Summary of Key Points Core Viewpoint - The aviation engine industry in China is primarily dominated by a few key players, with a significant focus on innovation, research and development, and market expansion to enhance their competitive edge in both military and civilian sectors [1][18]. Group 1: Industry Overview - The aviation engine manufacturing segment includes four main types: turbojet, turbofan, turboshaft, and turboprop engines, largely monopolized by the China Aviation Engine Group [1]. - Key companies in the industry include Aviation Power (航发动力), Aviation Technology (航发科技), and Aviation Control (航发控制), among others [1][3]. Group 2: Company Performance - Aviation Power reported a revenue of 449.94 billion yuan in 2024, leading the industry in terms of revenue [16]. - The average gross margin for listed companies in the aviation engine sector is around 25%, with individual margins ranging from 10% to 35% [16]. - Aviation Control achieved a gross margin of 28.11% in 2024, reflecting its strong technological innovation capabilities [16]. Group 3: Business Layout and Market Position - Aviation Power and Aviation Technology have over 50% of their business focused on aviation engines, indicating a strong commitment to this sector [13]. - The regional distribution of companies shows that titanium alloy leaders are mainly located in Shaanxi, while other material representatives are concentrated in the East China region [5]. Group 4: Future Business Plans - Companies are focusing on innovation and R&D investments to expand their aviation engine business, with plans to enhance their capabilities in high-temperature alloy components and precision casting [19]. - Aviation Technology aims to participate in the development of the C919 aircraft's engines and expand its international subcontracting business [19]. Group 5: Key Financial Metrics - The largest revenue-generating company in the aluminum and high-strength steel sector is China Aluminum, with a revenue of 2370.66 billion yuan [4]. - The revenue of Aviation Power in the aviation engine sector is projected to exceed 400 billion yuan in 2024, highlighting its market leadership [4]. Group 6: Patent and Employee Information - China Aluminum and Aviation Power hold over 1000 patents, indicating a strong focus on innovation [8]. - Southern Airlines has the largest employee count among listed companies, exceeding 100,000 [8].

Core Insights - The Chinese aviation engine industry has achieved significant technological breakthroughs, focusing on three main areas: material processing, component manufacturing, and complete engine production [1][3]. Group 1: Technological Breakthroughs - Major companies in the aviation engine materials processing sector include Beijing Steel Research Technology Co., Ltd., which produces high-temperature alloys and precision castings for aerospace applications [2]. - In the component manufacturing sector, companies like Sichuan Chengfa Aviation Technology Co., Ltd. and Xi'an Aero Engine (Group) Co., Ltd. have developed various engine components, including turbine engines and combustion chamber parts [2][3]. - The complete engine manufacturing sector is represented by companies such as Guizhou Liyang Aviation Engine (Group) Co., Ltd., which has produced over 20 models of aviation turbine engines [3]. Group 2: Domestic Production and Development - China has established a relatively complete aviation engine research and production system, capable of developing various types of engines, including turboprop, turbojet, turbofan, and turboshaft engines [3]. - The domestically developed WS-20 engine is now used in the Y-20 transport aircraft, marking a significant step towards the complete domestic production of military aircraft engines [4]. Group 3: Market Position and Future Outlook - In the global military aircraft market, China ranks third with 3,309 military aircraft, accounting for 6% of the total, following the United States and Russia [6]. - The global fleet size is projected to grow from 20,563 aircraft in 2021 to 47,531 by 2041, with a shift towards the Chinese and Asia-Pacific markets [9].

