Dious Shuihua Group Co., Ltd. (002798)

Individual Stock Analysis Report | Industry: Architectural Ceramics, Sanitary Ware and Acrylic New Materials | Report Date: September 13, 2026 | Market and Technical Indicators as of the close on September 11, 2026; 52-week highs/lows and periodic gains/losses use the forward-adjusted (qfq) basis, daily technical indicators are calculated using unadjusted closing prices. Some market data source pages may have refresh delays; actual data should be subject to the Shenzhen Stock Exchange or brokerage terminals.

This report is automatically compiled and generated by AI based on public information, for reference only and does not constitute investment advice.

I. Core Summary

The most decision-relevant characteristic of Dious Shuihua currently is "continued revenue decline, significantly narrowed losses but still no stable profitability in the core business." For the first half of 2026, operating revenue was RMB 953 million, down 18.94% year-on-year; net profit attributable to shareholders was a loss of RMB 29.3301 million, a year-on-year loss reduction of 65.22%, but net profit attributable to shareholders after deducting non-recurring gains and losses was still a loss of RMB 77.2257 million. For the full year 2025, revenue was RMB 2.295 billion, down 16.26% year-on-year, and net profit attributable to shareholders was a loss of RMB 530 million. The company's operating cash flow has continued to be a net inflow, reaching RMB 137 million in the first half of 2026, up 39.57% year-on-year, but cash flow improvement does not equate to a repaired profit model.

The company's core business remains primarily architectural ceramics. In 2025, ceramic wall and floor tile revenue was RMB 1.787 billion, accounting for 77.88% of operating revenue; distribution channel revenue was RMB 1.879 billion, accounting for 81.90%, with the revenue structure tilting toward distribution, retail, full-package renovation and home decoration channels. Manufacturing gross margin has risen from 19.23% in 2024 to 24.27% in 2025, and sales gross margin in the first half of 2026 was approximately 27.25%, mainly driven by channel pricing management, cost savings, lower energy costs and adjustment of inefficient production capacity, but period expenses, asset impairment and historical operating burdens still leave net profit in a loss position.

The company is advancing artificial intelligence and data technology businesses. In 2026, it increased capital by RMB 150 million in its wholly-owned grandchild company Ya'an Yunqing, and is involved in servers, intellectual property and existing business arrangements. However, the related businesses have not yet formed clear revenue or profit contribution, and the company itself has flagged pressures in technology, talent and capital coordination. At this stage, the company's future growth still mainly depends on channel optimization of the building materials core business, product structure upgrading, production capacity and energy cost control, and reduction of receivable risk from engineering clients; the AI business is more of a potential growth direction yet to be validated.

As of September 11, 2026, the stock price closed at RMB 6.68, approximately 23.8% below the 52-week high of RMB 8.77, but approximately 46.5% above the 52-week low of RMB 4.56. The stock price fell below MA5 but remained above MA10 and MA20, and MACD is above the zero line, indicating that the medium-term technical pattern has not completely weakened, but the day's volume-driven decline accompanied by net outflow of main funds of approximately RMB 16.15 million suggests short-term capital divergence has increased somewhat. The company's total market capitalization is approximately RMB 3.92 billion, PB approximately 2x; because it remains in a loss position, PE is temporarily not applicable.

II. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Architectural ceramics: Oushennuo brand, products include tiles, sintered stone, lightweight curtain wall ceramic panels, landscape thick bricks, artificial stone, mosaic, laboratory ceramic countertops and installation auxiliary materials, etc.
• Sanitary ware products: Diwang Sanitary Ware brand, products include bathroom cabinets, ordinary and smart toilets, showers, shower rooms, bathtubs, hardware accessories, and extended to bathroom space design and whole-house customization
• Acrylic new materials: production and sales of acrylic sheets, applied in sanitary ware, home furnishing, advertising signage and decoration, etc.
• Artificial intelligence business: used for production management, supply chain collaboration, AI home design, SKU management, cash position management and marketing enablement, currently has not yet formed mature external commercialization revenue

2.3 Industry Chain Upstream/Downstream Position and Cost-Profit Structure

Dious Shuihua is located in the midstream manufacturing segment of the home building materials industry chain, with business covering R&D, manufacturing, brand operation and channel management of ceramic, sanitary ware and acrylic products. The company owns the Oushennuo and Diwang Sanitary Ware brands, six major production bases, and channels including distribution, engineering, full-package renovation, home decoration and new retail, but it does not possess upstream mineral or energy resource advantages, nor is it a pure downstream enterprise relying on a strong consumer brand to obtain high premiums.

