Financial Performance - The company's revenue for the year ended December 31, 2018, was RMB 35.153 billion, representing a growth of 7.84% compared to RMB 32.597 billion in 2017[6]. - The profit attributable to equity holders of the company was RMB 1.288 billion, an increase of 5.40% from RMB 1.222 billion in the previous year[6]. - The total assets of the company reached RMB 86.720 billion, up from RMB 78.933 billion in 2017, marking a growth of 9.93%[7]. - The gross profit margin for 2018 was 22.12%, slightly down from 22.84% in 2017, indicating a decrease of 0.72%[6]. - Operating profit for 2018 was RMB 3.099 billion, an increase of RMB 186 million or 6.39% from RMB 2.913 billion in the previous year[24]. - The net financial expenses amounted to RMB 408 million, an increase of RMB 78 million or 23.64% from RMB 330 million in the previous year[25]. - The company incurred selling and distribution expenses of RMB 670 million, an increase of RMB 83 million or 14.14% from RMB 587 million in the previous year, representing 1.91% of total revenue[22]. - Administrative expenses for the year were RMB 4.659 billion, an increase of RMB 315 million or 7.25% from RMB 4.344 billion, accounting for 13.25% of total revenue[23]. Revenue Breakdown - The aviation complete machine segment generated revenue of RMB 11.011 billion, up RMB 606 million or 5.82% from RMB 10.405 billion in the previous year, accounting for 31.32% of total revenue[21]. - The aviation parts segment reported revenue of RMB 18.546 billion, an increase of RMB 1.566 billion or 9.22% from RMB 16.980 billion, representing 52.76% of total revenue[21]. - The aviation engineering services segment achieved revenue of RMB 5.596 billion, up RMB 384 million or 7.37% from RMB 5.212 billion, maintaining a stable contribution of 15.92% to total revenue[21]. Cash Flow and Investments - As of December 31, 2018, the group's cash and cash equivalents amounted to RMB 12.12 billion, primarily generated from operating activities, bank deposits, and proceeds from share placements and convertible bonds issued by subsidiaries[30]. - The net cash inflow from operating activities for 2018 was RMB 508 million, a decrease of RMB 1.08 billion or 68.01% compared to RMB 1.588 billion in the previous year, mainly due to an increase in accounts receivable and inventory[32]. - The net cash outflow from investing activities for 2018 was RMB 1.493 billion, a decrease of RMB 350 million or 18.99% compared to RMB 1.843 billion in the previous year[33]. - The net cash inflow from financing activities for 2018 was RMB 2.038 billion, a decrease of RMB 405 million or 16.58% compared to RMB 2.443 billion in the previous year[33]. Research and Development - The total R&D expenditure for 2018 was RMB 2.528 billion, accounting for 7.19% of the operating revenue, with a 10% increase in patent applications compared to the previous year[43]. - In 2018, the company completed 33 patent applications, representing a year-on-year growth of 21.7%, with a total of 137 patent applications by the end of 2018, of which 91 were invention patents, accounting for 66.4% of all applications[186]. - The company has developed 67 research projects in smart manufacturing and green building technologies, with over 100 business constructions completed[182]. Corporate Governance - The company has a diverse board with members holding advanced degrees and extensive experience in finance, engineering, and management[60][62][63]. - The sixth board consists of 9 members, including 3 executive directors and 6 non-executive directors[108]. - The company emphasizes the importance of strategic management and innovation in its operations, as reflected in its leadership appointments[65]. - The board of directors held a total of 11 meetings in 2018, with attendance rates for executive directors ranging from 100% to 80%[135]. Environmental Management - The company has implemented a robust environmental management system, ensuring compliance with national environmental laws and regulations[188]. - The company achieved a total of over 1.9 million tons of recycled wastewater in 2018, demonstrating its commitment to water resource management[191]. - Total waste gas emissions decreased from 1,130,572 to 490,713 ten thousand standard cubic meters from 2017 to 2018[192]. - Greenhouse gas emissions reduced from 50.3 million tons CO2 equivalent in 2017 to 49.5 million tons in 2018[199]. Strategic Initiatives - The company plans to enhance its international business development and is actively planning the establishment of an international merger and acquisition fund to integrate into the global aviation industry chain[17]. - The company aims to enhance its brand's market influence and governance, receiving the "Golden Bauhinia - Most Investment Value Listed Company" award during the year[14]. - The group aims to expand its revenue scale through military-civilian integration and multi-dimensional cooperation, enhancing its international competitiveness[49]. Stakeholder Engagement - The company actively engages with stakeholders, including government, shareholders, customers, and the community, to understand their needs and provide timely responses[164]. - In 2018, the company received 3,029 valid questionnaires to assess stakeholder perceptions of its ESG performance, forming a significant issues matrix for future sustainable development management[165]. - The company has established a robust internal management system to enhance stakeholder communication and respond to their expectations and demands[163].