Financial Performance - The company's operating revenue for 2022 was CNY 2,153,258,906.35, a decrease of 10.07% compared to CNY 2,394,314,320.13 in 2021[23]. - The net profit attributable to shareholders for 2022 was CNY 122,780,957.98, down 19.70% from CNY 152,895,335.72 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was CNY 112,739,275.10, a decline of 21.86% compared to CNY 144,269,544.72 in 2021[23]. - Cash flow from operating activities for 2022 was CNY 140,987,783.07, a decrease of 39.55% from CNY 233,241,350.39 in 2021[24]. - The total profit for the year was 144 million RMB, down 19.72% compared to the previous year[34]. - The basic earnings per share decreased by 21.05% to 0.30 RMB per share in 2022[25]. - The weighted average return on net assets was 4.42%, a decrease of 1.32 percentage points from 2021[25]. Assets and Liabilities - The total assets at the end of 2022 were CNY 3,448,311,273.02, an increase of 3.83% from CNY 3,320,957,433.73 at the end of 2021[24]. - The net assets attributable to shareholders increased to CNY 2,818,453,529.95, reflecting a growth of 3.35% from CNY 2,726,991,200.92 in 2021[24]. - The company’s asset-liability ratio stood at 16.31%[34]. - The company’s receivables and inventory accounted for 46.08% of total assets, an increase of 1.94 percentage points year-on-year[34]. - The company maintained a debt-to-asset ratio of approximately 16%, indicating no debt risk[37]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1.10 per 10 shares, totaling CNY 44.47 million, which accounts for 36.22% of the net profit attributable to shareholders[5]. - In 2022, the company proposed a cash dividend of 1.10 RMB per 10 shares, totaling 44,474,245.20 RMB, which represents 36.22% of the net profit attributable to ordinary shareholders[141]. Research and Development - The company’s R&D investment accounted for 5.1% of total revenue, an increase of 0.82 percentage points compared to 2021[39]. - The company filed 132 patent applications, representing a year-on-year growth of 55.29%, with 42 of these being invention patents, up 68%[39]. - The total R&D investment reached 109.89 million yuan, representing 5.10% of the operating income[67]. - The number of R&D personnel is 632, which constitutes 19.24% of the total workforce[68]. Operational Efficiency - The company completed a cost reduction plan with a completion rate of 107.92%, exceeding targets in technical, quality, and production management cost reductions[37]. - The company has implemented a strict budget management system, ensuring full participation in budget preparation and execution analysis[36]. - The company is focusing on reducing production costs and improving quality stability through ongoing technological improvements[80]. Market and Sales Performance - The company reported a significant increase in new orders, with a year-on-year growth exceeding 35% in 2022[35]. - The proportion of new energy business orders increased by over 20 percentage points compared to the previous year[35]. - The main business revenue for the year reached CNY 1,097,440,160.96, an increase of 13.44% compared to the previous year[59]. - The total cost of the main business was CNY 454,794,478.76, reflecting a 15.70% increase from CNY 393,089,801.90 in the previous year[60]. Environmental and Social Responsibility - The company invested 3.23 million RMB in environmental protection during the reporting period[151]. - The company has established 9 sets of online monitoring devices for real-time monitoring of wastewater discharge, connected to the Guizhou Environmental Protection Information Center[158]. - The company has achieved a total chromium discharge concentration of 0.000007 mg/l, significantly below the permitted limit of 1.0 mg/l[152]. - Total investment in poverty alleviation and rural revitalization projects amounted to CNY 1.1304 million, with CNY 1.1195 million allocated for funding[163]. Corporate Governance - The company held 1 annual general meeting and 4 extraordinary general meetings during the reporting period, ensuring all shareholders enjoy equal rights[100]. - The board of directors convened 10 meetings during the reporting period, fulfilling their responsibilities and ensuring compliance with legal and regulatory requirements[101]. - The supervisory board held 7 meetings, effectively overseeing the legality and compliance of the company's financial activities and management actions[102]. - The company maintained strict adherence to information disclosure regulations, ensuring timely, accurate, and complete information for all shareholders[104]. Future Outlook and Strategic Goals - The company aims for a revenue target of 2.5 billion yuan and a net profit of 156 million yuan for 2023, with a continuous decline in cost expenses ratio and improvement in operating cash flow[91]. - The company plans to complete new order targets of 3.5 billion yuan for the year, with at least 50% coming from new energy business[93]. - The company is committed to dynamic management of its "14th Five-Year" development plan, ensuring strategic goals are effectively implemented and monitored[92]. Shareholder Structure and Changes - The company reported a total of 16,448 ordinary shareholders as of the end of the reporting period, a decrease from 26,857 in the previous month[179]. - The total number of shares held by the board members at the beginning of the year was 18,340, and it remained the same by the end of the year[110]. - The actual controller of the company is China Aviation Industry Group Co., Ltd., which holds 70.11% of the shares[189].

2022 年第三季度报告 证券代码：600523 证券简称：贵航股份 贵州贵航汽车零部件股份有限公司 2022 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人雷自力、主管会计工作负责人孙冬云及会计机构负责人（会计主管人员）张晓璐 保证季度报告中财务信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期 | 年初至报告期末 | 年初至报告期 | | --- | --- | --- | --- | --- | | | | 比上年同 | | 末比上年同期 | | | | 期增减变 | | 增减变动幅度 | | | | 动幅度(%) | | (%) | | 营业收入 | 549,511,659.21 | 0.04 | 1,578,455,417.03 | -9.76 | | ...

[Definitions](index=4&type=section&id=Section%20I%20Definitions) [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This section defines key terms, including company abbreviations, controlling shareholders, and subsidiaries, to facilitate understanding of the report - The reporting period refers to January 1, 2022, to June 30, 2022[9](index=9&type=chunk) - The company's controlling shareholder is China Aviation Automobile Systems Holding Co., Ltd. (AVIC Auto), and the ultimate controller is Aviation Industry Corporation of China, Ltd. (AVIC)[9](index=9&type=chunk) [Company Profile and Key Financial Indicators](index=4&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Basic Company Information](index=4&type=section&id=I.%20Company%20Information) This section provides essential company details, including its names, stock code (600523), legal representative, and contact information - The company's full name is Guizhou Guihang Automotive Components Co., Ltd., with stock abbreviation Guihang Shares and stock code **600523**[11](index=11&type=chunk)[15](index=15&type=chunk) [Key Accounting Data and Financial Indicators](index=5&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2022, the company's performance significantly declined, with revenue down 14.25% and net profit attributable to shareholders down 49.29%, impacted by consolidation changes and order reductions Key Accounting Data | Account | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,028,943,757.82 | 1,199,903,392.34 | -14.25 | | Net Profit Attributable to Shareholders of Listed Company | 43,702,762.06 | 86,188,618.54 | -49.29 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 37,096,711.64 | 75,682,438.64 | -50.98 | | Net Cash Flow from Operating Activities | 47,694,231.33 | 116,870,611.95 | -59.19 | Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.11 | 0.21 | -47.62% | | Basic EPS (Excluding Non-recurring Gains/Losses) (RMB/share) | 0.09 | 0.19 | -52.63% | | Weighted Average Return on Net Assets (%) | 1.61% | 3.28% | Decrease 1.67 percentage points | | Weighted Average RONAN (Excluding Non-recurring Gains/Losses) (%) | 1.36% | 2.88% | Decrease 1.52 percentage points | - During the reporting period, non-recurring gains and losses totaled **RMB 6.606 million**, primarily from fair value changes in transactional financial assets (**RMB 6.347 million**) and government grants (**RMB 3.370 million**)[19](index=19&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) [Industry and Principal Business](index=7&type=section&id=I.%20Description%20of%20Industry%20and%20Principal%20Business%20During%20the%20Reporting%20Period) The company operates in automotive components and aerospace products; H1 2022 saw a decline in automotive components due to the pandemic, while aerospace products grew strongly, with direct sales to major domestic manufacturers - The company's principal businesses are automotive components and aerospace products; in the first half, automotive components declined year-on-year due to the pandemic, while aerospace products developed rapidly[20](index=20&type=chunk)[23](index=23&type=chunk) - The company's operating model primarily involves external procurement of raw materials based on customer plans, centralized production organized according to customer plans, and direct sales to original equipment manufacturers[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [Analysis of Core Competencies](index=8&type=section&id=II.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies include technology, product breadth, and cost advantages, allowing for stronger R&D than domestic peers and greater resilience with cost benefits over foreign competitors - Compared to domestic enterprises, the company possesses technological advantages, full industry chain capabilities, and the ability to co-develop with OEMs[24](index=24&type=chunk) - Compared to foreign enterprises, the company offers a comprehensive range of products, demonstrates strong resilience to market fluctuations, and benefits from labor and energy cost advantages due to its western location[24](index=24&type=chunk) [Discussion and Analysis of Operations](index=8&type=section&id=III.