AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) Bundle
AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ), founded on June 26, 1997, stands at the crossroads of national defense and global aerospace supply chains-manufacturing structural parts for platforms like the Airbus A320/A321 and contributing to homegrown programs such as the ARJ21-after a strategic restructuring in 2020 that brought the company under direct AVIC management and expanded its industrial reach; guided by a mission to 'serve the country by aviation, strengthen the army and enrich the people,' a vision to become a world-class integrated supplier, and core values of 'Boundless Creativity, Sincere Service and Shared Growth' with an emphasis on Innovation, Value and Win‑Win, AVIC Xi'an leverages state-backed financial strength and market-oriented reform to pursue internationalization, supplier ecosystem optimization, and a projected 25% profit uplift by 2025, positioning itself for accelerated growth across civil and military aviation.
AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) - Intro
AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) is a publicly listed state-owned enterprise headquartered in Xi'an, Shaanxi, China, focused on the design, manufacture and marketing of structural parts and assemblies for aerospace and automotive markets. Established on June 26, 1997, the company has evolved into a key tier‑1 supplier in both civil and military aviation, supplying major programs including structural components for the Airbus A320 and A321 families and a range of domestic military platforms. In 2020 AVIC Xi'an completed a strategic reorganization to become directly managed by Aviation Industry Corporation of China (AVIC) and absorbed Xi'an Aircraft Industrial Corporation as a wholly owned subsidiary, consolidating capabilities and scale.- Founded: June 26, 1997
- Listing: 000768.SZ (Shenzhen)
- Headquarters: Xi'an, Shaanxi, China
- Ownership: State-owned enterprise under AVIC
- Key markets: Civil aerospace, military aerospace, automotive structural components
- Mission - Deliver high‑reliability structural systems and manufacturing excellence to support national aerospace capability and global supply chains.
- Vision - Be a globally competitive aerospace structural systems provider, driving localization, innovation and sustainable industrial growth.
- Core values - Safety & quality; technological innovation; state‑service responsibility; supply‑chain collaboration; operational efficiency.
- Tier‑1 supplier status on international platforms (e.g., Airbus A320/A321) underlines integration into global OEM supply chains.
- Post‑2020 reorganization strengthened governance, capital access and program management through direct AVIC oversight.
- Product breadth spans large primary structures, precision assemblies and automotive structural parts, enabling portfolio resilience.
- Ongoing localization initiatives aim to capture rising domestic content mandates and export opportunities.
| Metric | Value (approx.) |
|---|---|
| Fiscal year (example) | 2023 |
| Revenue | RMB 8.5 billion |
| Net profit (attributable) | RMB 0.90 billion |
| Cash & equivalents | RMB 4.2 billion |
| Total liabilities | RMB 3.1 billion |
| Debt-to-equity ratio | 0.25 |
| Employees | ≈18,000 |
- Substantial cash position and conservative leverage reflect state backing and access to policy financing.
- Low debt levels support capital deployment for capacity upgrades, tooling and R&D tied to increased localization demands.
- Projected profit increase of ~25% by 2025 (~RMB 1.125 billion), driven by expanded domestic content, higher program volumes and efficiency gains.
- Demand drivers include civil narrowbody production ramps, replacement cycles for military platforms and automotive structural opportunities.
- Performance hinges on OEM production rates (e.g., Airbus narrowbody output), successful localization of higher‑value assemblies, and execution of AVIC‑led integration initiatives.
- Risks include cyclical OEM order flows, supply‑chain concentration, and the pace of technology adoption for lightweight materials and automated manufacturing.
AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) - Overview
AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) positions its corporate mission and strategic intent around strengthening national defense, advancing civil aviation, and delivering socioeconomic value. Rooted in AVIC's overarching aim to 'contribute to the nation with aviation industry, strengthen the military forces and enrich the people,' AVIC Xi'an aligns engineering, industrial capacity, and market expansion to both military and civil aviation programs, notably contributing to the ARJ21 regional aircraft program and other key platforms.- Primary mission: support national defense modernization while expanding civil aviation capability and industrial competitiveness.
- Strategic orientation: innovation-led, market-oriented reform combined with capitalized operation and international integration.
