[Aero Engine Corporation of China (AECC) Power Co., Ltd. 2025 Semi-Annual Performance Forecast](index=1&type=section&id=%E4%B8%AD%E5%9B%BD%E8%88%AA%E5%8F%91%E5%8A%A8%E5%8A%9B%E8%82%A1%E4%BB%BD%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B82025%E5%B9%B4%E5%8D%8A%E5%B9%B4%E5%BA%A6%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A) [Current Period Performance Forecast](index=1&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E6%9C%9F%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A%E6%83%85%E5%86%B5) The company anticipates a significant decline in both net profit attributable to owners of the parent and net profit excluding non-recurring items for the first half of 2025, with net profit expected to be CNY 80 million to CNY 92 million, a year-on-year decrease of 84.53% to 86.55%, and non-recurring net profit projected at CNY 34 million to CNY 46 million, a year-on-year decrease of 91.58% to 93.78% 2025 Semi-Annual Performance Forecast vs. Prior Period | Indicator | 2025 H1 Forecast (CNY Million) | 2024 H1 Actual (CNY Million) | YoY Change | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Shareholders | 80.00 ~ 92.00 | 594.73 | -86.55% ~ -84.53% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items | 34.00 ~ 46.00 | 546.46 | -93.78% ~ -91.58% | [Prior Period Operating Performance and Financials](index=1&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%83%85%E5%86%B5) In the first half of 2024, the company achieved a net profit attributable to owners of the parent of CNY 594.73 million, with net profit excluding non-recurring items at CNY 546.46 million, and basic earnings per share of CNY 0.22 2024 Semi-Annual Key Financial Data | Indicator | Amount | | :--- | :--- | | Total Profit (CNY Million) | 765.73 | | Net Profit Attributable to Shareholders (CNY Million) | 594.73 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items (CNY Million) | 546.46 | | Earnings Per Share (CNY/share) | 0.22 | [Main Reasons for Current Period Performance Decline](index=2&type=section&id=%E4%B8%89%E3%80%81%E6%9C%AC%E6%9C%9F%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%87%8F%E7%9A%84%E4%B8%BB%E8%A6%81%E5%8E%9F%E5%9B%A0) The significant performance decline is primarily due to core business impacts, including revenue and gross profit pressure from fluctuating customer demand, and increased finance costs from higher financing to ensure production amidst slower customer payments; the company plans to address this by enhancing operational efficiency, strengthening cost control, and optimizing financing structure - Revenue Pressure: Due to phased fluctuations in customer demand, the company's operating revenue declined year-on-year, impacting gross margins for some products[6](index=6&type=chunk) - Cost Pressure: Slower customer payments led to temporary working capital pressure, increasing the company's financing needs and resulting in a year-on-year rise in finance costs[6](index=6&type=chunk) - Mitigation Measures: The company will focus on improving operational efficiency, strengthening cost and expense control, enhancing operating cash flow, and optimizing financing management to bolster core competitiveness[6](index=6&type=chunk) [Risk Warning](index=2&type=section&id=%E5%9B%9B%E3%80%81%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company explicitly states that this performance forecast is a preliminary estimate based on the finance department's professional judgment and has not been audited by a certified public accountant; final accurate financial data will be subject to the officially disclosed 2025 semi-annual report, cautioning investors about investment risks - This performance forecast data is a preliminary estimate, unaudited, and the final results will be based on the official 2025 semi-annual report[7](index=7&type=chunk)[8](index=8&type=chunk)

金十数据7月14日讯，航发动力公告，预计2025年半年度实现归属于母公司所有者的净利润8000万元到 9200万元，与上年同期相比，将减少5.03亿元到5.15亿元，同比减少84.53%到86.55%。预计2025年半年 度实现归属于母公司所有者的扣除非经常性损益的净利润3400万元到4600万元，与上年同期相比，将减 少5亿元到5.12亿元，同比减少91.58%到93.78%。 航发动力：预计2025年上半年净利润同比减少84.53%-86.55% ...

