Jianlang Hardware: Expected loss of 25-35 million yuan in the first half of 2025
Recently, Guangdong Jianlang Hardware Products Co., Ltd. (hereinafter referred to as "Jianlang Hardware"), a leading domestic construction hardware enterprise, released its semi annual performance forecast for 2025. The announcement shows that the company expects a loss in the net profit attributable to shareholders of the listed company (referred to as "net profit attributable to shareholders") in the first half of the year, with a loss range of RMB 25 million to RMB 35 million. This performance shows a significant decline compared to the same period last year (profit of 4.8902 million yuan). The net profit after deducting non recurring gains and losses (referred to as "non recurring net profit") of the company is expected to incur a loss of 40 million to 47 million yuan, with the extent of the loss expanding compared to the same period last year (loss of 16.9013 million yuan).
Revenue decline, performance pressure mainly due to shrinking domestic demand
The announcement points out that the performance changes are mainly due to the severe challenges in the domestic construction market environment. In the first half of 2025, the domestic construction industry will show a "weak recovery" trend, with overall market demand continuing to shrink and industry competition intensifying. Jianlang Hardware's core business revolves around the integrated supply strategy of building accessories, but is constrained by the reduction of new projects in China, especially in business sectors with high relevance to real estate, which continue to face enormous pressure. At the same time, the company's progress in exploring new products and new scenario businesses seeking growth breakthroughs has not met expectations, and has not effectively compensated for the decline in traditional businesses.
Overseas business has become a highlight, but its proportion is still small and cannot offset the overall decline
It is worth noting that the company has maintained a good growth trend in overseas markets based on the accumulated customer resources and market development foundation, becoming one of the few positive factors during the reporting period. However, due to the relatively small proportion of overseas business in the overall revenue of the company, the incremental growth brought by its growth is not enough to offset the impact of the decline in domestic business. Due to various factors, the company's cumulative operating revenue for the first half of 2025 is expected to decrease by about 14% -15% year-on-year, ultimately dragging down the net profit attributable to shareholders of the listed company from profit to loss year-on-year.
About Jianlang Hardware
Guangdong Jianlang Hardware Products Co., Ltd. is a leading integrated supplier of building accessories in China, mainly engaged in the research and development, production, and sales of mid to high end building hardware systems and building components. The company's products are widely used in commercial buildings, public facilities, and residential areas.