Financial Performance - The company's revenue for the fiscal year ending December 31, 2023, was RMB 84.725 billion, representing a 7.57% increase from RMB 78.761 billion in 2022[8] - The total profit for the year was RMB 7.069 billion, up 13.25% from RMB 6.242 billion in the previous year[8] - Net profit attributable to the parent company's shareholders was RMB 2.447 billion, reflecting a 5.47% increase from RMB 2.320 billion in 2022[8] - The gross profit margin improved to 25.18%, an increase of 1.27 percentage points from 23.91% in the prior year[8] - The company reported a net cash outflow from operating activities of RMB 4.083 billion for the fiscal year 2023, a decrease from a net inflow of RMB 10.221 billion in the previous year[41] - Operating profit for the fiscal year 2023 was RMB 6.989 billion, an increase of RMB 804 million or 13.00% compared to the previous year[33] - The company's revenue from aviation engineering services for the fiscal year 2023 was RMB 7.681 billion, a decrease of RMB 847 million or 9.93% compared to the previous year[28] - Sales expenses for the fiscal year 2023 amounted to RMB 1.109 billion, an increase of RMB 181 million or 19.50% year-on-year[29] - Management expenses for the fiscal year 2023 totaled RMB 5.647 billion, an increase of RMB 281 million or 5.24% compared to the previous year[30] - Research and development expenses for the fiscal year 2023 were RMB 7.573 billion, an increase of RMB 1.577 billion or 26.30% year-on-year[31] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 185.018 billion, a 3.29% increase from RMB 179.122 billion in 2022[9] - Total liabilities decreased to RMB 96.962 billion, down 6.41% from RMB 103.603 billion in the previous year[9] - The equity attributable to shareholders of the parent company rose to RMB 31.572 billion, a 5.61% increase from RMB 29.894 billion in 2022[9] - The total borrowings of the company as of December 31, 2023, amounted to RMB 13.156 billion, with short-term borrowings of RMB 5.260 billion[42] - The company's capital debt ratio as of December 31, 2023, was 7.11%, down from 8.12% the previous year[44] Revenue Breakdown - The revenue from the aviation complete machine business reached RMB 22.252 billion, a growth of RMB 1.950 billion or 9.60% compared to RMB 20.302 billion in the previous year[27] - The revenue from aviation supporting systems and related businesses was RMB 54.792 billion, an increase of RMB 4.861 billion or 9.74% from RMB 49.931 billion in the previous year[27] - Revenue from aviation supporting systems and related businesses reached RMB 54.792 billion in 2023, a growth of 9.74% year-on-year, with the avionics business contributing RMB 45.525 billion, up RMB 6.333 billion or 16.16%, accounting for 83.09% of the segment's revenue[48] - Revenue from aviation engineering services was RMB 7.681 billion in 2023, a decline of 9.93% year-on-year, representing 9.07% of the company's total revenue, down 1.75 percentage points from the previous year[50] Strategic Initiatives - The company successfully obtained airworthiness certificates for the AS700 and AG100 aircraft, enhancing its product offerings[17] - The company initiated an aviation emergency rescue system project and conducted comprehensive drills for emergency rescue equipment[17] - The company is actively promoting the construction of a civil helicopter base in Tianjin to enhance the industrialization development platform for helicopters[18] - The company plans to strengthen its strategic goals in 2024, focusing on technological innovation and the development of the low-altitude economy[21] - The company aims to enhance its competitive edge in key areas of the supply chain and deepen cooperation with domestic aviation research institutions[21] - The company is committed to advancing green low-carbon technology innovation and promoting high-end, intelligent, and green development in the aviation industry[21] Awards and Recognition - The company has received several awards, including "Outstanding High-Quality Development Listed Company" and "Top 100 Chinese Enterprises"[19] - China Aviation Industry ranked 150th in the Fortune Global 500 and 2nd in the aerospace and defense sector globally[17] Workforce and Employee Costs - As of December 31, 2023, the company has a total of 74,584 employees, with an employee cost of RMB 17.53 billion, an increase of RMB 1.34 billion or 8.27% compared to the previous year[61] - The company has a significant workforce in the aviation supporting systems and related businesses, accounting for 75.72% of total employees[61] - The