CFMOTO (SH:603129), the Zhejiang-based manufacturer of motorcycles, all-terrain vehicles and new-energy two-wheelers, disclosed after the close of trading on September 7 that its US subsidiary has received a further round of tariff refunds from US authorities, underscoring the knock-on effects of a landmark US Supreme Court ruling.

The company's statement revealed that between August 14 and September 7, its wholly owned US unit CFP (CFMOTO PowerSports, Inc.) received US$54.03 million in refunded tariffs and interest. Converted at the September 7 central parity rate of 6.7795 yuan per US dollar, that equates to approximately 366 million yuan. After accounting for the US subsidiary's income tax, the company expects the funds to add roughly 256 million yuan to its 2026 net profit, representing about 15.31% of its most recent audited attributable net profit.

With this latest tranche, CFMOTO's cumulative US tariff and interest refunds have reached US$92.64 million, or about 628 million yuan. Net of income tax, the company estimates the total impact on 2026 net profit at roughly 440 million yuan, about 26.26% of its most recent audited attributable net profit. CFMOTO said the profit impact will mainly be recognized in the second half of 2026 as funds arrive, with final accounting subject to auditor confirmation.

Background of the refunds

The refunds follow a decision by the US Supreme Court in February 2026, which ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded the executive branch's statutory authority and were invalid from the outset. The Court held that tariffs collected from US importers must be fully refunded with interest, and US Customs and Border Protection (CBP) formally launched the refund process on April 20, 2026.

A rebound in the shares

The refund news has supported the stock. After the company first disclosed the tariff refunds in mid-August, the shares staged a strong rebound, jumping 5.13% on August 18 and a further 3.88% on August 19 before easing back. For the year to date, the stock has gained roughly 5.38%, trading around 288.6 yuan with a market capitalization of about 44.3 billion yuan.

Solid first-half results across three businesses

CFMOTO posted first-half revenue of 13.386 billion yuan, up 35.82% year on year, with net profit attributable to shareholders of 1.065 billion yuan, up 6.26%. Its all-terrain vehicle business, the core revenue pillar, sold 131,100 units for 7.146 billion yuan in revenue, up 51.05% year on year, with exports accounting for 72.47% of China's national total — sustaining its industry-leading position.

Fuel motorcycles totaled 196,400 units sold, up 30.62%, and its electric two-wheeler brand sold 338,000 units for 1.162 billion yuan in revenue, up 33.15%, establishing a third growth engine. R&D spending reached 786 million yuan in the first half, or 5.87% of revenue, up 43.24%.

Looking ahead, CFMOTO said it will continue to pursue 'globalization, electrification and intelligence', accelerate product refreshes and reinforce its brand advantages.