• Architectural ceramics mainly procure mud and sand materials, chemical materials, frit, glaze, and consume electricity, coal, diesel and other energy; the sanitary ware business also involves ceramic blanks, glaze, hardware parts, plastic parts and packaging materials; the acrylic business involves related chemical raw materials.
• In 2025, among manufacturing operating costs, raw material costs were RMB 435 million, accounting for 25.04%; energy and power RMB 262 million, accounting for 15.07%; outsourcing costs RMB 647 million, accounting for 37.29%; labor costs RMB 119 million, accounting for 6.85%; manufacturing expenses RMB 222 million, accounting for 12.81%.
• The company uses outsourcing and OEM methods for some production processes or products, with a relatively high proportion of outsourcing costs; the self-manufactured portion is mainly procured through qualified supplier tendering, and cooperates with major suppliers through annual framework agreements.
• Mud and sand materials, chemical materials, frit, glaze, electricity, coal and diesel have certain commodity attributes; the company lacks full pricing power over upstream costs and is overall more of a cost price taker. The company can control costs through centralized procurement, supplier tendering, capacity optimization, process transformation and energy conservation, but this is not equivalent to having strong upstream bargaining power.
• When raw material and energy prices rise and product prices cannot be raised in tandem, the company's profitability will come under pressure; the outsourcing model also exposes the company to the pricing, delivery capability and quality management of outsourcing manufacturers.
• Downstream customers include distributors and end consumers, real estate developers, government and public institutions, full-package renovation and home decoration customers, new retail channel customers, building materials distributors and engineering project customers.
• In 2025, distribution channel revenue was RMB 1.879 billion, accounting for 81.90% of operating revenue; direct engineering revenue was RMB 415 million, accounting for 18.10%. The distribution channel proportion rose from 75.32% in 2024 to 81.90% in 2025, and the direct engineering proportion fell from 24.68% to 18.10%.
• Within the distribution channel, distributors assume functions such as transportation, warehousing, processing, sales, settlement and after-sales; the company needs to maintain the distribution system through pricing policies, rebates, market support and channel services, and has limited control over terminal prices.
• Real estate developers and large engineering customers in the engineering channel generally have strong bargaining power and may require longer payment terms, higher warranty and larger price concessions. In 2024, the company accepted some real estate developers using properties to offset payments; in 2025 and 2026, property-for-debt arrangements still occurred, and engineering customer credit and collection risk have previously had a notable impact on operations.
• No clear data that can directly confirm the top five customers' sales proportion was found in the company's public annual reports, so customer concentration cannot be quantitatively judged; that data source and year are insufficient for cross-verification, and specifics should be subject to the "Top Five Customers' Sales" section of the company's latest annual report.
• The company is reducing its reliance on the real estate engineering channel and shifting to distribution, retail, full-package renovation and home decoration channels, but changes in channel structure do not mean the company has formed strong downstream pricing power.
• As of December 31, 2024, the company's gross accounts receivable were approximately RMB 1.607 billion, with bad debt provisions of approximately RMB 885 million; 2024 operating revenue was approximately RMB 2.741 billion. Calculated on gross accounts receivable, accounts receivable were approximately 58.6% of full-year operating revenue; calculated roughly on the net book amount after bad debt provisions, approximately RMB 722 million, or approximately 26.3% of operating revenue. In 2025, net operating cash flow was RMB 187 million, up 40.79% from RMB 133 million in 2024; the company stated that major non-monetary current assets such as accounts receivable and inventory declined, and operating activities maintained net cash inflow for four consecutive years. However, the gross accounts receivable and bad debt provisions for 2025 did not obtain comparably clear disclosure basis as 2024, so the 2025 accounts receivable/revenue ratio cannot be directly calculated; cash flow improvement may also be jointly affected by channel structure changes, asset disposals and property-for-debt arrangements.
• Customer concentration: the research notes did not obtain directly confirmable top five customer sales proportions, so no quantitative conclusion can be drawn. That data source is single and could not be cross-verified; specifics should be subject to the company's latest annual report. Supplier concentration: the notes did not disclose quantitative data such as major suppliers' procurement proportions, only that the company manages through qualified supplier tendering, annual framework agreements and supplier reviews, so the level of supplier concentration cannot be judged.

The company is in a midstream home building materials manufacturing position of "brand + design + manufacturing + channel," neither an upstream high-gross-margin enterprise driven by resource endowment, nor a downstream high-gross-margin enterprise relying entirely on strong consumer brand premiums. Further profit improvement mainly depends on structural upgrading of sintered stone, high-end tiles, smart sanitary ware and other high value-added products, an increased proportion of distribution, home decoration, full-package renovation and retail channels, reduced receivable risk from engineering customers, compression of inefficient capacity, energy cost control and expansion of acrylic and new materials businesses; whether the AI business can improve production, inventory, marketing and supply chain efficiency still awaits commercialization validation.

III. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The 2026 semi-annual report disclosure date was August 25, 2026, reporting period ended June 30, 2026, financial report unaudited. In H1 2026, net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of RMB 77.2257 million, a year-on-year loss reduction of 15.20%; net operating cash flow was RMB 136.90 million, up 39.57% year-on-year; basic earnings per share was RMB -0.06. For full year 2025, net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of RMB 543.76 million, a year-on-year loss reduction of 5.63%; net operating cash flow was RMB 187.10 million, up 40.79% year-on-year; basic earnings per share was RMB -1.27.

The company is in a stage of revenue decline and narrowed losses. In H1 2026, operating costs fell 24.71% year-on-year, selling expenses fell 14.85% year-on-year, financial expenses fell 41.72% year-on-year, credit impairment losses turned to a gain of approximately RMB 2.0974 million, and asset disposal gains increased to RMB 10.1248 million, driving the year-on-year narrowing of the net loss attributable to shareholders. However, management expenses increased 48.84% year-on-year to RMB 121.17 million, and net profit attributable to shareholders after deducting non-recurring gains and losses was still a loss of RMB 77.2257 million, with the core business not yet achieving stable profitability. In H1 2026, sales gross margin was approximately 27.25%, sales net margin approximately -3.25%, return on equity approximately -1.58%, and the debt-to-asset ratio was 59.58%.

3.2 Profit Forecast

The profit forecast mainly comes from the Huaxin Securities report dated September 1, 2026, titled "Building Materials Business Continues to Optimize, Awaiting an Inflection Point, AI Business Initially Taking Shape to Build a New Growth Curve." The public summary disclosed net profit attributable to shareholders and EPS forecasts for 2026–2028, but did not disclose corresponding operating revenue forecasts. This forecast is from a single brokerage and is not a multi-institution consensus; the forecast results are strongly dependent on building materials demand recovery, overseas business expansion and AI business commercialization.

3.3 Valuation Level and Institutional Ratings

As of the close on September 10, 2026, the closing price was approximately RMB 6.84/share, total market capitalization approximately RMB 4.019 billion, total share capital approximately 587.5 million shares, PB approximately 2.05x, PS approximately 1.75x to 1.94x, dividend yield 0%. Because the company's full-year 2025 and H1 2026 net profit attributable to shareholders were both losses, PE valuation is temporarily not applicable, and the loss or negative PE shown by market software cannot be regarded as a low-valuation signal. PB of approximately 2.05x needs to be judged together with asset quality, future impairment risk and profit recovery; PS can only be used as a supplementary indicator. Huaxin Securities forecasts that 2026 will still be a loss, and 2027 and 2028 will be profitable by approximately RMB 20 million and RMB 66 million respectively, with corresponding PE of approximately 170x and 52x in the report, but that calculation is based on the share price at the time of the report's release and cannot be directly equated to real-time valuation at the September 10, 2026 closing price. The company's current valuation mainly relies on the traditional building materials business continuing to narrow losses, achieving a thin profit in 2027 and gradual commercialization of the AI business, and is not yet a value valuation based on verified profitability.

IV. Recent News and Announcements

4.1 Participation in the Investor Online Collective Reception Day and Semi-Annual Report Results Briefing

The company disclosed an announcement on September 8, 2026, that it plans to participate in the Sichuan region's 2026 investor online collective reception day and semi-annual report results briefing. This matter is an investor relations activity arrangement and does not involve new matters such as performance forecast adjustments, major asset restructuring, share repurchases or shareholder increases/decreases.

4.2 2026 Semi-Annual Report: Revenue Decline, Narrowed Losses, Improved Cash Flow

The company disclosed its 2026 semi-annual report on August 25, 2026. H1 operating revenue was approximately RMB 953 million, down 18.94% year-on-year; net profit attributable to shareholders of the listed company was a loss of RMB 29.3301 million, a year-on-year loss reduction of 65.22%; net profit after deducting non-recurring gains and losses was a loss of approximately RMB 77.2257 million; net operating cash flow was approximately RMB 137 million, up 39.57% year-on-year. The company has not yet achieved overall profitability.

4.3 2026 Semi-Annual Earnings Forecast

The company disclosed the "2026 Semi-Annual Earnings Forecast" (Announcement No.: 2026-072) on July 15, 2026, expecting net profit attributable to shareholders of the listed company for January–June 2026 to be a loss of RMB 23 million to RMB 35 million, a year-on-year loss reduction of 58.49% to 72.72%; net profit after deducting non-recurring gains and losses to be a loss of RMB 63 million to RMB 78 million, a year-on-year loss reduction of 14.35% to 30.82%; and operating revenue to be RMB 920 million to RMB 980 million. This forecast is a preliminary estimate by the finance department and has not been audited by an accounting firm.

