Loss reduction exceeds 40%! Chengfei Integration still loses 43.94 million in 2025, what signals are being released?

Despite reporting a full-year loss, Chengfei Integration (002190) has begun to see improvements in its operations for 2025.

According to the recently released annual report, in 2025, the company achieved an operating revenue of 2.308 billion yuan, a decrease of 2.48% year-on-year; net profit attributable to shareholders was a loss of 43.9491 million yuan, a 41.47% reduction in loss compared to the previous year; and net profit after deducting non-recurring gains and losses was a loss of 50.6194 million yuan, a 26.33% decrease in loss. In the fourth quarter of 2025, Chengfei Integration achieved an operating revenue of 816 million yuan, up 1.77% year-on-year; and a net loss attributable to shareholders of 9.4345 million yuan, an 80.89% reduction in loss.

Key Financial Data and Indicators for Chengfei Integration in 2025

Looking at gross profit margins of main business segments, the gross margin for tooling molds and automotive parts was 7.83%, down 2.15 percentage points year-on-year. This decline was mainly due to increased manufacturing costs from the relocation and technical upgrades of the subsidiary Integration Ruihu, as well as lower processing fees for automotive parts, which reduced margins. Although the aerospace parts segment had a gross margin of -0.31%, it increased by 57.1 percentage points year-on-year, mainly because of a rebound in production volume and sales, alleviating the negative impact caused by high fixed costs due to insufficient orders. Overall, since tooling molds and automotive parts account for 99.45% of revenue, the decline in their gross margins negatively impacted the company’s overall gross profit margin, which was 7.95% in 2025, down 1.78 percentage points from the previous year.

Financial and investment reporters note that in recent years, Chengfei Integration’s performance has been quite volatile. Over the past three years, net profit in 2023 saw a sharp decline, with large losses in 2024, and losses began to narrow in 2025. Will the company’s fundamentals continue to improve in 2026? The industry presents both opportunities and challenges.

Firstly, regarding Chengfei Integration’s main revenue source—the automotive industry—according to the China Association of Automobile Manufacturers, China’s total vehicle sales are expected to reach 34.75 million units in 2026, with new energy vehicle sales hitting 19 million, an increase of 15.2%. Among these, intelligent connected vehicles are projected to account for 70%, with the market share of high-end models continuing to grow, creating strong demand for upstream components such as precision molds, lightweight parts, and electric drive systems. However, while market space expands, the industry also faces structural overcapacity due to insufficient utilization rates, as well as challenges from raw material price fluctuations, shortened technology iteration cycles, and regional restructuring of global supply chains. Competition is increasingly focused on technological leadership, delivery agility, and full lifecycle service capabilities.

Secondly, from the aerospace perspective, the military aviation sector continues to deepen modernization efforts. The evolution of warfare has clearly directed equipment development toward hypersonic, unmanned, and intelligent systems. New operational forces represented by unmanned and smart systems are accelerating integration into existing combat frameworks, driving simultaneous upgrades in equipment capabilities and industrial technology structures. The steady recovery of the global aviation market provides broad opportunities for civil aircraft industries, with large-scale delivery of domestically produced large aircraft and the expansion of emerging sectors like low-altitude economy injecting strong endogenous momentum into the aerospace manufacturing supply chain. In the short term, domestic large aircraft production capacity still needs further breakthroughs, but the long-term trend remains positive, and the industry is gradually moving toward high-quality development. Overall, 2026 is expected to be a critical window for growth in the aerospace parts industry, with both market expansion and localization substitution deepening. However, the industry also faces challenges such as accelerated technological iteration and the need to enhance high-precision manufacturing and supply chain coordination.

| Financial and Investment Reporter Lin Ke |