company continues to enhance its core competitiveness through training programs aimed at young employees[63] Corporate Governance - The company has implemented internal controls to ensure compliance with relevant laws and regulations in China, with no significant violations reported[152] - The supervisory board held two meetings in 2023, reviewing eight proposals, including the annual report and profit distribution plans[159] - The supervisory board believes that the financial reports submitted to the shareholders accurately reflect the company's financial status and operational performance[160] - The company has established a nomination committee to ensure transparency and appropriateness in the appointment of new directors[171] - The governance report has been reviewed by the board to ensure compliance with the relevant requirements of the Hong Kong listing rules[168] Related Party Transactions - The actual expenditure for related party transactions with AVIC Industrial was RMB 12,686 million, while the revenue was RMB 25,378 million, against an annual cap of RMB 23,640 million and RMB 34,516 million respectively[124] - The company continues to engage in ongoing related transactions with AVIC and its subsidiaries, which hold over 10% equity in the company[106] Future Outlook - The company provided an optimistic outlook for Q4 2023, projecting revenue growth of 25% compared to the previous quarter[3] - The company plans to focus on new opportunities in the low-altitude economy, accelerate the development of new aircraft, and enhance its core competitiveness through strategic partnerships and technological innovation in 2024[56] - Future guidance indicates a commitment to sustainable practices, with a goal to reduce carbon emissions by 25% by 2025[10]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its growth potential and financial performance [2][3]. Core Viewpoints - The company aims to become a world-class aerospace high-tech industrial group, with steady growth in both complete aircraft and supporting systems, achieving a revenue of 84.725 billion yuan in 2023, a year-on-year increase of 7.57% [2]. - The increase in revenue is primarily driven by the growth in helicopter and avionics product sales, with a notable rise in gross profit margins across various business segments [2]. - The company is focusing on enhancing its research and development capabilities to strengthen its competitive edge across different sectors, with a significant increase in R&D expenditure [2]. Financial Performance Summary - **Revenue and Profit**: In 2023, the company reported a total revenue of 84.725 billion yuan, with a net profit attributable to shareholders of 2.447 billion yuan, reflecting year-on-year growth rates of 7.57% and 5.47%, respectively [2]. - **Business Segments**: - **Aerospace Complete Aircraft**: Revenue reached 22.252 billion yuan, up 9.60% year-on-year, with helicopter products contributing 21.271 billion yuan, a 21.61% increase [2]. - **Aerospace Supporting Systems**: Revenue was 54.792 billion yuan, a 9.74% increase, with avionics contributing 45.525 billion yuan, up 16.16% [2]. - **Aerospace Engineering Services**: Revenue decreased to 7.681 billion yuan, down 9.93%, due to structural improvements in the business [2]. - **Profitability Metrics**: The overall gross margin improved to 25.18%, with a net profit margin of 7.89% [2]. Future Projections - The company forecasts net profits attributable to shareholders of 2.937 billion yuan, 3.509 billion yuan, and 4.178 billion yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 8x, 7x, and 6x [2][3].

Financial Performance - For the fiscal year ending December 31, 2023, the company achieved a revenue of RMB 84.72 billion, representing a growth of RMB 5.96 billion or 7.57% compared to RMB 78.76 billion in the previous year[3]. - The net profit attributable to the parent company for the same period was RMB 2.45 billion, an increase of RMB 127 million or 5.47% from RMB 2.32 billion in the prior year[3]. - The total operating costs for the year were RMB 78.05 billion, up from RMB 72.59 billion, indicating an increase of RMB 5.46 billion or 7.52%[4]. - The company reported a total profit of RMB 7.07 billion, up from RMB 6.24 billion, reflecting a growth of RMB 830 million or 13.31%[4]. - The earnings per share for the year were RMB 0.311, slightly up from RMB 0.301 in the previous year, indicating a growth of 3.32%[5]. - The company’s total comprehensive income for the year was RMB 6.85 billion, compared to RMB 5.76 billion, reflecting an increase of