Financial Performance - Revenue decreased by 4.0% to RMB 30,767,211,000 in 2022 compared to RMB 32,057,584,000 in 2021[8] - Gross profit declined by 2.4% to RMB 8,241,423,000 in 2022 from RMB 8,447,693,000 in 2021[8] - Profit for the year fell by 16.7% to RMB 3,190,424,000 in 2022 from RMB 3,807,282,000 in 2021[8] - Basic earnings per share decreased by 17.2% to RMB 0.82 in 2022 from RMB 0.99 in 2021[8] - Total dividend dropped by 21.1% to HK 30 cents in 2022 from HK 38 cents in 2021[8] - Total revenue for 2022 was RMB30,767 million, a year-on-year decrease of 4.0%[14] - Profit attributable to owners of the Company decreased by 17.3% to RMB2,517 million in 2022[14] - Gross profit for 2022 was RMB8,241,423 thousand, compared to RMB8,447,693 thousand in 2021[10] - Net profit margin decreased to 8.2% in 2022 from 9.4% in 2021[182] - Net profit attributable to the company's owners decreased by 17.3% year-on-year to RMB 2.517 billion, with a net profit margin of 8.2%[185] Assets and Liabilities - Total assets increased to RMB 58,952,604,000 in 2022 from RMB 54,483,189,000 in 2021[8] - Total debts rose by 12.8% to RMB 20,614,088,000 in 2022 from RMB 18,275,903,000 in 2021[8] - Net debt grew by 24.7% to RMB 13,252,318,000 in 2022 from RMB 10,629,654,000 in 2021[8] - Gearing ratio increased to 47.7% in 2022 from 45.6% in 2021[8] - Net debt to equity ratio rose to 58.7% in 2022 from 48.7% in 2021[8] - Total assets increased to RMB58,952,604 thousand in 2022 from RMB54,483,189 thousand in 2021[11] - Non-current assets grew to RMB34,959,559 thousand in 2022, up from RMB30,131,266 thousand in 2021[11] Strategic Expansion and Partnerships - China Lesso held a groundbreaking ceremony in Gansu, marking the official construction of Gansu Lesso[16] - The Group's first extrusion workshop in Indonesia was put into operation in August[16] - China Lesso entered into a strategic cooperation agreement with China Construction Sixth Engineering Division Corp., Ltd.[17] - The Group signed a strategic cooperation agreement with Foshan Construction Development Group Co., Ltd. for comprehensive cooperation in building materials, raw material procurement, new energy, and green construction[17] - China Lesso established a new production base and distribution center in Gansu, marking a strategic expansion in the Northwest region[18] - The first phase of the extrusion workshop in Indonesia was officially put into production, accelerating localization and market expansion in Southeast Asia[18] - China Lesso signed strategic cooperation agreements with China Construction Sixth Engineering Bureau and Foshan Construction Development Group for comprehensive collaboration in building materials, green energy, and green construction[19] - The Group continued to expand its strategic partnerships with government departments and state-owned enterprises in the infrastructure sector[184] Brand and Corporate Development - China Lesso proposed a new brand positioning upgrade with the slogan "Envisioning the Better, Building the Future" to reflect low-carbon, environmentally friendly, and high-quality development[18] - China Lesso ranked 375th in the 2022 Fortune China 500 list and received multiple awards including "2022 Capital Market Influential Enterprise" and "Top 5 Listed Companies with Investment Potential"[18] - China Lesso completed a brand strategy upgrade and aims to expand into building materials, home improvement, environmental protection, and new energy sectors[167] - China Lesso's mission is to improve and enhance living quality, focusing on social responsibility, corporate governance, and sustainable urban development[171] Management and Leadership - Mr. Lai Zhiqiang is responsible for the production and technical management of the Group with 26 years of experience in the plastic pipe industry[29][32] - Mr. Kong Zhaocong oversees the China sales of the Group with 29 years of experience in the plastic pipe industry[30][32] - Mr. Chen Guonan manages the production and engineering of certain companies within the Group with 33 years of experience in the plastic pipe industry[31][32] - Dr. Lin Shaoquan leads the research and development and overseas sales of the Group with 20 years of experience in the plastic pipe industry[33] - Mr. Huang Guirong is responsible for the overall management of the factories and production facilities of the Group with 26 years of experience in the plastic pipe industry[34] - Mr. Luo Jianfeng has approximately 30 years of experience in accounting and is currently an executive director of Xingfa Aluminium Holdings Limited[35] - Dr. Lin Shaoquan, aged 47, is responsible for the company's R&D and overseas sales, with over 20 years of experience in the plastic pipe industry[36] - Mr. Huang Guirong, aged 47, oversees the company's factory and production equipment management, with 26 years of experience in the plastic