Avic Xi'An Aircraft Industry Group Company Ltd. (000768.SZ) announced on May 13th that its wholly-owned subsidiary, Xi'An International Aviation Manufacturing (Tianjin) Co., Ltd., has completed the industrial and commercial registration changes. The registered capital has been significantly increased from 206 million yuan to 459 million yuan, a surge of 122.22%. The company has also been renamed Tianjin Butik International Aviation Manufacturing Co., Ltd., with its business scope adjusted to include new operations such as civil aircraft maintenance and technology import/export. This move followed the board's approval of the capital increase proposal in late April by just half a month. Post-capital increase, the Tianjin company has introduced two Avic-affiliated enterprises, Shanghai Xinsheng and Zhongzhen Technology. Market analysis suggests this capital expansion is not merely a financial replenishment but signals Avic Xi'An's strategic intent to intensify its presence in the civil aviation manufacturing sector.
The location of Tianjin Butik International Aviation Manufacturing Co., Ltd., Tianjin, serves as Airbus's most crucial production base in the Asia-Pacific region. By 2026, Airbus's second final assembly line in Tianjin will enter a critical phase of ramping up production capacity. According to a research report from China Merchants Securities, Avic Xi'An is projected to deliver 834 units for international subcontracting projects to Airbus in 2025, constituting the primary growth driver for the company's international cooperation business. Further statistics indicate that Avic Xi'An's total international subcontracting deliveries for 2025 are expected to reach 1,231 units, comprising 834 units for Airbus and 397 units for another major client. On May 12th, Airbus China's procurement team conducted a specialized review of Avic Xi'An's A320 wing project operations, which passed the high-standard assessment. Just a month prior, Avic Xi'An was awarded the "Rate Champion" award by Airbus China, recognizing its high-quality, efficient, and on-time delivery performance for the A320 series wing project. The company stated it is seizing the opportunity presented by the operational commencement of the Airbus Tianjin final assembly line, closely monitoring Airbus's production rate ramp-up plan, expanding the scale of existing project cooperation with Airbus, and actively pursuing incremental projects for the A320 series.
Recently, China and the United States have engaged in dialogues regarding cooperation in the aviation sector. On May 15th, during a regular press conference held by Foreign Ministry Spokesperson, a reporter from The New York Times inquired about comments regarding a statement by the U.S. President about China agreeing to purchase 200 Boeing aircraft. The spokesperson emphasized that the essence of China-U.S. economic and trade relations is mutual benefit and win-win cooperation, and both sides should work together to implement the important consensus reached by the two heads of state, injecting more stability into China-U.S. economic and trade cooperation and the world economy. For domestic aviation manufacturing enterprises, the window for international cooperation is widening. Reports indicate that since 2026, Chinese airlines have placed orders for over 350 A320neo aircraft from Airbus, with a total value exceeding $50 billion. Avic Xi'An is a core supplier of wings for the Airbus A320 series and a significant airframe supplier for Boeing in China, deeply involved in supporting mainstream civil aviation passenger aircraft models, including the B737, A320, A321, and C919, with cooperation encompassing the development and delivery of core components.
Concurrently, the domestically developed large aircraft, the C919, is accelerating its scale of deliveries. Reports suggest C919 deliveries increased to 15 aircraft in 2025. As a core airframe structure supplier for the C919, Avic Xi'An's delivery volume grew by 25% year-on-year, with civil aviation revenue reaching a new high as a proportion of the company's total income. The company has formally entered the supply chain for the C929 long-range wide-body passenger aircraft, undertaking key work packages including the forward section of the rear fuselage, slats, and ailerons. Avic Xi'An stated that during the "15th Five-Year Plan" period, civil aviation is positioned as the company's second growth curve pillar industry and is expected to maintain steady growth, with international subcontracting project cooperation deepening continuously and market space expanding further. This capital increase, expansion, and business development at the Tianjin base represent a crucial strategic move to align with global aviation industry demands. It is also a significant initiative for the company to leverage its core technological advantages, seize the dual opportunities presented by the rise of domestically developed large aircraft and the deepening of international cooperation, consolidate its leading industry position, and contribute to the high-quality development of China's aviation manufacturing sector.
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