China Lesso Announces 2025 Annual Results

Records total revenue of RMB24,315 million and

recommends a final dividend of HK20 cents per share

Maintains a strong focus on the piping business while

steadily expands its international footprint

(31 March 2026 - 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 annual results for the year ended 31 December 2025 (the "Year").

During the Year, the Group's core piping business delivered sound performance, with its revenue remaining resilient and sales volume in 2025 remaining broadly flat compared with 2024. The Group recorded revenue of RMB24,315 million (2024: RMB27,026 million). Gross profit amounted to RMB6,683 million (2024: RMB7,293 million), with a gross profit margin of 27.5% (2024: 27.0%) which maintained at a stable level. Net profit margin was 5.0% (2024: 6.1%). Profit attributable to owners of the Company decreased by 25.1% to RMB1,262 million (2024: RMB1,684 million). Basic earnings per share were RMB0.41 (2024: RMB0.55).

To express gratitude to the Shareholders' support and to share the results of the Group's efforts, the Board recommended the payment of a final dividend of HK20 cents per share for the year ended 31 December 2025 (2024: HK20 cents per share).

In response to the complex market environment, the Group has steadfastly maintained a strong focus on the plastic piping systems and implemented a prudent development strategy, achieving stable performance in its core business. In terms of municipal affairs, the Group was deeply involved in key projects such as urban renewal, pipeline upgrading and sewage treatment across China. In terms of agriculture, the Group also deepened its operations in several major agricultural provinces across the country, further increasing the market share for agricultural specialised piping, while successfully expanding into overseas agricultural markets in Africa and Southeast Asia.

The Group continued to expand its overseas market presence, with operations spanning multiple countries and regions in Southeast Asia, Central Asia and Africa. The Group has also established production bases in Indonesia, Thailand, Malaysia, Cambodia, Vietnam and the Philippines in Southeast Asia, Tanzania and Angola in Africa, Uzbekistan in Central Asia and other places. The Group accelerated the localisation of its overseas operations, with coordinated development across three key regional markets in Southeast Asia, Africa and North America.

In terms of technological innovation, the Group achieved international leading breakthroughs in the research and development of specialised industrial piping, with the application scope for various high value-added products expanded, driving the construction of smart factories to achieve digitalised production. Production volume and capacity utilisation rate remained at high levels throughout the year. The Group's core competitive advantages continued to be strengthened, earning multiple industry honors, including being named one of the Top 100 Light Industry Enterprises in China.

During the year, the Group received numerous accolades and recognition from various sectors, including ranking 338th on the "2025 Top 500 Chinese Listed Companies Brands" list, 8th among China's Top100 Light Industry Enterprises, and being named one of the 2025 Top 10 Plastic Pipe Brands in China as well as the 2025 Top 10 Green Brands in China's Piping and Pipe Materials Industry. These achievements not only represent authoritative recognition of China Lesso's overall strength, but also reaffirm the growing influence and innovation capabilities of the Lesso brand, further highlighting the Group's leading role and strong growth vitality in economic development.

The year 2026 marks an important milestone for the Group as it enters its 40th anniversary, with the establishment of its overall strategic vision of "maintaining a strong focus on the piping business while steadily expanding its international footprint". The Group will adhere to the direction of focusing on core business, optimising structure, expanding domestically and internationally, and pursuing innovation-driven development, propelling its high-quality development. The Group will allocate its capital expenditure to its piping business, continuing to increase investment in research and development to make great efforts to develop high value-added products such as specialised industrial pipes and high-end environmental protection pipes. In addition, it will strategically explore the domestic municipal, agricultural, and commercial and industrial sectors to further strengthen its market share in core markets.

At the same time, the Group is accelerating the commencement of operations at ten overseas production bases, including those in Nigeria, Bangladesh and Texas in the United States, to enhance its global production and market presence in Southeast Asia, Africa, South America, and North America. The Group will continue to advance the establishment of localised production, sales, and service systems in overseas markets, positioning foreign operations as a core growth driver.

Mr. Wong Luen Hei, China Lesso Chairman and Executive Director said, "The Group will uphold prudent strategies and enhance financial management, continuously optimise its debt structure to strengthen cash flow management. The Group will also refine its Shareholder dividend distribution policy, establish and improve a comprehensive risk management system and strengthen its capabilities to anticipate and respond to operational risks, ensuring its sound and sustainable development."

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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. After more than 39 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, and new energy.

The Group has established over 50 factories worldwide. The Group is expanding the global sales network that enables 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 hundreds of thousands 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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