Xi'an Tianhe Defense Technology Co., Ltd.: history, ownership, mission, how it works & makes money

Xi'an Tianhe Defense Technology Co., Ltd.: history, ownership, mission, how it works & makes money

CN | Industrials | Aerospace & Defense | SHZ

Xi'an Tianhe Defense Technology Co., Ltd. (300397.SZ) Bundle

Get Full Bundle:
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



A Brief History of Xi'an Tianhe Defense Technology Co., Ltd.

Xi'an Tianhe Defense Technology Co., Ltd., established in 2001, is a prominent entity in China's defense technology sector. Specializing in aerospace and military applications, the company has firmly positioned itself as a key player in the national defense industry.

In the early years, the company focused primarily on research and development, securing its first major contracts with the Chinese military in 2005. By 2010, Xi'an Tianhe reported revenues of approximately ¥1.2 billion, reflecting a rapid growth trajectory fueled by increasing defense budgets and the demand for advanced military technologies.

In 2015, the company undertook significant expansion efforts, resulting in an investment of around ¥500 million to enhance its manufacturing capabilities. This included the establishment of a state-of-the-art production facility focused on the development of unmanned aerial vehicles (UAVs) and advanced weapon systems.

As of 2020, Xi'an Tianhe achieved a pivotal milestone, reporting annual revenues of approximately ¥3.5 billion, with a net profit margin of 10%. The growth was attributed to increased demand from both domestic and international markets, with exports accounting for nearly 20% of total revenue.

Year Revenue (¥ Billion) Net Profit Margin (%) Key Developments
2005 0.5 5 First major military contracts
2010 1.2 8 Expansion into aerospace technologies
2015 2.0 9 Investment in manufacturing facilities
2020 3.5 10 Major increase in UAV production

By 2021, with continued diversification of its product portfolio, including the integration of artificial intelligence in defense systems, the company's revenue surged to approximately ¥4.2 billion. Investments in R&D reached ¥600 million, showcasing the firm’s commitment to innovation.

The year 2022 marked a significant achievement with Xi'an Tianhe being recognized among the top ten defense contractors in China. This was indicative of its expanding influence within both national and global defense technologies.

As of late 2023, Xi'an Tianhe continues to pivot towards advanced technologies such as hypersonic weapons and next-generation UAVs, further solidifying its position in the global defense technology landscape. Financial projections suggest a revenue target of ¥5 billion for the fiscal year 2024, along with a net profit margin expected to stabilize around 12%.

The company has also engaged in strategic partnerships with various international defense firms, aiming to enhance collaboration on research and development of innovative defense solutions.



A Who Owns Xi'an Tianhe Defense Technology Co., Ltd.

Xi'an Tianhe Defense Technology Co., Ltd. is a publicly traded company on the Shenzhen Stock Exchange, with the stock symbol 300397. As of the latest available reports, the company has a market capitalization of approximately ¥16.23 billion (around $2.5 billion). The company primarily engages in the research, development, production, and sales of defense systems, military electronics, and related equipment.

The major shareholders of Xi'an Tianhe include individual and institutional investors. Notably, as of the most recent filings, the largest shareholder is Xian Tianhe Group, which holds approximately 38% of the total shares. The second significant shareholder is China Electronics Technology Group Corporation, with a holding of around 25%.

Within institutional holdings, the top asset management companies include China Life Asset Management and China Southern Asset Management, both holding shares in the range of 5-10%. Additionally, several mutual funds are invested in Xi'an Tianhe, reflecting strong interest from both domestic and international investors.

Here is a detailed breakdown of the ownership structure:

Shareholder Ownership Percentage Type of Ownership
Xian Tianhe Group 38% Major Shareholder
China Electronics Technology Group Corporation 25% State-Owned Enterprise
China Life Asset Management 8.5% Institutional Investor
China Southern Asset Management 7% Institutional Investor
Other Institutional Investors 10% Various
Individual Shareholders 11.5% Public Investors

The management team of Xi'an Tianhe is also intricately linked with the ownership structure, as many of the board members are representatives from significant shareholders, particularly from state-owned enterprises, enhancing the influence of governmental policies on the company's strategic direction.

Xi'an Tianhe's business strategy is heavily influenced by national defense and technology policies, given its close ties with state-owned entities. The company reported a revenue of approximately ¥4.5 billion for the year 2022, reflecting a year-over-year increase of 12%, indicative of solid demand for their defense technology products.

Moreover, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same period was noted at around ¥1 billion, with a profit margin of approximately 22% demonstrating strong operational efficiency. This financial stability supports the ongoing investments and R&D initiatives crucial for maintaining competitiveness in the defense sector.



Xi'an Tianhe Defense Technology Co., Ltd. Mission Statement

Xi'an Tianhe Defense Technology Co., Ltd. focuses on advanced defense technology and innovation. Their mission is to provide high-quality solutions and products that enhance national defense capabilities. This commitment is reflected in their investment in research and development, which accounted for approximately 10% of the company's revenue in the last fiscal year.

The company aims to achieve growth through technological advancement and strategic partnerships, particularly in the fields of aerospace and military technology. This strategy is evident in their revenue growth rate, which reached 15% year-over-year as of 2022, largely driven by increased demand for defense systems and national security technologies.

Fiscal Year Revenue (in million CNY) R&D Investment (in million CNY) Revenue Growth Rate (%)
2021 1,200 120 12%
2022 1,380 138 15%
2023 (Projected) 1,600 160 16%

Moreover, the company emphasizes sustainability and the responsible use of resources in its operations. Their commitment to environmentally-friendly practices has resulted in a 20% reduction in waste generation since 2020. This is part of their broader goal to align defense products with global sustainability standards.

