Waterproofing materials are essential functional materials required by the construction industry and other related sectors, and form a vital component of the building materials industry. With the rapid development of China's national economy, not only have industrial and residential buildings placed demands for a wide variety of high-quality waterproofing materials, but sectors such as bridges, tunnels, national defence and military industries, agricultural water conservancy, and transport also require high-quality waterproofing and sealing materials. As the range of downstream application sectors expands, China's waterproofing materials industry continues to develop. According to data from the China Building Waterproofing Association, in 2021, the cumulative main business revenue of enterprises above a certain scale in the domestic waterproofing materials industry reached 126.16 billion yuan, representing a year-on-year increase of 16.06%. The market development environment for China's waterproofing membrane industry is favourable.

Waterproofing membranes refer to flexible, rollable building materials used on building walls, roofs, as well as in tunnels, roads, and landfill sites. They serve to resist the infiltration of external rainwater and groundwater, ensuring a watertight connection between the building foundation and the structure itself. As the first line of defence in any building waterproofing project, they play a crucial role in the overall construction. Currently, the waterproofing membrane industry primarily comprises two product categories: bituminous/modified bituminous waterproofing membranes and polymer waterproofing membranes. As market demand grows, the variety of waterproofing membrane products available on the market continues to expand, with an increasing number of product models. It is worth noting that the primary raw materials required for production in the waterproofing membrane industry—such as bitumen, polymer films and polyester reinforcing fabrics—are largely petrochemical products derived from the extraction and processing of crude oil. Consequently, fluctuations in the upstream crude oil market continue to impact the industry's operations.

The upstream raw materials in the building waterproofing materials supply chain include bitumen, modifiers, polyester reinforcing membranes, polyethers and emulsions; downstream applications are primarily in construction projects, encompassing property developers, the home renovation market, construction contractors, water conservancy facilities, transport infrastructure and municipal engineering building refurbishment; the midstream comprises the building waterproofing materials industry, which can be divided into three segments: waterproofing materials, waterproofing installation, and repair and leak-proofing.