AVIC Jianghang(SH:688586)2021-03-14 16:00Financial Performance - The company reported a profit available for distribution to shareholders of RMB 243,929,687.97 as of December 31, 2020[7]. - A cash dividend of RMB 1.5 per 10 shares (including tax) is proposed, totaling RMB 60,561,670.05, which represents 31.24% of the net profit attributable to shareholders[7]. - The total share capital of the company as of December 31, 2020, was 403,744,467 shares[7]. - The company achieved operating revenue of CNY 830,973,482.68 in 2020, representing a year-on-year increase of 23.20%[29]. - Net profit attributable to shareholders reached CNY 193,879,973.01, a significant increase of 71.31% compared to the previous year[29]. - The net cash flow from operating activities increased by 137.91% to CNY 213,081,572.61, primarily due to improved sales collection[29]. - Total assets at the end of 2020 amounted to CNY 2,987,055,769.46, reflecting a growth of 66.25% year-on-year, largely due to funds raised from the IPO[29]. - The net assets attributable to shareholders increased by 139.96% to CNY 1,930,116,195.28, driven by the IPO and continuous profit growth[29]. - Basic earnings per share rose by 51.35% to CNY 0.56, attributed to the increase in net profit[29]. Audit and Compliance - The company has received a standard unqualified audit opinion from Zhongshen Zhonghuan Accounting Firm[6]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[9]. - There are no violations of decision-making procedures regarding external guarantees[11]. - The company has no special arrangements for corporate governance[8]. Market Position and Strategy - The company’s stock is listed on the Sci-Tech Innovation Board under the stock code 688586[22]. - The company primarily engages in the aerospace equipment and special refrigeration sectors, providing products such as aviation oxygen systems and military refrigeration equipment[40]. - The company aims to expand its market presence by leveraging its brand reputation and participating in major project tenders to secure new orders[44]. - The company is focused on expanding its market presence in the aviation and special refrigeration sectors, targeting military and civilian applications, with a focus on oxygen equipment and temperature control systems[136]. Research and Development - Research and development expenses accounted for 10.40% of operating revenue, an increase of 4.71 percentage points from the previous year[29]. - The company reported a significant increase in R&D expenses, with a total of ¥86,427,090.94, representing a 125.29% increase compared to the previous year[69]. - The company applied for 121 patents during the reporting period, with 38 patents granted, bringing the total authorized patents to 528[68]. - The company has developed a complete oxygen system for civil aircraft, including aircrew and passenger oxygen systems, and is working on airworthiness certification[9]. - The company is developing a compact and lightweight oxygen system tailored for helicopters, addressing onboard oxygen generation challenges[8]. - The company is advancing research on environmentally friendly refrigerants for military air conditioning systems, ensuring safe operation under various conditions[11]. Risk Factors - The company is subject to risks as outlined in the report, which investors should pay attention to[5]. - The company’s reliance on a concentrated customer base poses risks to operational performance if relationships or demand change[96]. - Future international geopolitical changes could impact defense spending and demand for military products, affecting profitability[97]. Shareholder Commitments - The controlling shareholder AVIC and its controlled enterprise AVIC Capital committed to not transfer or entrust the management of shares held before the IPO for 36 months from the date of the company's stock listing[155]. - Other shareholders (Guoxin Capital, Haolan Eagle Strike, Jiangxi Military Industry, and Zhongbing Hongmu) committed to not transfer shares held before the IPO for 12 months from the date of the company's stock listing and for 60 months from the completion of the capital increase[156]. - Company directors and senior management committed to not transfer shares held before the IPO for 12 months from the date of the company's stock listing, with a two-year lock-up period after the lock-up expires[157]. Technological Advancements - The company has developed an advanced oxygen regulation technology for aircraft, achieving international leading status, with all products reaching the sample design stage and some in batch production[56]. - The airborne molecular sieve oxygen generation technology has been recognized with multiple national awards, including the Special Prize for Scientific and Technological Progress, and is currently in the research and batch production phase[56]. - The company has achieved significant advancements in nitrogen inerting technology, which prevents fuel tank fires and explosions by maintaining low oxygen levels[60]. Future Outlook - The company anticipates significant changes in the military aviation industry due to advancements in quantum science, artificial intelligence, and other cutting-edge technologies, which will revolutionize warfare and aviation equipment[132]. - The civil aviation sector is expected to see improvements in aircraft performance, with a focus on efficiency, safety, and cost-effectiveness over the next 20 years[132]. - The company is positioned to benefit from the "14th Five-Year Plan" period, which is expected to bring multiple industrial turning points and favorable policies for the defense industry[132].