Beimo High-Tech's 2025 Revenue and Net Profit Surge Over 11 Times, Military-Grade Consumables Characteristics Combined with Civil Aviation Second Growth Driver Taking Effect

On the evening of March 17, North Motor High-Tech (002985.SZ), a leader in civil and military aviation brakes, released its 2025 annual report. Benefiting from the recovery of downstream customer orders, cost reduction and efficiency improvements, and decreased credit impairment losses, the company’s annual performance experienced explosive growth.

The financial report shows that in 2025, the company achieved operating revenue of 918 million yuan, a year-on-year increase of 70.66%; net profit attributable to shareholders of 200 million yuan, a surge of 1138.28% year-on-year; net profit after non-recurring gains and losses of 195 million yuan, up 3072.30%; and basic earnings per share of 0.60 yuan, an increase of 1100%. The company plans to distribute a cash dividend of 1.3 yuan (tax included) for every 10 shares to all shareholders, totaling 43.141 million yuan, accounting for 21.57% of the net profit attributable to shareholders in 2025.

Quarterly performance improved steadily, with operating cash flow doubling year-on-year

Looking at quarterly data, the company’s 2025 performance showed a trend of improvement each quarter. Revenue was 262 million yuan, 198 million yuan, 191 million yuan, and 268 million yuan for Q1 to Q4 respectively; net profits attributable to shareholders were 53.78 million yuan, 27.18 million yuan, 46.56 million yuan, and 72.49 million yuan, with the fourth quarter contributing over 36% of the annual net profit.

Cash flow performance was particularly impressive. In 2025, net cash flow from operating activities was 378 million yuan, a year-on-year increase of 105.10%. The company stated that this was mainly due to increased business volume and receivables, as well as reduced payments for procurement, the implementation of cost reduction and efficiency measures, and decreased salary expenses, all contributing to improved cash flow.

Significant growth in takeoff and landing systems, with improved accounts receivable collection

In terms of products, the company’s core business performed strongly in 2025. Aircraft takeoff and landing systems generated revenue of 614 million yuan, a 96.21% increase, accounting for 66.84% of total revenue, with a gross profit margin of 40.97%. Testing services achieved revenue of 252 million yuan, up 20.06%, representing 27.41% of total revenue, with a gross profit margin of 62.96%.

Regarding customers, the top five clients accounted for a total sales amount of 530 million yuan, representing 57.77% of the annual sales. The largest customer contributed 272 million yuan, or 29.64%.

The company stated that the main reason for revenue growth was the normalization of approval processes following personnel adjustments among downstream clients, leading to a return to normal contract signing progress. Additionally, the company continued to strengthen cost reduction and efficiency improvements, optimized expense control, and increased efforts to recover accounts receivable, resulting in a decrease in credit impairment losses compared to the previous year.

In terms of expenses, in 2025, sales expenses were 37.637 million yuan, up 28.25%; management expenses were 63.16 million yuan, up 1.54%; financial expenses were 5.697 million yuan, down 26.95%; and R&D expenses reached 76.52 million yuan, an increase of 32.84%, mainly due to new R&D projects and changes in the stages of existing projects, leading to increased R&D investment.

R&D investment increased by over 30%, with key breakthroughs in mass production of multiple military models

As a leader in the military industry segment, North Motor High-Tech continued to increase R&D efforts. In 2025, R&D expenditure was 76.52 million yuan, up 32.84%. By the end of the reporting period, the company had 152 R&D personnel, accounting for 15.51% of the total workforce.

During the reporting period, the company made significant progress in several military aviation products:

In landing gear systems, the company completed the status verification of a certain type of landing gear and achieved mass delivery; two models are undergoing test flights and are about to enter small-batch production; six models are conducting ground tests and will soon enter flight testing; three models are in the design phase and will soon move into engineering prototype development.

In brake control systems and aircraft wheels, the company completed status verification and mass delivery of a certain type of five-model aircraft wheel and support equipment; a certain type of aircraft wheel completed phase verification and small batch delivery; a temperature and pressure monitoring and cooling device for aircraft completed design verification.

Regarding brake discs, the company continued R&D and application of carbon-carbon and carbon-ceramic brake discs. The pre-production line for preforms has completed small-batch testing, and the automated production line for carbon-carbon/carbon-ceramic brake discs has entered mass production. The company completed preliminary research on carbon-carbon composites used in high-speed, heavy-load clutch devices for certain engines, continuously expanding the application fields of carbon discs.

Additionally, multiple ongoing projects are progressing steadily. The R&D projects disclosed in the annual report show that the RD104 aircraft main wheel has completed preliminary testing and is undergoing structural optimization; the RD105 aircraft wheel brake system control unit has completed inertial table testing; the RD97 aircraft brake control components have completed inertial and semi-physical testing.

Civil aviation business accelerates certification, with a second growth engine on the horizon

In the civil aviation sector, subsidiary Saini Aviation Equipment (Hebei) Co., Ltd. obtained several key certifications in 2025. The company passed the aerospace AS9100D quality system certification and completed NADCAP special process certifications in nondestructive testing, heat treatment, shot peening, flame spraying, and electroplating, and is actively expanding customer base. Meanwhile, Saini is gradually developing the capability to undertake external processing of landing gear maintenance for large domestic airlines and MROs.

The company stated that with domestically produced aircraft like the C919 and C929 entering industrialization and large-scale development, the full domesticization of supporting equipment for large aircraft is imminent. The company will accelerate the development of landing gear landing systems for domestic large aircraft, supporting the full domesticization of related equipment.

From industry prospects, according to the “China Commercial Aircraft Market Forecast 2024-2043,” over the next twenty years, China is expected to receive 9,323 aircraft over 50 seats, valued at approximately $1.4 trillion. The continuous growth of civil aviation fleets will bring broad market opportunities for the development, maintenance, and testing equipment of civil aircraft systems.

In terms of international competition, the civil aviation brake and landing system market is currently dominated by foreign giants, including the US’s Goodrich and Honeywell, France’s Messier Bugatti, and the UK’s Dunlop Aviation. For the company, there is significant potential for domestic substitution of civil aviation brake products.

Looking at industry outlook, as China updates its weaponry and accelerates the deployment of new equipment, the informatization and domestication of military equipment will generate substantial new testing demands, driving rapid growth in the testing industry.

2026 marks the beginning of the “14th Five-Year Plan.” The company stated in its annual report that it will focus on strengthening the following areas: consolidating the military product main position, advancing mass production and R&D of various military models; expanding the civil aviation market and accelerating the development of the second growth curve; enhancing military testing capabilities, expanding product categories and customer base, and continuously increasing market share.

(Source: Cailian Press)