%20Discussion%20and%20Analysis%20of%20Operations) In H1 2022, total operating revenue decreased by 14.25% to **RMB 1.029 billion**, and total profit fell by 46.40% to **RMB 58 million**, with new energy vehicle orders showing strong 498% growth Key Operating Indicators | Indicator | H1 2022 (RMB billion) | YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | 1.029 | -14.25% | | Total Profit | 0.058 | -46.40% | - New orders in the first half totaled **RMB 1.22 billion**, a **40%** year-on-year increase; new energy vehicle orders reached **RMB 729 million**, growing by **498%**, becoming a significant growth driver[27](index=27&type=chunk) - The company achieved cost reductions of **RMB 56.7 million** in the first half and reduced its supplier base by **25** to optimize costs and supply chain[26](index=26&type=chunk)[27](index=27&type=chunk) [Analysis of Key Operating Conditions](index=9&type=section&id=IV.%20Key%20Operating%20Conditions%20During%20the%20Reporting%20Period) This section analyzes the period's financial status, noting revenue, cost, and expense declines due to consolidation changes and order drops, a 4762.55% increase in long-term equity investments from Hande (China) capital injection, and completed restructuring and deregistration activities [Analysis of Principal Business](index=9&type=section&id=(I)%20Analysis%20of%20Principal%20Business) During the period, operating revenue decreased by 14.25% due to deconsolidation and order declines, sales expenses dropped by 59.21% from cost reclassification and efficiency, and operating cash flow fell by 59.19% due to reduced consolidation and orders Key Financial Data Changes | Account | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,028,943,757.82 | 1,199,903,392.34 | -14.25 | | Operating Cost | 793,792,131.73 | 902,562,097.01 | -12.05 | | Selling Expenses | 15,110,812.83 | 37,045,978.19 | -59.21 | | Net Cash Flow from Operating Activities | 47,694,231.33 | 116,870,611.95 | -59.19 | - The primary reasons for the decline in operating revenue were the completion of business registration changes for Hande (China), the deconsolidation of Chengdu Wanjiang, Shanghai Hongyang, and Hongyang Company, and a decrease in orders[30](index=30&type=chunk) [Analysis of Assets and Liabilities](index=10&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) At period-end, the asset and liability structure changed significantly; long-term equity investments surged **4762.55%** to **RMB 464 million** due to Hande (China) capital injection, while receivables decreased from deconsolidation, and payables increased **73.70%** due to adjusted payment terms - The year-end balance of long-term equity investments significantly increased by **4762.55%** compared to the end of the previous year, primarily due to the company's increased capital contribution to its associate, Hande (China)[32](index=32&type=chunk) - Notes receivable and accounts receivable financing decreased by **34.63%** and **75.23%** respectively, primarily due to the reduction in the scope of consolidation[32](index=32&type=chunk) - Accounts payable increased by **73.70%** compared to the end of the previous year, mainly because supplier payments shifted from advance payments to execution according to contract cycles[32](index=32&type=chunk) [Analysis of Investment Status](index=11&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) During the period, the company adjusted its equity structure, restructuring Yonghong Radiator into a wholly-owned subsidiary, completing related-party capital injections into Hande (China) with Guizhou Hongyang and Shanghai Hongyang equity, and liquidating Chengdu Wanjiang - The company increased its capital contribution to related party Hande (China) Automotive Sealing Co., Ltd. with its **100%** equity in Guizhou Hongyang and **76.19%** equity in Shanghai Hongyang, with business registration changes completed[34](index=34&type=chunk) - The company restructured Yonghong Radiator Company into a wholly-owned subsidiary and completed the liquidation and deregistration of Chengdu Wanjiang Automotive Components Co., Ltd[33](index=33&type=chunk)[34](index=34&type=chunk) [Analysis of Major Holding and Participating Companies](index=12&type=section&id=(VI)%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the period, Wanjiang Electromechanical and Huayang Electric were major net profit contributors, with **RMB 33.5637 million** and **RMB 30.8202 million** respectively, while Hongyang Company and Shanghai Hongyang's assets became zero due to equity capital injection Major Holding and Participating Companies Performance | Company Name | Main Products or Services | Total Assets (RMB 10k) | Net Assets (RMB 10k) | Net Profit (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | | Wanjiang Electromechanical | Aerospace products, automotive window regulators, etc. | 70,089.05 | 59,413.08 | 3,356.37 | | Huayang Electric | Aerospace electrical switches, control devices | 80,755.98 | 62,007.31 | 3,082.02 | | Hongyang Machinery | Aerospace seals, automotive seals | 14,099.58 | 12,176.39 | 1,074.45 | | Hongyang Company | Automotive sealing strip products | 0.00 | 0.00 | 11.28 | | Shanghai Hongyang | Automotive sealing strip products | 0.00 | 0.00 | 232.46 | [Corporate Governance](index=12&type=section&id=Section%20IV%20Corporate%20Governance) [Shareholders' Meeting Information](index=12&type=section&id=I.%20Overview%20of%20Shareholders'%20Meetings) During the period, the company held **4** shareholders' meetings, including **1** annual and **3** extraordinary, approving key proposals like the annual report, profit distribution, and board elections - During the reporting period, **4** shareholders' meetings were held, approving important matters such as the '2021 Annual Report', 'Proposal for 2021 Profit Distribution', and the election of new directors and supervisors[39](index=39&type=chunk)[40](index=40&type=chunk) [Changes in Directors, Supervisors, and Senior Management](index=14&type=section&id=II.%20Changes%20in%20the%20Company's%20Directors,%20Supervisors,%20and%20Senior%20Management) During the period, significant senior management changes occurred; former Chairman Tang Haibin resigned, Mr. Lei Zili was elected new Chairman, and Mr. Li Guochun transitioned from director to Supervisory Board Chairman - Former Chairman Mr. Tang Haibin resigned due to age, and Mr. Lei Zili was elected as the new Chairman in January 2022[41](index=41&type=chunk) - Mr. Li Guochun resigned from his director position and was elected Chairman of the company's Supervisory Board in June 2022[42](index=42&type=chunk) [Half-Year Profit Distribution Plan](index=14&type=section&id=III.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company proposes no profit distribution or capital reserve conversion to share capital for H1 2022 - The 2022 half-year profit distribution plan is: no distribution, no conversion[43](index=43&type=chunk) [Environmental and Social Responsibility](index=15&type=section&id=Section%20V%20Environmental%20and%20Social%20Responsibility) [Environmental Information](index=15&type=section&id=I.%20Environmental%20Information%20Overview) The company prioritizes environmental protection; its subsidiary Guiyang Huake Electroplating, a key polluting entity, has comprehensive pollution control and emergency plans, conducts self-monitoring, received no environmental penalties, and plans to invest **RMB 6.5 million** in facility upgrades - Its subsidiary, Guiyang Huake Electroplating Co., Ltd., is a municipal key wastewater discharge monitoring enterprise, equipped with wastewater treatment and exhaust gas treatment facilities, connected to the provincial environmental protection information center to ensure stable compliance with discharge standards[45](index=45&type=chunk)[46](index=46&type=chunk) - The company plans to invest **RMB 6.5 million** in technical upgrades for its subsidiary Huake Electroplating, enhancing production equipment and wastewater treatment facilities to protect the environment and prevent pollution[50](index=50&type=chunk) - The company continuously reduces carbon emissions and improves energy efficiency by promoting 'Green Aviation Industry' compliance and adopting new processes and equipment[51](index=51&type=chunk) [Social Responsibility and Rural Revitalization](index=17&type=section&id=II.%20Specifics%20of%20Consolidating%20Poverty%20Alleviation%20Achievements%20and%20Rural%20Revitalization%20Efforts) In H1 2022, the company actively fulfilled social responsibilities and engaged in rural revitalization, supporting areas like Ziyun County, Guizhou, through cadre dispatch, poverty alleviation funds, consumer assistance, and party building partnerships - The company dispatched **2** resident cadres, **1** temporary deputy county head, and **2** volunteer teachers, deeply participating in rural revitalization[52](index=52&type=chunk) - In the first half, **RMB 400,000** was invested in industrial projects and epidemic prevention in Ziyun County, and **RMB 397,000** worth of local products were purchased through consumer assistance[52](index=52&type=chunk) - The company's **8** Party branches established party-building partnerships with **5** villages in Ziyun County, conducting comforting visits for struggling households and providing financial aid to impoverished students[53](index=53&type=chunk) [Significant Matters](index=19&type=section&id=Section%20VI%20Significant%20Matters) [Major Related Party Transactions](index=19&type=section&id=X.%20Major%20Related%20Party%20Transactions) During the period, the company completed major related-party transactions, primarily a capital injection into Hande (China) using subsidiary equity, and maintained deposit accounts with the group's finance company, with a period-end balance of **RMB 50,057.70** - The company increased its capital contribution to related party Hande (China) Automotive Sealing Co., Ltd. with its **100%** equity in Guizhou Hongyang and **76.19%** equity in Shanghai Hongyang, with business registration changes completed in February 2022[60](index=60&type=chunk) - The company has deposit business with AVIC Industrial Group Finance Co., Ltd., with a daily maximum deposit limit of **RMB 600 million** and a period-end deposit balance of **RMB 50,057.70**[64](index=64&type=chunk) [Share Changes and Shareholder Information](index=22&type=section&id=Section%20VII%20Share%20Changes%20and%20Shareholder%20Information) [Share Capital Changes](index=22&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital and equity structure remained unchanged - During the reporting period, the company's total share capital and equity structure remained unchanged[67](index=67&type=chunk) [Shareholder Information](index=22&type=section&id=II.