"Star Daily" reported on November 11th (Reporter Wu Xuguang), today (November 11th), Aviation Materials Corporation held the 2024 third-quarter earnings conference.

Affected by industry demand adjustments, Aviation Materials Corporation's performance was under pressure in the first three quarters. At the earnings conference, Ma Xingjie, Vice General Manager, CFO, and Secretary of the Board of Directors, said, "Currently, in terms of downstream market demand, the aviation sector demand is stable, and the company holds an important market position in the aviation market."

The financial report shows that Aviation Materials Corporation's revenue in the first three quarters was 2.196 billion yuan, a year-on-year growth of 0.06%; net income attributable to the parent company was 0.436 billion yuan, a year-on-year decrease of 13.31%; non-net income attributable to the parent company was 0.382 billion yuan, a year-on-year decrease of 24.13%.

Aviation Materials Corporation stated that the net income in the first three quarters decreased by 13.31% year-on-year, mainly due to a year-on-year decrease in revenue in the third quarter, changes in revenue structure, a slight decrease in gross margin, and an increase in R&D investment.

"Although the company's revenue and net income have declined in the short term, from a long-term perspective, the continuous investment in research and development is to enhance the company's core competitiveness," Ma Xingjie added.

In terms of profitability, in the first three quarters of 2024, Aviation Materials Corporation's gross margin was 30.57%, a decrease of 3.95 percentage points year-on-year; net margin was 19.85%, a decrease of 3.06 percentage points compared to the same period last year.

Ma Xingjie stated that the decline in gross margin is mainly due to the rise in raw material prices, as well as changes in product structure, with an increase in the proportion of sales of low-margin products.

As of now, the London Metal Exchange metal nickel spot settlement price is around $16,100 per ton, a decrease of about 8% from the same period last month.

At the earnings conference, regarding the impact of the decline in nickel prices on the company, Yang Hui, the chairman of Aviation Materials Co., Ltd., stated in response to questions from reporters of the Star Daily and some investors that the decrease in raw material prices can reduce the company's raw material procurement costs, increase its gross margin and product competitiveness.

Aviation Materials Co., Ltd. focuses on the research, production, and sales of aerospace-specific components and materials, with main products including titanium alloy precision castings, high-temperature alloy master alloys, aviation rubbers, and flexible components.

Looking forward to the fourth quarter, independent director Ye Zhongming of Aviation Materials Co., Ltd. stated that the fastest growing business sector of the company at present is basic materials.

With the gradual recovery of the civil aviation sector, Aviation Materials Co., Ltd. is in a rapidly developing stage within the aviation and aerospace industry, especially with the continuous development of the civil aircraft manufacturing industry, such as the C919 and ARJ21 domestically produced civil aircraft successively entering mass production.

Regarding the company's product layout and performance contribution in the civil aviation sector, Yang Hui mentioned that in the domestic market, the company's products have been applied in the civil aviation field such as civil aircraft and helicopters; in the international aerospace field, their titanium alloy intermediate casing and other products have been mass-produced in the civil aviation field, generating income, with revenue exceeding 0.1 billion yuan in the first three quarters.