AVIC XAC has unveiled its ambitious strategy to issue A-shares to a select group of investors, a maneuver that will maintain its existing controlling shareholder and actual controller intact. The proceeds from this issuance will be earmarked for a series of pivotal projects, encompassing the R&D and capacity expansion of both military and civil aircraft, bolstering after-sales service frameworks, elevating international subcontracting capabilities, and enhancing the production prowess of aerospace composite materials and metal structural components.

The quantum of shares earmarked for issuance will be capped at no more than 30% of the pre-issuance total share capital. The execution of this issuance blueprint necessitates the green light from the board of directors and the shareholders' assembly, along with the requisite endorsement from the state-owned assets supervision and administration authority. Furthermore, it must successfully navigate the scrutiny of the Shenzhen Stock Exchange and secure registration with the China Securities Regulatory Commission. Consequently, the plan is imbued with inherent uncertainties.