 2019 | Received a second prize in the 'National Award for Scientific and Technological Progress' for its high-performance, multi-material, multi-layer macromolecular coiled materials for underground waterproofing. |
| July 2021 | Secured a European invention patent for its HDPE products. |
| 2023 | Obtained U.S. and Australian invention patents for its butyl rubber reactive bonding layer and highly water-resistant, flexible cementitious coating. |
| November 2024 | Authorized an equity buyback plan of CNY 1,000 million, following a previous buyback of CNY 600 million. |
Oriental Yuhong has consistently pushed the boundaries of waterproofing solutions through its innovative product development. The company's dedication to research and development is reflected in its substantial patent holdings, which include 443 invention patents, 1026 utility model patents, and 266 design patents as of 2023.
High-Performance Macromolecular Coiled Materials
Developed advanced multi-material, multi-layer coiled materials specifically designed for underground waterproofing applications, earning national recognition.
HDPE Product Innovation
Secured a European invention patent for its High-Density Polyethylene (HDPE) products, highlighting international technological advancement.
Advanced Bonding Layer and Coating Technology
Received U.S. and Australian invention patents for its innovative butyl rubber reactive bonding layer and a highly water-resistant, flexible cementitious coating.
Extensive Patent Portfolio
Amassed a significant number of patents, including 443 invention patents, 1026 utility model patents, and 266 design patents by 2023, showcasing a strong commitment to intellectual property.
The company has faced significant economic headwinds, with a notable downturn in financial performance. In 2024, net profit attributable to the parent company saw a substantial decrease of 95.24% year-on-year, reaching 0.108 billion yuan, while revenue declined by 14.52% to 28.056 billion yuan.
Economic Headwinds and Revenue Decline
Experienced a revenue decrease of 14.52% in 2024, amounting to 28.056 billion yuan. This trend continued into the first quarter of 2025 with a further 16.7% year-on-year revenue drop to 5.955 billion yuan.
Profitability Challenges
Net profit attributable to the parent company in 2024 plummeted by 95.24% to 0.108 billion yuan. The first quarter of 2025 also showed a decline of 44.7% in net income to 0.19 billion yuan.
Market and Demand Pressures
These financial setbacks are attributed to weaker-than-expected downstream demand and competitive pressures that have impacted gross margins. Understanding these dynamics is crucial for grasping the Mission, Vision & Core Values of Oriental Yuhong.
Strategic Response and Adaptation
In response, the company is focusing on internal controls, channel optimization, and risk mitigation. Initiatives include cost reduction, efficiency improvements, and strategic equity buybacks to bolster profit margins and adapt to market shifts.
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What is the Timeline of Key Events for Oriental Yuhong?
The Oriental Yuhong company background details a journey from its founding in 1995 to its current global standing. This Oriental Yuhong history showcases consistent growth and adaptation in the building materials sector.
| Year | Key Event |
|---|---|
| 1995 | Founded as Changsha Changhong Building Waterproof Engineering Co., Ltd. |
| 2004 | Became an exemption enterprise for waterproof products and its testing lab received CNACL authentication. |
| 2008 | Listed on the Shenzhen Stock Exchange (SZSE: 002271) on September 10th. |
| 2013 | Established its first international manufacturing plant in Trinidad and Tobago. |
| 2017 | Co-founded Zhongguancun Bank, a private financial institution. |
| 2019 | Received the second prize in the 'National Award for Scientific and Technological Progress' for its macromolecular coiled material technology. |
| 2021 | Launched eco-friendly waterproof membranes and expanded production capacity to 300,000 tons/year, also securing a European invention patent for HDPE products. |
| 2023 | Expanded international reach to over 30 countries and was recognized in the Fortune China Top 500 and Top 100 Global Building Materials Listed Companies. |
| 2024 Q1-Q3 | Reported operating revenue of RMB 21.698 billion, a 14.44% decrease year-on-year. |
| 2024 | Achieved full-year revenue of 28.056 billion yuan, a 14.52% decrease, with net income at 0.108 billion yuan, down 95.24%. Groundbreaking for a North American base in Houston, Texas occurred in August. |
| 2025 Q1 | Revenue was 5.955 billion yuan, a 16.71% year-on-year decrease, with net income at 0.192 billion yuan, down 44.68%. |
| 2025 | The North America new base in Houston is expected to be completed, creating 100 jobs. Anticipated Q2 revenue is 6.808 billion CNY. The company expects to acquire Chilean construction materials distributor Construmart S.A. |
Technological Innovation Focus
The company plans significant investment in R&D, with a projected budget of RMB 600 million for the upcoming fiscal year. This investment will prioritize sustainable building solutions and smart construction technologies.
Global Market Expansion
The upcoming completion of the North American base in Houston, Texas, in 2025 is a key strategic move. This expansion aims to strengthen its presence in vital international markets.
Market Opportunity
The global waterproofing market is projected for substantial growth, expected to increase from $32.43 billion in 2025 to $47.71 billion by 2032. This presents considerable opportunities for the company.
Strategic Dual-Driven Model
The company is accelerating a dual-driven strategy that integrates its domestic market strength with a global expansion plan. This approach aligns with its mission to foster a sustainable and safe environment.
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