Avic Hi-Tech(SH:600862)2024-05-16 07:35Group 1: Low-altitude Economy Business - The company has a competitive advantage in cost efficiency within the low-altitude economy sector due to prior technological accumulation and experience, leading to better R&D efficiency and production pricing compared to newcomers [1] - Current order volume in the low-altitude economy business is low, as it is still in the cultivation phase, with profit margins aligning with general commercial norms, primarily influenced by the choice of low-cost fibers [3] Group 2: Research and Development Expenditure - The company has significantly increased its R&D expenditure in new industry layouts, with details available in the 2023 annual report. The trend shows a year-on-year growth in development spending, mainly focused on materials and components related to civil aircraft [3] Group 3: Inventory Management - The company's inventory includes raw materials, work-in-progress, and finished goods, with a complex structure. It aims to maintain safety stock while ensuring precise delivery according to requirements, in line with the "two golds" policy [4] Group 4: Business Operations and Performance - The company anticipates that its operational performance this year is unlikely to exceed the initial budget, as the budget was determined through comprehensive consideration and careful assessment, with minimal risk to achieving annual operational targets [5] - The company is actively pursuing reforms in its equipment business, focusing on specialized equipment and tooling, which remains a primary area of development [5] Group 5: Future Plans and Strategies - The company is considering the expansion of its prepreg production capacity to meet future demand over the next two to three years, with some production segments needing adjustments based on market needs [6] - The company is contemplating a targeted issuance of new shares based on operational performance and new industry layout requirements [6]