AVIC AVIONICS(SH:600372)2020-03-30 16:00Financial Performance - The company's operating revenue for 2019 was CNY 8,352,187,741.64, representing a 9.27% increase compared to CNY 7,643,430,114.13 in 2018[13]. - The net profit attributable to shareholders for 2019 was CNY 556,020,333.42, which is a 16.00% increase from CNY 479,328,638.42 in 2018[13]. - The net profit after deducting non-recurring gains and losses was CNY 228,915,983.75, up 31.87% from CNY 173,594,689.30 in 2018[14]. - The net cash flow from operating activities reached CNY 735,640,968.39, a significant increase from CNY 34,904,108.70 in 2018, marking a 2,007.61% rise[14]. - The total assets at the end of 2019 were CNY 22,696,700,721.78, reflecting a 4.83% increase from CNY 21,651,170,991.04 at the end of 2018[14]. - The net assets attributable to shareholders increased to CNY 7,840,415,802.31, a 3.69% rise from CNY 7,561,647,044.18 in 2018[14]. - Basic earnings per share for 2019 was CNY 0.3160, an increase of 15.20% compared to CNY 0.2743 in 2018[15]. - The weighted average return on equity increased to 7.11% in 2019, up by 0.49 percentage points from 6.62% in 2018[15]. - The company reported a total revenue of 28,800 million at the beginning of the year, which increased to 53,000 million by the end of the reporting period, reflecting a growth of 84.72%[122]. Cash Flow and Investments - The company achieved a significant increase in cash flow from operating activities, with a net cash flow of 735.64 million RMB, up 2,007.61% from the previous year[27]. - The net cash flow from financing activities was ¥775 million, an increase of ¥1.556 billion compared to the previous year[35]. - The company reported a net cash outflow from investing activities of CNY 642,384,161.31, an improvement from a net outflow of CNY 982,558,585.75 in 2018[186]. - Cash and cash equivalents at the end of 2019 totaled CNY 3,344,215,110.92, up from CNY 2,476,945,114.43 at the beginning of the year[186]. - The company’s cash outflow from financing activities was RMB 552,500,512.13, down from RMB 937,424,108.11 in the previous year, indicating improved cash management[188]. Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.60 per 10 shares, totaling CNY 104,946,448.44, which accounts for 18.9% of the net profit attributable to shareholders[3]. - The total cash dividend distribution for 2019, including share repurchase, accounted for 45.97% of the net profit attributable to shareholders[3]. - In 2019, the company distributed cash dividends of 0.60 RMB per 10 shares, totaling approximately 104.95 million RMB, which is 18.87% of the net profit attributable to ordinary shareholders[56]. Research and Development - Research and development expenses rose by 29.86% to 580.06 million RMB, reflecting the company's commitment to innovation[27]. - The number of R&D personnel reached 4,903, making up 36.6% of the total workforce[34]. - Total R&D investment amounted to ¥589,816,470.81, representing 7.1% of operating revenue[34]. - The company is focused on advancing its research and development efforts to meet market demands, which may lead to increased R&D expenses[53]. Market Position and Strategy - The company maintained a strong market position in the aviation electronics sector, being the sole provider for several key systems in domestic aviation platforms[23]. - The company is actively expanding into non-aviation civilian markets, with revenue from this segment reaching 845.25 million RMB, a growth of 10.09%[29]. - The company aims to enhance its competitive advantage in the aviation electronics market through continuous innovation and structural optimization[50]. - The company plans to continue expanding its investment in core technologies for aviation electronic systems, focusing on technological upgrades and innovation[50]. Risks and Compliance - The company has outlined potential risks in its operations, which are detailed in the report[4]. - The company faces competitive risks due to the entry of new competitors and changes in the market landscape, which may complicate the existing market structure[53]. - The company emphasizes the importance of maintaining compliance with legal and regulatory requirements to mitigate legal risks[54]. - The company has identified operational risks related to long product supply chains and potential increases in financial costs due to accounts receivable[53]. Environmental and Social Responsibility - The company has established pollution prevention facilities that are operating effectively, including wastewater treatment and air pollution control systems[88]. - The company has not reported any violations of environmental protection laws during the reporting period[87]. - The company invested a total of 4.071 million RMB in poverty alleviation efforts in 2019, along with 207,000 RMB in material discounts[81]. - The company has actively engaged in social responsibility initiatives, including targeted poverty alleviation and environmental protection efforts[86]. Corporate Governance - The company has a governance structure that complies with relevant laws and regulations, ensuring the protection of shareholder rights[137]. - The board consists of 11 members, including 4 independent directors, meeting regulatory requirements[138]. - The company has implemented a performance evaluation and incentive mechanism to enhance effectiveness and motivation[138]. - The management team is composed of individuals with significant experience in finance, engineering, and academia, contributing to the company's strategic direction[127].