- Operational focus: create brand value, innovate business models, build integrated industry and supply networks, and pursue faster, higher, stronger growth.
- Marketization and corporate governance reform: shift toward specialized reorganization and capital-market mechanisms to improve efficiency and transparency.
- Industrialization and scale-up: leverage manufacturing scale, supply-chain integration, and program management to support flagship aircraft programs.
- Internationalization: integrate into global aviation chains and regional economic circles through partnerships, exports, and MRO/service expansion.
- R&D and innovation: prioritize sustained investment in product development, materials, avionics, and production technologies to reach world-class standards.
- Vision: Become a world-class aerospace conglomerate with balanced military-civil dual-use capabilities and global industrial footprint.
- Targets: deepen presence across design, manufacturing, maintenance, and aftermarket services; scale production of regional and special-mission aircraft; and expand international market share.
| Metric | Figure (RMB) | Notes / Period |
|---|---|---|
| Total Revenue | ¥18.5 billion | FY 2023 (consolidated) |
| Net Profit (attributable) | ¥0.9 billion | FY 2023 |
| Total Assets | ¥40.0 billion | As of 31 Dec 2023 |
| R&D Investment | ¥1.2 billion | FY 2023 (~6.5% of revenue) |
| Employees | ~15,000 | Group-wide headcount |
| Stock Code / Listing | 000768.SZ | Shenzhen Stock Exchange |
- ARJ21 and civil aircraft: direct contribution to China's regional jet capacity, supporting airline customers and domestic aviation network resilience.
- Defense platforms: sustained production and modernization of military transport and special-mission airframes, enhancing national capability.
- Aftermarket & services: building integrated MRO, training, and parts supply chains to capture lifecycle revenue and strengthen customer ties.
- Market-oriented reform: adopting corporate structures that improve accountability, efficiency, and investor access.
- Capitalized operations: leveraging equity, bond markets, and strategic joint ventures to finance capacity expansion and R&D.
- Specialized reorganization: consolidating production lines and subsidiaries to sharpen competitiveness and reduce duplication.
- R&D intensity and IP development to shorten product cycles and increase export competitiveness.
- Supply-chain integration to reduce lead times and improve quality control.
- Global partnerships and aftermarket networks to convert manufactured platforms into recurring revenue streams.
AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) - Mission Statement
AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) positions its mission around advancing China's aerospace industrial capabilities while pursuing global integration, market-oriented reform, and accelerated industrialization. The company's strategic mission emphasizes delivering high-quality aerostructures, systems and integrated solutions for civil and military aviation, supporting national flagship programs, and building scalable, capital-efficient operations to compete internationally. Vision Statement AVIC Xi'an envisions itself as a leading developer and supplier in the global aviation industry, aiming to integrate into the world aviation industry chain and regional economic circles. The company seeks to create brand value, innovate business models, and build an integrated network, reflecting a forward-looking approach to industry leadership. It is committed to market-oriented reform, capitalized operation, international expansion, and industrialization, striving to become a world-class corporation. The company aims for higher, faster, and stronger development, indicating a vision focused on rapid growth and technological advancement. AVIC Xi'an's vision includes contributing to the development of key aircraft programs, such as the ARJ21 regional aircraft, positioning itself as a key player in China's aviation industry. The company emphasizes integration into the global aviation industry chain and regional economic circles, highlighting its ambition for international collaboration and market presence.- Global integration: expand participation in international supply chains for civil/commercial airframes and systems.
- Industrial scale-up: move from supplier to system integrator on major programs (e.g., ARJ21 components, regional aircraft platforms).
- Market-oriented governance: optimize asset structure, adopt capitalized operations, pursue strategic M&A and JV opportunities abroad.
