AVIC Shenyang Aircraft to boost subsidiary capital for key projects

AVIC Shenyang Aircraft Corporation Limited (AVIC Shenyang Aircraft) plans to enhance the capital of its wholly-owned subsidiary, Shenyang Aircraft Industry (Group) Co., Ltd. (Shenfei Company), by RMB 3,481,236,582.58. This infusion, comprising part of the company's raised funds and accrued interest, aims to facilitate the implementation of the "replenishment of working capital" project. Shenfei Company is the newly designated implementing entity for certain fundraising initiatives. Post-investment, Shenfei Company's registered capital will increase from RMB 6,220,706,910.62 to RMB 9,701,943,493.20, with AVIC Shenyang Aircraft retaining 100% ownership.

The funds were raised through a targeted issuance of A-shares in 2025, totaling 80,000,000 shares at RMB 50.00 per share, resulting in gross proceeds of RMB 4,000,000,000.00. After deducting underwriting fees and other issuance expenses, the net proceeds amounted to RMB 3,969,686,823.57. The capital increase will help meet the funding needs of the investment projects, improve Shenfei Company's asset-liability structure, and enhance its financial strength and operational capabilities.

The board of directors is also proposing revisions to the "AVIC Shenyang Aircraft Corporation Limited Management System for Raised Funds." This includes an overall re-compilation and amendment of the existing policy to ensure compliance with relevant laws and regulations and to further standardize the storage, management, and use of raised funds. The changes, detailed in six chapters and thirty-five articles, aim to mitigate financial risks and protect shareholder interests.