pipe industry[36] - Mr. Luo Jianfeng, aged 51, has over 30 years of accounting experience and serves as an executive director of Xingfa Aluminum Holdings Limited (stock code: 98)[36] - Mr. Lin Dewei, aged 62, has over 25 years of legal experience and is a non-executive director of HC Group Inc. (stock code: 2280)[38] - Mr. Wong Kwok Ho Jonathan, aged 49, specializes in civil and criminal litigation and is a member of The Chartered Institute of Arbitrators[38] - Ms. Lan Fang, aged 47, has over 25 years of experience in social organization management and the construction and decoration materials industry[38] - Dr. Tao Zhigang, aged 57, is HSBC Professor of Global Economy and Business Strategy at the University of Hong Kong[39] - Mr. Cheng Dickson, aged 53, is an independent director of Magnum Opus Acquisition Limited (Ticker: OPA.U) and general manager at The Hong Kong and China Gas Company Limited (stock code: 3)[40] - Mr. Cheng Dickson has over 25 years of experience in the investment banking industry[41] - Mr. Liu Guanggen, aged 41, is the CFO of the Group, responsible for overall financial and accounting affairs, with a master's degree in engineering from Chongqing University[45][47] - Mr. Kwan Chi Wai Samuel, aged 45, is the company secretary with over 20 years of experience in accounting, auditing, and finance, holding a master's degree in business administration from the University of South Australia[46][47] - Ms. Lu Jiandong, aged 53, is an independent non-executive director with extensive investment banking experience, holding an MBA from The Wharton School of the University of Pennsylvania[43][44] - Dr. Tao Zhigang, aged 57, is an independent non-executive director with a Ph.D. in Economics from Princeton University and serves as a professor at the University of Hong Kong[42] - Mr. Zheng Dishun, aged 53, is an independent non-executive director with over 25 years of investment banking experience, holding a master's degree in applied finance from Macquarie University[42] - The Board currently comprises 15 directors, including 10 executive directors and 5 independent non-executive directors[50] - Mr. Wong Luen Hei ceased to be the chairman of the Nomination Committee, replaced by Ms. Lu Jiandong effective from 30 August 2022[52] - The chairman and chief executive roles are held by Mr. Wong Luen Hei and Mr. Zuo Manlun, respectively, to segregate Board management from daily operations[52] - Independent non-executive directors provide expertise and ensure balanced interests, participating in Board and committee meetings[55] - The Board is responsible for corporate governance duties, including policy development, compliance monitoring, and risk management[58] - Ernst & Young was appointed as the independent auditor for the interim and annual results for 2022[56] - Directors are responsible for preparing consolidated financial statements in accordance with Hong Kong Financial Reporting Standards[56] - The Board ensures all directors are adequately briefed and receive timely, reliable information for decision-making[52] - Directors appointed to fill vacancies hold office until the first AGM and are eligible for re-election[52] - The Board reviewed and monitored the effectiveness of the Company's risk management and internal control systems in 2022[59] - The Board convened eight meetings in 2022 to review operating performance, funding requirements, and market conditions[60] - The Company provided two seminars in 2022 on "Climate risk knowledge and awareness" and "Environmental, social and governance" to Board members[69] - The company secretary received no less than 15 hours of relevant professional training during the reporting period[76] - The Audit Committee convened two meetings in 2022 to review the annual report, annual results announcement, and other financial documents[80] - The Group paid RMB 11.33 million in total to Ernst & Young for audit and non-audit services in 2022, including RMB 7.85 million for annual audit services[83] - Ernst & Young has been the Company's auditor for 13 years since 2010, with certifications provided by Helena Lee Mee Kwan and Lau Kin Yu[87] - The Remuneration Committee is responsible for formulating the Company's remuneration policy and incentive mechanism, and conducting appraisals for directors and senior management[88] - The Audit Committee reviewed the annual report, annual results announcement, and sustainable development report for the year ended 31 December 2022, recommending approval to the Board[81] - The Remuneration Committee convened one meeting in 2022 to assess the performance of directors and senior management, and recommended remuneration packages[93] - Two senior management members received remuneration of less than RMB1 million in 2022[93] - The Nomination Committee comprises six members, including Ms. Lu Jiandong as chairlady, and is responsible