Slide 1: 2025 Annual Results Presentation
Stock Code: 1286 2025 ANNUAL RESULTS PRESENTATION March 10, 2026
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 year ended December 31, 2025. This presentation is intended to provide updated information on the Group for the
Slide 3: FY2025 Results Summary
FY2025 Results Summary Solid Revenue Growth, AI related products & Increase in Gross Profit Margin and Adjusted Medical end-markets revenue grew spectacularly profit att. to shareholders of the Company • 2025 Group revenue inc. 8.7% y-on-y to HK$5,095.5M • Group’s GPM inc. 0.4% to 27.5%; GPM of Sand
Slide 4: Revenue by Sector
Revenue by Sector 4Q/2024 4Q/2025 FY2024 FY2025 4Q/2024 4Q/2025 Inc/(Dec) FY2024 FY2025 Inc/(Dec) By Sector HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Diversified Industrials 568.5 721.0 152.5 26.8% 2,260.0 2,792.7 532.7 23.6% Automotive 367.0 329.6 (37.4) -10.2% 1,640.5 1,487.2 (
Slide 5: Revenue by End-market
Revenue by End-market 4Q/2024 4Q/2025 Inc/(Dec) FY2024 FY2025 Inc/(Dec) By End-market HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Diversified Industrials 568.5 721.0 152.5 26.8% 2,260.0 2,792.7 532.7 23.6% - High Horsepower Engine 217.7 269.6 51.9 23.8% 785.8 1,125.9 340.1 43.3% -
Slide 6: Revenue by Business
Revenue by Business 4Q/2024 4Q/2025 FY2024 FY2025 4Q/2024 4Q/2025 Inc/(Dec) FY2024 FY2025 Inc/(Dec) By Business HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Investment Casting 414.0 480.2 66.2 16.0% 1,804.7 1,909.9 105.2 5.8% Precision Machining & Others 392.7 405.9 13.2 3.4% 1,720.
Slide 7: Revenue by Geographical
Revenue by Geographical 4Q/2024 4Q/2025 FY2024 FY2025 4Q/2024 4Q/2025 Inc/(Dec) FY2024 FY2025 Inc/(Dec) By Geographical HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Americas 541.2 595.0 53.8 9.9% 2,328.5 2,429.2 100.7 4.3% - United States 468.8 490.5 21.7 4.6% 2,082.3 2,080.9 (1.4)
Slide 8: 2025 Financial Review
impro 2025 Financial Review
Slide 9: 2025 Financial Review
2025 Financial Review FY2024 FY2025 Financial Highlights HK$ mil HK$ mil Change Revenue 4,686.8 5,095.5 8.7% Gross profit 1,269.1 1,400.1 10.3% Gross profit margin 27.1% 27.5% 0.4% Other revenue 33.2 31.5 -5.1% Other net income 125.5 12.1 -90.4% Selling and distribution expenses (177.0) (189.7) 7.2%
Slide 10: Gross Profit
Gross Profit HK$ mil 1,800 30.0% 27.1% 27.5% 1,500 1,400.1 14.8 19.0% 25.0% 1,269.1 1.8 2.9% 1,200 20.0% 464.4 31.2% 315.5 28.6% 900 15.0% 326.8 19.0% 275.4 17.0% 600 10.0% 300 625.0 34.6% 645.5 33.8% 5.0% 0 0.0% FY2024 FY2025 Investment Casting Precision Machining and Others Sand Casting Surface Tr
Slide 11: Cost of Sales Analysis
Cost of Sales Analysis HK$ mil 4,500 4,000 3,695.4 3,500 3,417.7 641.8 17.4% 3,000 607.0 17.8% 245.2 6.6% 223.4 6.5% 2,500 328.8 8.9% 318.7 9.3% 2,000 967.8 26.2% 935.4 27.4% 1,500 1,000 1,511.8 40.9% 1,333.2 39.0% 500 0 FY2024 FY2025 Cost of materials (raw materials & Staff Costs Depreciation Fuel
Slide 12: Operating Expenses Analysis
Operating Expenses Analysis HK$ mil Selling and Distribution Expenses HK$ mil Administrative and Other Operating Expenses 300 600 9.0% 7.7% 8.0% 250 3.8% 500 7.1% 3.7% 4.0% 7.0% 200 189.7 400 362.6 6.0% 177.0 -0.9% 359.5 5.0% 150 300 4.0% 2.0% 100 200 3.0% 2.0% 50 100 1.0% 0 0.0% 0 0.0% FY2024 FY202
Slide 13: Key Working Capital Ratios
Key Working Capital Ratios HK$ mil Inventory Turnover Days (Average) days HK$ mil Trade and Bills Receivable Turnover Days (Average) days 1,800 150 1,800 100 88 87 89 123 118 1,500 114 120 1,500 80 1,337.6 1,200 1,052.2 1,077.8 1,200 1,081.4 1,120.6 961.2 90 60 900 900 60 40 600 600 300 30 300 20 0
Slide 14: Capital Expenditure
Capital Expenditure HK$ mil Actual and Forecast Capex in FY2023-FY2026 1,500 8.5% 1500 7.3% 1,200 1200 3.8% 897.7 900 850.0 900 713.0 632.7 600 600 319.9 706.3 650.5 290.1 300 300 393.1 342.6 191.4 199.5 0 0 FY2023 FY2024 FY2025 FY2026 Actual Capex Forecast Capex Capex (Excl. Mexico) as % of Revenue
Slide 15: Dividends & Available Bank Facilities
