Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 中國航空科技工業股份有限公司 AviChina Industry & Technology Company Limited* (A joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 2357) 2026 INTERIM RESULTS ANNOUNCEMENT Financial Highlights The Board announces that in the first half of 2026, the Company’s businesses have developed steadily and the revenue has continued to increase. For the six months ended 30 June 2026, the Group recorded revenue of RMB37,812 million, representing an increase of RMB347 million or 0.93% as compared with that of RMB37,465 million in the corresponding period of last year. For the six months ended 30 June 2026, the net profit attributable to the owners of the parent company amounted to RMB823 million, representing a decrease of RMB207 million or 20.10% as compared with that of RMB1,030 million in the corresponding period of last year. The board of directors (the “Board”) of AviChina Industry & Technology Company Limited* (the “Company”) hereby announces the unaudited interim results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2026 (the “reporting period”) prepared according to the China Accounting Standards for Business Enterprises as follows:
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2 INTERIM CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 Unit: RMB Items Note January to June 2026 (Unaudited) January to June 2025 (Unaudited) (Restated) I. Total operating income 37,811,562,214 37,465,251,870 Including: Operating revenue 3 37,811,562,214 37,465,251,870 Interest income Earned premium Fee and commission income II. Total operating cost 35,603,879,397 34,714,785,997 Including: Operating cost 3 30,283,115,771 29,889,477,932 Interest expenses Fee and commission expenses Cash surrender amount Net expenses of claim settlement Net provision for insurance contract reserves Policyholder dividend expenses Reinsurance expenses Taxes and surcharges 259,492,337 304,314,255 Selling expenses 5 413,951,850 339,100,579 Administrative expenses 6 2,125,344,488 2,067,510,254 Research and development expenses 7 2,322,471,592 2,169,891,803 Finance costs 8 199,503,359 -55,508,826 Including: Interest expense 225,707,059 182,201,581 Interest income 110,573,366 218,076,531 Add: Other income 9 257,889,368 531,824,475 Investment income (loss to be listed with "-") 10 218,203,766 219,167,880 Including: Income from investment in associates and joint ventures 124,857,728 134,484,683 Derecognition income of financial assets at amortised cost -2,325,993 -395,833 Exchange gain (loss to be listed with "-") Net exposure hedging income (loss to be listed with "-") Income from changes in fair value (loss to be listed with "-") 11 1,957,231 2,896,081 Credit impairment loss (loss to be listed with "-") 12 -40,250,789 -297,045,637 Asset impairment loss (loss to be listed with "-") 13 -70,781,667 -102,856,346 Income from assets disposal (loss to be listed with "-") 5,591,337 962,971 III. Operating profit (loss to be listed with "-") 2,580,292,063 3,105,415,297 Add: Non-operating income 72,047,230 49,096,668 Less: Non-operating expenses 40,236,330 58,465,472 IV. Profit before tax (total loss to be listed with "-") 2,612,102,963 3,096,046,493
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3 Less: Income tax expenses 14 321,429,600 292,374,224 V. Net profit (net loss to be listed with "-") 2,290,673,363 2,803,672,269 (I) Classified according to operating continuity 1.Net profit from continuing operations (net loss to be listed with"-") 2,290,673,363 2,803,672,269 2. Net profit from discontinuing operations (net loss to be listed with "-") (II) Classified according to the ownership 1.Net profit attributable to the owners of the parent company (net loss to be listed with "-") 822,933,877 1,030,217,176 2.Minority profit and loss (net loss to be listed with "-") 1,467,739,486 1,773,455,093 VI. Net of tax of other comprehensive income -439,775,456 243,805,880 Net of tax of other comprehensive income attributable to the owner of the parent company -180,187,302 81,276,810 (I) Other comprehensive income that cannot be reclassified into profit or loss -179,011,256 81,219,439 1.Changes arising from re-measurement of the defined benefit plan 2.Other comprehensive income that cannot be reclassified into profit or loss under the equity method -855,271 -24,557 3.Changes in fair value of other equity instrument investments -178,155,985 81,243,996 4.Changes in fair value of the enterprise’s credit risk 5.Others (II) Other comprehensive income that can be reclassified into profit or loss -1,176,046 57,371 1.Other comprehensive income that can be reclassified into profit or loss under the equity method -2,419 -8,307 2.Changes in fair value of other debt investments 3.Amount charged into other comprehensive income arising from reclassification of financial assets 4.Provision for credit impairment of other debt investments 5.Reserves for cash flow hedge (effective parts of cash flow hedge profit or loss) 6.Translation difference of foreign currency financial statements -1,173,627 65,678 7.Others Net of tax of other comprehensive income attributable to minority shareholders -259,588,154 162,529,070 VII. Total comprehensive income 1,850,897,907 3,047,478,149 Total comprehensive income attributable to shareholders of the parent company 642,746,575 1,111,493,986 Total comprehensive income attributable to minority shareholders 1,208,151,332 1,935,984,163 VIII. Earnings per share: (I) Basic earnings per share (RMB/share) 16 0.103 0.129 (II) Diluted earnings per share (RMB/share) 16 0.103 0.129
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4 INTERIM CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2026 Unit: RMB Items Note 30 June 2026 (Unaudited) 31 December 2025 (Restated) Current assets: Monetary funds 31,375,165,230 30,443,496,700 Settlement reserve Loans to banks and other financial institutions Financial assets held for trading 1,938,691,825 2,342,175,411 Derivative financial assets Notes receivable 17 3,999,161,183 10,564,461,161 Accounts receivable 18 58,667,913,620 55,366,743,457 Receivables financing 556,757,309 1,200,967,879 Prepayments 2,830,897,875 3,021,374,825 Premium receivable Reinsurance premium receivable Reinsurance contract provision receivable Other receivables 535,959,930 451,487,988 Including: Interest receivable Dividends receivable 14,354,814 Financial assets purchased under agreements to resell Inventories 45,009,092,239 42,114,515,185 Contract assets 14,753,750,294 14,707,279,213 Held-for-sale assets Non-current assets due within one year Other current assets 1,668,731,542 1,484,547,921 Total current assets 161,336,121,047 161,697,049,740 Non-current assets: Loans and advances Debt investment Other debt investment Long-term receivables Long-term equity investments 3,028,188,547 2,863,864,803 Other equity instrument investments 3,585,478,443 4,365,994,240 Other non-current financial assets 3,564,907 245,105,769 Investment properties 451,733,626 458,709,031 Fixed assets 27,352,168,895 27,118,235,307 Construction-in-progress 3,535,227,270 3,588,269,809 Bearer biological assets Oil and gas assets Right-of-use assets 442,317,573 417,189,078 Intangible assets 3,907,885,816 3,920,260,376 Development expenditure Goodwill 93,193,010 93,193,010 Long-term deferred expenses 86,640,789 97,241,225 Deferred income tax assets 1,211,194,209 1,265,836,914 Other non-current assets 656,019,780 717,212,813 Total non-current assets 44,353,612,865 45,151,112,375 Total assets 205,689,733,912 206,848,162,115