Core Viewpoint - The Chinese military industry is experiencing growth driven by policy direction, geopolitical factors, and technological advancements, showcasing its strength and future potential [2][16]. Group 1: Market Performance - As of May 13, the military sector index (BK0490) closed at 64,179.42 points, down 1.64%, with 78 stocks rising, 19 flat, and 404 declining [2]. - From April 29 to May 12, the defense and military sector saw significant gains, being the top performer among all industries [2]. - By May 12, 142 A-share military companies reported their Q1 2025 results, with 77 companies showing revenue growth, and 47 companies achieving over 20% revenue increase [4]. Group 2: Company Performance - The military sector index (BK0490) reached 65,247.19 points with a 3.18% increase as of May 12, with 371 stocks rising and 96 falling [5]. - AVIC Chengfei, a leading player in the aerospace sector, saw a 20.01% increase in stock price, with a market cap of 256.6 billion yuan and Q1 2025 revenue of 3.309 billion yuan and net profit of 156 million yuan [5]. - Morningstar Aviation's revenue surged by 149.25% to 329.51 million yuan, despite still being in a loss position for Q1 2025 [5]. Group 3: Institutional Investment - Institutional funds have been major drivers of the recent surge in the defense sector, with net purchases of 5.9 billion yuan from institutions [7]. - In Q1 2025, 19 institutions held 404 million shares of Taihao Technology, increasing their holdings by 56.8 million shares [11]. - The social security fund increased its holdings in the defense sector by approximately 16.25 million shares in Q1 2025 [13]. Group 4: Industry Drivers - The military sector's growth is supported by favorable policies, geopolitical tensions, and technological innovations [16]. - The 14th Five-Year Plan emphasizes modernization of the military, focusing on key technologies such as aerospace engines and integrated circuits [16]. - Geopolitical tensions, particularly between Pakistan and India, have heightened the demand for military equipment, showcasing the capabilities of Chinese military technology [17]. Group 5: Future Outlook - The military industry is expected to undergo significant changes driven by the demand for intelligent and unmanned systems, which are becoming crucial in modern warfare [18]. - China's defense budget for 2025 is set at 1,784.665 billion yuan, reflecting a 7.2% increase, indicating the importance of the military sector [18].

一、独立董事离任情况 中国航发动力控制股份有限公司（以下简称公司）董事会于 2025 年 5 月 12 日收 到独立董事由立明先生的书面辞职报告。由立明先生因连续担任公司独立董事满六年， 申请辞去公司独立董事及董事会相关委员会职务，辞职后不在公司及控股子公司担任 其他任何职务。 根据 《公司法》《公司章程》及相关法律法规的规定，由立明先生的辞职将导致公 司独立董事占董事会成员的比例低于三分之一，其辞职报告将在公司股东会选举产生 新任独立董事后生效。在公司新任独立董事就任前，由立明先生将继续按照有关法律 法规以及《公司章程》有关规定履行独立董事职责，公司董事会将按照有关规定履行相 关程序，尽快完成独立董事的补选工作。 截至本公告披露日，由立明先生未持有公司股份，不存在未履行完毕的公开承诺。 由立明先生在任职期间恪尽职守、勤勉尽责，公司及董事会对由立明先生在任职期间 为公司做出的贡献表示衷心的感谢！ 证券代码：000738 证券简称：航发控制 公告编号:2025-023 中国航发动力控制股份有限公司 关于独立董事离任的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记 载、误导性陈述或重大 ...

截至5月12日收盘，航空发动机概念上涨3.42%，位居概念板块涨幅第7，板块内，78股上涨，晨曦航空 20%涨停，中超控股、成飞集成等涨停，优机股份、华伍股份、晟楠科技等涨幅居前，分别上涨 17.70%、9.64%、9.09%。跌幅居前的有润贝航科、ST炼石、隆鑫通用等，分别下跌5.00%、1.54%、 1.22%。 | 603809 | 豪能股 | 5.52 | 9.97 | 4780.18 | 3.53 | | --- | --- | --- | --- | --- | --- | | | 份 | | | | | | 601727 | 上海电 | 1.36 | 0.68 | 4458.06 | 6.96 | | | 气 | | | | | | 000738 | 航发控 | 3.83 | 2.56 | 3642.30 | 5.47 | | | 制 | | | | | | 300696 | 爱乐达 | 6.89 | 29.91 | 3250.37 | 2.86 | | 688685 | 迈信林 | 4.17 | 2.92 | 3194.37 | 11.49 | | 301213 | 观想科 技 | 2.38 ...

