HONG KONG SAR – Media Outreach – August 8, 2023 –
Improv Precision Industries Limited (“Accuracy improvement“or the”Band“) (Stock Code: 1286), a world leader in the manufacture of high precision, high complexity and critical components, today announced its interim results for the six months ended June 30, 2023 (“First Half 2023” or the “Period”).
In the first half of 2023, the Group’s revenue amounted to HK$2,404.8 million, an increase of 9.7% compared to the same period last year. Profit attributable to shareholders of the Company was HK$303.2 million, an increase of 13.3% over the same period last year. Given the Group’s good cash position and business outlook, the Group has decided to declare an interim dividend of HK$0.08 per share for the six months ended June 30, 2023.
During the period, the aerospace, energy and medical end markets experienced strong growth, with revenues surging to HK$319.8 million, an increase of 67.3 % year-on-year. The outstanding performance is mainly attributable to the recovery of the global aerospace market, the increase in market share and the development and mass production of new products, associated with a significant increase in the turnover of the aerospace and energy end markets in the first half of this year. by the strong sales growth of Foshan Ameriforge acquired last year.
In addition, the Group’s diversified industrial activity also maintained solid growth. Revenue from this segment increased 10.5% year-on-year to HK$1,184.1 million compared to last year. Among which, revenue from construction equipment, heavy duty engine and agricultural equipment end markets increased 27.7%, 20.7% and 16.3% year-on-year, respectively, to 402.2 million HK$, 251.8 million HK$ and 206.0 million HK$, respectively. The heavy-duty engine end market primarily benefited from growing demand for heavy-duty equipment, while the increased revenue in the construction equipment and agricultural equipment end markets was primarily driven by activity. of hydraulic orbital motors acquired in the second half of last year as well as the growing demand for construction equipment in the United States.
As the global economy emerges from the haze of the COVID-19 pandemic, a number of end markets have gradually recovered, among which the aerospace and energy end markets have rebounded with particularly strong momentum. , further emphasizing the Group’s vision and advantages in strengthening its presence in the aerospace industry. During the COVID-19 pandemic, Impro identified the aerospace end-market development opportunity and proactively set up the “Aerotek Business Unit” to prepare for the recovery. As the international aerospace market has fully resumed normal operation and the number of competitors in the aerospace supply chain has decreased significantly, it is estimated that the Group will be able to fully seize the opportunity recovery and support significant growth in the aerospace industry. market business. In order to promote the rapid development of the “Aerotek Business Unit”, the Group is looking for suitable intermediary agencies to assess and define the scope of activity of the “Aerotek Business Unit”, and plans to study the feasibility of a spin-off. off and independent listing and the relevant advantages and disadvantages for the Group as its commercial development matures.
Looking forward to the second half of 2023, the global economy will remain exposed to a number of uncertainties. Demand in European and American markets has become volatile since the second quarter due to high inflation and the ongoing Russian-Ukrainian war, while the slowdown in the Chinese market recovery from the second quarter has put the Group activity under pressure. Fortunately, thanks to the success of its “Global Footprint” and “Diversified End-markets” strategies, the Group will be able to diversify its activities and effectively protect itself against the associated risks. On the strength of its good operational resilience and its unique strengths, the Group remains confident that it will maintain satisfactory growth in its business outlook. Still, it will remain cautious in some end markets around the world. As of July 31, 2023, the Group’s total outstanding order to be fulfilled over the next twelve months reached HK$4,046 million, an increase of 11.4% year-on-year.
Mr. Lu Ruibo, CEO of Improsaid: “Going forward, the Group will continue to leverage its manufacturing and sales network in Asia, Europe and the United States and continue to expand its core businesses. Efforts will be made to seize market development opportunities and address challenges through the strategy of “Global Footprint”, “Diversified End-Market” and “Twin Growth Engine”. In addition, the Group will explore acquisition targets likely to create synergies with the aim of expanding its activities. Besides consolidating its leading position, the Group will also strive to provide its customers with diversified and high-quality products and services and to bring desirable returns to its shareholders. »
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The issuer is solely responsible for the content of this announcement.
