This enterprise returned the land, and the reason behind it is too real.

Amid the deep restructuring of the real estate industry, upstream and downstream companies in the supply chain are accelerating resource optimization.

Recently, leading building hardware company Jianlang Hardware (002791.SZ) announced the termination of a three-year fundraising project, returning the undeveloped Zhongshan G05-2023-0202 land plot to the Natural Resources Bureau. This has drawn market attention to industry transformation and corporate strategic adjustments.

According to the announcement, the project dates back to April 2023. Jianlang Hardware planned to invest 1.03 billion yuan to build the Zhongshan Digital Intelligent Industrial Park, acquiring related land parcels through its wholly owned subsidiary Zhongshan Technology in two batches. The land parcel G05-2023-0202, which is being returned, was sold for 35.7643 million yuan. Due to changes in the industry environment, the company decided to terminate the project in June 2025 and reallocate the funds to other areas. The land return is part of subsequent implementation steps.

As agreed, the Zhongshan Natural Resources Bureau will deduct 7.1529 million yuan and return the remaining 28.6114 million yuan without interest by June 30, 2027.

Jianlang Hardware stated that the company has already recognized relevant impairment provisions in 2025. This matter will not significantly impact the financial situation in 2026 and beyond. The decision was made prudently after considering market conditions, project needs, and cash flow, aiming to improve the efficiency of fund utilization. The sponsor, China Merchants Securities, has issued an unqualified verification opinion confirming the process compliance.

As a leading enterprise in integrated building components supply in China, Jianlang Hardware has focused on a full-chain model of “R&D + manufacturing + service” since its inception. Its business covers over 40 categories, including door and window hardware systems, curtain wall accessories, and smart home products, serving B-end clients in more than 100 countries and regions worldwide.

However, under the dual impact of deep industry adjustment and intensified market competition, Jianlang Hardware’s operational concerns continue to surface.

The 2025 annual performance forecast disclosed in January 2026 shows that the company’s net profit attributable to shareholders is expected to lose between 70 million and 95 million yuan, with non-recurring profit and loss estimated to be a loss of 95 million to 115 million yuan. This marks the company’s first annual loss since listing. Coupled with issues like a single business structure and increased competition, the company’s development faces a temporary bottleneck.

Jianlang Hardware’s performance has been declining for two consecutive years, with an accelerated downward trend in 2025. Financial data shows that in 2024, the company’s net profit attributable to shareholders dropped 72.23% year-on-year to 89.9892 million yuan, and in 2025, it turned directly into a loss, with revenue expected to decrease by about 15% year-on-year.

Quarterly data indicates that from Q1 to Q3 2025, net profits attributable to shareholders were -40.6143 million yuan, -30.4322 million yuan, and a profit of 16.5603 million yuan, respectively. Although there was some recovery in Q3, the full-year loss was already confirmed.

The deterioration of profitability indicators is even more pronounced. In 2024, the gross profit margin was 31.65%, but by the first three quarters of 2025, it had fallen to 30.28%. Net profit margin further declined to 0.19%, approaching break-even.

The performance forecast clearly states that shrinking domestic real estate demand led to a decline in project channel revenue. Meanwhile, the development of new products and new scene businesses lagged, and overseas operations, which still account for a relatively low proportion, could not offset the domestic market downturn, becoming the core reason for losses. Additionally, the company has recognized impairment provisions for inventories and accounts receivable, further increasing profit pressure.

Facing domestic market pressures, Jianlang Hardware is accelerating its internationalization strategy, with overseas business becoming a key growth driver. In the first half of 2025, overseas revenue reached 477 million yuan, a 30.75% year-on-year increase, accounting for 17.32% of total revenue. The Middle East and European markets grew by over 40%, while Africa and Mexico approached an 80% increase.

The company has established localized subsidiaries in India, Vietnam, and Mexico, connecting to unified information systems to achieve efficient overseas operations. The gross profit margin in overseas markets is 5-8 percentage points higher than in China, effectively hedging against cyclical risks in a single market.

For Jianlang Hardware, the termination of the Zhongshan fundraising project is not passive contraction but a strategic choice during industry adjustment—“deprioritize less effective investments and focus on growth.” It aims to avoid ineffective spending and reserve capital for overseas expansion and emerging business development.

Looking ahead, whether overseas markets can continue to expand, whether new businesses can break through scale bottlenecks, and whether domestic policies can be seized as opportunities will be key factors influencing the company’s performance rebound.