AVIC I.F(SH:600705)2023-03-14 16:00Financial Performance - The net profit attributable to the parent company for 2022 was CNY 1,680,365,562.12, a decrease of 62.42% compared to 2021[6]. - The total operating income for 2022 was CNY 11,245,763,034.73, representing a 6.50% increase from the previous year[22]. - The net cash flow from operating activities decreased by 55.62% to CNY 20,065,850,228.44 in 2022[22]. - The company reported a net profit of CNY 1,184,057,910.58 for the period, after deducting surplus reserves[6]. - In 2022, the company achieved a net profit attributable to shareholders of 168,036.56 million RMB, a decrease of 62.42% year-on-year[23]. - The basic earnings per share for 2022 was 0.19 RMB, down 62.75% compared to 0.51 RMB in 2021[23]. - The weighted average return on equity decreased to 4.02%, down 6.15 percentage points from 10.17% in 2021[23]. - The company reported a significant drop in non-recurring gains, with total non-recurring profit and loss amounting to 13,270.76 million RMB in 2022, compared to 6,149.57 million RMB in 2021[28]. - Total revenue decreased by 4.87% to CNY 18.15 billion compared to the previous year[52]. - Operating income increased by 6.50% to CNY 11.25 billion year-on-year[52]. - Interest income fell by 11.83% to CNY 2.89 billion, while commission income dropped by 23.41% to CNY 4.02 billion[52]. Asset Management - The total assets as of the end of 2022 were CNY 488,585,137,177.23, an increase of 6.93% from the previous year[22]. - The net assets attributable to shareholders decreased by 4.07% to CNY 39,886,516,982.35 at the end of 2022[22]. - The company’s total trading financial assets increased from 4,523,013.85 million RMB at the beginning of the year to 5,467,328.47 million RMB by year-end[29]. - The company’s total assets amounted to 48,000,000 million RMB, with overseas assets accounting for 5,152,137.81 million RMB, representing 10.55% of total assets[98]. - Total trust assets amounted to RMB 63,001,152.40 million, with a year-on-year decrease of 7.01%[68]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.60 per share, totaling CNY 529,841,520.72, which is 31.53% of the net profit attributable to shareholders[6]. - The board has approved a dividend payout of 0.5 yuan per share, reflecting a commitment to returning value to shareholders[142]. - The company reported a cash dividend of 0.60 RMB per 10 shares, totaling 529,841,520.72 RMB, which represents 31.53% of the net profit attributable to ordinary shareholders in the consolidated financial statements[167]. Strategic Initiatives - The company plans to expand its business in alternative investments, asset management, and green trust services[31]. - The company is focusing on supporting strategic emerging industries such as new infrastructure and high-end manufacturing through its financial services[32]. - The company aims to enhance its financial services for the aviation industry, focusing on integrating financial and industrial needs to promote high-quality development during the "14th Five-Year Plan" period[113]. - The company is committed to digital transformation and improving data governance to enhance operational efficiency and service delivery[114]. - The company is committed to expanding its green finance business, including green securities and green trusts, to support national carbon neutrality goals[85]. Risk Management - The company is committed to improving risk management and internal control, embedding risk prevention into major investment and operational processes[34]. - The company emphasizes the importance of a strong regulatory framework to ensure sustainable growth and risk management in its operations[112]. - The company faces significant business risks, including policy, credit, liquidity, and compliance risks across its various financial services[122]. - The company has committed to strengthening its investment management and risk control systems to minimize potential losses from operational errors[127]. Legal and Compliance Issues - The company is currently involved in multiple litigation cases related to financing lease agreements, with claims amounting to approximately ¥286.33 million and ¥240.57 million pending in court[195]. - The company has recognized provisions for potential losses related to these litigations, indicating a proactive approach to financial risk management[195]. - The ongoing legal disputes may affect the company's operational focus and resource allocation in the near term[195]. - The company has taken steps to mitigate risks associated with these legal matters by setting aside appropriate reserves[196]. Organizational Structure and Governance - The company has established independent operational and administrative activities, ensuring no mixed operations with controlling shareholders[136]. - The company has a complete independent tax registration and has been paying taxes independently since its establishment[135]. - The company has established specialized committees within the board, including audit, nomination, compensation, and risk management committees, to enhance governance[152]. - The company has appointed new executives including a general manager and several directors due to work requirements[147]. Research and Development - The company is investing 500 million yuan in R&D for new technologies aimed at enhancing product efficiency[142]. - The company has established a postdoctoral research station to enhance its industry research capabilities, particularly in the military industry and green finance[47]. - The company has implemented a training plan for 2022, focusing on enhancing key capabilities in "service aviation" and "industrial finance," with nearly 300 online courses launched[162]. Market Conditions and Economic Impact - The company’s financial performance was impacted by external factors such as the Federal Reserve's interest rate hikes and international market volatility[23]. - In 2022, China's economic growth rate dropped to 3% due to multiple factors including the Federal Reserve's interest rate hikes and the Russia-Ukraine conflict, impacting the financial sector significantly[111]. - The financial regulatory environment remains cautious, with a focus on risk prevention and resolution, which will influence the company's operational strategies moving forward[112].