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5 INTERIM CONSOLIDATED BALANCE SHEET (Continued) AS AT 30 JUNE 2026 Unit: RMB Items Note 30 June 2026 (Unaudited) 31 December 2025 (Restated) Current liabilities: Short-term borrowings 16,780,581,703 11,845,088,409 Borrowings from the central bank Placements from banks and other financial institutions Financial liabilities held for trading Derivative financial liabilities Notes payable 19 4,329,013,991 12,375,345,621 Accounts payable 20 57,653,717,572 51,095,327,265 Advances 56,714,386 50,923,819 Contract liabilities 9,854,376,019 10,878,839,027 Financial assets sold under agreements to repurchase Deposits and placements from other financial institutions Securities brokering Securities underwriting Employee compensation payable 1,746,081,044 3,244,435,164 Tax payable 640,130,801 967,099,220 Other payable 1,985,387,568 2,269,436,540 Including: Interest payable Dividends payable 133,900,476 70,856,910 Fees and commissions payable Reinsurance amounts payable Held-for-sale liabilities Non-current liabilities due within one year 2,543,638,103 3,972,936,277 Other current liabilities 1,391,737,457 1,246,906,482 Total current liabilities 96,981,378,644 97,946,337,824 Non-current liabilities: Insurance contract reserves Long-term borrowings 4,376,143,315 4,472,446,797 Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities 353,214,979 352,400,575 Long-term payable -628,845,553 -471,096,692 Long-term employee compensation payable 1,441,297,648 1,484,251,834 Estimated liabilities 304,851,248 319,240,694 Deferred income 1,180,719,452 1,187,812,127 Deferred income tax liabilities 785,472,466 974,773,748 Other non-current liabilities 1,095,504,919 956,688,208 Total non-current liabilities 8,908,358,474 9,276,517,291
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6 Total liabilities 105,889,737,118 107,222,855,115 Shareholders’ equity: Share capital 7,972,854,242 7,972,854,242 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserves 13,980,033,321 14,027,406,251 Less: treasury shares Other comprehensive income 130,917,464 476,147,477 Special reserves 595,620,529 553,909,504 Surplus reserves 628,222,730 628,222,730 General risk reserve Undistributed profits 11,843,924,073 11,384,814,739 Total shareholders’ equity attributable to parent company 35,151,572,359 35,043,354,943 Minority equity 64,648,424,435 64,581,952,057 Total shareholders’ equity 99,799,996,794 99,625,307,000 Total liabilities and shareholders’ equity 205,689,733,912 206,848,162,115
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- 7 - Notes: 1. Corporate information AviChina Industry & Technology Company Limited (hereinafter referred to as the Company, together with its subsidiaries, the Group) was restructured by a subsidiary of the former China Aviation Industry Corporation II (hereinafter referred to as AVIC II), and was incorporated in Beijing in the People’s Republic of China (hereinafter referred to as the PRC) on 30 April 2003 as a joint stock company with limited liability. The Company has obtained the business license with the unified social credit code of 91110000710931141J issued by Beijing Municipal Administration for Market Regulation. The registered capital of the Company is RMB7,972,854,242. The legal representative is Yan Lingxi. The address of its registered office is 2nd Floor, Building 27, No. 26 Xihuan South Street, Economic Technological Development Area, Beijing. It was listed on The Stock Exchange of Hong Kong Limited (hereinafter referred to as the Hong Kong Stock Exchange) on 30 October 2003. The Group is principally involved in the research, development, manufacture and sale of aviation products and the delivery of aviation engineering services such as planning, design, consultation, construction and operation. The controlling shareholder of the Company is Aviation Industry Corporation of China, Ltd. (hereafter as AVIC), and the ultimate controller is AVIC. The Company has a Board of Directors, which manages and controls the Company’s major decisions and daily operation. These financial statements were approved for issue by the Board on 26 August 2026. The data of the following financial statements for the six months ended 30 June 2025 is restated and unaudited, and that for the six months ended 30 June 2026 is unaudited. The notes to the financial statements are presented in RMB, except as otherwise noted. 2. Basis of preparation of financial statements The financial statements have been prepared on the going concern basis and based on the transactions and events actually occurred in accordance with the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance of the PRC and relevant requirements, as well as based on the Group’s accounting policies and accounting estimates. During the preparation of the financial statements, the Group has fully evaluated its ability to continue operating in the next 12 months from the balance sheet date. The Group has a record of profitable operation recently and adequate financial resource to support its operation, and considers it is reasonable to prepare the financial statements on a going concern basis. The accounting policies used in the preparation of the Group’s interim consolidated financial statements for the period ended 30 June 2026 are consistent with the accounting policies followed in the preparation of the Group’s consolidated financial statements for the year ended 31 December 2025, which complies with the requirements of Accounting Standards for Business Enterprises and give a true and full view of the financial position, operating results and cash flows of the Company and the Group.
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- 8 - On June 2026, AVIC Airborne Systems Co., Ltd. ( 中 航 機 載 系 統 股 份 有 限 公 司 ), a subsidiary of the Company, acquired equity interests through cash contributions to control AIC Yuhua (Shenzhen) Airborne Systems Industry Investment Partnership (Limited Partnership) (航投譽華(深圳)機載系統產業投資合夥企業(有限合夥)), which was under the control of the Company’s controlling shareholder, AVIC, and was included in the scope of consolidation. The Group has restated the relevant financial statements for the six months ended 30 June 2025. The restatement of the consolidated financial statements for the previous period due to the business combination involving entities under common control have had the following impacts on the Group’s financial statements submitted of last period: Items Previously presented January to June 2025 Business combinations involving entities under common control Restated January to June 2025 Operating revenue 37,465,251,870 37,465,251,870 Total operating cost 34,711,799,167 2,986,830 34,714,785,997 Including: Operating cost 29,889,477,932 29,889,477,932 Selling expenses 339,100,579 339,100,579 Administrative expenses 2,064,480,752 3,029,502 2,067,510,254 Research and development expenses 2,169,891,803 2,169,891,803 Finance costs -55,466,154 -42,672 -55,508,826 Operating profit 3,108,402,127 -2,986,830 3,105,415,297 Net profit 2,806,659,099 -2,986,830 2,803,672,269 Net profit attributable to the owners of the parent company 1,030,426,079 -208,903 1,030,217,176 Items Previously presented 31 December 2025 Business combinations involving entities under common control Restated 31 December 2025 Total current assets 161,692,928,980 4,120,760 161,697,049,740 Total non-current assets 44,909,571,513 241,540,862 45,151,112,375 Total assets 206,602,500,493 245,661,622 206,848,162,115 Total current liabilities 97,946,330,854 6,970 97,946,337,824 Total non-current liabilities 9,276,517,291 9,276,517,291 Total liabilities 107,222,848,145 6,970 107,222,855,115 Total shareholders’ equity attributable to parent company 35,014,101,749 29,253,194 35,043,354,943 Minority equity 64,365,550,599 216,401,458 64,581,952,057 Total shareholders’ equity 99,379,652,348 245,654,652 99,625,307,000 Total liabilities and shareholders’ equity 206,602,500,493 245,661,622 206,848,162,115
