Summary of the Conference Call for AVIC Optoelectronics Company Overview - **Company**: AVIC Optoelectronics - **Industry**: Aerospace and Defense, Civil Electronics Key Financial Performance - **Revenue Growth**: Revenue for the first three quarters increased by 2.36% year-on-year, reaching 158 billion RMB, with a notable 12.36% growth in sales revenue for Q3 at 45.6 billion RMB [2][3] - **Net Profit Decline**: Net profit decreased by 30% year-on-year, with Q3 net profit at 2.9 billion RMB [2][3] - **Gross Margin**: Gross margin fell from 36.5% to 29.7%, attributed to changes in business structure, market pressures, customer price reductions, and rising raw material costs [2][3][7] Business Segment Performance - **Civil Business**: Civil business now accounts for 60% of total revenue, with the electric vehicle sector contributing 25% [2][4] - **Data Center Growth**: Data center business saw over 50% growth, exceeding 1 billion RMB in revenue for the first three quarters [2][6] - **Defense Business**: Defense business revenue conversion cycle extended to 450-500 days, impacting revenue recognition [12][14] Strategic Initiatives - **Cost Management**: The company is implementing design, production, procurement, and process optimizations to manage costs effectively [8] - **Accounting Policy Change**: A new accounting policy will be adopted on January 1, 2026, focusing on precise cost accounting to enhance operational efficiency [9][10] - **R&D Investment**: Increased R&D investment by 12% year-on-year, focusing on new technologies and products, particularly in liquid cooling solutions [21] Market Outlook - **Q4 Expectations**: Revenue is expected to stabilize in Q4, but profitability may remain under pressure due to the extended defense revenue conversion cycle [11] - **Military Growth Forecast**: Anticipated compound annual growth rate (CAGR) of approximately 10% for military business over the next two to three years [16][17] - **International Expansion**: Plans to increase international business revenue to 15-20% of total revenue over the next five years, despite current geopolitical challenges [5][28] Emerging Technologies and Products - **Liquid Cooling Solutions**: This segment is expected to grow significantly, currently accounting for 60% of data center revenue [19][23] - **Quantum Technology**: Early-stage development with ongoing collaborations, focusing on RF connectors and optoelectronic components [24] Challenges and Risks - **Material Cost Increases**: Rising gold prices have negatively impacted military gross margins by 1-2% [25] - **Market Conditions**: The company faces challenges in the international market, particularly in the renewable energy sector, which is growing slower than expected [29] Conclusion - **Long-term Outlook**: Short-term performance does not reflect the company's long-term potential, with management confident in achieving better results through strategic planning and execution [38]

Core Viewpoint - 中航光电 is a leading provider of interconnection technology solutions in China, with a strong presence in high-end sectors such as aerospace and defense, and has a comprehensive industry chain advantage [1] Group 1: Business Performance - In Q3 2025, 中航光电 reported revenue of 15.838 billion yuan, ranking 2nd in the industry out of 64 companies, exceeding the industry average by 1.898 billion yuan and the median by 0.575 billion yuan [2] - The main business segments include electrical connectors and integrated interconnection components at 8.604 billion yuan (76.93%), optical connectors and other optical devices at 1.624 billion yuan (14.52%), and liquid cooling solutions and other products at 0.956 billion yuan (8.55%) [2] - The net profit for the same period was 1.884 billion yuan, also ranking 2nd in the industry, surpassing the industry average by 0.945 billion yuan and the median by 0.374 billion yuan [2] Group 2: Financial Ratios - As of Q3 2025, 中航光电's debt-to-asset ratio was 38.75%, higher than the previous year's 36.98% and above the industry average of 32.84% [3] - The gross profit margin for Q3 2025 was 29.70%, down from 36.61% in the previous year and below the industry average of 34.84% [3] Group 3: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 5.88% to 74,600, while the average number of circulating A-shares held per shareholder increased by 6.25% to 27,900 [5] - The top circulating shareholders include 富国中证军工龙头ETF (holding 28.6974 million shares, an increase of 4.2708 million shares) and 香港中央结算有限公司 (holding 23.7094 million shares, an increase of 3.2610 million shares) [5] Group 4: Future Outlook - 国联民生证券 noted that 中航光电's revenue showed steady growth in H1 2025, but net profit declined due to changes in revenue structure affecting gross margin; however, Q2 gross margin showed signs of recovery [6] - The company is expected to achieve revenues of 23.802 billion yuan, 27.376 billion yuan, and 31.201 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 3.710 billion yuan, 4.305 billion yuan, and 4.913 billion yuan [6] - Long江证券 highlighted that the recovery of defense orders and rapid growth in the new energy vehicle and data center sectors are driving overall revenue growth [6]

