Chinese Military Industrial Giant Great Wall Military Industry recently released its 2025 semi-annual report, showing a 29.55% year-on-year increase in operating income for the first half of the year. However, the company’s net profit attributable to shareholders was -0.27 billion yuan, still in the red.
Great Wall Military Industry, a state-owned holding listed company, primarily operates in military products but also has business interests in civilian products.
The actual controlling shareholder of the company was changed to China Ordnance Equipment Group Limited in August 2023. The company’s military products include mortar shells, individual rocket launchers, while its civilian products include pre-stressed anchor series, automotive air conditioning compressors, and other auto parts.
According to the latest semi-annual report released by Great Wall Military Industry, the company achieved operating income of 699 million yuan in the first half of 2025, a 29.55% increase compared to the previous year. Despite the revenue growth, the net profit attributable to shareholders showed a loss of 0.27 billion yuan, a 30.85% decrease in losses compared to the previous year.
The company attributed the revenue growth to a 33.07% year-on-year increase in military product revenue and a 2.71 percentage point increase in comprehensive gross profit margin due to changes in product structure. However, the net cash flow from operating activities was -1.30 billion yuan.
Great Wall Military Industry has been facing losses for several years. According to the 2024 annual report, the company’s annual operating income was 1.43 billion yuan, an 11.4% year-on-year decrease; net profit attributable to shareholders was a loss of 3.63 billion yuan, a 1,458.4% year-on-year decrease; and adjusted net profit attributable to shareholders was a loss of 3.78 billion yuan, a 3,040.6% year-on-year decrease. The fourth-quarter single-quarter loss was 2.87 billion yuan.
In the annual report of the same year, the company explained that some products require customer price evaluation, and price adjustments are made based on the progress of evaluation. As a result, the revenue of the equipment manufacturing sector decreased by 8.33% year-on-year, and the gross profit margin decreased by 29.54 percentage points, falling to a negative 1.43%.
Although Great Wall Military Industry reported a net loss in the first half of the year, its stock price has surged over 456% since the beginning of the year until August 26th. The company has issued multiple notices on stock trading transactions to warn investors of market risks.
Behind the abnormal fluctuations in the stock price is the market’s attention to the restructuring plans of China Ordnance Equipment Group Limited, an indirectly controlling shareholder of the company.
Regarding the progress of the restructuring plans of China Ordnance Equipment Group Limited, an employee from the company’s securities department stated on August 26th that they are unaware of the specific developments as it is not directly related to the listed company’s main business, and there have been no changes in the company’s operations.
In February of this year, Great Wall Military Industry announced that China Ordnance Equipment Group Limited is planning a restructuring with other state-owned enterprises, which could lead to changes in the company’s controlling shareholders. In early June, the company further disclosed that the State Council approved the separation of China Ordnance Equipment Group Limited. Since June, there have been no further disclosures regarding the proposed changes to the controlling shareholders. However, the stock price of Great Wall Military Industry began fluctuating in late June. On August 14th, 2025, the company’s stock price surged to 73.25 yuan per share, marking the highest price in recent years.
Great Wall Military Industry’s shareholder structure shows that Anhui Military Industry Group Holding Co., Ltd. holds a 58.89% stake, while the top ten shareholders collectively hold 65.55% of the shares. As of the reporting period, the number of shareholders stood at 147,000 accounts, with Anhui Military Industry Group being 51% owned by China Ordnance Equipment Group Limited.