Finance Association, April 24 (Reporter Wang Bin) Wan Feng Aowei (002085.SZ), a leader in the low-altitude economy, announced this evening that in 2023, the company's revenue and net profit both declined.

According to financial data, Wanfeng Aowei achieved revenue of 16.207 billion yuan last year, a year-on-year decrease of 1.07%; achieved net profit attributable to shareholders of listed companies of 727 million yuan, a year-on-year decrease of 10.14%; and net cash flow from the company's operating activities increased 54.33% year on year to 2.06 billion yuan.

According to research reports from various brokerage firms, Wanfeng Aowei's performance slightly exceeded market expectations. Previously, brokerage firms generally expected the company's net profit for the full year of last year to be around 710 million yuan.

Wan Feng Aowei said that the year-on-year decline in net profit was mainly due to the calculation that Wuxi Xiongwei's goodwill depreciation of 279 million yuan. If the above effects are excluded, net profit attributable to shareholders of listed companies increased 24.35% year on year.

In December of last year, Wanfeng Aowei sold 100% of Wuxi Xiongwei's shares at a total transaction price of 1.1 billion yuan. At the time, Wan Feng Aowei said that the transfer of Wuxi Xiongwei is expected to reduce net profit by 117 million yuan for the year. The company will further focus on core businesses such as magnesium and aluminum alloy to better promote the development of the company's “dual engine” strategy.

According to the 2023 asset impairment preparation announcement issued by Wanfeng Aowei, the company's 2023 asset impairment reserves totaled 332 million yuan. The asset impairment items calculated this time are notes receivable, accounts receivable, other accounts receivable, inventory, and goodwill.

By business, in 2023, the company's automotive metal parts lightweight business achieved revenue of 13.438 billion yuan, a year-on-year decrease of 6.52%, and gross margin increased 1.3% year-on-year. “During the reporting period, the company's aluminum-magnesium alloy business orders were sufficient, and sales increased year-on-year, but revenue declined year-on-year due to falling prices of the main raw materials such as aluminum ingots and magnesium ingots, as well as the strong performance of Wuxi.” Wanfeng Aowei said so.

In terms of innovative general aviation aircraft manufacturing business, Wan Feng Aowei explained that last year, the company's innovative general aviation manufacturing business achieved revenue of 2,769 billion yuan, an increase of 37.94% over the previous year.

Regarding the future development strategy, Wan Feng Aowei stated in its annual report that in 2024, the company will focus on implementing digital transformation with improving operating performance as the core, increasing net cash flow, and will continue to further implement the “dual engine” drive development strategy for lightweight automotive metal parts and innovative manufacturing of general aviation aircraft, and continue to promote the rapid implementation and commercialization of eVTOL cooperation projects.

It is worth mentioning that Wanfeng Aowei announced in February this year that Wanfeng Aircraft has reached a strategic cooperation with a well-known global OEM, and the two sides will cooperate deeply in the fields of eVTOL prototype development, battery systems, B2C/B2B sales, and after-sales network resources. Furthermore, the company's pure electric eDA40 is expected to be mass-produced and delivered next year, and will become the world's first pure electric commercial operating aircraft.

On the same day, the company released its 2024 quarterly report. Net profit for the first quarter of this year was 227 million yuan, an increase of 1.25% over the previous year.