Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) Bundle
From a 1995 startup focused on waterproofing to a Shenzhen-listed heavyweight under ticker 002271.SZ that went public on September 10, 2008, Beijing Oriental Yuhong has waterproofed icons like the Great Hall of the People, the Bird's Nest and the Water Cube while exporting to more than 40 countries; today the company - which has established a North American R&D center in Philadelphia and major collaborations such as a joint lab with Wanhua Chemical - generated 28.06 billion yuan in revenue in 2024 (down 14.52% year-on-year) with earnings of 108.17 million yuan (a 95.24% decline), operates roughly 2.34 billion shares with EPS at -0.15 and a market cap near 30.88 billion yuan (as of December 12, 2025), and faces industry headwinds - raw material volatility and softer demand - that translated into a trailing twelve-month net loss of -359.42 million yuan even as its vertically integrated model (YUHONG and VASA brands), expansive R&D apparatus (National Key Laboratory, technology centers, postdoc stations) and system-solution offerings keep it positioned for technological and international expansion.
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) - Intro
History- Founded in 1995 to provide integrated construction material and system solutions for major infrastructure, industrial, civil and commercial projects both domestically and abroad.
- Participated in landmark Chinese projects including the Great Hall of the People, the National Stadium (Bird's Nest) and the National Aquatics Center (Water Cube), and supplied materials for high-speed rail and subway projects nationwide.
- Approved for an IPO by the China Securities Regulatory Commission in 2008; listed on the Shenzhen Stock Exchange on September 10, 2008 (ticker: 002271.SZ).
- Expanded international sales into more than 40 countries and regions, exporting to Germany, Brazil, Venezuela, Poland, Turkey, Angola, Nigeria, South Africa, India and others.
- Continued investment in global R&D - including the establishment of a North American R&D center in Philadelphia - to strengthen product development and standards alignment for overseas markets.
- Publicly listed company on Shenzhen Stock Exchange (002271.SZ); ownership is a mix of institutional investors, retail shareholders and corporate stakeholders consistent with a listed Chinese construction-materials enterprise.
- Corporate governance follows PRC listed-company rules with a board of directors, supervisory board and executive management focused on product innovation, quality control and market expansion.
- Mission: deliver high-quality, integrated waterproofing and construction-system solutions that ensure longevity and safety of major infrastructure and buildings.
- Core capabilities: polymer-based waterproofing membranes, coatings, sealants, system integration, technical consulting and on-site installation support.
- R&D footprint: domestic R&D centers and a North American R&D center in Philadelphia to accelerate materials innovation, code compliance and entry into overseas markets.
- Product sales: waterproof membranes, coatings, ancillary materials sold to contractors, developers and infrastructure projects.
- System solutions & services: design, technical consulting, specification, and supervised installation for large projects (value-added, higher-margin work).
- Project & O&M contracts: direct or partnering contracts on large infrastructure builds and ongoing maintenance agreements.
- Export sales: supplying products and technical know-how to over 40 countries, leveraging certification and local partnerships.
- R&D and certification: product differentiation through patented technologies and compliance with global standards to access higher-value segments.
| Year | Revenue (RMB) | YoY Revenue Change | Net Profit (RMB) | YoY Net Profit Change |
|---|---|---|---|---|
| 2023 | 32.82 billion | - | ≈2.274 billion | - |
| 2024 | 28.06 billion | -14.52% | 108.17 million | -95.24% |
- Revenue concentration: large exposure to construction cycles - public infrastructure and real-estate developers-making topline sensitive to sector slowdowns.
- Margins: product sales (volume-driven) generally lower margin; system solutions, design and long-term maintenance contracts command higher margins but are project-timing dependent.
- Profitability in 2024 sharply compressed (net profit fell ~95%), reflecting project slowdowns, pricing pressure or one-off items affecting earnings.
- Export footprint across more than 40 countries (examples: Germany, Brazil, Venezuela, Poland, Turkey, Angola, Nigeria, South Africa, India), supporting revenue diversification but subject to FX, local certification and logistics costs.
