AECC AVIATION POWER (600893) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was RMB 7.41 billion, down 13.18% year-over-year; net profit attributable to shareholders fell 57.01% to RMB 131 million for the quarter.

• For the first nine months, revenue reached RMB 25.96 billion, down 1.33% year-over-year; net profit attributable to shareholders was RMB 726 million, down 29.56%.

• Cash flow from operating activities for the first nine months was negative RMB 17.28 billion, a 29.06% larger outflow year-over-year.

Financial highlights

• Gross margin for the first nine months was RMB 3.12 billion, down from RMB 3.18 billion year-over-year.

• Basic and diluted EPS for Q3 were RMB 0.05, down 58.33% year-over-year; for the first nine months, EPS was RMB 0.27, down 30.77%.

• Total assets at quarter-end were RMB 113.04 billion, up 13.28% from year-end 2023.

• Shareholders' equity attributable to the parent was RMB 39.82 billion, up 0.93% from year-end.

Outlook and guidance

• Management attributes profit decline to higher financial expenses, increased taxes, and rising after-sales and sales costs.

• Inventory and accounts receivable rose due to increased orders and delayed payments.