Securities abbreviation: Xi’An Triangle Defense Co.Ltd(300775) securities code: 300775 bonds abbreviation: triangular convertible bonds bond Code: 123114 Xi’An Triangle Defense Co.Ltd(300775)
Issuing shares to specific objects and listing on GEM
Feasibility analysis report on the use of raised funds
February, 2002
1、 Use plan of the raised funds
The funds raised from this issuance of shares to specific objects shall not exceed 3127.24 million yuan (including), and the net amount after deducting the issuance expenses shall be used for the following items:
Unit: 10000 yuan
No. project name total investment amount raised fund amount
1. Aviation Precision Die Forging Industry deepening and upgrading project 32541.27 29891.46
2 aeroengine blade precision forging project 52646.02 48868.56
3 Aviation Digital Integration Center project 70716.38 65871.33
4 Aerospace rocket body structure intelligent manufacturing project 83655.02 79128.09
5 advanced aviation parts intelligent interconnection manufacturing base project 128043.99 28964.56
6 supplementary working capital 60000.00 60000.00
Total 427602.68 312724.00
If the actual amount of the raised funds (after deducting the issuance expenses) is less than the amount of the above projects to be invested with the raised funds, within the scope of the finally determined investment projects with the raised funds, the company will adjust and finally determine the specific investment projects, priorities and specific investment amount of each project according to the actual amount of the raised funds and the priorities of the projects, The insufficient funds raised shall be raised by the company itself. Before the funds raised in this offering are in place, the company will invest in advance with self raised funds according to the actual situation of the project progress, and replace them after the funds raised are in place. 2、 Necessity and feasibility analysis of the raised funds
(I) deepening and upgrading project of Aviation Precision Die Forging Industry
1. Basic information of the project
The planned investment of the project is 325412700 yuan. The main body of the project is Xi’An Triangle Defense Co.Ltd(300775) . The construction land of the project is located in the National Aviation base in Yanliang District, Xi’an City, Shaanxi Province. The construction period of the project is 36 months. The project focuses on the introduction of small and medium-sized forging equipment, fast forging machine, heating furnace and other equipment, the construction of small and medium-sized forging production line, the improvement of the production capacity of small and medium-sized forgings, the organic combination with the company’s original medium and large forging production line, the formation of full category supporting capacity, and the improvement of the company’s overall profitability.
2. Necessity of project implementation
(1) The aviation industry has formed a development pattern of “small core and large cooperation”, and there is a strong demand for outsourcing of small and medium-sized forgings in main engine plants
China’s aviation industry chain is dominated by aviation industry group and other subordinate main engine factories, and the supporting units are mainly subordinate units of aviation industry group and supplemented by some private enterprises, forming a development pattern of “small core and large cooperation”. Under the guidance of the development idea of “small core and large cooperation” of aviation industry group, with the improvement of product standardization and scale requirements, the supporting of middle and upstream parts has gradually shifted from internal supporting to external cooperation. On the one hand, in the past, the production of structural parts, parts and even more upstream forged castings was mainly carried out by the internal factories of the main engine plant system. With the continuous expansion of the scale of the commercial aviation industry, the sensitivity of large-scale production in the modern aviation industry to cost and efficiency has increased, In the past, the supporting forms of parts independently undertaken by major main engine manufacturers have been unable to adapt to the development trend of specialization and standardization. On the other hand, the industrialization of domestic large aircraft will bring a new trillion scale market. Under the expectation of substantial expansion of supporting demand in the future, many subdivided fields will have the basis of industrialization, gradually change from the previous semi R & D production mode to modern flow production, and form a series of product type spectrum. In this context, when the external cooperation reaches the ideal state, the main engine factory will theoretically only retain the three core links of design, final assembly and flight test, and more supporting needs will gradually spread from the inside. The aviation parts business will be subcontracted in the form of external cooperation and handed over to specialized enterprises outside the system. In this context, the production of small and medium-sized forgings in the main engine plant will be mainly completed in the form of outsourcing. Aviation forgings have the characteristics of small batch, multi variety and multi specification. With the continuous expansion of aviation and other military products market, high-end civil products market and foreign trade market, the business of small and medium-sized aircraft forgings also has a broad market space.
