AVIC AVIONICS(SH:600372)2019-03-20 16:00Financial Performance - The company's operating revenue for 2018 was approximately CNY 7.64 billion, an increase of 8.8% compared to CNY 7.02 billion in 2017[17]. - The net profit attributable to shareholders for 2018 was approximately CNY 479.33 million, a decrease of 11.6% from CNY 542.44 million in 2017[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 173.59 million, down 53.4% from CNY 372.60 million in 2017[17]. - The basic earnings per share for 2018 were CNY 0.2743, a decrease of 11.1% compared to CNY 0.3084 in 2017[18]. - The weighted average return on net assets for 2018 was 6.62%, a decrease of 1.95 percentage points from 8.57% in 2017[18]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2018, representing a 20% growth compared to the previous year[134]. - The company reported a total revenue of 4,800 million in the first seven months of 2018, with a significant increase compared to previous periods[131]. - The company plans to achieve a revenue target of 8.207 billion RMB and a total profit of 612 million RMB for 2019[58]. Cash Flow and Investments - The net cash flow from operating activities for 2018 was approximately CNY 34.90 million, a significant improvement of 134.5% compared to a negative cash flow of CNY 101.14 million in 2017[17]. - The company reported a net cash flow from operating activities of CNY 597,478,311.97 in Q4 2018, indicating strong cash generation capabilities[20]. - The operating cash flow net amount was 349 million RMB, a significant improvement of 134.5% compared to the previous year[31]. - The total cash inflow from operating activities was approximately ¥6.12 billion, slightly down from ¥6.13 billion in the previous year, indicating a marginal decrease of about 0.2%[199]. - The company incurred financial expenses of approximately ¥83.85 million, a significant increase from ¥16.58 million in the previous year, representing an increase of about 406%[197]. - The total cash outflow from operating activities was approximately ¥6.08 billion, down from ¥6.23 billion, indicating a decrease of about 2.4%[199]. - The company has a bank credit line totaling RMB 5,469 million during the reporting period[175]. Assets and Liabilities - The company's total assets at the end of 2018 were approximately CNY 21.65 billion, reflecting a 2.2% increase from CNY 21.19 billion at the end of 2017[17]. - The net assets attributable to shareholders at the end of 2018 were approximately CNY 7.56 billion, an increase of 6.5% from CNY 7.10 billion at the end of 2017[17]. - Current liabilities increased by 13.9% to CNY 10.95 billion, with accounts payable rising by 22.1% to CNY 5.64 billion[46]. - The company's accounts receivable increased by 16.7% to ¥8,751,540,979.21, compared to ¥7,501,748,487.78 in the previous year[43]. - Total liabilities amounted to ¥13,737,698,851.55, a slight decrease from ¥13,751,205,968.55, showing a reduction of approximately 0.1%[190]. - Non-current liabilities decreased significantly from ¥4,135,720,285.71 to ¥2,786,093,734.06, a reduction of approximately 32.7%[190]. Research and Development - Research and development expenses totaled ¥446,676,532.51, representing 5.84% of operating revenue, with 3,950 R&D personnel, accounting for 28.56% of total employees[41]. - The company has allocated 10,000 million for research and development to drive innovation in new products and technologies[133]. - Research and development investments increased by 30% in 2018, totaling 150 million, focusing on advanced technologies[136]. Market and Competitive Position - The company aims to enhance its core competitiveness in the aviation electronics market by investing in core technologies and promoting technological upgrades[56]. - The company is actively expanding into non-aerospace defense and civilian markets, targeting sectors such as aerospace, weaponry, and shipbuilding[25]. - The company anticipates significant market opportunities in both military and civil aviation sectors due to national strategic support and policy environment improvements[55]. - The company is focusing on high-end equipment projects and high-value-added services to achieve industrial expansion[29]. Shareholder and Governance - The company plans to distribute a cash dividend of CNY 0.50 per 10 shares, totaling approximately CNY 87.96 million for the 2018 fiscal year[5]. - The company has committed to ensuring that it and its subsidiaries will not engage in similar production and operational activities as the company and its subsidiaries in the future[63]. - The company has guaranteed the independence of its operations, assets, finances, personnel, and institutions from its controlling shareholders[65]. - The company has a robust internal control system to maintain governance and protect shareholder rights, with no significant discrepancies from regulatory requirements[153]. Environmental and Social Responsibility - The company has established pollution prevention facilities and maintains their effective operation to comply with environmental regulations[95]. - The company has implemented a targeted poverty alleviation program, focusing on various aspects such as industrial, cultural, and educational support[87]. - The company invested a total of 1.591 million in poverty alleviation funds and 400,000 in material assistance, helping 545 registered impoverished individuals to escape poverty[88]. Risks and Challenges - The company has identified potential risks in its operations, which are detailed in the report's risk section[7]. - The company faces competition risks due to the entry of new competitors as the military-civilian integration strategy deepens[59]. - The company anticipates potential macroeconomic risks that could impact the demand for aviation electronics products[59]. - The company is addressing operational risks related to long supply chains and the need for increased R&D investment[59].