China Aerospace Science and Technology Corporation (CASC) subsidiary listed company Aerospace Dawn suffered poor operational performance in 2024. The state-owned enterprise recently announced that it is expected to incur a net loss of about 400 million yuan in 2024.
The reason for the loss, as explained by Aerospace Dawn in the announcement, is mainly due to price adjustments affecting specific projects in the nuclear equipment industry, resulting in a decrease in revenue for the period based on the final audit price adjustments.
In fact, as early as the mid-year report of 2024, Aerospace Dawn mentioned that factors such as project delays caused by adjustments to customer plans for nuclear equipment and logistics support equipment products were the main reasons for a significant 46.36% year-on-year decrease in revenue to 884 million yuan in the first half of the year.
Aerospace Dawn’s third-quarter report for 2024 showed that the company achieved revenue of 1.303 billion yuan in the first three quarters, a 45.83% year-on-year decrease; net profit attributable to the parent company incurred a loss of 164 million yuan, turning from a profit to a loss year on year. This means that the expected loss in the fourth quarter is estimated to reach around 236 million yuan.
According to statistics, from 2014 to 2023 (excluding the loss in 2018), Aerospace Dawn’s net profit attributable to the parent company totaled 424 million yuan. Including 2018, in nearly a decade, Aerospace Dawn’s net profit attributable to the parent company amounted to 259 million yuan. And in just one year in 2024, the company lost the profit of the previous ten years.
In addition, according to Time Weekly report, since August 2023, the Chairman of Aerospace Dawn has been temporarily performed by the General Manager. The former chairman, Feng Jiehong, who was elected in May 2022, resigned after serving for a little over a year. Feng Jiehong subsequently resigned from the position of People’s Congress representative of the Communist Party of China (CPC) and Chairman of China Aerospace Sanjiang Group Co., Ltd.
Public information shows that Aerospace Dawn is one of the listed companies under China Aerospace Science and Technology Corporation (CASC), and also a subsidiary of Nanjing Mingguang Group Co., Ltd., under CASC.
Aerospace Dawn was founded in September 1999 and went public on the Shanghai Stock Exchange main board in June 2001. The company’s main business includes emerging industries represented by intelligent manufacturing and nuclear equipment, as well as traditional industries represented by logistics support equipment, flexible pipes, environmental protection equipment, pressure vessels, and art engineering.
China Aerospace Science and Technology Corporation is a major central state-owned enterprise in the field of missile industry, aerospace industrial equipment research, design, manufacturing, launch, and maintenance, including ground-to-ground missiles, anti-aircraft missiles, and cruise missiles.