%20Shareholder%20Information) As of period-end, the company had **15,847** common shareholders; the top two, both state-owned entities under the same ultimate controller, held a combined stake exceeding **46%** - As of the end of the reporting period, the company had a total of **15,847** shareholders[67](index=67&type=chunk) Top Shareholders | Shareholder Name | Shares Held at Period-End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | China Aviation Automobile Systems Holding Co., Ltd. | 149,623,188 | 37.01 | State-owned Legal Entity | | China Guizhou Aviation Industry (Group) Co., Ltd. | 37,524,155 | 9.28 | State-owned Legal Entity | | Guiyang Qingchangzai Asset Management Co., Ltd. | 16,000,000 | 3.96 | Unknown | | Guiyang Industrial Investment Group Co., Ltd. | 9,234,177 | 2.28 | State-owned Legal Entity | - The top two shareholders are related parties, belonging to the same ultimate controller, Aviation Industry Corporation of China, Ltd[70](index=70&type=chunk) [Financial Report](index=24&type=section&id=Section%20X%20Financial%20Report) [Financial Statements](index=24&type=section&id=II.%20Financial%20Statements) This section presents the company's unaudited H1 2022 consolidated and parent financial statements, showing total assets of **RMB 3.304 billion**, net assets attributable to parent of **RMB 2.724 billion**, operating revenue of **RMB 1.029 billion**, and net profit attributable to parent of **RMB 43.7 million** Consolidated Financial Highlights | Item | Period-End Balance/Current Period Amount (RMB) | | :--- | :--- | | **Balance Sheet (Consolidated)** | | | Total Assets | 3,304,096,518.95 | | Total Liabilities | 521,256,687.37 | | Equity Attributable to Parent Company Owners | 2,723,932,117.77 | | **Income Statement (Consolidated)** | | | Total Operating Revenue | 1,028,943,757.82 | | Net Profit Attributable to Parent Company Shareholders | 43,702,762.06 | | **Cash Flow Statement (Consolidated)** | | | Net Cash Flow from Operating Activities | 47,694,231.33 | [Changes in Consolidation Scope](index=101&type=section&id=VIII.%20Changes%20in%20Consolidation%20Scope) During the period, the company's consolidation scope changed, adding Guizhou Yonghong Radiator (newly established) and deconsolidating Guizhou Hongyang, Shanghai Hongyang, and Chengdu Wanjiang due to equity capital injections and deregistration - Consolidation scope increased with the establishment of a new wholly-owned subsidiary, Guizhou Yonghong Radiator Co., Ltd[325](index=325&type=chunk) - Consolidation scope decreased: Guizhou Hongyang Sealing Co., Ltd. and Shanghai Hongyang Sealing Co., Ltd. are no longer consolidated due to equity capital injection into Hande (China)[325](index=325&type=chunk) - Consolidation scope decreased: Chengdu Wanjiang Automotive Components Co., Ltd. has been deregistered and is no longer consolidated[326](index=326&type=chunk) [Interests in Other Entities](index=102&type=section&id=IX.%20Interests%20in%20Other%20Entities) This section discloses the company's interests in subsidiaries, joint ventures, and associates, including **10** consolidated subsidiaries and equity method investments in Hongda Electric (**30%**) and Hande (China) (**47.39%**) - The company holds **10** subsidiaries, including Huayang Electric (**100%**), Wanjiang Electromechanical (**100%**), and Shanghai Yonghong (**90%**)[327](index=327&type=chunk) - The company holds a **47.39%** equity stake in associate Hande (China), recognizing an investment loss of **RMB 17.7042 million** for the current period[226](index=226&type=chunk)[332](index=332&type=chunk) - Among significant non-wholly-owned subsidiaries, Shanghai Yonghong, Guizhou Huachang, and Tianjin Daqi all achieved profitability during the reporting period[328](index=328&type=chunk)[329](index=329&type=chunk) [Related Parties and Related Party Transactions](index=110&type=section&id=XII.%20Related%20Parties%20and%20Related%20Party%20Transactions) The company's ultimate controlling party is Aviation Industry Corporation of China, Ltd.; during the period, frequent related-party transactions occurred with group affiliates for goods and services, and significant deposit balances were maintained with AVIC Industrial Group Finance Co., Ltd - The company engaged in significant related-party transactions with entities belonging to Aviation Industry Corporation of China, Ltd., including purchases of **RMB 44.42 million** and sales of **RMB 310 million**[352](index=352&type=chunk)[353](index=353&type=chunk) - The company signed a 'Financial Services Agreement' with AVIC Industrial Group Finance Co., Ltd.; as of the end of the reporting period, its deposit balance with the company was **RMB 501 million**, accounting for **95.69%** of the company's monetary funds[354](index=354&type=chunk) [Events After the Balance Sheet Date](index=114&type=section&id=XV.%20Events%20After%20the%20Balance%20Sheet%20Date) This section discloses the company's profit distribution, with the board resolving a cash dividend of **RMB 1.33** per **10** shares (tax inclusive) for FY2021, totaling **RMB 53.7734 million** - The company's board of directors approved the 2021 profit distribution plan, proposing a cash dividend of **RMB 1.33** per **10** shares (tax inclusive), totaling **RMB 53,773,405.56**[360](index=360&type=chunk) [Supplementary Information](index=124&type=section&id=XVIII.%20Supplementary%20Information) This section provides supplementary financial information, including non-recurring gains/losses, return on net assets, and earnings per share; net profit excluding non-recurring gains/losses was **RMB 37.097 million**, with a weighted average return on net assets of **1.36%** and basic EPS of **RMB 0.09** Non-recurring Gains/Losses Details | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -893,585.61 | | Government Grants Recognized in Current Profit/Loss | 3,369,562.88 | | Gains/Losses from Fair Value Changes of Transactional Financial Assets, etc. | 6,347,417.73 | | Other Non-operating Income and Expenses Apart from the Above | -760,235.22 | | **Total Non-recurring Gains/Losses** | **6,606,050.42** | Net Assets Return and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (RMB/share) | | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Company | 1.61 | 0.11 | | Net Profit Attributable to Ordinary Shareholders of the Company (Excluding Non-recurring Gains/Losses) | 1.36 | 0.09 |

[Key Financial Data](index=1&type=section&id=Item%20I.%20Key%20Financial%20Data) This section presents the company's key financial performance indicators and non-recurring gains and losses for the current reporting period [Key Accounting Data and Financial Indicators](index=1&type=section&id=Item%20I.%28I%29Key%20Accounting%20Data%20and%20Financial%20Indicators) Q1 2022 saw stable revenue growth and increased net profit, with core business profitability significantly enhanced Q1 2022 Key Financial Indicators | Indicator | Current Period | Year-over-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 573,724,530.41 RMB | 1.23% | | Net Profit Attributable to Parent Company Shareholders | 34,338,955.21 RMB | 3.40% | | Net Profit Attributable to Parent Company Shareholders Excluding Non-recurring Gains and Losses | 30,329,073.10 RMB | 26.32% | | Net Cash Flow from Operating Activities | 16,577,694.57 RMB | N/A | | Basic Earnings Per Share (RMB/share) | 0.08 RMB | 0% | | Weighted Average Return on Net Assets | 1.21% | Decreased by 0.05 percentage points | | **Indicator** | **End of Current Period** | **Change from End of Previous Year (%)** | | Total Assets | 3,353,481,323.89 RMB | 0.98% | | Total Equity Attributable to Parent Company Shareholders | 2,846,722,611.58 RMB | 4.39% | [Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=Item%20I.%28II%29Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Non-recurring gains and losses totaled 4.01 million RMB, mainly from fair value changes of financial assets and government grants Q1 2022 Non-recurring Gains and Losses Details | Item | Amount for Current Period (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 2,010.90 | | Government Grants Recognized in Current Profit/Loss | 806,646.60 | | Gains/Losses from Changes in Fair Value of Financial Assets Held for Trading | 4,448,799.15 | | Other Non-operating Income and Expenses | -455,577.68 | | Less: Income Tax Impact | 753,843.38 | | Less: Impact on Minority Interests (After Tax) | 38,153.48 | | **Total** | **4,009,882.11** | - The primary source of non-recurring gains and losses in this period is **4.45 million RMB** from fair value changes of financial assets held for trading, derivative financial assets, and related investment income[5](index=5&type=chunk) [Shareholder Information](index=3&type=section&id=Item%20II.%20Shareholder%20Information) This section outlines the company's shareholder structure, including total shareholder count and top ten shareholder holdings [Shareholding Information](index=3&type=section&id=Item%20II.%28I%29Total%20Number%20of%20Common%20Shareholders%2C%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%2C%20and%20Top%20Ten%20Shareholders%27%20Holdings) The company had 16,580 common shareholders, with top state-owned entities holding over 46% combined - At the end of the reporting period, the company had a total of **16,580** common shareholders[7](index=7&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage (%) | | :--- | :--- | :--- | | China Aviation Automobile Systems Holding Co., Ltd. | State-owned Legal Entity | 37.01 | | China Guizhou Aviation Industry (Group) Co., Ltd. | State-owned Legal Entity | 9.28 | | Guiyang Industrial Investment Group Co., Ltd. | State-owned Legal Entity | 6.24 | | Bai Tianxing | Domestic Individual | 0.79 | | Liao Yongxiang | Domestic Individual | 0.72 | | Shanghai Panyao Asset Management Co., Ltd. - Panyao Phase III Securities Investment Fund | Unknown | 0.69 | | Shanghai Panyao Asset Management Co., Ltd. - Panyao Zhiguo Private Securities Investment Fund | Unknown | 0.69 | | Linglong Group Co., Ltd. | Unknown | 0.56 | | Wang Ming | Domestic Individual | 0.48 | | Shanghai Panyao Asset Management Co., Ltd. - Panyao Yongda Private Securities Investment Fund | Unknown | 0.30 | - The top two shareholders are state-owned legal entities under the same ultimate controlling party and have no affiliation with other shareholders; the company is unaware of any other affiliations or concerted actions among other shareholders[8](index=8&type=chunk) [Other Noteworthy Matters](index=4&type=section&id=Item%20III.