for recommending candidates for directors and senior management[93] - The Nomination Committee convened two meetings in 2022, reviewed the Board's structure, and recommended retiring directors for re-election at the AGM[99] - The company ensures the independence of the Board through annual reviews and confirmation from independent non-executive directors under Rule 3.13 of the Listing Rules[100] - The Board comprises 15 directors, including 3 female directors, achieving the target of at least one female director[109] - Women employees constitute 31.2% of the Group's workforce and 12.4% of middle or above managerial level positions[111] - The Board diversity policy aims to achieve diversity through factors such as gender, age, cultural background, and professional experience[104] - The Company has established a risk management project team to assess and communicate the Group's risk profile and material risks[115] - The Board believes the current gender ratio in the workforce is appropriate for the Group's development[111] - The Board has reviewed and confirmed the effectiveness of the Group's risk management and internal control system[115] - The Nomination Committee recommends the re-election of retiring directors based on the Board diversity policy[101] - The Board diversity targets include having at least one director with risk management expertise and industry knowledge, both of which have been achieved[107] - The Board includes one-third independent non-executive directors to promote critical review and control of the management process[109] - The Group's risk management and internal control system is aligned with COSO standards to provide reasonable assurance against material misstatement or loss[114] - The Board is responsible for the effectiveness of the overall risk management, determining the overall objective, risk appetites, and risk tolerance for corporate risk management[119] - The Audit Committee reviews the establishment and planning of the comprehensive risk management system and submits the annual comprehensive risk management report to the Board[119] - The risk management project team is responsible for establishing and amending the Company's risk management policies and mechanisms[121] - The risk management project team formulates and submits the annual risk management work plan to the Board and the Audit Committee for review[121] - The internal control team assists the Group's risk management work and formulates internal control plans based on risk assessment results[125] - The internal audit department assists the Group's risk management work and formulates internal audit plans based on risk assessment results[125] - The risk management program includes collecting first-hand information, analyzing and assessing risks, proposing risk management strategies, and supervising the implementation of risk management works[127] - The Group has established a comprehensive risk management process led by the Risk Management Project Team, assisted by the Internal Audit Department and Internal Control Group[128] - The Group faces material risks including macroeconomic risks, inappropriate market competition strategies, raw material price fluctuations, policy adjustments, cybersecurity, COVID-19, and climate change risks[133][134] - Macroeconomic risks arise from economic volatility and inflation pressure, with measures including reviewing management strategies and mechanisms for macroeconomic risks[134] - Risks of inappropriate market competition strategies stem from competition strategy formulation and client information collection, with measures including reviewing market competition strategy mechanisms[136] - Raw material price fluctuation risks are influenced by refining capacity shortages, manufacturer power and labor cost changes, and resin price changes, with measures including clear risk management strategies and mechanisms[137] - Policy adjustment risks include environmental, urbanization, water projects, and real estate policies, with measures including reviewing management strategies and mechanisms for policy-related risks[138] - The Group’s senior management supervises first-hand risk information collection, risk assessment, risk management strategies, and solution implementation[132] - The Risk Management Project Team conducts annual reviews and examinations of risk management implementation across departments and business units[132] - The Group ensures timely, accurate, and complete communication of risk management information across departments and business units[131] - Risk management measures include collecting and internally releasing information on raw material price fluctuations and policy changes through established channels[137][138] - The company has established a dual-active and duplication system for intra-city and inter-city data centers to enhance cybersecurity[141] - The