SUNDIRO HOLDING(SZ:000571)2024-09-30 07:47Group 1: Company Overview and Operations - The company introduced its subsidiary, AVIC New Dazhou Aviation Manufacturing Co., Ltd. (hereinafter referred to as "AVIC New Dazhou"), which specializes in the manufacturing of aircraft engine components [2] - AVIC New Dazhou has been a supplier of sealing ring components for the LEAP engine, which is also used in the domestically produced C919 aircraft [2] - The company has approximately ten R&D personnel focused on component processing development [2] Group 2: Market Position and Competition - AVIC New Dazhou operates in a high-barrier industry with few competitors, including one company in France and one in India [3] - The production cycle for new competitors is lengthy, typically 7-8 years, making it difficult for new entrants to emerge [3] - AVIC New Dazhou holds over 35% of the market share for similar components, with a full production capacity of 16,000 units and a reported production of over 10,000 units last year [5] Group 3: Clientele and Revenue - The company primarily serves commercial aircraft clients, with no military clients currently [4] - In 2023, AVIC New Dazhou generated service revenue of 6 million yuan from its collaboration with Commercial Aircraft Corporation of China (COMAC) [9] - The company’s revenue recognition includes processing fees for commissioned work and sales of processed components [8] Group 4: Strategic Decisions and Future Plans - The company has decided not to sell its stake in AVIC New Dazhou after previously considering it due to the poor performance of its beef industry investments [9] - The company is reassessing its current business strategies and plans to explore further cooperation with the AVIC supply chain [9] - The motorcycle business was fully divested in 2017, and the beef business was divested in 2023, retaining a 50% stake in a Uruguayan subsidiary [11]