AVIC Shenyang (600760.SH) released its interim results for the first half of 2026 on August 27, revealing a significant downturn. During the period, the company recorded operating revenue of 6.191 billion yuan, a year-on-year decline of 57.68%. Net profit attributable to shareholders stood at 473 million yuan, down 58.37% from a year ago, while deducted non-recurring profit and loss net profit fell 62.54% to 402 million yuan.
As one of China's leading manufacturers of aviation defense equipment, AVIC Shenyang primarily focuses on aviation product manufacturing, with core offerings including defense equipment and civil aviation products. The company is controlled by the Aviation Industry Corporation of China, and its main production bases include Shenyang Aircraft Corporation and other subsidiaries.
The company's stock has experienced notable volatility this year. At the start of 2026, shares were trading at elevated levels, closing at 62 yuan per share on January 9. Since then, the stock has trended downward overall. By the close on August 27, AVIC Shenyang shares were priced at 45.13 yuan, bringing the total market capitalization to approximately 127.94 billion yuan.
The company had already flagged the disappointing first-half performance in its earnings preview released in July. According to that statement, the products delivered during the reporting period were primarily new-generation equipment, with production organization and capacity expansion still in an optimization phase. Additionally, delivery schedules for certain supporting components were affected, leading to a significant year-on-year decline in product delivery volumes, which in turn drove the revenue drop. The decline in revenue scale subsequently weighed heavily on net profit.
Quarterly data indicates some improvement in the second quarter. In the first quarter of this year, AVIC Shenyang generated revenue of 2.157 billion yuan, down 70.78% year-on-year, while net profit attributable to shareholders fell 77.46% to 165 million yuan. Based on the half-year report, second-quarter revenue reached approximately 4.034 billion yuan, with net profit of roughly 308 million yuan, representing sequential growth of about 87% and 86%, respectively, compared to the first quarter.
The current downturn extends the adjustment trend that began in 2025. In the first half of that year, the company posted revenue of 14.629 billion yuan and net profit of 1.136 billion yuan. Unlike conventional manufacturing, military aviation equipment involves lengthy development and production cycles and complex supply chains, making single-quarter product deliveries and revenue recognition inherently volatile. As such, following the simultaneous decline in both revenue and profit in the first half, the pace of capacity ramp-up for new-generation equipment and the acceleration of product deliveries will be key metrics to watch for AVIC Shenyang's operational performance in the second half of the year.