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Impro 鷹 普 精密 工業 有限公司 Impro Precision Industries Limited ( Incorporated in the Cayman Islands with limited liability ) Stock Code : 1286 2026 INTERIM RESULTS PRESENTATION August 11 , 2026
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2 Disclaimer The information set forth in this presentation relates to the business of Impro Precision Industries Limited (the “Company”, together with its subsidiaries, the “Group”) for the six months ended June 30, 2026. This presentation is intended to provide updated information on the Group for the six months ended June 30, 2026 and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities of any member of the Group. The information in this presentation is in summary form and is not a complete description of the business and the operating results of the Group for the six months ended June 30, 2026. No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information herein contained. For more detailed information of the annual results of the Group for the six months ended June 30, 2026, please refer to the 2026 interim results announcement of the Group published on the websites of The Stock Exchange of Hong Kong Limited and the Company. This presentation contains certain forward-looking statements with respect to the financial conditions, operating results, and business of the Group and certain plans and objectives of the management of the Group. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Group to be materially different from any future results of performance expressed or implied by such forward looking statements. Accordingly, you should not place reliance on any forward-looking information or statements.
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3 Significant Revenue Growth amid Robust AI-related and other End-Markets Momentum 1H/2026 Results Summary Gross Profit Margin Increases & Record High Profit attributable to Shareholders • 1H/2026 Group revenue increased by 23.2% y-o-y to HK$3,018.0M • Demand for liquid cooling systems grew particularly strong, driving remarkable revenue growth in Diversified Industrials - Others end-market by 107.6%; revenue from Energy end-market surged 83.7% while revenue from HHPE end-market increased significantly by 23.7% • Recreational Boat and Vehicle end-market benefited from customers‘ supply chain restructuring, revenue increased sharply by 57.4% as market share gains. Sales in Aerospace and Construction Equipment end-markets recorded strong growth of 34.6% and 34.2% respectively Capitalizing on Huge Growth Opportunities in AI-related, Aerospace & Energy End-Markets • Group GPM up 0.6% to 28.4%, with GPM of SC up 2.1% to 32.4%, driven by a significant increase in revenue of HHPE end-market • China plants reported robust financial results; Turkey plants profit dropped sharply to bare breakeven amid high inflation and weak Passenger Car end-market demand; Mexico plants net loss widened as sales continued to ramp up • Profit attributable to shareholders up 21.6% to HK$421.0M; adjusted for significant one-off items, adjusted profit attributable to shareholders up 20.4% to HK$433.1M • OCF increased by 24.1% to HK$689.1M in 1H/2026, driven by effective control of working capital management as both DIV and DSO remained stable • 2026 interim dividend at HK$0.08/share, or total HK$155.8M, equivalent to 36.0% dividend payout based on adjusted profit attributable to shareholders • Successfully raised ~HK$680M through top-up placement and the employee share ownership scheme in 1H/2026, strengthening the Group’s financial position and laying a solid foundation for future growth • Demand from AI-related data centers remains robust, driving sustained growth in demand for HHPE and liquid cooling system components. With the Phase II SC workshop at Mexico SLP Campus scheduled to begin commercial production in 3Q or 4Q 2026, supported by a significant ramp-up in capacity at IC plant in Mexico SLP Campus, the Group’s sales growth is expected to accelerate in 2H/2026 • Aerospace and ST plants in Mexico are actively pursuing multiple NADCAP certifications for special processes, which are expected to be completed progressively in 2H/2026, paving the way for production ramp-up Growing Operating Cash Flow & Stable Dividend Payout
