AviChina Industry & Technology : Annual Report of 2022

中 國 航 空 科 技 工 業 股 份 有 限 公 司	2003-2023
(A joint stock limited company incorporated in the People's Republic of China with limited liability)	A N N I V E R S A R Y

(Stock Code : 2357)

2022

Annual Report

Contents

2 Company Profile

4 Financial Highlights

7 Chairman's Statement

11 Management Discussion and Analysis

1. Directors, Supervisors and Senior Management

1. Report of the Board

1. Report of the Supervisory Committee

1. Corporate Governance Report

1. Environmental, Social & Governance Report

1. Independent Auditor's Report

1. Consolidated Balance Sheet

1. Balance Sheet of the Company

1. Consolidated Income Statement

1. Income Statement of the Company

1. Consolidated Cash Flow Statement

1. Cash Flow Statement of the Company

1. Consolidated Statement of Changes in Shareholders' Equity

1. Statement of Changes in Shareholders' Equity of the Company

1. Notes to the Financial Statements

1. Definitions

1. Corporate Information

Company Profile

The Company is a joint stock limited company established in the PRC on 30 April 2003. The Company's H Shares have been listed on the Hong Kong Stock Exchange since 30 October 2003 (stock code: 2357). As at the date of this report, the shareholders of the Company mainly include AVIC, Airbus and Tianjin Free Trade Zone Investment.

The Company principally operates through its subsidiaries. The Group is mainly engaged in:

• the development, manufacture, sales and upgrade of civil aviation products and defense products such as provision of helicopters, trainer aircraft, general-purpose aircraft and regional jets for domestic and overseas customers; and
• the co-development and manufacture of aviation products with foreign aviation products manufacturers.

2 AviChina Industry & Technology Company Limited

Company Profile

PRINCIPAL PRODUCTS OF THE GROUP

Helicopter: Z-series and AC series;

Trainer: L15, K8 and CJ-6(PT-6) trainers series;

General-purpose aircraft: Y-12multi-purpose aeroplanes series and the N-5 agricultural aeroplanes series;

Aviation ancillary system: avionics products, connectors, and its accessories; and

Aviation engineering services: planning, design and consultation services, etc.

CORPORATE STRUCTURE OF THE GROUP

AviChina

JONHON

AVIC

Hongdu

Optronic

Avionics

Aviation

(SZ002179)

(SH600372)

(SH600316)

AVICOPTER

(SH600038)

AVIC

Tianjin

AVIC CAPDI

AviChina

AviChina

Helicopter

Aviation

Hong Kong

Capital

Harbin

Changhe

Jingdezhen

Helicopter R&D

Aircraft

Aircraft

Branch

Taixing Aivation Optoelectronic

AVIC Optoelectronics Precision

Xiangtong Photoelectric

AVIC Forstar (835640)

Shenyang Xinghua

Qianshan Avionics

Shaanxi Huayan

Taiyuan Instrument

Shanghai Aviation Electric

Lanzhou Aviation Electric

AVIC Kaitian

AVIC Lanfei

Oriental Instrument

Keeven Instrument

Changfeng Avionics

Hafei Aviation

Changhe Aviation

Huiyang Company

2022 Annual Report

3

Financial Highlights

CONSOLIDATED PROFIT AND LOSS

(Prepared under China Accounting Standards for Business Enterprises) (RMB million, other than basic and diluted earnings per share)

	For the year ended 31 December
	2022	2021	Changes
Revenue	63,639	60,296	5.54%
Profit before tax	5,248	5,315	-1.26%
Net profit attributable to the owners of the parent
company	2,216	2,369	-6.46%
Gross profit margin	22.60%	21.06%	1.54
			percentage points
Earnings per share (RMB)
- Basic	0.287	0.307	-6.51%
- Diluted	0.287	0.307	-6.51%

CONSOLIDATED ASSETS AND LIABILITIES

(Prepared under China Accounting Standards for Business Enterprises) (RMB million)

		As at 31 December
	2022	2021	Changes
Total assets	144,006	133,889	7.56%
Total liabilities	85,853	79,123	8.51%
Minority equity	30,029	27,859	7.79%
Shareholders' equity attributable to parent company	28,124	26,907	4.52%

4 AviChina Industry & Technology Company Limited