Core Viewpoint - The high-end equipment sector is experiencing mixed performance, with notable movements in specific stocks and a positive outlook for military and defense industries due to global political tensions and domestic production trends [1][3][4]. Group 1: Market Performance - As of July 14, 2025, the CSI High-end Equipment Sub-index fell by 0.25%, with stocks showing varied performance; Huajin Technology led with a 4.56% increase, while companies like Les Information and Haige Communication saw declines [1]. - The High-end Equipment ETF (159638) recorded a turnover rate of 1.89% and a transaction volume of 22.41 million yuan, with an average daily transaction of 53.10 million yuan over the past month [3]. Group 2: Fund Flows and ETF Performance - The latest scale of the High-end Equipment ETF reached 1.187 billion yuan, with a net inflow of 17.57 million yuan over the past five days, including a single-day peak of 7.55 million yuan [3]. - The ETF has seen a 29.59% increase in net value over the past year, with the highest monthly return since inception being 19.30% and an average monthly return of 6.55% [3]. Group 3: Industry Outlook - According to Guosen Securities, the defense and aerospace equipment sector benefits from industrial upgrades and the trend towards self-sufficiency, with core equipment localization being fundamental for the industry's rise [4]. - Emerging fields such as humanoid robots and gas turbines are making significant breakthroughs, indicating long-term growth potential, while traditional sectors like shipbuilding and nuclear power equipment maintain stable demand [4]. - The top ten weighted stocks in the CSI High-end Equipment Sub-index account for 45.22% of the index, with significant players including AVIC Shenyang Aircraft, Aero Engine Corporation, and AVIC Optical [4][6].

Group 1 - The aerospace industry index (CN5082) has seen a slight increase of 0.19% as of July 14, 2025, with notable gains from companies such as Huayin Technology (688281) up 4.52% and Construction Industry (002265) up 3.61% [1] - The Aerospace ETF (159227) has experienced continuous net inflows over the past 12 days, totaling 305 million yuan, with a peak single-day inflow of 49.81 million yuan [1] - The 2025 Aerospace Information Conference held in Hefei focused on technological advancements in aerospace information, commercial space, and low-altitude economy, highlighting computational power as a key bottleneck in China's commercial aerospace development [1] Group 2 - China's defense budget has maintained a growth rate of around 7%, with defense spending accounting for less than 1.5% of GDP, indicating significant growth potential in the sector [2] - The military industry is expected to enter a recovery phase in 2025, with a return to normal order levels, leading to improved performance and valuation in the sector [2] - The Aerospace ETF (159227) tracks the aerospace index and has a high concentration in defense and military sectors, with 98.2% weight in the industry [2] Group 3 - As of June 30, 2025, the top ten weighted stocks in the aerospace industry index (CN5082) account for 49.42% of the index, including companies like Guangqi Technology (002625) and AVIC Shenyang Aircraft Corporation (600760) [3]

Group 1 - The core strategy of the company is to implement a collaborative development approach for military and civilian aircraft, as well as domestic and international markets, focusing on the low-altitude economy and general aviation engine market [1] - The company has achieved significant results in the first half of 2025, particularly in the development of the AES100 engine, which meets international airworthiness standards and has overcome over 200 core technologies [3] - The AES100 engine has received a production license from the Civil Aviation Administration of China in April 2025, marking its transition to industrial mass production [3] Group 2 - Following the success of the AES100, the company has developed the AEP100 turboprop engine, which has a power output of 900 kW and is designed for various aircraft types, showcasing strong performance and market potential [4] - The AEP100 engine has been recognized in the market, with its initial delivery for the W5000 unmanned cargo aircraft in June 2025, indicating a significant step towards commercialization [4] - The company is actively engaging with domestic general aviation platforms to analyze application scenarios and customer needs for the AEP100 engine, aiming to promote the localization of aviation power systems [4] Group 3 - The company plans to strategically allocate resources to proactively explore both domestic and international markets, aiming for continued success in the general aviation power brand [5]

Core Insights - Shenyang is set to become a Northeast Asia international center city, with a clear roadmap outlined in the "Action Plan" for 2025-2035, focusing on building a comprehensive hub and four centers: advanced manufacturing, modern service industry, regional technology innovation, and cultural center [1][4][5] Development Strategy - The "Action Plan" includes 22 specific action plans aimed at enhancing Shenyang's industrial capabilities, such as developing world-class industrial clusters and expanding the airport to create a Northeast Asia "three-hour aviation circle" [5][6] - Shenyang's GDP is projected to reach 902.71 billion yuan in 2024, with a growth rate of 5.2%, indicating strong economic support for its new positioning [5][6] Low-altitude Economy Focus - The emphasis on low-altitude economy development is highlighted, with Shenyang aiming to establish itself as a national low-altitude economic pilot zone, leveraging its strong aviation manufacturing base [1][9][10] - Shenyang ranks 10th in the "Low-altitude Economy Linkage Index" with a score of 43.16, the only city in Northeast China to make the top ten, showcasing its leading position in the region [10][11] Industrial Strengths - Shenyang's aviation industry is robust, with a complete industrial chain from military to civil aviation, and a projected aviation industry scale exceeding 100 billion yuan by 2024 [10][14] - The city is focusing on developing three key advanced manufacturing clusters: robotics and intelligent manufacturing, aviation, and industrial mother machines, aiming for a total industrial scale of 1.1 trillion yuan [6][7] Innovation and Infrastructure - Shenyang's innovation concentration ranks sixth nationally, with strong performance in environmental friendliness and infrastructure, although it faces challenges in capital activity [13] - The city plans to establish over 100 low-altitude economy-related enterprises within three years, targeting an industry scale of 3 billion yuan [13][15] Future Prospects - The development path for Shenyang's low-altitude economy is prioritized, with a focus on both manned and unmanned aerial vehicle industries, supported by local research institutions and enterprises [14][16] - Shenyang aims to transition from research and manufacturing to a full industrial chain approach, enhancing its ecosystem for low-altitude economic development [18]

