Impro (1286.HK) Issues Positive Profit Alert
- Written by Daily Sun
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."Hashtag: #Impro
The issuer is solely responsible for the content of this announcement.
About Impro
Impro Precision Industries Limited was established in Wuxi, China in 1998 and its headquarters was moved to Hong Kong, China in 2011. It is a global top-ten manufacturer of high-precision, high-complexity and mission-critical casting, machined components and hydraulic orbital motors for diversified end markets. According to market research, Impro Precision was the world's sixth-largest independent and China's largest investment casting manufacturer and also the world's fourth-largest precision machining company in the end markets of automotive, aerospace and hydraulics, each in terms of total revenue in 2021. The Group is also one of the few domestic suppliers offering one-stop solutions, including initial research and development, tooling design and manufacturing, casting, heat treatment, secondary machining and surface treatment. Impro Precision has established a global manufacturing layout and comprehensive service network. It has 21 production facilities in China, Germany, Turkey, the Czech Republic and Mexico, which are supported by 9 sales offices in China, the US, Luxembourg, Turkey, Germany, Mexico and Hong Kong, as well as warehousing capacities in China, North America, Luxembourg, Mexico, Germany and Turkey. Impro Precision has established long-term strategic cooperative relationships with a number of globally recognized industry leaders, selling its products in more than 30 countries and regions.