4.4 Increase in Shareholding by Concert Party of the Actual Controller

The company disclosed an announcement on July 22, 2026. Chengdu Shuihua Intelligent Technology Group Co., Ltd., a concert party of one of the actual controllers, Zhu Jiang, increased its aggregate shareholding in the company by 2,048,400 shares through centralized bidding from July 20 to July 21, 2026, accounting for approximately 0.35% of the company's current total share capital. After the increase, the actual controller and its concert parties collectively held 142,742,535 shares of the company, accounting for 24.30% of the company's current total share capital. Changes in shareholding proportions were also affected by changes in total share capital due to conversion of the "Dious Convertible Bond."

4.5 Shareholder Bao Jiejun Reduced Shareholding

An announcement dated May 7, 2026 showed that shareholder Bao Jiejun reduced 621,300 shares of the company through centralized bidding during April 16 to April 30, 2026. Due to the reduction and the increase in total share capital caused by convertible bond conversion, his combined shareholding with concert party Chen Jiawang changed from 6.98% to 5.95%. As of September 11, 2026, the research notes did not find announcements of further reductions by him during July–September 2026.

4.6 Guarantee Provision Progress and Guarantee Risk Warning

The company disclosed the "Announcement on Guarantee Provision Progress" (Announcement No.: 2026-078) on August 21, 2026. The company and its subsidiary Oushennuo separately signed maximum-amount guarantee contracts with Bank of China Wuzhou Branch, jointly providing a guarantee of up to RMB 80 million in principal for Guangxi Oushennuo; Oushennuo also signed a maximum-amount guarantee contract with Bank of Liuzhou Wuzhou Branch, providing a guarantee of up to RMB 7.5 million in principal for Guangxi Oushennuo. As of the announcement disclosure date, the company and its subsidiaries had external guarantee balances of RMB 1,046,005,300, accounting for 62.77% of the latest audited net assets; among these, guarantees for entities within the consolidated statements had a balance of RMB 1,032,835,300, accounting for 61.98% of net assets, and guarantees for entities outside the consolidated statements had a balance of RMB 13,170,000, accounting for 0.79% of net assets. The company and its subsidiaries have no overdue guarantees, nor have they provided guarantees for shareholders, actual controllers and their related parties. The total external guarantee limit for 2026 is no more than RMB 3,000,500,000, and the total external guarantee limit exceeds 100% of the latest audited net assets.

4.7 Guarantee Limit for Distributors Approved by Shareholders' Meeting

The company disclosed the relevant proposal on July 16, 2026, planning for the company and its wholly-owned subsidiary Oushennuo to provide joint and several liability guarantees for cooperative distributors' bank loans, with a total guarantee limit of no more than RMB 80 million, and requiring distributors to provide counter-guarantee measures. The proposal was approved at the 2026 Third Extraordinary Shareholders' Meeting held on July 31, 2026.

4.8 Capital Increase of RMB 150 Million in Ya'an Yunqing Data Technology Co., Ltd.

The company disclosed an announcement on July 7, 2026, planning to increase capital by RMB 150 million in its wholly-owned grandchild company Ya'an Yunqing Data Technology Co., Ltd. through its wholly-owned subsidiary Shuihua Future (Sichuan) Technology Co., Ltd. using its own funds. After completion of the capital increase, Ya'an Yunqing's registered capital increased from RMB 50 million to RMB 200 million, and the company still holds 100% equity through the subsidiary. On July 14, 2026, the company disclosed that Ya'an Yunqing had completed industrial and commercial change registration. The related business involves artificial intelligence, data technology and other directions, and is not directly related to the company's original sanitary ware, architectural ceramics and acrylic businesses; the company warned of risks such as limited related talent and technology reserves and increased capital coordination pressure. As of September 11, 2026, no public disclosure has been seen of this new business forming clear revenue or profit contribution.

4.9 Asset and Business Arrangements Related to Shansi Kaiwu

Public restructuring information shows that in June 2026 the company disclosed asset and business arrangements between Shuihua Future and entities related to Shansi Kaiwu Technology, involving electromechanical facilities, server assets and related intellectual property and existing businesses. Among these, the transaction amount for electromechanical facilities and server assets was approximately RMB 44.1673 million, and the disclosed amount for intellectual property and existing businesses was RMB 0. This matter, together with the capital increase in Ya'an Yunqing, constitutes a clue to the company's capital operations expanding toward data technology and artificial intelligence.

4.10 Share Repurchase Plan Completed

The company disclosed the "Announcement on Share Repurchase Progress and Completion" on January 6, 2026. The previous repurchase plan had a lower limit of 8.5 million shares and an upper limit of 16.7 million shares, with the repurchase price ceiling adjusted to RMB 8.40/share, and a total repurchase fund ceiling of approximately RMB 140.28 million, with all repurchased shares used to convert convertible corporate bonds issued by the company. As of January 6, 2026, the repurchase plan had been completed. As of September 11, 2026, no announcement of the company launching a new round of share repurchases or disclosing new repurchase progress has been found.

