In-Depth Analysis of Dongpeng Holdings' Ceramic Tile Business and Industry Competitive Landscape

Based on the above data analysis, I hereby provide you with an in-depth analysis report on

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Dongpeng Holdings’ ceramic tile business revenue indeed shows a

:

Period	Ceramic Tile Revenue (RMB 100 million)	YoY Growth Rate	Proportion of Total Revenue
2021	67.8	+5.8%	~85%
2022	57.3	-15.49%	~83%
2023	59.3	+3.49%	~76%
2024	51.0	-14.00%	~79%
H1 2025	24.85	-2.93%	~85%

• Cumulative decline of approximately 25% from 2022 to 2024
  : down from RMB 6.78 billion to RMB 5.1 billion
• After a brief 3.49% rebound in 2023, it fell back into negative growth in 2024
• The decline trend continued in H1 2025, but the decline rate has narrowed [0][1]

• National ceramic tile output reached 5.91 billion square meters in 2024, down 12.18% YoY, marking four consecutive years of negative growth
• The number of fully furnished housing units launched plummeted from 3.25 million in 2020 to 930,000 in 2023
• The risk of default among real estate enterprises is spreading, and the contraction of the engineering channel has become an industry consensus

• The number of national architectural ceramic production lines decreased from 2,485 in 2022 to 2,193 in 2024, with an exit rate of 11.75%
• Overcapacity has intensified the characteristics of “late kiln startup at the beginning of the year, frequent kiln shutdowns in the middle of the year, and early kiln shutdown at the end of the year”
• This has triggered a continuous decline in product prices in the market, intensifying price competition

• The company has adopted a prudent engineering development strategy, proactively controlling the undertaking of low-quality projects
• Revenue from the engineering channel declined YoY, putting pressure on overall revenue
• However, the gross profit margin remained stable against the trend, reflecting the rationality of the strategic adjustment

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China’s architectural ceramic industry presents a competitive landscape of

:

Enterprise	2022 Market Share	2023 Market Share	Change
Marco Polo	2.62%	3.23%	+0.61pct
New Pearl	2.21%	Not Disclosed	-
Dongpeng Holdings	1.48%	1.94%	+0.46pct
Mona Lisa	1.97%	2.21%	+0.24pct
Diou Home Furnishings	1.07%	1.29%	+0.22pct

• The top five companies account for approximately 10% of the total market share, indicating that industry concentration is still low
• Market share of leading enterprises continues to increase
  , indicating that the industry is accelerating capacity consolidation
• Marco Polo remains the industry leader, and Dongpeng Holdings ranks among the top three

• Above-scale architectural ceramic enterprises: 1,048 in 2021 → 993 in 2024
• A reduction of 29 enterprises in 2024, the most significant reduction in recent years
• It is expected that at least one-third of the production capacity will need to exit in the future to achieve a new production-sales balance

• 2021: 8.174 billion ㎡ → 2022: 7.310 billion ㎡ → 2023: 6.730 billion ㎡ → 2024: 5.91 billion ㎡
• The China Building Sanitary Ceramics Association predicts that the market capacity will stabilize at around 4 billion square meters

• The retail channel has become a must-compete area: Dongpeng Holdings’ ceramic tile revenue from the large retail channel increased by 5.94% YoY
• The whole-home customization channel is rising rapidly: various enterprises have increased their layout in the whole-home customization channel
• Proactive contraction of the engineering channel: leading enterprises generally reduce orders from low-quality real estate clients

• Revenue from high-value products increased by 19.51% YoY, indicating a consumption upgrade trend
• The proportion of glazed tiles (with higher average price) has increased, while the proportion of unglazed tiles (low-end products) has decreased by 61.32%
• Mid-to-high-end products such as large-size tiles and sintered stone have become new growth drivers

• Dongpeng Holdings: gross profit margin 29.69%, net profit RMB 328 million, ROE 4.27%
• Mona Lisa: gross profit margin approximately 26%, net profit approximately RMB 220 million
• Diou Home Furnishings: loss of RMB 569 million, ROE -30.31%, trapped in operational difficulties

