China Lesso H1 2026 Revenue Falls 4.5% to RMB11.9 billion, Overseas Sales Surge 36.2%
China Lesso Group reported first-half 2026 revenue of RMB11.912 billion, down 4.5% year on year, with gross margin improving to 28.8%. Overseas revenue jumped 36.2% to account for 12.1% of total sales. The core plastic pipe business achieved a gross margin above 30.0%, while average pipe prices fell 2.1% to RMB8,502 per tonne.
China Lesso Group released its interim results for the first half of 2026, a year marking the company's 40th anniversary. Revenue reached RMB11.912 billion, down 4.5% year on year. Overall gross margin improved by 0.4 percentage points to 28.8%, with the core plastic pipe business achieving a gross margin above 30.0%. Overseas revenue grew 36.2% year on year, representing 12.1% of total revenue, while overseas sales of plastic pipes accounted for 8.6% of that segment's revenue.
The average selling price of plastic pipes fell to RMB8,502 per tonne from RMB8,689 in the same period of 2025, a decline of approximately 2.1%. The product mix continued to shift toward higher value-added categories, with strong sales volumes in special industrial pipes, high-end environmental pipes, and agricultural pipes. The company operates more than 30 production bases across 19 provinces, and its number of exclusive first-tier distributors increased to 3,186 as of the end of June.
China's total plastic pipe output in 2025 was 14.95 million tonnes, down 2.3% year on year, and industry demand remained weak in the first half of 2026. Raw materials, mainly PVC and polyethylene, account for over 80% of production costs in the plastic pipe industry. China Lesso holds a market share exceeding 20%.
In July, the company's key technologies for large-diameter steel wire reinforced polyethylene composite pipes and high-performance polyvinylidene fluoride (PVDF) pipes passed appraisal by the China Light Industry Federation, achieving internationally leading and internationally advanced levels, respectively. During the first half, the company also made technological breakthroughs in high-performance composite pipes and industrial specialty pipes, added multiple patents, and launched several new products into mass production.
Overseas, the company has established production bases in Indonesia, Thailand, Malaysia, Cambodia, Vietnam, the Philippines, Tanzania, Angola, and Uzbekistan. Overseas revenue growth accelerated to 36.2% in the first half of 2026, up from 29.5% in the same period of 2025.