China News Agency, Beijing, January 12th (Reporter Chen Kangliang) China A-share listed company AVIC Electronic Measuring Instrument Co., Ltd. (hereinafter referred to as "AVIC Electronic Measuring") announced on the evening of the 11th that the company is planning to issue shares to purchase assets. The target asset of this transaction is preliminarily determined to be 100% equity of Chengdu Aircraft Industry (Group) Co., Ltd. (hereinafter referred to as "Chengdu Aircraft Group").

  The above announcement shows that before this transaction, Aviation Industry Corporation of China (hereinafter referred to as "Aviation Industry Group") held 100% of the shares of Chengfei Group and was the controlling shareholder and actual controller of Chengfei Group.

Aviation Industry Group is also the actual controller of AVIC.

The transaction method of this transaction is expected to be that AVIC will issue shares to AVIC to purchase its 100% equity of Chengfei Group.

  According to the announcement, due to the uncertainty of the relevant matters, in order to protect the interests of investors and avoid a major impact on the company's securities transactions, according to relevant regulations, AVIC's stock will be suspended from the market opening on January 12, 2023.

  According to public information, AVIC is an enterprise that provides intelligent measurement and control products and system solutions for both military and civilian purposes. Its business covers four major sectors: aviation military products, sensor control, intelligent transportation, and industrial software. In 2021, it will achieve revenue of 1.943 billion yuan (RMB, The same below), realized a net profit of 307 million yuan, and the latest total market value exceeded 6.2 billion yuan.

  Chengfei Group is the main base for the development, production and export of China's aviation weapons and equipment, and an important manufacturer of civil aircraft parts.

In terms of military aircraft, Chengfei Group has developed and produced J-5, J-7, Xiaolong, J-10, J-20 and other series of aircraft; Development and production of the nose of the amphibious aircraft AG600.

  CITIC Securities believes that the planned injection of Chengfei Group into AVIC is another major capital operation launched by AVIC since Shenyang Aircraft Industry (Group) Co., Ltd. injected AVIC Black Panther in 2017.

Since 2021, the asset securitization operation of China's military industry has become more active, the capital operation of Aviation Industry Group has accelerated, and the promotion of equity incentives for related companies in the sector has also significantly accelerated.

In May 2022, Chinese officials issued a work plan to improve the quality of listed companies controlled by central enterprises.

Under the guidance of policies, all central enterprises have entered the fast lane of reform.

  Tianfeng Securities said that Chengfei Group is expected to achieve a net profit of 4 billion yuan in 2023, and the company's market value is expected to reach 200 billion yuan.

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