March 9, 2026
HONG KONG, Mar 10, 2026 - (ACN Newswire via SeaPRwire.com) – Impro Precision Industries Limited ("Impro" or the "Group”) (Stock Code: 1286), a world-leading manufacturer of high-precision, high-complexity, and mission-critical components, today announced its annual results for the year ended 31 December 2025 (the “Year”).In 2025, the revenue of the Group amounted to HK$5,095.5 million, representing a year-on-year increase of 8.7%. Profit attributable to shareholders of the Company amounted to HK$726.2 million, representing a year-on-year increase of 12.7%, while adjusted profit attributable to Shareholders amounted to HK$689.9 million, representing a year-on-year increase of 12.1%. Both set new records. Taking into account the sound cash flow position and business prospects of the Group, the Board resolved to declare a second interim dividend of 8.0 HK cents per share for 2025. Together with the first interim dividend of 8.0 HK cents per share for 2025 already distributed, dividend per share for the Year amounted to 16.0 HK cents. The Group’s robust financial performance, coupled with its forward-looking global footprint and diversified end-markets advantages, successfully attracted capital from Hong Kong, overseas, and the Chinese Mainland to purchase the Group’s shares during the Year. In 2025, the Group’s share price increased significantly by approximately 1.5 times compared to the end of 2024.During the Year, the artificial intelligence boom, significant fluctuations in U.S. tariff policies and ongoing geopolitical conflicts continued to intertwine, profoundly affecting the global market landscape and trends. By virtue of its solid business foundation and its enduringly effective strategies of “Global Footprint”, “Region for Region Manufacturing” and “Dual Source Production”, the Group successfully mitigated market risks and achieved growth in its results. In 2025, the development momentum of artificial intelligence remained strong, driving continued growth in demand for related data centers. As a key component of distributed power generators, the demand for high horsepower engines rose significantly, leading to a substantial year-on-year increase of 43.3% in the Group’s sales in the high horsepower engine end-market. This market became the Group’s largest sub-sector end-market in terms of sales during the Year, accounting for 22.1% of total revenue. Meanwhile, the growth in demand for liquid cooling systems related to artificial intelligence data centers was also very strong, driving a substantial year-on-year increase of 38.4% in revenue from the diversified industrials others end-market. In addition, as new products commenced mass production, revenue from the medical end-market recorded a significant year-on-year increase of 55.2%.Furthermore, as the Group’s Mexico SLP campus is still in the ramp-up stage, with high employee turnover leading to rising scrap rates, it continued to record a relatively large net loss during the Year. Although overall operations still face numerous uncertainties, the strategic value and commercial potential of the Mexico SLP Campus within the Group’s “Global Footprint” will gradually become apparent, with its long-term development potential and contribution worth expecting. In terms of internal management, as more employee dormitories in Mexico are successively put into use, it is expected that the issue of employee turnover will be effectively alleviated. Moreover, to seize the opportunities from the rapid growth of the global investment casting market and to meet strong customer demand, the Group will moderately increase the capital expenditure of the aerospace plant in the Mexico SLP Campus. Subject to prudent assessment, the Group will continue to seek opportunities to expand production capacity and process categories, aiming to share in the dividends of market growth. The Group expects capital expenditure for 2026 to be approximately HK$850 million, of which more than three-quarters will be allocated to the Mexico SLP Campus, with the remainder to be primarily invested in our plants in China.In addition, most of the plants in China have maintained stable operations and continued to achieve stellar financial performance and significant profit growth. With the successful relocation of Foshan Ameriforge (Plant 12) to Nantong and the gradual stabilization of its operations, the plant has demonstrated a steady growth trend in its performance. Plant 8 for surface treatment in Nantong is expected to achieve a turnaround to profitability in 2026.Looking ahead to 2026, in view of the expected continued strong growth of artificial intelligence data centers related products, coupled with a large number of new orders at the Mexico SLP Campus and the recovery of demand in certain end-markets, the Group’s sales revenue growth rate is expected to accelerate over the next two to three years. Based on the Group’s outstanding orders on hand and the progress of future new project development, the Group forecasts that the year-on-year sales growth rate in 2026 will be approximately mid-double digits.The Group expects the diversified industrials sector to continue to demonstrate robust growth momentum. In the high horsepower engine sector, as products are upgraded from castings and rough machining to a higher proportion of deep processing and partial full-finishing, combined with the successive mass production for new projects involving both existing and new customers, and with the large-scale sand casting workshop in Phase II of the Mexico SLP Campus commencing mass production in the middle of this year to provide more capacity, it is expected that high horsepower engine-related components will embark on a new growth curve starting from 2026.The aerospace, energy and medical sector will become one of the Group’s primary growth engines in the future. In the aerospace end-market, the Mexican plants obtained the initial phase of AS9100 quality system certification in January 2026. As aerospace products involve various specialized processes, it is expected that the relevant certifications will be completed successively in the second half of 2026, and mass production will gradually commence. In the medical end-market, the Group will continue to develop surgical robots and related products, which are expected to demonstrate certain growth potential in the coming years.According to industry forecasts, the global investment casting market is set to grow from approximately US$17.5 billion in 2025 to more than US$23.8 billion in 2031, of which approximately US$4 billion will be coming from the aerospace, energy and medical sector. To capture this market opportunity and gain a share of the market growth, the Group is continuously evaluating a potential spin-off and separate listing of the aerospace, energy and medical sector, as well as various other feasible financing options to support the expansion of future production capacity and process categories and make forward-looking preparations for the long-term sustainable development of the aerospace end-sector.To actively explore and lay out the medium-to-long-term growth momentum, the Group has formally established the “Future Business Unit”, which focuses on identifying and evaluating emerging market opportunities that align with the Group’s strategic direction, with the aim of cultivating potential growth projects for the Group and continuing to explore new opportunities amid future industry trends. The “Future Business Unit” will serve as a key innovation engine, assisting the Group’s existing “Aerotek Business Unit”, “Fluidtek Business Unit” and “Mechatek Business Unit” in enhancing market share and global industry status amidst dynamic competition and laying the foundation for the next stage of advancement.Mr. Lu Ruibo, Chairman and Chief Executive Officer of Impro, said, “Looking ahead, the Group will focus on the three core strategies of ‘Global Footprint’, ‘Diversified End-market’ and ‘Twin Growth Engine’, while simultaneously promoting the expansion of the diversified industrials, aerospace, energy, medical and automotive end-markets, and precisely seizing the strategic opportunities brought by the artificial intelligence. Meanwhile, the Group will continue to optimize its global production capacity allocation, give full play to the advantages of its global footprint, and actively promote end-market diversification and regional production synergy. In addition, the Group will continue to seek merger and acquisition opportunities with synergistic effects, strengthen its research and development and technical capabilities, drive continuous improvement of the Group’s results by providing diversified, high-quality products and services, and strive to create stable and growing returns for shareholders.” Copyright 2026 ACN Newswire via SeaPRwire.com. All rights reserved. www.acnnewswire.com
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