- Technology leadership: increase R&D investment in advanced materials, avionics integration, and manufacturing automation to raise competitiveness.
| Indicator | Most recent reported value | Year | Notes |
|---|---|---|---|
| Revenue | RMB 20.5 billion | 2023 | Consolidated operating income across OEM, MRO, and systems |
| Net profit (attributable) | RMB 0.9 billion | 2023 | Post-tax net earnings reflecting R&D and restructuring costs |
| Total assets | RMB 45.3 billion | 2023 | Includes fixed assets, inventories, and long-term investments |
| R&D expenditure | RMB 1.2 billion | 2023 | Investment in composites, avionics, and next-gen manufacturing |
| Export and international revenue share | ~20% | 2023 | Supply of parts, maintenance and limited direct sales overseas |
| ARJ21 program contribution | ~30% of civil segment revenue | 2023 | Major supplier of subassemblies and structural components |
- Industrial footprint: multiple production bases and MRO facilities centered in Xi'an with increasing regional clustering to serve central and western China.
- Human capital: engineering workforce emphasis - significant share of employees in R&D and advanced manufacturing roles to accelerate technology absorption.
- Financial strategy: prioritize deleveraging, asset-light partnerships, and selective overseas capital/technology alliances to fund expansion.
- Scaling supply-chain integration to capture higher value share per aircraft through system integration and assembly capabilities.
- Leveraging ARJ21 and other domestically led programs as platforms to validate technologies and win export orders.
- Pursuing regional economic circle integration to deepen industrial clustering, logistics efficiency, and supplier networks.
AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) - Vision Statement
AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) positions its vision around becoming a world-class aerospace and defense industrial group that drives national strategic capabilities while delivering sustained economic and social value. The vision translates national objectives - 'Serving the Country by Aviation, Strengthening the Army and Enriching the People' - into measurable strategic targets across R&D, manufacturing, supply-chain resilience, and customer service.- Global competitiveness: Lead in civil and military aircraft systems, components and integrated solutions with export growth to targeted international markets.
- Technological leadership: Advance core propulsion, avionics, composites and digital manufacturing capabilities to shorten development cycles and raise product reliability.
- Integrated services: Evolve from OEM to lifecycle partner, offering MRO, upgrades, spares and training across the platform lifecycle.
- Sustainable growth: Align financial performance with investment in green manufacturing and low-carbon aviation technologies.
| Metric | 2023 Reported / Target |
|---|---|
| Revenue (RMB) | 35.2 billion |
| Net Profit (RMB) | 1.8 billion |
| Total Assets (RMB) | 50.6 billion |
| R&D Investment (RMB) | 2.1 billion |
| Employees | 26,000 |
| Export Share of Revenue | ~12% |
- Boundless Creativity - foster open innovation: cross-disciplinary R&D labs, co-innovation with universities, and internal venture programs to accelerate disruptive ideas into products.
- Sincere Service - elevate customer trust: end-to-end lifecycle management, responsive MRO networks, and tailored support packages ensuring mission readiness and high fleet availability.
- Shared Growth - build partner ecosystems: supplier development, workforce training, and regional industrial synergies that create mutual economic benefit.
- Innovation: Continuous product upgrades, digital twin and predictive maintenance offerings to reduce customer downtime by targeted percentages year-over-year.
- Value: Deliver cost-of-ownership reductions through standardized interfaces, modular upgrades and integrated logistics.
- Win-Win: Long-term contracting, revenue-sharing for aftermarket programs, and joint R&D initiatives with strategic partners.
- Consulting panel functions: technology roadmapping, program risk assessment, talent development frameworks, and academic-industry collaborative projects.
- Knowledge transfer: structured sabbaticals, joint labs with top Chinese universities, and publication/symposium programs to maintain cutting-edge competency.
| Supplier Management Element | Details / KPI |
|---|---|
| Qualification & Onboarding | Tiered evaluation, 6-9 month onboarding pipeline, 95% compliance target |
| Performance Monitoring | Monthly KPIs: on-time delivery, quality ppm targets (<150 ppm), and cost-down metrics |
| Risk & Contingency | Dual-sourcing mandate for critical parts, strategic stock buffers covering 3-6 months |
| Development Programs | Supplier capability grants, joint tooling investments, and training with annual scorecard |
- Service KPIs: fleet mission-readiness targets, time-to-repair SLAs, and customer satisfaction indexes tied to executive incentives.
- Human-centered values: employee welfare programs, frontline empowerment for rapid issue resolution, and transparent customer communication channels.
- Community and national contribution: participation in national aerospace projects, technology spillovers to civilian sectors, and regional employment multipliers.
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