4.11 Termination of the 2025 Private Placement of Shares to Specific Targets

The company disclosed the "Announcement on Termination of the 2025 Private Placement of Shares to Specific Targets" (Announcement No.: 2026-028) on April 22, 2026. The company had previously received an acceptance notice from the Shenzhen Stock Exchange in February 2026 and received a review inquiry letter in March 2026; after comprehensively considering the company's actual situation and communicating with relevant intermediaries, the company decided to terminate the private placement of shares to specific targets and applied to the Shenzhen Stock Exchange to withdraw the relevant application documents.

4.12 Regulatory Information: No New Major Penalties or Investigations Found

As of September 11, 2026, based on company announcements, Shenzhen Stock Exchange regulatory information and public search results, no new major administrative penalties, formal investigations, exchange disciplinary actions or major regulatory inquiry announcements during July–September 2026 were found. This conclusion only represents public information search results as of September 11, 2026, and does not mean new regulatory matters will not arise in the future. The company has recently continued to warn of the relatively large guarantee scale and risks faced by new businesses such as artificial intelligence and data technology, including industry competition, technology reserves, talent reserves and policy changes.

V. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, the stock price is at a relatively high position in the past year's price range, still approximately 23.8% away from the 52-week high. In terms of moving averages, the stock price fell below MA5 but still stands above MA10 and MA20, with MA5, MA10 and MA20 maintaining a bullish alignment, indicating that the medium-to-short-term trend has not completely broken down, but there has been a short-term pullback after a rally. MACD remains above the zero line, RSI is in the neutral-to-strong range, and the technical picture has not yet shown obvious overbought or oversold signals. In terms of volume and price, September 11 turnover was approximately RMB 95 million, at a normal-to-high level recently, but accompanied by a stock price decline and net outflow of main funds, short-term capital sentiment shifted from previously positive to increased divergence. Going forward, focus on the RMB 6.53–6.62 support area, MA20 support near RMB 6.20, and the volume-price coordination in the RMB 7.05–7.13 resistance area.

5.3 Short-Term Outlook (Next Week, Scenario Analysis, For Reference Only)

⚠️ Risk Warning: The following content is only a subjective scenario analysis based on closing data as of September 11, 2026, does not constitute investment advice, and is not a deterministic forecast of future stock prices.

① Key Technical Levels

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Oscillating consolidation (relatively high subjective heuristic weight, approximately 50%–60%; this weight is a subjective judgment based on current technical indicators and capital flows, not a statistical probability): reference range RMB 6.50–7.05. Trigger conditions include the stock price holding near RMB 6.53, MA10 of approximately RMB 6.62 not being continuously breached, turnover maintaining in the recent normal range of approximately RMB 60–120 million, and main funds no longer continuously showing tens-of-millions-level net outflows. The current stock price is still above MA20 and MACD is above the zero line, but it has fallen below MA5 and September 11 saw a volume-driven decline, so it is more likely to show post-rally turnover and range-bound oscillation.
• Weaker downside (moderate subjective heuristic weight, approximately 20%–30%; this weight is a subjective judgment based on current technical indicators and capital flows, not a statistical probability): reference range RMB 6.15–6.53, and in a weak case it may seek support at RMB 5.50–5.73. Trigger conditions include the closing price continuously falling below RMB 6.53, then further breaking below MA10 and MA20 near RMB 6.20, turnover during the decline continuously above the recent average and reaching approximately RMB 100 million or more, while main funds continuously see net outflows and the home furnishings and light manufacturing sectors weaken in tandem. If it breaks below RMB 6.15–6.20, short-term moving average support may fail, and the price may retest the previous consolidation platform and the area below the Bollinger Bands.
• Rally and strengthening (low-to-moderate subjective heuristic weight, approximately 20%; this weight is a subjective judgment based on current technical indicators and capital flows, not a statistical probability): reference range RMB 6.85–7.13, and in a strong case an attempt to break above RMB 7.13. Trigger conditions include the stock price regaining MA5 of approximately RMB 6.84, breaking above the recent high range of RMB 6.93–7.05 with volume, single-day turnover clearly above the recent average and reaching approximately RMB 130 million or more, main funds turning back to relatively large-scale net inflows, and related sectors or market risk appetite improving in tandem. If there is an effective volume-driven breakout at RMB 7.05–7.13, the technical pattern may strengthen again; if a low-volume rally reaches this area but cannot break through, watch for a rally and fallback.