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Indicator	2024	Industry Position	Evaluation
Operating Revenue	RMB 6.469 billion	Second in the industry	Leading scale
Net Profit	RMB 328 million	First in the industry	Strongest profit resilience
Gross Profit Margin	29.69%	First in the industry	Excellent cost control
ROE	4.27%	First in the industry	Optimal capital return
Operating Cash Flow	RMB 859 million	Top tier in the industry	Excellent collection capability
Asset-Liability Ratio	36.29%	Low level	Robust financial structure
Cash Reserves	RMB 2.378 billion	First in the industry	Strong risk resistance

• Approximately 7,000 terminal outlets, tied for first place in the industry with Marco Polo
• Deeply engaged in the retail channel for decades, with a nationwide, highly efficient marketing network
• The unique shared warehouse model reduces the inventory pressure on small and medium-sized distributors

• 53 years of history, one of the oldest enterprises in the industry
• High brand recognition, ranked No. 1 in the ceramic tile category on Tmall and JD.com during “Double 11” and “618” for consecutive years
• Ranked first in search volume in the ceramic tile track on Xiaohongshu

• Period expense ratio continues to decline, with sales and management expense ratio down 1.60 percentage points YoY
• Application of digital and AI technologies improves operational efficiency
• Lean operation across the entire value chain promotes cost reduction and efficiency improvement

• Total revenue has declined continuously, down 16.77% YoY in 2024
• Although the ceramic tile business accounts for a high proportion, its growth is sluggish
• Market expansion outside South China has not achieved significant results

• Market share increased from 1.48% to 1.94%, but there is still a gap compared with Marco Polo
• New growth drivers need to be found after the contraction of the engineering channel
• The sanitary ware business (accounting for approximately 13%) is still in the development stage

• Price wars in the architectural ceramic industry continue, and product prices continue to decline
• The low-end market is impacted by small factories, and growth in the high-end market is limited
• Fluctuations in raw material and energy prices affect costs

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Dongpeng Holdings’ ceramic tile business revenue has indeed declined continuously, with a cumulative decline of approximately 25% from 2022 to 2024. However, , and the decline has narrowed to 2.93% in H1 2025, showing signs of stabilization.

The industry competitive landscape is indeed deteriorating, mainly reflected in:

• Overcapacity in the industry has intensified price wars
• Small and medium-sized enterprises are exiting at an accelerated pace, and the industry is undergoing capacity consolidation
• Market share of leading enterprises has increased slightly, and industry concentration is improving slowly

Dongpeng Holdings has demonstrated strong amid the industry downturn:

• Net profit scale ranks first in the industry
• Gross profit margin and ROE lead the industry
• Abundant cash flow and robust financial structure
• Retail channel grew by 5.94% against the trend

• Accelerated industry capacity consolidation, benefiting leading enterprises
• Release of renovation demand for existing properties, with a clear trend of high-endization
• The effect of the company’s channel optimization has emerged, with strong growth in high-value products

• Real estate recovery falls short of expectations
• Fluctuations in raw material and energy prices
• Intensifying industry competition

Considering that the effect of the company’s adjustments in retail channel optimization, store sales improvement, etc. has emerged, its profitability is expected to continue to improve. As one of the industry leaders, Dongpeng Holdings is expected to continue to benefit from the improvement of industry concentration.

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[0] Dongpeng Holdings 2025 Half-Year Report (PDF)
[1] Dongpeng Holdings 2025 Half-Year Report Comment: Ceramic Tile Retail Channel Grows Against the Trend (Soochow Securities)
[2] Dongpeng Holdings Investor Relations Activity Record (August-September 2025)
[3] 2024 National Architectural Ceramic and Sanitary Ware Statistical Data (China Building Sanitary Ceramics Association)
[4] Prospectus of Marco Polo Holdings Co., Ltd.
[5] Initial Coverage Report on Mona Lisa: National Leader in Architectural Ceramics (Debon Securities)
[6] In-Depth Analysis of Financial Strength of Listed Companies in China’s Building Sanitary Ceramics Industry in 2024 (Sina Finance)
[7] Multi-Dimensional Comparison of the Top Five Ceramic Enterprises (Ping An Securities)