AECC AVIATION POWER (600893) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 6.16 billion, down 1.71% year-over-year.

• Net profit attributable to shareholders was RMB 7.51 million, a 95.15% decrease year-over-year.

• Excluding non-recurring items, net profit dropped 81.70% year-over-year.

• Cash flow from operations turned positive at RMB 2.06 billion, up 168.54% year-over-year.

• Major profit decline attributed to lower gross margin, higher financial expenses, and reduced fair value gains.

Financial highlights

• Operating income: RMB 6.16 billion, down from RMB 6.27 billion year-over-year.

• Net profit: RMB 7.51 million, down from RMB 154.85 million year-over-year.

• Basic and diluted EPS: RMB 0.0028, down 95.18% year-over-year.

• Total assets: RMB 112.81 billion, down 2.68% from year-end 2024.

• Owner's equity: RMB 39.88 billion, nearly flat from year-end.

Outlook and guidance

• R&D expenses increased 76.14% year-over-year, reflecting higher investment in development tasks.

• Company expects continued pressure on profitability due to sales structure and cost factors.