Minsk Civil Aviation Plant No. 407

OJSC "Minsk Civil Aviation Plant No. 407"

UNP: 100092616 · 134 Aerovokzalnaya St., 220054 Minsk

MonopoliesSpecial state review

Identification

UNP100092616

OKED30300 — manufacture of aircraft, including spacecraft, and related equipment

Legal formOJSC

Governing bodyStrategic sector (republican subordination)

State share100%

Address134 Aerovokzalnaya St., 220054 Minsk

Websiteavia407.by

Financial statements

k BYN

Line item	Reporting year	Prior year
Fixed assets	247 638	232 238
Intangible assets	336	245
Investments in long-term assets	5 267	4 347
Long-term financial investments	4 146	4 146
Deferred tax assets	959	959
Total Section I (long-term assets)	258 346	241 935
Inventories	64 286	57 003
— materials	24 966	22 262
— work in progress	38 933	34 315
— finished goods and merchandise	239	359
Deferred expenses	131	119
VAT on acquired goods, works, services	1 290	550
Short-term receivables	37 684	34 397
Short-term financial investments	179	628
Cash and cash equivalents	63 528	76 493
Total Section II (short-term assets)	167 098	169 190
BALANCE (assets)	425 444	411 125
Charter capital	21 382	21 382
Additional capital	91 649	70 015
Retained earnings (uncovered loss)	87 758	80 739
Total Section III (equity)	200 789	172 136
Long-term loans and borrowings	52 554	58 261
Long-term lease liabilities	3 984	932
Deferred income	47 634	46 951
Total Section IV (long-term liabilities)	104 172	106 144
Short-term loans and borrowings	315	333
Short-term payables	114 300	126 998
— to suppliers, contractors, providers	5 249	3 057
— on advances received	100 391	118 365
— on taxes and duties	1 990	1 045
— on social insurance and security	732	635
— on payroll	2 325	1 853
— on lease payments	3 061	1 957
— to other creditors	552	86
Deferred income	5 868	5 514
Total Section V (short-term liabilities)	120 483	132 845
BALANCE (equity and liabilities)	425 444	411 125

Computed metrics

Current ratio

1.387

Prior: 1.273(+9%)

F1.290 / F1.690

Absolute liquidity

0.529

Prior: 0.581

(F1.260 + F1.270) / F1.690

Own working capital ratio

-0.344

Prior: -0.413(+16.7%)

(F1.490 - F1.190) / F1.290

Sales profitability

6.526%

Prior: 8.554%(-2.03 pp)

F2.060 / F2.010 × 100%

Net profitability

7.903%

Prior: 0.756%(+7.15 pp)

F2.210 / F2.010 × 100%

Revenue dynamics

35.52%

(F2.010_N / F2.010_N-1) - 1

Debt dynamics

-9.77%

(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1

Debt load

0.673

Prior: 0.701

(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)

Operating cash-flow margin

-8.68%

Prior: 64.13%(-72.8 pp)

F4.040 / F2.010 × 100%

Integrity checks

Checks passed: 6 of 6

✓Balance sheet balances (assets = liabilities)

✓Cash-flow integrity

✓Cash-flow residuals

✓Cash position

✓Capital transition

✓Profit consistency

Signals

Red flags

Operating cash flow F4.040 is negative: BYN −10,049k against +54,788k a year earlier, a −72.8pp swing against revenue. Current-activity receipts F4.020 199,019 against 212,529 (−6.4%), payments F4.030 −209,068 against −157,741 (+32.5%).F4.040 · F4.020 · F4.030
Own working capital ratio −0.344: long-term assets F1.190 258,346 exceed equity F1.490 BYN 200,789k. Permanent capital (F1.490 plus F1.590 104,172 = 304,961) does cover long-term assets — the reading of this ratio requires an expert decision.F1.190 · F1.490 · F1.590