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- 9 - 3. Operating revenue and operating cost Item January to June 2026 January to June 2025 Revenue Cost Revenue Cost Main businesses 37,258,845,900 29,857,326,827 36,826,838,364 29,376,744,360 Other businesses 552,716,314 425,788,944 638,413,506 512,733,572 Total 37,811,562,214 30,283,115,771 37,465,251,870 29,889,477,932 Note: The revenue recognized by the Group from January to June 2026 included an amount of RMB4,481,087,778 that had been included in contract liabilities at the beginning of the year. 4. Segment information The chief operating decision-maker has been identified as the executive Directors who review the Group’s internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. The executive Directors classify the business into three reportable segments: 1. Aviation entire aircraft - manufacturing, assembly, sales and servicing of helicopters, trainers and other aircraft; 2. Aviation ancillary system and related business - manufacturing and sale of aviation ancillary system and related business; and 3. Aviation engineering services - delivery of aviation engineering services such as planning, design, consultation, construction and operation. The Group is domiciled in the PRC from where most of its revenue from external customers is derived and in where main assets are located. January to June 2026/ 30 June 2026 Aviation entire aircraft Aviation ancillary system and related business Aviation engineering services Offset Total Revenue from external transactions 8,840,296,582 24,060,658,373 4,910,607,259 37,811,562,214 Revenue from inter-segment transactions 1,902,602,023 177,647,620 -2,080,249,643 Investment income from associates and joint ventures -2,482,929 123,539,768 3,800,889 124,857,728 Asset impairment losses and credit impairment losses 68,133,850 -179,671,068 744,489 -239,727 -111,032,456 Depreciation and amortization costs 370,748,068 1,283,983,930 30,104,796 1,684,836,794 Profit before tax 225,922,558 2,447,037,224 173,428,971 -234,285,790 2,612,102,963 Income tax expense 1,482,082 320,262,754 6,856,247 -7,171,483 321,429,600 Net profit 224,440,476 2,126,774,470 166,572,724 -227,114,307 2,290,673,363 Total assets 62,580,988,877 151,263,165,179 11,874,865,349 -20,029,285,493 205,689,733,912 Total liabilities 40,371,863,274 62,197,548,638 8,571,242,397 -5,250,917,191 105,889,737,118 Other non-cash expenses other than depreciation and amortization costs and asset impairment losses 16,576,139 12,504,582 29,080,721 Long-term equity investment in associates and joint ventures 436,809,728 1,725,173,914 511,465,020 2,673,448,662 Increase in other non-current assets other than long-term equity investments -267,255,408 -760,598,139 -19,231,873 85,262,166 -961,823,254
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- 10 - 5. Selling expenses Item January to June 2026 January to June 2025 Employee compensation 239,967,574 172,814,985 Business travel costs 62,268,580 58,466,608 Sales service charges 30,622,969 28,641,015 Advertising and publicity expenses and exhibition fees 28,808,164 33,792,498 Depreciation and amortization costs 6,899,858 5,435,537 Office fees 5,118,887 5,507,066 Transportation costs 1,329,883 3,731,158 Packing charges 1,302,204 2,056,710 Others 37,633,731 28,655,002 Total 413,951,850 339,100,579 6. Administrative expenses Item January to June 2026 January to June 2025 Employee compensation 1,335,784,125 1,252,186,093 Depreciation and amortization costs 319,693,798 296,382,483 Labor protection costs 58,398,334 73,772,750 Office fees 49,850,839 45,067,307 Maintenance and repair costs 48,257,702 54,220,266 Business travel costs 47,147,549 39,870,052 Property fees and afforestation fees 46,147,979 46,830,122 Power and fuel expenses 33,377,951 34,069,492 January to June 2025/ 30 June 2025 Aviation entire aircraft Aviation ancillary system and related business Aviation engineering services Offset Total Revenue from external transactions 10,339,465,510 22,582,925,462 4,542,860,898 37,465,251,870 Revenue from inter-segment transactions 2,313,679,841 237,325,533 -2,551,005,374 Investment income from associates and joint ventures -4,791,362 123,207,474 16,068,571 134,484,683 Asset impairment losses and credit impairment losses -31,396,797 -359,460,462 -8,458,164 -586,560 -399,901,983 Depreciation and amortization costs 380,161,118 1,164,160,725 28,329,559 1,572,651,402 Profit before tax 438,629,437 2,606,053,767 187,974,971 -136,611,682 3,096,046,493 Income tax expense 31,602,320 245,115,247 9,909,022 5,747,635 292,374,224 Net profit 407,027,117 2,360,938,520 178,065,949 -142,359,317 2,803,672,269 Total assets 60,018,331,726 149,065,174,990 11,329,062,395 -20,522,466,390 199,890,102,721 Total liabilities 38,275,130,229 61,135,780,584 8,161,885,036 -5,783,485,349 101,789,310,500 Other non-cash expenses other than depreciation and amortization costs and asset impairment losses 34,031,544 104,558,626 138,590,170 Long-term equity investment in associates and joint ventures 435,569,834 1,593,052,580 506,806,050 2,535,428,464 Increase in other non-current assets other than long-term equity investments -214,317,465 703,421,179 -4,010,584 121,757,675 606,850,805
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- 11 - Item January to June 2026 January to June 2025 Professional service fees 22,070,419 27,129,063 Business entertainment expenses 18,167,146 32,966,997 Rental 15,813,543 15,556,772 Material amortization and consumption of low-value consumables 9,704,958 4,726,232 Insurance premium 9,014,799 6,824,649 Publicity expenses 6,813,155 6,484,392 Conference expenses 4,034,882 6,250,911 Transportation costs 3,202,000 5,424,954 Audit fees 3,012,725 2,468,419 Amortization of equity incentives in the current period 70,577,690 Others 94,852,584 46,701,610 Total 2,125,344,488 2,067,510,254 7. Research and development expenses Item January to June 2026 January to June 2025 Employee compensation 1,091,850,099 859,178,231 Materials expenses 477,868,763 594,603,039 Experimental and special fees 291,450,744 302,118,533 Outsourcing fee 201,713,929 108,480,786 Depreciation and amortization costs 78,243,191 69,794,062 Transportation and business travel costs 54,639,609 60,671,892 Administrative expense 46,120,918 50,030,391 Power and fuel expenses 18,154,235 18,792,596 Design fees 14,111,145 17,039,486 Amortization of equity incentives in the current period 33,980,936 Others 48,318,959 55,201,851 Total 2,322,471,592 2,169,891,803 8. Finance costs Item January to June 2026 January to June 2025 Interest expenses 225,707,059 182,201,581 Less: Interest incomes 110,573,366 218,076,531 Add: Exchange gains or losses 72,055,822 -28,246,495 Add: Other expenditures 12,313,844 8,612,619 Total 199,503,359 -55,508,826
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- 12 - 9. Other income Sources of other income January to June 2026 January to June 2025 Value-added tax credit 114,988,136 367,489,440 Financial subsidies 28,600,000 21,460,000 Special funds for the development 12,607,165 9,940,554 Production line subsidy 9,024,684 4,575,107 Instant value-added tax refund 7,861,684 15,647,273 Refund of individual tax handling fee 7,561,299 8,270,239 Government relocation compensation 7,536,383 7,890,864 Business assist and employment stabilization subsidies 5,396,146 4,038,021 Subsidies for a reconstruction project 5,213,681 Project subsidies 4,045,369 5,108,605 Maintenance costs 3,975,000 11,710,000 Government grants from Industry and Information Technology Bureau 3,579,167 10,000,000 National major science and technology project 3,144,828 Science and technology innovation awards 1,453,000 26,983,600 Special funds for specialized, refined, differentiated, and innovative enterprises 1,356,700 3,400,000 High-tech allowance 1,128,206 316,000 Subsidies for other projects 40,417,920 34,994,772 Total 257,889,368 531,824,475 10. Investment income Item January to June 2026 January to June 2025 Long-term equity investment incomes calculated at equity method 124,857,728 134,484,683 Investment income from disposal of long-term equity investments 643,613 Investment income from holding financial assets held for trading Investment income from disposal of financial assets held for trading and other financial assets 27,551,219 26,327,306 Dividend income from holding other equity instrument investments 29,714,018 19,306,501 Gain on debt restructuring 23,624,314 25,775,814 Gain on derecognition of financial assets measured at amortized cost -2,325,993 -395,833 Others 14,138,867 13,669,409 Total 218,203,766 219,167,880 Note: Gain on debt restructuring mainly represents the cash discounts obtained by the Company’s certain subsidiaries on settlement of the supply payment.