Investment Rating - The report maintains a "Recommended" rating for the company, considering its leading position in the defense sector and proactive layout in emerging industries [4][6]. Core Insights - The company reported a revenue of 15.838 billion yuan for the first three quarters of 2025, representing a year-over-year growth of 12.36%. However, the net profit attributable to shareholders decreased by 30.89% year-over-year to 1.737 billion yuan, slightly below market expectations [1]. - The third quarter of 2025 saw a revenue decline of 4.97% year-over-year to 4.654 billion yuan, with a significant drop in net profit by 64.50% year-over-year to 300 million yuan. The profit margin was impacted by changes in product structure and increased tax expenses [1][2]. - The company is experiencing strong growth in sectors such as defense, new energy vehicles, data centers, and industrial equipment, despite short-term profit pressures due to structural changes in its business [1][3]. Financial Performance Summary - For the first three quarters of 2025, the gross profit margin decreased by 6.91 percentage points to 29.70%, and the net profit margin fell by 6.94 percentage points to 11.90%. In Q3 2025, the gross profit margin further declined by 7.32 percentage points to 28.19% [1]. - The company maintained a low expense ratio, with a total expense ratio of 15.50%, down 0.60 percentage points year-over-year. Research and development expenses increased by 12.61% year-over-year to 1.401 billion yuan [2]. - The net cash flow from operating activities for the first three quarters of 2025 was -608 million yuan, compared to 725 million yuan in the same period last year, indicating cash flow challenges [2]. Growth Opportunities - The company is solidifying its position as a preferred supplier in the defense sector and is actively participating in emerging fields such as unmanned systems and deep-sea technologies. It has achieved significant breakthroughs in various products [3]. - The company is also focusing on building a "second growth curve" in high-end civil manufacturing, satellite communication, and data center solutions, with the latter seeing a year-over-year business scale growth of 100% [3]. - Internationally, the company is pursuing a strategy of localization in key regions and has seen rapid growth in international business orders, particularly in smart connected electric vehicles, photovoltaic energy storage, and medical sectors [3].

