AVIC XAC(SZ:000768)2024-06-03 11:52Group 1: Company Overview - AVIC Xi'an Aircraft Industry Group Co., Ltd. (AVIC Xi'an) was established on June 18, 1997, and listed on the Shenzhen Stock Exchange on June 26, 1997, becoming the first publicly listed company in China's aviation manufacturing industry [2]. - The company primarily engages in the research, production, maintenance, and service of large and medium-sized aircraft and aviation components, including components for C919, ARJ21, and AG600 aircraft [2][3]. - AVIC Xi'an has established long-term and stable partnerships with renowned aviation companies such as Airbus, Boeing, and COMAC [2]. Group 2: Industry Context - The aviation industry is characterized as knowledge-intensive and technology-intensive, with a high degree of industry interconnection and strong employment absorption capacity [3]. - The development level of the aviation industry is a significant indicator of a country's economic, technological, and industrialization status, playing an irreplaceable role in enhancing international competitiveness and maintaining national security [3]. - The industry features long research and development cycles, large investment scales, high technological risks, and requires sustained professional capability and resource allocation to achieve lasting competitive advantages [3]. Group 3: Production Capacity and Demand - AVIC Xi'an is a key manufacturer of large and medium-sized transport aircraft, bombers, and special aircraft, and is the largest production base for transport aircraft in China [3]. - The company has stable production capacity for the C919 aircraft project and is aligned with COMAC's planned demand to support the fulfillment of end-user orders [3][4]. Group 4: Cost Management and Future Investments - In 2023, the company significantly improved its overall cost rate, achieving notable results in cost reduction and efficiency enhancement [4]. - Future cost management plans include strengthening new product development management, enhancing economic capabilities, and improving process control to reduce operational costs [4]. - The company will focus on military aviation, civil aviation, and aviation services for future capital investments, aiming to enhance core capabilities in technological innovation, product development, and value creation [4].