Successfully Turned Loss Into Profit Through Disposal of Automobile Business Which Suffered a Loss and Enhancing the Aviation Business
HONG KONG, April 12 /PRNewswire-Asia/ --
Year Ended December 31 (RMB '000) 2008 2009
Attributable to equity holders of the Company (1,062,684) 160,946
Profit for the year from continuing operations 279,719 337,479
Profit / (loss) for the year from
discontinued operations (1,103,350) 371,657
Profit / (loss) for the year (823,631) 709,136
AviChina Industry & Technology Company Limited ("AviChina" or the "Company", HKE: 2357) today elaborates on the recently announced annual results for the year ended 31 December 2009.
There were still certain impacts arising from the financial crisis on the Chinese economy and Chinese aviation industry in 2009, but the Group had enhanced its marketing efforts and overcome the above difficulties. For the year ended 31 December 2009, the company and its subsidiaries (collectively the "Group") to achieve RMB5,098 million, an increase of 2.39% in the turnover of its continuing operations (aviation business) as compared with that of last year. This is mainly attributable to the improvement of the profitability of the Group and the positive contribution from the turnover of the entire aircraft segment. Net profit attributable to the equity holders of the comprehensive business of the Company for 2009 amounted to RMB161 million, representing an increase of RMB1,224 million as compared with the loss of RMB1,063 million in 2008. Turnover of the comprehensive business (including continuing operations and discontinued operations) amounted to RMB16,057 million, representing a decrease of 4.24% as compared with RMB16,768 million in 2008. This is mainly because the consolidated financial statements of the Group only include the results of Changhe Auto and Harbin Automobile Group up to when their automobile business was distributed to Aviation Industry Corporation of China (principle shareholder of AviChina).
The Board recommended no distribution of final dividend for the year ended 31 December 2009 (2008: Nil).
During the year of 2009, following the development strategy of creating the Group as a flagship manufacturer in China's aviation industry for civil aviation products with a complete value chain and a global acquisition and merger platform for Aviation Industry Corporation of China, the Group conducted a series of business reorganizations including the reorganization of Changhe Auto, disposal of the automobile business of Harbin Automobile Group, and launching of the equity swap of Dongan Motor and JONHON Optronic, resulting in changes to the business of the Group. Aviation segment business has become the continuing operations of the Group and automobile segment business has been classified as the discontinued operations of the Group.
Future outlook
The macro-policy of the PRC government had created a favorable environment for the industry. The driving effect of civil aviation industry on the other industries shows that the industry strategically takes the priority of this round of industry structural change and industry upgrading. The relaxation of market entry of regional aviation development, new changes occurring in the helicopter market and the launching of the big aircraft project all marked the unprecedented development opportunities to the aviation industry, which will stimulate the demand of the domestic aviation market and bring great force to the development of the PRC aviation industry.
In 2010, the Group will grasp the opportunities and pursue the development strategies by adopting the following plans:
1. Continue to speed up the assets reorganization and purchase of aviation
business to improve the profitability of the Group.
2. Make improvements in control systems, and strengthen management
oversight in order to increase efficiencies.
3. Ensure the sustainability of the order of aviation products, extend the
subcontracting project and enhance the profit management.
4. Expand the capital strength and market value scale through the
international capital market operations, further consolidate the market
leading position of the Company in helicopter, trainer, regional jet
and general-purpose aircraft in order to become a flagship manufacturer
in China's aviation industry for civil aviation products with a
complete value chain and a global acquisition and merger platform.
About AviChina
AviChina was established in Beijing, the PRC on 30 April 2003 with a registered capital of RMB4.6 billion. AviChina has been listed on the main board of the Stock Exchange of Hong Kong Limited since 30 October 2003. Its principle shareholders include Aviation Industry Corporation of China ("AVIC"), European Aeronautic Defence and Space Company ("EADS"), China Hua Rong Asset Management Corporation, China Cinda Asset Management Corporation and China Orient Asset Management Corporation. As at 31 December 2008, AviChina had total assets of RMB22.4 billion, share capital of RMB4.643 billion and issued H shares 1.679 billion. EADS is a strategic partner of AviChina and holds 5% equity interests in AviChina.
