Losses, Delisting, Breakthrough: Major Reshuffle of Listed Artificial Board Companies

2025-09-03 Source: China Wood Network News Department

With the disclosure of the semi-annual reports concluded, the "mid-term report card" of the artificial board industry has been officially revealed.

China Wood Network exclusively compiles the performance data of listed artificial board companies over the past three years. In this industry battle concerning survival and development, companies show distinct contrasting "portraits"—some remain steadily at the table, some succumb to market pressure and quietly exit, and some are new forces newly listed; some achieve profit growth against the industry cycle, while others are trapped in continuous performance decline due to market pressure.

Fiberboard Market Cooling, Zhengyuan Co., Ltd. Quietly Delists

In recent years, structural adjustments have occurred in artificial board products, Particleboard with explosive growth in demand from downstream markets such as customized home furnishings and panel furniture. In contrast, fiberboard has faced obvious substitution impacts, with some market share taken by particleboard, causing companies focused on fiberboard to fall into development difficulties.

Take the former artificial board leader in Southwest China—Zhengyuan Co., Ltd. as an example. Since 2001, Zhengyuan has been deeply engaged in the artificial board field, focusing on medium (high) density fiberboard products, and is one of the largest producers of mid-to-high-end fiberboard products in Southwest China.

Affected by shrinking demand in the fiberboard market, Zhengyuan's fiberboard product orders and sales volume have significantly decreased. It lost 193 million yuan in 2022, 125 million yuan in 2023, with sales revenue from artificial board business only 172 million yuan, and a loss of 14.47 million yuan in the first quarter of 2024.

Ultimately, because the stock's closing price was below 1 yuan for 20 consecutive trading days, triggering delisting conditions, Zhengyuan Co., Ltd. quietly delisted from the Shanghai Stock Exchange main board on June 27, 2024.

Particleboard: "Popular but Not Profitable"—Corporate Profits Plummet

2024 is a special time node—according to China Wood Network data, 35 new particleboard production lines were added in 2024, increasing capacity by 15.05 million cubic meters. Such a large-scale capacity release has intensified competition in the particleboard market, forcing many companies into a vicious cycle of internal competition. Many leading companies were not spared, experiencing cliff-like declines in performance and continuous profit squeezes.

ST Jinggu: Performance Losses and Difficulties, Core Assets Seized

As one of the leading forestry enterprises in Yunnan Province, Jinggu Forestry was established in 1999, mainly engaged in artificial board manufacturing and forest chemical products, and was listed on the Shanghai Stock Exchange in August 2000.

In February 2023, to improve its product matrix and enhance competitiveness, ST Jinggu acquired 51% equity of Huiyin Wood for 270 million yuan. Huiyin Wood owns production lines with an annual capacity of 230,000 cubic meters of particleboard and 240,000 cubic meters of medium-high density fiberboard. That year, ST Jinggu's performance was impressive, with revenue of 590 million yuan, of which Huiyin Wood contributed 550 million yuan; net profit attributable to the parent company was 6.32 million yuan, achieving a turnaround from loss to profit.

However, the good times did not last. In 2024, Huiyin Wood suffered a net loss of 32.45 million yuan, and ST Jinggu had an annual loss of 72.87 million yuan. ST Jinggu stated that the surge in particleboard industry capacity but lagging demand, supply-demand imbalance combined with price and volume declines, were the main reasons for Huiyin Wood's losses.

In the first half of 2025, ST Jinggu's performance again fell into a "bleak" situation, with revenue of 123 million yuan, a sharp drop of 45.03%, and a net loss attributable to the parent company of 124 million yuan; to make matters worse, Huiyin Wood was involved in a private lending dispute lawsuit, and its assets were seized and frozen by the court. To alleviate operational pressure, ST Jinggu recently plans to transfer its 51% equity in Huiyin Wood, aiming to reduce burdens and promote long-term healthy development.

Dingfeng Co., Ltd.: Double Decline in Revenue and Profit, Growth Momentum Stalls

As a company focused on the research, production, and sales of particleboard, Dingfeng Co., Ltd. was established in 2013 and listed on the New Third Board in 2020. By the end of 2024, Dingfeng Group had an annual production capacity of 1.5 million cubic meters of particleboard.

Relying on the development dividends of the particleboard industry, Dingfeng Co., Ltd. achieved leapfrog growth from 2021 to 2023: revenue steadily climbed from 615 million yuan and 892 million yuan to 1.173 billion yuan, and net profit surged from 66.32 million yuan to 158 million yuan and 223 million yuan, showing very rapid growth momentum.

However, with the concentrated outbreak of particleboard industry capacity in 2024 and intensified internal competition, Dingfeng's performance sharply declined. Revenue in 2024 was 808 million yuan, a significant drop of 31.11%; net profit sharply fell to 45.67 million yuan, a plunge of 79.53%. In the first half of 2025, the downward trend continued, with revenue of 264 million yuan, down 33.92% year-on-year; net profit was 6.20 million yuan, with the year-on-year decline expanding to 78.69%.