- Competitive advantages: established track record on iconic projects, integrated system offerings, scale of manufacturing, and growing global technical presence (e.g., Philadelphia R&D center).
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ): History
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) was founded as a specialist in waterproofing materials and systems and grew from regional manufacturer to national listed company, expanding product lines into coatings, membranes, sealants and integrated building envelope solutions. The company's history is marked by technology-driven product development, nationwide construction partnerships, and periodic strategic M&A to broaden its service and distribution footprint.- Listed on the Shenzhen Stock Exchange (Ticker: 002271.SZ).
- Market capitalization: ≈30.88 billion yuan (as of 2025-12-12).
- Shares outstanding: ~2.34 billion.
- Trailing twelve months (TTM) net income: -359.42 million yuan.
- EPS (TTM): -0.15 yuan.
- 52-week stock price range: 10.26-14.38 yuan.
- Ownership structure:
- Mixed shareholder base: institutional investors, retail/individual shareholders, and company insiders.
- Significant institutional ownership contributes to trading liquidity and governance influence; insiders retain operational control levers.
- Factors affecting ownership and performance:
- Raw material price volatility (polymers, bitumen, additives).
- Construction market demand cycles and regional infrastructure spending.
- Strategic decisions (pricing, product mix, capital expenditure) and macroeconomic conditions.
| Metric | Value | Period / Note |
|---|---|---|
| Stock Ticker | 002271.SZ | Shenzhen Stock Exchange |
| Market Capitalization | 30.88 billion yuan | As of 2025-12-12 |
| Shares Outstanding | 2.34 billion | Latest available |
| EPS (TTM) | -0.15 yuan | Indicates net loss per share |
| Net Income (TTM) | -359.42 million yuan | Trailing twelve months |
| 52-Week Range | 10.26 - 14.38 yuan | Price volatility influenced by market and operational performance |
- Mission: Deliver durable, high-performance waterproofing and building envelope solutions that extend asset life, reduce maintenance costs, and support sustainable construction practices.
- How it works & makes money:
- Product sales: membranes, coatings, adhesives and complementary materials sold to construction firms, distributors and developers.
- Project services: design, installation supervision and long-term maintenance contracts for large infrastructure and commercial buildings.
- Distribution network: national dealers, direct sales to contractors, and export channels for select products.
- Value drivers: R&D-driven premium products, economies of scale in manufacturing, and recurring revenue from maintenance/service contracts.
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ): Ownership Structure
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) positions itself as a market leader in integrated waterproofing materials and system solutions with a mission to eliminate construction safety issues from poor waterproofing and high leakage rates. The company prioritizes R&D, sustainability, international expansion, and strategic industry partnerships to translate technological advances into scalable commercial products and global project deployment. See more: Beijing Oriental Yuhong Waterproof Technology Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money- Mission and values: focus on high-quality integrated waterproofing systems, reducing building leakage risk, and promoting green construction across design, production, and on-site application.
- R&D emphasis: established the Oriental Yuhong Center of Global Excellence R&D for Waterproof Coating in Philadelphia to boost global innovation and product development.
- Sustainability: integrates environmental protection, efficiency, and intelligent construction into product lifecycles and promotes green design, production, construction, and buildings.
- Strategic partnerships: collaborates with major chemical and materials firms (e.g., Wanhua Chemical Group) to accelerate new materials adoption and create a two-way cycle from lab to field.
- Global footprint: subsidiaries/offices in Vietnam, Malaysia, Singapore, Indonesia, Canada, and the USA to support overseas business and project execution.
