CFMOTO's Wholly Owned Subsidiary Receives $92.64M U.S. Tariff Refund, Boosting 2026 Net Profit by RMB 440M

According to an announcement by CFMOTO, its wholly-owned subsidiary CFP received a refund of U.S. tariffs and interest totaling USD 54.0324 million (approximately RMB 366 million) between August 14, 2026, and September 7, 2026. After deducting U.S. subsidiary income tax, this amount is expected to increase the company’s net profit for 2026 by approximately RMB 2.56 billion, representing 15.31% of its most recently audited net profit. As of the announcement date, CFP has cumulatively received tariff and interest refunds from the U.S. totaling USD 92.6403 million (approximately RMB 6.28 billion), which is expected to boost the company’s 2026 net profit by approximately RMB 4.40 billion, or 26.26% of its most recently audited net profit. This refund stems from a ruling issued by the U.S. Supreme Court on February 20, 2026, which declared unlawful the tariffs imposed by the Trump administration on Chinese goods under the International Emergency Economic Powers Act (IEEPA), citing a lack of statutory authority. On the same day, former President Trump signed an executive order terminating the IEEPA-based tariffs, prompting U.S. Customs and Border Protection to initiate the refund process. CFMOTO primarily manufactures all-terrain vehicles, motorcycles, and electric two-wheelers, with the United States being one of its key overseas markets. Previously, IEEPA-related tariffs had increased the retail prices of its products in the U.S.; following this refund, export costs are expected to return to normal levels.