China Lesso Announces 2024 Annual Results
Adhering to the Prudent and Stable Business Development Strategy
Injecting More Resources to Develop Core Plastic Piping Systems Business
Accelerating Overseas Expansion and Localisation Strategy
Creating Long Term Rerurn to Shareholder
(31 March 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 annual results for the year ended 31 December 2024 (the “Year”).
In 2024, domestic economic growth was proceeding at a slow pace, and the real estate industry remained in a bottoming phase, with companies facing operational pressures and adopting a cautious approach to business expansion and investment. Nevertheless, China Lesso has consistently remained proactive, adhering to the principles of prudent business development. The Group has adjusted its internal resources, investing more in its core piping business, focusing on market penetration, continuously solidifying its market foundation, and enhancing product quality. It demonstrated resilience by maintaining steady business development. During the Year, the Group recorded revenue of RMB27,026 million. Gross profit was RMB7,293 million and gross profit margin was stabilised at 27.0%. Profit attributable to owners of the Company decreased to RMB1,684 million. Basic earnings per share were RMB0.55. The Board recommended the payment of a final dividend of HK20 cents per share for the year ended 31 December 2024.
The Group continued to cultivate its core piping business while actively expanding product development in multiple sectors, achieving innovative breakthroughs both horizontally and vertically. Driven by innovation as its core engine for growth, the Group has continuously enhanced its technological research and development capabilities to break industry barriers. By diversifying its piping products, the Group has launched more new products to meet market demand and lead industry innovation, such as piping for transmission of hydrogen and oil, to seize market opportunities and expand its market share. The plastic piping systems business recorded revenue of RMB22,819 million, accounting for 84.4% of the total revenue of the Group. Sales volume of the Group’s products decreased by 6.2% year on year. The average selling price edged down by 1.1% year on year to RMB9,191 per tonne. The gross profit margin slightly increased to 28.7%.
Mr. Wong Luen Hei, China Lesso Chairman and Executive Director said, ‘‘Looking towards 2025, despite the uncertainties of the external environment, the fundamentals of China’s economy remain robust, with confidence in achieving steady and sustainable growth. Building on its solid 38-year foundation, China Lesso will stay attuned to national policy directions and market dynamics, capitalising on emerging opportunities with a market-driven approach and a strong focus on brand development. Harnessing its advanced smart intelligent manufacturing capabilities, it will drive continuous product innovation and enhancement, delivering more efficient and environmentally friendly piping solutions. Within China, the Group will further strengthen its strategic partnerships with government departments, leading central government-owned and state-owned enterprises, maximising synergies to expand its market presence. Concurrently, the Group will accelerate its overseas expansion and localisation strategy, diversifying revenue streams and fostering sustainable business growth. Armed with robust capabilities and strong resilience, the Group is well-equipped to navigate market challenges and fortify its leadership in the piping industry. Technological advancement remains at the heart of the Group’s development strategy. By continuously automating and digitalising its production processes and integrating cutting-edge technologies, the Group is enhancing efficiency and productivity. Moreover, its strategic procurement approach effectively controls raw material and production costs, driving economies of scale. In summary, the management team remains optimistic about the future prospects of the plastic piping sector and is confident in delivering consistent, solid business performance and generating shareholder return for the long term.’’
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About China Lesso Group Holdings Limited
China Lesso Group Holdings Limited is a leading large-scale industrial group that manufactures piping and building materials in China. After 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 also developed long-term strategic partnerships with 2,978 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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