AVICHM(600765)2024-08-29 13:23Financial Performance - Revenue for the first half of 2024 was RMB 5.472 billion, a decrease of 0.59% compared to the same period last year[20] - Net profit attributable to shareholders was RMB 722.75 million, down 7.02% year-on-year[20] - Basic earnings per share (EPS) for the reporting period was RMB 0.49, a decrease of 7.55% compared to the same period last year[21] - Weighted average return on equity (ROE) was 6.07%, down 1.17 percentage points year-on-year[22] - Operating cash flow for the reporting period was negative RMB 513.35 million, compared to positive RMB 197.61 million in the same period last year[20] - Net profit attributable to shareholders of the listed company for the reporting period was 722.7496 million yuan, a year-on-year decrease of 7.02%, with Q2 net profit of 401.3064 million yuan, a quarter-on-quarter increase of 24.85%, mainly affected by product price cycle fluctuations and the consolidation of Hongshan Company[23] - Basic earnings per share and diluted earnings per share decreased by 7.55% and 11.32% year-on-year, respectively, mainly due to the implementation of the second phase of the restricted stock incentive plan, which increased the share capital by 10.72 million shares[23] - Weighted average return on equity and diluted return on equity decreased by 1.17 percentage points and 1.45 percentage points year-on-year, respectively, due to the consolidation of Hongshan Company[23] - The company's total revenue for the first half of 2024 was 5.472 billion yuan, a slight decrease of 0.59% compared to the same period last year[43] - Operating income slightly decreased from 5,504,280,185.37 yuan to 5,472,030,947.41 yuan, showing a minor decline in revenue[149] - Net profit attributable to the parent company increased from 5,294,368,271.26 yuan to 5,618,537,604.64 yuan, indicating improved profitability[144] - Net profit attributable to parent company shareholders decreased to 722,749,603.18 yuan from 777,321,783.66 yuan, a decline of 7.02%[151] - Total comprehensive income for the period was 762,078,435.37 yuan, compared to 827,685,984.08 yuan in the previous year, a decrease of 7.93%[151] - Basic earnings per share (EPS) decreased to 0.49 yuan from 0.53 yuan, a drop of 7.55%[151] - Operating profit declined to 852,916,369.62 yuan from 960,365,870.12 yuan, a decrease of 11.19%[150] - Total revenue for the period was 4,317,473.25 yuan, down from 4,719,021.11 yuan, a decrease of 8.51%[153] - Investment income increased to 620,189,756.03 yuan from 546,088,006.90 yuan, a growth of 13.57%[154] - Management expenses rose to 343,273,618.94 yuan from 339,012,459.48 yuan, an increase of 1.26%[150] - Financial expenses surged to 16,616,033.35 yuan from 3,543,557.35 yuan, a significant increase of 369.06%[150] - Credit impairment losses improved to -139,075,528.20 yuan from -173,911,942.52 yuan, a reduction of 20.03%[150] - Operating cash flow from sales of goods and services decreased to 3.153 billion RMB in H1 2024 from 4.039 billion RMB in H1 2023, a decline of 21.9%[156] - Net cash flow from operating activities turned negative at -513.3 million RMB in H1 2024 compared to positive 197.6 million RMB in H1 2023[157] - Cash outflow for employee compensation increased by 14% to 707.0 million RMB in H1 2024 from 620.4 million RMB in H1 2023[157] - Investment cash inflow decreased significantly to 8.26 million RMB in H1 2024 from 30.51 million RMB in H1 2023, a 72.9% drop[157] - Cash outflow for fixed assets and intangible assets increased by 24.5% to 363.2 million RMB in H1 2024[157] - Net cash flow from financing activities was -317.5 million RMB in H1 2024, compared to positive 28.7 million RMB in H1 2023[158] - Cash and cash equivalents decreased by 1.191 billion RMB in H1 2024, ending at 3.955 billion RMB[158] - Parent company's investment cash inflow increased to 373.9 million RMB in H1 2024 from 354.2 million RMB in H1 2023[161] - Parent company's net cash flow from investment activities decreased to 169.7 million RMB in H1 2024 from 221.6 million RMB in H1 2023[161] - Parent company's cash and cash equivalents decreased by 173.3 million RMB in H1 2024, ending at 1.357 billion RMB[161] - Total comprehensive income for the first half of 2024 reached RMB 722,859,878.32, with a net profit attributable to the parent company of RMB 722,749,603.18[166] - Owner's equity increased by RMB 493,837,760.19 during the period, driven by capital contributions and retained earnings[164] - The company allocated RMB 398,580,269.80 for profit distribution, including dividends to shareholders[166] - Capital reserves increased by RMB 141,030,607.33, primarily due to equity investments and share-based payments[164][166] - Minority shareholders' equity increased by RMB 3,340,824.80, reflecting their share of the company's profits[164] - Special reserves increased by 17,807,544.34, reaching a total of 18,000,286.79[169] - Total comprehensive income for the period amounted to 777,321,783.66[170] - Owner's equity increased by 15,895,473.08, with a net increase of 15,590,023.99 after adjustments[170] - Profit distribution to owners (or shareholders) amounted to -242,888,099.85[171] - Total owner's equity at the end of the period was 12,752,267,604.68[169] - Capital reserve increased by 14,523,441.90[170] - General risk provision decreased by 34,052,010.18[171] - Total assets at the end of the period