AVICOPTER(SH:600038)2019-03-20 16:00Financial Performance - In 2018, the company's operating income reached RMB 13,065,513,622.05, an increase of 8.44% compared to RMB 12,048,108,835.61 in 2017[22]. - The net profit attributable to shareholders was RMB 510,330,636.48, reflecting a growth of 12.07% from RMB 455,376,417.90 in the previous year[22]. - The basic earnings per share (EPS) for 2018 was RMB 0.8657, up 12.06% from RMB 0.7725 in 2017[22]. - The net cash flow from operating activities significantly increased by 55.59% to RMB 954,662,237.23, compared to RMB 613,590,822.18 in 2017[22]. - The total assets of the company at the end of 2018 were RMB 24,035,124,460.30, a 6.82% increase from RMB 22,501,369,874.02 in 2017[22]. - The company's net assets attributable to shareholders rose to RMB 7,717,758,780.35, marking a 6.91% increase from RMB 7,219,093,938.53 in the previous year[22]. - The weighted average return on equity (ROE) was 6.83%, an increase of 0.34 percentage points from 6.49% in 2017[22]. - The company achieved a total operating revenue of CNY 13,065,513,622.05 in 2018, representing an increase of 8.44% compared to CNY 12,048,108,835.61 in the previous year[40]. - The net profit attributable to shareholders of the listed company was CNY 51,033.06 million, reflecting a year-on-year growth of 12.07%[39]. - The operating cash flow for the year was CNY 954,662,237.23, which is a significant increase of 55.59% from CNY 613,590,822.18 in the previous year[40]. - The gross profit margin for the year was impacted by an increase in operating costs, which rose by 10.25% to CNY 11,245,246,421.18 compared to CNY 10,199,379,813.38 in the previous year[40]. - The company reported a total of 2,485 R&D personnel, accounting for 20.59% of the total workforce[50]. - The total operating expenses for the year were ¥130,299,260, an increase of 3.53% year-on-year, driven mainly by increased marketing expenses[46]. Cash Flow and Dividends - The company plans to distribute a cash dividend of RMB 2.60 per 10 shares, totaling RMB 153,263,946.16[5]. - In 2018, the cash dividend represented 30.03% of the net profit attributable to ordinary shareholders, which was 510,330,636.48 RMB[80]. - The net cash flow from operating activities was RMB 954,662,237.23, a significant increase from RMB 613,590,822.18 in the previous year[191]. - The total cash and cash equivalents at the end of 2018 amounted to 2,921,801,341.20 RMB, an increase from 2,213,569,106.74 RMB at the end of 2017[192]. - The company paid out 137,348,072.60 RMB in dividends and interest to shareholders during the year[194]. Research and Development - The company's research and development expenses decreased by 25.14% to CNY 306,162,603.85, down from CNY 408,958,951.59 in the previous year[40]. - The R&D department is prioritizing innovative solutions to improve operational efficiency and product offerings[135]. - The company is focusing on cultivating a skilled workforce in aviation emergency rescue to strengthen its operational capabilities in this area[72]. Market Expansion and Strategy - The company actively engaged in international market expansion, promoting the Y12 and AC312 models in Africa and visiting users in Nepal as part of the "Belt and Road" initiative[33]. - The company is positioned to benefit from the growing demand in the general aviation market, driven by government policies and investment opportunities[58]. - The company aims to strengthen its helicopter industry through five key strategies: focusing on core business development, promoting independent innovation, adjusting structure, deepening reform, and expanding cooperation[69]. - A strategic emphasis on market expansion in both domestic and international sectors was discussed, aiming for a 20% growth in market presence[139]. Financial Position and Liabilities - The total liabilities reached ¥16,017,346,092.15 in 2018, up from ¥14,982,270,017.60 in 2017, indicating an increase of around 6.9%[180]. - The company's long-term investments decreased by 65.51% to ¥24,589,901.49 compared to the previous year[54]. - The company's financial liabilities include a significant amount due to employee compensation and tax obligations, reflecting operational commitments[56]. Governance and Compliance - The company has maintained compliance with commitments made regarding related party transactions and competition resolution, ensuring no violations occurred during the reporting period[82]. - The company has not faced any major litigation or arbitration matters during the reporting period, indicating a stable legal standing[86]. - The company engaged Xinyong Zhonghe Accounting Firm for auditing services, with a fee of 540,000 RMB for the audit period[84]. - The internal control system was evaluated as effective, with no significant deficiencies identified in financial reporting as of December 31, 2018[161]. Environmental Responsibility - The company has not experienced any environmental pollution incidents or received administrative penalties during the reporting period[103]. - All wastewater and air pollution control facilities are operating normally, with all pollutants meeting discharge standards[106]. - The company has established an environmental risk prevention and early warning mechanism, enhancing its ability to manage environmental incidents[108]. Employee and Management Structure - The total number of employees in the parent company is 44, while the total number of employees in major subsidiaries is 12,023, resulting in a total of 12,067 employees[146]. - The professional composition includes 8,083 production personnel, 162 sales personnel, 1,822 technical personnel, 99 financial personnel, and 1,901 administrative personnel[146]. - The company strictly adheres to the Labor Contract Law and has established a salary management system based on position and performance[147]. Future Outlook - The company plans to enhance its operational efficiency by focusing on design, assembly, and service support, ensuring the completion of annual research and production tasks[70]. - The management indicated a commitment to sustainability initiatives, targeting a 30% reduction in carbon emissions by 2025[136]. - Financial guidance for the next fiscal year projects a revenue increase of 15% based on current market trends and demand forecasts[137].