Bonso Electronics Reports On Redevelopment of The Shenzhen Factory and Potential Loss of Revenue

Rhea-AI Summary

Bonso Electronics (OTC Pink: BNSOF), a manufacturer of sensor-based and pet electronic products, announced two significant business challenges. First, the company's development partner failed to secure governmental approvals for the redevelopment of its Shenzhen factory. Due to tightened regulations and weak property market conditions, Bonso has terminated the redevelopment application and will instead rent out the facility in its current state, resulting in significantly lower rental income.

Additionally, Bonso warns of potential revenue losses due to recently announced US reciprocal tariff policies. Management expects these tariffs to significantly impact product demand for the fiscal year ending March 31, 2026, and beyond. While the company commits to honoring existing contracts and maintaining product competitiveness, the full revenue impact remains uncertain.

Positive

• Company maintains ability to rent existing factory space to third parties
• Commitment to honor all confirmed contract obligations

Negative

• Failed Shenzhen factory redevelopment plan resulting in significantly lower rental income
• Expected significant revenue decline due to US tariff policies affecting product demand
• No near-term plans for factory redevelopment due to regulatory constraints

HONG KONG, April 9, 2025 /PRNewswire/ -- Bonso Electronics International, Inc. (OTC Pink: BNSOF and "Company"), 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.

About Bonso Electronics

Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of electronic scales, weighing instruments and pet electronic products. Bonso products are manufactured in the People's Republic of China for customers primarily located in North America and Europe. Company services include product design and prototyping, production tooling, procurement of components, total quality management, and just-in-time delivery. Bonso also independently designs and develops electronic products for private label markets. Bonso rents factory space and equipment to third parties. For further information, visit the company's web site at https://www.bonso.com/.

This news release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward looking statements may be identified by such words or phrases as "should," "intends," "is subject to," "expects," "will," "continue," "anticipate," "estimated," "projected," "may," "I or we believe," "future prospects," "our strategy," or similar expressions. Forward-looking statements made in this press release which relate to the termination of the redevelopment for the Shenzhen factory and a potential loss of revenue due to tariffs involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. We undertake no obligation to update "forward-looking" statements.

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SOURCE Bonso Electronics

FAQ

Why did Bonso Electronics (BNSOF) terminate the Shenzhen factory redevelopment plan?

Bonso terminated the plan due to their development partner's failure to obtain necessary governmental approvals, tightened governmental requirements for old factory land redevelopment, and weak Shenzhen property market conditions.

How will the failed Shenzhen factory redevelopment affect BNSOF's rental income?

The rental income from the existing factory condition will be significantly lower than what would have been generated after redevelopment.

What impact will US tariffs have on BNSOF's revenue in 2026?

Management expects significant negative impact on product demand for the fiscal year ending March 31, 2026, though the exact revenue impact is unknown.

Will BNSOF pursue future redevelopment of the Shenzhen factory?

Bonso does not plan to explore redevelopment in the near future unless governmental requirements and market conditions improve significantly.