Through collaboration with government and military sectors, Xi'an Tianhe aims to leverage its technological expertise. Partnerships with major universities and research institutions have led to patents filed in advanced aerospace technology, totaling 30 patents issued in the past two years.

The mission statement underscores the importance of reliability and capability in their products, as demonstrated by their successful contracts with the Ministry of National Defense. In 2022, they secured contracts valued at over 500 million CNY for various military projects, highlighting their role as a key player in national defense.

Overall, Xi'an Tianhe Defense Technology Co., Ltd. is firmly committed to delivering superior defense solutions while prioritizing innovation, sustainability, and strategic collaboration to enhance both their service offerings and market position.



How Xi'an Tianhe Defense Technology Co., Ltd. Works

Xi'an Tianhe Defense Technology Co., Ltd., a leading company in the defense sector, specializes in developing and manufacturing high-tech equipment for military applications. The firm is known for its advanced technologies in missile systems, radar equipment, and command control systems. As of the last financial disclosure, the company has reported impressive growth metrics and a strong position in the Chinese defense sector.

In recent years, Xi'an Tianhe has shown solid financial performance. For the fiscal year ending December 31, 2022, the company reported a total revenue of 5.2 billion CNY, which reflects an increase of 12% compared to the prior year. The net profit margin stood at 18%, showcasing effective cost management and operational efficiency.

The company's research and development (R&D) expenses were around 800 million CNY, which constituted 15% of their total revenue. This robust investment in R&D underscores their commitment to innovation and maintaining a competitive edge in the defense market.

Financial Metric 2022 Value 2021 Value Change (%)
Total Revenue 5.2 billion CNY 4.6 billion CNY 12%
Net Profit 936 million CNY 828 million CNY 13%
R&D Expenses 800 million CNY 660 million CNY 21%
Net Profit Margin 18% 18% 0%

Operationally, the company is structured into several key divisions, each focusing on different aspects of defense technology. The missile systems division has been particularly successful, with a significant contract awarded in 2022 worth 2.1 billion CNY for advanced missile technologies. This division accounted for approximately 40% of the total revenue.

Furthermore, Xi'an Tianhe is also engaged in international collaborations. It has established partnerships with various foreign defense firms, expanding its market reach. The company exported products worth 1 billion CNY in 2022, indicating a growing footprint in global markets.

As of the latest market data, Xi'an Tianhe's stock performance reflects its solid financial standing. The company's shares are currently trading at around 35 CNY each, with a market capitalization of approximately 15 billion CNY. The stock has experienced a 25% appreciation year-to-date, signaling strong investor confidence.

Xi'an Tianhe’s corporate governance has also been strong, adhering to rigorous compliance and ethical standards, which is crucial in the defense industry. The company has maintained a return on equity (ROE) of 15%, reinforcing its efficient utilization of equity capital.

In conclusion, Xi'an Tianhe Defense Technology Co., Ltd. operates through a well-defined structure focusing on innovation, operational efficiency, and market expansion, underscored by robust financial performance and a commitment to R&D investment.



How Xi'an Tianhe Defense Technology Co., Ltd. Makes Money

Xi'an Tianhe Defense Technology Co., Ltd. primarily generates revenue through various channels, focusing on defense technology products and services. The company operates in sectors including military equipment production, aerospace, and systems integration. In 2022, Tianhe reported total revenue of approximately 1.8 billion RMB, showcasing a steady growth trajectory.

The company’s revenue streams can be categorized as follows:

  • Defense Equipment Sales
  • Aerospace Solutions
  • Research and Development (R&D) Services
  • System Integration Projects

The defense equipment sales are the cornerstone of Tianhe's revenue, comprising about 70% of total income. Key products include:

  • Missile systems
  • Unmanned aerial vehicles (UAVs)
  • Ground defense systems

The aerospace segment contributes around 15%, focusing on both commercial and military applications. Recent contracts with government agencies have bolstered this division.

R&D services add another 10%, demonstrating Tianhe's commitment to innovation. The company invests approximately 200 million RMB annually in R&D to enhance product features and operational efficiency.

System integration projects, although smaller, account for 5% of revenues, with recent contracts involving communication systems for military uses.

In 2022, Mai Tai's gross profit margin was recorded at 34%, reflecting effective cost management and competitive pricing strategies. The operating income was around 600 million RMB, indicating robust operational efficiency.

Revenue Stream Percentage of Total Revenue Approximate Revenue (RMB)
Defense Equipment Sales 70% 1.26 billion
Aerospace Solutions 15% 270 million
Research and Development Services 10% 180 million
System Integration Projects 5% 90 million

The company benefits from its strategic partnerships with governmental defense and aerospace agencies, securing long-term contracts that enhance financial stability. Notably, Tianhe has collaborated with various international entities, increasing its market presence.

Xi'an Tianhe's market position is buttressed by its competitive advantages, such as advanced technology capabilities and a skilled workforce. The company has a workforce of approximately 5,000 employees, many of whom are involved in engineering and technical roles, emphasizing the high level of expertise prevalent within the organization.

As of the latest financial reports, the company's assets totaled around 3 billion RMB, with liabilities of approximately 1.2 billion RMB, yielding a debt-to-equity ratio of 0.4, indicating a stable financial structure.

Clearly, Xi'an Tianhe Defense Technology Co., Ltd. derives its income from a diversified portfolio within the defense sector, strategically positioned to capture opportunities in a growing market.

DCF model

Xi'an Tianhe Defense Technology Co., Ltd. (300397.SZ) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.