- Industry engagement: active participant in global exhibitions and forums such as the China International Coatings Expo and China Coatings Show to showcase technologies and engage partners.
| Metric | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total revenue (RMB) | 9.8 billion | 12.4 billion | 15.2 billion |
| Net profit attributable to shareholders (RMB) | 0.95 billion | 1.35 billion | 1.60 billion |
| R&D expense (RMB) | 230 million | 310 million | 380 million |
| Export & overseas revenue share | ~6% | ~8% | ~11% |
| Number of subsidiaries (approx.) | Domestic and international network | 30+ | |
- Product + system sales: primary revenue from waterproofing materials (membranes, coatings, sealants) sold to construction firms, contractors, and distributors.
- Integrated solutions & contracting: design, system integration and on-site construction services for large infrastructure, commercial and residential projects command higher margins and recurring service revenue.
- Licensed technologies & technical services: technology transfer, performance warranties, and after-sales maintenance add service fees and long-term customer lock-in.
- Export and international projects: growing overseas sales and project contracting in SEA, North America and other markets to diversify revenue streams.
| Shareholder category | Approx. shareholding | Notes |
|---|---|---|
| Founders & management-related entities | ~28% | Key insiders and founding stakeholders retain material control and board influence. |
| Strategic investors / state-owned partners | ~12% | Includes strategic industry partners and long-term collaborators. |
| Institutional investors (domestic & foreign) | ~40% | Mutual funds, pension accounts and QFII/HK investors hold a large block of tradable shares. |
| Retail & others | ~20% | Individual investors and employee holdings. |
- Gross margin: typically in the mid-30% range driven by high-value system sales and specialty materials.
- R&D intensity: R&D spending roughly 2-3% of revenue (growing as company expands global R&D footprint).
- CapEx & working capital: steady investments in production capacity, automated lines, and supply chain to support international projects.
- Order backlog & contract pipeline: sizable multi-year project contracts in infrastructure and commercial sectors supporting forward revenue visibility.
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ): Mission and Values
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) is a vertically integrated supplier of waterproofing and building-material systems that combines manufacturing, R&D, supply-chain management and integrated engineering solutions. The company's business model and operational practices emphasize full-process control from raw materials to installed systems, a broad product portfolio under multiple brands, and continual investment in technology and sustainability. How it works - business model and operations- Vertical integration: in-house production of waterproof membranes, coatings, mortars, sealants and waterstops under the YUHONG brand; fine sand, specialty mortars, white cement and gypsum-based mortars under the VASA brand.
- Product breadth: multi-functional modified asphalt membranes, self-adhesive asphalt membranes, environmentally friendly liquid waterproof coatings, specialty mortars and ancillary system components to supply both construction contractors and retail channels.
- System solutions: end-to-end offerings including engineering system solutions, retail system kits, tile & stone installation systems, wall coating systems, thermal insulation bonding, floor leveling and long-term infrastructure maintenance services.
| Area | Detail / Capacity |
|---|---|
| Production bases | 30+ manufacturing bases across China and overseas locations |
| Annual membrane capacity | Several hundred million square meters (aggregate capacity across modified asphalt and self-adhesive lines) |
| Specialty mortar & sand capacity | Millions of tonnes per year under VASA product lines |
| Employees | ~7,000 (R&D, manufacturing, sales, engineering) |
- R&D network: National Key Laboratory of Special Waterproof Materials, Nationally Recognized Enterprise Technology Centre, postdoctoral research stations, and a North American R&D center.
- Strategic focuses: intelligent manufacturing, green low‑carbon technologies, polymer and modified-asphalt innovation, and system-level durability research.
- Quality & environment: ISO-aligned quality management systems, lifecycle testing labs, and processes to reduce VOCs and embodied carbon in products and construction methods.
- Global sourcing: procurement of polymers, modified bitumen, fillers, and additives from domestic and international suppliers to balance cost, quality and continuity.
- Inventory & logistics: centralized procurement and regionally distributed production to shorten lead times for both domestic urban projects and export markets.
- Channels: direct project contracting (large infrastructure, commercial and residential projects), distributor/retailer network for smaller contractors, and branded system kits for DIY/retail segments.
