Waterproof industry still performs well

The waterproofing industry continues to show strong performance, driven by growing demand and improved standards. The Ministry of Industry and Information Technology has announced the first batch of production lines that meet the "Conditions for Building Waterproof Coil Industry Entry," following the "Construction Waterproof Coil Industry Access Requirements" and the "Interim Measures for the Administration of Building Waterproof Coil Industry Access Notice." Renowned companies such as Oriental Yuhong are among those listed, signaling a positive shift in the sector. One of the highlights is the increased interest from investors and analysts. In November 2013, enterprises above the designated size in the waterproofing industry saw a 23% increase in main business income and a 12% rise in total profit—figures far exceeding the average growth rate of other building materials industries. This success has attracted attention from major players, including Shenzhen Qianhong Joint Venture Co., Ltd., led by veteran private equity investor Wang Yawei, and Huaxia Asset Management Co., Ltd., which have both conducted research on Oriental Yuhong. These activities reflect the growing recognition of the company's potential in the market. This growth is closely tied to the industry’s development over the past few years. For three consecutive years, the waterproofing industry has seen significant increases in total output value, sales revenue, total profit, and fixed asset investment, reaching record highs. The industry’s total output value has surpassed 150 billion yuan. Behind these impressive numbers lies a clear trend: the demand for waterproofing solutions remains robust, and the industry has become a focal point of public concern. According to a summary by the China Building Decoration Association, the waterproofing industry achieved two major transformations in 2013. First, there was a notable improvement in residential quality as waterproofing became an essential material in civil construction. Second, its application expanded beyond residential buildings to critical sectors like national defense and military infrastructure. These shifts have contributed to the industry’s strong performance, even under strict regulatory controls. Zhu Dongqing, chairman of the China Building Waterproofing Association, emphasized that the industry’s status has improved significantly. Companies have raised their quality awareness, and the overall working environment has become more favorable. He pointed out that these three key changes—improved industry status, enhanced quality consciousness, and better working conditions—are the main drivers behind the healthy and orderly development of the waterproofing sector in 2013. However, challenges remain. Despite the industry producing 1.6 billion square meters of waterproof materials for major buildings, improving product quality remains a top priority. Many companies still operate at a basic level, but some are now focusing on elevating the industry’s standards and dignity. In April of the previous year, under the joint initiative of the General Administration of Quality Supervision, Inspection and Quarantine, the Ministry of Industry and Information Technology, and the China Construction Waterproofing Association, well-known firms like Beijing Oriental Yuhong and Guangdong Keshun launched the “Building Waterproof Industry Health Development Industry Alliance.” The alliance aims to promote health and sustainability within the industry. Through this collaboration, leading companies have strengthened their quality awareness and built a strong brand image. By investing in R&D, adopting advanced technologies, and establishing rigorous quality control systems, the industry has seen a significant decline in product complaints. This progress shows that the sector is moving toward higher standards and greater reliability. To sustain this momentum, cooperation with real estate developers is essential. Leading waterproof brands such as Oriental Yuhong, Keshun, Zhuobao, and Desheng have made partnerships with top housing companies a strategic goal. Major developers like Vanke, Evergrande, Poly, and Longhu have included Oriental Yuhong products in their procurement plans. As the real estate industry places increasing emphasis on waterproofing, professional waterproofing companies are becoming more involved in design and construction. Centralized procurement, strategic alliances, and collaborative efforts will not only bring high-quality materials to construction sites but also help introduce waterproofing concepts into the broader engineering market. Zhu Dongqing highlighted two key areas for future development: first, ensuring that over 50 companies pass standardized laboratory acceptance tests this year, while maintaining strict raw material inspection, production monitoring, and product testing protocols. Second, strengthening employee training in energy-saving practices, which can serve as a new model for business innovation and a core competitive advantage for future waterproofing companies. Industry experts believe that as public concern over house leaks grows, homeowners’ expectations for waterproofing will continue to rise. Civil buildings must meet not only structural requirements but also long-term durability, moisture resistance, and green, low-carbon standards. This shift presents a larger market opportunity but also demands higher quality assurance. Any failure in quality could undo years of brand reputation. In the future, leading waterproofing companies should expand their operations upstream and downstream, deepening their services to better meet the needs of residents. As Zhu Dongqing concluded, the focus on family waterproofing will shape the industry’s next phase of development.

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