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- 13 - 11. Income from changes in fair value Source of income from changes in fair value January to June 2026 January to June 2025 Financial assets held for trading 1,957,231 2,896,081 Including: Gain from changes in fair value of derivative financial instruments Financial liabilities held for trading Total 1,957,231 2,896,081 12. Credit impairment loss Item January to June 2026 January to June 2025 Loss on bad debts of accounts receivable -132,771,391 -360,401,223 Loss on bad debts of notes receivable 91,641,620 75,506,904 Loss on bad debts of other receivables -2,132,391 -10,243,492 Other loss on bad debts 3,011,373 -1,907,826 Total -40,250,789 -297,045,637 13. Assets impairment loss Item January to June 2026 January to June 2025 Inventory depreciation loss and contract performance cost impairment losses -85,193,630 -92,443,780 Contract asset impairment losses 14,411,963 -10,412,566 Fixed assets impairment losses Total -70,781,667 -102,856,346 14. Income tax expenses Item January to June 2026 January to June 2025 Current income tax expenses 259,502,789 369,193,249 Deferred income tax expenses 61,926,811 -76,819,025 Total 321,429,600 292,374,224 15. Dividends Item January to June 2026 January to June 2025 Dividends recognized for distribution of 2025 final dividend: RMB0.0665 per share (2024 final dividend: RMB0.081 per share) 530,194,807 645,801,194 The Board of the Company did not recommend interim dividend distribution for the six months ended 30 June 2026 (six months ended 30 June 2025: Nil). 16. Earnings per share In accordance with the Rules Governing the Preparation and Disclosure of Information by Companies Offering Securities to the Public No. 9 – Calculation and Disclosure of Return on Net Assets and Earnings per
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- 14 - Share (Revised 2010) of China Securities Regulatory Commission, the basic earnings per share and diluted earnings per share of the Group from January to June 2026 are as follows: Profit for the reporting period Earnings per share (RMB per share) Basic earnings Per share Diluted earnings per share Net profit attributable to shareholders of the parent company 0.103 0.103 Net profit attributable to shareholders of the parent company after non-recurring profit or loss 0.094 0.094 17. Notes receivable (1)Classified presentation of notes receivable Item 30 June 2026 31 December 2025 Banker’s acceptance bill 1,564,230,904 3,188,696,287 Commercial acceptance bill 2,434,930,279 7,375,764,874 Total 3,999,161,183 10,564,461,161 (2)Notes receivable pledged Item Amount pledged at 30 June 2026 Banker’s acceptance bill 188,069,119 Commercial acceptance bill 108,702,408 Total 296,771,527 (3)Classified presentation by bad debt accrual method Category 30 June 2026 Book balance Bad debt provision Book valueAmount Proportion (%) Amount Provision proportion (%) Bad debt provision made individually Bad debt provision made as per portfolio 4,083,242,548 100.00 84,081,365 2.06 3,999,161,183 Total 4,083,242,548 —— 84,081,365 —— 3,999,161,183 Category 31 December 2025 Book balance Bad debt provision Book valueAmount Proportion (%) Amount Provision proportion (%) Bad debt provision made individually Bad debt provision made as per portfolio 10,739,847,834 100.00 175,386,673 1.63 10,564,461,161 Total 10,739,847,834 —— 175,386,673 —— 10,564,461,161
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- 15 - 1) Bad debt provision of notes receivable made as per portfolio Name 30 June 2026 Book balance Bad debt provision Provision proportion (%) Banker’s acceptance bill 1,564,374,833 143,929 0.01 Commercial acceptance bill 2,518,867,715 83,937,436 3.33 Total 4,083,242,548 84,081,365 —— Name 31 December 2025 Book balance Bad debt provision Provision proportion (%) Banker’s acceptance bill 3,189,150,622 454,335 0.01 Commercial acceptance bill 7,550,697,212 174,932,338 2.32 Total 10,739,847,834 175,386,673 —— (4)Provisions for bad debt accrued, recovered and reversed for notes receivable in the current period Category 31 December 2025 Changes in the current period 30 June 2026Accrued Recovered or reversed Written back or written off Increase due to other reasons Bad debt provision of notes receivable made as per portfolio 175,386,673 -91,641,620 336,312 84,081,365 Total 175,386,673 -91,641,620 336,312 84,081,365 Note: Other changes represent an increase of RMB336,312 arising from the acquisition of Chengdu Chuanmei New Technology Co., Ltd.(成都川美新技術股份有限公司) by the Company’s subsidiary, Jonhon Optronic Technology Co., Ltd (中航光電科技股份有限公司), during the current period. (5)The Group had no notes receivable that were actually written-off in the current period. 18. Accounts receivable Item 30 June 2026 31 December 2025 Accounts receivable 61,372,127,804 57,904,514,580 Less: Impairment provision 2,704,214,184 2,537,771,123 Net accounts receivable 58,667,913,620 55,366,743,457
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- 16 - (1)Classified presentation of accounts receivable by bad debt accrual method Category of portfolio 30 June 2026 Original value Proportion of bad debt provision (%) Bad debt provision Book value Accounts receivable with bad debt provision made individually 2,339,816,366 12.07 282,496,304 2,057,320,062 Accounts receivable with bad debt provision made as per portfolio 59,032,311,438 4.10 2,421,717,880 56,610,593,558 Including: accounts receivable with bad debt provision made on the group of credit risk characteristics 59,032,311,438 4.10 2,421,717,880 56,610,593,558 Total 61,372,127,804 —— 2,704,214,184 58,667,913,620 Category of portfolio 31 December 2025 Original value Proportion of bad debt provision (%) Bad debt provision Book value Accounts receivable with bad debt provision made individually 2,299,305,085 11.55 265,610,916 2,033,694,169 Accounts receivable with bad debt provision made as per portfolio 55,605,209,495 4.09 2,272,160,207 53,333,049,288 Including: accounts receivable with bad debt provision made on the group of credit risk characteristics 55,605,209,495 4.09 2,272,160,207 53,333,049,288 Total 57,904,514,580 —— 2,537,771,123 55,366,743,457 1） Top five accounts receivable with bad debt provision made individually Name 30 June 2026 Book balance Bad debt provision Provision proportion (%) Reasons for provision Company 1 2,073,083,558 16,372,999 0.79 Provided based on expected loss rate Company 2 95,871,744 95,871,744 100.00 All of it is expected to be unable to recover Company 3 22,553,427 22,553,427 100.00 All of it is expected to be unable to recover Company 4 16,812,810 16,812,810 100.00 All of it is expected to be unable to recover Company 5 16,636,397 16,636,397 100.00 All of it is expected to be unable to recover Total 2,224,957,936 168,247,377 - --
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- 17 - 2） Bad debt provision of accounts receivable made by portfolio Aging 30 June 2026 Book balance Bad debt provision Provision proportion (%) Within 1 year (including 1 year) 44,955,280,737 390,083,816 0.87 1-2 years 10,840,218,680 708,414,964 6.54 2-3 years 2,052,879,325 554,652,327 27.02 Over 3 years 1,183,932,696 768,566,773 64.92 Total 59,032,311,438 2,421,717,880 —— Aging 31 December 2025 Book balance Bad debt provision Provision proportion (%) Within 1 year (including 1 year) 41,804,869,460 342,688,414 0.82 1-2 years 10,552,012,829 644,389,146 6.11 2-3 years 2,200,414,931 614,080,247 27.91 Over 3 years 1,047,912,275 671,002,400 64.03 Total 55,605,209,495 2,272,160,207 —— (2)Based on the date of transactions, ageing of accounts receivable is as follows Aging 30 June 2026 Accounts receivable Bad debt provision Proportion of bad debt provision (%) Within 1 year (including 1 year) 47,127,480,407 504,963,424 1.07 1-2 years 10,876,745,856 744,942,140 6.85 2-3 years 2,071,820,320 573,593,322 27.69 3-4 years 453,288,508 254,921,940 56.24 4-5 years 244,421,162 178,816,438 73.16 Over 5 years 598,371,551 446,976,920 74.70 Total 61,372,127,804 2,704,214,184 —— Aging 31 December 2025 Accounts receivable Bad debt provision Proportion of bad debt provision (%) Within 1 year (including 1 year) 43,960,833,468 465,567,477 1.06 1-2 years 10,564,956,341 656,989,049 6.22 2-3 years 2,215,461,638 628,861,338 28.39 3-4 years 382,801,508 208,707,883 54.52 4-5 years 229,288,044 164,389,878 71.70 Over 5 years 551,173,581 413,255,498 74.98 Total 57,904,514,580 2,537,771,123 ——
