AviChina Industry & Technology Company (2357) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was RMB33,617 million, down 17.75% year-over-year, mainly due to lower sales in aviation ancillary systems and helicopter products.

• Net profit attributable to owners was RMB1,251 million, an 18.92% decrease year-over-year.

• Gross profit was RMB8,143 million, down 16.45% year-over-year, with a stable gross margin of 24.22%.

• The group completed helicopter business integration and raised RMB3 billion in supporting funds for R&D and manufacturing.

• Board and supervisory committee re-elections were completed, with new appointments and confirmations.

Financial highlights

• Revenue: RMB33,617 million (down 17.75% year-over-year).

• Net profit attributable to owners: RMB1,251 million (down 18.92% year-over-year).

• Gross profit: RMB8,143 million (down 16.45% year-over-year); gross margin 24.22%.

• Basic and diluted EPS: RMB0.157 (down from RMB0.199 year-over-year).

• Cash and cash equivalents: RMB26,996 million as of 30 June 2024.

• Total borrowings: RMB17,505 million; gearing ratio: 9.43%.

Outlook and guidance

• The group aims to leverage opportunities in China's expanding low-altitude economy, focusing on technological innovation, smart manufacturing, and green development.

• Plans include investment in helicopter R&D, cooperation with local governments, and optimizing capital structure.

• Continued commitment to value creation, shareholder returns, and eco-friendly aviation manufacturing.