* * * * *Executes "Global Footprint", "Diversified End-Market" and "Twin Growth Engine" StrategiesAchieves Satisfactory Results with Strong Resilience HONG KONG SAR - Media OutReach - 9 March 2023 - 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 2022. In 2022, the Group vigorously developed and recorded stable revenue growth in the aerospace, medical, energy, and diversified industrial end markets. The Group's revenue for the year amounted to HK$4,354.7 million, representing an increase of 15.3% compared with last year. Profit attributable to shareholders of the Company was HK$582.0 million, an increase of 52.0% over 2021. Adjusted profit attributable to shareholders of the Company amounted to HK$649.1 million, a year-on-year increase of 53.7%, and adjusted basic earnings per share were 34.5 HK cents. In lieu of the distribution of the final dividend, the Group resolved to declare a second 2022 interim dividend of 8.0 HK cents per share. Together with the first 2022 interim dividend of 8.0 HK cents per share already paid, the dividend for the year amounted to 16.0 HK cents per share, representing an increase of 58.4% when compared with 10.1 HK cents per share last year. During the year, revenue from the aerospace, medical, and energy end markets increased significantly by 53.6% to HK$515.8 million. The increase was mainly attributable to the recovery of the aerospace market following the lifting of quarantine restrictions for international visitors entering certain countries in Europe, the US, and Asia, as well as the Group's efforts to jointly develop a large number of new SKUs with its customers in the aerospace end market over the past two years, which helped customers solve supply chain shortages. As a result, revenue from the aerospace business increased 52.8% year-on-year to HK$290.9 million. The medical end market benefited from increased demand for different medical equipment, driving its sales revenue up 32.1% to HK$152.4 million. Higher global energy prices and the Group's acquisition of Foshan Ameriforge in August 2022 drove significant sales growth in the energy end market, with sales revenue climbing 141.7% year-on-year to HK$72.5 million. The Group's diversified industrial end markets also performed well, with revenue up 24.5% year-on-year to HK$2,139.4 million. In particular, increased investment in infrastructure projects and other economic stimulus policies introduced by the US government supported the demand for high horsepower engines, with revenue from this segment rising 38.1% year-on-year to HK$463.1 million. New product development and increased market share drove sales in the recreational boats and vehicles end market up 31.2% to HK$248.2 million. Revenue from the agricultural equipment end market increased by 29.1% to HK$353.3 million, while the commercial vehicle end market also benefited from growing demand in the US and Europe, driving its sales revenue up by 18.7% during the year. Amid the complex and volatile business environment in 2022, lmpro's visionary "Global Footprint", "Diversified End­ Markets" and "Twin Growth Engine" strategies enabled it to combat geographical risks and effectively hedge against cycles and volatility in different end markets, resulting in considerable growth in business results during the year. The investment casting plant, the third plant at the Mexico SLP campus, officially commenced operation in November 2022. Together with the precision machining plant and sand casting plant, which began operation in 2021, the campus is increasingly crucial to the Group's global production capacity. Construction and installation of machinery and equipment are also underway at the remaining aerospace component and surface treatment plants, which are expected to begin trial production and obtain aerospace system certification in 2023. In addition to optimizing its production footprint in Asia, Europe and the US, the Group also actively implemented its "Region for Region Manufacturing" and "Dual Source Production" strategies, which can effectively reduce potential supply chain and tariff risks faced by its customers due to geopolitics and continue to help the Group expand its market share in North America. The gradual reopening of borders around the world last year and the significant relaxation of travel restrictions in the PRC in early 2023 point to a full recovery of the international aerospace market. The Group expects sales in the aerospace end market to continue to experience strong growth between 2023 and 2024. Amid the pandemic, the Group has been actively planning forward-looking deployment in the...

Read more: Impro (1286.HK) 2022 Annual Revenue Up 15.3% YoY to HK$4,354.7 million