company has developed internal communication software to manage and mitigate cybersecurity risks[141] - The company has strengthened its environmental management by improving energy resource efficiency and waste discharge control[141] - The company has formulated a whistleblowing policy allowing anonymous reporting of financial misconduct and fraud[142] - The company has proposed amendments to its memorandum and articles of association, approved by shareholders in June 2022[144] - The company has established a system for handling external inquiries, with senior executives authorized as spokespersons[142] - The company has committed to green operations and actively promotes the concept of green development to the public[141] - The company has set up an anti-fraud control unit to investigate reported cases of misconduct and ensure fair treatment[142] - The company has implemented guidelines for epidemic prevention and control to ensure orderly resumption of work and production[141] Market and Industry Trends - China's GDP growth rate in 2022 was 3.0%, reaching approximately RMB 121 trillion[160] - Infrastructure investment in 2022 increased by 9.4% year-on-year, focusing on traditional infrastructure such as transportation, water conservancy, and municipal projects[161] - The real estate industry faced unprecedented challenges due to the Covid-19 pandemic and economic downturn, leading to sluggish sales and debt defaults among developers[163] - The Central Government introduced supportive policies for the real estate industry, including interest rate cuts and RRR reductions[163] - The PRC government is actively promoting green and low-carbon circular development to achieve carbon emission peak and carbon neutrality targets[165] - China Lesso is committed to green, low-carbon, and high-quality development to support China's 2030 carbon emission peak and 2060 carbon neutrality goals[169] - The Group has integrated green concepts into its production and office activities, advocating paperless office and reducing resource consumption[170] Operational Performance - Total revenue for 2022 was RMB30,767 million, a decrease of 4.0% compared to RMB32,058 million in 2021[173] - Southern China contributed 50.7% of total revenue in 2022, down from 53.1% in 2021[174] - Revenue from outside China increased by 79.2% to RMB2,011 million in 2022[173] - Plastic piping systems accounted for 83.2% of total revenue in 2022, a decrease from 85.6% in 2021[175] - Gross profit margin improved to 26.8% in 2022 from 26.4% in 2021[179] - EBITDA increased by 1.2% year-on-year to RMB5,786 million in 2022[182] - The Group recommended a final dividend of HK30 cents per share for 2022, up from HK26 cents per share in 2021[183] - The Group's EBITDA increased by 1.2% year-on-year to RMB 5.786 billion, with an EBITDA margin of 18.8%[185] - The plastic piping systems business recorded revenue of RMB 25.607 billion, accounting for 83.2% of the Group's total revenue[191] - Sales volume of the plastic piping systems decreased by 6.1%, with PVC products sales volume down 4.2% to 1,776,304 tonnes and non-PVC products down 11.4% to 616,069 tonnes[193] - Revenue from PVC products decreased by 7.5% to RMB 15.675 billion, while non-PVC products revenue decreased by 5.5% to RMB 9.932 billion[193] - The average selling price of the plastic piping system decreased by 0.6% to RMB 10,704 per tonne, with a gross profit margin of 27.5%[194] - Revenue from Southern China decreased by 9.0% to RMB 12.839 billion, accounting for 50.1% of total revenue[189] - Revenue from outside China increased by 33.8% to RMB 1.018 billion, accounting for 4.0% of total revenue[189] - Revenue from water supply applications decreased by 3.8% to RMB 9.968 billion, accounting for 38.9% of total revenue[190] - Revenue from power supply and telecommunications applications decreased by 12.4% to RMB 4.206 billion, accounting for 16.4% of total revenue[190] - The Group's annual designed capacity

Financial Performance - Revenue decreased by 4.0% to RMB 30.77 billion compared to the previous year[2] - Gross profit decreased by 2.4% to RMB 8.24 billion[2] - Net profit decreased by 16.7% to RMB 2.51 billion[2] - Basic earnings per share were RMB 0.82, a decrease of 17.2%[4] - Total comprehensive income for the year was RMB 1.71 billion, down from RMB 2.11 billion[4] - Total revenue for 2022 was RMB 30,767,211 thousand, a decrease from RMB 32,057,584 thousand in 2021, representing a decline of approximately 4%[20] - The group's pre-tax profit decreased to RMB 20,033,849 thousand in 2022 from RMB 22,336,356 thousand in 2021, a decline of approximately 10%[27] - The net profit attributable to shareholders fell by 17.3% to RMB 2.517 billion[62] - The company reported a net profit of RMB 3,807,282,000, reflecting its profitability for the year[15] Assets and Liabilities - Non-current