AviChina Industry & Technology : Annual Report of 2021

ʕ਷ঘ٤߅Ҧʈٰุ΅Ϟࠢʮ̡

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code : 2357)

Contents

2	Company Profile
4	Financial Highlights
7	Chairman's Statement
9	Management Discussion and Analysis
22	Directors, Supervisors and Senior Management
29	Report of the Board
52	Report of the Supervisory Committee
54	Corporate Governance Report
76	Environmental, Social & Governance Report
125	Auditor's Report
131	Consolidated Balance Sheet
135	Balance Sheet of the Company
137	Consolidated Income Statement
140	Income Statement of the Company
142	Consolidated Cash Flow Statement
144	Cash Flow Statement of the Company
146	Consolidated Statement of Changes in Shareholders' Equity
148	Statement of Changes in Shareholders' Equity of the Company
150	Notes to the Financial Statements
338	Supplementary Information on Financial Statements
341	Definitions
346	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 defense products and civil aviation 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.

Company Profile

PRINCIPAL PRODUCTS OF THE GROUP

Helicopter: Z-series, AC series and EC-120 helicopters jointly produced by the Group and Airbus;

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

General-purpose aircraft: Y-12 multi-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

TaixingAivation Optoelectronic

AVICOptoelectronics

Precision

Xiangtong Photoelectric

AVICForstar

(835640)

ShenyangXinghua

QianshanAvionics

ShaanxiHuayan

TaiyuanInstrument

ShanghaiAviation

Electric

LanzhouAviation

Electrical

AVIC Kaitian

AVICLanfei

Oriental Instrument

Keeven Instrument

Changfeng Avionics

HafeiAviation

ChangheAviation

HuiyangCompany

2021 Annual Report

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

2021

2020 (restated)ChangesRevenue

Profit before tax

Net profit attributable to the owners of the parent company

Gross profit margin Earnings per share (RMB)

- Basic - Diluted

CONSOLIDATED ASSETS AND LIABILITIES

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

60,296 5,315

2,369 21.06%

0.307 0.307

2021

50,930 18.39%

4,268 24.53%

1,933 22.56%

20.49% 0.57%

0.250 22.80%

0.250 22.80%

As at 31 December

2020 (restated)ChangesTotal assets Total liabilities Minority equity

Shareholders' equity attributable to parent company

133,889 79,123 27,859 26,907

115,649 15.77%

69,499 13.85%

23,173 20.22%

22,977 17.10%