AVIC Shenyang Aircraft to boost subsidiary capital by 3.48bn yuan

AVIC Shenyang Aircraft Corp. plans to inject 3,481,236,582.58 yuan in raised funds and accrued interest into its wholly-owned subsidiary, Shenyang Aircraft Industry (Group) Co., Ltd. (Shenfei Company), to implement a fundraising investment project. This capital increase, approved by the board on October 9, 2025, will see Shenfei Company's registered capital rise from 6,220,706,910.62 yuan to 9,701,943,493.20 yuan. AVIC Shenyang Aircraft Corp. will retain 100% ownership of Shenfei Company. This action, which is subject to shareholder approval, aims to enhance Shenfei Company's financial strength and operational capabilities.

The funds, totaling 3,969,686,823.57 yuan after deducting issuance expenses, were secured from an A-share offering of 80,000,000 shares at 50.00 yuan per share, as approved by the China Securities Regulatory Commission (CSRC) (CSRC Licensing [2025] No. 630). The capital injection is designated for the supplementary working capital project, making Shenfei Company an additional implementation entity alongside AVIC Shenyang Aircraft Corp. for this specific project.

The board of directors of AVIC Shenyang Aircraft Corp. affirmed that this move adheres to regulatory guidelines, does not alter the fundraising objectives, and will not negatively impact the project's execution or the interests of the company and its shareholders. Both AVIC Securities and China Securities Investment Banking, acting as sponsors, found no objections to the proposed capital increase.