Impro (1286.HK) Issues Positive Profit Alert

HONG KONG SAR - Media OutReach - 9 January 2023 - Impro Precision Industries Limited ("Impro" or the "Group" or the "Company") (Stock Code: 1286), a world-leading manufacturer of high-precision, high-complexity and mission-critical components, is pleased to announce that the Group expects to record a net profit attributable to shareholders of the Company in the range of HK$550 million to HK$600 million for FY2022, which represents a significant year-on-year growth of between 43.6% and 56.7% as compared with a net profit attributable to shareholders of the Company of HK$383 million for the same period in 2021. The substantial increase in net profit was mainly due to strong revenue growth in the aerospace and medical end-markets, as well as good revenue growth in the industrial and other end-markets, which were sufficient to offset the revenue decline in the passenger car end-market, resulting in a year-on-year revenue growth of approximately 15% for the financial year. Expansion of operating profit margin was mainly due to economies of scale; weakening of the Renminbi against the Hong Kong Dollar; one-off gain after tax on the disposal of land, building and machinery of a plant in Germany of approximately HK$13 million, which were partially offset by a one-off impairment provision charge after tax of approximately HK$73 million against net book value of building, machinery, equipment, inventory, etc. which were damaged in a fire that occurred at the Group's Nantong plant in June 2022.

Mr. Lu Ruibo, Chairman and Chief Executive Officer of Impro, said, "In 2022, the global economy faced multiple challenges due to the resurgence of the COVID-19 pandemic, the Russian-Ukrainian war and high inflation. In the face of an extremely difficult market environment, the Group has achieved remarkable results for the year owing to its diversified end-markets and global operations, both of which are its competitive edges. During the year, the Group has continued to perfect and expand its production bases in Asia, Europe and the Americas. The Group's third plant, an investment casting plant, at its production base in Mexico was officially put into operation in November 2022, and the remaining aerospace components and surface treatment plant are expected to commence production in 2023. In addition, Impro is actively expanding into the aerospace and hydraulic markets, having acquired two related company and business last year, which will start to create strong synergies for the integration of supply chain and global market coverage. Furthermore, the recovery and development of various end-markets will continue to promote substantial development of its business and bring long-term returns to shareholders."

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The issuer is solely responsible for the content of this announcement.