AVIC Shenyang Aircraft invests 393m yuan in subsidiary for enhancement project

AVIC Shenyang Aircraft Corp. will invest 393.30 million yuan into its controlled subsidiary, Jilin Aviation Maintenance Co. Ltd. (Jihang Company), for the “Aircraft Maintenance Service Support Capability Enhancement Project.” This capital increase will raise AVIC Shenyang Aircraft Corp.’s ownership in Jihang Company from 52.02% to 66.14%, with other shareholders foregoing their pre-emptive rights. The transaction will use a portion of the 3,969,686,823.57 yuan net proceeds from a specific offering.

The capital injection is based on an asset appraisal, valuing Jihang Company's total shareholder equity at 940.6341 million yuan as of December 31, 2024. The price is set at 1.71 yuan per registered capital unit, with 230.00 million yuan allocated to registered capital and 163.30 million yuan to capital reserves. The company projects a net profit of 1,361,501,586.79 yuan for the first three quarters of 2025 and plans a cash dividend of 0.14 yuan per 10 shares.

The board of directors approved the capital increase, the Q3 2025 financial report, and the profit distribution plan. The company will also continue its engagement with DaXing Certified Public Accountants as its auditor for 2025. These strategic moves aim to enhance Jihang Company’s operational capabilities and streamline the implementation of key projects.