%20Other%20Noteworthy%20Matters) The company advanced significant corporate governance and asset integration initiatives to optimize its asset structure and management - The company is in the process of acquiring a **5.96%** equity stake in its controlling subsidiary, Tianjin Daqi Company, with industrial and commercial registration changes still underway[9](index=9&type=chunk) - The company has completed capital injections into its related party, Hanon (China) Automotive Sealing Co., Ltd., using its equity holdings in Guizhou Hongyang Sealing Parts Co., Ltd. and Shanghai Hongyang Sealing Parts Co., Ltd[9](index=9&type=chunk) - The company has completed the liquidation and deregistration of Chengdu Wanjiang Auto Parts Co., Ltd[9](index=9&type=chunk) [Quarterly Financial Statements](index=5&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) This section presents the company's consolidated balance sheet, income statement, and cash flow statement for the current quarter [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2022, total assets increased, liabilities decreased, and long-term equity investments significantly rose Balance Sheet Key Item Changes | Item | March 31, 2022 (RMB) | December 31, 2021 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 3,353,481,323.89 | 3,320,957,433.73 | 0.98% | | Total Liabilities | 446,637,294.56 | 500,459,956.73 | -10.76% | | Total Equity Attributable to Parent Company Shareholders | 2,846,722,611.58 | 2,726,991,200.92 | 4.39% | | Long-term Equity Investments | 542,624,988.56 | 9,548,495.17 | 5582.89% | | Fixed Assets | 485,683,884.91 | 664,277,076.55 | -26.88% | [Consolidated Income Statement](index=8&type=section&id=Consolidated%20Income%20Statement) Q1 2022 operating revenue grew 1.23% and net profit increased 3.40%, driven by investment income and reduced selling expenses Income Statement Key Item Changes | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 573,724,530.41 | 566,734,889.35 | 1.23% | | Operating Profit | 42,798,173.99 | 39,846,518.51 | 7.41% | | Net Profit Attributable to Parent Company Shareholders | 34,338,955.21 | 33,211,423.60 | 3.40% | | Selling Expenses | 9,288,252.71 | 18,792,589.05 | -50.57% | | Research and Development Expenses | 25,261,000.12 | 22,820,506.97 | 10.69% | | Investment Income | 3,131,147.67 | -236,597.75 | N/A | | Gains from Changes in Fair Value | 4,448,799.15 | 7,353,576.01 | -39.50% | [Consolidated Cash Flow Statement](index=10&type=section&id=Consolidated%20Cash%20Flow%20Statement) Q1 2022 operating cash flow significantly improved, while investing cash outflow expanded, resulting in a net decrease in cash Cash Flow Statement Key Items | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 16,577,694.57 | -70,508,392.90 | | Net Cash Flow from Investing Activities | -96,552,820.59 | -11,828,612.65 | | Net Cash Flow from Financing Activities | -11,363,620.96 | -500,000.00 | | Net Increase in Cash and Cash Equivalents | -91,440,687.83 | -82,935,606.96 | - Operating cash flow turned positive, primarily because cash paid for goods and services decreased from **329 million RMB** in the prior year to **205 million RMB** in the current period[20](index=20&type=chunk) - Net cash outflow from investing activities significantly increased, primarily due to higher cash payments for the acquisition of fixed assets, intangible assets, other long-term assets, and investments[21](index=21&type=chunk)

[Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key abbreviations, related parties, regulatory bodies, and other technical terms used throughout the report[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides the company's basic information and summarizes its key financial data and indicators over the past three years [Company Information](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides basic information about Guizhou Guihang Automotive Components Co, Ltd, including its name, stock code, and contact details - The company's full name is Guizhou Guihang Automotive Components Co, Ltd, with the stock ticker **Guihang Co, Ltd (600523)**, listed on the Shanghai Stock Exchange[15](index=15&type=chunk)[19](index=19&type=chunk) [Key Financial Data and Indicators](index=6&type=section&id=%E8%BF%91%E4%B8%89%E5%B9%B4%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's revenue and net profit grew steadily in 2021, with enhanced core business profitability and robust operating cash flow Key Accounting Data for the Last Three Years (Unit: RMB) | Key Accounting Data | 2021 | 2020 | YoY Change (%) | 2019 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 2,394,314,320.13 | 2,236,106,610.57 | 7.08 | 2,207,998,805.40 | | **Net Profit Attributable to Shareholders** | 152,895,335.72 | 150,221,465.12 | 1.78 | 135,103,771.98 | | **Net Profit Attributable to Shareholders (Excluding Non-recurring Items)** | 144,269,544.72 | 132,937,078.72 | 8.52 | 95,635,318.11 | | **Net Cash Flow from Operating Activities** | 233,241,350.39 | 217,357,435.04 | 7.31 | 171,919,593.98 | | **Net Assets Attributable to Shareholders (Year-end)** | 2,726,991,200.92 | 2,624,867,567.92 | 3.89 | 2,542,151,936.42 | | **Total Assets (Year-end)** | 3,320,957,433.73 | 3,257,885,054.37 | 1.94 | 3,166,411,051.06 | Key Financial Indicators for the Last Three Years | Key Financial Indicators | 2021 | 2020 | YoY Change | 2019 | | :--- | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (RMB/share)** | 0.38 | 0.37 | 2.70% | 0.33 | | **Weighted Average Return on Equity (%)** | 5.74 | 5.81 | Decreased by 0.07 p.p. | 5.59 | | **Weighted Average ROE (Excluding Non-recurring Items) (%)** | 5.42 | 5.15 | Increased by 0.27 p.p. | 3.95 | Quarterly Key Financial Data for 2021 (Unit: RMB) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 566,734,889.35 | 633,168,502.99 | 549,285,771.97 | 645,125,155.82 | | **Net Profit Attributable to Shareholders** | 33,211,423.60 | 52,977,194.94 | 42,774,954.72 | 23,931,762.46 | - The company's non-recurring profit and loss in 2021 totaled **RMB 8.63 million**, primarily from government grants (RMB 12.28 million) and fair value changes in trading financial assets (RMB 2.86 million)[28](index=28&type=chunk)[29](index=29&type=chunk) [Management's Discussion and Analysis](index=9&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section details the company's operational performance, industry context, business model, core strengths, and future strategic direction [Discussion and Analysis of Operations](index=9&type=section&id=%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In 2021, the company achieved stable operations and revenue growth by capitalizing on aviation industry opportunities while navigating automotive sector challenges Key Operating Indicators for 2021 | Indicator | 2021 | YoY Change | | :--- | :--- | :--- | | **Operating Revenue** | RMB 2.394 billion | +7.08% | | **Total Profit** | RMB 179 million | -2.84% | | **EVA** | RMB 99 million | +5.89% | | **Operating Cash Flow** | RMB 233 million | +7.31% | | **"Two Funds" Ratio** | 44.14% | Decreased by 3.11 p.p. | - The **aviation products business** maintained rapid growth for two consecutive years, with a **100% completion rate** for key product deliveries and R&D plans[34](index=34&type=chunk)[35](index=35&type=chunk) - Market expansion was effective, with new orders increasing by **32% year-over-year**, including 57 orders related to new energy vehicles[37](index=37&type=chunk) - The company strengthened internal management through comprehensive budgeting and cost control, reducing the proportion of **"two funds" (receivables and inventory) by 3.11 percentage points**[38](index=38&type=chunk)[39](index=39&type=chunk) [Industry Landscape and Trends](index=12&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The automotive components industry is supported by national policies, with domestic manufacturers gaining competitiveness despite market fluctuations - National policies provide long-term support for the automotive components industry, aiming to overcome supply chain weaknesses and cultivate globally competitive suppliers[49](index=49&type=chunk) - China's auto parts market has significant potential, with domestic manufacturers enhancing their position through comprehensive industrialization and simultaneous development capabilities[50](index=50&type=chunk)[51](index=51&type=chunk) [Principal Business and Operating Model](index=13&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5) The company's principal business is automotive components, utilizing a centralized procurement, make-to-order production, and direct-to-OEM sales model - The company's main business is automotive components, with key products including electric wipers, window regulators, automotive sealing strips, and electronic switches[52](index=52&type=chunk) - Operating Model: - **Procurement**: Centralized procurement from certified suppliers based on customer plans, inventory levels, and lead times - **Production**: Centralized, pull-based production organized according to customer plans - **Sales**: Primarily direct sales to vehicle manufacturers, with a small portion supplied to Tier 1 suppliers and the retail market[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Core Competitiveness Analysis](index=13&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness lies in its technology, diverse product line, and regional cost advantages in labor and energy - The company possesses technical advantages and full-chain design and manufacturing capabilities, enabling simultaneous development with OEMs and a resilient product portfolio[56](index=56&type=chunk) - Compared to foreign-funded enterprises, the company benefits from **cost advantages in labor and energy** due to its location in western China[56](index=56&type=chunk) [Analysis of Key Operations](index=13&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85) Revenue from the main business grew, driven by electronic and electrical products, while costs increased due to rising raw material prices Key Changes in Income Statement and Cash Flow Statement | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 2,394,314,320.13 | 2,236,106,610.57 | 7.08 | | **Operating Costs** | 1,827,206,658.99 | 1,677,290,359.33 | 8.94 | | **Selling Expenses** | 46,326,337.78 | 80,217,636.97 | -42.25 | | **R&D Expenses** | 102,544,067.00 | 88,619,050.39 | 15.71 | | **Net Cash Flow from Operating Activities** | 233,241,350.39 | 217,357,435.04 | 7.31 | Main Business Breakdown by Product (Unit: RMB) | Product Segment | Operating