“Science and Technology Innovation Board Daily”, November 11 (Reporter Wu Xuguang) Today (November 11), Aviation Materials Co., Ltd. held a performance briefing for the third quarter of 2024.

Due to adjustments in industry demand, Aviation Materials Co., Ltd.'s performance in the first three quarters was under pressure. At the performance meeting, Ma Xingjie, the company's deputy general manager, financial director, and board secretary, said, “Currently, in terms of the company's downstream market demand, demand in the aviation sector is stable, and the company has an important market position in the aviation market.”

According to financial reports, the operating income of Aviation Materials Co., Ltd. in the first three quarters was 2.196 billion yuan, up 0.06% year on year; net profit to mother was 0.436 billion yuan, down 13.31% year on year; net profit after deducting non-return to mother was 0.382 billion yuan, down 24.13% year on year.

Aviation Materials Co., Ltd. said that the company's net profit for the first three quarters fell 13.31% year on year, mainly due to a year-on-year decrease in operating income in the third quarter, changes in revenue structure, a decline in gross profit, and a year-on-year increase in R&D investment.

“Although the company's operating income and net profit have declined in the short term, in the long run, continued investment in R&D is aimed at enhancing the company's core competitiveness.” Ma Xingjie added.

In terms of profitability, in the first three quarters of 2024, the gross margin of aviation materials shares was 30.57%, down 3.95 percentage points from the previous year; the net interest rate was 19.85%, down 3.06 percentage points from the same period last year.

Ma Xingjie said that the main factors behind the decline in gross margin include rising raw material prices and changes in product structure, and the share of sales of low gross margin products has increased.

In terms of upstream raw materials, up to now, the spot settlement price of nickel metal on the London Metal Exchange is 16,100 US dollars/ton, down about 8% from the same period last month.

At the results meeting, referring to the impact of the drop in nickel prices on the company, Yang Hui, chairman of Aviation Materials Co., Ltd., said in response to questions from the “Science and Technology Innovation Board Daily” reporter and some investors that falling raw material prices can reduce the company's raw material procurement costs and increase its gross margin and product competitiveness.

Aviation Materials Co., Ltd. is an enterprise focusing on R&D, production and sales of special aerospace components and materials. Its main products include titanium alloy precision castings, high temperature alloy master alloys, aviation rubber, elastic components, etc.

Looking ahead to the fourth quarter, Ye Zhongming, an independent director of Aviation Materials Co., Ltd., said that the company's fastest growing business segment is basic materials.

Along with the gradual recovery in the civil aviation sector, the aviation and aerospace industries where Aviation Materials Co., Ltd. is in a stage of rapid development. In particular, the civil aircraft manufacturing industry continues to develop, such as mass production of domestic civil aircraft such as the C919 and ARJ21.

Regarding the company's product layout and performance contribution in the field of civil aviation, Yang Hui explained that in the domestic market, the company's products have already been used in civil aviation fields such as airliners and helicopters; in the international aerospace field, products such as titanium alloy intermediary cases were mass-produced in the civil aviation sector and generated revenue, achieving revenue exceeding 0.1 billion yuan in the first three quarters.