were 11,981,938,335.78[169] - Net profit attributable to the parent company was 534,433,683.81[170] - Minority interest decreased by 305,449.09[170] - Total comprehensive income for the period amounted to 580,460,126.08 RMB[176] - Owner's equity at the end of the period was 6,936,992,947.64 RMB[179] - Capital reserve increased by 140,917,377.88 RMB during the period[176] - Special reserve usage for the period was -9,107,088.57 RMB[173] - Total owner's equity at the beginning of the period was 6,603,475,713.48 RMB[176] - Profit distribution to owners amounted to -398,580,269.80 RMB[177] - Owner's investment in ordinary shares increased by 10,720,000.00 RMB[176] - Share-based payment included in owner's equity was 9,811,777.88 RMB[177] - Retained earnings at the end of the period were 966,124,761.88 RMB[179] - Special reserve balance at the end of the period was 13,933,672.32 RMB[173] - Total comprehensive income for the period increased by 497,054,000.35 RMB[180] - Owner's equity increased by 1,372,031.18 RMB due to capital contributions[180] - Profit distribution decreased owner's equity by 242,888,099.85 RMB[181] - Total owner's equity at the end of the period reached 6,402,134,082.58 RMB[183] Business Segments and Revenue - Civil aviation revenue increased by 112.62% year-on-year, while civil product revenue grew by 26.25%[22] - The company's business is gradually diversifying, with commercial and civil engineering entering a rapid development phase[22] - The company's forging business covers various industries including aviation, aerospace, power, and automotive, with domestic products including aircraft structural forgings and engine components, and international products including engine forgings for GE, Rolls-Royce, and aircraft forgings for Boeing and Airbus[30] - The company's hydraulic and thermal management business includes high-pressure piston pumps and motors, widely used in aviation, aerospace, and engineering machinery, with some products exported to Europe and the US, and thermal exchangers used in various military and civilian fields[32] - The forging and casting business revenue for the first half of 2024 was 4.396 billion yuan, a decrease of 2.61% year-on-year[39] - The hydraulic and environmental control business revenue for the first half of 2024 was 1.076 billion yuan, an increase of 8.65% year-on-year, with non-aviation business growing by 12.32%[40] - The company developed over 2,300 new products in the forging and casting business, a year-on-year increase of approximately 15%[39] - Shaanxi Hongyuan Aviation Forging Co., Ltd. achieved a 115% growth in civil aviation business orders and revenue in the first half of the year[57] - Guizhou Anda Aviation Forging Co., Ltd. doubled its business revenue by focusing on civil aviation opportunities[58] - Jiangxi Jinghang Aviation Forging Co., Ltd. successfully developed a high-pressure turbine shaft forging and achieved breakthroughs with 2 major customers[58] - Zhonghang Liyuan Hydraulic Co., Ltd. secured 3 million RMB in R&D funding for a UAV hydraulic subsystem project[59] - Guizhou Yonghong Aviation Machinery Co., Ltd. secured future orders exceeding 150 million RMB through strategic cooperation[59] Investments and Capital Expenditures - Two large forging equipment certifications are progressing smoothly, with capacity expected to be gradually released in the second half of 2024[22] - Hongshan Company completed the on-site inspection for production qualification in June 2024 and is expected to achieve production and delivery of related products in the second half of 2024[27] - Hongshan Company signed long-term agreements with Safran, Baker Hughes, and Rolls-Royce, adding approximately 70 million yuan in annual orders, and reached multiple R&D cooperation agreements with Boeing for titanium alloy structural parts, potentially adding 20 million yuan in annual orders upon mass production[27] - The company plans to invest 365.6 million yuan in cash to increase the capital of its wholly-owned subsidiary, Heavy Machinery Aerospace Materials Engineering (Guizhou) Co., Ltd., for capacity enhancement projects[47] - The investment price for the capital increase is 1.10 yuan per registered capital, with 332.36 million yuan added to registered capital and 33.24 million yuan as capital surplus[47] - The company invested 1.432 billion yuan in the construction of the Xi'an New District Advanced Forging Industry Base, with 68.05 million yuan from its own funds, and the project has been fully put into use[51] - The civil aviation ring forging production line project in Guizhou, with a total investment of 450 million yuan, has been completed and put into use[51] - The national key equipment hydraulic basic parts supporting production capacity construction project in Guiyang, with a total investment of 303.64 million yuan, has been completed and put into use[51] - The military-civilian dual-use aviation high-efficiency heat exchanger and integrated production capacity construction project in Guiyang, with a total investment of 69.8 million yuan, has been completed and put into use[51] - The aviation precision forging industry transformation and upgrading project in Xi'an, with a total investment of 805 million yuan, has seen the main equipment 450MN precision forging machine installed and put into use[52] - The special material isothermal forging production line project