AviChina Industry & Technology Company (2357) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 reached RMB37,812 million, up 0.93% year-over-year, with steady business development despite a turbulent international environment.

• Net profit attributable to owners fell 20.10% to RMB823 million, mainly due to reduced tax credits and higher finance and period expenses.

• No interim dividend was declared for the period.

• The Group advanced technological innovation, expanded helicopter and trainer businesses, and made progress in aviation ancillary systems and engineering services.

Financial highlights

• Gross profit was RMB7,529 million, down 0.62% year-over-year; gross margin declined to 19.91% from 20.22%.

• Selling, administrative, and R&D expenses increased, with R&D up 7.00% to RMB2,322 million.

• Finance costs rose sharply to RMB200 million from a net gain of RMB56 million last year, driven by lower interest income, higher exchange losses, and increased debt financing.

• Cash and cash equivalents stood at RMB31,451 million; total borrowings were RMB24,067 million; gearing ratio increased to 11.70%.

• Staff costs increased 6.16% to RMB7,080 million with 71,552 employees.

Outlook and guidance

• The Group will focus on high-quality development, digital transformation, and expanding international and low-altitude economy markets.

• Strategic priorities include strengthening helicopter and trainer businesses, accelerating R&D, and promoting green, low-carbon transformation.