(2) Consolidate the company’s main business, form a full category production capacity and improve the company’s sustainable profitability
The existing large and medium-sized die forging production line of the company is mainly composed of 400mn and 300MN hydraulic press, supporting 31.5MN fast forging machine and 2500mm ring rolling mill. It mainly produces die forgings with a projection area of more than 0.5m2, a forging weight of more than 200kg and rings with a diameter of more than 500mm. The existing large and medium-sized die forging production lines can not meet the production needs of small and medium-sized Aviation Precision Die Forgings, mainly because: (1) small and medium-sized aviation precision die forgings have the characteristics of many specifications and quantities of single aircraft drawing numbers. It is inefficient to produce small and medium-sized Aviation Precision Die Forgings according to the existing large tonnage forging equipment; (2) According to the existing large tonnage forging equipment to produce small and medium-sized Aviation Precision Die Forgings, the depreciation of single product equipment is high, the cost is high, the economy is poor, and there is no competitive advantage; (3) According to the existing large tonnage forging equipment to produce small and medium-sized Aviation Precision Die Forgings, the precision and allowance of the forgings are poor, the dimensional accuracy can not be guaranteed, and the economy is also poor; (4) The tonnage of the equipment does not match the size of the products produced. If large tonnage equipment is used to produce small forgings, it is easy to have problems that the microstructure and performance of forgings can not be guaranteed due to overheating, excessive deformation, long forging time and low final forging temperature. The deepening and upgrading project of aviation precision die forging industry is of great significance to promote the company to expand the market of small and medium-sized forgings. With the investment of high-end equipment, the production capacity of small and medium-sized forgings of the company will be effectively improved, so that the company has the ability to undertake various businesses such as cross industry, multi specification, large, medium and small batch, and meet the trend of customers’ demand for packaging and procurement of large, medium and small forgings, Form the full coverage supply capacity of the company’s large, medium and small precision forgings to meet the needs of the company’s long-term development.
3. Feasibility of project implementation
(1) The industrial policy is conducive to the development of the industry and provides a good policy environment foundation for the project construction
Aviation industry is an important field for the development of advanced manufacturing technology. As an important weapon of the country, aviation manufacturing industry has the typical characteristics of high-tech industry and advanced manufacturing industry. It is an important symbol of national science and technology, economy, national defense strength and industrialization level. Since the 18th National Congress of the Communist Party of China, favorable policies for the aviation manufacturing industry have been issued frequently, pushing the industry into the fast lane of development. In terms of domestic civil aircraft, the independent development of large aircraft is a national strategy and has important strategic significance. The major project of large aircraft is a major strategic decision of the CPC Central Committee and the State Council to build an innovative country, improve China’s independent innovation ability and enhance the country’s core competitiveness. It is one of the 16 major projects determined in the outline of the national medium and long term science and technology development plan (2006-2020). In 2021, in the 14th five year plan for national economic and social development of the people’s Republic of China and the outline of long-term goals for 2035, it is clear that China will focus on promoting the demonstration operation of C919 large passenger aircraft and the seriation development of ARJ21 regional passenger aircraft. The development of large aircraft industry chain is of great significance to national scientific and technological progress and scientific and technological innovation strategy. The CPC Central Committee has formulated the blueprint for the development of national defense and military equipment in the 20th century and laid down the blueprint for the development of national defense and social equipment in the 20th century, and laid down the new vision for the development of the armed forces in the 20th century, One important point is to accelerate the upgrading of weapons and equipment and the development of intelligent weapons and equipment. Various national strategic plans focus on the independent guarantee of core parts and key basic materials, improve relevant independent R & D and production capacity and manufacturing technology, and accelerate the improvement of localization level. The catalogue of major technical equipment and products supported by the state for development (revised in 2019) and other documents have successively included the development and manufacturing of aircraft and parts in the industries encouraged and supported by the state, so as to further guide the industrial transformation and upgrading. Industrial policies are conducive to the development of the industry and provide a good foundation for project construction.
For more than ten years, the company has been deeply engaged in the field of aviation forging. Relying on the advantages of 400mn large aviation die forging hydraulic press, which is the largest single cylinder precision die forging hydraulic press in the world, the company has successively broken through the “blank making technology and die forging technology of super large titanium alloy integral frame”, “forging and heat treatment technology of a titanium alloy”, “fine crystallization forging technology of an ultra-high strength steel” Key technologies such as “forging technology of a titanium alloy blisk” and “forging technology of a high temperature alloy large turbine disk” are mature and applied to large titanium alloy blisk, beam die forgings and engine blisk forgings required by the new generation of fighter and transport aircraft. The forging has high precision, difficult material processing, many new processes and technologies and complex processing technology, which represents the advanced manufacturing level in the field of aviation forging. The company has become the core supplier of major large forgings for large fuselage structural parts and engines of Chinese military aircraft.
