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Resilience and Growth of LESSO Amid Industry Challenges

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3 weeks ago

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China, 5th Nov 2024 – Against the backdrop of a weak global economic recovery, sluggish demand in China has posed significant challenges to various industries, particularly the real estate sector and its associated supply chains, which continue to operate at low levels. In such an environment, a company’s resilience and innovation capacity become increasingly crucial. The ability to seek breakthroughs in adversity and identify new growth opportunities amid challenges has become a key measure of a company’s competitiveness.

On August 29, LESSO released its interim report for 2024.

In the first half of the year, the company achieved a revenue of RMB 13.564 billion and a gross profit of RMB 3.728 billion, with a gross margin of 27.5%, remaining relatively stable compared to the same period last year.

Overall, the industry’s downturn continues to have a negative impact on LESSO, in line with market expectations. Notably, through timely price adjustments and cost control, the company has maintained a stable gross margin, reflecting its strong market adaptability and highlighting its leading position and sound business strategy in the industry.

 

1. Focus on Core Business and Diversification of Pipe Products

An analysis of the company’s business structure reveals that “focusing on core business” has been the foundation of LESSO’s stable growth.

In the first half of the year, the company’s plastic pipe system business generated a revenue of RMB 11.219 billion, accounting for 82.7% of the group’s total revenue, an increase of 2.7 percentage points compared to the same period last year. This was achieved through flexible sales strategies and effective cost controls, including optimized supply chain management, enhanced production automation, and advanced cost accounting systems, all of which helped reduce production costs and improve cost efficiency. As a result, despite weak external demand, the core business has remained stable.

At the same time, leveraging its leading position and refined internal cost control, the company ensured the gross margin of the plastic pipe business remained steady, with a gross margin of 29.5% in the first half, nearly unchanged from 30% in the same period last year.

Looking ahead, as the plastic pipe industry matures, the era of stock competition will inevitably lead to further concentration within the sector.

In this competitive market environment, leading companies like LESSO can capitalize on economies of scale to continuously reduce costs, while small and medium-sized enterprises may struggle to replicate such strategies. As outdated, low-end capacities are gradually phased out, market share will increasingly concentrate in the hands of industry leaders.

Moreover, under the theme of high-quality development, the market is becoming more mature. Poor-quality products will no longer find a foothold, and product quality will become the key to securing orders. Only industry leaders can ensure both quality and cost-effectiveness, allowing them to succeed in fierce market competition.

For industry leaders like LESSO, this presents a promising long-term growth opportunity.

Currently, the real estate sector remains at the bottom of its cycle, and its impact on the plastic pipe industry is unlikely to reverse in the short term.

In response, LESSO has actively pursued horizontal and vertical innovation across multiple fields, diversifying its pipe product offerings and developing new products to reduce its dependence on the real estate market. By tapping into high-potential sectors, such as hydrogen and oil pipelines, the company is expanding its market.

Take hydrogen pipeline as an example, under the guidance of carbon neutrality goals, the demand for renewable energy continues to rise. For hydrogen energy, storage and transportation technologies are key to its large-scale commercialization, driving corresponding market demand. It is estimated that by 2030, China’s hydrogen pipeline network will exceed 5,000 kilometers.

However, hydrogen transportation pipelines face several challenges, especially in material selection. LESSO’s innovative RTP flexible composite hydrogen pipelines meet industry standards, addressing a critical gap in the domestic market.

With its strong technical reserves and industry expertise, LESSO is well-positioned to provide high-quality solutions for hydrogen, oil, and other downstream applications, supporting industry upgrades while unlocking long-term growth potential for itself.

 

2. Going Global and Seeking New Growth Drivers

In the current global economic landscape, weak domestic demand has become a common challenge for many industries. In this context, companies are increasingly looking overseas for new growth drivers, and LESSO is no exception.

In the first half of the year, LESSO’s overseas market revenue reached RMB 1.323 billion, a year-on-year increase of 15%, raising the share of overseas revenue from 7.5% last year to 9.8% this year. The core plastic pipe business also grew by 3.8% overseas, reaching RMB 522 million.

This demonstrates that LESSO’s overseas expansion strategy has become an important growth driver for the company.

To date, LESSO has established production bases in countries such as Indonesia, Cambodia, Thailand, and Malaysia, achieving localized production and sales.

LESSO has strategically focused on the Southeast Asian market, particularly in developing countries. These nations typically have younger populations and underdeveloped infrastructure, which presents significant potential for the construction and infrastructure industries.

Recognizing this, LESSO has accelerated its overseas market expansion, leveraging its strong technological capabilities and comprehensive product systems.

