Oriental Yuhong: history and business model

The development history of Oriental Yuhong can be divided into the following three key phases:

1. Founding and Standardization Period (1995–2007)

This phase laid the foundation for the company, transitioning from a small trading business to specialized manufacturing. Founded by Mr. Li Weiguo in 1995, the company initially focused on the production and R&D of construction waterproofing materials. During this period, Oriental Yuhong committed to addressing the fragmented and disorganized state of the Chinese waterproofing market. By introducing modern production lines, the company established strict product quality standards and gradually built a nationwide sales network and technical service system, accumulating the strength needed for large-scale development.

2. Capital Market Expansion and Business Growth (2008–2017)

In 2008, the company went public on the Shenzhen Stock Exchange (Stock Code: 002271), marking a major milestone in its history. Leveraging the power of the capital market, Oriental Yuhong entered a period of rapid expansion through a strategic layout of production bases designed for “nationwide coverage and quick response,” significantly improving production capacity and logistics efficiency. During this stage, the company’s business expanded from single waterproofing materials into upstream and downstream industrial chains, such as architectural coatings and energy-saving insulation materials. It also became deeply involved in major national infrastructure projects, solidifying its leadership in the industry.

3. Globalization and Transformation into a Building Materials System Service Provider (2018–Present)

Entering a phase of international operation, Oriental Yuhong transformed from a “waterproofing system supplier” into a “comprehensive building materials system service provider.” The company increased its R&D investment in green, eco-friendly materials, specialty mortars, and new energy-saving technologies. Simultaneously, it has been actively pursuing a global strategy, strengthening its international brand influence through technology exports and overseas market expansion. Currently, the company is driving a full-scale digital and intelligent transformation, dedicated to providing one-stop solutions for the global construction market through more efficient system integration services.

Oriental Yuhong’s business model centers on transforming from a traditional material manufacturer into a comprehensive building materials system service provider, driving revenue and market dominance through the following key strategies:

Manufacturing and Construction Integration Services: Not only producing high-quality waterproofing and building materials, but also providing professional construction teams and technical support to deliver one-stop solutions, effectively reducing engineering quality risks and increasing customer stickiness.
Diversified Product Matrix and Cross-Selling: Using waterproofing materials as a core foundation while expanding upstream and downstream into high-margin sectors such as architectural coatings, energy-saving insulation materials, and specialty mortars to meet the comprehensive building material demands of large-scale real estate and infrastructure projects.
Dual-Track Channel Strategy of Direct Sales and Distribution: Employing direct service models for major infrastructure projects, subways, high-speed railways, and benchmark real estate developers, while leveraging a nationwide distributor network to cover fragmented small-to-medium commercial and residential renovation markets for scaled revenue.
Globalization and Digital Transformation Strategies: Continuously expanding overseas markets and strengthening technology exports while optimizing production costs through digitalization and intelligent management to enhance long-term operational resilience and profitability.