AVICHM(SH:600765)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was CNY 5,984,908,825.86, representing a 9.94% increase compared to CNY 5,444,030,711.24 in 2018[16] - The net profit attributable to shareholders for 2019 was CNY 275,255,465.74, a decrease of 17.38% from CNY 333,144,996.67 in 2018[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 256,785,998.19, showing a significant increase of 1,852.70% compared to CNY 13,150,276.83 in 2018[16] - The net cash flow from operating activities for 2019 was CNY 783,441,157.08, which is a 103.58% increase from CNY 384,840,658.59 in 2018[16] - The total assets at the end of 2019 were CNY 14,380,016,683.94, reflecting a 19.14% increase from CNY 12,069,953,807.08 at the end of 2018[17] - The net assets attributable to shareholders at the end of 2019 were CNY 6,129,042,085.83, an increase of 44.21% from CNY 4,250,204,245.63 at the end of 2018[17] - The total profit for the period was RMB 407.968 million, representing a growth of 38.63% year-on-year[37] - The main business income increased by 10.58% to RMB 5.837 billion, with the forging business growing by 11.54%[41] - The total operating revenue for the reporting period reached RMB 5.984 billion, reflecting a 9.94% increase compared to the previous year[38] Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.45 per 10 shares, totaling CNY 42,012,172.80, based on a total share capital of 933,603,840 shares[4] - The cash dividend distribution for 2019 represents 35% of the net profit in the parent company’s financial statements, which is below the Shanghai Stock Exchange's guideline of 30%[85] - The company emphasizes cash dividends as a means to return value to investors, adhering to relevant laws and regulations while considering long-term development and maximizing investor returns[86] Business Operations and Market Presence - The company operates in various sectors including forging and hydraulic ring control, serving industries such as aerospace, power, and automotive[25] - The forging and casting business achieved revenue of 4.378 billion yuan, a year-on-year increase of 11.85%[26] - The hydraulic and thermal control business generated revenue of 1.607 billion yuan, growing by 9.69% year-on-year[27] - The company plans to leverage national infrastructure investments and policies like the Belt and Road Initiative to enhance growth opportunities in its forging and hydraulic control sectors[28] - The company has registered product trademarks in 31 countries and regions, indicating a strong international market presence for its hydraulic and thermal control products[27] - The company is focusing on upgrading its hydraulic and thermal control products to compete in the high-end market, which is currently dominated by foreign enterprises[29] Research and Development - Research and development expenses rose to RMB 203.487 million, a 1.3% increase compared to the previous year[39] - The company employed 378 R&D personnel, representing 5.28% of the total workforce[52] - Investment in R&D increased by 25% in 2019, totaling 300 million yuan, focusing on innovative technologies and product development[173] Financial Management and Assets - The company's total net assets at the end of the reporting period were CNY 6.13 billion, an increase of 44.21% year-on-year, mainly due to a non-public issuance of A shares raising CNY 1.30 billion[19] - The company's cash and cash equivalents increased by 150.60%, reaching approximately 2.674 billion yuan, primarily due to net fundraising and increased receivables[30] - The capital reserve rose by 69.45% to approximately 2.849 billion yuan, mainly from the premium of non-publicly issued A-shares[31] - The company's asset-liability ratio decreased to 54.64% by the end of 2019, down 7.15 percentage points from the beginning of the year[151] Corporate Governance and Compliance - The company emphasizes that forward-looking statements in the report do not constitute a substantive commitment to investors, highlighting potential risks[5] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[5] - The company has committed to not using the controlling shareholder's advantages to occupy company funds or engage in actions detrimental to the interests of the company and its shareholders[89] - The company ensures independent operations by maintaining separate assets, personnel, and financial management from its controlling shareholder and related entities[89] - The company has established a framework to ensure independent financial decision-making and management, free from interference by related parties[89] Social Responsibility and Community Engagement - The company is actively participating in poverty alleviation efforts, aligning with national strategies and ensuring completion of assigned tasks[134] - In 2019, the company allocated a total of RMB 173.33 million for poverty alleviation efforts, achieving the goal of helping 1,399 registered impoverished individuals to escape poverty[137] - The company provided RMB 4.12 million in financial aid to 64 impoverished students, alongside an additional RMB 2.3 million to improve educational resources in impoverished areas[138] - In response to the COVID-19 pandemic, the company donated RMB 1 million to support medical teams in Hubei province[140] Future Outlook and Strategic Goals - The company anticipates a stable market space for aviation defense products, with the domestic aviation transport market expected to grow at an annual rate of 8%[72] - The global aviation passenger volume is projected to grow at an annual rate of 4.5%, requiring over 33,000 new aircraft valued at approximately USD 5.2 trillion by 2035[72] - The company aims to achieve a breakthrough in international aviation market outsourcing by 2020[69] - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by 2021[175] - A strategic acquisition of a local competitor is expected to enhance the company's production capacity by 30% in the next fiscal year[174] Related Party Transactions - The company reported a significant related party transaction amounting to ¥1,662,252,136.65, which accounted for 27.77% of similar transaction amounts[117] - The total amount of related party transactions during the reporting period reached ¥4,457,322,790.22[118] - The company has a loan balance with a related party amounting to ¥874,500,000.00, which is 27.66% of similar transactions[118] Shareholder Information - The company completed a non-public offering of 155,600,640 shares, increasing the total share capital to 933,603,840 shares[146] - The company's net asset value per share increased from RMB 6.21 to RMB 6.56 following the share issuance[147] - The top ten shareholders include Guizhou Jinjiang Aviation Hydraulic Co., Ltd. with 24.57% and China Guizhou Aviation Industry Group Co., Ltd. with 6.91%[153] - The company has a total of 55,917 ordinary shareholders as of the end of the reporting period, an increase from 55,641 at the end of the previous month[152] Internal Control and Audit - The company maintained a robust internal control system, completing an internal control self-assessment without identifying any major defects[193] - The company has not faced any penalties from securities regulatory agencies in the past three years[183] - The company has no major errors in accounting that require correction during the reporting period[105]