News

(Hong Kong, 28 June 2024) – Impro Precision Industries Limited (“Impro” or the “Group”) (Stock Code: 1286), a world-leading manufacturer of high-precision, high-complexity, and mission-critical components, celebrated today the fifth anniversary of its listing on the Main Board of the Hong Kong Stock Exchange.

Since IPO, Impro has been actively expanding its business and pushing for better development, thus delivering resilient business performance. The Group’s total revenue increased 26.5% from HK$3,640.2 million in 2019 to HK$4,604.4 million in 2023. Out of which, the revenue from the aerospace, energy and medical end markets recorded a notable 55.1% leap from HK$448.8 million to HK$696.1 million. In addition, the Group has reported strong cash flow and is happy to share its achievements by rewarding shareholders. In the past five years, the Group distributed more than HK$1 billion cash dividends to shareholders, exceeding 40% of its adjusted profit attributable to shareholders during the same period. That amount also exceeded the IPO proceeds in 2019.

Over the past five years, despite facing various adversities and challenges such as the pandemic and the lack luster macro-environment, the Group has continued to forge ahead and maintain the pace of expansion of its business and production capacity. Currently, Impro has 21 manufacturing plants in China, Germany, Turkey, the Czech Republic and Mexico, a remarkable increase from 15 plants in 2019. At the same time, it has kept strengthening presence in Mexico, invested more than HK$1.6 billion in capital expenditures in the past five years in building a self-owned Mexican SLP campus which includes precision machining plant, sand casting plant, investment casting plant, aerospace component plant and surface treatment plant. That campus has greatly enhanced the production capacity and competitiveness of Impro in North America, thus allowed the Group to effectively hedge against geopolitical risks, letting it continue to grow its global business footprint. Expecting significant growth for the Mexico SLP campus in the future, the Group started deploying for second phase plant construction of the campus to more aggressively bolster its competitive advantages in terms of location and productivity. In the next few years, overseas manufacturing plants when operating at full capacities will account for close to 50% of the Group’s total production capacity.

In addition, upholding its “Twin Growth Engines” strategy, the Group made two acquisitions in aerospace and hydraulics in 2022 for a total consideration of HK$550 million. The first being Foshan Ameriforge Manufacturing Technology Co., Ltd. mainly engaging in high-precision and high-complexity mission critical parts and assemblies for end markets such as commercial aircrafts, industrial gas turbines and oil and gas equipment, and the second was the hydraulic orbital motors business of Danfoss Power Solutions (Jiangsu) Co., Ltd. These two acquisitions successfully expanded its sales network and customer resources, drove sales performance in relevant end markets, produced comprehensive synergies in supply chain management and global footprint, bringing more stable development to the Group.

Mr. Lu Ruibo, Chairman and Chief Executive Officer of Impro, said: “While celebrating its fifth listing anniversary, Impro remembers the efforts it had made over the past five years amid facing challenging business environment. By adhering to its strategy direction and maintaining stable operations, it achieved satisfactory results over that period. We sincerely thank all our employees and business partners for being with us all the way. Looking ahead, the Group will continue to leverage the unique advantages of its three core strategies – ‘Global Footprint’, ‘Diversified End-markets’ and ‘Twin Growth Engines’, and provide the Group with solid business fundamentals, excellent flexibility, and strong operational resilience, create a brighter and more brilliant future.”