On November 12th, according to Caixin Global (Reporters Liang Xiangcai and Hu Haoqiong), with a roar reminiscent of dragons, the long-awaited second domestic stealth fighter aircraft - the J-35A, finally took its maiden flight at the 15th China International Aviation and Aerospace Exhibition (referred to as the Zhuhai Air Show) held today.

According to AVIC Shenyang Aircraft (600760.SZ), the J-35A was jointly developed and produced by the Shenyang Aircraft Design Institute, a subsidiary of Aviation Industry Corporation (AVIC), and Shenyang Aircraft Industry (Group) Co., Ltd. Experts from the China Aviation Industry Corporation have publicly stated that the J-35 series is characterized by 'multiple variants, born for both air and sea.'

Currently, AVIC Shenyang Aircraft plans to invest nearly one billion yuan in several major additional share financing projects, with the largest planned investment being the 'partial relocation and construction project' of AVIC Shenyang Aircraft, which has already made some progress.

The official debut of the J-35A 'multiple variants' brings more expectations.

At around 11:09 am on November 12th, in Zhuhai City, Guangdong Province, at the 15th China International Aviation and Aerospace Exhibition, one J-35A conducted an official flight demonstration accompanied by a roar reminiscent of dragons.

Military commentator, Master of Military Logistics, and PhD in Operational Command Bao Ming told Caixin reporters: "The significance of the first public appearance of the J-35A is significant, coupled with the previously mass-produced J-20, it demonstrates that today only China and the United States can simultaneously produce medium and heavy fourth-generation fully stealth air superiority fighter jets, fully showcasing China's advanced aviation industry research and development capabilities and production levels. The J-35A fully meets the standards of a fourth-generation (also classified as a fifth-generation) aircraft in terms of comprehensive stealth performance, avionics, fire control, informationization, and combat power generation."

Bao Ming further stated, "The J-35 is likely to develop a series of models in the future. At Hall 1 of the Aviation Expo, I saw new models of the J-35 series on the AVIC's booth, one of which had sturdy landing gear and foldable wings, indicating its future potential as a carrier-based aircraft and other types of fighter jets."

Wang Yongqing, Chief Expert of AVIC Shenyang Aircraft's China Aviation Industry Group, recently stated publicly that the J-35 series is "one aircraft, multiple types, twins in the air and at sea," with the reuse of many technologies significantly improving the maturity of key technologies, high technological maturity, high system maturity, and greatly enhancing equipment reliability. Today, we see the J-35A, indicating that we are still progressing in an orderly manner.

It is worth noting that in the aviation industry exhibition hall, there is a 1:5 scale double-seater J-20 model on display at a booth, with the J-35A and J-20S models appearing side by side in the center of the booth.

In response, Bao Ming told Caixin reporters: This indicates that the J-20 now not only has the basic model but also has a double-seater model, implying that the J-20 may become a network node for the air combat system in the future to perform command and control functions, thus fully leveraging the J-20's excellent informationized air combat capabilities.

It is understood that the J-20S is a new generation of medium to long-range, heavy, double-seater, multi-role stealth fighter independently developed by the China Aviation Industry Group, with excellent medium to long-range air combat capability, precise ground and sea strike capabilities, outstanding situational awareness, electronic countermeasures, and tactical command and control capabilities, as well as manned/unmanned drone collaborative combat capabilities.

Stock price hit a new high recently, Shenyang Aircraft Company supporting the performance "beam"

On the eve of the opening of the Zhuhai Air Show, with the early disclosure of information related to the J-35A, the secondary market reacted strongly: from November 4th to 11th, it received three consecutive limit-up trading halts, with an increase of about 35% during this period. On November 11th intraday, AVIC Shenyang Aircraft's stock price reached a historical high. As the air show opens today, AVIC Shenyang Aircraft's stock price has started to decline.

After the market closed on November 6th, avic shenyang aircraft announced in a statement on the abnormal fluctuation in stock trading that the J-35A is a new generation of medium-sized stealth multi-role fighter independently developed by China. The product is jointly developed and produced by the Shenyang Aircraft Design and Research Institute, a subsidiary of Aviation Industry Corporation of China, and Shenyang Aircraft Industry (Group) Co., Ltd.

