Xinjiang Mechanical Research Institute Co., Ltd. (hereinafter referred to as the "Company" or "Xinyan Shares") received the "Inquiry Letter Regarding the 2025 Annual Report of Xinjiang Mechanical Research Institute Co., Ltd." (GEM Annual Report Inquiry Letter [2026] No. 113) from the Shenzhen Stock Exchange on May 15, 2026. In accordance with the requirements of the inquiry letter, the Company organized relevant departments and personnel to study and verify each question one by one. The specific reply content is now announced as follows:
- The Company achieved a total operating revenue of 63,828.10 million yuan, a year-on-year decrease of 4.01%, and a net profit attributable to the parent company of 4,313.21 million yuan, turning losses into profits. The net profit attributable to the parent company after deducting non-recurring items was -42,507.71 million yuan, and the scale of losses continued to expand. Please ask your company: (1) Based on the industry environment, company competitiveness, operating conditions of comparable companies in the same industry, and subsequent operating arrangements, please explain the reasons for the company's significant losses in net profit attributable to the parent company after deducting non-recurring items for many years, and whether there is any significant uncertainty about its continuous operating ability. (2) Based on the market conditions, pricing standards, business models, main customers, revenue recognition methods, the company's technical advantages and core competitiveness, industry position, and comparable company situations in the aerospace aircraft parts business, please analyze and explain the reasons and rationality for the negative gross profit margin of the business, and whether the corresponding revenue and cost recognition are accurate. (3) Based on the seasonality of revenue recognition, the situation and basis for revenue recognition at the end of the period, and the subsequent payment collection situation, please explain the reasons and rationality for the company's operating revenue and profit in the second quarter of 2025 being significantly lower than other quarters, and whether the timing of revenue recognition is accurate.
【Reply】 (1) Based on the industry environment, company competitiveness, operating conditions of comparable companies in the same industry, and subsequent operating arrangements, please explain the reasons for the company's significant losses in net profit attributable to the parent company after deducting non-recurring items for many years, and whether there is any significant uncertainty about its continuous operating ability.
2025 is a critical period for the company to undergo judicial restructuring and seek rebirth. Facing multiple pressures such as capital shortage, weak market expectations, and the downturn of the industry cycle, the company adheres to ensuring operational continuity and systemic stability as its primary task, and strives to stabilize the core team and supply chain, ensuring the stable operation of the dual main businesses of agricultural and animal husbandry machinery + aerospace (high-end equipment manufacturing). During the reporting period, with the support of restructuring gains, the company achieved a net profit attributable to the parent company of 4,313.21 million yuan, successfully turning losses into profits. However, the total operating revenue for the year was 63,828.10 million yuan, a year-on-year decrease of 4.01%, and the net profit attributable to the parent company after deducting non-recurring items was -42,507.71 million yuan, indicating that the main business has not yet escaped the predicament of losses. The specific situation by segment is as follows:
Unit: RMB million yuan