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4 Revenue by End-Markets 1H/20261H/2025 1H/2025 1H/2026 Inc/(Dec) By End-Markets HK$ mil HK$ mil HK$ mil Change Diversified Industrials 1,293.8 1,794.6 500.8 38.7% Automotive 802.2 735.2 (67.0) -8.4% Aerospace, Energy & Medical 353.9 488.2 134.3 37.9% Total 2,449.9 3,018.0 568.1 23.2%
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5 Revenue by End-Markets 1H/2025 1H/2026 Inc/(Dec) By End-Market HK$ mil HK$ mil HK$ mil Change Diversified Industrials 1,293.8 1,794.6 500.8 38.7% - High Horsepower Engine 533.7 660.3 126.6 23.7% - Construction Equipment 339.1 455.0 115.9 34.2% - Agricultural Equipment 154.6 160.8 6.2 4.0% - Recreational Boat & Vehicle 68.7 108.1 39.4 57.4% - Others 197.7 410.4 212.7 107.6% Automotive 802.2 735.2 (67.0) -8.4% - Commercial Vehicle 379.0 403.9 24.9 6.6% - Passenger Car 423.2 331.3 (91.9) -21.7% Aerospace, Energy & Medical 353.9 488.2 134.3 37.9% - Aerospace 239.1 321.9 82.8 34.6% - Energy 54.1 99.4 45.3 83.7% - Medical 60.7 66.9 6.2 10.2% Total 2,449.9 3,018.0 568.1 23.2%
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6 Revenue by Business 1H/2025 1H/2025 1H/2026 Inc/(Dec) By Business HK$ mil HK$ mil HK$ mil Change Investment Casting 922.6 1,161.7 239.1 25.9% Sand Casting 695.2 911.0 215.8 31.0% Precision Machining & Others 793.3 907.7 114.4 14.4% Surface Treatment 38.8 37.6 (1.2) -3.1% Total 2,449.9 3,018.0 568.1 23.2% 1H/2026
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7 Revenue by Geographical 1H/2025 1H/2026 Inc/(Dec) By Geographical HK$ mil HK$ mil HK$ mil Change Americas 1,156.6 1,461.8 305.2 26.4% - United States 998.1 1,279.8 281.8 28.2% - Others 158.5 182.0 23.5 14.8% Asia 560.1 842.4 282.3 50.4% - PRC 507.5 768.6 261.1 51.4% - Others 52.6 73.8 21.2 40.3% Europe 733.2 713.8 (19.4) -2.6% Total 2,449.9 3,018.0 568.1 23.2% 1H/2025 1H/2026
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1H/2026 Financial Review
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9 1H/2026 Financial Review 1H/2025 1H/2026 Financial Highlights HK$ mil HK$ mil Change Revenue 2,449.9 3,018.0 23.2% Gross profit 681.5 856.8 25.7% Gross profit margin 27.8% 28.4% 0.6% Other revenue 12.7 19.2 51.2% Other net income/(loss) 24.1 (66.1) -374.3% Selling and distribution expenses (94.4) (78.5) -16.8% Administrative and other operating expenses (162.1) (195.7) 20.7% EBITDA 715.3 828.4 15.8% EBITDA margin 29.2% 27.4% -1.8% Profit att. to shareholders of the Company 346.3 421.0 21.6% Adj. Profit Attr. to shareholders of the Company 359.6 433.1 20.4% Adjusted basic EPS (HK cents) 19.10 22.80 19.4% DPS (HK cents) 8.0 8.0 0.0%
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10 317.1 409.2 210.5 295.5 145.6 140.8 8.3 11.3 27.8% 28.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% - 300.0 600.0 900.0 1,200.0 1H/2025 1H/2026 681.5 856.8 Gross Profit Gross Profit Margin Gross profit margin of each segment indicated by the segment’s color Sand CastingInvestment Casting Precision Machining and Others Surface Treatment HK$'mil 21.4% 18.4% 30.3% 34.4% 15.5% 32.4% 35.2% 29.9%
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11 Cost of Sales Analysis Staff CostsCost of materials (raw materials & auxiliary materials) Energy and Utilities Depreciation Others Percentage of Cost of Sales indicated by the expense’s color 736.6 856.1 457.5 585.5 161.3 182.8 112.0 133.8 301.0 403.0 1,768.4 2,161.2 - 500.0 1,000.0 1,500.0 2,000.0 2,500.0 1H/2025 1H/2026 6.3% 17.0% 9.1% 25.9% 41.7% 6.2% 18.6% 8.5% 27.1% 39.6% HK$'mil
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12 162.1 195.7 6.6% 6.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% - 50.0 100.0 150.0 200.0 250.0 300.0 1H/2025 1H/2026 Administrative and Other Operating Expenses Admin. and other Op. Exp Admin. and other Op. Exp as % of revenue 94.4 78.5 3.9% 2.6% -2.0% 0.0% 2.0% 4.0% - 50.0 100.0 150.0 1H/2025 1H/2026 Selling and Distribution Expenses S&D Exp S&D Exp as % of revenue Operating Expenses Analysis HK$ mil HK$ mil
