On March 31, 2021, the construction of Tiancheng Aviation Industrial Park (the second stage) began on schedule. The Secretary of the Party Committee of Tiantai County Yang Lingling, the Chief of Tiantai County Cui Bo, the Director of the People’s Congress Standing Committee of Tiantai County Lin Feng, the CPPCC Chairman of Tiantai County Lu Yimin, the Chairman and General Manager of our company Chen Bangrui jointly attended the groundbreaking ceremony, which was presided over by the member of the Party Standing Committee and Deputy Executive Chief of Tiantai County Chen Yijun. 

The Tiancheng Aviation Industrial Park Project is Tiantai County’s key project, which is invested and built by our subsidiary, Zhejiang Tiancheng Aviation Technology Co., Ltd. The project mainly includes the construction of a seat research and development center, a production line of key aeronautical seat parts and other interior cabin decoration production lines. 

The project will be built by three stages. The first stage is mainly to build a seat research and development center and a production line of key aeronautical seat parts with the annual output of 50 thousand sets. The second and third stages will further expand the capacity based on the first stage and develop and produce new interior cabin decorations (for kitchens and bathrooms).

The construction of the first stage began in 2019. At present, the carbon fiber composite parts of aeronautical seats, which have passed relevant product tests and obtained relevant certifications, are formally supplied to our British subsidiary Acro Aircraft Seating Ltd. in batches. The supply is a major progress for our company to carry out the strategy for the domestic production and purchase of key aeronautical seat parts and symbolizes that our company will have a head start in the business of key aeronautical seat parts in the industry.

The construction of the second stage marks that our aviation business starts rapid development and our capacity and product categories will be further improved. After the project is completed and reaches the design capacity, Tiancheng will become anindustry leading company capable of manufacturing carbon fiber parts and aluminum alloy structures suitable for aviation seats on a large scale. The smooth implementation of the project has guaranteed the sustainable growth of the future business performance in a practical way.