AviChina Industry & Technology

AviChina Industry & Technology Company Limited
Native name
中国航空科技工业股份有限公司
Company typePublic subsidiary
SEHK: 2357
IndustryAviation
FoundedApril 30, 2003; 21 years ago (2003-04-30)
HeadquartersBeijing, China
Key people
Yan Lingxi (Chairman)
Sun Jizhong (CEO)
RevenueIncrease CN¥84.73 billion (2023)
Increase CN¥6.69 billion (2023)
Total assetsIncrease CN¥185.02 billion (2023)
Total equityIncrease CN¥88.06 billion (2023)
OwnerAviation Industry Corporation of China
Number of employees
74,584 (2023)
ParentAviation Industry Corporation of China
SubsidiariesAVIC Jonhon Optronic Technology
Websitewww.avichina.com
Footnotes / references
[1]

AviChina Industry & Technology (AviChina; Chinese: 中航科工; pinyin: Zhōngháng Kēgōng) is a partially state-owned publicly listed aviation company headquartered in Beijing. It primarily is involved with aircraft manufacturing, supplying aviation Ancillary Systems and providing aviation engineering services.

The company is a subsidiary of the Aviation Industry Corporation of China (AVIC).

Background

AviChina was established on 30 April 2003.[1] It was previously the civil unit of China Aviation Industry Corporation II. As of 2003 it was the largest minicar maker in China with a 41 percent market share as well as the only domestic mass producer of helicopters and regional jets in China. Although the car business made up 80% of its revenue in the previous year it expected its aircraft assembly business to drive future growth. AviChina held 49 percent of a joint venture with Embraer to build jets in China. It also had partnerships with Sikorsky Aircraft and Eurocopter to make helicopters[2]

On 30 October 2003, AviChina held its initial public offering becoming a listed company on the Hong Kong Stock Exchange. It raised US$247 million.[2]

For 2007, AviChina reported a loss of 1.03 billion yuan due to a bigger deficit at its vehicle division and decline in margins at its helicopter unit. Its vehicle division consisted of two units, Hafei Automobile and Changhe.[3] In 2009, AviChina became a purely aeronautical company after it sold Hafei to its parent AVIC in exchange for its avionics electronics business and spunoff Changhe.[4][5] In 2010, AviChina management said it intended to gradually buy all of its parent's aviation equipment operations.[4]

In April 2018, Bloomberg News reported that AviChina was one of the best performing stocks in Asia. From the start of February to April it had rose 40% which put it at the top of the MSCI Asia Pacific Index that fell more than 6 percent in that time. Due to tensions in China–United States relations there was renewed investors’ interest in Chinese defense stocks. Its military revenue outpaced profits from general-purpose lightweight aircraft used for cargo transport and crop seeding. Airbus was a significant shareholder with a 11.7% stake.[6]

In January 2023, Norway's sovereign wealth fund, Norges Bank Investment Management said it had divested from AviChina for selling light aeroplanes to military junta-ruled Myanmar.[7]

See also

References

  1. ^ a b "2023 Annual Report" (PDF). HKEX. Archived (PDF) from the original on 5 September 2024. Retrieved 28 September 2024.
  2. ^ a b "AviChina to raise up to $247 million in IPO". Automotive News. 13 October 2003.
  3. ^ So, Charlotte (12 April 2008). "Car unit pushes AviChina losses to 1b yuan". South China Morning Post. Retrieved 28 September 2024.
  4. ^ a b Ng, Eric (25 February 2012). "AviChina gets HK$698m in institutional share sale". South China Morning Post. Retrieved 28 September 2024.
  5. ^ "China Aviation Industry Group to split arms' car assets". autonews.gasgoo.com. 29 July 2008. Retrieved 28 September 2024.
  6. ^ Servando, Kristine (9 April 2018). "Asia's Hottest Stock Is a Bet on China's Military Expansion". Bloomberg.com. Retrieved 28 September 2024.
  7. ^ "China, India firms dropped by Norway fund over Myanmar weapons". Al Jazeera. 25 January 2023. Retrieved 28 September 2024.