Dividends & Available Bank Facilities Dividends Available Bank Facilities HK$ mil HK$ mil 400 2,700 57% 2,400 350 49% 44% 2,100 300 1,800 250 1,500 200 1,200 2,505.0 2,308.6 150 301.9 302.0 302.0 900 1,785.6 100 600 50 300 0 0 FY2023 FY2024 FY2025 FY2023 FY2024 FY2025 Dividends Dividend Payout Ratio
Slide 16: Key Financial Ratios
Key Financial Ratios Adjusted Return on Shareholders' Equity Net Gearing Ratio 20% 50% 40% 15% 13.4% 33.2% 33.6% 12.8% 30.4% 11.5% 30% 10% 20% 5% 10% 0% 0% FY2023 FY2024 FY2025 FY2023 FY2024 FY2025 X Net Debt / Adj. EBITDA X Interest Coverage 2.0 15 1.5 1.3 9.9 1.2 1.2 10 1.0 7.4 6.2 5 0.5 - 0 FY202
Slide 17: Sustainability Highlights
Sustainability Highlights Tonne of CO2/ HK$ mil Revenue Tonne 60 Greenhouse Gas Emission Intensity 20 Waste Disposal 41.2% 40.0% 41.5% 50 87.8% 90.9% 15 76.9% 40 30 10 20 33.7 34.3 33.5 11.7 5 9.2 8.5 10 0 0 FY2023 FY2024 FY2025 FY2023 FY2024 FY2025 GHG Emission Intensity Cumulative decrease vs FY20
Slide 18: Business Outlook
impro Business Outlook
Slide 19: 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 Mar 7, 2026) (Photo taken on Aug 1, 2025) ⚫ Mexico SLP Campus Precision Machining (PM), Sand Casting (SC) and Investment Casting (IC) plants are curre
Slide 20: Business Outlook
Business Outlook ⚫ The strategic competition in Sino-US relations, the evolution of the geopolitical situation, the fiscal policy trends of major global economies, and changes in tariff policies will continue to pose challenges to the global economy ⚫ The current trade environment highlights the adv
Slide 21: Q&A Session
impro Q&A Session
Slide 22: Appendices – Financials Summary
Appendices – Financials Summary
Slide 23: Reconciliation of Adjusted Profit and Adjusted EBITDA
Appendix 1 - Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA FY2024 FY2025 HK$ mil HK$ mil Change Reconciliation to Adj. Profit att. to Shareholders Profit after tax 645.8 728.1 Adjustments (net of tax): - Insurance claims received, net of legal expenses & tax, (61
Slide 24: Consolidated Statement of Profit or Loss
Appendix 2 – Consolidated Statement of Profit or Loss FY2024 FY2025 HK$ mil HK$ mil Revenue 4,686.8 5,095.5 Cost of sales (3,417.7) (3,695.4) Gross Profit 1,269.1 1,400.1 Other revenue 33.2 31.5 Other net income 125.5 12.1 Selling and distribution expenses (177.0) (189.7) Administrative and other op
Slide 25: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2024 12/31/2025 HK$ mil HK$ mil Non-current assets Property, plant and equipment (PPE) 4,322.6 5,236.2 Prepayments for purchase of PPE 75.7 18.6 Intangible assets 184.2 168.7 Goodwill 222.7 228.3 Deferred expenses 159.0 163.0 Other fina
Slide 26: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2024 12/31/2025 HK$ mil HK$ mil Current liabilities Bank loans 919.2 1,061.1 Lease liabilities 3.8 4.4 Trade payables 588.6 644.8 Other payables and accruals 378.1 409.0 Taxation payable 24.4 20.5 1,914.1 2,139.8 Net current assets 1,20
Slide 27: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2024 12/31/2025 HK$ mil HK$ mil Capital and reserves Share capital 188.7 188.7 Reserves 4,532.7 5,416.1 Total equity attributable to equity shareholders of the Company 4,721.4 5,604.8 Non-controlling interest 21.5 18.4 TOTAL EQUITY 4,74
Slide 28: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement FY2024 FY2025 HK$ mil HK$ mil Operating activities Cash generated from operations 1,259.0 1,387.0 Tax paid (112.8) (128.3) Net cash generated from operating activities 1,146.2 1,258.7 Investing activities Payment for the acquisition of PPE (612
Slide 29: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement FY2024 FY2025 HK$ mil HK$ mil Financing activities Proceeds from bank loans 1,529.4 1,601.7 Repayment of bank loans (1,578.7) (1,385.3) Interest paid (110.1) (89.5) Lease rentals paid (5.8) (5.1) Dividends paid to equity shareholders of the Com
Slide 30: Thank you
impro Reliable - Flexible - Global Thank you