RMB 1.09 billion or 18.93%[5]. - The operating profit for 2023 was reported at ¥6.19 billion, up from ¥5.19 billion in 2022, indicating a growth of approximately 19.2%[24]. - The net profit attributable to shareholders for 2023 was approximately ¥2.32 billion, compared to ¥2.22 billion in 2022, reflecting a growth of about 4.5%[24]. - Net profit for 2023 was CNY 6.69 billion, compared to CNY 5.87 billion in 2022, reflecting a year-on-year increase of about 13.8%[31][33]. Research and Development - Research and development expenses rose significantly to RMB 7.57 billion, compared to RMB 5.99 billion in the previous year, marking an increase of RMB 1.58 billion or 26.36%[4]. - The company continues to focus on research, development, and production of aviation products, indicating ongoing investment in innovation and market expansion strategies[15]. - Research and development expenses amounted to RMB 7.573 billion, an increase of RMB 1.577 billion or 26.30% year-on-year, reflecting a commitment to enhancing technological innovation[75]. Assets and Liabilities - The total assets as of December 31, 2023, amounted to RMB 144.72 billion, compared to RMB 140.93 billion at the end of 2022, showing an increase of RMB 3.79 billion or 2.69%[7]. - The company’s cash and cash equivalents decreased to RMB 39.50 billion from RMB 43.77 billion, a decline of RMB 4.27 billion or 9.75%[7]. - As of December 31, 2023, total assets amounted to RMB 185,018,195,632, an increase from RMB 179,122,036,966 as of December 31, 2022, reflecting a growth of approximately 5.0%[9]. - The total liabilities amounted to RMB 96,962,393,426, down from RMB 103,602,752,288, showing a decrease of about 6.2%[13]. - Current liabilities decreased to RMB 85,536,323,784 from RMB 96,107,490,004, representing a reduction of approximately 11.6%[13]. - Long-term borrowings rose significantly to RMB 6,067,549,104 from RMB 2,121,629,735, marking an increase of about 186.5%[13]. - Shareholders' equity totaled RMB 88,055,802,206, compared to RMB 75,519,284,678, reflecting an increase of approximately 16.5%[13]. Cash Flow - The company reported a cash flow from operating activities of approximately ¥10.22 billion for 2022, slightly down from ¥10.36 billion in 2021[24]. - In 2023, the company's net cash outflow from operating activities was RMB 4.083 billion, a decrease of RMB 14.304 billion compared to a net inflow of RMB 10.221 billion in 2022, representing a change rate of -139.95%[94]. - The net cash outflow from investing activities in 2023 was RMB 3.614 billion, an increase of RMB 699 million from RMB 2.915 billion in 2022, with a change rate of -23.98%[94]. - The net cash inflow from financing activities in 2023 was RMB 3.548 billion, an increase of RMB 136 million from RMB 3.412 billion in 2022, reflecting a change rate of 3.99%[94]. Market Strategy and Future Plans - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[3]. - The company plans to expand its market presence in mainland China, with significant revenue contributions from both aircraft and supporting systems[26]. - The company aims to accelerate the development of new aircraft and expand its international market presence, with the Y-12F aircraft receiving certification from the European Union Aviation Safety Agency (EASA)[88]. - The company plans to enhance its core competitiveness and promote high-quality development by focusing on technological innovation and strategic industry integration in 2024[91]. Dividends and Shareholder Information - The proposed final dividend per share is RMB 0.088, an increase from RMB 0.08 in the previous year[53]. - The board proposed a final dividend of RMB 701,611,173 for the fiscal year 2023, equating to RMB 0.088 per share, an increase from RMB 0.08 per share in 2022[118]. - The final dividend will be distributed to shareholders listed by June 5, 2024, with a record date set for May 31, 2024[118]. - The company will hold its annual general meeting on May 21, 2024, where shareholders will vote on the proposed dividend[120]. Corporate Governance - The company has established an Audit and Risk Management Committee to oversee financial operations and audit procedures[121]. - The Audit and Risk Management Committee has reviewed the annual performance and consolidated financial statements for the year ending December 31, 2023[122]. - The company has confirmed compliance with the corporate governance code as of the fiscal year ending December 31, 2023[123]. - All directors and supervisors have confirmed adherence to the standard code for securities trading in 2023[124].

