The Board of Directors of Synergy wishes to update that its wholly owned subsidiary Synergy House Furniture Sdn Bhd ("SHF") has received USD 1,923,449.77 (equivalent to approximately RM 7,833,249.19*) in tariff refunds including interest from the U.S. Customs and Border Protection ("CBP") up to date.
The refunds relate to tariffs paid by SHF under the IEEPA, pursuant to executive actions introduced by the Trump Administration in 2025 for importation of goods into the United States of America ("USA"). These refunds arise following recent USA court decisions and the subsequent implementation of the refund process by CBP.
As at the date of this announcement, the Group estimates that approximately USD 10,916.53 (equivalent to approximately RM 44,457.57*) of the balance IEEPA tariff refunds remain pending processing by CBP.
The Board wishes to clarify that the refund amounts disclosed above do not include tariffs paid by SHF under the Section 122 of the Trade Act 1974 ("S122") which was effective since 24th February 2026. As at 7 July 2026, SHF has paid approximately USD 37,531.50 (equivalent to approximately RM 152,847.03*) of tariffs under the S122. The legal proceedings relating to the tariffs under the S122 remain ongoing before the U.S. courts, and accordingly no refund has been recognised or received in respect of those tariffs.
The tariff refunds received arising from IEEPA is expected to have a positive impact on the Synergy and its subsidiaries' ("Group") cash flow. The financial impact on the Group's earnings for the current financial year will depend on the accounting treatment of the refunded tariffs, taking into consideration the tariff portion embedded in the cost of inventories that have been sold and inventories that remain unsold.
* Based on exchange rate of USD1:RM4.0725 as at 7 July 2026.
This announcement is dated 8 July 2026.