assets increased to RMB 34.96 billion from RMB 30.13 billion[5] - Cash and cash equivalents decreased to RMB 7.36 billion from RMB 7.65 billion[5] - Total current liabilities increased to RMB 21,447,072 thousand in 2022 from RMB 20,863,603 thousand in 2021, representing a growth of approximately 2.8%[6] - Non-current liabilities increased significantly to RMB 14,915,737 thousand in 2022 from RMB 11,812,823 thousand in 2021, reflecting a growth of approximately 26.5%[6] - The company's total equity rose to RMB 22,589,795 thousand in 2022, up from RMB 21,806,763 thousand in 2021, which is an increase of approximately 3.6%[6] - The company's total assets were reported at RMB 45,073,784 thousand, indicating a solid asset base[12] - The total amount of revenue from sales of goods and services from domestic customers was RMB 28,659,253 thousand, while revenue from overseas customers was RMB 1,875,448 thousand[20] Dividends - The company proposed a final dividend of HKD 0.30 per share for the year ended December 31, 2022[2] - The company declared a final dividend of HKD 0.30 per share for the year ended December 31, 2022, totaling HKD 923,828,000[32] - The total dividend for 2022 was HKD 0.30 per share, with a payout ratio of 33.0% of the profit attributable to shareholders for the year[116] Revenue Breakdown - Revenue from the new energy-related products and services amounted to RMB 589,378 thousand, showcasing growth in this sector[12] - Revenue from product sales related to new energy business was RMB 566,244 thousand, while installation and renovation project contract revenue was RMB 1,359,196 thousand[19] - Revenue from financial services was RMB 82,984 thousand, showing a decrease from RMB 114,118 thousand in the previous year[20] - The revenue from the plastic pipe system segment was RMB 25.607 billion, accounting for 83.2% of total revenue, down 6.7% from 2021[75] - The revenue from the "Other" segment, which includes environmental engineering and financial services, increased by 32.7% to RMB 2.455 billion[75] Operational Highlights - The company operates in multiple segments, including manufacturing and sales of building materials, new energy products, and logistics services, with a focus on geographic regions in China[9] - The company plans to expand its market presence through strategic acquisitions and new product developments[15] - The company aims to enhance its brand positioning with a new vision for the next decade, focusing on low-carbon, green building, and high-quality development[65] - The company is focusing on automation and smart production to maximize economies of scale and improve operational efficiency[77] Market and Economic Context - In 2022, China's GDP growth was only 3.0%, with a total GDP of approximately RMB 121 trillion, reflecting significant economic challenges[68] - Infrastructure investment in China grew by 9.4% year-on-year in 2022, playing a crucial role in stabilizing economic growth[68] - The management remains cautiously optimistic about the long-term prospects, emphasizing the importance of core competitiveness and resilience[66] Strategic Initiatives - The company plans to strengthen management foundations and improve operational quality and profitability, focusing on four development directions: pipe home furnishings, intelligent manufacturing, green energy, and sustainable growth[66] - The company is actively responding to climate change by identifying opportunities and challenges, implementing effective measures in product design and production processes[72] - The company aims to enhance its operational efficiency by integrating green practices into its daily operations, promoting paperless offices and resource-saving behaviors[72] Employee and Corporate Structure - The company employed approximately 19,690 employees, with total employee costs amounting to RMB 2.409 billion during the reporting period[104] - The group has established over 30 advanced production bases across 18 provinces in China and overseas[59] - The group has a distribution network covering the entire country, with 2,786 independent first-level distributors[59] Future Outlook - The company aims to enhance competitiveness by continuously investing in R&D for new products that meet market demands[86] - The company plans to further expand its distribution network in Southeast Asia to drive business growth[95] - In 2023, the company aims to focus on four development directions: "pipeline home, intelligent manufacturing, green energy, and seizing opportunities" to enhance business growth and profitability[99]