Financial Performance - The company reported a revenue of RMB 40.873 billion for the six months ended June 30, 2023, with a net profit attributable to the parent company of RMB 1.543 billion, resulting in an earnings per share of RMB 0.199[6]. - For the six months ended June 30, 2023, the company achieved revenue of RMB 40.873 billion, an increase of RMB 7.358 billion or 21.95% compared to RMB 33.515 billion in the same period last year, primarily driven by growth in helicopter and avionics product sales[23]. - The company reported a total comprehensive income of RMB 4.18 billion for the first half of 2023, compared to RMB 2.55 billion in the same period of 2022, marking a 64% increase[94]. - Operating profit for the first half of 2023 was RMB 4.28 billion, up 22% from RMB 3.51 billion in the first half of 2022[92]. - The company reported a total sales revenue of RMB 26,747,768,760 for the first half of 2023, up from RMB 19,837,701,079 in the first half of 2022, representing a growth of 34.5%[101]. - The company recorded a total cash inflow from operating activities of RMB 29,370,362,085 for the first half of 2023, an increase of 33.4% compared to RMB 22,042,607,683 in the same period of 2022[101]. Market Positioning - The company ranked 150th in the Fortune Global 500 and 212th in the Fortune China 500, indicating strong market positioning despite economic challenges[8]. - The company plans to leverage the Tianjin Helicopter Expo to expand its influence and support the development of the civil helicopter industry[16]. Business Development - The company successfully integrated its helicopter business, enhancing core competitiveness, and raised approximately RMB 5 billion to optimize its capital structure[9]. - The company achieved a breakthrough by obtaining EASA certification for the Y12F aircraft, marking the first European certification for a domestically produced aircraft[13]. - The company will continue to optimize its industrial layout and pursue acquisition opportunities in the domestic and international aviation industry[16]. - The company has initiated projects to promote green aviation and enhance compliance and risk management capabilities[14]. Research and Development - Research and development expenses for the period were RMB 2.551 billion, an increase of RMB 539 million or 26.79% year-on-year, representing 6.24% of total revenue[37]. - The company is committed to enhancing its technological innovation and supply chain stability in the second half of 2023, focusing on high-quality development[16]. Financial Structure - As of June 30, 2023, the company's cash and cash equivalents amounted to RMB 28.613 billion, with total borrowings of RMB 14.046 billion[40]. - The company's debt-to-equity ratio was 7.88% as of June 30, 2023, down from 8.12% as of December 31, 2022[43]. - The company has completed the use of RMB 1 billion raised from the private placement of domestic shares for working capital[51]. - The company plans to fully utilize the remaining RMB 2.39 billion from the H-share placement for investment in aviation product business by 2024 or earlier[51]. Shareholder Information - The board of directors proposed not to declare an interim dividend for the six months ended June 30, 2023[6]. - The total share capital of the company increased from 1,917,798,835 shares to 4,838,896,630 shares due to a merger and subscription of new shares[46]. - Major shareholders include China Aviation Industry with 83.36% of domestic shares and Tianjin Free Trade Zone Investment Co., Ltd. with 16.64% of domestic shares[61]. Employee and Operational Metrics - The company has a total of 67,121 employees as of June 30, 2023[54]. - Employee costs for the six months ended June 30, 2023, amounted to RMB 7.305 billion, representing a 9.77% increase from RMB 6.655 billion in the same period last year[54]. Asset and Liability Management - As of June 30, 2023, the company's current assets totaled approximately RMB 139.85 billion, a slight decrease from RMB 140.93 billion as of December 31, 2022[74]. - The company's total liabilities decreased from RMB 96.20 billion to RMB 83.96 billion, reflecting a decline of approximately 12.6%[79]. - The total assets of the company were RMB 178,282,884,866, slightly down from RMB 179,122,036,966 as of December 31, 2022[81]. Cash Flow Analysis - The net cash outflow from operating activities was RMB -15,239,468,346, worsening from RMB -10,691,405,585 year-on-year[102]. - The company raised RMB 13,805,974,179 from financing activities, significantly up from RMB 5,727,653,424 in the same period last year[104]. - The total cash and cash equivalents at the end of June 2023 were RMB 28,613,459,627, an increase from RMB 18,694,356,703 at the end of June 2022[107]. Equity and Share Capital Changes - The company’s total equity attributable to shareholders reached RMB 30,885,499,633 as of June 2023, reflecting a decrease from the previous year[113]. - The company’s total liabilities and equity amounted to 84,803,852,725 RMB as of June 2023, indicating a comprehensive view of its financial position[113]. - The company recorded a profit distribution of RMB -663,832,981, indicating a loss in shareholder returns for the period[115]. Investment and Asset Management - The company has a total of RMB 7,812,442 in receivable dividends as of June 30, 2023, down from RMB 11,812,442 at the end of 2022[175]. - The total contract assets reached RMB 9,200,802,252 as of June 30, 2023, compared to RMB 4,150,444,429 at the end of 2022, indicating a significant increase of about 121.5%[195]. - The company reported a total increase in contract assets of RMB 5,024,835,132 during the period[198].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 中國航空科技工業股份有限公司 AviChina Industry & Technology Company Limited* （於中華人民共和國註冊成立之股份有限公司） （股份代號：2357） 二零二三年中期業績公告 財務摘要 本公司董事會欣然宣佈，二零二三年上 半年本公司業績實現良好增長。  截至二零二三年六月三十日止六個月期間，本集團實現收入為人民幣 408.73 億元，較上年同期收入人民幣 335.15 億元（經重列）增加人民幣 73.58 億元，增幅為 21.95%。  截至二零二三年六月三十日止六個月期間，本公司歸屬於母公司所有者的 ...

