Impro Precision Industries Limited · HKEX:1286
Impro Precision Industries — H1 2025 Earnings Presentation
28 slides from Impro Precision Industries's earnings presentation, Aug 12, 2025
Slide 1: 2025 Interim Results Presentation
Stock Code: 1286 2025 INTERIM RESULTS PRESENTATION August 12, 2025
Slide 2: Disclaimer
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, 2025. This presentation is intended to provide updated information on the Group for t
Slide 3: 1H/2025 Results Summary
1H/2025 Results Summary Resilient Revenue Growth, Mixed End- Gross Profit Margin & Profit attributable Markets Performance to Shareholders Increased Steadily • 1H/2025 Group revenue increased by 2.0% y-o-y- to HK$2,449.9M • Gross Profit Margin up 1.4% to 27.8%, with Sand Casting up 3.1% to 30.3%, •
Slide 4: Revenue by End-market
Revenue by End-market 1H/2024 1H/2025 1H/2024 1H/2025 Inc/(Dec) By End-market HK$ mil HK$ mil HK$ mil Change Diversified Industrials 1,138.2 1,293.8 155.6 13.7% Automotive 866.3 802.2 (64.1) -7.4% Aerospace, Medical & Energy 398.0 353.9 (44.1) -11.1% Total 2,402.5 2,449.9 47.4 2.0% 4
Slide 5: Revenue by End-market (detailed)
Revenue by End-market 1H/2024 1H/2025 Inc/(Dec) By End-market HK$ mil HK$ mil HK$ mil Change Diversified Industrials 1,138.2 1,293.8 155.6 13.7% - High Horsepower Engine 359.8 533.7 173.9 48.3% - Construction Equipment 334.1 339.1 5.0 1.5% - Agricultural Equipment 177.2 154.6 (22.6) -12.8% - Recreat
Slide 6: Revenue by Business
Revenue by Business 1H/2024 1H/2025 1H/2024 1H/2025 Inc/(Dec) By Business HK$ mil HK$ mil HK$ mil Change Investment Casting 957.0 922.6 (34.4) -3.6% Precision Machining & Others 904.8 793.3 (111.5) -12.3% Sand Casting 511.7 695.2 183.5 35.9% Surface Treatment 29.0 38.8 9.8 33.8% Total 2,402.5 2,449.
Slide 7: Revenue by Geographical
Revenue by Geographical 1H/2024 1H/2025 1H/2024 1H/2025 Inc/(Dec) By Geographical HK$ mil HK$ mil HK$ mil Change Americas 1,204.0 1,156.6 (47.4) -3.9% - United States 1,090.1 998.1 (92.0) -8.4% - Others 113.9 158.5 44.6 39.2% Europe 739.9 733.2 (6.7) -0.9% Asia 458.6 560.1 101.5 22.1% - PRC 393.0 50
Slide 8: 1H/2025 Financial Review
1H/2025 Financial Review
Slide 9: 1H/2025 Financial Review
1H/2025 Financial Review 1H/2024 1H/2025 Financial Highlights HK$ mil HK$ mil Change Revenue 2,402.5 2,449.9 2.0% Gross profit 634.5 681.5 7.4% Gross profit margin 26.4% 27.8% 1.4% Other revenue 13.5 12.7 -5.9% Other net income 44.8 24.1 -46.2% Selling and distribution expenses (87.0) (94.4) 8.5% Ad
Slide 10: Gross Profit
Gross Profit HK$'mil 1,100.0 35.0% 27.8% 30.0% 26.4% 800.0 25.0% 681.5 8.3 21.4% 634.5 27.2% 20.0% 139.2 210.5 30.3% 500.0 168.6 18.6% 15.0% 145.6 18.4% 10.0% 200.0 327.6 34.2% 317.1 34.4% (0.9) -3.1% 5.0% (100.0) 1H/2024 1H/2025 0.0% Investment Casting Precision Machining and Others Sand Casting Su
Slide 11: Cost of Sales Analysis
Cost of Sales Analysis HK$'mil 2,000.0 1,768.0 0.0% 1,768.4 300.6 17.0% 301.0 17.0% 1,500.0 6.4% 112.5 112.0 6.3% 165.1 9.3% 161.3 9.1% 1,000.0 27.3% 457.5 25.9% 483.0 500.0 706.8 40.0% 736.6 41.7% - 1H/2024 1H/2025 Cost of materials (raw materials & Staff Costs Depreciation Fuel Expenses and Utilit
Slide 12: Operating Expenses Analysis
Operating Expenses Analysis Selling and Distribution Expenses Administrative and Other Operating Expenses 150.0 300.0 9.0% 8.0% 250.0 7.2% 3.9% 3.6% 4.0% 6.6% 7.0% 100.0 94.4 200.0 6.0% 87.0 173.6 162.1 5.0% 150.0 4.0% 2.0% 50.0 100.0 3.0% 2.0% 50.0 1.0% - 0.0% - 0.0% 1H/2024 1H/2025 1H/2024 1H/2025
Slide 13: Key Working Capital Ratios
Key Working Capital Ratios Inventory Turnover Days (Average) Trade and Bills Receivable Turnover Days (Average) Days HK$ mil Days HK$ mil 1,500 123 1,600 88 118 117 88 87 90 120 1,400 1,200 1,243.4 75 1,052.2 1,065.1 1,200 1,081.4 1,120.6 961.2 90 900 1,000 60 800 45 60 600 600 30 30 400 300 200 15