Revenue | YoY Revenue Growth (%) | Gross Margin (%) | Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | | **Sealing Strips** | 531,705,782.13 | 8.40 | 22.01 | Decreased by 3.51 p.p. | | **Locks** | 218,844,679.32 | 3.80 | 26.80 | Increased by 1.24 p.p. | | **Wipers** | 333,581,683.60 | 0.77 | 12.35 | Decreased by 4.74 p.p. | | **Radiators** | 396,434,655.71 | -8.72 | 17.76 | Decreased by 3.52 p.p. | | **Electrical Switches** | 513,310,507.56 | 22.47 | 23.42 | Increased by 1.48 p.p. | | **Window Regulators** | 210,348,881.55 | 36.43 | 42.10 | Increased by 2.26 p.p. | - Sales to the top five customers accounted for **23.92%** of total annual sales, and purchases from the top five suppliers were **9.43%** of total procurement, indicating no significant dependency[68](index=68&type=chunk) - In 2021, total R&D investment was **RMB 103 million**, representing **4.28%** of operating revenue, with 736 R&D personnel accounting for **16.77%** of the total workforce[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [Future Outlook](index=24&type=section&id=%E5%85%AC%E5%8F%B8%E5%85%B3%E4%BA%8E%E5%85%AC%E5%8F%B8%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) The company will focus on expanding aviation production capacity, developing new energy markets, and enhancing internal management and talent development - The company's development strategy is: technology-led, industry-supported; innovation-driven, industrial upgrading; platform-building, and cluster development[92](index=92&type=chunk) 2022 Business Plan Targets | Indicator | Target Amount | | :--- | :--- | | **Operating Revenue** | RMB 2.156 billion | | **Total Profit** | RMB 240 million | - Key initiatives for 2022 include: - **Aviation Business**: Accelerate investment and capacity building to ensure R&D and production delivery - **Market Development**: Seize opportunities in the new energy vehicle sector through a dedicated task force - **Internal Management**: Continue to promote comprehensive budget management, cost reduction, and lean management - **Reform and Innovation**: Implement the "14th Five-Year Plan," integrate resources, and prioritize R&D investment - **Talent Development**: Focus on building a leadership pipeline and enhancing employee skills[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) [Corporate Governance](index=27&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section outlines the company's governance structure, management team, board activities, and employee information [Overview of Corporate Governance](index=27&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company maintains a sound corporate governance structure in compliance with relevant laws, ensuring standardized operations and timely information disclosure - The company's corporate governance structure is well-established and operates in strict accordance with the "Company Law" and "Securities Law," with clearly defined roles for the Shareholders' Meeting, Board of Directors, and Board of Supervisors[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - During the reporting period, the Board of Directors revised the "Articles of Association" and "Rules of Procedure for the Board of Directors" and formulated new policies to further improve the governance structure[108](index=108&type=chunk) [Directors, Supervisors, and Senior Management](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E7%9A%84%E6%83%85%E5%86%B5) This section details the remuneration and tenure of management and discloses regulatory actions related to prior-year financial irregularities - The total pre-tax remuneration for all directors, supervisors, and senior management at the end of the reporting period was **RMB 4.073 million**[112](index=112&type=chunk)[118](index=118&type=chunk) - Chairman Tang Haibin retired due to age, and Yu Xianfeng was appointed as the General Manager[120](index=120&type=chunk) - Due to "related-party fund occupation and entrusted wealth management" in 2020, the company and relevant personnel received a **public criticism** from the Shanghai Stock Exchange and a **warning letter** from the CSRC Guizhou Bureau in August 2021; the issues were rectified by December 2020[121](index=121&type=chunk) [Board and Special Committee Meetings](index=34&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%AC%E5%BC%80%E7%9A%84%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%9C%89%E5%85%B3%E6%83%85%E5%86%B5) The Board of Directors and its specialized committees held multiple meetings to review key matters including financial reports, profit distribution, and executive appointments - During the reporting period, the Board of Directors convened **7 meetings** to approve major resolutions such as the annual report, profit distribution, related-party transactions, and the appointment of the General Manager[122](index=122&type=chunk)[123](index=123&type=chunk) - The Board's specialized committees, including Audit, Strategy, Nomination, Remuneration and Appraisal, and Budget, held **5, 6, 3, 2, and 2 meetings** respectively, fulfilling their duties[128](index=128&type=chunk)[131](index=131&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) [Employee Information](index=41&type=section&id=%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) The company employs 4,388 people, primarily in production roles, with a performance-linked compensation policy and a multi-level training system Employee Composition by Function | Functional Category | Number of Employees | | :--- | :--- | | **Production Personnel** | 2,981 | | **Sales Personnel** | 90 | | **Technical Personnel** | 736 | | **Finance Personnel** | 75 | | **Administrative Personnel** | 506 | | **Total** | 4,388 | - The company's compensation policy is closely tied to corporate, departmental, and individual performance, complemented by a comprehensive training system to enhance employee capabilities[141](index=141&type=chunk)[142](index=142&type=chunk) [Environmental and Social Responsibility](index=45&type=section&id=%E7%8E%AF%E5%A2%83%E4%B8%8E%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) This section details the company's environmental protection measures and its contributions to social responsibility, particularly in rural revitalization [Environmental Information](index=45&type=section&id=%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) The company adheres to environmental regulations, with its key subsidiary operating comprehensive wastewater and exhaust treatment facilities to ensure compliance - The subsidiary, Guiyang Huake Electroplating Co, Ltd, a key monitored enterprise, operates a **240 ton/day wastewater treatment station** and nine exhaust gas treatment systems, ensuring stable, compliant emissions[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) - The company effectively controls and reduces carbon emissions through technological upgrades, equipment replacement, and process optimization[163](index=163&type=chunk) [Social Responsibility](index=47&type=section&id=%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E5%B7%A5%E4%BD%9C%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities by supporting rural revitalization in Ziyun County through financial aid, procurement, and educational programs - In 2021, the company supported rural revitalization in Ziyun County by implementing 4 projects, investing **RMB 2.49 million** in poverty alleviation funds, and procuring **RMB 168,600** worth of local goods[48](index=48&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - Through its "Fledgling Eagle" program, the company sponsors underprivileged students' university education, recruiting 9 students from rural Guizhou in 2021[166](index=166&type=chunk) [Significant Matters](index=49&type=section&id=%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers the fulfillment of commitments by the controlling shareholder and details significant related-party transactions during the year [Fulfillment of Commitments](index=49&type=section&id=%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The controlling shareholder, AVIC Automotive Systems Holding Co, Ltd, has strictly fulfilled its commitments regarding company independence and fair transactions - The controlling shareholder, AVIC Automotive, has strictly adhered to its commitments regarding ensuring the company's independence, avoiding competition, and regulating related-party transactions[170](index=170&type=chunk) [Significant Related-Party Transactions](index=50&type=section&id=%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in routine related-party transactions and conducted a major non-routine transaction involving a capital increase through equity contribution - The company increased its capital in the related party HANDE (China) Automotive Sealing Co, Ltd by contributing its 100% stake in Guizhou Hongyang and 76.19% stake in Shanghai Hongyang, resulting in a **47.39%** holding in HANDE (China)[177](index=177&type=chunk) - The company maintained financial service agreements with AVIC Group Finance Co, Ltd, with a deposit balance of **RMB 612 million** at the end of 2021[180](index=180&type=chunk)[540](index=540&type=chunk) [Share Capital Changes and Shareholders](index=53&type=section&id=%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section provides information on the company's share capital structure and details its major shareholders and actual controller [Changes in Share Capital](index=53&type=section&id=%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's total share capital and structure remained unchanged during the reporting period, with 404,311,320 shares outstanding - The company's total number of shares and share capital structure did not change during the reporting period[183](index=183&type=chunk) [Shareholders and Actual Controller](index=54&type=section&id=%E8%82%A1%E4%B8%9C%E5%92%8C%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%83%85%E5%86%B5) The company's controlling shareholder is China Aviation Automobile System Holding Co, Ltd, and the actual controller is Aviation Industry Corporation of China, Ltd Top Ten Shareholders' Holdings as of the Reporting Period End | Shareholder Name | Number of Shares Held (shares) | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | | **China Aviation Automobile System Holding Co, Ltd** | 149,623,188 | 37.01 | | **China Guizhou Aviation Industry (Group) Co, Ltd** | 37,524,155 | 9.28 | | **Guiyang Industrial and Commercial Industry Investment Group Co, Ltd** | 25,234,177 | 