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- 18 - (3)Provisions for bad debt accrued, recovered and reversed for accounts receivable in the current period Category 31 December 2025 Changes in the current period 30 June 2026 Accrued Recovered or reversed Written back or written off Increase due to other reasons Bad debt provision for accounts receivable 2,537,771,123 132,775,565 4,174 33,671,670 2,704,214,184 Total 2,537,771,123 132,775,565 4,174 33,671,670 2,704,214,184 Note: Other changes mainly represent an increase of RMB33,519,555 arising from the acquisition of Chengdu Chuanmei New Technology Co., Ltd.(成都川美新技術股份有限公司) by the Company’s subsidiary, Jonhon Optronic Technology Co., Ltd (中航光電科技股份有限公司), during the current period. (4)The Group had no accounts receivable that were actually written-off in the current period. 19. Notes payable Category 30 June 2026 31 December 2025 Banker’s acceptance bill 2,740,792,131 7,633,854,595 Commercial acceptance bill 1,588,221,860 4,741,491,026 Total 4,329,013,991 12,375,345,621 20. Accounts payable （1） Presentation of accounts payable Item 30 June 2026 31 December 2025 Materials costs payable 48,229,132,113 43,211,252,791 Construction costs payable 5,115,370,393 4,207,696,988 Equipment costs payable 1,901,933,746 1,387,529,498 Others 2,407,281,320 2,288,847,988 Total 57,653,717,572 51,095,327,265 （2） The ageing of accounts payable based on their transaction dates is analyzed as below Aging 30 June 2026 31 December 2025 Within 1 year (including 1 year) 43,315,950,302 40,215,657,115 1-2 years 10,550,520,189 7,562,051,396 2-3 years 2,334,923,804 1,966,832,982 Over 3 years 1,452,323,277 1,350,785,772 Total 57,653,717,572 51,095,327,265
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- 19 - MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW In the first half of 2026, the international environment remained turbulent. Facing this challenging landscape, China's economy maintained overall stability while progressing toward new and high- quality development. Facing various risks and challenges, Aviation Industry Corporation of China, Ltd.* (中國 航空工業集團有限公司)(“AVIC”) responded proactively, ensuring stable and orderly economic operations, steady and rapid progress in scientific research and production, continuous optimization of its industrial structure, and steadily enhanced development momentum. In the first half of 2026, the Group continued to promote the deep integration of technological innovation with industrial innovation, remained firmly committed to facilitating the commercialization of scientific and technological achievements, advanced the development of the low-altitude economy, and ensured the steady progress of business operations. The Group continued to expand its application scenarios and strengthened its core competitiveness in helicopter business. The AC332 helicopter completed certification review by the Civil Aviation Administration of China, with the airworthiness certification process entering its final sprint phase. The AC312E helicopter achieved significant improvements in its takeoff and landing capabilities on high-altitude plateaus. The Z-8 and AC311A helicopters collaboratively executed integrated aerial fire fighting operations and event support missions, continuing to advance the systematic development of the aviation emergency rescue. The AC311 helicopter participated in numerous air security patrol missions as well as low-altitude sightseeing tourism projects, promoting the development of urban management systems and the normalization of low-altitude cultural and tourism flights. The search-and-rescue configuration of the AC352 civil helicopter entered the adjustment test flight phase as planned. The Z-8 helicopter took part in flood control and flood fighting disaster relief drills for catastrophic floods, fully demonstrating its rapid response and integrated delivery capabilities in dealing with major and catastrophic disasters. Multiple heavy-lift electric vertical takeoff and landing (eVTOL) aircraft AR-E800 have completed final assembly and delivery, entering the test and flight trial phase with airworthiness certification process advancing steadily, with application being explored in areas including emergency rescue, general aviation operations, and smart logistics. The trainer business continued to undergo optimization and upgrades. Jiangxi Hongdu Aviation Industry Co., Ltd.* (江西洪都航空工業股份有限公司) systematically advanced the optimization and upgrading of various scientific research models, effectively ensuring the safety assessments approval; accelerated the establishment of a comprehensive and effective scientific and technological innovation system,expediting the commercialization of scientific and technological achievements,comprehensively enhancing the level of scientific research and design; focused on cultivating new-quality productive forces, accelerated technological transformation, equipment renewal, process improvement, and digital empowerment in the basic manufacturing sector, driving effective improvements in basic manufacturing and production delivery capabilities. The aviation ancillary system and related business remained committed to the commercialization of scientific and technological achievements. Jonhon Optronic Technology Co., Ltd* (中航光電科技 股 份有 限 公 司) (“JONHON”) consistently consolidated its position as the preferred supplier in the defense sector, fully participated in emerging fields such as unmanned systems, deep-water operations, and satellite-launch vehicles, achieving breakthroughs in key technologies such as deep-sea high- reliability connector assemblies, steadily reinforcing its leading advantages in the high-end interconnect field; continuously strengthened its technological leadership in the new energy vehicle sector, consolidated its core technological capabilities in intelligent connectivity, accelerated its transformation
