On March 30, Avic Xi'An Aircraft Industry Group Company Ltd. released its 2025 performance report. During the reporting period, the company achieved operating revenue of 41.014 billion yuan, a decrease of 5.10% year-on-year. Net profit attributable to shareholders reached 1.151 billion yuan, marking a 12.49% increase compared to the previous year. Core net profit, which excludes non-recurring gains and losses, was 1.075 billion yuan, reflecting a significant growth of 16.69%. The growth rate of the core net profit was notably higher than both the net profit attributable to shareholders and the decline in revenue, indicating that profit growth was primarily driven by improved operational efficiency in the main business, rather than one-off factors.
The gross profit margin for the aircraft manufacturing segment was 6.40%, an increase of 0.93 percentage points year-on-year. The gross profit margin for the domestic market was 6.94%, also rising by 0.93 percentage points. The direct reason for the improvement in gross margin was a 5.97% year-on-year decrease in operating costs, which was greater than the 5.03% decline in operating revenue. The stronger contraction in costs compared to the drop in revenue formed the core support for the expansion of the gross profit space.
Breaking down by business segment, revenue from aviation products reached 40.548 billion yuan, accounting for 98.86% of total operating revenue, while revenue from other businesses narrowed to 1.14%, indicating a further concentration of the revenue structure towards the core business. Geographically, the domestic market contributed 39.332 billion yuan in revenue, representing 95.90% of the total. Revenue from international markets was 1.682 billion yuan, remaining stable at 4.10% with no significant trend of expansion or contraction.
R&D investment continued to increase, though the absolute scale remains relatively low. R&D expenses grew by 3.17% year-on-year during the reporting period, and the number of R&D personnel increased by 2.87%. The proportion of R&D expenses to operating revenue rose to 0.67%, indicating a slight strengthening of investment intensity. Selling expenses decreased by 6.02% year-on-year, which is broadly in line with the 5.03% decline in aviation product revenue, reflecting a more cautious approach to market promotion.
Total non-recurring gains and losses amounted to 76.57 million yuan, accounting for 6.65% of the net profit attributable to shareholders. This included government grants of 57.23 million yuan, which was the largest single source, constituting 74.73%. Gains and losses from changes in the fair value of financial assets were 18.42 million yuan, accounting for 24.05%. The 16.69% growth in core net profit further confirms the endogenous and sustainable nature of the profit growth, pointing to a continuous enhancement of the core business's profitability.
Net cash flow from operating activities was negative 8.354 billion yuan, a substantial decrease of 14,392.89% compared to the previous year. The financial report clearly stated that this change was mainly influenced by two factors: firstly, a year-on-year decrease in cash received from sales of goods during the period; secondly, a portion of advance payments received for products in previous years was recognized as revenue in the current period. This led to a greater mismatch between the timing of revenue recognition and cash inflows, thereby amplifying the divergence between cash flow and net profit. This phenomenon is typical of the settlement characteristics in the aircraft manufacturing industry and is closely related to industry delivery cycles and customer payment arrangements, rather than being a signal of deteriorating operational capability.
The overall financial structure remains robust, with liquidity indicators within a safe range. As of the end of the reporting period, the company's short-term debt stood at 2.108 billion yuan, and long-term debt was 1.558 billion yuan. The asset-liability ratio was 71.47%. The current ratio was 1.095, slightly above the alert threshold. Financial expenses were negative 92.18 million yuan, recorded as a net income, which increased by 30.29% year-on-year, primarily due to an increase in exchange losses compared to the previous year. Negative financial expenses reflect the company's ability to hedge or its advantage in holding foreign currency assets amid exchange rate fluctuations.
Significant adjustments occurred in the shareholder structure. The shareholding proportion of the controlling shareholder, Aviation Industry Corporation of China, increased from 38.01% to 43.77%, resulting from the acquisition of a 5.76% stake previously held by AVIC Investment. The total number of shares decreased by 591,000 due to the repurchase and cancellation of restricted shares. The increased concentration of equity ownership may help strengthen the consistency of strategic execution.
Comments