HONG KONG, Aug. 28 2012 /PRNewswire-Asia/ -- AviChina Industry & Technology Company Limited ("AviChina" or the "Company", HKEx stock code: 2357; together with its subsidiaries, the "Group") today announced its unaudited operating results for the six months ended 30 June 2012 (the "Period") prepared according to International Financial Reporting Standards.
In the first half of 2012, the Company recorded revenue of RMB7,311 million, representing an increase of 22.46% over the corresponding period in 2011. The increase was mainly attributable to the rapid increase in the helicopter business, which saw revenue jump to RMB3,619 million, an increase of RMB1,112 million, or 44.36%, as compared with the corresponding period in 2011. The net profit attributable to equity holders of the Company was RMB313 million, representing an increase of 13.82% over the corresponding period in 2011.
In the first half of 2012, the Company continued to push forward the reorganization of its assets in accordance with the strategy set by the Board of Directors. The acquisition of Tianjin Aviation Mechanical and Electrical Co., Ltd. was completed and its operating results have been consolidated into the Company's financial results for the period, which brought new profit contribution to the Company. The acquisition brought new aviation mechanical and electrical business to the Company, and has enhanced the Company's capabilities in manufacturing aviation products and aviation accessory products , making the Company's aviation business more complete. Moreover, Hafei Aviation Industry Co., Ltd. launched a reorganization of its helicopter business and has plans to acquire new helicopter business assets from the parent company of AviChina.
The assembling and manufacturing project for Legacy 600/650 Executive Jets by Harbin Embraer Aircraft Industry Co., Ltd., an associated company of the Group, received approval from China government. In the meantime, Harbin Embraer and ICBC Financial Leasing Co., Ltd. signed a sales agreement in Rio de janeiro for 10 large Legacy 650 executive jets, which includes confirmed orders for five jets and intended orders for five jets. The first executive jet is expected to be delivered by the end of 2013.
Hafei Aviation, a subsidiary under the Company, signed a subcontracting agreement with Boeing Australia with regard to the Boeing 737 aileron adjustment sheet project, the third project between Hafei Aviation and Boeing and proof of the high recognition of AviChina by its partners in international cooperation.
JONHON Optronic, a subsidiary of the Company and a supporting unit of the Shenzhou spacecraft series, provided vital components to the Shenzhen-9 spaceship such as high quality connectors which offered effective assurance for the successful launch of the Shenzhou-9 and its successful docking with the Tiangong-1 space laboratory.
The Y-12F general-purpose aircraft successfully completed its icing wind tunnel test. As the first icing wind tunnel test on a Chinese general-purpose aircraft, its successful completion is a milestone of great significance for general-purpose aviation and general-purpose aircraft design in China. In May 2012, the Y-12F also completed all risk adjustments for trial flights, thus paving the way for airworthy tests.
In the face of new situations and challenges and through the development of strategic industries and improvements in both quality and efficiency, Aviation Industry Corporation of China, the Company's controlling shareholder, was listed on the Fortune Global 500 for the fourth consecutive year, achieving an improved ranking. Meanwhile, it was named one of China's 500 Most Valuable Brands for the first time.
In the first half of 2012, the State Council of China promulgated the "12th Five-year Plan" National Strategic Emerging Industry Development Plan, and the Ministry of Industry and Information Technology issued the Development Plan for the High-end Equipment Manufacturing Industry in the "12th Five-year Plan" period, which serve to further confirm the high-end equipment manufacturing industry, including the aviation equipment, as the key direction for development and a main task during the "12th Five-year Plan" period. They also serve to provide favorable policy support for the development of China's aviation industry, which will benefit AviChina. In addition, the State will further implement the plans on new aviation emergency rescue systems and a comprehensive transportation system in the next five years, which will also promote the further development of AviChina's aviation business.
