Core Viewpoint - Beijing Andavil Technology Co., Ltd. has provided a detailed response to the Shenzhen Stock Exchange regarding its application for a specific stock issuance, addressing key issues such as performance fluctuations, expense ratios, and customer dependency, which offers important insights for investors [1] Performance Fluctuations: Analysis of Causes and Reasonableness - The company's revenue for the reporting period was 475.46 million, 412.55 million, 850.86 million, and 365.51 million, with net profits of 10.43 million, -45.82 million, 113.49 million, and 13.90 million, and a decline to 4.47 million in the first nine months of 2024 [2] - The business is divided into military and civilian products, with military products accounting for 74.72% of revenue in 2023 [2] - The increase in 2023 was primarily due to the recognition of delayed revenue from 2022 amounting to 97.29 million and concentrated deliveries of the XX training system generating 217.78 million [2] - The decline in 2024 is attributed to delays in military product deliveries due to client acceptance issues and the absence of confirmed contracts, affecting 83.55 million in revenue [2] Military Material Engineering Service Business: Growth, Gross Margin, and Sustainability - The military material engineering service business generated 217.78 million in 2023, benefiting from the XX training system project, which began in 2020 [3] - Other business segments also saw significant revenue increases, with airborne equipment development up 127.63%, aviation maintenance up 22.55%, and measurement and control equipment development up 9.60% [3] - The average revenue contribution from this business from 2019 to 2023 was 9.06%, indicating a minor impact on overall business operations [3] Expense Ratios: Reasons for Being Above Industry Average and Compliance - The sales expense ratio and management expense ratio were 6.43% and 25.68%, respectively, exceeding the average levels of comparable companies by 2.80% and 14.91% [4] - Business entertainment expenses increased but remained a small and stable proportion of revenue, primarily due to differences in client structure and business development stages [4] - The high sales expense ratio is attributed to the customized nature of the products requiring frequent on-site communication, while the management expense ratio is influenced by the company's development stage and regional economic conditions [4] Customer Concentration: Industry Practices, Dependency Risks, and Cooperation Stability - The concentration of the top five customers is relatively high due to the concentrated downstream market, but there is no significant dependency on any single customer [6] - The company has a long-standing and stable relationship with its top five customers, with successful expansion into new clients [6] - The changes in the top five customers during the reporting period were due to fluctuations in customer demand, with no loss of existing clients [6]

Group 1: Report Summary - Report industry: Aerospace [2] - Report research company: Xinyu Guoke [17] - Report core view: The company's pyrotechnic devices are the main economic growth point, and the company plans to expand production. It is expected that the operating income and total profit will increase steadily compared with 2024 [24][28][35] Group 2: Research Basic Information - Research object: Xinyu Guoke [17] - Industry: Aerospace [17] - Reception time: May 20, 2025 [17] - Company reception personnel: Director and Board Secretary Yan Jicheng, Securities Affairs Representative Chen Hua [17] Group 3: Detailed Research Institutions | Reception Object | Reception Object Type | Institution - Related Personnel | | --- | --- | --- | | Guolian Minsheng | Securities Company | Ye Xin | | Western Securities | Securities Company | Li Yuquan | | Dunhe Asset Management | Asset Management Company | Chen Junyuan | | CITIC Construction Investment | Securities Company | Lei Hao | [18] Group 4: Main Content Information - Pyrotechnic device procurement: The variety of the company's pyrotechnic devices is increasing, and the proportion of pyrotechnic devices in user procurement is gradually increasing. The company received high - priced pyrotechnic device orders in recent years [24] - Number of winning bid models: Currently, there are four or five winning bid models, which are the main growth point of military products if they are finalized and mass - produced [25] - Delivery of high - priced pyrotechnic devices: A high - priced pyrotechnic device was delivered in batches last year, but the quantity was only 40% - 50% of the expectation. There are still orders for delivery this year [27] - Expansion plan: The expansion plan includes building a new special equipment production line (land acquisition completed in February this year and about to start construction) and internal technological transformation [28] - Military production capacity: Currently, the production capacity is relatively sufficient. The company will consider whether to accept orders based on delivery time and profit [29] - Overseas military trade business: The company is involved in overseas military trade business through indirect export, but the proportion is not disclosed [32] - Direct foreign user connection: The company does not have military export qualifications and needs to cooperate with military trade companies for military exports [33] - Conversion of production lines: In theory, the civil explosive production line can be converted into a military production line [34] - Business expansion to safety airbags: The company has the ability to provide igniters for safety airbags but has not considered entering the entire safety airbag business for the time being [35] - Target growth rate in 2025: The operating income and total profit are expected to have stable growth compared with 2024 [35]