Financial Performance - For the six months ended June 30, 2022, China Lesso reported revenue of RMB 14,889,613, representing a year-on-year increase of 1.1% compared to RMB 14,723,265 in 2021[9]. - Gross profit for the same period decreased by 9.9% to RMB 3,942,695 from RMB 4,373,801 in 2021[9]. - Profit before tax fell by 31.1% to RMB 1,558,028, down from RMB 2,260,090 in the previous year[9]. - Profit for the period attributable to owners decreased by 28.6% to RMB 1,295,174 compared to RMB 1,814,284 in 2021[9]. - Total comprehensive income for the period was RMB 690,578, down from RMB 1,601,003, a decrease of about 56.80%[138]. - Basic and diluted earnings per share attributable to owners of the company were RMB 0.42, down from RMB 0.59 in the previous year, representing a decline of approximately 28.81%[138]. - The company did not declare an interim dividend for the six months ended June 30, 2022, compared to HK12 cents per share in the first half of 2021[127]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 53,164,487, a decrease of 2.4% from RMB 54,483,189 at the end of 2021[9]. - Cash and bank deposits decreased by 27.0% to RMB 5,581,311 from RMB 7,646,249 at the end of 2021[9]. - Total debts amounted to RMB 17,507,802, down 4.2% from RMB 18,275,903 at the end of 2021[9]. - The Group's total equity increased to RMB 21,795 million, with current assets of RMB 21,801 million and current liabilities of RMB 18,260 million, resulting in a current ratio of 1.19[80]. - The Group's cash and bank deposits, including restricted cash, totaled RMB 5,581 million, providing sufficient working capital for operations and future development[80]. Revenue Breakdown - Revenue from plastic piping systems accounted for 85.7% of total revenue, amounting to RMB 12,763 million, up 1.5% from RMB 12,574 million in 2021[25]. - Southern China contributed 50.7% of total revenue, down from 54.1% in the first half of 2021, while other regions accounted for 49.3%[21]. - The building materials and home improvement segment generated RMB 1,219 million, a decrease of 3.1% compared to RMB 1,258 million in 2021[25]. - Revenue from the plastic piping systems business increased slightly to RMB 12,763 million, accounting for 85.7% of the Group's total revenue[38]. - Revenue from contracts with customers for the six months ended June 30, 2022, was RMB 14,889,613,000, compared to RMB 14,723,265,000 for the same period in 2021[174]. Market and Industry Outlook - The company anticipates that total investment in major infrastructure projects in China will exceed RMB 25 trillion in 2022, which is expected to drive demand in the piping industry[12]. - The government has proposed accelerating infrastructure construction, which is expected to create stable demand for the industry[12]. - The government’s policies aimed at stabilizing the real estate sector are expected to gradually restore stability in the building materials and home improvement industry[16]. - The real estate market is expected to gradually stabilize and recover in the second half of the year due to favorable policies[59]. Strategic Initiatives - The company is focusing on smart manufacturing and green business initiatives to enhance competitiveness and drive future growth[15]. - The Group is actively expanding its business into the photovoltaic industry, enhancing synergy among its various business segments[26]. - The Group aims to establish product research and development centers to innovate and upgrade eco-friendly products[59]. - The Group is committed to green development and has been recognized as a National Green Factory, focusing on low energy consumption and high energy efficiency[44]. Operational Efficiency - The Group's management emphasizes the importance of automation and intelligentization in improving operational efficiency and reducing costs[47]. - The Group's average selling price and sales volume for plastic piping systems remained stable, contributing to the overall revenue growth in this segment[38]. - The Group's sales volume of plastic piping systems decreased by 5% year-on-year due to intensified competition and weak market demand[40]. Investment and Financing - In 2022, the Group's capital expenditure was approximately RMB 2,241 million, primarily for improving automated facilities, expanding production bases, and constructing investment properties[79]. - The Group's investment properties amounted to RMB 8,692 million, with increases primarily due to ongoing construction of certain investment properties[83]. - The Group will closely monitor the performance of its investees and adjust investment strategies to minimize the impact of market volatility[85]. Governance and Compliance - The Company complied with all applicable code provisions of corporate governance during the reporting period[88]. - The audit committee reviewed the accounting policies and unaudited condensed consolidated financial statements for the six months ended June 30, 2022[89]. - The Company adopted a share award scheme on August 28, 2018, with a budget of up to HK$750 million to attract and retain talent, with 22,991,000 shares held in trust as of June 30, 2022[110].

