AECC AVIATION POWER (600893) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB 14.10 billion, down 23.99% year-over-year due to changes in customer demand and lower-than-expected deliveries.

• Net profit attributable to shareholders was RMB 91.78 million, a decrease of 84.57% year-over-year, mainly due to reduced revenue and increased financial expenses.

• The company remains the leading domestic manufacturer of military and civil aviation engines, with a full-spectrum product line and strong R&D capabilities.

• Significant progress was made in civil aviation engine certification and market entry, including the AES100 engine receiving a production license and initial sales contracts.

Financial highlights

• Operating income: RMB 14.10 billion, down 23.99% year-over-year.

• Net profit attributable to shareholders: RMB 91.78 million, down 84.57% year-over-year.

• Operating cash flow: negative RMB 9.17 billion, improved by 11.63% year-over-year.

• Basic EPS: RMB 0.03, down 86.36% year-over-year.

• Gross margin and other profitability metrics declined sharply due to lower sales and higher financial costs.

Outlook and guidance

• The company is focused on expanding its presence in the civil aviation and low-altitude economy sectors, accelerating R&D and market entry for new engine models.

• Strategic initiatives include digital transformation, supply chain optimization, and talent development to enhance competitiveness.

• No interim dividend or capital increase from reserves is planned for the half-year period.