Summary of Conference Call on Military Trade Investment Opportunities Amidst India-Pakistan Conflict Industry Overview - The conference discusses the military trade (military trade) industry, particularly focusing on China's military exports and the implications of the India-Pakistan conflict on military trade dynamics [1][2]. Key Points and Arguments - The India-Pakistan conflict highlights the practical capabilities of Chinese military products, potentially expanding the market for Chinese weapon systems and attracting more international customers [1]. - China's military exports are transitioning from single weapon systems to integrated combat equipment, such as armored brigade systems, which significantly enhances international competitiveness [1]. - In 2023, China's military export share reached 8.4%, indicating growth potential compared to companies like Lockheed Martin [1][13]. - The conflict may lead to increased demand for drones, with manufacturers like Aerospace Rainbow and Zhongyun Drone benefiting from potential high consumption rates [1][22]. - The military trade investment focus for 2025 includes restructuring, military trade, and new domains, with an emphasis on unmanned systems and long-range artillery [1][9]. Important but Overlooked Content - The military trade landscape is influenced by geopolitical tensions, with small nations relying on imports due to insufficient domestic capabilities, which may drive demand for Chinese military products [6][9]. - The importance of military technology dual-use (civilian and military applications) is emphasized as a long-term investment opportunity [3][17]. - The valuation of China's defense industry may improve due to increased military cooperation and exports, similar to the revenue models of major U.S. defense contractors [5][17]. - Challenges such as payment capabilities in regions like the Middle East and Africa may affect the sustainability of military trade orders [6]. - The comprehensive capabilities of Chinese military systems, including missiles, radars, and integrated systems, provide a competitive edge in the international market [3][8][18]. Notable Companies and Products - Key Chinese military companies mentioned include: - **Land Equipment**: Inner Mongolia First Machinery Group (tanks), Aerospace Rainbow (drones), and various aircraft manufacturers like Chengdu Aircraft Industry Group and Shenyang Aircraft Corporation [7][20]. - **Missile Systems**: China Aerospace Science and Industry Corporation (long-range artillery) and China North Industries Group Corporation [7][20]. - **Data Link Technology**: Companies like 712 Institute and Raytheon Power are highlighted for their contributions to integrated military systems [7][20]. Future Trends - The future of military trade will focus on integrated combat systems, with a significant emphasis on the export of comprehensive military capabilities rather than individual products [19]. - Drones are expected to become critical consumables in future conflicts, with manufacturers poised to benefit from increased demand [22]. - The military trade landscape is likely to evolve with changing geopolitical dynamics, impacting procurement decisions globally [10][11].

Investment Rating - The investment rating for the company is "Hold" with a downgrade from previous ratings [6]. Core Views - The company reported a revenue of 1.35 billion yuan in Q1 2025, a year-over-year decrease of 4.7%, and a net profit of 150 million yuan, down 43.6% year-over-year, primarily due to tax policy adjustments and price changes [1]. - The company achieved a revenue of 5.481 billion yuan in 2024, a growth of 2.95% year-over-year, and a net profit of 750 million yuan, up 3.26% year-over-year, indicating that the operational goals for 2024 were largely met [2]. - The company is focusing on the collaborative development of military, civilian, and fuel sectors, with a positive outlook on the long-term development of large aircraft business due to advancements in commercial engine development [3]. - The company is positioned as a major supplier of aviation engine and gas turbine control systems in China, benefiting from the growing demand in aviation equipment, large aircraft, general aviation, and drones, indicating significant long-term growth potential [4]. Financial Summary - For 2025, the company expects revenues of 5.316 billion yuan, a slight decrease from 2024, with net profits adjusted to 725 million yuan [4]. - The company’s revenue growth rates are projected to be -3.01% in 2025, followed by 11.36% in 2026 and 13.70% in 2027 [5]. - The company’s EBITDA for 2025 is estimated at 1.520 billion yuan, with a net profit margin of 13.64% [5]. - The company’s financial metrics include a PE ratio of 32.97 for 2025, decreasing to 25.78 by 2027 [5].

