What goes in can really come out! CFMOTO receives 262 million yuan in tax refund from the U.S. government

On August 13, CFMOTO announced via a Shanghai Stock Exchange filing that its wholly-owned US subsidiary had received a total of $38.6079 million in refunded tariffs plus interest, equivalent to approximately RMB 262 million. This marks the largest single tariff refund received by an A-share company in the current wave of refunds.

After deducting local US subsidiary income taxes, the payment is expected to boost CFMOTO's net profit for 2026 by approximately RMB 183 million, accounting for 10.95% of the company's attributable net profit to shareholders from the previous year. The gains will primarily be reflected in the second half of this year, with final figures subject to auditor verification.

In February of this year, the US Supreme Court ruled that tariffs imposed by the US citing the International Emergency Economic Powers Act constituted an overreach of authority, rendering the tariff measures invalid. Tariffs already collected from importers must be returned along with interest, as reported by Sina Finance.

CFMOTO's motorcycles and all-terrain vehicles exported to the US had been subject to these tariffs. Following the ruling, US Customs initiated a phased refund process.

It is worth noting that the refunds are directed to US-based importing subsidiaries, not direct subsidies to Chinese companies. Essentially, this is a return of previously collected tariffs that were unlawfully imposed.

Since July, multiple A-share listed companies, including Yindi Holdings and Guizhou Tyre, have disclosed receiving similar tariff refunds, with several seeing notable profit boosts as a result.

As a major exporter of mid-to-large displacement motorcycles and all-terrain vehicles, the US is one of CFMOTO's most important overseas markets. Previously, the additional tariffs directly raised retail prices and squeezed overseas profit margins. This substantial refund will effectively improve the company's cash flow and alleviate the cost pressures stemming from the earlier tariffs.