China Avionics Systems takes impairment hit, plans governance overhaul

China Avionics Systems announced a total asset impairment provision of 204.2726 million yuan for the first half of 2025. This comprises 163.2341 million yuan for credit impairment (including 158.3424 million yuan for accounts receivable and 4.8917 million yuan for contract assets) and 41.0385 million yuan for inventory. The impairment will reduce H1 2025 profit by 204.2726 million yuan. The company attributes the credit impairment to delayed collection and increased aging of accounts receivable due to industry conditions, while inventory impairment is linked to changing market demand and product obsolescence.

The company's Eighth Board of Directors approved revisions to its Articles of Association, including the removal of the Supervisory Board, with its functions transferred to the Board of Directors' Audit and Risk Management Committee. These changes align with the new "Company Law" effective July 1, 2024, and are aimed at improving corporate governance. The revisions await shareholder approval at the third extraordinary general meeting on September 16, 2025. Additionally, the company will host an H1 2025 earnings briefing on September 9, 2025, and continues its "quality and efficiency improvement, heavy returns" initiative to enhance shareholder value.