China Lesso Announces 2025 Interim Results

Adhere to its original mission, focus on the core piping business and,

consolidate its business foundation and competitiveness

(29 August 2025 - Hong Kong) China Lesso Group Holdings Limited (“China Lesso” or the “Group”, SEHK stock code: 2128), a leading large-scale industrial group that manufactures piping and building materials in China, announced its interim results for the six months ended 30 June 2025 (the “Year”).

In the first half of 2025, China Lesso, leveraged on its strong resilience and flexible strategic adjustments, maintained stable business operations, fully demonstrating the Group’s operational resilience, corporate flexibility and core competitiveness. The Group invested resources in its core piping industry, focused on market penetration, strengthened product quality, and actively expanded market presence, further consolidating its business foundation and maintaining reasonable profitability and sustainable development.

During the reporting period, the Group recorded revenue of RMB12,475 million (1H 2024: RMB13,564 million). Gross profit was RMB3,514 million (1H 2024: RMB3,728 million) and gross profit margin slightly increased to 28.2% (1H 2024: 27.5%) mainly due to the Group’s production facilities implemented automation, proactively and strictly controlled costs, and improved production efficiency, leading to the effective implementation of the overall cost control strategy.

The Group’s EBITDA amounted to RMB2,467 million (1H 2024: RMB2,644 million), and the EBITDA margin was 19.8% (1H 2024: 19.5%). Net profit margin remained at 7.5% (1H 2024: 7.5%). Amidst the current industry consolidation and market challenges, the management adhered to its original mission, focusing on the core piping business, consolidating its business foundation and competitiveness, and bravely overcoming difficulties to maintain reasonable profitability and its leading position in the industry. Profit attributable to owners of the Company was RMB1,046 million (1H 2024: RMB1,043 million). Basic earnings per share were RMB0.34 (1H 2024: RMB0.34). The decline in profit was primarily due to the industry being in an adjustment cycle and the Group’s adoption of cost plus pricing method, leading to a decrease in overall revenue and gross profit, increase in an initial operating and development expenses related to overseas markets, and set-off with reduced financing costs resulting from optimized debt structure and partial debt repayment, during the period.

However, sales and operations in the second quarter of 2025 showed significant improvement, particularly in May and June. This reflected the Group’s flexible strategic optimisation and response, and benefits from the implementation of policies and signs of industry recovery, which boosted overall demand for piping products. The Group is confident in the industry’s recovery in the second half of 2025.

Mr. Wong Luen Hei, China Lesso Chairman and Executive Director said, ‘‘Looking ahead to the second half of 2025, despite continued uncertainties in the global business environment, China’s economy remains resilient and potential remains vast. Favorable factors such as fixed-asset investments, urban and rural infrastructure construction, and the release of domestic demand will dominate and support overall economic operations. China Lesso will assess the situation with a disciplined approach, continue to implement a steady growth strategy to mitigate the impact of operation environment and industry cycles on its business development, leverage its core strength of smart manufacturing to drive product innovation and upgrades, enhance brand influence and market penetration, further expand its revenue base and improve profitability, and continuously create long-term value for shareholders.’’

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About China Lesso Group Holdings Limited

China Lesso Group Holdings Limited (Stock Code of Hong Kong Stock Exchange: 2128) is a leading large-scale industrial group that manufactures piping and building materials in China. After more than 38 years of rapid development, the Group has evolved into a leader in the industry of building materials and home improvement. It provides high-quality products and services such as plastic piping, building materials and home improvement, new energy, environmental protection, and operates a supply chain service platform.

Currently, the Group has established over 30 advanced production bases in 19 provinces of China and in foreign countries. The Group has established a nationwide sales network and has developed long-term strategic partnerships with 3,061 independent and exclusive first-tier distributors that enable timely and efficient supply of comprehensive, quality products and professional services to customers. As an integrated manufacturer of a comprehensive range of piping and building materials, China Lesso provides over 10,000 types of quality products, which are widely applied to such fields as home improvement, civil architecture, municipal water supply, drainage, energy management, electric power transmission, telecommunication, gas supply, fire services, environmental protection, agriculture and marine aquaculture.

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