Regarding the performance decline, Dingfeng Co., Ltd. stated that in 2025, industry adjustments further intensified. The rapid growth of particleboard industry capacity led to increased market supply, and adjustments in the real estate industry caused demand reduction. Both sales volume and prices of particleboard declined compared to the same period last year, resulting in revenue decline.

Fenglin Group: Double Decline in Sales Volume and Price, First Mid-Year Loss in 14 Years of Listing

As the first main board listed company in Guangxi's forestry sector, Fenglin Group has not been immune. Currently, Fenglin Group's total production capacity of fiberboard and particleboard reaches 1.8 million cubic meters, making it one of the largest and most advanced integrated forestry and board groups in China.

In 2023, Fenglin Group maintained steady growth, with revenue of 2.34 billion yuan, a year-on-year increase of 14.01%; net profit was 52.28 million yuan, up 15.27%. Fenglin Group has clearly stated that the main source of artificial board profits comes from particleboard business, with customers concentrated in customized furniture, office furniture and fine board manufacturers. Fiberboard customers are mainly flooring companies, door enterprises, and furniture factories.

Starting from 2024, Fenglin Group's performance also "turned downward": revenue in 2024 dropped to 2.02 billion yuan, down 13.7% year-on-year; net profit attributable to the parent company turned from profit to loss, with an annual loss of 120 million yuan. In the first half of 2025, it experienced its first mid-year net loss in 14 years of listing—revenue was 783 million yuan, and net profit attributable to the parent company was a loss of 46.60 million yuan.

Regarding the performance decline, Fenglin Group stated that it was mainly due to the continuous increase in domestic artificial board production capacity, causing an imbalance between production and sales. Under intense market competition, sales volume and prices declined compared to the same period last year; meanwhile, to maintain reasonable inventory, downtime was appropriately increased, resulting in higher downtime losses than the same period last year.

Net profit grows against the trend, exploring diversified breakthrough paths.

In the context of widespread pressure and losses in the artificial board industry, leading companies have still managed to break through difficulties with forward-looking layouts, leveraging diversified paths such as cross-industry customization, deep channel cultivation, and overseas expansion, demonstrating strong resilience amid industry cycle fluctuations.

Tubaobao: Steady growth in customized home furnishings, impressive results in overseas markets.

As a leading enterprise in the domestic panel industry, Tubaobao adheres to the strategic positioning of "focusing on decorative materials business, supplemented by customized home furnishings business," continuously promoting omni-channel expansion and actively exploring international markets. In the first half of 2025, revenue was 3.634 billion yuan, down 7.01% year-on-year; net profit attributable to the parent company was 268 million yuan, up 9.71% year-on-year.

The business segments show a "one down, one up" pattern: on one hand, the decorative materials business achieved revenue of 2.985 billion yuan, down 9.05% year-on-year. Affected by the market environment, core panel product revenue was 1.793 billion yuan, down 16.45% year-on-year. However, through auxiliary material matching strategies, high gross margin edge banding strips , hardware, and other decorative materials sales increased by 9.87% year-on-year, reaching 1.007 billion yuan, effectively offsetting the decline pressure in the panel business.

On the other hand, the customized home furnishings business performed outstandingly, achieving revenue of 621 million yuan, up 4.46% year-on-year. Among them, the whole-house customization business achieved revenue of 309 million yuan, up 3% year-on-year. As of the first half of 2025, Tubaobao's customized home furnishings exclusive stores reached 1,808, with continuous improvement in terminal network coverage.

Omni-channel and globalization layout show remarkable results: in the first half of the year, domestic furniture factory channel business steadily improved; home decoration company channel sales increased by 46.5% year-on-year; 847 township channel merchants were recruited, with 334 completed constructions. In addition, Tubaobao is fully advancing the "brand going global" strategic layout, with overseas market revenue reaching 191 million yuan, up 33.22% year-on-year, becoming a major highlight of performance!

Qian Nian Zhou: Net profit surges 255.75%, high-end customized brand performance soars.

Qian Nian Zhou, also a leading enterprise in the industry, has performed outstandingly since its listing last year. In the first half of 2025, revenue was about 2.003 billion yuan, down 8.02% year-on-year, while net profit was 78.7384 million yuan, a substantial increase of 255.75% year-on-year, highlighting strong profit resilience.

Among them, Qian Nian Zhou's high-end customized brand Baifeilun has emerged strongly, with first-half performance soaring 66.87% year-on-year, becoming a rare bright growth spot in the current market. Baifeilun's explosive growth stems from its deeply integrated systematic competitive barriers built on "brand strength, product strength, delivery strength, and marketing strength."

On one hand, the brand precisely targets the middle-class customer group in the East China metropolitan area, accurately matching high-net-worth demands; on the other hand, it focuses on "boutique products + exquisite design + meticulous service" as core drivers, comprehensively consolidating the brand positioning as the "leader in boutique customization," ultimately successfully breaking through intense market competition and injecting strong growth momentum into Qian Nian Zhou.

The performance fluctuations and fortunes of these listed companies undoubtedly reflect the intensified competition, reshaped landscape, and structural adjustments in the current artificial board industry. There are no eternal winners at the forefront; in the new development cycle of the industry, only enterprises that continuously iterate and proactively evolve can hold their ground and break through against the trend amid market reshuffling!