It is reported that AVIC Shenyang Aircraft is a major contributor to avic shenyang aircraft's performance. In the full year of 2023, AVIC Shenyang Aircraft's revenue was 45.337 billion yuan, accounting for approximately 98% of the company's total; while the net profit for the same period was 2.96 billion yuan, accounting for 98.43%.

According to AVIC Shenyang Aircraft's 2023 financial report, Shenyang Aircraft Company, Yangzhou Institute, and Jihang Company are the three major controlling and participating companies of AVIC Shenyang Aircraft. Among them, Shenyang Aircraft Company is wholly owned by AVIC Shenyang Aircraft, with its main business including fighter jets (covering special aircraft types), drones, civil aviation components, aircraft maintenance, etc.

The financial report shows that AVIC Shenyang Aircraft achieved revenue of 25.298 billion yuan from January to September this year, a decrease of 26.95% year-on-year; and a net profit attributable to the parent company of 1.818 billion yuan, a decrease of 23.12% year-on-year. The company explained that this was mainly due to the impact of the progress of contract signing, as the established demand for related products did not sign contracts as scheduled.

On November 6th, Ji Ruidong, Secretary of the Party Committee and Chairman of AVIC Shenyang Aircraft, stated at a performance briefing that the company signs orders for specific users based on national defense strategic needs for aviation defense equipment models and procurement plans.

Further analysis shows that as of the end of the third quarter, in the company's cash flow statement, cash received from sales of goods and services amounted to 16.817 billion yuan, an increase of 62.94% year-on-year. Meanwhile, in the balance sheet for the same period, the contractual liabilities were 5.814 billion yuan, up 25.17% year-on-year; and inventory was 11.489 billion yuan, an increase of 21.72% year-on-year, the highest for the same period since the company's IPO.

In terms of civil aviation products, the company's products mainly consist of manufacturing civil aviation components and actively participating in the development of domestic civil aircraft. The produced structural components are used in projects such as the C919 and ARJ21.

There has been progress in the proposed private placement investment project with a total investment of over 10 billion.

Currently, AVIC Shenyang Aircraft is advancing a private placement investment project that has attracted the attention of investors.

The announcement shows that the company plans to raise 4.2 billion yuan through private placement for six major projects, with the majority of the funds going to Shenyang Aircraft Corporation. The corresponding three projects are the partial relocation and construction project of Shenyang Aircraft Corporation, the construction project of composite materials production line capacity, and the construction project of titanium alloy production line capacity, with planned investment amounts of 1.922 billion yuan, 0.486 billion yuan, and 0.355 billion yuan respectively.

Among the six projects the company plans to invest in, the relocation and construction project has the highest total investment amount of 8.636 billion yuan.

According to previous announcements by the company, the investment funds for the aforementioned relocation and construction project of 8.636 billion yuan are mainly for government relocation compensation. The total land area is approximately 4.2692 square kilometers, with a project construction period of 60 months, mainly comprising production and flight area factory buildings, site construction, and additional process equipment. This project does not generate direct economic benefits, but will lay a good foundation for future scientific research production support tasks after implementation, bringing indirect benefits to the company's business.

In fact, there has been substantial progress in the relocation and construction project. According to an announcement by AVIC Shenyang Aircraft on December 19, 2023, the company's wholly-owned subsidiary, Shenyang Aircraft Corporation, as the implementing entity of this project, has formally signed a "State-owned Construction Land Use Right Transfer Contract" with the Shenyang Natural Resources Bureau. This transfer involves an area of approximately 1.8885 square kilometers, with a transfer price of around 0.629 billion yuan.

AVIC Shenyang Aircraft has long been planning the relocation and construction project. As early as July 2019, the controlling shareholder of the company, Aviation Industry Corporation of China, signed a "Cooperation Framework Agreement on the Partial Relocation of Shenyang Aircraft Industry (Group) Co., Ltd." with the People's Government of Liaoning Province. Aviation Industry Corporation of China, Shenyang Aircraft Corporation, together with the People's Government of Liaoning Province and Shenyang City, will jointly promote the partial relocation and construction project of Shenyang Aircraft Corporation.