Financial Performance - Revenue for the year ended December 31, 2021, was RMB 32,057,584, an increase of 14.2% from RMB 28,073,065 in 2020[4] - Gross profit for 2021 was RMB 8,447,693, slightly up from RMB 8,383,979 in 2020, indicating a gross margin improvement[4] - Profit before tax decreased by 19.9% to RMB 3,807,282 from RMB 4,753,560 in the previous year[4] - Profit for the year was RMB 3,018,589, down 19.7% compared to RMB 3,757,389 in 2020[4] - Basic earnings per share decreased by 18.9% to RMB 0.99 from RMB 1.22 in 2020[4] - The Group's revenue for 2021 was RMB 32,058 million, an increase of 14.2% compared to RMB 28,073 million in 2020[12] - Gross profit for the Group was RMB 8,448 million in 2021, representing a slight increase of 0.8%[12] - Profit attributable to owners of the Company decreased by 18.8% to RMB 3,044 million due to various negative factors during the year[12] - The Group's revenue increased by 14.2% to RMB 32,058 million in 2021, compared to RMB 28,073 million in 2020[186] - Gross profit rose by 0.8% to RMB 8,448 million, with a gross profit margin of 26.4%, down from 29.9% in 2020[186] - EBITDA decreased by 7.7% to RMB 5,720 million, with an EBITDA margin of 17.8% compared to 22.1% in 2020[190] Dividends and Shareholder Returns - Proposed final dividend per share was reduced to 26 HK cents from 38 HK cents, a decrease of 31.6%[4] - The Group proposed a final dividend of HK 26 cents per share for the year ended December 31, 2021[12] - The final dividend recommended for 2021 is HK 26 cents per share, down from HK 38 cents per share in 2020[191] - The Group has a dividend policy of declaring and paying dividends semi-annually at around 30% of profit attributable to owners[145] Assets and Liabilities - Total assets increased to RMB 54,483,189, up from RMB 46,527,562 in 2020, reflecting a growth of 16.5%[4] - Total debts rose to RMB 18,275,903, an increase from RMB 16,236,163 in 2020[4] - The company reported a net debt of RMB 10,629,654, up from RMB 8,788,727 in the previous year[4] - The gearing ratio increased to 45.6% from 44.4% in 2020, indicating a higher level of financial leverage[4] Strategic Initiatives - The Group initiated a brand strategy upgrade in 2021, introducing the new slogan "Envisioning the Better, Building the Future" to enhance product quality and innovation[14] - The Group is focusing on expanding its plastic piping business and has been actively developing new products to enhance competitiveness[15] - The Group has increased investment in technological innovation to enhance its research and development capabilities, particularly in the environmental protection sector[17] - The Group remains cautiously optimistic about long-term prospects and plans to enhance operations through intelligent manufacturing and sustainable practices[21] - China Lesso aims to maintain piping manufacturing as its core business while expanding into building materials, home improvement, and environmental protection sectors[23] Management and Governance - The company has a strong management team with extensive experience in the plastic pipe industry, with members averaging over 25 years of experience[33] - The management team includes professionals with diverse backgrounds, including legal and marketing expertise, contributing to strategic decision-making[39] - The board includes independent directors with significant experience in law and business administration, ensuring robust governance[39] - The Company is committed to high standards of corporate governance practices and business ethics, essential for sustainable development and investor confidence[55] - The Board reviews corporate governance practices periodically to meet shareholder expectations for continual improvement[56] Risk Management - The Board believes that the existing risk management and internal control system is sufficient, effective, and adequate, covering financial, operational, and compliance controls[120] - The Group has developed a risk management system and policies, establishing a project team responsible for assessing the Group's risk profile and tracking mitigation plans[120] - The Group has established a comprehensive risk management program led by the risk management project team, which includes first-hand information collection, risk analysis, and strategy proposal[128] - The material risks identified include macroeconomic risks, inappropriate market competition strategies, fluctuations in raw material prices, and environmental policy adjustments[134] - The Group's measures for macroeconomic risks involve reviewing management strategies and mechanisms to adapt to economic volatility and inflation pressures[135] Market Position and Growth Opportunities - China Lesso Group Holdings Limited is a leading industrial group in manufacturing piping and building materials in mainland China, with over 35 years of rapid development[160] - The Group operates more than 30 advanced production bases across 18 provinces in China and internationally, establishing a nationwide sales network[161] - The company provides over 10,000 types of quality products, applicable in various fields including home improvement, civil architecture, and environmental protection[161] - The market expects a significant acceleration in infrastructure project implementation in 2022 compared to 2021, with "new infrastructure" identified as a key growth driver[167][170] - The government has set targets for carbon emissions peak by 2030 and carbon neutrality by 2060, enhancing prospects for the environmental protection and photovoltaic sectors[168][170] Corporate Social Responsibility - The Group is committed to corporate social responsibility by supporting the construction of epidemic prevention hospitals across the country[142] - China Lesso's mission is to "Improve and Enhance the Living Quality," reflecting its commitment to corporate social responsibility and sustainable urban development[175]

2018 ANNUAL REPORT 年度報告 CORPORATE PROFILE China Lesso Group Holdings Limited is a leading large-scale industrial group that manufactures building materials and interior decoration products in mainland China. It is listed on the main board of The Stock Exchange of Hong Kong Limited (stock name: China Lesso, stock code: 2128). China Lesso is one of the constituent stocks of the Hang Seng Composite Index – MidCap and is covered by Hong Kong Stock Exchange's Stock Connect. The Group provides over 10,000 types o ...