Hong Kong Stock Alert | IMPRO PRECISION (01286) Falls Over 5% Again as Additional US Tariff Rates Far Exceed Group's Gross Profit Margin, Constituting Force Majeure Event

Stock News
Aug 19

IMPRO PRECISION (01286) declined over 5% again, falling 5.54% to HK$3.75 as of press time, with trading volume of HK$10.967 million.

On the news front, IMPRO PRECISION recently announced regarding the impact of US tariffs on the group's business and operations. According to the group's latest 12-month sales forecast, approximately 40% of products shipped to the US are sold to customers under "Delivered Duty Paid" (DDP) terms, meaning the group is responsible for arranging transportation and delivering goods to designated locations while completing customs clearance and paying all applicable taxes and tariffs. Among these products, approximately 60% are included in the new tariff list and subject to additional tariffs.

Since the additional tariff rates are far higher than the group's gross profit margin, the imposition of additional tariffs makes the group's supply commercially unviable and may even constitute a force majeure event. For the year ended December last year, the group's revenue from US sales accounted for approximately 44.4% of total group revenue.

As of now, the additional tariffs may impact the group's business and operations, but since negotiations are still ongoing to pass the additional tariffs to customers, the group is currently unable to make specific assessments and calculations regarding the potential impact of additional tariffs on the group.

The company will continue to closely monitor developments and will take appropriate measures when necessary to minimize the impact of additional tariffs on the group's business and operations.

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