6.24 | | **Linglong Group Co, Ltd** | 5,500,000 | 1.36 | | **China International Capital Corporation Limited** | 3,970,940 | 0.98 | - The company's controlling shareholder is **China Aviation Automobile System Holding Co, Ltd**, and the actual controller is **Aviation Industry Corporation of China, Ltd**[191](index=191&type=chunk)[193](index=193&type=chunk) [Financial Report](index=59&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the auditor's report, key financial statements, and selected notes for the fiscal year 2021 [Auditor's Report](index=59&type=section&id=%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The auditor issued a standard unqualified opinion on the 2021 financial statements, identifying revenue recognition and accounts receivable impairment as key audit matters - The auditor, Tianjian Certified Public Accountants (Special General Partnership), issued a **standard unqualified audit opinion**[4](index=4&type=chunk)[201](index=201&type=chunk) - Key audit matters included: - **Revenue Recognition**: Risk that sales revenue may not be recognized in the correct period - **Impairment of Accounts Receivable**: The significant amount of receivables and the management judgment involved in impairment testing[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) [Key Financial Statements](index=62&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) The company's financial position remained solid with total assets of RMB 3.32 billion and a healthy operating cash flow of RMB 233 million in 2021 Key Items from Consolidated Balance Sheet (Unit: RMB) | Item | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | 3,320,957,433.73 | 3,257,885,054.37 | | **Total Liabilities** | 500,459,956.73 | 477,920,838.88 | | **Total Equity Attributable to Parent Company** | 2,726,991,200.92 | 2,624,867,567.92 | Key Items from Consolidated Income Statement (Unit: RMB) | Item | 2021 | 2020 | | :--- | :--- | :--- | | **Total Operating Revenue** | 2,394,314,320.13 | 2,236,106,610.57 | | **Operating Profit** | 182,753,867.60 | 189,647,893.82 | | **Total Profit** | 179,082,301.54 | 184,314,190.07 | | **Net Profit** | 161,077,473.13 | 161,890,699.94 | | **Net Profit Attributable to Parent Company Shareholders** | 152,895,335.72 | 150,221,465.12 | Key Items from Consolidated Cash Flow Statement (Unit: RMB) | Item | 2021 | 2020 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 233,241,350.39 | 217,357,435.04 | | **Net Cash Flow from Investing Activities** | -94,999,649.95 | -50,342,195.91 | | **Net Cash Flow from Financing Activities** | -104,398,544.77 | -72,923,867.95 | | **Net Increase in Cash and Cash Equivalents** | 33,310,082.69 | 94,080,570.36 | [Notes to the Financial Statements (Excerpts)](index=80&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section highlights the adoption of the new lease standard and provides a breakdown of financial information by geographical segment - The company adopted the new lease standard on January 1, 2021, resulting in an increase of **RMB 5.12 million** in both right-of-use assets and lease liabilities at the beginning of the period[324](index=324&type=chunk)[326](index=326&type=chunk) Segment Financial Information for 2021 (Unit: RMB) | Item | Southwest China | North China | East China | Inter-segment Elimination | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **External Revenue** | 1,975,463,336.76 | 131,461,846.16 | 287,389,137.21 | | 2,394,314,320.13 | | **Total Profit** | 296,430,190.03 | 6,045,086.66 | 13,608,578.78 | 137,001,553.93 | 179,082,301.54 | | **Total Assets** | 4,057,414,422.15 | 167,801,611.83 | 244,052,184.62 | 1,148,310,784.87 | 3,320,957,433.73 | - The Board of Directors proposed a 2021 profit distribution plan to pay a cash dividend of **RMB 1.33 (tax included) per 10 shares**, totaling **RMB 53.77 million**, which represents **35.17%** of the net profit attributable to the parent company[5](index=5&type=chunk)[548](index=548&type=chunk)[549](index=549&type=chunk)

Major Financial Data [Key Accounting Data and Financial Indicators](index=1&type=section&id=Item%20(I)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q3 2021, the company's operating revenue decreased by 7.99% year-on-year, while year-to-date revenue grew by 12.79%; net profit attributable to shareholders decreased by 9.68% in Q3 but increased by 27.16% year-to-date, showing quarterly volatility versus annual growth; net cash flow from operating activities significantly increased by 174.78% year-to-date Key Financial Indicators for Q3 2021 and Year-to-Date | Item | Current Period (Q3) | YoY Change (%) in Current Period | Year-to-Date (YTD) | YoY Change (%) Year-to-Date | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 549,285,771.97 | -7.99 | 1,749,189,164.31 | 12.79 | | Net Profit Attributable to Shareholders (Yuan) | 42,774,954.72 | -9.68 | 128,963,573.26 | 27.16 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (Yuan) | 52,570,612.26 | 19.49 | 128,253,050.90 | 44.39 | | Net Cash Flow from Operating Activities (Yuan) | N/A | N/A | 179,553,856.98 | 174.78 | | Basic Earnings Per Share (Yuan/Share) | 0.11 | -8.33 | 0.32 | 28.00 | | Total Assets (Period-end) (Yuan) | 3,376,050,878.81 | 3.63 (vs. end of prior year) | | | | Shareholders' Equity Attributable to Listed Company (Period-end) (Yuan) | 2,674,862,156.40 | 1.90 (vs. end of prior year) | | | [Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=Item%20(II)%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) In the current period, total non-recurring gains and losses amounted to -9.80 million Yuan, primarily due to a -13.42 million Yuan loss from fair value changes in financial assets, partially offset by 2.31 million Yuan in government grants; year-to-date, total non-recurring gains and losses were 0.71 million Yuan, mainly from 6.94 million Yuan in government grants and -4.28 million Yuan in fair value changes of financial assets Details of Non-recurring Gains and Losses Items | Item | Current Period Amount (Yuan) | Year-to-Date Amount (Yuan) | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -341,780.90 | -1,024,430.71 | | Government Grants Included in Current Period P&L | 2,307,347.84 | 6,935,897.24 | | Fair Value Change Gains/Losses, etc | -13,419,127.48 | -4,279,541.04 | | Other Non-operating Income and Expenses | -30,762.29 | -490,207.96 | | **Total** | **-9,795,657.53** | **710,522.37** | [Analysis of Significant Changes in Key Financial Indicators](index=3&type=section&id=Item%20(III)%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Indicators) Several key financial indicators experienced significant year-on-year changes during the reporting period; contract liabilities surged by 1348.62% due to increased advance product payments, directly driving a 174.78% increase in net cash flow from operating activities; construction in progress grew by 102.81% due to new project investments, and investment income soared by 11216.54% from recognized dividends from associate companies Significant Changes in Key Financial Indicators and Reasons | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Contract Liabilities | 1,348.62 | Increase in advance product payments | | Net Cash Flow from Operating Activities | 174.78 | Increase in advance product payments in current period | | Other Receivables | 158.77 | Dividends receivable from associate companies by Huayang Electric Co | | Construction in Progress | 102.81 | Increase in new projects | | Investment Income | 11,216.54 | Recognition of dividends from associate companies in current period | | Fair Value Change Gains | -130.27 | Decrease in fair value of associate companies recognized in current period | Shareholder Information [Shareholding Status of Shareholders](index=4&type=section&id=Item%20(I)%20Total%20Number%20of%20Common%20Shareholders%20and%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%20and%20Top%20Ten%20Shareholders%27%20Shareholding%20Status) As of the end of the reporting period, the company had 15,347 common shareholders; the top two shareholders, China Aviation Automobile Systems Holding Co., Ltd. and China Guizhou Aviation Industry (Group) Co., Ltd., are state-owned legal entities under the same ultimate controller, holding a combined 46.29%, indicating a relatively concentrated equity structure - As of the end of the reporting period, the company had **15,347** common shareholders[10](index=10&type=chunk) Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Number of Shares Held | | :--- | :--- | :--- | :--- | | China Aviation Automobile Systems Holding Co., Ltd | State-owned Legal Entity | 37.01 | 149,623,188 | | China Guizhou Aviation Industry (Group) Co., Ltd | State-owned Legal Entity | 9.28 | 37,524,155 | | Guiyang Industrial Investment Group Co., Ltd | State-owned Legal Entity | 6.24 | 25,234,177 | | Linglong Group Co., Ltd | Unknown | 3.09 | 12,492,400 | - The top two shareholders are under the same ultimate controller, with no associated relationship with other shareholders[11](index=11&type=chunk) Other Significant Matters [Other Significant Matters](index=5&type=section&id=Item%20III.