Shaanxi Aerospace Power Hi-Tech Co Ltd

Aerospace Power disclosed on September 23 an update on litigation brought by small and medium investors. The company received a civil judgment from the Xi'an Intermediate People's Court in Shaanxi Province concerning the first-instance ruling in lawsuits involving 112 investors, with compensation of 5.4143 million yuan including litigation fees and related expenses. Previously, in March 2024, the company disclosed that it had received an administrative penalty decision from the China Securities Regulatory Commission. It was penalized because its intelligent data module business inflated revenue and profit from 2016 to 2020, causing false records in relevant periodic reports. The commission determined that this business was one link in Sui Tianli's private network communications self-circulation operation, that Aerospace Power was effectively a funding conduit for the transactions, and that all related transactions were fictitious and lacked commercial substance. In January this year, the company received a first-instance judgment in lawsuits involving 95 investors, with an amount of 16.0818 million yuan including litigation fees and related expenses, and 146 investors were granted permission to withdraw their suits. The latest announcement shows that as of the disclosure date, there were 668 investor lawsuits against Aerospace Power in total. Of these, 258 have obtained effective court rulings and have been fully executed, 269 investors have reached settlements with the company and all settlement payments have been made, and 113 investors have received first-instance judgments. The company said the compensation amounts involved in the rulings have been accrued as estimated liabilities, and it will actively respond to the lawsuits in accordance with legal procedures.

Aerospace Power released its 2026 interim report, showing total operating revenue of 262 million yuan and a net loss attributable to the parent company of 56.892 million yuan, narrowing the loss by 16.2323 million yuan compared with the same period last year. Net cash outflow from operating activities was 90.775 million yuan, an improvement of 29.5925 million yuan from a year earlier, marking a third consecutive year of increase. The company's asset-liability ratio was 49.32 percent, down 1.53 percentage points year on year; gross margin was 8.87 percent, up 2.37 percentage points year on year; return on equity was negative 4.59 percent, up 0.66 percentage points year on year. Diluted earnings per share were negative 0.09 yuan, an improvement of 0.03 yuan year on year. The number of shareholders was 149,100, and the top ten shareholders held 47.23 percent of total share capital.