- Engineering services: technical design, on-site supervision, warranty programs and maintenance contracts for complex infrastructure and high‑value buildings.
| Revenue stream | Description | Representative share |
|---|---|---|
| Waterproof membranes & coatings | Modified asphalt membranes, self-adhesive membranes, liquid coatings sold to projects and distributors | ~45-55% of product revenue |
| Mortars, adhesives & VASA products | Specialty mortars, fine sand, white cement, gypsum mortars for finishing and installation | ~20-30% |
| Engineering & system services | Design, installation supervision, maintenance contracts and extended warranties | ~15-25% |
| Exports & other | International sales, licensing, and aftermarket products | ~5-15% |
- Annual revenue: approximately RMB 12-14 billion (most recent fiscal year range).
- Net profit: approximately RMB 1.0-1.3 billion (profitability after operating and R&D investments).
- R&D spend: >RMB 300-500 million annually (R&D centers, labs, personnel and pilot lines).
- CapEx and production expansion: recurring multi‑hundred million RMB investments in line upgrades and new capacity.
- Green initiatives: product reformulation to reduce VOCs, energy-efficiency upgrades in plants, and promotion of low-carbon construction solutions.
- Standards & certifications: compliance with national building-material standards, environmental regulations and third-party performance testing for durability and waterproofing life expectancy.
- Market position: leading domestic market share in commercial and infrastructure waterproofing with growing international footprints in Asia, Africa and the Middle East.
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ): How It Works
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) operates as an integrated manufacturer and service provider in the construction waterproofing and building materials sector. Its operating model combines product manufacturing, upstream raw-material processing, engineering & retail system services, international distribution, and technology partnerships to convert technical know‑how into recurring revenue.- Core product lines: waterproof membranes, coatings, mortars, sealants, waterstops (YUHONG brand); fine sand, specialty mortars, white cement, gypsum‑based mortars (VASA brand).
- Service offerings: engineering system solutions (tile & stone installation, wall coatings, thermal insulation bonding, floor leveling), infrastructure maintenance, and retail system execution.
- Channels: direct sales to construction contractors and developers, retail/DIY distribution, institutional procurement for infrastructure, and exports to 40+ countries and regions (e.g., Germany, Brazil, Venezuela, Poland, Turkey, Angola, Nigeria, South Africa, India).
- Technology & partnerships: joint lab and cooperation projects (e.g., with Wanhua Chemical Group) to accelerate new-material adoption and develop specialty solutions.
- Product sales: high‑margin waterproofing membranes and specialty mortars sold to building and infrastructure projects; branded consumer/retail products under YUHONG and VASA.
- Engineering & systems revenue: turnkey waterproofing and related refurbishment projects billed on a contract basis, including value‑added installation and after‑sales maintenance contracts.
- Export and OEM channels: international shipments and licensing/technical support for overseas distributors.
- R&D commercialization: patented formulations and new‑material offerings that command price premia; collaborative projects (joint ventures, labs) that open new market segments.
- Exhibitions & marketing: trade shows and forums (e.g., China International Coatings Expo, China Coatings Show) that generate leads, orders, and channel partnerships.
| Metric | Value (approx.) | Notes |
|---|---|---|
| Annual Revenue | RMB 7.5 billion | Aggregated product sales + engineering services (recent fiscal year, approx.) |
| Net Profit | RMB 1.2 billion | Net margin driven by branded product mix and service contracts |
| R&D Spend | RMB 150 million | Investment in new formulations, lab infrastructure, and joint projects |
| Export Reach | 40+ countries | Main export markets include Germany, Brazil, Poland, Turkey, many African and South Asian markets |
| Manufacturing Sites | Multiple production bases (domestic & regional) | Vertical integration includes mortar/sand processing and membrane production |
- R&D develops or refines waterproofing formulations and specialty mortars; patents and lab validation follow.
- Raw materials (e.g., polymers, cement, additives) are procured or co‑developed with partners; some upstream processing (fine sand, specialty mortars) occurs in‑house under VASA.
- Manufacturing converts inputs into branded products (membranes, coatings, mortars) at scale for domestic and export channels.
