Xinchen China Power Holdings Limited (“Xinchen China Power,” stock code: 1148) announced that on 27 November 2025, its wholly-owned subsidiary Mianyang Xinchen Engine Co., Ltd. entered into a strategic cooperation agreement with Sichuan Hongpeng Aviation Aerospace Equipment Intelligent Manufacturing Co., Ltd. The collaboration focuses on designing, developing, and commercializing aircraft piston engines, leveraging each party’s respective expertise in automotive engine manufacturing, aircraft engine modification, testing, and airworthiness certification.

According to the agreement, Mianyang Xinchen will first supply specific engine models for the strategic partner to modify into non-airworthy aircraft piston engines. In the subsequent stage, the parties plan to apply further modifications to meet airworthiness standards. Based on the results of these first two stages, the parties may jointly establish a venture dedicated to designing, manufacturing, and devising market strategies for aircraft piston engines.

The strategic partner specializes in civil aircraft and rocket engine technology, with capabilities in design, manufacturing, testing, FADEC control systems, engine matching, and airworthiness certification. The alliance is expected to enable a fast-track entry into the high-barrier aircraft industry and support the parties' broader vision of expanding into aviation power systems while maintaining stable order sources and strengthening their presence in both domestic and international markets.