On June 19, 2024, Cirrus Aircraft Limited, headquartered in Minnesota, USA, disclosed its prospectus after the hearing on the Hong Kong Stock Exchange, and may soon be listed on the main board in Hong Kong. It submitted its prospectus on June 8, 2023, and failed to pass the hearing on November 15, 2023, then re-applied on March 6, 2024.
Link to the West Rui Aircraft prospectus after listening:
https://www1.hkexnews.hk/app/sehk/2024/106278/documents/sehk24061900977_c.pdf
Main Business
West Rui Aircraft, established in 1987, was merged and acquired by AVIC General Aviation in June 2011. The company designs, produces and sells single-engine aircraft, and according to Foster Sullivan's data, West Rui Aircraft is a pioneer and global market leader in the private aviation industry, with a 32% market share in the global private aviation market based on the number of aircraft delivered in 2023. Its two aircraft product lines, the SR2X series and Vision Jet, have established the industry standard for owner-piloted aircraft, and are certified and validated in more than 60 countries. Since its inception, as of February 29, 2024, West Rui Aircraft has delivered over 9,500 SR2X series aircraft and over 500 Vision Jets, and the company has 1,383 aircraft in reserve.
SR2X Series The SR2X series includes entry-level aircraft SR20, SR22, SR22T, and the series of aircraft can generally carry up to four adults and one child. According to the General Aviation Manufacturers Association's data, the SR2X has been the best-selling single-engine piston aircraft model for the past 21 years. Vision Jet The Vision Jet offers significantly enhanced performance, capabilities and specifications for different and higher-end markets in the private aviation industry and is typically able to carry up to five adults and two children. According to data from the General Aviation Manufacturers Association, since its first delivery in 2016, the Vision Jet has been the best-selling jet under $7 million for five consecutive years.
SR2X Series
The SR2X series includes entry-level aircraft SR20, SR22, SR22T, and the series of aircraft can generally carry up to four adults and one child.
According to the General Aviation Manufacturers Association's data, the SR2X has been the best-selling single-engine piston aircraft model for the past 21 years.
Vision Jet
The Vision Jet offers significantly enhanced performance, capabilities and specifications for different and higher-end markets in the private aviation industry and is typically able to carry up to five adults and two children. According to data from the General Aviation Manufacturers Association, since its first delivery in 2016, the Vision Jet has been the best-selling jet under $7 million for five consecutive years.
West Rui Aircraft is equipped with the patented West Rui whole-aircraft parachute system on each aircraft, which has saved more than 250 lives since its introduction in 1999. West Rui Aircraft also set the safest accident record in the U.S. General Aviation sector. According to Foster Sullivan's data, the company's total accident rate per 100,000 flight hours is three times lower than the average for the general aviation industry.
The Vision Jet launched by West Rui Aircraft is equipped with and will be equipped with the Safe Return system (emergency autoland system), which allows passengers in the cabin to land safely with just a push of a button when the pilot is incapacitated. The company's safety innovations far exceed many active and passive mitigation measures for different situations, including loss of control, mid-air collision, pilot incapacitation, engine power loss, flight into terrain, adverse weather conditions, and runway incursion.
As of December 31, 2023, West Rui Aircraft has sold aircraft to customers in 44 countries and has 242 authorized service centers worldwide.
In addition to aircraft sales, the company also provides various other auxiliary products and services, including but not limited to aftermarket parts sales, service sales, warranty sales, training sales, and revenue from related parties.
Shareholder Structure
The prospectus shows that in the shareholder structure of West Rui Aircraft before listing, AVIC General Aviation holds 100% through AVIC General Aviation Hong Kong. The shareholdings of AVIC General Aviation are as follows:
Aviation Industry Corporation of China Limited, holding 70%;
Guangdong YUECAI Investment Holdings Co., Ltd., holding 14%;
Guangdong Hengjian Investment Holdings Co., Ltd., holding 10%;
Zhuhai Gree Aviation Investment Co., Ltd., holding 6%.
Board of directors and executives
The board of directors of West Rui Aircraft consists of nine directors, including:
Two executive directors: Mr. Wang Hui (Vice Chairman of the Board) and Mr. Zean Hoffmeister Vang NIELSEN (CEO);
Four non-executive directors: Mr. Yang Lei (Chairman of the Board), Mr. Song Qingchun, Mr. Liu Liang, and Mr. Li Yihui;
Three independent non-executive directors: Mr. Zhang Renhe, Mr. Liu Zhongwen, and Ms. Ferheen MAHOMED (alias: Ma Yingxin).
In addition to the executive directors, the senior management includes Mr. Patrick Christopher WADDICK (President and COO of Innovation and Operations), Mr. William Todd SIMMONS (President of Customer Experience), and Mr. George James LETTEN IV (CFO and Executive Vice President).
Corporate Performance
According to the prospectus, in the past three fiscal years of 2021, 2022, and 2023, the revenue of Cirrus Aircraft was USD 738 million, USD 894 million, and USD 1.068 billion respectively, and the corresponding net income was USD 72.403 million, USD 88.076 million, and USD 91.143 million.
Intermediary Team
The underwriting team for this IPO of Cirrus Aircraft includes china international capital corporation as its exclusive sponsor, PwC as its auditor, Jiayuan, Allen Overy Shearman Sterling as its Chinese, Hong Kong and US lawyers respectively, King & Wood Mallesons, Slaughter and May as its brokerage Chinese, Hong Kong and US lawyers respectively, and Frost & Sullivan as its industry consultant.