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- 20 - from high-voltage interconnects to full-vehicle interconnects, and empowered the rapid development of the new energy vehicle industry through technological innovation; continuously optimized its business structure in the data center sector, seized incremental market opportunities, and achieved rapid year-on- year growth in such business scale. Qing’an Group Co., Ltd.* (慶安集團有限公司) and AVIC Taiyuan Aviation Instrument Co., Ltd.* ( 太 原 航 空 儀 錶 有 限 公 司 ) supported the AS700D manned airship, which has entered the mass production stage; the large-scale warm isostatic press developed by Sichuan Aviation Industry Chuanxi Machinery Co., Ltd.* (四川航空工業川西機器有限責任公司) successfully passed acceptance and was put into operation, empowering the R&D and manufacturing of large-sized, high-performance aerospace materials and new energy solid-state batteries; the atmospheric attitude and heading reference system developed by AVIC Taiyuan Aviation Instrument Co., Ltd. officially entered the civil aircraft airworthiness certification process; the propeller independently developed by Huiyang Aviation Propeller Limited* (惠陽航空螺旋槳有限責任公司) was successfully installed on the Changying-8 large transport and delivery unmanned aerial vehicle (UAV) for its maiden flight, effectively enhancing its industry influence in the UAV sector. Steady progress was made in the aviation engineering services business. China Aviation Planning and Design Institute Co., Ltd.* (中國航空規劃設計研究總院有限公司) focused on the civil aviation market, successfully passed the dynamic verification of the Class A comprehensive engineering design qualification by the Civil Aviation Administration of China, actively built smart airports and green airports, continuously focusing on frontier fields such as low-altitude economy infrastructure construction, and participating in low-altitude economy planning for multiple local governments; won the bid for the Wenchang Rocket Base project of the China Academy of Launch Vehicle Technology, effectively enhancing the overall performance of the project in resisting extreme weather conditions through high-precision design standards; designed, fully integrated and delivered the Ameco Beijing wheel intelligent maintenance production line, which completed construction and entered pre- production, supporting maintenance of a range of mainstream civil aviation models including the Airbus A320/A321, Boeing B737NG/MAX, and domestically developed C909/C919, steadily advancing the construction of digital and intelligent civil aviation maintenance projects; won bids for two new civil aviation innovation center construction projects, deepening its involvement in the development of high-end industrial parks for intelligent manufacturing of civil aviation electronics; participated in the establishment of the Anhui Workstation of the Key Scientific Research Base for Seismic Protection of Cultural Relics under the National Cultural Heritage Administration which was officially inaugurated, continuing to leverage its scientific expertise and leadership in setting international standards in the field of cultural relic seismic protection. The modernization of the governance system and governance capacity progressed steadily. The Group continued to advance sustainable development, deeply cultivated green intelligent manufacturing, and systematically promoted the green and low-carbon transformation and development. A project participated in by China Aviation Planning and Design Institute Co., Ltd. passed the zero- carbon building technology review, contributing to the green transformation of aviation R&D and manufacturing; firmly upheld the bottom line of risk prevention and compliance; actively assumed social responsibilities, proactively expanded diverse application scenarios such as emergency rescue, tourism, and logistics transportation, promoting regional economic development, participated in multiple expansion projects, and contributed to building a community with a shared future for mankind. BUSINESS OUTLOOK The year 2026 marks a pivotal year as the 15th Five-Year Plan for National Economic and Social Development (the "15th Five-Year Plan") gets underway. The aerospace sector and the low-altitude economy have been explicitly designated as national emerging pillar industries and are expected to support China's future economic development. The industrial orientation of national policies will drive the low-altitude economy in its transition from technical validation to large-scale operations and
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- 21 - systematic development, while the aerospace industry, leveraging its long-term technological accumulation, will steadily achieve leapfrog development. China’s domestically developed large passenger aircraft have officially commenced operations on international commercial routes and are steadily advancing toward scaled delivery and commercial operation. The trend toward integrated development between the aerospace and the low-altitude economy sectors is becoming increasingly evident. As a leader in both the aviation industry and the low-altitude economy, the Group will continue to benefit from this trend and further unlock its growth potential. In the second half of 2026, the Group will precisely focus on its development strategy, adhere to the general principle of pursuing progress while ensuring stability, and drive the Company's high-quality development: 1. The Group will remain steadfast in the goal of building a world-class helicopter enterprise. The Group will continuously enhance core functions, fully leverage the role of industrial cultivation and innovation-driven development to support the optimization and upgrading of existing products and the development of new-domain and new-quality products, and continue to strengthen model R&D and technological innovation capabilities to ensure the orderly progress of airworthiness certification and test flight verification; 2. The Group will continuously expand the application scenarios for trainers and intensify market development efforts. The trainer business will be expanded from the sale of individual aircraft systems to integrated comprehensive training systems, achieving full value-chain and full-life cycle management; 3. The Group will accelerate the digital and intelligent transformation of aviation ancillary system and related businesses. The Group will move faster in adjusting structures and promoting transformation, increase R&D investment in connector products and airborne system technologies, and empower the innovative development of the aviation industry through digital and intelligent transformation via deep integration of industry, academia, research and application; 4. The Group will continuously expand into new market areas. By seizing the development opportunities presented by domestically developed commercial aircraft, the Group will continuously optimize and expand the international business layout, coordinate the allocation of resources in overseas markets, and actively participate in competition in the global aviation market; 5. The Group will continue to implement the strategic deployment of the low-altitude economy and coordinate high-quality resources across the industrial chain. By actively promoting the industrialization of aviation scientific and technological achievements and intensifying efforts to tackle key core technologies in flight control for intelligent electric aircraft, the Group will continuously expand diversified application scenarios for products, promote the establishment of the "Future Aircraft Joint Innovation Center", and actively explore consultation on demonstration applications of low- altitude aircraft; 6. The Group will systematically advance the development of the corporate governance system. The Group will fortify the bottom line of risk prevention and control, continuously strengthen compliance and risk management, and coordinate high-quality development with a high standard of safety; systematically promote the green and low-carbon transformation and development, injecting new green momentum into the high-quality development of the industry; and 7. The Group will strengthen brand building. The Group will focus on market value management; reinforce corporate brand synergy, continuing to build itself as a world-class aviation high-tech industry group with excellent products, prestigious brands, leading innovation and modern governance.
