Since 2026, following the initiation of a large-scale US tariff refund program, a number of A-share listed companies with US subsidiaries have begun receiving refund payments. Firms including Guizhou Tyre Co., Ltd., Dongjian Technology Co., Ltd., Canature Health Technology Group Co., Ltd., and Zhejiang Huahai Pharmaceutical Co., Ltd. have announced that the refund amounts represent between 13% and 36% of their most recent audited net profit attributable to parent company shareholders, positively impacting current-period performance to varying degrees. However, market attention is increasingly focused on how these refunds will affect financial statements, how investors should rationally assess the situation, and the potential risks involved.
Multiple companies have announced receipt of refunds, bringing a temporary boost to profit. According to earlier rulings by the US Supreme Court and the US Court of International Trade, US Customs and Border Protection (CBP) began refunding tariffs collected under the International Emergency Economic Powers Act (IEEPA) on April 20, with the first batch of payments disbursed around May 11. Information released by a CBP official on the 4th of this month showed that, as of the end of July, the agency had processed refunds for approximately $100 billion in tariffs and provided the relevant information to the Treasury for payment. Against this backdrop, several A-share listed companies have issued密集 announcements of receiving refunds since July. On the evening of August 6, Guizhou Tyre announced that its overseas wholly-owned subsidiary, NACTR Company, had cumulatively received refunds of tariffs and interest totaling $11.983 million. Converted at the day's exchange rate, this is approximately RMB 81.3587 million. The company stated that these funds will be included in current-period profit or loss for 2026 and will not involve adjustments to prior-period profit or loss. On the evening of July 28, Dongjian Technology announced that, as of that date, the company and its wholly-owned subsidiary MKI had cumulatively received US tariff and interest refunds totaling approximately $3.3927 million. Converted at the RMB central parity rate on July 27, this is approximately RMB 23.0401 million. These funds will be included in 2026 current-period profit or loss, without prior-period adjustments, and are expected to increase the company's net profit attributable to parent company shareholders by RMB 18.9195 million, accounting for 13.28% of the company's most recent audited net profit attributable to parent company shareholders. On the evening of July 13, Canature Health announced that, as of that date, the company had cumulatively received US tariff refunds of $4.5493 million. Converted at the RMB central parity rate on July 10, this is expected to impact the company's net profit attributable to parent company shareholders by RMB 11.5064 million, accounting for 20.54% of the company's most recent audited net profit attributable to parent company shareholders. On the evening of July 8, Huahai Pharmaceutical announced that its subsidiary, Shouke Health USA LLC, had cumulatively received tariff refunds of $14.2296 million. Converted at the day's exchange rate, this is expected to affect the company's 2026 net profit by approximately RMB 96.87 million, accounting for 36.36% of the company's most recent audited net profit attributable to parent company shareholders. On the evening of July 7, Honghe Technology Co., Ltd. announced that its wholly-owned subsidiary, Newline Interactive Inc., had received US tariff refunds of $4.072 million. Converted at the RMB exchange rate on June 30, this is approximately RMB 27.7342 million. This refund will be included in 2026 current-period profit or loss, without prior-period adjustments. Additionally, Globe Group stated on the SZSE interactive platform that it has received some refunds, and Shenzhen Powero New Energy Co., Ltd. stated on the same platform that it has submitted refund documentation and is orderly advancing the application process.
Experts advise investors to view the situation rationally. A review of the aforementioned companies shows that all received refunds through their wholly-owned US subsidiaries, which acted as the direct Importer of Record (IOR) for customs declaration and tax payment. According to US Customs regulations, the applicant for a tariff refund must be a registered IOR or authorized customs broker within the US, and companies must submit applications through the US CBP's ACE system. Regarding the accounting treatment of these tariff refunds, key points for investor attention, and potential risks,财税审 expert Liu Zhigeng stated that, based on the announcements released so far, A-share listed companies are recording the refunds in current-period profit or loss for 2026 without retroactive adjustments. Liu Zhigeng further explained that, according to relevant provisions of the Accounting Standards for Business Enterprises, this tariff refund should be included in 2026 current-period profit or loss without requiring retroactive adjustment. Dozens of A-share listed companies that disclosed tariff refunds between 2025 and 2026 have adopted this accounting treatment, with no prior instances of regulatory inquiries. From an audit perspective, companies can complete verification using three core types of documentation: the official customs refund approval document, original import transaction records, and the bank receipt for the refunded amount. There are no apparent compliance obstacles. For Chinese companies that do not have a US subsidiary but have secured a portion of the refund from their US importer through negotiation, Liu Zhigeng pointed out that this amount should also be charged against current-period profit or loss for 2026. If the corresponding goods have been sold and their cost recognized, it should offset the cost of goods sold. If the corresponding goods have not yet been sold externally, it should offset the inventory cost and be recorded in inventory accounts like finished goods or raw materials. Regarding how investors should view this refund, Liu Zhigeng stated that this income is a non-recurring gain. When analyzing a company's profitability, it should be excluded from current-period net profit to reflect the true level of the company's core business earnings. When calculating core valuation metrics such as P/E (price-to-earnings) and P/B (price-to-book) ratios, the impact of this one-time gain must be removed to avoid misjudging the company's actual valuation due to temporarily inflated performance. If the refund income accounts for more than 30% of a company's current-period net profit, investors should pay closer attention to the true profitability of the company's main business and should not incorporate this income into future earnings forecasts. In terms of market reaction, the stock prices of companies that have announced refunds have not shown significant abnormal movement, suggesting that the market is pricing the one-time gain rationally. Industry insiders analyze that institutional investors generally treat such tariff refunds as non-recurring items and exclude them from valuation models.
Comments