IMPRO PRECISION (01286) announced its mid-year results for 2026, reporting a profit attributable to shareholders of HKD 421 million, a year-on-year increase of 21.6%.

IMPRO PRECISION (01286) announced its performance for the six months ended June 30, 2026, with revenue reaching HK$3.018 billion, a year-on-year increase of 23.2%; the profit attributable to shareholders was HK$421 million, up 21.6%; basic earnings per share were HK$0.222, and an interim dividend of HK$0.08 per share is proposed. In the first half of 2026, despite multiple challenges posed by the global economy and geopolitical situations, the group achieved significant growth, driven by its "global layout" and the efficient advancement of "diversified terminals." During the period, the momentum of artificial intelligence development and strong demand for data centers propelled continuous growth in related businesses, particularly in the liquid cooling system segment, which saw robust demand, resulting in a remarkable year-on-year increase of 107.6% in the diversified industrial - other terminal market revenues. In the energy terminal market, the demand for industrial gas turbines was buoyed by the needs of data centers, leading to an impressive year-on-year revenue jump of 83.7%. Additionally, the demand for high-power engines, a key component of distributed power generators, continued to rise, driving the revenue of the high-power engine terminal market to grow significantly by 23.7% year-on-year. The recreational boats and vehicles terminal market benefitted from clients reorganizing their supply chains, allowing the group to capture more market share, resulting in a substantial year-on-year revenue increase of 57.4%. The aviation terminal market saw a strong year-on-year sales rise of 34.6% due to supply chain capacity shortages and lower sales in the first half of 2025 affected by tariffs. The construction machinery terminal market also experienced a strong year-on-year revenue growth of 34.2%. On the profit side, in preparation for a significant sales ramp-up in the second half of this year and next year from the group's SLP park in Mexico, the employee count at the Mexico SLP park rose sharply by over 600 to more than 2,000 employees. Although employee turnover rates have declined, they remain at a high level, resulting in a substantial net loss during the period that was significantly higher compared to the same period in 2025. Furthermore, the group's factory in Turkey suffered a significant decline in profit, nearing a loss, due to the dual impact of prolonged high inflation over the past few years and a weak European passenger car market. Additionally, the average exchange rates of the RMB and Mexican Peso against the HKD appreciated by 4.7% and 11.9%, respectively, resulting in an exchange loss of HK$67.7 million in the first half and increased costs. Despite facing these challenges, the performance of the Chinese factory remained outstanding, with strong profit growth effectively offsetting the above factors, leading to a 20.4% increase in adjusted profit attributable to shareholders during the period.