Guizhou Space Appliance forecasts 77% net profit decline

Guizhou Space Appliance expects net profit for the first half of 2025 to fall 77-79% to 81-90 million yuan, down from 385 million yuan in the same period last year.

Basic earnings per share are estimated at 0.18-0.20 yuan, dropping from 0.84 yuan previously.

The company attributes the decline to decreased product prices, extended customer acceptance cycles in the defense sector affecting revenue recognition, rising raw material costs, and higher depreciation expenses from assets acquired after a 2021 private placement.

Despite these challenges, the manufacturer reported substantial order growth in defense, new energy, and data communication fields.