SHHG(SH:603131) Hua Xia Shi Bao·2025-12-14 08:16Core Viewpoint - Shanghai Huguang Welding Group Co., Ltd. has announced the termination of its aerospace equipment manufacturing base phase one project and a third delay for its precision CNC laser cutting equipment expansion project, reflecting challenges in project execution and declining financial performance [2][6][9]. Financial Performance - For the first three quarters of 2025, the company reported total revenue of 641 million yuan, a year-on-year decrease of 12.65%, and a net profit attributable to shareholders of -1.97 million yuan, down 104.2% [4]. - In Q3 2025, the company’s main revenue was 210 million yuan, a decline of 15.26% year-on-year, with a net profit of -6.76 million yuan, down 187.12% [4][5]. - The decline in revenue is primarily attributed to decreased sales in the welding and cutting equipment business [4][5]. Project Updates - The company has invested 1.12 billion yuan in the aerospace equipment manufacturing base project, which has a total planned investment of 2.46 billion yuan, with a progress rate of 59.08% [7][9]. - The precision CNC laser cutting equipment expansion project has only achieved a progress rate of 2.86% and has been delayed for the third time, now expected to be completed by December 31, 2026 [9][10]. - The decision to terminate the aerospace project is influenced by changes in market conditions and industry policies, leading to a shift in customer procurement schedules [7][8]. Strategic Response - The company plans to focus on internal resource integration and maintain stable operations in response to market changes, emphasizing improved internal management [5][6]. - The company aims to adjust its capacity structure and resource allocation in light of the current market demand and industry trends [8][9].