Group 1: Guizhou Moutai - Guizhou Moutai reported a net profit of 646.27 billion yuan for the first three quarters of 2025, an increase of 6.25% year-on-year [1][2] - The company's revenue for the first three quarters reached 1,284.54 billion yuan, reflecting a growth of 6.36% compared to the previous year [1][2] Group 2: Midea Group - Midea Group achieved a net profit of 378.83 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 19.51% [3][4] - The company's revenue for the same period was 3,630.57 billion yuan, up 13.82% year-on-year [3][4] Group 3: Mindray Medical - Mindray Medical reported a net profit of 75.7 billion yuan for the first three quarters of 2025, a decline of 28.83% year-on-year [5][6] - The company's revenue for the first three quarters was 258.34 billion yuan, down 12.38% compared to the previous year [5][6] Group 4: SanHuan Group - SanHuan Group's net profit for the first three quarters of 2025 was 19.59 billion yuan, reflecting a growth of 22.16% year-on-year [7][8] - The company's revenue for the same period reached 65.08 billion yuan, an increase of 20.96% year-on-year [7][8] Group 5: Longyuan Power - Longyuan Power reported a net profit of 43.93 billion yuan for the first three quarters of 2025, a decrease of 21.02% year-on-year [9][10] - The company's revenue for the same period was 222.21 billion yuan, down 17.29% compared to the previous year [9][10] Group 6: China Nuclear Power - China Nuclear Power's net profit for the first three quarters of 2025 was 80.02 billion yuan, a decline of 10.42% year-on-year [12][13] - The company's revenue for the same period reached 616.35 billion yuan, an increase of 8.16% year-on-year [12][13] Group 7: Fenjie Media - Fenjie Media reported a net profit of 42.40 billion yuan for the first three quarters of 2025, an increase of 6.87% year-on-year [14][15] - The company's revenue for the same period was 96.07 billion yuan, reflecting a growth of 3.73% year-on-year [14][15] Group 8: Tianfu Communication - Tianfu Communication achieved a net profit of 14.65 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 50.07% [17][18] - The company's revenue for the same period was 39.18 billion yuan, up 63.63% year-on-year [17][18] Group 9: Lingyi Technology - Lingyi Technology reported a net profit of 19.41 billion yuan for the first three quarters of 2025, reflecting a growth of 37.66% year-on-year [19][20] - The company's revenue for the same period reached 375.90 billion yuan, an increase of 19.25% year-on-year [19][20] Group 10: Rongsheng Petrochemical - Rongsheng Petrochemical's net profit for the first three quarters of 2025 was 8.88 billion yuan, a growth of 1.34% year-on-year [21] - The company's revenue for the same period was 2,278.15 billion yuan, down 7.09% compared to the previous year [21] Group 11: ShenNan Circuit - ShenNan Circuit reported a net profit of 23.26 billion yuan for the first three quarters of 2025, an increase of 56.30% year-on-year [22] - The company's revenue for the same period was 167.54 billion yuan, reflecting a growth of 28.39% year-on-year [22] Group 12: Jiangbolong - Jiangbolong achieved a net profit of 7.13 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 27.95% [23] - The company's revenue for the same period reached 167.34 billion yuan, up 26.12% year-on-year [23] Group 13: New Yisheng - New Yisheng reported a net profit of 63.27 billion yuan for the first three quarters of 2025, reflecting a growth of 284.37% year-on-year [24] - The company's revenue for the same period was 165.05 billion yuan, an increase of 221.70% year-on-year [24] Group 14: China Merchants Bank - China Merchants Bank achieved a net profit of 1,137.72 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 0.52% [25] - The company's revenue for the same period was 2,514.2 billion yuan, down 0.51% compared to the previous year [25] Group 15: Zhongwei Company - Zhongwei Company reported a net profit of 12.11 billion yuan for the first three quarters of 2025, a growth of approximately 32.66% year-on-year [26] - The company's revenue for the same period reached 80.63 billion yuan, an increase of approximately 46.40% year-on-year [26] Group 16: Microchip Biotech - Microchip Biotech's non-public offering was approved, aiming to raise up to 9.5 billion yuan for innovative drug research and development [27] Group 17: Longyuan Power's Fundraising - Longyuan Power plans to raise up to 50 billion yuan through a private placement to invest in renewable energy projects [28] Group 18: North University Pharmaceutical - North University Pharmaceutical's chairman was detained for investigation, but the company's operations remain normal [29] Group 19: Deyang Shares - Deyang Shares reported a net profit of 23.47 billion yuan for the first three quarters of 2025, a growth of 4.79% year-on-year [30] Group 20: Xiechuang Data - Xiechuang Data achieved a net profit of 6.98 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 25.30% [31] Group 21: Zhifei Biological - Zhifei Biological reported a net loss of 12.06 billion yuan for the first three quarters of 2025, primarily due to lower sales and increased provisions [32] Group 22: Softcom Power - Softcom Power achieved a net profit of 9.89 billion yuan for the first three quarters of 2025, reflecting a growth of 30.21% year-on-year [33] Group 23: Magmi Technology - Magmi Technology reported a net profit of 2.13 billion yuan for the first three quarters of 2025, a decline of 48.29% year-on-year [34] Group 24: Huali Group - Huali Group's net profit for the first three quarters of 2025 was 24.35 billion yuan, a decrease of 14.34% year-on-year [35]

Core Viewpoint - 中航光电 reported a revenue increase of 12.36% year-on-year for the first three quarters of 2025, but net profit decreased by 30.89% [1] Financial Performance - Revenue for the first three quarters reached 15.838 billion yuan [1] - Net profit attributable to shareholders was 1.737 billion yuan, a decrease of 30.89% year-on-year [1] - Net profit excluding non-recurring gains and losses was 1.701 billion yuan, down 30.63% year-on-year [1] - Basic earnings per share stood at 0.8478 yuan [1]

