Securities code: 002985 securities abbreviation: Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) Announcement No.: 2022-003
Beijing Beimo High-Tech Frictional Material Co.Ltd(002985)
Announcement on signing aviation material procurement agreement for civil aviation aircraft
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Signing of the agreement
In order to promote the application of CAAC PMA parts, i.e. domestic carbon composite brake discs, HNA Aviation Technology Co., Ltd. and Yunnan Xiangpeng Aviation Co., Ltd. (hereinafter referred to as “Xiangpeng aviation”) jointly established a project team to carry out the engineering application evaluation of PMA carbon composite brake discs from qualified manufacturers in China. After quality system review, technology, safety assessment, and multiple assessment and verification of installed flight, Beijing Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) friction materials Co., Ltd. (hereinafter referred to as “the company”) has passed the assessment, verification and evaluation of carbon carbon composite brake discs, and signed a ten-year aviation material procurement and supply agreement, which will take effect from January 1, 2022.
2、 Impact of the agreement on the company
(i) It accelerates the replacement of domestic carbon carbon composite brake discs
Aircraft brake disc assembly is related to the safety of aircraft take-off, landing and taxiing. It is one of the most critical components for aircraft braking and ensuring safe flight. At the same time, the brake disc assembly has a certain service life. It needs to be replaced if it meets a certain number of take-off and landing times. It belongs to consumables. At present, China’s civil aviation braking field is monopolized by foreign giants. European and American developed countries have the first mover advantage in technology, and the products are relatively mature. The leaders are Honeywell of the United States, B.F. Goodrich, Messier Bugatti of France, Dunlop of the United Kingdom and other enterprises. Under the background of European and American countries’ blockade and upgrading of China’s science and technology field, the domestic substitution and independent and controllable demand of civil aviation aircraft supporting industry may be more urgent.
The company actively participated in the localization process of imported civil aviation aircraft brake discs as early as the early stage of its establishment. It is also the birthplace of China’s first set of imported aircraft brake discs. The signing of this agreement marks the company’s formal entry into the civil aviation aircraft material replacement supply chain system of domestic airlines, breaking the long-term monopoly of foreign giants in the field of braking and accelerating the replacement of domestic carbon carbon composite brake discs.
（2） Civil aviation business is expected to become a new performance growth point of the company
According to the statistical bulletin on the development of civil aviation industry in 2020 issued by the Civil Aviation Administration of China in June 2021, by the end of 2020, there were 3903 registered aircraft in the whole civil aviation industry at the end of the period. In 2020, the whole industry transport Airlines completed 3.7109 million take-off sorties. According to the first two data estimates, in 2020, each civil aviation transport aircraft will take off and land an average of 950.78 times a year (3710900 / 3903).
Table 1: number of transport aircraft in 2020
Source: statistical bulletin on the development of civil aviation industry in 2020
According to the flight observer website (www.planespotters. Net.) According to statistics, as of December 29, 2021, the number of active aircraft of China’s four major airlines, including affiliated subsidiaries, China Aviation Group, China China Southern Airlines Company Limited(600029) group, China Eastern Airlines Group and Hainan Airlines Group, were 887, 875, 768 and 640 respectively.
Looking forward to the future, according to the civil aircraft market forecast in China (2021-2040) released by AVIC, it is estimated that China will need to supplement 7646 civil airliners from 2021 to 2040, including 1561 wide body airliners, 5276 narrow body airliners and 809 regional airliners.
To sum up, both the existing stock of Chinese civil aircraft and the future increase of Chinese civil aircraft will bring a large civil aircraft material replacement market. The company has made strategic and forward-looking investment and layout in capital expenditure and production capacity, and will further strengthen the pace of industrialization of civil aviation business in the future. Civil aviation business is expected to become an important performance growth point of the company in the future.
（3） Future strategic planning in the field of Civil Aviation
The company’s long-term development strategy is “leading military products, expanding civilian products, military civilian integration and serving the country through industry”. The future strategic planning in the field of civil aviation mainly includes the following aspects:
First, in the post market of CAAC aircraft, the company will expand horizontally to other large passenger aircraft of CAAC in the future. Shaanxi Lantai Aviation Equipment Co., Ltd. (hereinafter referred to as “Shaanxi Lantai”), the holding subsidiary of Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) , is the first private enterprise in China to produce carbon brake discs for imported aircraft. At present, it is also the enterprise with the largest and most complete PMA licenses in China (including A330 wide body airliner). The company will continue to integrate Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) and 8 PMA qualifications of Shaanxi Lantai aircraft brake discs, Strive to open the door of aviation material supply of major airlines;
Second, in terms of civil aviation maintenance, there is still a large gap between the aircraft component maintenance capacity of China’s civil aviation maintenance industry and the international advanced level. According to the 2020 China civil aviation maintenance market analysis report – industry in-depth analysis and development trend research released by guanyantianxia, in recent years, China has become the fastest-growing civil aviation maintenance market in the world. It is expected that the scale of China’s aviation maintenance market will be close to US $10 billion by 2022. The company’s wholly-owned subsidiaries, Shanghai kaiben Aviation Technology Co., Ltd., Zhengding branch, Shaanxi Lantai and other three companies with civil aircraft maintenance qualification, including the repair and maintenance of brakes and hubs of Boeing and Airbus aircraft, with a total maintenance capacity of 16 models and 67 parts, which has laid a foundation for the development of enterprises in the civil aviation market.
3、 Risk tips
The company will actively implement the matters agreed in this Agreement and timely perform the corresponding decision-making procedures and information disclosure obligations in accordance with the requirements of relevant laws and regulations. The final realizable sales revenue of the company shall be subject to the actually completed order amount. Investors are kindly requested to make prudent decisions and take precautions against investment risks.
It is hereby announced.
Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) board of directors
January 4, 2022