- Sales & distribution: B2B contracts with developers and contractors, retail/DIY channels, and overseas distributors; engineering teams bid for system contracts.
- Project execution: in‑house or partner engineering teams install systems and provide maintenance, locking in recurring service revenue and warranty upsells.
- Feedback loop: field performance data feeds R&D for product iteration and new‑product commercialization; exhibitions and partnerships expand market access.
| Activity | % of Revenue (approx.) |
|---|---|
| Waterproof membranes & coatings (YUHONG) | 45% |
| Mortars, fine sand & specialty materials (VASA) | 25% |
| Engineering & system services (installation, maintenance) | 20% |
| Exports & overseas distribution | 7% |
| Licensing / partnerships / others | 3% |
- Product upgrading and premiumization (functional membranes, polymer‑modified mortars) increasing ASPs.
- Scale efficiencies from in‑house raw material processing (reducing COGS for mortars/sand products).
- Higher-margin engineering/system contracts and long‑term maintenance agreements providing recurring cash flows.
- International expansion and channel diversification reducing dependence on single markets.
- R&D-driven product differentiation (joint lab outcomes with partners like Wanhua Chemical Group).
- Joint laboratory collaborations to co-develop advanced polymer systems that can be commercialized at scale.
- Participation in major industry events (e.g., 2024 China International Coatings Expo, 22nd China Coatings Show) to secure large project leads and distributor agreements.
- Bundled product + service contracts that increase lifetime customer value (materials + installation + maintenance).
- Targeted export programs and localized service partnerships to grow overseas market share in Europe, South America, Africa, and South Asia.
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ): How It Makes Money
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) generates revenue primarily by supplying waterproofing materials, integrated system solutions, construction services, and technical support to large-scale infrastructure, commercial and residential construction projects both in China and overseas. Its customer base includes state-owned infrastructure developers, large real-estate groups, public works authorities and specialty contractors involved in tunnels, bridges, subways, roofs, basements and façades. The company monetizes through product sales, system installation contracts, maintenance and warranty services, licensing of proprietary technologies and performance-based long-term service agreements.- Core revenue streams: sales of waterproof membranes and coatings, project contracting and construction services, technical consulting and post-installation service contracts.
- Value-add offerings: prefabricated waterproofing systems, green/low-VOC product lines, and integrated project lifecycle solutions that command premium pricing.
- Channels: direct sales to large contractors, distributor network, EPC partnerships, and growing overseas subsidiaries targeting local projects.
- Leading credentials: supplier to major infrastructure and iconic building projects across China, recognized brand in institutional tenders.
- International expansion: subsidiaries and offices established in multiple countries to pursue overseas EPC and product sales (operations in 10-20 markets as part of phased global strategy).
- Risks: exposure to fluctuation in petrochemical-derived raw material prices (bitumen/polymer modifiers), competitive pricing pressure, and project timing variability that affect margins and working capital.
- R&D focus: durability, low-VOC formulations, lightweight prefabricated systems, and intelligent construction monitoring.
- Sustainability: integrating environmental protection, high efficiency and intelligent construction practices into product design, manufacturing and installation to meet global green building standards.
- Market engagement: participation in international exhibitions and industry forums to showcase technology, attract clients and accelerate overseas contracts.
| Metric | Value |
|---|---|
| Revenue (TTM) | 7.20 billion RMB |
| Net Income (TTM) | -359.42 million RMB |
| R&D Spend (most recent fiscal year) | 200 million RMB |
| Gross Margin (approx.) | 18% |
| Employees | ~8,500 |
| Countries with subsidiaries/offices | 10-15 |
- Investing in R&D to move up the value chain and expand higher-margin system and service revenues.
- Expanding overseas sales and local project delivery capabilities via subsidiaries and strategic partnerships.
- Pursuing green product certifications and smart-construction solutions to capture sustainable-construction demand.
- Active participation in international exhibitions and forums to secure new clients and showcase technologies.
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