Group 1 - The core point of the article is that AVIC Industry (中航科工) announced the performance of AVIC Optoelectronics (中航光电) for the first three quarters of 2025, highlighting a revenue increase but a significant decline in net profit [1] Group 2 - AVIC Optoelectronics reported an operating income of approximately 15.838 billion yuan, representing a year-on-year growth of 12.36% [1] - The net profit attributable to shareholders of the listed company was approximately 1.737 billion yuan, showing a year-on-year decrease of 30.89% [1] - The basic earnings per share were reported at 0.8478 yuan [1] - The decrease in net profit was primarily attributed to changes in the business structure and an increase in income tax expenses during the reporting period [1]

二、以9票同意、0票反对、0票弃权审议通过了《关于成立青岛分公司的议案》。 同意公司为满足业务发展需要，在山东省青岛市设立分公司，并授权经理层具体办理相 关后续事项，包括但不限于：向市场监督管理部门等政府机构申请办理设立登记、处理 所有相关文件签署以及办理与设立相关的其他一切事宜。 三、以9票同意、0票反对、0票弃权审议通过了《关于注销深圳分公司和东莞分公 司的议案》。同意公司为满足经营管理需要，注销深圳分公司和东莞分公司，并授权经 理层具体办理相关后续事项，包括但不限于：向市场监督管理部门等政府机构申请办理 中航光电科技股份有限公司 第七届董事会第十九次会议决议公告 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、 误导性陈述或重大遗漏。 中航光电科技股份有限公司第七届董事会第十九次会议于2025年10月29日在公司 20楼会议室（一）以现场结合通讯方式召开。本次会议的通知及会议资料已于2025年10 月19日以书面、电子邮件方式送达全体董事。会议应参加表决董事9人，实际参加表决 董事9人，其中独立董事鲍卉芳女士以通讯方式表决，公司部分高级管理人员列席。本 次会议的通知、召开以及参会 ...

Group 1 - Company Zhonghang Optoelectronics reported Q3 performance with revenue of approximately 15.838 billion yuan, a year-on-year increase of 12.36% [1] - The net profit attributable to shareholders was about 1.737 billion yuan, a year-on-year decrease of 30.89% [1] - Basic earnings per share were 0.8478 yuan, down 29.46% year-on-year [1] Group 2 - As of the report, Zhonghang Optoelectronics has a market capitalization of 80 billion yuan [1]

Core Viewpoint - AVIC's subsidiary, AVIC Optoelectronics, reported a revenue increase of 12.36% year-on-year for the first three quarters of 2025, reaching 15.838 billion RMB, while net profit decreased by 30.89% [1] Financial Performance - Revenue for the first three quarters of 2025 was 15.838 billion RMB, reflecting a year-on-year growth of 12.36% [1] - Net profit attributable to shareholders was 1.737 billion RMB, showing a decline of 30.89% year-on-year [1] - Net profit excluding non-recurring gains and losses was 1.701 billion RMB, down 30.63% compared to the previous year [1] - Basic earnings per share stood at 0.8478 RMB [1]

中國航空科技工業股份有限公司 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 AviChina Industry & Technology Company Limited* (於中華人民共和國註冊成立之股份有限公司) (股份代號：2357) 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而作出。 以下爲中航光電科技股份有限公司於深圳證券交易所網站刊發之公告。 承董事會命 中國航空科技工業股份有限公司 公司秘書 吳筠 北京，二零二五年十月二十九日 於本公告日，董事會由執行董事閆靈喜先生和孫繼忠先生，非執行董事徐東升先生、周訓文 先生和胡世偉女士，以及獨立非執行董事劉威武先生、毛付根先生和林貴平先生組成。 *僅供識別 中航光电科技股份有限公司 2025 年第三季度报告 证券代码：002179 证券简称：中航光电 公告编号：2025-049 号 中航光电科技股份有限公司 2025 年第三季度报告 本公司及董事会全体成员保证信息披 ...