Financial Performance - The company's revenue for the year ended December 31, 2022, was RMB 63.639 billion, representing a 5.54% increase from RMB 60.296 billion in 2021[6]. - The net profit attributable to the parent company's shareholders for 2022 was RMB 2.216 billion, a decrease of 6.46% from RMB 2.369 billion in 2021[6]. - The gross profit margin improved to 22.60% in 2022, up from 21.06% in 2021, reflecting a 1.54 percentage point increase[6]. - Total assets increased by 7.56% to RMB 144.006 billion in 2022, compared to RMB 133.889 billion in 2021[7]. - Total liabilities rose by 8.51% to RMB 85.853 billion in 2022, up from RMB 79.123 billion in 2021[7]. - The company achieved a basic and diluted earnings per share of RMB 0.287 in 2022, down from RMB 0.307 in 2021, marking a decrease of 6.51%[6]. - Operating profit for 2022 was RMB 5.190 billion, a decrease of RMB 0.072 billion or 1.37% from the previous year, primarily due to performance decline in a subsidiary[34]. - Cash flow from operating activities in 2022 was RMB 10.358 billion, an increase of RMB 8.113 billion or 361.38% compared to the previous year, driven by increased customer prepayments[42]. Revenue Breakdown - The revenue from the aviation complete machine business was RMB 20.302 billion, a decrease of RMB 0.086 billion or 0.42% compared to RMB 20.388 billion in the previous year, accounting for 31.90% of total revenue[28]. - Revenue from aviation supporting systems and related businesses was RMB 36.591 billion, an increase of RMB 3.410 billion or 10.28% from RMB 33.181 billion in the previous year, representing 57.50% of total revenue[28]. - Revenue from aviation engineering services was RMB 6.746 billion, an increase of RMB 0.019 billion or 0.28% from RMB 6.727 billion in the previous year, accounting for 10.60% of total revenue[29]. Expenses and Investments - Sales expenses for the year were RMB 0.764 billion, an increase of RMB 0.076 billion or 11.05% from RMB 0.688 billion in the previous year, accounting for 1.20% of total revenue[30]. - In 2022, the company's management expenses amounted to RMB 3.926 billion, an increase of RMB 0.332 billion or 9.24% compared to the previous year, accounting for 6.17% of total revenue, up 0.21 percentage points year-on-year[31]. - Research and development expenses in 2022 totaled RMB 4.442 billion, an increase of RMB 0.990 billion or 28.68% year-on-year, representing 6.98% of total revenue, up 1.25 percentage points[32]. - Employee costs for the year amounted to RMB 12.343 billion, an increase of RMB 1.163 billion or 10.40% compared to the previous year[61]. Strategic Initiatives - The company plans to continue integrating and restructuring its airborne and helicopter businesses in 2023, supporting the construction of the Tianjin civil helicopter industrial base[21]. - The company aims to deepen cooperation with top domestic aviation research institutions, focusing on green and intelligent aviation technologies[21]. - The company will actively seek domestic and international acquisition opportunities within the aviation industry chain[21]. - The company successfully raised approximately RMB 3.4 billion through a non-public issuance of A-shares to support the industrialization of aviation technology projects[53]. - The company plans to issue A-shares to raise no more than RMB 5 billion as part of a share swap merger agreement with AVIC Electronics and AVIC Electromechanical[103]. Corporate Governance - The company has implemented internal controls to ensure compliance with relevant laws and regulations in China, with no significant violations reported as of December 31, 2022[148]. - The supervisory board confirmed that the financial reports presented to the shareholders accurately reflect the company's financial status and operational performance[155]. - The company has established a nomination committee, which includes four members, to oversee the nomination process for directors[189]. - The company’s audit and risk management committee is responsible for supervising financial operations and ensuring compliance with applicable laws and regulations[185]. - The company has adopted stricter internal trading rules compared to the Hong Kong listing rules, ensuring compliance among all directors and relevant employees[196]. Leadership and Management Changes - The company has seen a significant leadership change with Sun Jizhong appointed as General Manager in February 2023, previously holding various financial