Yellow flags

Cash down −17%: F4.120 76,493 → F4.130 BYN 63,528k. Outflow breakdown: current activity F4.040 −10,049, financing F4.100 −8,601, partly offset by investing F4.070 +5,685.F4.120 · F4.130 · F4.040 · F4.100 · F4.070
Sales profitability F2.060/F2.010 compressed 8.55% → 6.53% (−2.03pp): cost of sales F2.020 grew +41.2% (69,475 → 98,130) against revenue +35.5%.F2.060 · F2.010 · F2.020
'Other payments' F4.034 BYN −105,325k — 91% of revenue F2.010 against 95% a year earlier. The largest outflow item, whose composition the forms do not disclose.F4.034 · F2.010
Advances received F1.632 down −15%: 118,365 → BYN 100,391k — shrinking advance funding.F1.632
Long-term lease obligations F1.520 up ×4.3: 932 → BYN 3,984k. The line is outside the debt-criterion aggregate; on the line itself the growth is material.F1.520
Net-profit quality: the ×14.2 growth is non-operating. Investment-activity expenses F2.110 fell −13,203 → −3,231, contributing 9,972 of the 13,766 increase in F2.140; interest receivable F2.103 5,620 → 8,039. Profit on sales F2.060 grew only +3.4%, while exchange-rate income F2.121 declined 16,372 → 14,798.F2.110 · F2.140 · F2.103 · F2.060 · F2.121
Interest payable F2.131 up ×5.8: −97 → BYN −562k (+479%). The absolute amount is small relative to balance-sheet scale; the growth rate is above the observation threshold.F2.131

Green signals

Net profit F2.210 is positive in both years and grew 646 → BYN 9,151k (×14.2).F2.210
Loans and borrowings F1.510 plus F1.610 down −9.8%: 58,594 → BYN 52,869k — without shifting debt into short-term.F1.510 · F1.610
Short-term loans and borrowings F1.610 BYN 315k — 0.07% of liabilities F1.700: no short-term debt pressure.F1.610 · F1.700
Equity F1.490 up +16.6%: 172,136 → BYN 200,789k. Most of the increase comes from revaluation F2.220 BYN 21,977k — organic growth is about +3.9%.F1.490 · F2.220
Cash F1.270 BYN 63,528k — 15% of assets F1.300 BYN 425,444k.F1.270 · F1.300

Recommendation

Suggested outcome

Special state review

Category

Distressed

Health score

0.90

Confidence level

Medium

Special state review

A strategic sector — aviation equipment manufacturing, protection of national interests. The enterprise is profitable (net profit BYN 9,151k) and growing in revenue (+35.5%), yet operating cash flow for 2025 is negative (BYN −10,049k) and sales profitability compressed by 2.03pp. Privatization is inappropriate — a strategic sector should not pass into private hands in the current geopolitical context; restructuring is not required — there is no critical debt burden; liquidation is ruled out — the enterprise is profitable. Recommended path — retention in state ownership with targeted capital investment in modernization.

OJSC "Minsk Civil Aviation Plant No. 407" manufactures aviation equipment, is 100% state-owned and republican-subordinated. The 2025 financial picture: a profitable enterprise with negative operating cash flow.

Recommendation: Special state review. Retention of state ownership (a strategic sector — aviation equipment manufacturing, protection of national interests) plus targeted capital investment in modernization and in addressing margin compression. Privatization is inappropriate — a strategic sector. Restructuring is not required: there is no critical credit burden, loans and borrowings are declining. Liquidation is ruled out — the enterprise is profitable.

Why special state review. Net profit 646 → BYN 9,151k (×14.2), revenue 85,438 → BYN 115,777k (+35.5%), equity 172,136 → BYN 200,789k (+16.6%, of which revaluation F2.220 — 21,977), loans and borrowings F1.510+F1.610 58,594 → BYN 52,869k (−9.8%). Cash BYN 63,528k — 15% of assets. Operating cash flow F4.040 turned negative: +54,788 → BYN −10,049k, a −72.8pp swing against revenue, despite positive profit on sales. Current-activity receipts F4.020 212,529 → 199,019 (−6.4%), payments F4.030 −157,741 → −209,068 (+32.5%); within them "other payments" F4.034 BYN −105,325k, 91% of revenue against 95% a year earlier. Advances received F1.632 118,365 → 100,391 (−15%). Sales profitability F2.060/F2.010 compressed 8.55% → 6.53% (−2.03pp): profit on sales grew 3.4% while revenue grew 35.5%. The net-profit rise is non-operating: investment-activity expenses F2.110 fell −13,203 → −3,231, contributing 9,972 of the 13,766 increase in F2.140 (72%); interest receivable F2.103 5,620 → 8,039. Exchange-rate income F2.121 meanwhile declined 16,372 → 14,798.

Confidence: MEDIUM. (a) own working capital ratio −0.344 — long-term assets 258,346 exceed equity 200,789, while permanent capital (200,789 + 104,172 = 304,961) does cover long-term assets; the reading requires an expert decision; (b) the one-year reversal of operating cash flow requires confirmation from advance-payment dynamics.