AviChina Industry & Technology Company Limited (AviChina) announced 2017 annual results on March 16, 2018. AviChina recorded a net profit of RMB 1.222 billion, breaking through the RMB 1.2 billion mark for the first time. The gross profit margin of the business reached 22.84%.
The senior management went to Hong Kong to hold the performance promotion activities after announcing the results. The main idea of the activities is: the aviation manufacturing industry has ushered in new era; the accelerated implementation of the national strategy, “military-civilian integration” ,has created a broad space for the development of military-civilian integration enterprises; The national strategy, “One Belt, One Road”,has created a favorable opportunity for AVIC to create an “airborne road”; the goal of strengthening the military country will accelerate the defense industry development; the government pays attention to the construction of the state-owned enterprise listing platform the promotion of the H-share circulation, adding the valuation of listed companies in state-owned enterprises.
The management also explained to investors the development vision of AVIC: building a new era aviation power basically by 2035, building a new era aviation power fully by the middle of this century. The development strategy was also explained in detail: AviChina, as a flagship in business development, a flagship for overseas M&A,a flagship of equity operation, would make full use of the AVIC, military-civilian integration fund management company, the Hong Kong company the Shanghai company, striving to upgrade the business model profit sources, create aviation strong stock for AVIC become the most valuable listed company of AVIC.
The development plan of AviChina has been approved by investors, receiving wide support enthusiastic response. The stock price continues to rise. As at 28 March, the closing price was HK$5.54, which once surged to HK$5.76, an increase of 53.46% from the lowest point of 2018.