Military business of Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd(成都裕鸢航空智能制造股份有限公司)

Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd(成都裕鸢航空智能制造股份有限公司) is mainly engaged in the processing and manufacturing of aviation parts, and its products include military & civilian parts for aircraft & aero-engine parts and gas turbine parts.



According to prospectus, capacity utility rate of Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd had been over 79% from 2019 through 2021,increasing year by year . Complete financial year: January 1st to December 31st in China as stipulated by PRC accounting law.

Cash paid to acquire property,plant and equipment was 58,947,829.44 in 2019, 59,415,513.27 in 2020,82,375,128.07 in 2021,  71,374,915.98 January to June 2022. 

Revenue of Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd arisi60ng from aircraftbody structure increased 4.6 times in 2020 over 2019 and 60% in 2021 over 2020 and is expected to keep increase trend in 2022 (6788.13×2>13244.02, currency unit: Renminbi/CNY ten thousand)

Cash from sales of goods and rendering of services 56,253,293.23 in 2019, 115,140,017.18 in 2020 by 105%, 198,713,105.23 in 2021 by about 73%, 93,067,596.11 in January to June of 2022.

The amount that the delivery comes first and the contract is signed later

27.2819 million in 2019, 59.2744 million in 2020, 40.2181 million in 2021 and 11.0778 million in January-June 2022.

Customer Name                 Goods Sold               Date of signoff Amount 

Subsidiaries of Aero Engine Corporation of China中国航空发动机集团有限公司    

                        turbo rear case assembly     2020.01.01    9.8 million                              A compressor test piece      2020.06.07   5.5 million

                       The second round of air intake     2020.11.02  5.18 million

                     simulation device trial production
        Improvement program processing of afterburner parts 2021.01.27 5.18 million

completed
      A certain type of low-emission combustion chamber case 2022.02.18 7.8 million

Subsidiaries of Aviation Industry Corporation of China中国航空工业集团有限公司 

                          A project parts 84 items  2020.10.15 22.0678 million

                         A project parts 125 items  2020.10.15 23.962 million

                         A project parts 127 items  2020.10.15 22.8377 million

                         A project parts 182 items  2021.05.25 204.7542 million                             A project parts 68 items  2022.03.15 6.2713 million

not completed

Li-Tao Liang梁丽涛, Independent Director thereof, was Chief of Military Standardization Research Center of Basic Bureau of Electronic Information Technology of CCP Army's General Armament Department (总装备部电子信息技术基础局军用标准化研究中心) from July 2007 to September 2016. September 2017 to September 2018, Li-Tao Liang was Director & CEO of Zhong Tian Ze Intelligent Equipment Co Ltd中天泽智能装备有限公司 or Zhongtianze Intelligent Equipment Co., Ltd that owned patents on drone warfare. She is now the Director of Xi'an Rongjun General Standardization Research Institute Co ltd 西安融军通用标准化研究院有限责任公司, Director member of Disaster Reduction Industry Integration Professional Committee of China Association for Disaster Prevention中国灾害防御协会减灾产业融合专业委员会,Director member of the Group Standards and Certification Committee of CHINESE SOCIETY OF AERONAUTICS AND ASTRONAUTICS中国航空学会团体标准与认证委员会, Director of Beijing Semboo Science & Technology Co., Ltd北京翔博科技股份有限公司, Chairwoman and CEO of Hujie (Beijing) Technology Development Co., Ltd.琥捷（北京）技术发展有限公司 and member of National Technical Committee 307 on Emergency Management and Disaster Reduction and Response of Standardization Administration of China全国应急管理与减灾救灾标准化技术委员会.

Yong-Tao Liu (刘勇涛), The Chairman of Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd is also the Supervisor of Beijing Sen Sen Gas Turbine Engineering Technology Co Ltd北京康吉森燃机工程技术有限公司, renamed to Beijing Consen Automation Technology Co., Ltd北京康吉森自动化技术股份有限公司 afterwards which has strategic cooperation with Siemens，Schneider Electric,etc and controls 70% China Turbomachinery Control Market.

Yuan-Bin Li李元斌, the Employee Supervisor of Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd,had been squad leader of in the state-owned Zhujiang Machinery Factory of China Aerospace Science and Technology Corporation (中国航天科技集团公司国营竹江机械厂) from March 1993 to February 2006. As of 30th June 2022 and 31st December 2022,Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd had order in process of RMB132.7 thousand and RMB 920 from China Aerospace Science and Technology Corporation of turbine engine case for A59 bombs,combustion chamber, exhaust nozzle assembly and unit body.

Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd may have used lease as a method of buying items for aviation purpose sanctioned by USA. Usually lease includes direct lease and sales & leaseback.8 gantry machining centers contract amount 7.0764 million (Contract No.L20B107569002)and 4 horizontal machining centers contract amount 8.5388 million (Contract No.L20B107569005)have been rented from Haitong Unitrust International Financial Leasing Co., Ltd(海通恒信国际融资租赁股份有限公司) for 36 months commencing from 23rd December 2020. The contracts were treated as financial lease contract by the issuer.

Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd may have used agent import and export to evade US sanctions.Based on list of contracts diclosed,it procured from Sumec International Technology Co., Ltd(苏美达国际技术贸易有限公司) the following equipment: CNC gantry five-axis machining center $760,000 signoff date 2019.02.19;Vertical Machining Center €580,000 signoff date 2019.08.26; Five-axis machining center 120 million yen 2019.12.10;Five-axis machining center USD 795,000 2020.01.08;High-speed five-axis vertical machining center €618,000 2020.03.30;High-speed five-axis vertical machining center 1.04 million euros 2021.05.28.All have been completed.

Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd signed procurement contract of steel structure materials for the intelligent aviation parts production base project RMB 24.20 million 2021.09.30 from Butler (Shanghai) INC (巴特勒（上海）有限公司),wholly owned by GLOBAL BMC(MAUR ITIUS) HOLDINGS LIMITED,directors GERALD VAROKA CORNELIUS,Dimitrios Mitsonis and Xu Huang (黄旭),supervisor Wayne Armour.

Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd bought three-axis machining center of Ningbo Haitian Precision Machinery Co.,Ltd宁波海天精工股份有限公司 and Neway CNC Equipment (SuZhou) Co., Ltd纽威数控装备（苏州）股份有限公司, five-axis machining center of GF Machining Solutions Limited乔治费歇尔精密机床（上海）有限公司 soly owned by Agie Charmilles China (HK) Limited.Ningbo Haitian Precision Machinery Co.,Ltd said that in 2021, the top ten countries and regions of China's metal processing machine tool import sources accounted for 93.6% of the total import value. Among them, Japan, Germany and Taiwan ranked the top three in turn, and the total amount of the three accounted for more than 70%. Imports from Japan increased by 32.7% year-on-year. Except for Singapore, the top ten countries and regions of import sources all showed a year-on-year growth trend.

NewayCNC(USA), INC is a wholly owned subsidiary of Neway CNC Equipment (SuZhou) Co., Ltd in Texas. Neway CNC Equipment (SuZhou) Co., Ltd held 50% shareholding in joint venture Solex Company Limited for machine tool manufacturing in Russia.

Yanchang and Shell (Sichuan) Petroleum Company Limited延长壳牌（四川）石油有限公司 operating gas station business and supporting sales of other petroleum products (including lubricating oil), providing vehicle repair, maintenance, cleaning, food, wine, daily sundries and other comprehensive retail and supporting catering services in gas stations,providing external technical and management services related to the operation of gas stations, and sell gas station related equipment in China, is also a supplier.

Chengdu Yuyuan Aviation Intelligent Manufacturing Co.,Ltd leased land in Baidian Village and Chujia Village, Xindu Street, Xindu District, Chengdu(成都市新都区新都街道白店村、褚家村) with certificate number Chuan (2021) Xindu District Real Estate No. 0062911(川（2021）新都区 不动产权第 0062911号) from Chinese Communist Party，usually regarded as buying land use rights despite essence of lease transaction. Chinese Communist Party has never allowed any Chinese citizens or persons to buy land with ownership.

The company rented plant and offices in the following addresses:

10,672m2 plant in No. 18, Xingong Avenue, Xindu Industrial Zone, Chengdu (No. 2 and No. 3 workshops)成都市新都工业区新工大道 18 号（2 号、3 号车间）leased from 四川省西核机电设备制造有限公司Sichuan Xihe Nuclear Mechanical & Electrical Equipment Manufacturing Co., LTD aka SICHUAN WESTERN NUCLEAR ELECTROMECHANICAL EQUIPMENT MFT CO LTD or Sichuan Western Nuclear Electromechanical Equipment Manufacture Co ltd

8,500m2 plant in No. 9 Shunfei Road, Shibantan Town, Xindu District, Chengdu成都市新都区石板滩镇顺飞路 9 号 leased from 成都市新都香城建设投资有限公司Chengdu Xindu Xiangcheng Construction Investment Co Ltd. 

Peers:

成都爱乐达航空制造股份有限公司Chengdu ALD Aviation Manufacturing Corporation is mainly engaged in the precision manufacturing of military and civil aircraft parts, aero-engine parts and aerospace large-scale structural parts, and has the full-process manufacturing capability of aviation parts.

成都立航科技股份有限公司Chengdu Lihang Technology CO.,LTD conducts extensive business around the production, maintenance and support of aircraft. It specializes integrating R&D, design, manufacturing and sales of aircraft ground support equipment, aircraft experiment and testing equipment, aircraft process equipment, aircraft parts processing and aircraft parts assembly. , design, manufacture and sales as one of the enterprises，based on the aviation field, 

广联航空工业股份有限公司Guanglian Aviation Industry Co.,ltd focuses on the R&D, production and manufacturing of high-end aerospace equipment, and is a well-known domestic supplier of supporting products for the private aerospace industry. The company's products cover military and civilian fields, mainly aviation tooling, aerospace parts and drone products, among which the processing and manufacturing technology of composite material process equipment, parts and sections is at the advanced level in the industry.

江苏迈信林航空科技股份有限公司Jiangsu Maixinlin Aviation Science And Technology Corp.is mainly engaged in the research and development, production and sales of aerospace core components, and expands related manufacturing technologies to weapons, ships, electronics, automobiles, semiconductors and other fields.

无锡航亚科技股份有限公司WUXI HYATECH CO.,LTD is mainly engaged in the R&D, production and sales of key components of aero-engines and medical orthopedic implant forgings. The main products include compressor blades, rotating parts and structural parts of aviation turbofan engines ( Integral blisks, casings, turbine disks and compressor disks, rectifiers, rotor components, etc.), medical orthopedic implant forgings and other high-performance components.