AVIC I.F(SH:600705)2019-03-14 16:00Financial Performance - The company's operating revenue for 2018 was CNY 7,448,683,746.80, representing a 30.52% increase compared to CNY 5,707,025,888.46 in 2017[14]. - Net profit attributable to shareholders for 2018 was CNY 3,165,964,775.50, a 13.74% increase from CNY 2,783,606,158.67 in 2017[14]. - The net profit after deducting non-recurring gains and losses was CNY 2,802,869,151.41, up 10.78% from CNY 2,530,195,443.18 in 2017[14]. - The company's total assets increased by 28.09% to CNY 300,302,931,118.35 at the end of 2018, compared to CNY 234,446,225,563.12 at the end of 2017[14]. - Basic earnings per share for 2018 was CNY 0.35, a 12.90% increase from CNY 0.31 in 2017[15]. - The weighted average return on equity for 2018 was 12.90%, an increase of 0.57 percentage points from 12.33% in 2017[15]. - The company achieved total operating revenue of 13.87 billion RMB in 2018, an increase of 26.63% compared to 2017[25]. - Net profit attributable to the parent company was 3.17 billion RMB, reflecting a growth of 13.74% year-over-year[25]. Dividends and Profit Distribution - The company plans to distribute dividends from its subsidiaries to the parent company in the first half of 2019, with a proposed dividend amount not less than 10% of the net profit attributable to shareholders for 2018[4]. - The company did not distribute cash dividends for 2018, planning to review the dividend proposal in mid-2019, with an amount not less than 10% of the net profit attributable to shareholders for 2018[84]. - The cash dividend amount for 2018 was RMB 350,076,704.87, with no stock dividends or capital increases proposed[84]. - The company plans to distribute profits from 2018 to the parent company after the subsidiaries' profit allocation in the first half of 2019[84]. Risk Management - The company has detailed the risks it faces in the annual report, urging investors to pay attention to these risks[5]. - The company emphasizes the importance of capital channel advantages and financing capabilities to support sustainable development[23]. - The company is focused on enhancing risk management and compliance, ensuring no major risk events occurred during the year[25]. - The company has established a comprehensive risk management system with a three-line defense mechanism to ensure no major risks occur[47]. - The company has implemented a full audit coverage strategy to enhance its risk management framework[79]. - The company acknowledges potential financial risks due to limited financing channels and market volatility affecting its operations[81]. - The company has committed to comprehensive risk management, focusing on liquidity risk and internal control measures[79]. Corporate Governance - The company has committed to maintaining independence in operations, assets, personnel, finance, and institutions from its controlling shareholder, ensuring no conflicts of interest arise[89]. - The company has established a remuneration and assessment committee responsible for evaluating the performance and compensation of directors and senior management, ensuring alignment with overall company performance and market conditions[157]. - The company has strengthened employee management and compliance training to mitigate operational risks[39]. - The governance structure has been continuously improved in accordance with relevant laws and regulations, ensuring compliance and operational efficiency[150]. Legal Matters - The company is currently involved in a legal dispute regarding a rental contract with Zhangjiagang Tian Shili Packaging Products Co., Ltd., with a claim amount of approximately 27.32 million RMB[95]. - The company has faced a court ruling in favor of its leasing subsidiary, but the case is still under appeal, which may impact the company's profits[95]. - The company has taken legal action to recover funds frozen by the court, amounting to 30 million RMB, with a partial recovery of approximately 24.92 million RMB[95]. - There are no significant litigation or arbitration matters reported for the year[94]. Strategic Initiatives - The company aims to enhance its core competitiveness by implementing a "Financial+" strategy, focusing on financial services, talent, innovation, and capabilities[23]. - The company plans to enhance resource collaboration and leverage its comprehensive financial advantages to support real economy sectors[79]. - The company has established a military-civilian integration research center to strengthen its investment capabilities in this area[79]. - The company aims to provide comprehensive financial services to support economic development in impoverished areas[110]. Subsidiaries and Business Operations - The company operates through subsidiaries including AVIC Leasing, AVIC Trust, AVIC Securities, AVIC Finance, AVIC Futures, and others, focusing on various financial services such as leasing, trust, securities, finance, futures, and industrial investment[21]. - AVIC Trust covers a wide range of investment areas including green energy, high-end manufacturing, and infrastructure, providing comprehensive wealth management services[21]. - AVIC Leasing is recognized as the only central enterprise-backed leasing company in China, emphasizing its unique position in the market[21]. - The company has established a leading industrial research investment capability, focusing on strategic sectors such as state-owned enterprise reform and military-civilian integration[23]. Financial Instruments and Debt Management - The company has issued bonds with a total balance of 35 billion RMB, with interest rates ranging from 4.25% to 5.5%[159]. - The company has maintained a stable AAA rating for its bonds, indicating a very strong ability to repay debts and low default risk[167]. - The issuer has established a comprehensive guarantee system for bond repayment, including a dedicated repayment working group and special accounts for raised funds[175]. - The company reported a significant increase in long-term receivables by 54.86% to CNY 83.80 billion, attributed to the expansion of leasing business[53]. Employee and Management - The total number of employees in the parent company was 61, while the number of employees in major subsidiaries was 4,556, totaling 4,617 employees[146]. - The company has implemented a performance-oriented compensation policy for mid-to-senior management, linking pay to performance[147]. - The total pre-tax remuneration for directors and senior management during the reporting period amounted to 610.12 million yuan[137]. Community Engagement and Social Responsibility - The company is actively implementing a targeted poverty alleviation plan in line with national strategies[110]. - In 2018, the company invested a total of 2.32 million RMB in poverty alleviation efforts, helping 413 registered impoverished individuals to escape poverty[114]. - The company received the "Outstanding Contribution Award" from the China Poverty Alleviation Foundation for its efforts in poverty alleviation in 2018[116]. - The company aims to continue innovating in the "industry + finance" poverty alleviation model to provide comprehensive financial services for economic development in impoverished areas[111].