roles within the aviation industry[77]. - The company appointed Liu Weiwu as an independent non-executive director since June 2018, bringing extensive financial management experience from various roles within China Merchants Group[71]. - Mao Fugeng has been an independent non-executive director since May 2021, with a strong background in management accounting and corporate finance, having served on several boards[72]. - Zhang Minsheng resigned from his positions as chairman and executive director on February 21, 2023, due to work changes[174]. Market Position and Recognition - The company ranked 144th in the Fortune Global 500 and 2nd in the aerospace and defense sector[18]. - The company received several awards, including the "Most Investment Value Listed Company Award" and recognition among the top 100 listed companies in ESG[19]. - The company is committed to enhancing shareholder value through strategic investments and operational improvements[1]. Environmental and Social Responsibility - The company continues to enhance its environmental protection management and practices green development during the reporting period[82]. - The company emphasizes compliance with Chinese environmental laws and regulations as part of its environmental policy[82]. Future Outlook - Future outlook indicates a focus on expanding market presence and investing in new technologies to enhance product offerings and operational capabilities[1]. - The company has set ambitious performance guidance for the upcoming fiscal year, projecting a revenue growth of approximately 15%[1].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而産生或因倚賴 該等內容而引致之任何損失承擔任何責任。 中國航空科技工業股份有限公司 AviChina Industry & Technology Company Limited* （於中華人民共和國註冊成立之股份有限公司） （股份代號：2357） 截至二零二二年十二月三十一日止年度之業績公告； 建議修訂公司章程及股東大會議事規則；及 董事會專門委員會之成員變動 財務摘要 董事會宣佈，本公司努力克服產品結構調整影響，收入繼續保持增長。  截至二零二二年十二月三十一日止年度，本集團實現收入為人民幣636.39億元，較上年同 期收入人民幣602.96億元增長人民幣33.43億元，增幅為5.54%。  截至二零二二年十二月三十一日止年度，本公司歸屬於母公司所有者的淨利潤為人民幣 22.16億元，較上年同期本公司歸屬於母公司所有者的淨利潤人民幣23.69億元减少人民幣 1.53億元，降幅為6.46%。 ...

Fund Utilization - In the fiscal year 2021, approximately RMB 3.83 billion of the raised funds were utilized, with RMB 3.50 billion allocated to aviation product investments and RMB 0.33 billion to aviation research and industrialization projects [2]. - As of October 31, 2021, approximately RMB 9.63 billion of the raised funds had been used, including RMB 8.12 billion for aviation product investments and RMB 1.51 billion for aviation research projects [2]. - The remaining unutilized funds as of October 31, 2021, amounted to approximately RMB 2.12 billion, which is planned to be fully used for aviation product investments [2]. Impact of External Factors - The timeline for the completion of the use of the raised funds may be delayed due to the impact of the COVID-19 pandemic and international economic conditions [2]. Disclosure Practices - The company will provide ongoing disclosures regarding the actual use of the H-share placement funds in future annual and interim reports [2]. H-share Placement - The net proceeds from the H-share placement amounted to approximately HKD 1.346 billion [1].

Financial Performance - The company reported a revenue of RMB 25.813 billion for the six months ended June 30, 2022, a decrease of RMB 2.084 billion or 7.47% compared to RMB 27.897 billion in the same period last year[14]. - Net profit attributable to the owners of the parent company was RMB 1.154 billion, with earnings per share of RMB 0.150[7]. - The company did not declare an interim dividend for the six-month period ending June 30, 2022[7]. - The revenue of the aviation complete aircraft segment for the six months ended June 30, 2022, was RMB 6.237 billion, a decrease of 36.06% year-on-year, accounting for 24.16% of total revenue[17]. - The revenue of the aviation supporting systems and related businesses segment increased by 9.93% year-on-year to RMB 15.956 billion, representing 61.82% of total revenue[17]. - The gross profit for the six months ended June 30, 2022, was RMB 6.108 billion, an increase of 1.53% year-on-year, with a comprehensive gross profit margin of 23.66%, up by 2.10 percentage points[18]. - The net profit attributable to the owners of the parent company for the six months ended June 30, 2022, was RMB 1.154 billion, a decrease of 3.75% year-on-year[23]. - The company reported a significant increase in contract assets to RMB 8.67 billion from RMB 5.15 billion, reflecting a growth of around 68.5%[45]. - The