Slide 14: Capital Expenditure
Capital Expenditure 8.5% 7.3% 5.7% 5.7% 1H/2025 FY2025 Actual Capex Forecast Capex Capex (ex Mexico) as % of Revenue Group (ex Mexico) Mexico 14
Slide 15: Key Financial Ratios
Key Financial Ratios Adjusted Return on Shareholders' Equity Net Gearing Ratio 20.0% 50.0% 40.0% 15.0% 33.6% 12.8% 13.0% 33.2% 32.3% 11.5% 30.0% 10.0% 20.0% 5.0% 10.0% 0.0% 0.0% FY2023 FY2024 1H/2025 FY2023 FY2024 1H/2025 X Net Debt / L12M Adj. EBITDA X Interest Coverage 2.0 15.0 1.5 1.3 1.3 10.0 9.
Slide 16: Business Outlook
Business Outlook
Slide 17: Mexico SLP Campus Construction Update
Mexico SLP Campus Construction Update Aerospace & Aerospace & SC Plant ST Plant SC Plant ST Plant PM Plant PM Plant IC Plant IC Plant (Photo taken on Aug 1, 2025) (Photo taken on Feb 27, 2025) ⚫ Mexico SLP Campus Precision Machining (PM), Sand Casting (SC) and Investment Casting (IC) plants are curr
Slide 18: Business Outlook
Business Outlook ⚫ Uncertainties such as geopolitical conflicts, high tariff, etc. will continue to loom over the global economy, dampening the short-term revenue growth rates in some end-markets ⚫ The Group’s “Global Footprint” and “Diversified End-markets” strategies will continue to diversify our
Slide 19: Q&A Session
Q&A Session
Slide 20: Appendices – Financials Summary
Appendices – Financials Summary
Slide 21: Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA
Appendix 1 - Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA 1H/2024 1H/2025 HK$ mil HK$ mil Change Reconciliation to Adj. Profit Attr. to Shareholders Profit after tax 305.5 347.4 Adjustments (net of tax): - Amort’n and Dep’n related to past acq’s PPA adj 17.8 13.
Slide 22: Consolidated Statement of Profit or Loss
Appendix 2 – Consolidated Statement of Profit or Loss 1H/2024 1H/2025 HK$ mil HK$ mil Revenue 2,402.5 2,449.9 Cost of sales (1,768.0) (1,768.4) Gross Profit 634.5 681.5 Other revenue 13.5 12.7 Other net income 44.8 24.1 Selling and distribution expenses (87.0) (94.4) Administrative and other operati
Slide 23: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2024 6/30/2025 HK$ mil HK$ mil Non-current assets Property, plant and equipment 4,322.6 4,822.2 Prepayments for Property, plant and equipment 75.7 33.8 Intangible assets 184.2 177.1 Goodwill 227.7 226.1 Deferred expenses 159.0 162.2 Oth
Slide 24: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2024 6/30/2025 HK$ mil HK$ mil Current liabilities Bank loans 919.2 959.3 Lease liabilities 3.8 4.3 Trade payables 588.6 540.5 Other payables and accruals 378.1 367.7 Taxation payable 24.4 41.3 1,914.1 1,913.1 Net current assets 1,208.1
Slide 25: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2024 6/30/2025 HK$ mil HK$ mil Capital and reserves Share capital 188.7 188.7 Reserves 4,532.7 5,056.0 Total equity attributable to equity shareholders of the Company 4,721.4 5,244.7 Non-controlling interest 21.5 17.5 TOTAL EQUITY 4,742
Slide 26: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement 1H/2024 1H/2025 HK$ mil HK$ mil Operating activities Cash generated from operations 560.0 621.2 Tax paid (62.1) (65.9) Net cash generated from operating activities 497.9 555.3 Investing activities Payment of property, plant and equipment (315.8
Slide 27: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement 1H/2024 1H/2025 HK$ mil HK$ mil Financing activities Proceeds from bank loans 796.3 907.0 Repayment of bank loans (915.9) (785.1) Interest paid (59.3) (46.9) Lease rentals paid (3.7) (2.4) Dividends paid to equity shareholders of the Company (1
Slide 28: Thank You
impro Reliable - Flexible - Global THANK YOU
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