Unlike typical overseas expansions, LESSO’s strategy involves more than just exporting products; it also includes exporting technology, brand, and management expertise. By leveraging local resources and adopting asset-light and trade models, the company is advancing its localized brand development overseas.

LESSO plans to establish production bases in Tanzania and Vietnam to further expand its overseas market influence. Preparations for these facilities are progressing well, with the Vietnam base expected to be operational by Q4 2024, providing a new growth engine for the company’s global strategy.

Compared to overseas peers, LESSO has a strong product advantage. As one of the most comprehensive manufacturers in China’s pipeline and building materials sectors, LESSO offers over 10,000 high-quality products, widely used in home renovation, civil construction, municipal water supply, drainage, energy management, electricity, telecommunications, gas transmission, firefighting, environmental protection, agriculture, and marine aquaculture.

With a diverse business portfolio, LESSO is well-positioned to capture opportunities across various sectors, enhancing its global market share and overall influence.

The company has established over 30 advanced production bases in 19 Chinese provinces and overseas countries. Its extensive distribution network includes 2,891 exclusive first-tier distributors, ensuring timely and efficient delivery of a wide range of high-quality products and professional services to customers.

LESSO’s localized branding strategy not only boosts its local visibility but also strengthens consumer trust and loyalty.

 

3. Conclusion

In the short term, the complex external environment will continue to pose challenges to China’s macroeconomic landscape, but the resilience of the economy indicates a long-term upward trajectory. Moreover, future macroeconomic policies will likely further stimulate market vitality and growth, creating a healthy development environment for various industries.

For companies, adapting to industry trends and minimizing the impact of external factors on business development is crucial.

LESSO has set a strong example, leveraging its advanced manufacturing capabilities to drive product innovation and add momentum to its high-quality growth. At the same time, it is capitalizing on the wave of globalization by expanding its localized presence in overseas markets, continuously enhancing its brand influence and expanding revenue sources.

As the global economy gradually recovers and the company’s strategies are further implemented, we have every reason to believe that LESSO will continue to achieve sustainable growth through its robust strength and resilience.

 

Media Contact

Organization: LESSO

Contact Person: Benjamin Xian

Website: https://en.lesso.com/

Email: Send Email

Country: China

Release Id: 05112419448

The post Resilience and Growth of LESSO Amid Industry Challenges appeared on King Newswire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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Press Release

UVKXE Releases Anti-Scam Guide, Enhancing User Security Protections

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15 hours ago

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November 23, 2024

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DENVER — Recently, the globally renowned cryptocurrency trading platform UVKXE has published its latest anti-scam guide to address the escalating threats of online scams, establishing a comprehensive protective barrier for users worldwide. The guide focuses on various scamming tactics prevalent in the cryptocurrency sector, highlighting what users should be aware of during transactions and asset management, while also providing effective preventive measures.

Kevin Anderson, CEO of UVKXE, noted: “As the cryptocurrency market continues to expand, more cybercriminals are turning their attention to cryptocurrency users, developing sophisticated scam techniques. As a well-known platform in the cryptocurrency trading field, UVKXE has a responsibility to help users identify and mitigate these potential risks. Through the release of this anti-scam guide, we aim to further enhance user awareness and safeguard their digital asset security.”

The guide outlines the common characteristics of these scams, such as phishing emails that typically use UVKXE or similar official-sounding names, along with forged logos and links, to deceive users into providing their login credentials and sensitive information. It also advises users to always choose official channels when downloading applications to avoid malicious software. Furthermore, UVKXE emphasizes that the platform will never proactively request users to provide sensitive information such as passwords or verification codes in any form.

In addition to the anti-scam guide, UVKXE will launch a series of interactive activities, utilizing community forums and video tutorials to educate users about safety knowledge and help them recognize and respond to potential threats. The UVKXE security team stated that these activities will not only provide real-time updates on scams but also offer users opportunities for direct communication and inquiries.

The investment in technology and education is reflected not only in the publication of the anti-scam guide but also in daily operations and maintenance. Kevin Anderson concluded: “Every protective measure and security technology implemented by UVKXE is designed to ensure the safety of user assets. In the future, we will continue to advance this mission, providing users with safer and more convenient cryptocurrency trading services.”

