Group 1 - The company’s subsidiary, CFMOTO POWERSPORTS, INC. (CFP), received a bill from the U.S. Customs and Border Protection (CBP) requiring a classification adjustment for products exported from China, totaling approximately $19.33 million as of October 23, 2025 [2] - The classification adjustment primarily concerns historical tariff reimbursements for products exported to the U.S., but the company has diversified its production capacity through facilities in Thailand and Mexico, reducing the impact of U.S. tariffs on its operations [3] - The company plans to take legal action, including hiring lawyers to appeal to the CBP and potentially filing a lawsuit in the U.S. International Trade Court to protect its interests [3] Group 2 - As of September 2025, sales from the U.S. accounted for less than 30% of the company’s total revenue, indicating that the classification adjustment is not expected to have a significant adverse effect on future operations [3] - The company acknowledges the uncertainty regarding the final amounts and outcomes related to the classification adjustments and will continue to disclose relevant information as the situation progresses [4]