AECC AST(SH:600391)2019-03-25 16:00Financial Performance - In 2018, the company's operating revenue was approximately CNY 2.36 billion, an increase of 4.67% compared to CNY 2.26 billion in 2017[21] - The net profit attributable to shareholders of the listed company was a loss of approximately CNY 303 million, a decrease of 746.47% compared to a profit of CNY 46.87 million in 2017[21] - The net cash flow from operating activities was approximately CNY 74.78 million, a decrease of 50.31% compared to CNY 150.51 million in 2017[21] - The basic earnings per share (EPS) for 2018 was -0.92 CNY, a decrease of 757.14% compared to 0.14 CNY in 2017[22] - The diluted EPS for 2018 was also -0.92 CNY, reflecting the same percentage decrease as the basic EPS[22] - The net profit attributable to shareholders for Q4 2018 was -225,707,560.77 CNY, with a total annual revenue of 2,364,272,887.39 CNY[23] - The weighted average return on equity (ROE) for 2018 was -19.07%, a decrease of 21.80 percentage points from 2.73% in 2017[22] - The total non-recurring losses for 2018 amounted to -141,571,666.76 CNY, significantly impacting the overall financial performance[25] - The company reported a net loss of 314,759,237.56 CNY for the year 2018, compared to a net profit of 37,812,198.62 CNY in the previous year, indicating a significant decline in profitability[182] Assets and Liabilities - As of the end of 2018, the total assets amounted to approximately CNY 5.88 billion, an increase of 1.05% from CNY 5.82 billion at the end of 2017[21] - The net assets attributable to shareholders of the listed company decreased by 17.63% to approximately CNY 1.44 billion from CNY 1.74 billion at the end of 2017[21] - The company's total liabilities increased by 9.96% in accounts payable to CNY 1,544,810,449.54 compared to the previous year[56] - The company's total liabilities rose to ¥4,096,338,228.53 from ¥3,741,328,935.06, marking an increase of approximately 9.5%[175] - The company's short-term borrowings increased to ¥309,647,495.72 from ¥273,569,745.96, representing a growth of about 13.2%[174][175] Cash Flow - The net cash flow from operating activities decreased by 50.31% to CNY 74,782,486.00 compared to the previous year[53] - Cash inflow from operating activities decreased by 6.75% to CNY 2,347,970,732.95 compared to the previous year[53] - Cash outflow from operating activities decreased by 3.98% to CNY 2,273,188,246.95 compared to the previous year[53] - Total cash inflow from financing activities decreased by 12.70% to CNY 1,565,224,176.35 compared to the previous year[53] - Net cash flow from financing activities decreased by 89.32% to CNY 5,028,367.26 compared to the previous year[53] Research and Development - R&D expenses increased by 39.81% to CNY 84.87 million, reflecting a focus on innovation[42] - The total R&D expenditure amounted to ¥84,874,949.21, representing 3.59% of total revenue, with a 39.81% increase compared to the previous year[51] - The company initiated 174 new product trials, with a completion rate of 93.8%, successfully finishing 121 trials[40] - Research and development expenses for 2018 were CNY 84,874,949.21, an increase from CNY 60,706,021.00, reflecting a growth of approximately 39.73%[180] Product and Market Strategy - The company aims to optimize its product structure by focusing on "domestic aviation and derivative products" and "foreign trade products" for synchronized growth[32] - Revenue from domestic aviation and derivative products reached CNY 1.104 billion, growing by 30.96% year-on-year[39] - The company is transitioning its product structure from low-value components to high-value units, enhancing its competitive edge[35] - The company is focusing on optimizing product structure and enhancing technological innovation capabilities[41] - The company plans to achieve foreign trade product revenue of $200 million, equivalent to RMB 1.36 billion, accounting for nearly 42% of the overall operating budget revenue[71] Risks and Challenges - The company has identified various risks that may affect its future development, which are detailed in the report[8] - The company faces product delivery risks due to increasing domestic and foreign trade orders, which may impact future order growth[70] - New product development risks are present as the progress of new product research and development is uncertain, affecting the ability to secure new orders[70] - Liquidity risk remains a concern in 2019 due to increased inventory from expanded production scale and new product investments[70] - Market risks persist due to a continued downturn in the global gas turbine market, potentially leading to order cancellations[71] Corporate Governance - The company has received a standard unqualified audit report from the accounting firm Zhongshen Zhonhui[5] - The company has not reported any instances of funds being occupied or overdue receivables during the reporting period[78] - The company has not received any non-standard audit opinions from its accounting firm[78] - The company has made adjustments to its accounting policies, which were approved in meetings held on October 29, 2018, and March 22, 2019[78][79] Environmental and Social Responsibility - The company invested CNY 4.174 million in environmental governance facilities in 2018, including CNY 1.86 million for upgrading wastewater treatment facilities and CNY 1.8 million for new dust collection systems[106] - The actual emissions of SO2 were 19.76 kg and NOX were 526.98 kg, which comply with national and local emission standards[103] - The company achieved a 100% compliance rate for the disposal of general and hazardous waste, with a total of 344.42 tons of hazardous waste generated and properly managed[105] - The company provided assistance to 25 employees in need, distributing CNY 307,000 in aid, and organized fundraising activities that collected CNY 124,900[100] Leadership and Management Changes - The company appointed Zhongshun Zhonghuan Accounting Firm with an audit fee of 0.4 million RMB for the year[82] - The company appointed new executives, including the deputy secretary of the party committee and the chairman of the labor union in December 2018[134] - The company has seen a significant leadership transition with multiple appointments in key positions since 2011, indicating a focus on strengthening management[134] - The company has undergone significant management changes, including the appointment of Yang Yuwu as chairman and Cong Chunyi as general manager[143] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 47,362, down from 48,184 at the end of the previous month[117] - The largest shareholder, China Aviation Engine Corporation, held 118,907,305 shares, representing 36.02% of total shares[120] - The company allocated 3,781,219.86 to shareholders, which represents a distribution from the profits[200]