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- 22 - FINANCIAL REVIEW The business segments of the Group are divided into aviation entire aircraft segment, aviation ancillary system and related business segment, and aviation engineering services segment. Due to the adjustment of the consolidation scope on June 2026, the financial data of the Group in the corresponding period of the preceding year was restated pursuant to the relevant regulations and requirements. Unless otherwise stated, the financial data in the corresponding period of the preceding year referred to in this announcement has been restated. Revenue For the six months ended 30 June 2026, the Group recorded a revenue of RMB37,812 million, representing an increase of RMB347 million or 0.93% as compared with that of RMB37,465 million in the corresponding period of last year. Segment Information For the six months ended 30 June 2026, the revenue of the aviation entire aircraft segment of the Group amounted to RMB8,840 million, representing a decrease of 14.50% as compared with that in the corresponding period of last year, which was mainly attributable to the decrease in sales volume of helicopter products during the reporting period. The revenue of the aviation entire aircraft segment accounted for 23.38% of the total revenue of the Group. The revenue of the aviation ancillary system and related business segment of the Group amounted to RMB24,061 million, representing an increase of 6.54% as compared with that in the corresponding period of last year. The revenue of the aviation ancillary system and related business segment accounted for 63.63% of the total revenue of the Group. The revenue of the aviation engineering services segment of the Group amounted to RMB4,911 million, representing an increase of 8.10% as compared with that in the corresponding period of last year, which was mainly attributable to the year-on-year increase of construction revenue during the reporting period. The revenue of the aviation engineering services segment accounted for 12.99% of the total revenue of the Group. For the six months ended 30 June 2026, the segment profit of the aviation entire aircraft segment of the Group amounted to RMB226 million, representing a decrease of RMB213 million or 48.52% as compared with that of RMB439 million in the corresponding period of last year, which was mainly attributable to the decrease in benefits from the additional value-added tax credit policy during the reporting period. The segment profit of the aviation ancillary system and related business segment of the Group amounted to RMB2,447 million, representing a decrease of RMB159 million or 6.10% as compared with that of RMB2,606 million in the corresponding period of last year, which was mainly attributable to the year-on-year decrease of operating result of JONHON, a subsidiary of the Company, during the reporting period. The segment profit of the aviation engineering services segment of the Group amounted to RMB173 million, representing a decrease of RMB15 million or 7.98% as compared with that of RMB188 million in the corresponding period of last year,which was mainly attributable to the low gross profit margin of certain business. Gross Profit For the six months ended 30 June 2026, the Group recorded a gross profit of RMB7,529 million, representing a decrease of RMB47 million or 0.62% as compared with that of RMB7,576 million in the corresponding period of last year. The comprehensive gross profit margin was 19.91% during the
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- 23 - reporting period, representing a decrease of 0.31 percentage points as compared with that of 20.22% in the corresponding period of last year. Selling Expenses For the six months ended 30 June 2026, the selling expenses of the Group amounted to RMB414 million, representing an increase of RMB75 million or 22.12% as compared with that of RMB339 million in the corresponding period of last year, which was mainly attributable to the year-on-year increase in the employee compensation for sales personnel of certain subsidiaries to expand the high- end civilian product market. The selling expenses accounted for 1.09% of the revenue during the reporting period, representing an increase of 0.19 percentage point as compared with that of 0.90% in the corresponding period of last year. Administrative Expenses For the six months ended 30 June 2026, the administrative expenses of the Group amounted to RMB2,125 million, representing an increase of RMB57 million or 2.76% as compared with that of RMB2,068 million in the corresponding period of last year. The administrative expenses accounted for 5.62% of the revenue during the reporting period, representing an increase of 0.10 percentage point as compared with that of 5.52% in the corresponding period of last year. Research and Development Expenses For the six months ended 30 June 2026, the R&D expenses of the Group amounted to RMB2,322 million, representing an increase of RMB152 million or 7.00% as compared with that of RMB2,170 million in the corresponding period of last year, which was mainly attributable to the increase in the R&D investment to tackle the tough problems in high-end civilian product during the reporting period. The R&D expenses accounted for 6.14% of the revenue during the reporting period, representing an increase of 0.35 percentage point as compared with that of 5.79% in the corresponding period of last year. Finance Costs For the six months ended 30 June 2026, the finance costs of the Group amounted to RMB200 million, representing an increase of RMB256 million as compared with that of RMB-56 million in the corresponding period of last year, which was mainly attributable to the year-on-year decrease in interest income driven by the decrease of average cash balances and the decrease of deposit interest rate, the increase of exchange losses and the year-on-year increase in interest expenses driven by the increase in debt financing of certain subsidiaries during the reporting period. Details are set out in Note 8 to the financial statements. Net Profit Attributable to the Owners of the Parent Company For the six months ended 30 June 2026, the net profit attributable to the owners of the parent company amounted to RMB823 million, representing a decrease of RMB207 million or 20.10% as compared with that of RMB1,030 million in the corresponding period of last year, which was mainly attributable to the decrease in benefits from the additional value-added tax credit policy during the reporting period and the year-on-year increase in finance costs and other period expenses of the Group during the reporting period.
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- 24 - Liquidity and Financial Resources As at 30 June 2026, the cash and cash equivalents of the Group amounted to RMB31,451 million, which consisted mainly of cash and bank deposits at the beginning of 2026 and funds generated from business operations during the reporting period. As at 30 June 2026, the total borrowings of the Group amounted to RMB24,067 million, of which short-term borrowings amounted to RMB17,231 million, current portion of long-term borrowings amounted to RMB2,393 million, and non-current portion of long-term borrowings amounted to RMB4,443 million. As at 30 June 2026, the bank borrowings of the Group amounted to RMB13,481 million with an average interest rate of 2.0% per annum, representing an increase of RMB6,184 million as compared with that at the beginning of the reporting period; and other borrowings amounted to RMB10,586 million with an average interest rate of 2.1% per annum, representing a decrease of RMB2,804 million as compared with that at the beginning of the reporting period. MORTGAGED AND PLEDGED ASSETS As at 30 June 2026, the Group’s total mortgaged and pledged borrowings amounted to RMB275 million, among which RMB92 million was mortgaged by house buildings with a net book value of RMB7 million and RMB183 million was pledged by notes receivable and accounts receivable with a net book value of RMB178 million. GEARING RATIO As at 30 June 2026, the Group’s gearing ratio was 11.70% (10.00% as at 31 December 2025), which was calculated as the total borrowings divided by the total assets as at 30 June 2026. EXCHANGE RATE RISKS The Group mainly operates in the PRC with most of its transactions settled in RMB. The exposure to foreign currencies exchange risks arising from transactions involving assets, liabilities and operating activities of the Group are primarily associated with United States Dollar, Euro and Hong Kong Dollar. The Directors consider that the exchange rate risks to the Group will not have any material adverse impact on the Group’s financial results. During the reporting period, the Group did not have any foreign currency hedging instrument. CONTINGENT LIABILITIES As at 30 June 2026, the Group had no significant contingent liabilities. EMPLOYEES As at 30 June 2026, the Group had 71,552 employees. The Group’s staff costs amounted to RMB7,080 million for the six months ended 30 June 2026, representing an increase of RMB411 million or 6.16% as compared with that of RMB6,669 million in the corresponding period of last year. The remuneration policies and employee training programs of the Company remained the same as those set out in the 2025 annual report of the Company published on 22 April 2026.
