China Lesso Announces 2026 Interim Results

Remain Committed to its Industrial Development Mission and Execute the Six Core Strategies.

Drive Steady Growth in its Core Business and Further Deepen its Global Footprint

(28 August 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 interim results for the six months ended 30 June 2026 (the “Period”).

The year 2026 marks an important milestone for the Group to move towards its 40th anniversary. Since its founding, China Lesso has followed a long-term operational strategy, steadily expanding from local operations to global market coverage, and transforming from a single pipe manufacturing to a multi-industry collaborative business. The Group continues to advance industry upgrades and international development strategies, with continued improvement in its overall competitive strength, the scale of overseas operations and industry influence. Despite changes in the macro environment and cyclical adjustments in the industry, the overall business has strong operational resilience and a solid foundation for long-term sustainable growth.

During the Period, affected by relatively weak domestic market demand, intensified industry competition and fluctuations in raw material prices, the Group’s revenue fell to RMB11,912 million. Leveraging on the operational resilience of the plastic piping business, comprehensive optimisation of the cost structure and timely adjustments to product pricing policies, the Group’s overall sales performance outperformed the industry average despite a decline in revenue from the plastic piping systems business. Revenue from other businesses remained at a level comparable to that of the same period last year. The Group’s gross profit was RMB3,426 million and gross profit margin slightly increased to 28.8% mainly due to the Group’s strategic procurement and reserves of raw materials effectively mitigated the cost impact caused by the price fluctuations as well as, the proactive and strict cost control and the promotion of smart manufacturing to enhance production efficiency. The Group’s EBITDA amounted to RMB2,048 million, and the EBITDA margin was 17.2%. Net profit margin was 5.8%. Profit attributable to owners of the Company was RMB727 million. Basic earnings per share were RMB0.24.

The Group’s management has consistently focused on the development of its core piping business. The core plastic piping systems business has performed steadily, maintaining a stable scale, while the business and product structures have been continuously optimised, further consolidating the business’s foundations and competitiveness, and sustaining reasonable profitability and market leadership advantages.

During the Period, for product and customer aspect, the Group continued to expand product diversification and drive growth in sales of high value-added products, such as specialized industrial piping, high-end environmental protection piping and specialised agricultural piping. In particular, specialized agricultural piping further increased its market share in China and successfully expanded into overseas agricultural markets in Africa and Southeast Asia. At the same time, the Group actively optimised its customer portfolio and strengthen its strategic partnerships to enhance competitiveness. In addition, the Group continued to increase its investment in R&D to enhance core product competitiveness, achieving a number of technical breakthroughs in the fields of highperformance composite piping and specialised industrial piping, securing several new patents, and bringing a range of new products into mass production and launch on the market. For production aspect, the Group upgraded smart factories to achieve production automation and digitalized operations management.

In terms of overseas markets, the Group further strengthened the development of its overseas sales network and gained a deeper understanding of the specific needs of different markets, and continuously enhanceed the suitability, functionality and market competitiveness of its products, driving high-quality and sustainable growth in its overseas businesses. Currently, the Group has established production bases in Southeast Asian countries such as Indonesia, Thailand, Malaysia, Cambodia, Vietnam and the Philippines, African countries including Tanzania and Angola, Central Asia such as Uzbekistan, and Texas, USA. During the Period, the proportion of revenue contributed by overseas markets rose to 8.6%, gradually becoming a driver of the Group’s revenue growth.

Mr. Wong Luen Hei, China Lesso Chairman and Executive Director said, ‘‘Looking ahead to the second half of 2026, in the face of the challenges of a complex and ever-changing global economic landscape and deep industry adjustment, China Lesso will remain steadfast in its commitment to industrial development, maintain strategic resolve, and implement the six core strategies, with a view to driving steady growth in its core businesses and further deepening its global footprint. In a market environment characterised by both opportunities and challenges, the Group will adhere to its long-term development philosophy, remain focused on its core piping business, and further strengthen its core competitive advantages. At the same time, it will accelerate the implementation of its overall development strategy and expand its international presence. Leveraging its strengths in brand recognition, scale, integrated industry chain and global footprint, the Group will steadily advance towards its vision of becoming a world-leading piping and building materials enterprise, thereby creating greater value for its shareholders, customers and society.”

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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 40 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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