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13 1,352.5 1,450.0 1,636.1 28.9% 28.5% 28.9% 0% 5% 10% 15% 20% 25% 30% 0 300 600 900 1,200 1,500 1,800 2,100 12/31/2024 12/31/2025 6/30/2026 Total WC as a % of RevenueHK$ mil 1,052.2 1,077.8 1,172.3 118 114 102 - 30 60 90 120 - 300 600 900 1,200 1,500 1,800 12/31/2024 12/31/2025 6/30/2026 Inventory Turnover Days (Average) DaysHK$ mil 588.6 644.8 849.7 59 61 63 - 10 20 30 40 50 60 70 - 200 400 600 800 1,000 12/31/2024 12/31/2025 6/30/2026 Trade Payable Turnover Days (Average)HK$ mil Days 1,120.6 1,337.6 1,633.9 87 89 90 - 15 30 45 60 75 90 - 400 800 1,200 1,600 2,000 12/31/2024 12/31/2025 6/30/2026 Trade and Bills Receivable Turnover Days (Average) DaysHK$ mil Key Working Capital Ratios
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14 393.1 341.5 191.4 197.2 650.0 319.9 291.2 706.3 425.7 850.0 713.0 632.7 897.7 622.9 0.0 300.0 600.0 900.0 1,200.0 1,500.0 1,800.0 FY2023 FY2024 FY2025 1H/2026 FY2026 Actual and Forecast Capex in FY2023-FY2026HK$ mil 1,500.0 Capital Expenditure Capex (ex Mexico) as % of RevenueForecast CapexActual Capex MexicoGroup (ex Mexico) 8.5% 7.3% 3.8% 6.5%
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15 Key Financial Ratios 7.4 9.9 11.1 - 5.0 10.0 15.0 FY2024 FY2025 1H/2026 Interest Coverage X 1.2 1.2 0.8 - 0.5 1.0 1.5 2.0 FY2024 FY2025 1H/2026 Net Debt / L12M Adj. EBITDAX 33.6% 30.4% 18.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% FY2024 FY2025 1H/2026 Net Gearing Ratio 12.8% 13.4% 12.7% 0.0% 5.0% 10.0% 15.0% 20.0% FY2024 FY2025 1H/2026 Adjusted Return on Shareholders' Equity
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Business Outlook
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17 Mexico SLP Campus Construction Update SC Plant IC Plant PM Plant Aerospace & ST Plant (Photo taken on Jul 29, 2026) (Photo taken on Mar 7, 2026) SC Plant IC Plant PM Plant Aerospace & ST Plant ⚫ Mexico SLP Campus Precision Machining (PM), Sand Casting (SC) and Investment Casting (IC) plants are now fully operational, Aerospace component and Surface Treatment (ST) plants obtained the 1st phase of AS9100 quality system certification for aerospace applications in Jan 2026. As multiple special processes involved in aerospace products, NADCAP certification and customer certification are expected to be obtained in 2H/2026 ⚫ Large SC workshop at the Phase 2 of Mexico SLP Campus is scheduled to begin mass production in 3Q or 4Q/2026. Together with significant ramp-up in capacity at the IC plant, the Group’s sales growth is expected to accelerate in 2H/2026 ⚫ Latest 2026 capex budget for the Mexico plants increased by HK$200M to ~HK$850M, including capex of Phase 2 of the Campus construction, Phase 2 living facilities, and new machinery and equipment. Revenue from the Mexico SLP Campus is expected to grow strongly in coming years
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18 Business Outlook ⚫ Global economy is expected to remain volatile amid multiple pressures, including geopolitical conflicts in the Middle East, fluctuations in energy costs, and the continued rise of trade protectionism. The direction of U.S. tariff policies is also adding uncertainty to the global trading system ⚫ Current trade environment highlights the advantages of Impro's long-standing “Global Footprint” and “Diversified End-markets” strategies, while supporting customers’ multi-sourcing strategies to mitigate supply chain risks ⚫ With the rapid development of AI, the demand for AI-related big data centers in the American, European and Asian markets including China, has increased significantly. This surge has stimulated the demand for HHPE and liquid cooling systems components ⚫ Given the anticipated continued strong growth in AI-related products, coupled with substantial new orders from Mexico SLP Campus and a recovery in demand in certain end-markets, the Group's sales revenue growth rate is expected to accelerate over the next two to three years ⚫ Considering the Group’s strong order backlog and future new project development progress, the Company raises 2026 full year sales forecast growth rate to between 20% and 25% y-on-y ⚫ Sound financial and cash flow position, together with ~HK$1.2B cash and HK$2.6B undrawn banking facilities provide the Group with ample financial resources to support capacity expansion. The Group also closely monitors synergetic M&A opportunities, with the aim of delivering long-term and sustainable growth return to shareholders
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Q&A Session
