IMPRO PRECISION (01286) announces annual performance, with a net profit attributable to shareholders of HK$726 million, an increase of 12.71% year-on-year.

IMPRO PRECISION (01286) announced its annual performance for the year ending December 31, 2025. The group achieved a revenue of HK$5.096 billion, representing a year-on-year growth of 8.72%. Shareholders' profit attributable to equity holders was HK$726 million, an increase of 12.71% compared to the previous year. Adjusted profit attributable to equity holders was HK$690 million, a growth of 12.09% year-on-year. Basic earnings per share were 38.5 HK cents. The proposed total dividend payout is 16 HK cents per share. The announcement stated that the development of artificial intelligence continued to be strong during the year, driving the ongoing growth of data center demand. The demand for high-horsepower engines as a key component of distributed power generators significantly increased, leading to a 43.3% year-on-year growth in sales in the group's high-horsepower engine terminal market. Additionally, the demand for liquid cooling systems related to artificial intelligence data centers was also very strong, driving a 38.4% year-on-year increase in revenue in the diversified industrial and other terminal markets. Furthermore, the start of mass production of new products led to a significant 55.2% year-on-year increase in revenue in the medical terminal market. However, the group's SLP park in Mexico is still in the ramp-up stage, and a high employee turnover rate has led to an increase in scrap rates, resulting in a significant net loss for the year. Fortunately, most factories in the China region continued to perform well financially, with profits achieving significant growth. Combined with a decline in financing costs, this successfully drove a 12.1% year-on-year growth in adjusted profit attributable to equity holders for 2025. The group's strong financial performance in 2025, along with its forward-looking global layout and advantage in diversified terminal market layout, attracted investment from Hong Kong, overseas, and mainland China investors during the year, resulting in a significant increase of approximately 1.5 times in the company's stock price compared to the end of 2024.