The company has strong R & D strength, has obtained 7 invention patents and 8 utility model patents, has established “Shaanxi aviation large parts forging Engineering Research Center” and “Xi’an difficult to deform material forming engineering technology research center”, and has participated in the forging development of many in-service engines and marine gas turbines. The company’s strong technical strength and R & D strength have laid a technical foundation for the implementation of the project.
(3) The company has stable and high-quality customer resources to lay a market foundation for the implementation of the project
Since the large-scale production, the company has accumulated stable and high-quality customer resources. The main customers of the company are national defense, military and aviation enterprises or relevant scientific research institutes. They have very strict requirements on the product performance, technical level, R & D strength and production qualification of suppliers. As long as they enter the supplier system and realize large-scale production, they will not be replaced easily. The cooperative relationship between private military products manufacturing enterprises and downstream customers is very important, especially the R & D cooperation. Usually military products are customized products. From prototype to design and then to mass production, they generally need the joint participation of manufacturing enterprises and customers. This R & D relationship is more conducive to the long-term and stable cooperation between the company and customers. Over the years, with advanced technology, high-quality products and efficient services, the company has maintained a very stable and in-depth cooperative relationship with downstream customers in R & D and production. Stable customer resources have laid a solid foundation for the company’s future development.
(II) precision forging of Aeroengine Blades
1. Basic information of the project
The planned investment of the project is 526.4602 million yuan, the main body of the project is Xi’An Triangle Defense Co.Ltd(300775) , and the construction period of the project is 36 months. The project focuses on the introduction of extruder, press, heating furnace and other equipment, the construction of aeroengine blade production line, the formation of aeroengine blade production capacity, the organic combination with the company’s original medium and large forging production line, the formation of a full range of supporting capacity, and the improvement of the company’s overall profitability.
2. Necessity of project construction
(1) During the 14th Five Year Plan period, there is a large amount of aviation development, and there are opportunities for rapid development in the field of blade processing
① The large volume of military aircraft and the increase in the consumption of military training and war preparation have double boosted the air launch market
China’s “14th five year plan” points out that “we will achieve the Centennial goal of building the army by 2027”. On August 18, the people’s daily issued a document entitled “we must accelerate the modernization of national defense and the army”. In the future, the upgrading of Chinese fighters and the acceleration of train loading will boost the prosperity of the military aeroengine market. At the same time, as a consumable, the demand for Aeroengines will further expand under the background of the large increase in the training volume of “military training and preparation” troops. Caixin securities predicts that the market space of China’s military aeroengine will be about 47.1-53.4 billion yuan in 2021. The total scale of China’s military aeroengine market from 2021 to 2027 will be about 492.7 billion yuan, with an average annual compound growth rate of 10.2%.
② Domestic substitution is imperative, and a breakthrough is expected during the 14th Five Year Plan period
Aeroengine is the guarantee of national security and strategy. The key product technology must not be controlled by others. Independent research and development is the inevitable choice. At present, about 20% of China’s military aeroengines still need to be imported. It is expected that the breakthrough of relevant models will be completed during the 14th Five Year Plan period. It is expected to start mass production during the 15th Five Year Plan period. At that time, it will fully replace imported engines. The long-term dependence of China’s advanced aeroengine models on imports will become history.
③ The implementation of the “two aircraft project” and the establishment of China aero engine group have brought major historical opportunities
The central government and the State Council approved the establishment of the national major science and technology project of “aeroengine and gas turbine” (the “two aircraft project”), and China’s aeroengine industry ushered in a major historical opportunity. The implementation of the “two aircraft project” provides strong support in terms of policies, funds and resources for the development of aeroengines. By the end of 2020, the investment of “two special projects” has reached 300 billion yuan. China’s aero-engine development has been carried out jointly with aircraft development for a long time, but the development cycle of aero-engine is much longer than that of aircraft. The “separation of flight and engine” is important and urgent. The establishment of China aero-engine group in 2017 made China’s aero-engine move towards the road of independent development. Recently, the construction project of the third generation medium thrust aeroengine production line in Guiyang of China Aviation Development Group passed the completion acceptance, and the 160500 square meter Aviation Power Industrial Park in Zhuzhou was put into use. With the strong support of policies and funds, China’s aeroengine and gas turbine technology is accelerating to catch up with the world’s advanced level and achieve a historic leap.
（2）