company’s total comprehensive income attributable to shareholders for the first half of 2022 was RMB 2.09 billion, down from RMB 2.46 billion in the same period of 2021[54]. - The company reported a total profit of RMB 2.871 billion, highlighting strong operational performance[194]. Strategic Focus and Development - The company is focusing on becoming a flagship provider of high-tech military and civilian aviation products and services, with ongoing efforts in capital operations and business integration[8]. - The company aims to accelerate the restructuring and integration of the aviation industry chain and explore new development directions for helicopter technology[11]. - The company is committed to green development and enhancing its social responsibility framework, focusing on carbon neutrality initiatives[10]. - The company plans to continue focusing on market expansion and technological innovation to drive future growth[54]. - Future guidance indicates a commitment to maintaining robust financial health and pursuing strategic opportunities for growth[64]. - The company aims to expand its market presence through strategic partnerships and technological advancements in aviation products[71]. - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge in the aviation sector[120]. Research and Development - Research and development expenses for the six months ended June 30, 2022, were RMB 1.469 billion, an increase of 9.06% year-on-year, accounting for 5.69% of total revenue[21]. - Research and development expenses totaled RMB 1,468,935,031 for the first half of 2022, an increase from RMB 1,347,423,586 in the same period of 2021, indicating a growth of approximately 9.0%[153]. Financial Position and Assets - The total assets of the company have shown a positive trend, supporting future growth prospects[64]. - As of June 30, 2022, total current assets amounted to RMB 106.33 billion, a slight increase from RMB 105.11 billion as of December 31, 2021, reflecting a growth of approximately 1.16%[45]. - Total liabilities as of June 30, 2022, were RMB 78.29 billion, down from RMB 79.12 billion, reflecting a decrease of approximately 1.05%[48]. - Total shareholders' equity rose to RMB 56.21 billion from RMB 54.77 billion, an increase of approximately 2.6%[48]. - The company’s total assets reached RMB 134.50 billion, slightly up from RMB 133.89 billion, indicating a growth of approximately 0.45%[48]. - The company reported a total of RMB 28,776,479,917 in accounts receivable classified by collective provision method, with a provision ratio of 2.92%[92]. Borrowings and Liabilities - The total borrowings as of June 30, 2022, amounted to RMB 12.480 billion, with short-term borrowings of RMB 4.921 billion[24]. - The capital debt ratio as of June 30, 2022, was 9.28%, up from 7.90% as of December 31, 2021[26]. - Short-term borrowings increased to RMB 4.78 billion from RMB 3.06 billion, representing a rise of about 56.2%[47]. - Long-term borrowings increased to RMB 4,798,441,185 as of June 30, 2022, compared to RMB 4,284,761,981 at the end of 2021, reflecting a growth of about 12.0%[146]. Related Party Transactions - Total procurement from related parties for the first half of 2022 amounted to RMB 6,381,290,242, an increase of 7.77% compared to RMB 5,920,335,781 in the same period of 2021[173]. - Total sales to related parties for the first half of 2022 reached RMB 7,848,001,843, representing a growth of 5.17% from RMB 7,461,979,148 in the first half of 2021[173]. - The total amount of receivables from related parties was CNY 17,771,479,647 as of June 30, 2022, down from CNY 18,346,829,793 as of December 31, 2021, reflecting a decrease of approximately 3%[186]. Compliance and Governance - The company has established an Audit and Risk Management Committee to oversee financial reporting and compliance[40]. - The company has adhered to the corporate governance code as per the Hong Kong Listing Rules during the reporting period[41]. - The financial statements have been prepared under the supervision of the accounting authority and responsible accounting personnel, ensuring compliance and accuracy[66]. Market and Economic Outlook - Future outlook remains cautious due to market volatility and economic uncertainties[67]. - The company reported a total comprehensive income loss of RMB 385,566,612 for the period[68]. - The company completed the acquisition of Beijing Yinyan Industrial Co., Ltd., enhancing its market position[197].

