Jiangxi Xinyu Guoke Technology Co Ltd Class A

Guoke Military Industry's management responded on September 17 at the 2026 semi-annual results briefing to market concerns about the delivery progress of the 466 million yuan military trade order and the shift of operating cash flow from positive to negative. Vice Chairman and General Manager Huang Junhua said that the wholly-owned subsidiary Aerospace Jingwei signed a contract last October for 466 million yuan of military trade product engine charge, with a performance period until December 25, 2026. As of the end of 2025, revenue of 32 million yuan had been recognized, and the remaining 434 million yuan is being organized for production, testing, and delivery acceptance in batches, with delivery planned to be completed within 2026. However, the order's implementation is subject to uncertainty from factors such as the international geopolitical environment, overseas demand, procedural compliance approvals, and business negotiation cycles. In the first half of this year, the company's ammunition and equipment segment was under pressure. Net profit of subsidiaries Xianfeng Company and Jiujiang Guoke fell 98% year-on-year and turned from profit to loss respectively. Huang Junhua said this was mainly due to delayed signing of order contracts, with multiple intelligent and new-type ammunition and fuzes still in the research, trial production, and appraisal stage, and that the performance pressure was a phased fluctuation. Net operating cash flow turned from positive to negative year-on-year, mainly because delayed contract signing postponed the disbursement of commencement payments. There has been no trend-based adjustment in the military prepayment model. Contract liabilities surged 232% from the beginning of the period, and inventory growth was due to production and stockpiling organized according to orders in hand. The power expansion project has fully commenced. Once completed, it will expand solid power charge and power module production capacity, taking into account military products, military trade, and commercial aerospace supporting demand. In terms of performance, the company achieved operating revenue of 384 million yuan in the first half of 2026, down 8.02% year-on-year, and net profit attributable to shareholders of the listed company of 59.0569 million yuan, down 23.41% year-on-year.

Xinyu Guoke released its 2026 interim report. First-half net profit attributable to the parent was 17.7193 million yuan, down 32.76% year on year, while operating revenue was 157 million yuan, down 4.27%. Net profit excluding non-recurring items fell 45.28%, and net cash flow from operating activities turned from positive to negative at minus 29.9148 million yuan, a decline of 545.71%, mainly due to increased cash outflows for purchasing goods, paying taxes, and operating-related payments. Overall gross margin fell to 40.21% from 48.60% in the same period last year. Pressure on net profit came from a 22.07% decline in military product revenue and an 11.37% rise in operating costs, compounded by pressure from military product pricing and cost control. By product, military product revenue was 89.1244 million yuan with a gross margin of 37.70%, down 10.21 percentage points year on year. Civilian product revenue was 62.0879 million yuan, up 29.38% year on year, with a gross margin of 46.10%, still higher than military products but down 5.94 percentage points year on year. Civilian product growth was driven by government bond projects for weather modification, but rising costs eroded profit. Other business revenue was 6.1187 million yuan, surging 208.44%. Regarding shareholders, Chairman Yuan Yougen reduced his holdings by 30,000 shares, General Manager Liu Aiping and Deputy General Manager He Guangming each reduced by 20,000 shares, and the two shareholding platforms Xinyu Kexin and Xinyu Guohui also made small reductions.

Xinyu Guoke released its 2026 interim report. The company's total operating revenue was 157 million yuan, down 4.27% year-on-year. Net profit attributable to the parent company was 17.7193 million yuan, down 32.76% year-on-year. Net cash flow from operating activities was negative 29.9148 million yuan, down 545.71% year-on-year. The company's asset-liability ratio was 29.25%, gross margin was 40.21%, ROE was 2.76%, and diluted earnings per share was 0.06 yuan. The number of shareholders was 25,700, and the shareholding ratio of the top ten shareholders was 68.63%.