③ Capital and Liquidity Background

As of September 11, 2026, the day's turnover rate was approximately 2.77%, and turnover was approximately RMB 95.46 million; over the past 10 trading days, turnover was approximately RMB 42 million to RMB 148 million, averaging approximately RMB 92 million, and over the past 5 trading days averaging approximately RMB 94 million. On that day, main funds saw a net outflow of approximately RMB 16.15 million, and over the past 10 trading days a cumulative net inflow of approximately RMB 32.81 million. Shareholder structure data as of June 30, 2026 showed approximately 20,300 shareholders, up 8.89% from March 31, 2026; the top ten shareholders disclosed a combined shareholding proportion of approximately 38.20%. Among the top ten shareholders, Sichuan Capital Market Relief and Development Fund held 5.84%, and the rest were mainly natural persons, corporate legal persons or shareholders related to the actual controller and concert parties; as of June 30, 2026, the Hithink page showed 25 major institutions disclosing holdings, totaling approximately 61.1756 million shares, approximately 11.84% of free-float A shares, but this cannot be used to judge that they did not adjust positions during the September market. The company's repurchase special securities account and employee stock ownership plan accounted for approximately 2.89% and 2.49% respectively, and should not be simply equated with active position-building by external institutions. The above shareholder count, top ten shareholders and institutional holdings data are approximately two and a half months apart from the latest market data, and during this period there may have been increases/decreases in holdings, convertible bond conversions, changes in the repurchase account or other changes in equity structure, so they are only lagging background reference. Overall, the company's total market capitalization is relatively small, with average daily turnover of approximately RMB 100 million; it has some liquidity but is not a particularly active large-cap stock; when turnover clearly declines, bid-ask depth may weaken, and price sensitivity to a single capital flow will increase; when turnover expands but the stock price falls, watch for capital realization or chip exchange.

A checkable volume confirmation signal is: if subsequent single-day turnover continuously expands to approximately RMB 130 million or more, while the stock price closes above RMB 6.93–7.05 and main funds simultaneously turn to net inflows, this can be seen as an observation signal that short-term capital reconfirms an uptrend; if volume expands but the stock price still falls below RMB 6.53, it is more likely capital divergence or selling pressure release, rather than an effective breakout signal.

④ Points to Watch (Observation Ideas Only, Not Operational Instructions)

• Watch whether the RMB 6.53–6.62 area can form short-term support, and whether MA20 near RMB 6.20 is effectively breached.
• Watch whether the RMB 7.05–7.13 resistance area can be effectively broken through with expanded turnover.
• Watch whether turnover continuously reaches approximately RMB 130 million or more, synchronized with price gains and net inflows of main funds.
• Watch whether the September 11 net outflow of main funds evolves into continuous outflows. All of the above are observation ideas, not operational instructions.

The above scenario analysis is based on September 11, 2026 closing data and historical prices and technical indicator calculations; short-term stock prices will also be disturbed by multiple factors such as news, capital flows and the broader market environment; technical indicators themselves have lag and limitations, do not constitute a guarantee of actual future trends, and do not constitute buy or sell recommendations. Please make independent judgments in light of the latest market information and bear investment risks yourself.

VI. Industry Landscape and Competitor Analysis

6.1 Industry Status

The architectural ceramics and sanitary ware industries are fully competitive industries with a large number of enterprises, and the market shows characteristics of a "large market, small enterprises." Industry competition has shifted from pure price competition to comprehensive competition in brand, marketing, talent, service, scale, product design and supply chain efficiency. Architectural ceramics demand is affected by real estate new construction, completion, old housing renovation, urban renewal and home decoration consumption; when real estate development investment declines, the engineering channel is usually hit first.

6.2 Competitive Landscape

• Distribution, home decoration, full-package renovation and old housing renovation have become key areas of competition among industry enterprises; leading brands enhance concentration through advantages in channels, design, supply chain and scale.
• Energy consumption, environmental protection and carbon emission constraints push outdated capacity to exit; energy costs and capacity utilization have a relatively large impact on manufacturing gross margin.
• The industry still has a large number of regional enterprises; although concentration is rising, the process is relatively slow.
• Public industry materials regard Marco Polo, Dongpeng Holdings, Monalisa, Dious Home/Dious Shuihua, New Pearl, etc. as leading or first-tier architectural ceramics enterprises, but the combined market share of the first four listed or large enterprises in architectural ceramics output is still less than 10%. This market share data is mainly based on industry research and enterprise filing materials, and the statistical basis may include self-produced output, national ceramic tile output or data from different years, and cannot be fully equated with authoritative official statistics or directly compared horizontally.

6.3 Main Competitors

Dious Shuihua competes with Dongpeng Holdings, Monalisa, Marco Polo and other enterprises in architectural ceramics, brand, distribution and engineering channels, and competes with Huida Sanitary Ware and Arrow Home in sanitary ware products and retail channels. The company's differentiation is that it simultaneously covers architectural ceramics, sanitary ware and acrylic new materials, and has dual brands Oushennuo and Diwang Sanitary Ware, multi-base manufacturing and a multi-channel system; but compared with larger industry enterprises, the company still faces pressure in revenue scale, profitability and capital liabilities. Overall, the company's brand and channel capabilities are better than ordinary regional ceramic enterprises, but upstream cost pricing power and downstream engineering customer bargaining power are limited, and profit improvement depends more on product structure upgrading, channel optimization, production capacity and energy cost control, rather than resource endowment or strong pricing power.

