Core Viewpoint - The company, CFMOTOPOWERSPORTS, INC., has received a notice from the U.S. Customs and Border Protection (CBP) regarding a classification adjustment for products exported from its Chinese factory, which may lead to retroactive tax payments totaling approximately $19.33 million [1] Group 1: Financial Impact - As of October 23, 2025, the total amount of related bills received by CFMOTOPOWERSPORTS is $19.3287 million [1] - The company acknowledges uncertainty regarding the impact of the retroactive tax bill on its financial results for the year 2025 [1] Group 2: Operational Adjustments - The classification adjustment primarily concerns historical tariff payments for products exported from China to the U.S. [1] - The company has effectively mitigated cost pressures from U.S. tariffs by diversifying production capacity to Thailand and Mexico [1] - As of September 2025, sales in the U.S. accounted for less than 30% of the company's total revenue, indicating reduced reliance on the U.S. market [1] Group 3: Legal Actions - The company is considering legal actions, including hiring lawyers to appeal to the CBP and potentially filing a lawsuit in the U.S. International Trade Court to protect its rights [1]

Core Viewpoint - The company, Spring Power (603129), announced that its wholly-owned subsidiary in the U.S., CFMOTO POWERSPORTS, INC. (CFP), received a notice from the U.S. Customs and Border Protection (CBP) regarding a classification adjustment for UZ products exported from its Chinese factory, which will require retroactive tax payments totaling $19.3287 million [1] Group 1 - The classification adjustment involves historical tariff payments for UZ products exported from the Chinese factory to the U.S. [1] - As of October 23, 2025, the total amount of related bills received by CFP is $19.3287 million [1] - The company is assessing the impact of these adjustments on its financial results for the year 2025, considering the uncertainty surrounding future tax bills and appeals [1] Group 2 - The company has effectively mitigated the cost pressure from U.S. tariffs by diversifying its production capacity through facilities in Thailand and Mexico [1] - As of September 2025, sales in the U.S. accounted for less than 30% of the company's total revenue, indicating reduced reliance on the U.S. market [1] - The classification adjustment is not expected to have a significant adverse impact on the company's future operations [1]