COMPANY

Facing negative impact of Sino-US trade friction financial market fluctuations in the first half of 2018, AviChina has achieved innumerable achievements in performance, market value management product services.

Record growth in both revenue profit

Because of revenue growth gross profit margin improvement, AviChina has recorded growth in both revenue profit for the first time since 2016. For the six months ended 30 June 2018, AviChina recorded a revenue of RMB14,450 million, representing an increase of 3.58% compared with that of RMB13,950 million in the corresponding period of 2017, the profit attributable to equity holders was RMB 598 million, representing an increase of 8.33% compared with that of RMB 552 million in the corresponding period of 2017.

Diversify income sources under new strategy

AviChina optimized the strategy determined to become the most valuable listed company of AVIC, a flagship that focuses on integrating aviation science technology into civil products services from three aspects: business development, overseas M&A, equity operation.

Become the first listed central SOE realizing full-circulation of H shares

AviChina became the first listed central SOE realizing full-circulation of H shares in the first half of 2018, all the 3,609 million domestic shares have been converted into H shares. The full-circulation makes AviChina its shareholders closer and attract more attention from international investors, promoting value enhancement. In addition, AVIC, the parent company, has promised not to reduce its holdings after full-circulation, bought 3.27 million H shares of AviChina on June 20th during the market downturn.

Promote principal businesses development

AviChina, as one of the main founder, will establish manage an AVIC military-civilian integration fund, which dedicates in investment in military-civilian integration; concentrates on high-tech business; initiates an international M&A fund of AVIC, bought shares in AVIC Shenyang Aircraft, showing strong confidence in AVIC core defense business.

Enhance brimage international influence

British BrFinance released " Top 25 most valuable aerospace & defense brands 2018", AviChina ranked the 20th, being the first the only Chinese company on the list. AviChina attended the Farnborough Airshow again with products, promoting a number of cooperation increasing international visibility.

Improve competitiveness of core businesses

1、AviChina speeds up R&D of light helicopter models to enhance high-tech innovation capability.

2、AviChina continues to increase investment in R&D of Aero-Parts receives standout achievements. The charging products made by JONHON Optronic got international award for electric vehicle charging connector; JONHON Optronic equipped control system for the first commercial rocket “Chongqing Liangjiang Star”, reduced over half of the weight by applying innovation technology.

3、AviChina vigorously expands market for helicopters. The helicopter products of AviChina participated in the forest fire suppression in Inner Mongolia Greater Khingan Range completed the water comprehensive rescue rehearsal in Poyang Lake. In addition, air tour project in Jiangxi Wuyuan scenic spot passed the site verification test of Shanghai regulatory ity of CAAC.

4、Aviation engineering service focuses on quality improvement, maintains industry leadership. AVIC Planning awarded “Annual Best Contribution Award for Airport Construction Design” won the bidding for constructing the Xai-Xai airport in Mozambique, a significant breakthrough in implementation of the national “Belt Road” initiative the infrastructure construction for the aerial silk road.

AviChina has achieved overall improvement in performance, market value, brinfluence product service in the first half year of 2018, performing better than market , HSI Shanghai-Shenzhen Aerospace National Defense Segment in unfavorable environment, recommended strongly by domestic foreign financial institutions, especially domestic brokers.