in Anshun, with a total investment of 640.45 million yuan, is facing delays due to import procurement issues and is exploring domestic alternatives[53] - The company's total raised funds amount to RMB 3,237,273,458.96, with a net amount of RMB 3,171,503,458.96 after deducting issuance costs. The cumulative investment in raised funds as of the reporting period is RMB 2,149,969,118.88[113] - The total amount of funds raised for specific projects is 317,150.35 million yuan, with 214,996.91 million yuan already invested, achieving an investment progress of 67.8%[118] - The advanced forging industrial base construction project in Xi'an New District has completed 100.05% of its planned investment, with a total investment of 75,154.35 million yuan[116] - The civil aviation ring forging production line construction project has completed 100% of its planned investment, with a total investment of 40,000 million yuan[116] - The national key equipment hydraulic foundation supporting production capacity construction project has completed 100.06% of its planned investment, with a total investment of 10,000 million yuan[118] - The military and civilian dual-use aviation high-efficiency heat exchanger and integrated production capacity construction project has completed 100% of its planned investment, with a total investment of 5,000 million yuan[118] - The aviation precision forging industry transformation and upgrading project has completed 52.60% of its planned investment, with a total investment of 80,500 million yuan[118] - The special material isothermal forging production line construction project has not started due to import procurement issues, with a planned investment of 64,044.92 million yuan[118] Shareholder and Equity Information - The company issued 10,720,000 restricted shares to 306 incentive objects as part of the A-share restricted stock incentive plan (second phase)[123] - Total number of ordinary shareholders at the end of the reporting period: 76,030[126] - Top shareholder: Guizhou Jinjiang Aviation Hydraulic Co., Ltd., holding 321,116,880 shares, accounting for 21.67% of total shares[128] - Second largest shareholder: China Guizhou Aviation Industry (Group) Co., Ltd., holding 90,354,320 shares, accounting for 6.1% of total shares[128] - Third largest shareholder: AVIC Industrial Financial Holdings Co., Ltd., holding 75,563,636 shares, accounting for 5.1% of total shares[128] - Central Enterprise Rural Industry Investment Fund Co., Ltd. holds 28,707,997 shares, accounting for 1.94% of total shares[128] - AVIC General Aircraft Co., Ltd. holds 24,618,992 shares, accounting for 1.66% of total shares[128] - Guizhou Gaike Aviation Electromechanical Co., Ltd. holds 19,034,864 shares, accounting for 1.28% of total shares[128] - National Social Security Fund 418 Portfolio holds 18,815,259 shares, accounting for 1.27% of total shares[128] - AVIC Aviation Technology Co., Ltd. holds 16,412,661 shares, accounting for 1.11% of total shares[128] - Hong Kong Securities Clearing Company Ltd. holds 14,255,364 shares, accounting for 0.96% of total shares[128] - The company's A-share restricted stock incentive plan (Phase II) granted a total of 690,000 restricted shares to directors and senior management on January 22, 2024[134] - Directors and senior management collectively increased their holdings by 110,400 shares through a share purchase plan implemented on February 2, 2024[135] - The company was established in 1996 with an initial total share capital of 51.10 million shares[186] - The company implemented a share reform in 2006, resulting in a total share capital of 108.543 million shares[187] - In 2007, the company issued additional shares, increasing the registered capital by 70.7914 million RMB[188] - The company's total share capital reached 358,668,800 shares after a capital reserve transfer in 2008[189] - The company changed its name to "AVIC Heavy Machinery Co., Ltd." and established a subsidiary "AVIC Liyuan Hydraulics Co., Ltd." with a 99.95% stake[190] - In 2009, the company issued 160 million new shares at RMB 10.50 per share, raising a total of RMB 1.68 billion, with net proceeds of RMB 1.607 billion[190] - In 2010, the company increased its share capital by 259.33 million shares through a capital reserve transfer, bringing the total share capital to 778 million shares[191] - In 2019, the company issued 155.6 million new shares at RMB 8.53 per share, raising RMB 1.327 billion, with net proceeds of RMB 1.302 billion[192] - As of 2019, the company's total share capital was 778 million shares, all of which were tradable[193] - In 2020, the company granted 7.77 million restricted shares to 115 incentive recipients at RMB 6.89 per share[195] - As of 2020, the company's total share capital was 939.68 million shares, with 161.68 million shares being restricted[196] - In 2021, the company issued 111.96 million new shares at RMB 17.06 per share, raising RMB 1.91 billion, with net proceeds of RMB 1.872 billion[197] - As of 2021, the company's total share capital was 1.052 billion shares, with 194.24 million shares being restricted[198] - In 2022, the company increased its share capital by 420.66 million shares through a capital reserve transfer, bringing the total share capital to 1.472 billion shares[200] Assets and Liabilities - Total assets as of the end of the reporting period were RMB 25.979 billion, an increase of 2.