VII. Risk Warnings

• Risk of core business revenue and profit recovery falling short of expectations: H1 2026 revenue fell 18.94% year-on-year, and net profit attributable to shareholders after deducting non-recurring gains and losses was still a loss of RMB 77.2257 million; even if gross margin improves, the company may still be unable to achieve stable profitability due to continued revenue decline, relatively high period expenses and historical operating burdens.
• Real estate and engineering customer collection risk: the company has previously had real estate developers use properties to offset payments, and property-for-debt arrangements still occurred in 2025 and 2026; engineering customers generally have strong bargaining power and may require longer payment terms, and related accounts receivable collection, credit impairment and asset disposal may continue to affect profit and cash flow.
• Relatively large guarantee scale risk: as of the August 2026 announcement disclosure date, the company and its subsidiaries had external guarantee balances of RMB 1.046 billion, accounting for 62.77% of the latest audited net assets; the 2026 external guarantee limit ceiling exceeds 100% of the latest audited net assets; if the operating or debt-servicing ability of guaranteed entities deteriorates, the company may bear compensation liability.
• Distribution channel and downstream bargaining risk: in 2025, distribution channel revenue proportion rose to 81.90%, and the company needs to maintain the distribution system through pricing policies, rebates, market support and channel services, with limited control over terminal prices; the distributor loan guarantee limit of no more than RMB 80 million may also increase channel credit management pressure.
• Upstream cost and outsourcing management risk: in 2025 manufacturing costs, outsourcing costs accounted for 37.29% and energy and power costs accounted for 15.07%; if raw material and energy prices rise or outsourcing manufacturers see higher quotes, delivery delays and quality problems, gross margin may be compressed and production stability affected.
• Uncertain return on AI and data technology business investment risk: the company increased capital by RMB 150 million in Ya'an Yunqing, and the related business has low relevance to the original building materials, sanitary ware and acrylic businesses, and has not yet formed clear revenue or profit contribution; the company has warned of insufficient technology and talent reserves and capital coordination pressure, and there is a risk that subsequent investment cannot be converted into commercialized returns in a timely manner.
• Asset quality and impairment risk: in 2024, the company's gross accounts receivable were approximately RMB 1.607 billion and bad debt provisions approximately RMB 885 million; historical credit impairment and asset impairment had a relatively large impact on net profit; fully comparable accounts receivable data on the same basis for 2025 and H1 2026 is still lacking, and if customer credit conditions deteriorate in the future, new impairment may still occur.
• Stock price volatility and insufficient valuation support risk: the company is currently still at a loss, PE valuation is not applicable, and PB of approximately 2x mainly depends on asset quality and future profit recovery for judgment; as of September 11, 2026, the stock price fell below MA5, and on that day there was a volume-driven decline and net outflow of main funds; if it breaks below RMB 6.53 and support near RMB 6.20, short-term volatility pressure may increase.

VIII. Conclusion and Outlook

Some signs of operating improvement have appeared: building materials business gross margin has improved, operating costs, selling expenses and financial expenses have declined, operating cash flow has continued to improve, and H1 2026 net loss attributable to shareholders narrowed year-on-year. However, the revenue side is still contracting, profit after deducting non-recurring gains and losses continues to be negative, and management expenses rose 48.84% year-on-year, indicating that the current loss reduction still relies relatively heavily on cost control, impairment and asset disposal, and it cannot yet be confirmed that the core business has entered a stable profit stage.

Looking ahead, the core of profit recovery lies in whether distribution, home decoration, full-package renovation and retail channels can continue to expand, whether high value-added products such as high-end tiles, sintered stone, smart sanitary ware and acrylic can improve the product structure, and at the same time reduce engineering customer collection and credit impairment pressure. A single brokerage forecast expects the company to remain at a loss in 2026, achieve a profit of approximately RMB 20 million in 2027 and a profit of approximately RMB 66 million in 2028, but this forecast depends on building materials demand recovery, overseas business expansion and AI commercialization, and is not a multi-institution consensus, so it should be observed prudently.

On the technical side, RMB 6.53–6.62 is a short-term support reference, near RMB 6.20 is a relatively important medium-term support, and RMB 7.05–7.13 is the upper resistance area. Future trends need to be observed in conjunction with turnover, main funds and price breakout conditions; technical indicators can only reflect phased trading characteristics and cannot replace judgment on the company's profit, cash flow and guarantee risks.

