The move is aimed at capitalizing on China’s Belt and Road Initiative and at globalizing business

HONG KONG, CHINA - Media OutReach - 10 September 2019 - China Lesso Group Holdings Limited ("China Lesso" or the "Group",HKEx stock code: 2128), a leading large-scale industrial group making buildingmaterials and interior decoration products in mainland China, is pleased toannounce its plan for overseas expansion. The Group invests US$60 million in alarge-scale pipeline production base in Indonesia to increase its competitivenessand business presence in Southeast Asia. The move represents the Group's effortto capitalize on China's Belt and Road Initiative and to step up theglobalization of its business.

The Group is constructing its own productionbase in Indonesia which will be equipped with a number of advanced, automatedproduction lines for pipelines and pipe fittings. The plan will be carried out intwo phases. The first phase of the project will have designed annual productioncapacity of approximately 60,000 tons and will supply its products to Indonesiaand its neighbouring countries in Southeast Asia and other countries in NorthAmerica in the next five years. The entire production base is estimated to haveannual production capacity of 100,000 tons.

Before the completion of its own production base, the Group rents alocal factory in Indonesia to produce plastic pipes and fittings on a small scalewith an annual output of about 4,000 tons, starting from November this year.

Mr. Wong Luen Hei, Chairman and Executive Director of the Group, said, "As the largest economy in SoutheastAsia with a population of nearly 300 million, Indonesia is one of the maindrivers of economic growth in the region. It is also a major Southeast Asiancountry that participates in China's Belt and Road Initiative. Indonesia is amarket with huge potential. Therefore, we are building a large-scale pipelineproduction base in the country with the aim of tapping its huge domestic demandand grasping the opportunities presented by its infrastructure development. Thisis an important strategic move inChina Lesso's plan for globalizing its business. In the future, the Group willcontinue to proactively develop its business in other Asian countries,including India, Vietnam and Thailand. This will add impetus to the Group'soverseas expansion."

About China Lesso Group Holdings Limited

China Lesso Group Holdings Limited is aleading large-scale industrial group, making building materials and interiordecoration products in mainland China. It is listed on the main board of TheStock Exchange of Hong Kong Limited (stock name: China Lesso, stock code:2128). China Lesso is one of the constituent stocks of the Hang Seng CompositeIndex -- MidCap and is covered by Hong Kong StockExchange's Stock Connect.

The Group provides over 10,000 kinds ofquality products, including plastic piping systems, sanitary ware products,integrated kitchens, systems of doors and windows, decorative plates,fire-fighting equipment, and sanitary materials, etc. They are widely appliedto such fields as interior decoration, water supply, drainage, power supply andtelecommunications, gas transmission, agriculture, floor heating and fireservices. The Group is positioned as one of the manufacturers who offer themost comprehensive range of building materials and interior decorationproducts.

The Group has 23 advanced production bases in16 regions, namely Guangdong, Guizhou, Sichuan, Hubei, Jiangsu, Anhui,Zhejiang, Henan, Hebei, Jilin, Shaanxi, Xinjiang, Hainan, Yunnan, Shandong andHunan. The Group has established a nationwide sales network and has alsodeveloped long-term strategic partnerships with 2,206 independent and exclusivefirst-tier distributors to provide quality and comprehensive products as wellas professional services for customers.