Core Viewpoint - A natural disaster occurred near the Jilong port at the China-Nepal border on July 8, resulting in some missing persons and damage to local communication and transportation infrastructure [1] Company Response - The China Aviation Industry Corporation (AVIC) dispatched a team of Wing Loong emergency drones to the disaster area on July 8, 9, and 10 to conduct urgent reconnaissance and communication support tasks [1] - During the operation, the team successfully restored access for over 2,000 users across three network providers, handling a total data flow of over 23GB [1]

Group 1 - The core viewpoint of the news is the performance of the China Defense Index, which has shown significant growth over the past month, three months, and year-to-date, indicating a positive trend in the defense sector [1][2] - The China Defense Index has increased by 7.16% in the last month, 10.26% in the last three months, and 10.50% year-to-date, with a current value of 1589.12 points and a trading volume of 24.275 billion yuan [1] - The index comprises listed companies under the ten major military industrial groups and those providing weaponry and equipment to the armed forces, reflecting the overall performance of defense industry stocks [1] Group 2 - The top ten weighted stocks in the China Defense Index include AVIC Shenyang Aircraft (7.9%), AVIC Optoelectronics (6.1%), Aero Engine Corporation of China (6.0%), and others, indicating a concentration in specific companies [1] - The market distribution of the index shows that the Shanghai Stock Exchange accounts for 56.19% and the Shenzhen Stock Exchange for 43.81%, highlighting the geographical distribution of investments [2] - The industry composition of the index indicates that 75.06% is in the industrial sector, 12.42% in materials, 7.07% in information technology, and 5.45% in communication services, reflecting the focus on industrial applications [2]

Group 1 - The China Aerospace and Aviation Industry Index (CN5082) has seen a strong increase of 1.02% as of July 11, 2025, with notable gains in constituent stocks such as Yaguang Technology (300123) up 4.15% and Beifang Navigation (600435) up 4.13% [1] - The Aerospace and Aviation ETF (159227) has risen by 0.55%, with the latest price reported at 1.1 yuan [1] - The China Astronaut Research and Training Center held a press conference on July 9, where astronauts shared their experiences from a 183-day mission in space [1] Group 2 - The Aerospace and Aviation ETF (159227) tracks the China Aerospace Index and has a high concentration in the defense and military sector, with a weight of 98.2%, making it the purest military ETF in the market [2] - The ETF focuses on aerospace capabilities, with a significant weight of 66.5% in the "Aerospace + Aviation Equipment" category within the secondary industry [2] - As of June 30, 2025, the top ten weighted stocks in the China Aerospace and Aviation Industry Index (CN5082) account for 49.42% of the index, including companies like Guangqi Technology (002625) and AVIC Shenyang Aircraft Corporation (600760) [2]

Group 1 - The China Defense Index (399973) has increased by 0.97% as of July 11, 2025, with notable gains from stocks such as Hongyuan Electronics (603267) up 4.62% and Beifang Navigation (600435) up 4.27% [1] - The Defense ETF (512670) has risen by 0.91%, with the latest price at 0.78 yuan, and has seen a trading volume of 1.72 billion yuan [1] - The Defense ETF has achieved a new high in scale, reaching 6.493 billion yuan, and has experienced continuous net inflows totaling 9.47 billion yuan over the past week [1] Group 2 - The Defense ETF closely tracks the China Defense Index, which includes listed companies under the top ten military groups and those providing equipment to the armed forces [2] - As of June 30, 2025, the top ten weighted stocks in the China Defense Index account for 43.29% of the index, with notable companies including AVIC Shenyang Aircraft (600760) and AVIC Engine (600893) [2] - The management and custody fees for the Defense ETF are the lowest among its peers at only 0.40% [2]