Investment Rating - The investment rating for the company is "Hold" with a downgrade in rating [6]. Core Views - The company reported a revenue of 1.35 billion yuan in Q1 2025, a year-over-year decrease of 4.7%, and a net profit of 150 million yuan, down 43.6% year-over-year, primarily due to tax policy adjustments and price changes [1]. - The company achieved a revenue of 5.481 billion yuan in 2024, a year-over-year increase of 2.95%, and a net profit of 750 million yuan, up 3.26%, indicating that the operational goals for 2024 were largely met [2]. - The company is focusing on collaborative development in military, civilian, and fuel sectors, with a positive outlook on the long-term development of large aircraft business [3]. - The company is positioned as a major supplier of aviation engine and gas turbine control systems in China, benefiting from the growth in demand for aviation equipment, large aircraft, general aviation, and drones [4]. Summary by Sections Financial Performance - In Q1 2025, the gross margin was 25.1%, a decrease of 7.80 percentage points year-over-year, and the net profit margin was 11.0%, down 7.49 percentage points year-over-year [1]. - The company’s revenue for 2025 is projected to be 5.316 billion yuan, reflecting a slight decline from 2024, with net profit expected to be 725 million yuan [5]. Revenue Breakdown - In 2024, the revenue from aviation engines and gas turbine control systems was 4.88 billion yuan, accounting for 89.1% of total revenue, with a gross margin increase of 1.55 percentage points to 29.2% [2]. - Domestic revenue was 5.11 billion yuan, a 2.8% increase year-over-year, while international revenue was 370 million yuan, a 5.5% increase [2]. Future Outlook - The company aims for a revenue target of 5.3 billion yuan in 2025, indicating a transition period between old and new products [2]. - The company is advancing the development of commercial engines and exploring maintenance services for domestic aircraft like the C919, which is expected to positively impact performance in the mid to late "14th Five-Year Plan" period [3].

Group 1: Business Outlook - The company expects a decline in revenue for 2025 due to peak demand for certain military products and tax policies, but long-term trends remain positive with new models and market expansions [2] - The military aviation power control business is driven by rapid growth in maintenance services and urgent demand for new models [2] - The company is actively pursuing opportunities in general aviation and international trade, aiming to increase market share despite short-term challenges from trade tensions [2][5] Group 2: Financial Performance - In 2024, the repair business revenue is projected to increase to approximately 16%, with a year-on-year growth of about 290 million [3] - International cooperation revenue grew by 5.48%, but gross margin slightly decreased due to rising material costs and increased R&D efforts [5] - Subsidiary West Control Technology reported revenue of 2.383 billion, a year-on-year increase of 2.28%, while Guizhou Honglin achieved revenue of 1.685 billion, remaining stable [6] Group 3: Product Development - The company is focusing on the development of high-end pumps and electro-hydraulic products, which are expected to support future revenue growth [2] - The company is advancing the development of various control systems for commercial engines, with significant progress in the Longjiang series [3] - The company is also exploring maintenance services for domestic aircraft like C919, which is expected to positively impact future performance [3] Group 4: Challenges and Risks - The company faces challenges with accounts receivable due to industry settlement characteristics, with approximately 90% of revenue coming from military products [7] - Operating cash flow turned negative in 2024, influenced by the timing of accounts receivable, but is expected to improve in early 2025 [7] - The company is navigating uncertainties in international cooperation due to potential impacts from U.S. tariff policies [5]

北京市中伦（上海）律师事务所 关于中国航发动力控制股份有限公司 2024 年年度股东大会的 法律意见书 二〇二五年四月 北京市中伦（上海）律师事务所 关于中国航发动力控制股份有限公司 2024 年年度股东大会的 法律意见书 致：中国航发动力控制股份有限公司 根据中国航发动力控制股份有限公司（以下简称公司）与北京市中伦（上海） 律师事务所（以下简称本所）签订的《常年法律服务合同》的约定及受本所指派， 本所律师出席公司 2024 年年度股东大会（以下简称本次股东大会），并根据《中 华人民共和国公司法》（以下简称《公司法》）、《上市公司股东大会规则》（以下 简称《股东大会规则》）等法律、法规和规范性文件以及《中国航发动力控制股 份有限公司章程》（以下简称《公司章程》）的有关规定，对本次股东大会的召集、 召开程序、出席会议人员的资格、表决程序和表决结果等有关事宜出具本法律意 见书。 本所律师认为，公司本次股东大会的召集、召开程序符合《公司法》《股东 大会规则》等法律、法规和规范性文件及《公司章程》的规定。 本所律师按照《股东大会规则》《律师事务所从事证券法律业务管理办法》 《律师事务所证券法律业务执业规则（试行）》的 ...