%20Other%20Significant%20Matters) During the reporting period, the company actively pursued several equity and organizational structure adjustments, including the conversion of Hongyang Sealing Company into a wholly-owned subsidiary (completed and consolidated in May), the acquisition of a 5.96% minority stake in controlling subsidiary Tianjin Daqi Company (state-owned asset filing completed), and plans to inject equity from two sealing subsidiaries into an associated party (asset appraisal filing in progress) - The company is undergoing a series of organizational structure and equity adjustments, primarily involving subsidiaries[12](index=12&type=chunk) - **Hongyang Sealing Company Restructuring**: Converted into a wholly-owned subsidiary and consolidated in **May 2021** - **Acquisition of Minority Stake**: State-owned asset filing completed for the acquisition of a **5.96%** stake in controlling subsidiary Tianjin Daqi Company - **Capital Increase for Associated Party**: Plans to inject equity from Guizhou Hongyang and Shanghai Hongyang, two sealing subsidiaries, into an associated party; asset appraisal filing is in progress Quarterly Financial Statements [Audit Opinion](index=5&type=section&id=Item%20(I)%20Audit%20Opinion%20Type) The quarterly financial statements are unaudited - The quarterly financial statements are **unaudited**[3](index=3&type=chunk)[13](index=13&type=chunk) [Financial Statements](index=5&type=section&id=Item%20(II)%20Financial%20Statements) This section presents core data from the consolidated balance sheet as of September 30, 2021, and the consolidated income statement and consolidated cash flow statement for January-September 2021 [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2021, total assets were 3.38 billion Yuan, up 3.63% from the prior year-end; total liabilities were 0.55 billion Yuan, up 14.40%, primarily driven by a significant increase in contract liabilities; shareholders' equity attributable to the listed company was 2.67 billion Yuan, up 1.90% from the prior year-end Key Items from Consolidated Balance Sheet | Item | September 30, 2021 (Yuan) | December 31, 2020 (Yuan) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **3,376,050,878.81** | **3,257,885,054.37** | **+3.63%** | | Total Current Assets | 2,067,824,210.70 | 1,943,831,255.55 | +6.38% | | Total Non-current Assets | 1,308,226,668.11 | 1,314,053,798.82 | -0.44% | | **Total Liabilities** | **546,735,137.99** | **477,920,838.88** | **+14.40%** | | Total Current Liabilities | 519,249,065.21 | 452,802,421.20 | +14.68% | | **Total Owners' Equity** | **2,829,315,740.82** | **2,779,964,215.49** | **+1.78%** | | Owners' Equity Attributable to Parent Company | 2,674,862,156.40 | 2,624,867,567.92 | +1.90% | [Consolidated Income Statement](index=8&type=section&id=Consolidated%20Income%20Statement) For the first three quarters of 2021, the company achieved operating revenue of 1.75 billion Yuan, a 12.79% year-on-year increase; operating costs increased by 11.37%, with a slight improvement in gross margin; during the period, administrative expenses and R&D expenses grew by 14.6% and 21.2% respectively; ultimately, net profit attributable to shareholders reached 0.13 billion Yuan, up 27.16% year-on-year Key Items from Consolidated Income Statement (Q1-Q3 2021) | Item | Jan-Sep 2021 (Yuan) | Jan-Sep 2020 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,749,189,164.31 | 1,550,900,741.80 | +12.79% | | Total Operating Costs | 1,604,233,632.54 | 1,435,549,171.98 | +11.75% | | Operating Profit | 159,694,216.61 | 124,460,640.62 | +28.31% | | Total Profit | 159,204,008.65 | 121,440,165.75 | +31.10% | | Net Profit | 134,406,707.85 | 106,701,310.45 | +25.97% | | Net Profit Attributable to Parent Company Shareholders | 128,963,573.26 | 101,415,418.03 | +27.16% | | Basic Earnings Per Share (Yuan/Share) | 0.32 | 0.25 | +28.00% | [Consolidated Cash Flow Statement](index=10&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the first three quarters of 2021, net cash flow from operating activities was 0.18 billion Yuan, a significant 174.78% year-on-year increase, primarily due to increased cash received from sales; net cash outflow from investing activities was 64.42 million Yuan, driven by increased expenditures on fixed asset purchases; net cash outflow from financing activities was 94.86 million Yuan, mainly for dividend distribution; cash and cash equivalents balance at period-end was 0.62 billion Yuan Key Items from Consolidated Cash Flow Statement (Q1-Q3 2021) | Item | Jan-Sep 2021 (Yuan) | Jan-Sep 2020 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 179,553,856.98 | 65,343,658.02 | +174.78% | | Net Cash Flow from Investing Activities | -64,417,684.97 | -50,956,819.88 | -26.42% | | Net Cash Flow from Financing Activities | -94,861,804.34 | -72,686,182.09 | -30.51% | | Net Increase in Cash and Cash Equivalents | 20,025,828.71 | -58,262,117.97 | N/A | | Cash and Cash Equivalents at Period-end | 620,099,656.12 | 447,731,139.08 | +38.50% | [Impact of Initial Adoption of New Lease Standards](index=11&type=section&id=Item%20(III)%20Adjustments%20to%20Financial%20Statements%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Initial%20Adoption%20of%20New%20Lease%20Standards%20from%202021) The company adopted new lease standards from January 1, 2021, retrospectively adjusting the financial statements at the date of initial application (January 1, 2021) by recognizing 1.56 million Yuan in 'right-of-use assets' and corresponding liabilities of 1.07 million Yuan in 'non-current liabilities due within one year' and 0.49 million Yuan in 'lease liabilities', with no impact on owners' equity - The company adopted the new Lease Standard (CAS 21 – Leases) issued by the Ministry of Finance, effective **January 1, 2021**[26](index=26&type=chunk)[27](index=27&type=chunk) Adjustments on Initial Adoption Date of New Lease Standards | Adjustment Item | Adjusted Amount (Yuan) | | :--- | :--- | | **Assets** | | | Right-of-use Assets | +1,557,775.33 | | **Liabilities** | | | Non-current Liabilities Due Within One Year | +1,065,891.54 | | Lease Liabilities | +491,883.79 | | **Total Impact** | **Assets and Liabilities both increased by 1,557,775.33 Yuan** |

Financial Performance - The company's operating revenue for 2020 was CNY 2,236,106,610.57, representing a 1.27% increase compared to CNY 2,207,998,805.40 in 2019[22]. - The net profit attributable to shareholders for 2020 was CNY 150,221,465.12, an increase of 11.19% from CNY 135,103,771.98 in 2019[22]. - The net profit after deducting non-recurring gains and losses was CNY 132,937,078.72, which is a 39.00% increase from CNY 95,635,318.11 in 2019[22]. - The net cash flow from operating activities for 2020 was CNY 217,357,435.04, up 26.43% from CNY 171,919,593.98 in 2019[22]. - The total assets at the end of 2020 were CNY 3,257,885,054.37, a 2.89% increase from CNY 3,166,411,051.06 at the end of 2019[23]. - The net assets attributable to shareholders at the end of 2020 were CNY 2,624,867,567.92, reflecting a 3.25% increase from CNY 2,542,151,936.42 at the end of 2019[23]. - Basic earnings per share for 2020 were CNY 0.37, a 12.12% increase from CNY 0.33 in 2019[24]. - The weighted average return on equity for 2020 was 5.81%, an increase of 0.22 percentage points from 5.59% in 2019[24]. - Total profit for the year reached 184 million yuan, representing a year-on-year growth of 17.51%[43]. - Operating cash flow improved by 26.43% to 217 million yuan[43]. - The company reported a net profit of 150,221,465.12 RMB for 2020, with a cash dividend payout ratio of 53.83%[99]. Revenue and Sales Growth - In Q1 2020, the company reported revenue of ¥421,898,935.12, which increased to ¥685,205,868.77 by Q4 2020, reflecting a growth of approximately 62.5% over the year[25]. - The net profit attributable to shareholders was ¥772,198.82 in Q1 2020, reaching ¥48,806,047.09 by Q4 2020, indicating a significant increase in profitability[25]. - The company achieved a 33.04% increase in revenue from aviation products[44]. - New orders increased by 36%, with 251 new projects, including 16% in the new energy sector[45]. - The sales volume of automotive sealing strips reached 5,770 million meters, reflecting a year-on-year increase of 2.34%[81]. Cost Management and Efficiency - Operating costs decreased by 1.14% to ¥1,677,290,359.33 from ¥1,696,636,705.27, leading to improved profit margins[57]. - The total cost of main business decreased by 15.39% compared to the previous year, amounting to 365,319,982.79 CNY[64]. - Direct material costs for the sealing system decreased by 13.26% year-over-year, totaling 248,088,800.31 CNY[64]. - The overall main business cost for the electronic and electrical category increased by 11.71% year-over-year, amounting to 851,344,535.58 CNY[64]. Investment and Financial Management - The company engaged in a loan of CNY 40 million to a related party at an interest rate of 4%, which was fully repaid along with interest by November 2020[7]. - The company reported a significant increase in cash received from investment activities, totaling 308,772,516.27, up 2707.02% year-on-year[71]. - The company provided a total of 4,000 million RMB in entrusted loans at an interest rate of 4%, earning 1.1 million RMB in interest income[114]. - The company has committed to enhancing its financial management through various investment strategies, including trust and loan management[112]. Research and Development - Research and development expenses amounted to 88,619,050.39, representing 3.96% of total revenue[69]. - The company has committed to building a research and development platform and establishing manufacturing bases in industrial clusters[91]. - The company has 447 R&D personnel, making up 9.61% of the total workforce[69]. Corporate Governance and Compliance - The company has established a clear governance structure that complies with relevant laws and regulations, enhancing operational transparency[156]. - The internal control audit report issued by Tianjian Accounting Firm provided a standard unqualified opinion[166]. - The company confirmed that there were no insider trading incidents during the reporting period[161]. - The company has not identified any significant deficiencies in internal control during the reporting period[165]. Environmental and Social Responsibility - The company has established a wastewater treatment facility with a capacity of 240 tons per day, ensuring compliance with environmental standards[124]. - The company has implemented a comprehensive air pollution control system, with daily monitoring to ensure compliance with emission standards[125]. - The company is actively engaged in poverty alleviation efforts, including direct procurement of agricultural products from poverty-stricken villages[116]. - The company has committed to ongoing support for poverty alleviation projects, including purchasing agricultural products from poverty-stricken areas and organizing educational camps[122]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 17,649, an increase from 17,154 at the end of the previous month[131]. - The largest shareholder, China Aviation Automobile System Holding Co., Ltd., held 149,623,188 shares, representing 37.01% of the total shares[133]. - The total number of shares held by the board members at the end of the reporting period is 31,080 shares, unchanged from the beginning of the period[143]. Employee Management - The total number of employees in the parent company is 1,651, while the total number of employees in major subsidiaries is 2,758, resulting in a combined total of 4,409 employees[151]. - The company has implemented a performance-based salary system that links employee compensation closely with corporate performance[152]. - The company has a training plan aimed at improving the skills and qualifications of its employees across various levels[153].

