AVICOPTER(SH:600038)2015-03-30 16:00Financial Performance - The company achieved a net profit of 33,186 million RMB in 2014, with a net profit attributable to the parent company of 33,184 million RMB[2]. - The company reported a total distributable profit of 96,605 million RMB after extracting surplus reserves and distributing cash dividends[2]. - The company achieved a total revenue of RMB 12,455,436,126.10 in 2014, representing a 15.00% increase compared to RMB 10,830,674,602.47 in 2013[23]. - The net profit attributable to shareholders reached RMB 331,840,293.14, marking a 34.22% increase from RMB 247,232,896.22 in the previous year[23]. - The basic earnings per share increased by 14.46% to RMB 0.5629 from RMB 0.4918 in 2013[24]. - The company’s total operating costs for 2014 were RMB 11,209,911.4 million, reflecting a 14.95% increase from the previous year[29]. - The company reported a net cash flow from operating activities of -RMB 256,421,854.19, compared to RMB 231,033,233.81 in 2013, indicating a significant change[33]. - The company reported a net cash decrease of ¥50,645.3 million for the year, with net cash flow from operating activities at -¥25,642.2 million[47]. - The company achieved a total revenue of CNY 1,245,544 million in 2014, representing a 15% increase compared to the previous year[77]. - The net profit attributable to shareholders was CNY 33,184 million, reflecting a growth of 34.2% year-on-year[77]. Dividend Distribution - The company plans to distribute a cash dividend of 1.4 RMB per 10 shares, totaling approximately 82.53 million RMB, based on a share capital of 589,476,716 shares as of December 31, 2014[2]. - The profit distribution plan for 2014 includes a cash dividend of 1.4 RMB per 10 shares, totaling 82.53 million RMB[89]. Subsidiaries and Mergers - The company established a wholly-owned subsidiary, Harbin Hafei Aviation Industry Co., Ltd., during the reporting period[4]. - The subsidiary Jiangxi Changhe Aviation Industry Co., Ltd. absorbed and merged with its subsidiary Jingdezhen Changfei Aviation Parts Co., Ltd.[4]. - The company established a wholly-owned subsidiary, Harbin Hafei Aviation Industry Co., Ltd., during the reporting period[61]. - The subsidiary Jiangxi Changhe Aviation Industry Co., Ltd. absorbed and merged with its subsidiary Jingdezhen Changfei Aviation Parts Co., Ltd.[95]. Research and Development - Research and development expenses rose by 51.43% to RMB 264,817,232.69 from RMB 174,882,614.98 in the previous year[33]. - Total R&D expenditure amounted to ¥264,817,232.69, representing 4.28% of net assets and 2.13% of operating income, with a year-on-year increase of 51.43%[45][46]. - The company is focusing on enhancing its product competitiveness through technological advancements and extensive collaboration[74]. - The company is investing in new technologies and materials to keep pace with international standards in helicopter manufacturing[85]. Financial Position - The total assets at the end of 2014 were RMB 20,386,153,860.34, a decrease of 1.66% from RMB 20,730,110,890.27 in 2013[23]. - The company reported a total current assets of CNY 16,646,131,822.69 as of December 31, 2014, a decrease of 1.99% from CNY 16,983,522,135.06 at the beginning of the year[196]. - Cash and cash equivalents decreased to CNY 3,260,800,087.97 from CNY 4,106,387,455.65, representing a decline of 20.5%[196]. - Accounts receivable increased to CNY 1,428,400,253.11, up 15.2% from CNY 1,239,948,071.62[196]. - Inventory rose to CNY 11,249,092,367.67, an increase of 4.46% compared to CNY 10,767,291,526.02[196]. - The company’s total non-current assets amounted to CNY 3,740,022,037.65, slightly down from CNY 3,746,588,755.21[196]. Audit and Compliance - The company received a standard unqualified audit report from Zhonghuan Haihua Accounting Firm[5]. - The company engaged Zhonghuan Haihua Accounting Firm for its annual audit with a fee of CNY 900,000[104]. - The internal control audit was also conducted by Zhonghuan Haihua Accounting Firm with a fee of CNY 300,000[104]. - The company maintained effective internal control over financial reporting as of December 31, 2014, according to the audit report[186]. - The company’s internal control evaluation report was completed and disclosed, confirming compliance with relevant regulations[185]. - The audit opinion confirmed that the financial statements fairly reflect the company's financial position and results of operations for the year ended December 31, 2014[194]. Corporate Governance - The company has established a robust corporate governance structure in compliance with relevant laws and regulations, ensuring clear responsibilities among its governing bodies[163]. - The board of directors consists of nine members, including three independent directors, ensuring independent judgment on significant matters[166]. - The company has implemented strict insider information management to prevent insider trading and ensure compliance with regulations[168]. - The company maintains fair treatment of stakeholders, respecting the rights of creditors, employees, suppliers, and customers[169]. - The company received national Level 2 confidentiality qualification certification in 2010[173]. - All proposals at the shareholder meetings were approved, ensuring compliance with the Company Law and Articles of Association[176]. Risks and Challenges - The company faces risks related to macroeconomic fluctuations, which could adversely affect domestic and international demand for its products[81]. - The company is exposed to policy risks that may impact the production and sales of its main products in the helicopter industry[82]. - The company is at risk of material shortages and price fluctuations, which could affect timely and quality delivery of products[84]. Employee Composition and Remuneration - The total number of employees in the parent company is 12, with 12,818 in major subsidiaries, resulting in a total of 12,290 employees[156]. - The professional composition includes 7,923 production personnel, 164 sales personnel, 785 technical personnel, 113 financial personnel, and 3,305 administrative personnel[156]. - The total remuneration paid to directors and supervisors during the reporting period amounted to 397.19 million CNY (before tax)[144]. - The remuneration for senior management is determined based on the company's overall compensation policy, wage standards, and individual performance[152]. Strategic Focus - The company plans to expand its market presence by focusing on the AC series civil helicopters and enhancing international cooperation[36]. - The company aims to transition from a single "manufacturer" to a comprehensive "service provider" by extending its service offerings across the aviation industry[75]. - The company plans to optimize existing models and develop new cooperative models to expand market reach in the helicopter sector[75].