Media Contact:
Company Name: UVKXE CRYPTO TECH CO.,LTD.
Company website: https://www.uvkxe.co
Contact person’s full name: Mayang
Email id: mayang@uvkxe.co

Disclaimer: This content is provided by sponsor. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

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Press Release

UVKXE Clarification Statement: A Legally Compliant Trading Platform with International Accreditation

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15 hours ago

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November 23, 2024

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DENVER — Recently, the Securities Commission Malaysia (SC) published a list on its official website of cryptocurrency trading platforms that have not met its local registration requirements, mentioning UVKXE. UVKXE takes this matter seriously and wishes to clarify its credentials and compliance status to its users.

Global Compliance Credentials of UVKXE

UVKXE is committed to operating under legal and compliant principles, upholding a user-first core value. The platform has obtained several certifications from international authoritative regulatory bodies, including but not limited to:

U.S. MSB License
UVKXE has obtained the MSB license issued by the U.S. FinCEN. This certification represents the highest recognition by the U.S. government for financial service institutions, ensuring that UVKXE can legally conduct cryptocurrency-related business.

U.S. SEC License
As one of the few cryptocurrency trading platforms registered with the U.S. Securities and Exchange Commission (SEC), UVKXE complies with securities and investment-related legal regulations, providing users with a safer and more transparent investment environment.

Background on the Malaysian Public List

The list published by the Securities Commission Malaysia mainly targets trading platforms that have not met local registration requirements, such as Binance and Bursa Malaysia, rather than denying the platform legality. UVKXE has obtained multiple authoritative licenses internationally, and its compliance is beyond doubt. UVKXE is in communication with relevant departments to understand local specific regulations and to advance the registration process, ensuring compliance with local market requirements.

Commitment to Legal Compliance and User-Centric Values

UVKXE will use this event as an opportunity to further enhance its global compliance framework, actively adapting to regulatory environments in various countries, and providing users with more professional and diversified financial services. We sincerely thank all users for their trust and support! UVKXE promises that no matter where it operates, the platform will always adhere to the core philosophy of “user-first”, moving together with global users towards a safer, more open, and transparent new era of the digital economy.

Media Contact:
Company Name: UVKXE CRYPTO TECH CO.,LTD.
Company website: https://www.uvkxe.co
Contact person’s full name: Mayang
Email id: mayang@uvkxe.co

Disclaimer: This content is provided by sponsor. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

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Press Release

UVKXE Strengthens Security Strategy, Leading Innovations in Anti-Scam Technology for Crypto Platforms

Published

15 hours ago

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November 23, 2024

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DENVER — Recently, the globally recognized cryptocurrency trading platform UVKXE officially announced the completion of its latest security system upgrade. This upgrade significantly enhances the cybersecurity defenses of the platform and introduces cutting-edge anti-scam technologies. Through this technological update, UVKXE demonstrates its commitment to user asset security and proactive measures against potential future cyber threats.

Kevin Anderson, CEO of UVKXE, stated: “User trust is the foundation of UVKXE, and ensuring the security of user assets is always our top priority. This security system upgrade incorporates AI deep learning, real-time risk control, and efficient anomaly detection algorithms, aiming to create a safe and trustworthy trading environment for users. We will continue to optimize the security measures for user assets, ensuring that every user can trade confidently on UVKXE.”

The focus of this security system upgrade is primarily on anti-scam technologies. In response to the ever-evolving online threats and scam tactics in recent years, UVKXE has strengthened its multi-layered protective mechanisms, effectively enhancing the security and responsiveness of the system. The upgrade introduces AI-driven anti-scam technology, which intelligently analyzes user behavior through deep learning algorithms, allowing for rapid identification and isolation of suspected scamming activities. The AI anti-scam system can monitor and analyze large volumes of trading data in real time, immediately freezing any suspicious transactions or account activities to safeguard user assets.

Kevin Anderson further explained: “Traditional anti-scam methods often rely on post-event analysis, whereas the new system of UVKXE can identify risks promptly before incidents occur, taking immediate action to prevent losses.”

In terms of anomaly detection, the system of UVKXE combines the transaction histories, asset conditions, login locations, and other multidimensional data of users to accurately pinpoint potential security vulnerabilities. Through anomaly detection technology, each user login and transaction can be monitored in real time, with timely alerts prompting users to confirm actions, further enhancing the security of the platform.

Kevin Anderson concluded: “We hope every user can enjoy a secure trading experience on UVKXE. By continually optimizing our security strategies, we aim to provide a safer and more convenient cryptocurrency trading experience for our users.”

Media Contact:
Company Name: UVKXE CRYPTO TECH CO.,LTD.
Company website: https://www.uvkxe.co
Contact person’s full name: Mayang
Email id: mayang@uvkxe.co

Disclaimer: This content is provided by sponsor. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

About Author

Cloud PR Wire

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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.

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