Data Sources

• Dious Shuihua Group Co., Ltd. 2025 Third Quarter Report | Shanghai Securities News
• Dious Shuihua Group Co., Ltd. 2025 Annual Report Summary
• https://pdf.dfcfw.com/pdf/H2_AN202604281821698973_1.pdf
• https://www.monarch-sw.com/upload/zyycms/20250504/6d16160e60da0a62d72440c72be9c5d2.pdf
• Dious Shuihua (002798)_Company Announcements_Dious Shuihua: 2025 Annual Report Sina Finance_Sina
• Dious Shuihua (002798)_Company Announcements_Dious Home: 2024 Annual Report Summary Sina Finance_Sina
• Dious Shuihua (002798)_Company Announcements_Dious Home: 2024 Annual Report Sina Finance_Sina
• Dious Shuihua (002798)_Company Announcements_Dious Shuihua: 2025 Annual Report Summary Sina Finance_Sina
• Dious Home Group Co., Ltd. 2022 Annual Report Full Text
• Dious Shuihua (002798)_Company Announcements_Dious Home: 2023 Annual Report Sina Finance_Sina
• Dious Shuihua (002798)_Company Announcements_Dious Home: 2024 Annual Report Sina Finance_Sina
• Marco Polo Holdings Co., Ltd.
• [2021 China Ceramic Tile Output and Key Enterprise Comparative Analysis: Dious Home vs Monalisa vs Dongpeng Holdings [Chart]_Zhiyan Consulting](https://www.chyxx.com/industry/1101741.html?utm_source=openai)
• [Advantages

▪ The company's "Monalisa" brand is one of the leading first-tier brands in the architectural ceramics industry, with sales channels throughout the country, and since 2022 distribution](https://static.cninfo.com.cn/finalpage/2023-05-27/1216922007.PDF?utm_source=openai)

• 2026-2032 China Ceramic Tile Industry Market Status and Development Prospects Analysis Report_Zhiyan Consulting
• Dious Shuihua (002798)_Company Announcements_Dious Shuihua: 2026 Semi-Annual Report Summary Sina Finance_Sina
• Dious Shuihua (002798)_Company Announcements_Dious Shuihua: 2026 Semi-Annual Report Sina Finance_Sina
• Dious Shuihua (002798)_Company Announcements_Dious Shuihua: 2026 Semi-Annual Report Sina Finance_Sina
• Company Event Review Report: Building Materials Business Continues to Optimize, Awaiting an Inflection Point, AI Business Initially Taking Shape to Build a New Growth Curve - Macro Research Report _ Data Center _ East Money
• Dious Shuihua (002798)_Company Announcements_Dious Shuihua: 2025 Annual Report Sina Finance_Sina
• Securities Code: 002798 Securities Abbreviation: Dious Shuihua Announcement No.: 2026-072
• Institution First Coverage - Research Reports - Stock Channel - Stockstar
• 「Dious Shuihua」002798.SZ - Dious Shuihua Group Co., Ltd. - Shenzhen Stock Exchange Main Board - A-share - Pre-listing
• [B619

Information Disclosure

Disclosure

Wednesday, April 29, 2026

[email protected] (](https://epaper.stcn.com/att/202604/29/ZQ29B619-HJ_eBook.pdf?utm_source=openai)

• Dious Shuihua Group Co., Ltd. Announcement on Participation in the Sichuan Region 2026 Investor Online Collective Reception Day and Semi-Annual Report Results Briefing Activity_Sina Finance_Sina
• Securities Code: 002798 Securities Abbreviation: Dious Shuihua Announcement No.: 2026-076
• Securities Code: 002798 Securities Abbreviation: Dious Shuihua Announcement No.: 2026-050
• Securities Code: 002798 Securities Abbreviation: Dious Shuihua Announcement No.: 2026-002
• China Securities Journal - Dious Shuihua Group Co., Ltd. Announcement on Guarantee Provision Progress
• Dious Shuihua (002798)_Company Announcements_Dious Shuihua: Announcement on Capital Increase in Wholly-Owned Grandchild Company Sina Finance_Sina
• Dious Shuihua (002798) M&A and Restructuring_Stockstar
• Securities Code: 002798 Securities Abbreviation: Dious Shuihua Announcement No.: 2026-028
• Shenzhen Stock Exchange-Regulatory Dynamics
• Dious Shuihua Group Co., Ltd. 2026 Semi-Annual Report Full Text
• Dious Shuihua (002798.SZ) Stock Quotes_Historical Data_Main Funds - Dalang Data
• Dious Shuihua (002798) Individual Stock Analysis_Niucha Stock Diagnosis_Hithink Finance

This report is automatically retrieved, compiled and generated by AI based on public channel information, with information as of market and technical indicators as of the close on September 11, 2026; 52-week highs/lows and periodic gains/losses use the forward-adjusted (qfq) basis, daily technical indicators are calculated using unadjusted closing prices. Some market data source pages may have refresh delays; actual data should be subject to the Shenzhen Stock Exchange or brokerage terminals., and there may be timeliness differences; specific data please refer to the company's formal announcements and authoritative data terminals. This report is for information compilation and research reference only, does not constitute any investment advice, and investors should make independent judgments and bear investment risks themselves.