China Avionics forecasts lower 2024 profit amid asset impairment provisions

China Avionics Systems (SSE:600372) anticipates a decrease in its 2024 profit, primarily due to asset impairment provisions, as indicated in its filing on its upcoming shareholder meeting to authorize the board to determine 2025 interim dividend plan. The company projects a net reduction in total profit of CNY457.40 million, reflecting a CNY28.74 million provision for credit losses on receivables and a CNY176.49 million provision for impairment losses on inventory and fixed assets. These expected losses, the company states, are due to industry-wide issues and delayed customer payments.