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- 25 - CHANGE OF DIRECTORS AND SENIOR MANAGEMENT Having reached the statutory retirement age, Mr. Zhou Xunwen applied to the Board on 27 March 2026 for resignation from his position as a non-executive Director and a member of each of the Development and Strategy Committee, the Audit and Risk Management Committee and the Sustainable Development Committee of the Board with effect from 19 May 2026. At the 2025 Annual General Meeting held on 19 May 2026, Mr.Wang Rong was appointed as a non- executive Director, a member of each of the Development and Strategy Committee, the Audit and Risk Management Committee and the Sustainable Development Committee of the Board, with a term of office commencing on the date of 2025 Annual General Meeting until the next session of the Board is approved by the Shareholder at the next general meeting of the Company to be held in 2027. MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) set out in Appendix C3 to the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (the “Listing Rules”), and the Shares Trading Management Rules for Directors, senior management and employees of the Company as its own guidelines for securities transactions by the Directors, senior management and employees of the Company. All Directors of the Company have confirmed their compliance with the Model Code for the six months ended 30 June 2026 following specific enquiry with them. AUDIT AND RISK MANAGEMENT COMMITTEE The Board has established the Audit and Risk Management Committee in carrying out the duty of assisting the Board and independently monitoring the financial operation, audit procedures and the risk management activities of the Company. The Terms of Reference of the Audit and Risk Management Committee were formulated and amended in accordance with the actual situation of the Company and the Guide for the Effective Audit Committee issued by the Hong Kong Institute of Certified Public Accountants and the provisions of Part 2 of the Corporate Governance Code set out in Appendix C1 (the “Corporate Governance Code”) to the Listing Rules (as amended from time to time). The Audit and Risk Management Committee had reviewed the Group’s unaudited interim consolidated financial statements for the six months ended 30 June 2026. CORPORATE GOVERNANCE CODE The Company strictly complied with various applicable laws, rules and regulations as well as the Articles of Association, maintaining standardized operations. Having reviewed the corporate governance practices adopted by the Company for the six months ended 30 June 2026, the Board is of the view that the Company has complied with the principles and code provisions set out in Part 2 of the Corporate Governance Code (as amended from time to time).
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- 26 - OTHER EVENTS On 12 December 2025, AVIC Airborne Systems Co., Ltd.* (中航機載系統股份有限公司) (“AVIC Airborne”) and AVIC Aviation Industry Investment Co., Ltd.* ( 中 航 航 空 產 業 投 資 有 限 公 司 ) (“AVIC Industry Investment”) entered into the Partnership Interest Transfer Agreement, pursuant to which AVIC Airborne agreed to acquire and AVIC Industry Investment agreed to sell 59.1816% of the partnership interest in AIC Yuhua (Shenzhen) Airborne Systems Industry Investment Partnership (Limited Partnership)* (航投譽華(深圳)機載系統產業投資合夥企業(有限合夥)) (“AIC Yuhua”). On 8 May 2026, AVIC Airborne and AVIC Industry Investment entered into a supplemental agreement to the Partnership Interest Transfer Agreement, extending the Deferred Effective Period of the transaction and clarifying the relevant rights and responsibilities. On 25 June 2026, the relevant transfer agreement officially became effective, for a consideration of RMB202.1057 million. For details, please refer to the announcements of the Company dated 12 December 2025 and 8 May 2026, and the announcement of AVIC Airborne dated 25 June 2026. Unless the context otherwise defined, terms used in this paragraph shall have the same meanings as those defined in the relevant announcements. On 6 February 2026, (i) Beijing Keeven Aviation Instrument Co., Ltd.* (北京青雲航空儀錶有限公司) (“Keeven Aviation Instrument”), Beijing Avichina Phase I Aviation Industrial Investment Fund (Limited Partnership)*(北京中航一期航空工業產業投資基金) (有限合夥)) (“ Aviation Industrial Fund”), and AVIC Jierui (Xi’an) Optoelectronic Technology Co., Ltd.* (中航捷銳(西安)光電技術有 限 公 司 ) (“AVIC Jierui”) entered into the Equity Transfer Agreement I; and (ii) Keeven Aviation Instrument, Ruitexin (Beijing) Technology Center (Limited Partnership)* ( 瑞特 新 ( 北京) 科技 中 心 （有限合夥）)(“Ruitexin”), and AVIC Jierui entered into the Equity Transfer Agreement II. Pursuant to the Equity Transfer Agreements, Keeven Aviation Instrument agreed to acquire, and Aviation Industrial Fund agreed to sell 3.7805% of the equity interests in AVIC Jierui at the consideration of RMB21.9269 million; and Keeven Aviation Instrument agreed to acquire, and Ruitexin agreed to sell 6.2195% of the equity interests in AVIC Jierui at the consideration of RMB36.0731 million. Upon the Completion, Keeven Aviation Instrument holds 10% of the equity interests of AVIC Jierui, and AVIC Jierui will remain as a non-wholly owned subsidiary of AVIC. For details, please refer to the announcement of the Company dated 6 February 2026. Unless otherwise defined, terms used in this paragraph shall have the same meanings as those defined in the relevant announcement. On 27 March 2026, the Company entered into the Technology Development Agreement with AVICOPTER PLC* ( 中 航 直 升 機 股 份 有 限 公 司 )(“AVICOPTER”) and AVIC Xi’an Flight Automatic Control Research Institute* (中國航空工業集團公司西安飛行自動控制研究所)(“AVIC Automatic Control Institute”), pursuant to which the Company and AVICOPTER (as entrusting parties) will entrust AVIC Automatic Control Institute (as entrusted party) to conduct research and development on intelligent electric aircraft flight control technology in accordance with the Technology Development Agreement. For details, please refer to the announcement of the Company dated 27 March 2026. Unless otherwise defined, terms used in this paragraph shall have the same meanings as those defined in the relevant announcement.
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- 27 - PURCHASE, SALE AND REDEMPTION OF LISTED SECURITIES For the six months ended 30 June 2026, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company’s listed securities (including sale of treasury shares). As at 30 June 2026, the Company did not hold any treasury shares. PUBLICATION OF INFORMATION ON THE HKEXNEWS WEBSITE OF THE HONG KONG STOCK EXCHANGE The electronic version of this announcement is published on both the HKEXnews website of Hong Kong Stock Exchange (www.hkexnews.hk) and the website of the Company (www.avichina.com). The interim report of the Company for the six months ended 30 June 2026, which contains all information as required by Appendix D2 to the Listing Rules, will be published on the HKEXnews website of Hong Kong Stock Exchange and the website of the Company in due course. By order of the Board AviChina Industry & Technology Company Limited* Chairman Yan Lingxi Beijing, 26 August 2026 As at the date of this announcement, the Board comprises executive Directors Mr. Yan Lingxi and Mr. Sun Jizhong, non-executive Directors Mr. Xu Dongsheng, Mr. Wang Rong, Ms. Hu Shiwei and Mr. Gao Jiming, as well as independent non-executive Directors Mr. Liu Weiwu, Mr. Mao Fugen and Mr. Lin Guiping. * For identification purpose only