Bonso Electronics Reports on Redevelopment of the Shenzhen Factory and Potential Loss of Revenue

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Bonso Electronics International, Inc., a designer and manufacturer of sensor based products and pet electronic products, today reported on the redevelopment of its Shenzhen factory and a potential loss of revenue for the fiscal year ending March 31, 2026.

The Company learned that our development partner was not successful in obtaining all necessary governmental approvals for the redevelopment of our Shenzhen factory. Based on the tightened governmental requirements for redevelopment of old factory land and the weak property market conditions in Shenzhen, the Company and our development partner have decided to terminate the redevelopment application. Bonso will take back the Shenzhen factory and will rent it out under its existing condition to third parties. The rental income to be generated under the existing condition will be significantly less than the rental income that would have been generated after redevelopment. Bonso does not plan to explore redevelopment in the near future, unless governmental requirements and market conditions improve significantly.

The Company also reports a potential loss of revenue due to US tariff policy. Management believes the recently announced reciprocal tariff policy and previously announced tariffs by the US Government will have a significant impact on the demand for our products for the fiscal year ending March 31, 2026, and beyond. The Company will honor all confirmed contract obligations and work closely with our customers to maintain the competitiveness of our products. However, the overall impact on our revenue is unknown and we intend to monitor the market closely and adjust to fulfill our customers' demands.