Financial Performance - The company's revenue for the year ended December 31, 2021, was RMB 60.296 billion, an increase of 18.39% from RMB 50.930 billion in 2020[11]. - The total profit for the year was RMB 5.315 billion, reflecting a growth of 24.53% compared to RMB 4.268 billion in the previous year[11]. - Net profit attributable to the parent company's shareholders was RMB 2.369 billion, up 22.56% from RMB 1.933 billion in 2020[11]. - The gross profit margin for 2021 was 21.06%, compared to 20.49% in 2020, indicating a slight improvement[11]. - The operating profit for the year was RMB 5.262 billion, an increase of RMB 0.989 billion or 23.15% from RMB 4.273 billion in the previous year[35]. - The revenue from the aviation complete machine business was RMB 20.388 billion, an increase of RMB 1.329 billion or 6.97% compared to RMB 19.059 billion in the previous year[28]. - The revenue from aviation supporting systems and related businesses reached RMB 33.181 billion, an increase of RMB 7.658 billion or 30.00% from RMB 25.523 billion in the previous year[28]. - The revenue from the aviation engineering services business in 2021 was RMB 6.727 billion, an increase of 5.97% year-on-year[52]. - Employee costs for the year amounted to RMB 11.180 billion, an increase of RMB 1.802 billion or 19.22% compared to RMB 9.378 billion in the previous year[62]. Assets and Liabilities - The total assets of the company as of December 31, 2021, amounted to RMB 133.889 billion, an increase from RMB 115.649 billion in 2020[12]. - The total liabilities increased to RMB 79.123 billion from RMB 69.499 billion in the previous year[12]. - As of December 31, 2021, the group's cash and cash equivalents net amount was RMB 23.539 billion, primarily generated from operating activities and the issuance of A-shares by subsidiaries[41]. - The total borrowings of the group as of December 31, 2021, amounted to RMB 10.579 billion, with short-term borrowings of RMB 3.315 billion and long-term borrowings of RMB 6.140 billion[44]. Research and Development - The company incurred research and development expenses of RMB 3.452 billion, an increase of RMB 0.450 billion or 14.99% compared to RMB 3.002 billion in the previous year[33]. - Investment in R&D has increased by 25%, focusing on innovative technologies to enhance product offerings and maintain competitive advantage[75]. - The company has invested a total of RMB 5.521 billion in fundraising for the production and R&D of advanced trainer aircraft, helicopters, and aviation composite materials as of December 31, 2021[60]. Strategic Initiatives - The company plans to continue expanding its aviation high-tech military and civilian products and services, aiming to enhance its market position[22]. - The company aims to promote the industrialization of civil helicopters and explore new growth drivers in the aviation industry[23]. - The group aims to become a flagship company for high-tech military and civilian aviation products and services, focusing on strategic deployment and technological innovation[53]. - The company plans to enhance its high-tech aviation industry group and focus on market-driven and innovation-driven transformations in the aviation industry[23]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next three years[76]. Governance and Compliance - The company emphasizes the importance of maintaining a robust governance structure and compliance with regulatory requirements to mitigate operational risks[23]. - The company has implemented internal controls to ensure compliance with relevant laws and regulations in China, with no significant violations reported as of December 31, 2021[142]. - The board of directors includes experienced professionals with backgrounds in finance and management, ensuring strong governance and strategic oversight[72]. - The company has established a risk management and internal control system tailored to its business model to improve risk management standards[153]. - The board is responsible for the integrity of financial data and the effectiveness of internal controls and risk management procedures[157]. Shareholder Information - The total revenue for the fiscal year ended December 31, 2021, was reported at RMB 616,906,579.36, with a proposed final dividend of RMB 0.08 per share, an increase from RMB 0.05 per share in the previous year[84]. - The board of directors proposed a final dividend amounting to RMB 616,906,579.36, subject to approval at the annual general meeting scheduled for May 27, 2022[85]. - As of December 31, 2021, the total number of shares issued was 7,711,332,242, with 1,500,669,406 domestic shares (19.46%) and 6,210,662,836 H-shares (80.54%)[88]. Related Party Transactions - The company engaged in continuous related party transactions with China Aviation Industry Group and its subsidiaries, including agreements for mutual supply of aviation products and services until December 31, 2023[102]. - A product mutual supply agreement was signed on August 21, 2020, allowing the exchange of manufacturing materials, components, and services related to aviation products[102]. - The company agreed to provide entrusted loans to Aviation Industry New Energy through AVIC Finance, with a daily balance not exceeding RMB 300 million until December 31, 2022[108]. Market Position and Recognition - The company has been recognized as one of the Fortune Global 500 for the 13th consecutive year, ranking 140th overall and 2nd in the aerospace and defense sector[22]. - The group showcased its new 10-ton medium utility helicopter at the 13th China International Aviation and Aerospace Exhibition, highlighting advancements in aviation equipment development[55]. - The L15 advanced trainer aircraft gained significant attention at the 17th Dubai International Airshow, enhancing the group's market influence in the trainer aircraft sector[56]. Risk Management - The company is subject to various financial risks, including exchange rate risks, which may affect its performance and operations[144]. - The audit and risk management committee reviewed the effectiveness of the group's risk management and internal control systems for the year ending December 31, 2021, determining them to be effective and sufficient[178]. - The company emphasizes continuous improvement of its risk management and internal control systems to adapt to new regulations and business developments[195].