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 1,429,765,565.38, a decrease of 15.91% compared to CNY 1,700,310,698.12 in the same period last year[20] - The net profit attributable to shareholders for the first half of 2018 was CNY 75,058,188.3, down 23.78% from CNY 98,470,762.20 in the previous year[20] - The net cash flow from operating activities decreased by 46.08%, amounting to CNY 78,563,924.11 compared to CNY 145,713,527.08 in the same period last year[20] - The basic earnings per share for the first half of 2018 was CNY 0.19, a decline of 20.83% from CNY 0.24 in the previous year[22] - The diluted earnings per share also stood at CNY 0.19, reflecting the same percentage decrease of 20.83% compared to the previous year[22] - The weighted average return on net assets decreased by 1.3 percentage points to 3.32% from 4.62% in the same period last year[22] - The total profit for the period was 90.27 million yuan, completing 34.72% of the annual budget of 260 million yuan, with a year-on-year decline of 21.64%[36] - The company reported a decrease of 23.65% in net profit after deducting non-recurring gains and losses, amounting to CNY 73,063,620.74 compared to CNY 95,695,150.10 in the previous year[20] Assets and Liabilities - The total assets at the end of the reporting period were CNY 3,556,075,946.14, a decrease of 2.80% from CNY 3,658,589,143.27 at the end of the previous year[21] - The net assets attributable to shareholders at the end of the reporting period were CNY 2,258,561,452.14, an increase of 0.75% from CNY 2,241,785,141.04 at the end of the previous year[21] - The company's total current assets as of June 30, 2018, amount to 2,404,989,700.46 RMB, a decrease from 2,500,655,298.33 RMB at the beginning of the period[92] - The total liabilities decreased to CNY 467,188,616.55 from CNY 514,566,228.22, a reduction of approximately 9.2%[98] - The company's equity totaled CNY 1,627,340,674.94, down from CNY 1,682,954,352.47, reflecting a decrease of about 3.3%[98] Cash Flow - The net cash flow from investment activities was positive at ¥4,453,741.81, compared to a negative cash flow of ¥48,333,359.03 in the previous year[39] - The company reported a net cash inflow from investment activities of CNY 4,453,741.81, compared to a net outflow of CNY 48,333,359.03 in the same period last year[104] - The cash and cash equivalents at the end of the reporting period are 464,728,027.44 RMB, up from 441,997,784.06 RMB at the beginning of the period[92] - The ending balance of cash and cash equivalents rose to ¥242,105,865.52 from ¥186,030,891.69, marking an increase of approximately 30.2%[107] Research and Development - R&D expenditure increased by 9.15% to ¥61,707,542.37, up from ¥56,532,515.94[38] - The company plans to enhance product development speed and increase R&D investment to improve innovation and collaboration capabilities[36] Cost Management - The company realized cost reductions of 63.94 million yuan, a year-on-year increase of 52.7%[36] - Operating costs fell by 16.97% to ¥1,114,185,696.16, down from ¥1,341,871,370.14[39] Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 22,508[80] - The company completed a capital reserve conversion to increase total share capital from 288,793,800 shares to 404,311,320 shares, with a distribution of 115,517,520 shares to shareholders[77] - The company did not propose any profit distribution plan or capital reserve transfer to increase share capital during the reporting period[5] Environmental and Social Responsibility - The company has implemented a wastewater treatment facility with a capacity of 240 tons per day, currently processing approximately 60 tons per day[68] - The company has committed to continuing its poverty alleviation efforts through educational support and training programs in the upcoming years[66] - The company has supported 24 students under the "Eagle Plan" for university assistance, with a total funding of 127,500 RMB in the first half of the year[64] Legal and Compliance - There were no significant lawsuits or arbitration matters during the reporting period, indicating a stable legal environment for the company[51] - The company has maintained good integrity status, with no instances of failing to fulfill court judgments or significant debts that remain unpaid[51] Corporate Governance - The company's financial statements were approved by the board on August 24, 2018, ensuring compliance with accounting standards[126] - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[83] Accounting Policies - The company follows specific accounting policies for accounts receivable, inventory valuation, and impairment of available-for-sale equity instruments[130] - The company includes all subsidiaries in its consolidated financial statements, starting from the date of actual control acquisition[139]

Financial Performance - Operating revenue fell by 26.62% to CNY 671,973,757.20 year-on-year[6] - Net profit attributable to shareholders decreased by 65.25% to CNY 11,449,090.17 compared to the same period last year[6] - Basic earnings per share decreased by 63.64% to CNY 0.04[6] - The total profit for Q1 2018 decreased by 56.68% to CNY 18,797,893.97 compared to CNY 43,389,739.69 in the same period last year[12] - The company's operating revenue for Q1 2018 was CNY 191,320,633.13, a decrease of 40.1% compared to CNY 319,506,529.10 in the same period last year[28] - The net profit for Q1 2018 was CNY 14,199,186.01, down 61.7% from CNY 37,113,379.12 in the previous year[27] - The total comprehensive income for Q1 2018 was CNY 14,199,186.01, down 61.7% from CNY 37,113,379.12 in the previous year[27] Cash Flow - Net cash flow from operating activities dropped significantly by 98.78% to CNY 346,613.58[6] - Operating cash flow net amount dropped by 98.78% to CNY 346,613.58 due to a decline in sales revenue and reduced cash collection[12] - The cash inflow from operating activities was CNY 830,144,643.44, a decrease of 6.4% from CNY 887,171,979.35 in the same period last year[31] - The net cash flow from operating activities was -2,256,443.22 RMB, a decrease from 18,766,697.64 RMB in the previous period[35] - Total cash inflow from operating activities was 287,449,021.04 RMB, down 16.8% from 345,525,677.73 RMB[35] - Cash outflow from operating activities totaled 289,705,464.26 RMB, a decrease of 11.3% compared to 326,758,980.09 RMB[35] Assets and Liabilities - Total assets decreased by 2.93% to CNY 3,551,402,205.48 compared to the end of the previous year[6] - Non-current assets totaled CNY 1,237,915,664.81, slightly down from CNY 1,239,232,535.43 at the beginning of the year[23] - Total liabilities amounted to CNY 485,932,833.02, a decrease of 5.6% from CNY 514,566,228.22 at the beginning of the year[24] - The company's cash and cash equivalents were CNY 187,278,007.08, down from CNY 202,215,282.45 at the start of the year, representing a decline of 7.5%[22] - Accounts receivable decreased to CNY 266,435,922.79 from CNY 280,538,629.59, a reduction of 5.0%[22] - Inventory increased to CNY 543,220,952.58 from CNY 471,723,494.72, indicating a rise in stock levels[18] Shareholder Information - The total number of shareholders reached 24,420 at the end of the reporting period[9] - The largest shareholder, China Aviation Automobile Systems Holding Company, holds 37.01% of shares[9] Operational Challenges and Strategies - The company reported a 55.94% decrease in taxes payable, primarily due to a decline in sales revenue[11] - The company's financial expenses were not applicable as there were no interest-bearing debts, resulting in a significant reduction from CNY 1,064,995.57 in the previous year[12] - Asset impairment losses surged by 712.10% to CNY 1,745,126.70, primarily due to increased bad debt provisions[12] - The company is focusing on "cost reduction and efficiency enhancement" to improve profitability[13] - The company has engaged with major clients like SAIC Volkswagen and FAW Volkswagen to secure new product orders[13] - The company has been actively working on divesting non-core investments and streamlining operations[14] Future Outlook - The company expects improved operating conditions in Q2 2018, with significant growth anticipated in Q3 and Q4[13]

Financial Performance - In 2017, the company achieved operating revenue of CNY 3,391,140,353.89, representing a year-on-year increase of 0.89% compared to CNY 3,361,211,067.89 in 2016[21] - The net profit attributable to shareholders of the listed company for 2017 was CNY 194,257,074.00, an increase of 12.13% from CNY 173,239,507.50 in 2016[21] - Basic earnings per share increased by 11.66% to CNY 0.67 compared to CNY 0.60 in the previous year[23] - The total profit for 2017 was 240 million yuan, a year-on-year increase of 10.92%, exceeding the annual target[42] - The company secured new orders worth 2.564 billion yuan in 2017, which is a 4.35% increase compared to the previous year[44] - The company's asset-liability ratio decreased from 38.48% to 32.72% in 2017, indicating improved financial stability[44] - The company reported a net profit margin improvement, with net profit increasing to CNY 168,820,132.16, compared to CNY 162,000,000.00 in the previous year, reflecting a growth of about 4.99%[200] Cash Flow and Assets - The net cash flow from operating activities decreased by 38.33% to CNY 278,464,864.31 in 2017, down from CNY 451,520,693.36 in 2016[22] - The total assets of the company at the end of 2017 were CNY 3,658,589,143.27, a decrease of 3.22% from CNY 3,780,466,787.27 at the end of 2016[22] - The company's cash and cash equivalents decreased by 5.98% to CNY 441,997,784.06, representing 12.08% of total assets[69] - Accounts receivable increased by 3.32% to CNY 982,412,569.27, which is 26.85% of total assets[69] - Inventory decreased by 27.36% to CNY 471,723,494.72, accounting for 12.89% of total assets[69] - The total current assets decreased from CNY 2,626,990,175.16 to CNY 2,500,655,298.33, a decline of approximately 4.8%[192] Dividends and Share Capital - The company plans to distribute a cash dividend of CNY 2.08 per 10 shares, totaling CNY 60,069,110.40, based on a total share capital of 288,793,800 shares[5] - The company intends to increase its share capital by transferring 4 shares for every 10 shares held, resulting in an increase of 115,517,520 shares, raising the total share capital to 404,311,320 shares[5] Research and Development - The company has increased its R&D expenditure year-on-year, reflecting its commitment to technological innovation[48] - Research and development expenses increased by 18.18% to CNY 121,574,762.36 from CNY 102,875,124.89 year-on-year[52] - The total R&D expenditure for the period was CNY 121,574,762.36, accounting for 3.59% of total revenue[65] - The company is focusing on the development of key components for new energy vehicles, aligning with national strategic directions[37] Operational Efficiency - The company completed fixed asset investments of 159 million yuan in 2017, enhancing its operational capacity and efficiency[44] - The company has initiated a series of projects to enhance product quality and operational management, resulting in a reduction of quality loss rate by 0.18 percentage points[44] - The total cost of main business decreased by 3.29% to ¥805,559,874.54 compared to the previous year[60] - The overall sales expenses decreased by 3.02% to ¥143,899,607.78 compared to the previous year[63] Governance and Compliance - The company has maintained a transparent information disclosure system, ensuring that all shareholders have equal access to information[163] - The board of directors has effectively fulfilled its responsibilities, with independent directors playing a crucial role in major decision-making processes[162] - The company has successfully revised its governance structure to integrate party leadership into corporate governance, enhancing overall governance effectiveness[161] Social Responsibility - The company actively engaged in poverty alleviation efforts as part of its social responsibility initiatives[119] - The company invested a total of RMB 44.6 million in poverty alleviation efforts, with RMB 4.8 million specifically allocated to designated projects[122] - A total of 23 impoverished students received financial assistance amounting to RMB 398,000[123] Employee and Management Structure - The total number of employees in the parent company is 2,899, while the total number of employees in major subsidiaries is 4,013, resulting in a combined total of 6,912 employees[156] - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 4.1221 million yuan[153] - The company has established a comprehensive and reasonable compensation system to enhance employee motivation and career advancement opportunities[157] Market Position and Strategy - The company emphasizes a strategy of market-oriented new product development to optimize product structure and expand market share[89] - The company is exploring market expansion opportunities to increase its footprint in the aviation industry[147] - The company has a strategic focus on mergers and acquisitions to enhance its capabilities and market position[147]