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Appendices – Financials Summary
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21 Appendix 1 - Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA 1H/2025 1H/2026 HK$ mil HK$ mil Change Reconciliation to Adj. Profit Attr. to Shareholders Profit after tax 347.4 422.0 21.5% Adjustments (net of tax): - Amort’n and Dep’n related to past acq’s PPA adj 13.3 12.1 Adjusted NPAT 360.7 434.1 20.3% Less: Profit Attr. to non-controlling interests (1.1) (1.0) Adjusted Profit Attr. to Shareholders 359.6 433.1 20.4%
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22 Appendix 2 – Consolidated Statement of Profit or Loss 1H/2025 1H/2026 HK$ mil HK$ mil Revenue 2,449.9 3,018.0 Cost of sales (1,768.4) (2,162.2) Gross Profit 681.5 856.8 Other revenue 12.7 19.2 Other net income/(loss) 24.1 (66.1) Selling and distribution expenses (94.4) (78.5) Administrative and other operating expenses (162.1) (195.7) Operating Profit 461.8 535.7 Net finance costs (41.0) (44.0) Profit before taxation 420.8 491.7 Income tax (73.4) (69.7) Profit for the period 347.4 422.0 Attributable to: - Equity shareholders of the Company 346.3 421.0 - Non-controlling interests 1.1 1.0 Profit for the period 347.4 422.0
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23 Appendix 3 – Consolidated Statement of Financial Position 12/31/2025 6/30/2026 HK$ mil HK$ mil Non-current assets Property, plant and equipment 5,236.2 5,712.7 Prepayments for Property, plant and equipment 18.6 119.2 Intangible assets 168.7 164.9 Goodwill 228.3 237.4 Deferred expenses 163.0 169.2 Other financial assets 1.6 1.6 Deferred tax assets 141.5 119.1 5,957.9 6,524.1 Current assets Inventories 1,077.8 1,172.3 Trade and bills receivables 1,337.6 1,633.9 Prepayments, deposits and other receivables 286.8 333.7 Taxation recoverable 8.9 15.6 Cash and cash equivalents 720.9 1,248.4 3,432.0 4,403.9 TOTAL ASSETS 9,389.9 10,928.0
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24 Appendix 3 – Consolidated Statement of Financial Position 12/31/2025 6/30/2026 HK$ mil HK$ mil Current liabilities Bank loans 1,061.1 969.0 Lease liabilities 4.4 3.5 Trade payables 644.8 849.7 Other payables and accruals 489.9 459.0 Taxation payable 20.5 14.5 2,139.7 2,295.7 Net current assets 1,292.3 2,108.2 Total assets less current liabilities 7,250.2 8,632.3 Non-current liabilities Bank loans 1,359.5 1,526.8 Lease liabilities 5.7 4.4 Deferred income 139.7 139.9 Defined benefit retirement plans obligation 58.8 55.2 Deferred tax liabilities 63.3 61.1 1,627.0 1,787.4 NET ASSETS 5,623.2 6,844.9
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25 Appendix 3 – Consolidated Statement of Financial Position 12/31/2025 6/30/2026 HK$ mil HK$ mil Capital and reserves Share capital 188.7 194.7 Reserves 5,416.1 6,540.0 Total equity attributable to equity shareholders of the Company 5,604.8 6,732.1 Non-controlling interests 18.4 110.2 TOTAL EQUITY 5,623.2 6,844.9
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26 Appendix 4 – Condensed Consolidated Cash Flow Statement 1H/2025 1H/2026 HK$ mil HK$ mil Operating activities Cash generated from operations 621.2 750.9 Tax paid (65.9) (61.8) Net cash generated from operating activities 555.3 689.1 Investing activities Payment of property, plantand equipment (400.8) (634.0) Payment for deferred expenses (43.6) (55.9) Others 5.7 8.2 Net cash used in investing activities (438.7) (681.7)
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27 Appendix 4 – Condensed Consolidated Cash Flow Statement 1H/2025 1H/2026 HK$ mil HK$ mil Financing activities Proceeds from bank loans 907.0 1,248.3 Repayment of bank loans (785.1) (1,228.1) Interest paid (46.9) (48.1) Lease rentals paid (2.4) (2.4) Proceeds from issue of ordinary shares, net of issuance costs - 539.0 Capital contributions from non-controlling interests, net of issuance costs - 138.5 Dividends paid to equity shareholders of the Company (151.0) (151.0) Dividends paid to non-controlling interest (5.3) (2.7) Net cash (used in)/generated from financing activities (83.7) 493.5 Increase in cash and cash equivalents 32.9 500.9 Cash and cash equivalents at January 1 601.7 720.9 Effect of foreign exchange rate changes 20.6 26.6 Cash and cash equivalents at June 30 655.2 1,248.4
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Thank you