Huida Sanitary, one of China’s top listed sanitary ware enterprises, released its half-year performance forecast and strategic adjustment announcement recently. The group expects a net loss ranging from 72 million RMB to 90 million RMB in the first half of 2026, affected by weak downstream real estate demand, continuously rising raw material prices and fierce industry competition.

To optimize capital allocation and focus on core bathroom business, the company transferred all equity of its rock slab subsidiary at a symbolic price of 1 RMB and disposed of related creditor’s rights. This marks the official withdrawal from the rock slab sector. The management explained that diversified non-core businesses consumed operational resources amid the overall industry downturn.

Copper price volatility and stricter energy consumption control for ceramic kilns keep squeezing manufacturing profits. The enterprise will concentrate resources on smart sanitary ware, whole-bath customization and engineering channel expansion. Similar strategic adjustments are seen among multiple domestic bathroom manufacturers. Market analysts commented that the sanitary ware industry has entered a long-term stock competition era. Enterprises must concentrate on main businesses, improve product added value and explore renovation demand to achieve stable growth instead of blind cross-industry expansion.